Document:

Intercompany Agreement, dated 01/01/2006, with Masimo Europe Limited

 EXHIBIT 10.29 
 INTERCOMPANY AGREEMENT 
 THIS INTERCOMPANY AGREEMENT (this “Agreement”) is
made as of this 1st day of January, 2006, by Masimo Corporation, a Delaware corporation (“Masimo”) and Masimo Europe Limited, a corporation under the laws of the United Kingdom (“Subsidiary”). 
 RECITALS 
 WHEREAS, Subsidiary
is a wholly-owned subsidiary of Masimo; 
 WHEREAS, Masimo has contributed and transferred to Subsidiary certain of its business operations
(the “Acquired Operations”); and 
 WHEREAS, Subsidiary desires to retain Masimo to provide certain administrative and
management services to assist Subsidiary in the management of the Acquired Operations. 
 NOW, THEREFORE, for good and valuable consideration
of the mutual covenants and agreements set forth herein, the receipt of which is hereby acknowledged, the parties agree as follows: 
 1.
Term of Agreement. This Agreement shall be effective on the date hereof and shall continue until terminated by either party upon thirty (30) days written notice to the other party. 
 2. Management Services. 
 (a)
Masimo may from time to time by the mutual agreement of the parties provide to Subsidiary certain management and administrative services (the “Masimo Services”). Unless the parties agree otherwise, Subsidiary shall pay Masimo a fee
equal to the costs expended by Masimo in rendering the Masimo Services hereunder plus a 5% mark-up on such costs (the “Management Fee”), such Management Fee payable in quarterly installments. In addition, Subsidiary shall reimburse
Masimo for certain out-of-pocket expenses incurred by Masimo in rendering the Masimo Services hereunder, including, but not limited to, reasonable reimbursement of attorneys’ fees incurred by Masimo, government fees, telephone, copying and the
like. Subsidiary acknowledges that such compensation arrangement is no less favorable than could have obtained in an arm’s length arrangement with an unrelated third party. Masimo shall not be liable to Subsidiary for any loss, damage or
injury, other than for gross negligence of its agents, or through contingencies beyond its control, arising out of the provision of any such services. Masimo’s liability under this Agreement shall not exceed the amount of consideration paid to
Masimo for the Masimo Services provided hereunder. In no event, whatsoever, shall Masimo be liable for consequential or punitive damages. 
 (b) Masimo shall invoice Subsidiary for the Management Fee and out-of pocket expenses incurred by Masimo in rendering services hereunder at least once each fiscal quarter and payment shall be made by Subsidiary within thirty (30) days
after the date of the invoice. 

 3. Services by Subsidiary. Subsidiary may from time to time provide services to Masimo as
specified in Schedule l (the “Subsidiary Services”). Unless the parties agree otherwise, Masimo shall pay Subsidiary a fee equal to the costs expended by Subsidiary in rendering the Subsidiary Services hereunder plus a 5%
mark-up on such costs (the “Services Fee”), such Services Fee payable in quarterly installments. 
 4. Sales and
Distribution Agreement. Concurrently with the execution of this Agreement, Masimo and Subsidiary have entered into that certain Sales and Distribution Agreement set forth on Schedule 2 hereto. 
 5. Mutual Cooperation. Masimo and Subsidiary acknowledge that the performance of this Agreement will require the mutual cooperation of the
parties, and each of the parties shall assist and cooperate with the other party as reasonably necessary to enable this Agreement to be performed and facilitate the proper operation and management of Subsidiary. 
 6. Indemnification By Service Provider. Masimo shall indemnify Subsidiary and its officers, directors, employees and representatives from
(i) any loss, damage, cost or expense (including reasonable attorneys’ fees) (a “Loss”) arising from any claim, demand, assessment, action, suit or proceeding (a “Claim”) arising or occurring during the
performance of the Masimo Services as a result of Masimo’s gross negligence or intentional misconduct and (ii) any Loss or Claim arising from or related to Masimo’s breach of any of the terms of this Agreement. Subsidiary shall
indemnify Masimo and its officers, directors, employees and representatives from (i) any Loss or Claim arising or occurring during the performance of the Subsidiary Services as a result of Masimo’s gross negligence or intentional
misconduct and (ii) any Loss or Claim arising from or related to Masimo’s breach of any of the terms of this Agreement. 
 7.
Confidentiality. 
 (a) Masimo grants to Subsidiary a perpetual, worldwide license to (i) use Masimo’s technical
information, inventions, concepts, products, components, trade secrets, know-how, techniques, designs, processes, communications protocols, software, and improvements; whether patentable or not, and all patents, patent applications, copyrights and
all other Masimo intellectual property rights (“Masimo Technology”), solely as required in the performance of its rights and obligations under this Agreement. 
 (b) Subsidiary grants to Masimo a perpetual, worldwide license to (i) use Subsidiary’s technical information, inventions, concepts, products,
components, trade secrets, know-how, techniques, designs, processes, communications protocols, software, and improvements; whether patentable or not, and all patents, patent applications, copyrights and all other Subsidiary intellectual property
rights solely as required in the performance of its rights and obligations under this Agreement. 
 (c) Each party
(“Recipient”) agrees to retain in confidence all information, knowledge, technology and trade secrets related to the operations of the other party (the “Disclosing Party”) disclosed to Recipient in the course of
performing its rights and obligations pursuant to the terms hereof and that it will not, without the written consent of the Disclosing Party, use information supplied or disclosed hereunder for any purpose other than that indicated 

  

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herein. In view of the proprietary and valuable nature of this information and the injury, which would arise in the event of a disclosure of such
information, the parties agree that this shall be a continuing obligation that shall survive the termination of this Agreement. This restriction shall not apply to information that: 
 (i) is or becomes public knowledge (through no fault of the Recipient), or 
 (ii) is made lawfully available to the Recipient by an independent third party, or 
 (iii) is required by law, regulation, rule, act, or order of any governmental authority or agency to be disclosed by the Recipient;
provided, however, that the Recipient gives the Disclosing Party sufficient advance written notice to permit it to seek a protective order or other similar order with respect to such information and thereafter discloses only the minimum information
required to be disclosed in order to comply. 
 (d) Each party agrees to protect personal data of Subsidiary personnel in accordance with the
terms and conditions of Schedule 3 hereto. 
 8. Improvements. Subsidiary agrees to assign and hereby does assign to Masimo all
rights, title and interest it has or acquires in any inventions, adaptations, modifications, enhancements, derivative works or changes relating to any Masimo Technology (“Improvements”). Subsidiary further agrees to provide all
assistance reasonably requested by Masimo, at Masimo’s expense, in securing and perfecting Masimo’s interest in the Improvements. 
 9. General. 
 (a) Assignment and Delegation. This Agreement is personal in nature, and neither of the
parties may, without the written consent of the other, assign any of the rights or delegate any of the duties hereunder. 
 (b) Binding
Agreement; Severability. This Agreement shall be binding upon and inure to the benefit of each party hereto and their respective permitted successors and assigns. If any provision of this Agreement is determined to be invalid or
unenforceable in whole or in part, the remaining provisions shall be enforceable to the greatest extent possible. 
 (c)
Notices. Any and all notices permitted or required to be given hereunder shall be sent by (i) registered or certified mail, postage and fees paid, with return receipt requested, addressed as below, (ii) hand delivery, or
(iii) by facsimile, receipt confirmed. Notice shall be deemed given as of the date of mailing, of receipt of hand delivery, or of receipt of any facsimile transmission. 
 (d) Governing Law. This Agreement is governed by and is to be construed in accordance with the laws of the State of California without
giving effect to any provisions thereof relating to conflict of laws. 
  

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 (e) Severability. The invalidity or unenforceability of any provision of this Agreement
will not affect the validity or enforceability of any other provision. 
 (f) Counterparts. This Agreement may be executed in
any number of counterparts, each of which is an original and all of which taken together constitute one instrument. 
 (g) Legal
Relationship. Subsidiary agrees that, regarding all matters relating to this Agreement, Subsidiary shall be an independent contractor and not an agent or employee of Masimo and shall not hold itself out as a legal representative, agent,
joint venturer, or partner of Masimo for any purpose whatsoever. Subsidiary has no right or authority to assume or create any obligations of any kind or to make any representations or warranties, whether express or implied, on behalf of Masimo or to
bind Masimo in any respect whatsoever (and shall not hold itself out as having such authority). It is understood that Subsidiary’ sales representatives are employees of Subsidiary, and not Masimo, and that Masimo has no responsibility or
obligation with respect to said persons. 
 (h) Force Majeure. 
 (i) Neither party shall be responsible for any failure to comply with the terms of this Agreement where such failure is due to force majeure, which shall
include, without limitation, fire, flood, explosion, strike, labor disputes, labor shortages, picketing, lockout, transportation embargo or failures or delays in transportation, strikes or labor disputes affecting supplies, or acts of God, civil
riot or insurrection, acts of the Federal Government or any agency thereof, or judicial action. Specifically excluded from this definition are those acts of the Federal Government or any agency thereof or judicial action which could have been
avoided by compliance with such laws or regulations as are publicly available and reasonably expected to be known by either party. 
 (ii)
Upon the cessation of any cause operating to excuse performance of either party under this Section, this Agreement shall continue in full force and effect unless or until otherwise terminated pursuant to this Agreement. If one or more of said causes
is asserted by either party as a basis of that party’s nonperformance, the other party shall have the right to terminate this Agreement forthwith by giving written notice to that effect prior to the resumption of performance. 
 (i) Headings. The section and paragraph headings used in this Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. 
  

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 (j) Entire Agreement. This Agreement, together with the exhibits and schedules attached
hereto, embody the entire understanding between the parties relating to its subject matter. This agreement may not be modified or terminated except by a writing duly signed by each of the parties hereto, and no waiver of any provision of this
Agreement shall be effective unless in a writing duly signed by the party sought to be bound. 
 IN WITNESS WHEREOF, the parties have
executed this Agreement as of the date above first written. 
  

							
	“Masimo”	 	“Subsidiary”
		
	MASIMO CORPORATION	 	MASIMO EUROPE LIMITED
				
	By:	 	 /s/ Joe Kiani
	 	By:	 	 /s/ Bradley Langdale

	Name:	 	 Joe E. Kiani
	 	Name:	 	 Bradley Langdale

	Title:	 	 Chairman & CEO
	 	Title:	 	 Director

  

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 SCHEDULE I 
 SUBSIDIARY SERVICES 
 (none) 

 SCHEDULE 2 
 SALES AND DISTRIBUTION AGREEMENT 
 THIS SALES AND DISTRIBUTION AGREEMENT (this
“Agreement”) is made and entered into as of 12:01 a.m. the 1st day of January, 2006, by and between Masimo Corporation, a Delaware corporation (“Masimo”), and Masimo Europe Limited, a corporation under the laws of
the United Kingdom (“Subsidiary”). 
 R E C I T A L S 
 WHEREAS, Masimo is a corporation that manufactures read-through motion and low perfusion pulse oximetry technologies and products throughout the world
(collectively, the “Product(s)”). 
 WHEREAS, Masimo is the parent of Subsidiary and has contributed its sales, distribution
and marketing operations in the Territory (as defined below) to Subsidiary (the “Acquired Operations”). 
 WHEREAS, as a
result of the transfer of the Acquired Operations, Masimo desires to engage Subsidiary to sell, distribute and promote the Products. 
 WHEREAS, Masimo is willing to appoint Subsidiary as a non-exclusive distributor of the Products in the Territory and to sell to Subsidiary all Products for which orders are received, and Subsidiary is willing to accept such appointment and
to purchase the Products manufactured by Masimo subject to certain terms and conditions set forth herein. It is further acknowledged that Subsidiary is undertaking the obligations herein subject to certain covenants and assurances provided by
Masimo, such covenants and assurances being deemed necessary by Subsidiary in view of the risks associated with the sale and distribution of the Products and in view of the unique resources available to Subsidiary. 
 NOW, THEREFORE, for good and valuable consideration of the mutual covenants and agreements set forth herein, the receipt of which is hereby acknowledged,
the parties agree as follows: 
 ARTICLE I 
 APPOINTMENT OF SUBSIDIARY 
 Section 1.1 Appointment and Acceptance. Masimo hereby
appoints Subsidiary as its non-exclusive distributor throughout Europe and the Middle East (which may be modified from time to time by written acknowledgment of the parties; said territory, as modified, being referred to as the
“Territory”) of all Products manufactured by Masimo. Masimo shall have the right to establish terms and limitations under which Subsidiary may distribute the Products, subject to applicable laws. Subsidiary hereby accepts such
appointment and agrees to fully perform and discharge its duties in accordance with this Agreement. Subsidiary may not modify or alter any Product, documentation, or packaging without Masimo’s express written consent. Subsidiary has the right
to appoint sub-distributors and agents to sell and distribute the Products within the Territory provided that such sub-distributors and agents are subject to the limitations set forth in this Agreement. 
  

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 Section 1.2 Territory for OEM’s. The parties hereby acknowledge that Subsidiary
shall have the right to distribute certain Products to original equipment manufacturers (“OEM(s)”) for incorporation into the OEMs’ products (“OEM Products”), and to distribute such OEM Products along with Masimo Products
for use with the OEM Products on a non-exclusive worldwide basis. 
 ARTICLE II 
 TERM, RENEWAL AND TERMINATION 
 Section 2.1 Term and Renewal.
Unless sooner terminated pursuant to Section 2.3 hereof, this Agreement shall remain in full force and effect commencing on January 1, 2005. This Agreement shall be effective on the date hereof and shall continue until terminated by either
party upon thirty (30) days written notice to the other party. 
 Section 2.2 Rights and Obligations upon
Termination. All orders from Subsidiary not accepted by Masimo on the date that notice of termination of this Agreement is delivered or upon the date that this Agreement otherwise terminates shall be deemed cancelled; provided, however, that
Masimo may choose, in Masimo’s sole discretion, to honor outstanding unfilled orders on the condition that, notwithstanding anything to the contrary contained in this or any other agreement with respect to such orders, Subsidiary immediately
shall pay Masimo for such Products against delivery of such Products. Upon demand by Subsidiary, Masimo agrees to repurchase from Subsidiary at cost any Product, which is held in inventory by Subsidiary as of the effective date of termination and
shall reimburse Subsidiary for any expenses incurred in performing the services contemplated hereunder through the effective date of termination. Upon termination of this Agreement, Subsidiary shall cease acting or holding itself out in any manner
as the distributor of the Products, including, without limitation, removing all signs and ceasing to use any advertising materials related to the Products. 
 Section 2.3 Termination. In addition to termination as provided in Section 2.1, this Agreement may be terminated as follows: 
 2.3.1 By either party upon notice to the other in the event at any time such other party (i) ceases to conduct its business, or
(ii) breaches any provision of this Agreement and such breach, if curable, is not cured by the breaching party within thirty (30) days of the breaching party’s receipt of notice thereof from the nonbreaching party; or 
 2.3.2 By either party without notice in the event the other party becomes insolvent or makes a general assignment for the benefit of
creditors or if a petition of bankruptcy is filed by such other party or by any third party against such other party, or if such other party is adjudicated a bankrupt, or if a receiver or other custodian, either permanent or temporary, is appointed
by any court with respect to the assets or business of such party, or if a proceeding for the relief of creditors under any foreign, state or federal law is instituted by or against such party. 
 2.3.3 Upon any such termination provided above, the parties shall have the rights set forth in Section 2.2. 
  

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 ARTICLE III 
 TRADEMARKS AND TRADE NAMES 
 Section 3.1 Masimo hereby grants to Subsidiary the
nonexclusive right and license to use the Masimo trademarks and trade names in connection with the promotion, sale and distribution of the Products in the Territory. Any use of Masimo’s trademarks is subject to Masimo’s prior approval,
which shall not be unreasonably withheld. 
 Section 3.2 Subsidiary acknowledges and agrees that the non-exclusive rights to
Masimo’s trademarks and trade names are and shall remain valuable, proprietary information belonging to Masimo and that Masimo is retaining non-exclusive rights to its trademarks and trade names. Subsidiary shall not at any time do or cause to
be done, or fail to do or cause to be done, any act or thing, directly or indirectly, contesting or in any way impairing Masimo’s rights in Masimo’s trademarks and trade names. Subsidiary additionally agrees that the Masimo trademarks and
trade names may be used by Subsidiary only in connection with the promotion, sale, and distribution of the Products in the Territory as set forth herein. 
 Section 3.3 Subsidiary specifically acknowledges that it does not possess, and shall not acquire, any interest in any of Masimo’s trademarks or trade names appearing on the labels or packaging
materials for the Products and that any enhancement in the value thereof resulting from the use contemplated by this Agreement inures to Masimo. 
 Section 3.4 Subsidiary shall not adopt, use or register any words, phrases or symbols which are identical to or confusingly similar to any of Masimo’s trademarks. Upon termination of this Agreement, Subsidiary shall cease
and desist from using Masimo’s trademarks in any manner. 
 Section 3.5 Subsidiary shall give immediate notice to Masimo of
any known or presumed counterfeits, copies, imitations, simulations or infringements upon Masimo’s trademark rights by third parties and shall cooperate fully with Masimo in the protection of those rights. 
 ARTICLE IV 
 OBLIGATIONS OF
SUBSIDIARY 
 During the Term of this Agreement, Subsidiary’ obligations shall, without limitation, include the following:

 Section 4.1 Best Efforts to Promote and Sell the Products. Subsidiary shall exercise its best efforts to sell and
distribute the Products and to promote the goodwill of Masimo and the market reputation of the Products. In connection with the foregoing, Subsidiary shall provide promptly to Masimo any information it obtains with respect to the Products, including
feedback from consumers, retailers, and distributors, and activities of competitors. Subsidiary shall conduct marketing and distribution activities of Products pursuant to the strategy set forth by Masimo. Furthermore, Subsidiary shall conduct its
activities in a professional manner and in accordance with the terms of this Agreement. 
  

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 Section 4.2 Staffing and Vehicles. Subsidiary shall maintain an adequate and
aggressive staff of sales and marketing personnel, which is sufficiently trained and knowledgeable to enable such staff to effectively promote sales of Products and solicit orders for Products. Subsidiary shall maintain and make available to its
sales personnel such other equipment and supplies as are necessary to Subsidiary to fulfill its obligations under this Agreement. 
 Section 4.3 Taxes. Subsidiary shall be solely responsible for the collection and payment of all taxes payable in connection with its resale of the Products and the performance of its services as contemplated herein.

 Section 4.4 Expenses. Subsidiary assumes full responsibility for all costs and expenses that it incurs in carrying out
its obligations under this Agreement. This shall include, without limitation, payment of all salaries and benefits for persons employed to perform Subsidiary’s responsibilities hereunder, all expenses incurred in connection with the advertising
and promotion of the Products, all expenses relating to any permits or licenses required in connection with the performance of Subsidiary’s responsibilities, and all expenses relating to vehicles used by sales representatives and other travel
and accommodation expenses incurred by such persons. It is acknowledged and understood that Subsidiary may utilize third parties to perform certain administrative services incident to the services performed hereunder. 
 ARTICLE V 
 OBLIGATIONS OF MASIMO

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

 Section 5.1 Satisfaction of Orders. Masimo shall fill orders for Products submitted by Subsidiary in accordance with an
agreed upon schedule for delivery. 
 Section 5.2 Masimo Support. Masimo shall provide, in the Territory, such support and
assistance, including promotional support, as Masimo, in its sole discretion, deems appropriate and necessary. 
 Section 5.3
Compliance with Law. Masimo shall comply with all applicable laws, statutes, rules and regulations concerning the manufacture and packaging of the Products. 
 ARTICLE VI 
 ORDERS 
 Section 6.1 Terms and Conditions. Orders by Subsidiary shall be subject to acceptance by Masimo at its principal place of business or
such other place(s) as may be designated by Masimo. Masimo will endeavor to fill all purchase orders tendered by Subsidiary promptly in accordance with such time periods, as the parties shall deem appropriate. 
 Section 6.2 Inability to Fill Orders. If Products are ordered by Subsidiary and Masimo does not have sufficient stock to fill such
order, or if for any reason Masimo cannot fill such order in the usual course of business, prompt notice thereof shall be provided to Subsidiary and Masimo shall be liable for any loss, cost or expense incurred by Subsidiary as a result of the
inability to fill such order promptly. 
  

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 Section 6.3 Cancellation of Orders by Subsidiary. Subsidiary may cancel any order,
which has not yet been accepted by Masimo and may cancel orders previously accepted by Masimo with the prior consent of Masimo. 
 Section 6.4 Delivery of Products. Masimo shall use its best efforts to deliver Products to Subsidiary in response to orders from Subsidiary in accordance with the time periods agreed upon. 
 ARTICLE VII 
 TITLE TO PRODUCT AND
RISK OF LOSS 
 Section 7.1 Delivery of Products. 
 7.1.1 Title to Product and risk of loss shall pass from Masimo to Subsidiary immediately upon availability to Subsidiary, Ex Works facility located at 40
Parker, Irvine, California. 
 7.1.2 Masimo assumes full responsibility for loss or damage of products while in Masimo’s possession,
except for any claims arising out of Subsidiary’ instructions. 
 Section 7.2 Returned Products. 
 7.2.1 For Products that do not satisfy the Product warranty provisions set forth in this Agreement, Masimo’s sole liability, and Subsidiary’
sole remedy under any warranty obligation is, at Masimo’s sole discretion, to repair or replace the Product or to refund the purchase price paid and accept return of the Product. 
 7.2.2 Products returned by Subsidiary shall be shipped to such location as designated by Masimo. 
 7.2.3 Masimo is not responsible to Subsidiary for warranty services for any products that were not originally sold by Masimo. Upon receipt of returned
goods from its customers, Subsidiary agrees to make a good faith and reasonable effort to identify and distinguish goods that were not purchased from Masimo. Such goods are not subject to terms and conditions of this Agreement. 
 ARTICLE VIII 
 PRODUCT PRICES,
PAYMENT TERMS AND RETURNS 
 Section 8.1 Product Prices. 
 8.1.1 The prices for the Products shall beset at arm’s length and calculated using the formula shown in Exhibit A. Subsidiary is free to establish
prices for the sale of Products, as applicable, to End Users, OEMs and Distributors. 
  

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 8.1.2 Such prices are subject to change from time to time as the parties mutually agree. The parties
agree to cooperate and act in good faith with respect to price increases, which become necessary in the event of increased manufacturing costs. Masimo may request such price increases by providing to Subsidiary reasonably satisfactory evidence
confirming the amounts of such increased costs, and in such event Subsidiary agrees not to withhold unreasonably its consent to reasonable increase in prices. 
 8.1.3 From time to time, Masimo may sell Products in the Territory, either directly or through a distribution channel partner under contract with Masimo. 
 Section 8.2 Product Invoicing and Payment Terms. 
 8.2.1 Masimo shall invoice Subsidiary for all Products on a monthly basis in accordance with the terms and conditions specified herein. Subsidiary agrees to pay each invoice within sixty (60) days of issuance.

 8.2.2 Interest shall accrue on amounts not paid when due at a rate equal to 10 percent per annum until payment in full is received.

 8.2.3 The price and payment terms contained in this Agreement shall apply to all purchase orders between Masimo and Subsidiary from the
effective date of this Agreement forward. 
 ARTICLE IX 
 MISCELLANEOUS 
 Section 9.1 Product Warranty. Masimo’s Product warranty shall
be as set forth in the applicable warranty certificate that accompanies the Product. 
 Section 9.2 Indemnification.

 9.2.1 Notice. Recognizing the objectives of this Agreement, Subsidiary agrees that if it knows of or becomes aware of any patents
that may be infringed by the manufacture and sale of the Masimo Products, it will promptly disclose such information to Masimo. 
 9.2.2
By Masimo – Bodily Injury. Masimo will defend, indemnify and hold Subsidiary harmless against any and all liability, loss, damages, costs or expenses which Subsidiary may hereafter incur, as a result of any injury, illness or death of
any person which is caused by any Masimo Product, to the extent that such injury, illness or death resulted from (i) Masimo’s design or manufacture of the standard Masimo Products or (ii) failure of the Masimo Products at the time of
shipment to Subsidiary to materially comply with published specifications. Masimo shall have no liability or responsibility of any kind to Subsidiary under this Section unless Subsidiary (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 Subsidiary desire to have its own counsel participate in any such action, the cost of such counsel shall be exclusively Subsidiary’s.

  

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 9.2.3 By Masimo – Infringement. Masimo will defend, indemnify and hold Subsidiary harmless
against infringement or alleged infringement directly resulting from standard Masimo Products furnished under this Agreement, of any patent, copyright, trademark, trade secret, or any other proprietary right of any third party. Masimo shall have no
liability or responsibility of any kind to Subsidiary under this Section unless Subsidiary (a) promptly notifies Masimo of such claim, (b) gives Masimo an adequate opportunity to defend, including complete control of such defense, and
(c) provides reasonable assistance to Masimo, at Masimo’s expense, in connection with the defense and settlement of any such claim including, but not limited to, where practical, modifying the Masimo Products to make them non-infringing
or, where practical, obtaining licenses under such intellectual property rights. Masimo shall have no liability for settlements made without its express written consent. Should Subsidiary desire to have its own counsel participate in any such
action, the cost of such counsel shall be exclusively Subsidiary’s. Masimo may, at its sole discretion, modify the particular Masimo Product to make it non-infringing, obtain a license to allow the continued use of the Masimo Product, or
discontinue shipment of the Masimo Product to Subsidiary. 
 9.2.4 By Subsidiary. Subsidiary 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 Masimo Product, or as a result of infringement or claims of
infringement related to the Masimo Products of any patent, copyright, trademark, trade secret, or any other proprietary right of any third party, to the extent that such injury, illness or death or infringement results from (i) any combination
of the Masimo Product with items not furnished by Masimo (except where such combination is approved by Masimo (e.g. use of Masimo circuit boards in OEM product), (ii) any inadequacy of the labeling or use-manuals for such Masimo Product (unless
such inadequacy consists of inaccurate information supplied by Masimo), or (iii) any modifications to the Masimo Products made by Subsidiary, by others, or by Masimo at Subsidiary’s request. Subsidiary shall have no liability or
responsibility of any kind to Masimo under this Section unless Masimo (a) promptly notifies Subsidiary of such claims, (b) gives Subsidiary an adequate opportunity to defend, including complete control of such defense and (c) provides
reasonable assistance to Subsidiary, at Subsidiary’s expense, in connection with the defense and settlement of such claim. Subsidiary shall have no liability for settlements made without its express written consent. Should Masimo desire to have
its own counsel participate in any such action, the cost of such counsel shall be exclusively Masimo’s. 
 9.2.5 Indemnity
Limitations and Exclusions. Notwithstanding the above, Masimo shall not be liable for any infringement of intellectual property rights of third parties or for any liability, loss, damages, costs or expenses which Subsidiary may incur as a result
of any injury, illness or death resulting from (a) modifications to the Masimo Products made by Subsidiary, by others, or by Masimo at Subsidiary’s request, (b) electrical/electronics, software/firmware, sensors, or product interface
not furnished by Masimo, (c) combination of the Masimo Products with other apparatus not furnished by Masimo, (d) use of products or components not supplied by Masimo, (e) use of Masimo Products in a manner not permitted by this
Agreement, or (f) for any claims not related directly to the Masimo Products, (g) any alterations or modifications to the Masimo Products which are requested by Subsidiary. MASIMO’S TOTAL AGGREGATE LIABILITY UNDER THIS SECTION 9.2
(“INDEMNIFICATION”) SHALL IN NO CASE EXCEED FIVE MILLION DOLLARS 

  

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($5,000,000). THE PARTIES AGREE THAT THIS LIMITATION OF LIABILITY IS FAIR AND REASONABLE BECAUSE MASIMO IS NOT RESPONSIBLE FOR REGULATORY APPROVALS IN THE
TERRITORY AND IS NOT DIRECTLY INVOLVED IN THE SALE OR INSTALLATION OF THE PRODUCTS. 
 9.2.6 Patent Defense. Subsidiary agrees that it
shall notify Masimo of any claim by a third party that such third party believes any Masimo patents are invalid. Subsidiary agrees to promptly notify Masimo of any such claim whether or not such claim is asserted in court by such third party.

  

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 SCHEDULE 2 
 Exhibit A 
 PRODUCT PRICES 
 Subsidiary Net Sales: A 
 Subsidiary Intercompany Cost of Goods Sold: B 
 Subsidiary Operating Expenses (Budget): C 
 (A-B-C)/A = X, 
 Where X shall be a value within the arm’s length interquartile range of operating margins as determined annually in the transfer pricing study. 
 The transfer price B is therefore equivalent to: 
 B=A (1-X) -C 

 SCHEDULE 3 
 TRANSFER OF PERSONAL DATA FROM EUROPEAN COMMUNITY TO THIRD 
 COUNTRIES 
  

	I.	Definitions 

 For the purposes of this Schedule: 
 (a) “personal data” shall mean any information relating to an identified or identifiable natural person (“data subject”); an identifiable person is
one who can be identified, directly or indirectly, in particular by reference to an identification number or to one or more factors specific to his physical, physiological, mental, economic, cultural or social identity. 
 (b) “sensitive data” shall mean personal data revealing racial or ethnic origin, political opinions, religious or philosophical beliefs, trade-union
membership, and the processing of data concerning health or sex life. 
 (c) “process/processing” shall mean any operation or set of operations
which is performed upon personal data, whether or not by automatic means, such as collection, recording, organization, storage, adaptation or alteration, retrieval, consultation, use, disclosure by transmission, dissemination or other making
available, alignment or combination, blocking, erasure or destruction. 
 (d) “controller” shall mean the natural or legal person, public
authority, agency or other body which, alone or jointly with others, determines the purposes and means of the processing of personal data; where the purposes and means of processing are determined by national or Community laws or regulations, the
controller or the specific criteria for his nomination may be designated by national or Community law. 
 (e) “processor” shall mean a natural or
legal person, public authority, agency or other body which processes personal data on behalf of the controller. 
 (f) “supervisory
authority/authority” shall have the same meaning as in Directive 95/46/EC of 24 October 1995 (whereby “the authority” shall mean the competent data protection authority in the territory in which Subsidiary is established); and

 (g) “clauses” shall mean the contractual clauses of this Schedule. 
  

	II.	Obligations of Subsidiary 

 Subsidiary warrants and undertakes that:

 (a) The personal data have been collected, processed and transferred in accordance with the laws applicable to Subsidiary. 
 (b) It has used reasonable efforts to determine that Masimo is able to satisfy its legal obligations under these clauses. 
  

 -16- 

 (c) It will provide Masimo, when so requested, with copies of relevant data protection laws or references to them (where
relevant, and not including legal advice) of the country in which Subsidiary is established. 
 (d) It will respond to enquiries from data subjects and the
authority concerning processing of the personal data by Masimo, unless the parties have agreed that Masimo will so respond, in which case Subsidiary will still respond to the extent reasonably possible and with the information reasonably available
to it if Masimo is unwilling or unable to respond. Responses will be made within a reasonable time. 
 (e) It will make available, upon request, a copy of
the clauses to data subjects who are third party beneficiaries under clause IV, unless the clauses contain confidential information, in which case it may remove such information. Where information is removed, Subsidiary shall inform data subjects in
writing of the reason for removal and of their right to draw the removal to the attention of the authority. However, Subsidiary shall abide by a decision of the authority regarding access to the full text of the clauses by data subjects, as long as
data subjects have agreed to respect the confidentiality of the confidential information removed. Subsidiary shall also provide a copy of the clauses to the authority where required. 
  

	III.	Obligations of Masimo 

 Masimo warrants and undertakes that:

 (a) It will have in place appropriate technical and organizational measures to protect the personal data against accidental or unlawful destruction or
accidental loss, alteration, unauthorized disclosure or access, and which provide a level of security appropriate to the risk represented by the processing and the nature of the data to be protected. 
 (b) It will have in place procedures so that any third party it authorizes to have access to the personal data, including processors, will respect and maintain the
confidentiality and security of the personal data. Any person acting under the authority of Masimo, including a data processor, shall be obligated to process the personal data only on instructions from Masimo. This provision does not apply to
persons authorized or required by law or regulation to have access to the personal data. 
 (c) It has no reason to believe, at the time of entering into
these clauses, in the existence of any local laws that would have a substantial adverse effect on the guarantees provided for under these clauses, and it will inform Subsidiary (which will pass such notification on to the authority where required)
if it becomes aware of any such laws. 
 (d) It will process the personal data for the management and administration of the employee, the employee’s
benefits, and as necessary for other legitimate business purposes, and has the legal authority to give the warranties and fulfill the undertakings set out in these clauses. 
 (e) It will identify to Subsidiary a contact point within its organization authorized to respond to enquiries concerning processing of the personal data, and will cooperate in good faith with Subsidiary, the data
subject and the authority concerning all such enquiries within a reasonable time. In case of legal dissolution of Subsidiary, or if the parties have so agreed, Masimo will assume responsibility for compliance with the provisions of clause II(e).

  

 -17- 

 (f) At the request of Subsidiary, it will provide Subsidiary with evidence of financial resources sufficient to fulfill
its responsibilities under clause IV (which may include insurance coverage). 
 (g) Upon reasonable request of Subsidiary, it will submit its data processing
facilities, data files and documentation needed for processing to reviewing, auditing and/or certifying by Subsidiary (or any independent or impartial inspection agents or auditors, selected by Subsidiary and not reasonably objected to by Masimo) to
ascertain compliance with the warranties and undertakings in these clauses, with reasonable notice and during regular business hours. The request will be subject to any necessary consent or approval from a regulatory or supervisory authority within
the country of Masimo, which consent or approval Masimo will attempt to obtain in a timely fashion. 
 (h) It will process the personal data, at its option,
in accordance with the data processing principles set forth in Annex A. 
 (i) It will not disclose or transfer the personal data to a third party data
controller located outside the European Economic Area (EEA) unless it notifies Subsidiary about the transfer and 
 (i) the third party data
controller processes the personal data in accordance with a Commission decision finding that a third country provides adequate protection, or 
 (ii) the third party data controller becomes a signatory to these clauses or another data transfer agreement approved by a competent authority in the EU, or 
 (iii) data subjects have been given the opportunity to object, after having been informed of the purposes of the transfer, the categories of recipients and the fact that the countries to which data is exported may
have different data protection standards, or 
 (iv) with regard to onward transfers of sensitive data, data subjects have given their
unambiguous consent to the onward transfer 
  

	IV.	Liability and third party rights 

 (a) Each party shall be liable to
the other parties for damages it causes by any breach of these clauses. Liability as between the parties is limited to actual damage suffered. Punitive damages (i.e. damages intended to punish a party for its outrageous conduct) are specifically
excluded. Each party shall be liable to data subjects for damages it causes by any breach of third party rights under these clauses. This does not affect the liability of Subsidiary under its data protection law. 
 (b) The parties agree that a data subject shall have the right to enforce as a third party beneficiary this clause and clauses II(b), II(d), II(e), III(a), III(c),
III(d), III(e), III(h), III(i), IV(a), VI, VII(d) and VIII against Masimo or Subsidiary, for their respective breach of their contractual obligations, with regard to his personal data, and accept jurisdiction for this purpose in 

  

 -18- 

 
Subsidiary’s country of establishment. In cases involving allegations of breach by Masimo, the data subject must first request Subsidiary to take
appropriate action to enforce his rights against Masimo; if Subsidiary does not take such action within a reasonable period (which under normal circumstances would be one month), the data subject may then enforce his rights against Masimo directly.
A data subject is entitled to proceed directly against a data exporter that has failed to use reasonable efforts to determine that Masimo is able to satisfy its legal obligations under these clauses (Subsidiary shall have the burden to prove that it
took reasonable efforts). 
  

	V.	Law applicable to the clauses 

 These clauses shall be governed by
the law of the country in which Subsidiary is established, with the exception of the laws and regulations relating to processing of the personal data by Masimo under clause III(h), which shall apply only if so selected by Masimo under that clause.

  

	VI.	Resolution of disputes with data subjects or the authority 

 (a) In
the event of a dispute or claim brought by a data subject or the authority concerning the processing of the personal data against either or both of the parties, the parties will inform each other about any such disputes or claims, and will cooperate
with a view to settling them amicably in a timely fashion. 
 (b) The parties agree to respond to any generally available non-binding mediation procedure
initiated by a data subject or by the authority. If they do participate in the proceedings, the parties may elect to do so remotely (such as by telephone or other electronic means). The parties also agree to consider participating in any other
arbitration, mediation or other dispute resolution proceedings developed for data protection disputes. 
 (c) Each party shall abide by a decision of a
competent court of Subsidiary’s country of establishment or of the authority which is final and against which no further appeal is possible. 
  

	VII.	Termination 

 (a) In the event that Masimo is in breach of its
obligations under these clauses, then Subsidiary may temporarily suspend the transfer of personal data to Masimo until the breach is repaired or the contract is terminated. 
 (b) In the event that: 
 (i) the transfer of personal data to Masimo has been temporarily suspended by Subsidiary for longer
than one month pursuant to paragraph (a); 
 (ii) compliance by Masimo with these clauses would put it in breach of its legal or regulatory obligations in
the country of import; 
 (iii) Masimo is in substantial or persistent breach of any warranties or undertakings given by it under these clauses; 

 

 -19- 

 (iv) a final decision against which no further appeal is possible of a competent court of Subsidiary’s country of
establishment or of the authority rules that there has been a breach of the clauses by Masimo or Subsidiary; or 
 (v) a petition is presented for the
administration or winding up of Masimo, whether in its personal or business capacity, which petition is not dismissed within the applicable period for such dismissal under applicable law; a winding up order is made; a receiver is appointed over any
of its assets; a trustee in bankruptcy is appointed, if Masimo is an individual; a company voluntary arrangement is commenced by it; or any equivalent event in any jurisdiction occurs then Subsidiary, without prejudice to any other rights which it
may have against Masimo, shall be entitled to terminate these clauses, in which case the authority shall be informed where required. In cases covered by (i), (ii), or (iv) above Masimo may also terminate these clauses. 
 (c) Either party may terminate these clauses if (i) any Commission positive adequacy decision under Article 25(6) of Directive 95/46/EC (or any superseding text) is
issued in relation to the country (or a sector thereof) to which the data is transferred and processed by Masimo, or (ii) Directive 95/46/EC (or any superseding text) becomes directly applicable in such country. 
 (d) The parties agree that the termination of these clauses at any time, in any circumstances and for whatever reason (except for termination under clause VII(c)) does
not exempt them from the obligations and/or conditions under the clauses as regards the processing of the personal data transferred. 
  

	VIII.	Variation of these clauses 

 The parties may not
modify these clauses except to update the description of data to be provided or of the use for which Masimo will use such data, in which case they will inform the authority where required. This does not preclude the parties from adding additional
commercial clauses where required. 
  

	IX.	Description of the Transfer 

 The personal data to
be transferred include all data collected by Subsidiary or by Masimo in the course of employment and may include, without limitation, name, title, salary, job function, work experience, performance evaluations, office address, telephone number, and
e-mail address, data relating to expenses charged to credit cards sponsored by Masimo or Subsidiary, age, sex, family status, social security number, education, and specific skills and qualifications. The parties agree that such personal data may
contain confidential business information which they will not disclose to third parties, except as required by law or in response to a competent regulatory or government agency, or as required under clause II(e). 
  

 -20- 

 SCHEDULE 3 
 ANNEX A 
 DATA PROCESSING PRINCIPLES 
 1 Purpose limitation: Personal data may be processed and subsequently used or further communicated only for legitimate business purposes relating to the employee or subsequently authorized by the data subject.

 2 Data quality and proportionality: Personal data must be accurate and, where necessary, kept up to date, The personal data must be adequate, relevant and
not excessive in relation to the purposes for which they are transferred and further processed. 
 3 Transparency: Data subjects must be provided with
information necessary to ensure fair processing (such as information about the purposes of processing and about the transfer), unless such information has already been given by Subsidiary. 
 4 Security and confidentiality: Technical and organizational security measures must be taken by the data controller that are appropriate to the risks, such as against
accidental or unlawful destruction or accidental loss, alteration, unauthorized disclosure or access, presented by the processing. Any person acting under the authority of the data controller, including a processor, must not process the data except
on instructions from the data controller. 
 5 Rights of access, rectification, deletion and objection: As provided in Article 12 of Directive 95/46/EC, data
subjects must, whether directly or via a third party, be provided with the personal information about them that an organization holds, except for requests which are manifestly abusive, based on unreasonable intervals or their number or repetitive or
systematic nature, or for which access need not be granted under the law of the country of Subsidiary. Provided that the authority has given its prior approval, access need also not be granted when doing so would be likely to seriously harm the
interests of Masimo or other organizations dealing with Masimo and such interests are not overridden by the interests for fundamental rights and freedoms of the data subject. The sources of the personal data need not be identified when this is not
possible by reasonable efforts, or where the rights of persons other than the individual would be violated. Data subjects must be able to have the personal information about them rectified, amended, or deleted where it is inaccurate or processed
against these principles. If there are compelling grounds to doubt the legitimacy of the request, the organization may require further justifications before proceeding to rectification, amendment or deletion. Notification of any rectification,
amendment or deletion to third parties to whom the data have been disclosed need not be made when this involves a disproportionate effort. A data subject must also be able to object to the processing of the personal data relating to him if there are
compelling legitimate grounds relating to his particular situation. The burden of proof for any refusal rests on Masimo, and the data subject may always challenge a refusal before the authority. 
 6 Sensitive data: Masimo shall take such additional measures (e.g. relating to security) as are necessary to protect such sensitive data in accordance with its
obligations under clause III. 
  

 -21- 

 7 Data used for marketing purposes: Where data are processed for the purposes of direct marketing, effective procedures
should exist allowing the data subject at any time to “opt-out” from having his data used for such purposes. 
 8. Automated decisions: For
purposes hereof “automated decision” shall mean a decision by Subsidiary or Masimo which produces legal effects concerning a data subject or significantly affects a data subject and which is based solely on automated processing of personal
data intended to evaluate certain personal aspects relating to him, such as his performance at work, creditworthiness, reliability, conduct, etc. Masimo shall not make any automated decisions concerning data subjects, except when: 
  

	(a)	(i) such decisions are made by Masimo in entering into or performing a contract with the data subject, and 

 (ii) (the data subject is given an opportunity to discuss the results of a relevant automated decision with a representative of the parties making such
decision or otherwise to make representations to that parties. 
  

	(b)	where otherwise provided by the law of Subsidiary. 

  

 -22-Settlement Agreement and Release of Claims, dated 01/17/2006

 Exhibit 10.30 
 SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS 
 This Settlement Agreement and Release of Claims (the
“Agreement”) is made and entered into this 17th day of January, 2006, between Masimo Corporation and Masimo Laboratories, Inc. (hereinafter “Masimo”), and Nellcor Puritan Bennett, Inc., Mallinckrodt, Inc, Tyco Healthcare Group
LP, Tyco International Ltd, and Tyco International (US) Inc. (collectively “Nellcor”) (each individually as a “Party” or collectively the “Parties”). 
 RECITALS 
 A. Whereas the Parties are involved in litigation in the
United States District Court for the Central District of California, Civil Action Nos. CV 00-6506 MRP (AJWx) and CV 03-0603 MRP (AJWx) alleging claims under federal patent laws (the “Patent Litigation”); 
 B. Whereas the Parties are involved in litigation in the United States District Court for the Central District of California, Civil Action No. CV
02-4770 MRP (AJWx) alleging claims under federal antitrust laws (the “Antitrust Litigation”); and 
 C. Whereas Masimo and
Nellcor desire to settle fully and finally all claims and disputes between the parties other than the Antitrust Litigation. 
 AGREEMENT

 Now, therefore, in consideration of the mutual covenants and promises herein contained and other good and valuable consideration,
receipt and sufficiency of which are hereby acknowledged, and to avoid the expense of further litigation, the Parties covenant and agree as follows: 
  

	 	1	Definitions: 

  

	 	1.1	“Affiliate” means, with respect to each Party, any legal entity that is, directly or indirectly, controlling, controlled by or under common control with the Party.
For purposes of this definition, an entity shall be deemed to control another entity if it owns or controls, directly or indirectly, more than fifty percent (50%) of the voting equity of the other entity (or other comparable ownership interest
for an entity other than a corporation). 

  

	 	1.2	“Essentially Unchanged” means no changes other than (i) immaterial changes to the software for the correction of bugs or implementation of a software
translation (e.g., a recompile due to processor change), and/or (ii) hardware changes that are not covered by any of the other Party’s patents not proven invalid or unenforceable by a court of competent jurisdiction, and/or
(iii) software changes for size or power utilization, industrial design, user interface and connectivity that are not covered by any of the other Party’s patents not proven invalid or unenforceable by a court of competent jurisdiction,
and/or (iv) changes consisting of the addition of the parameters of 

  

 1 

	 	 	blood pressure, respiration rate, temperature, ECG, and CO2 that are not, alone or in combination with other new features, functions or parameters, covered by any of the other
Party’s patents not found invalid or unenforceable by a court of competent jurisdiction and/or (v) changes consisting of the addition of new feature(s), function(s) or parameter(s) that are generated from pulse rate and/or Oxygen
Saturation calculations and that are not, alone or in combination with other new features or functions or parameters, covered by any of the other Party’s patents not found invalid or unenforceable by a court of competent jurisdiction. For
purposes of this Section 1.2, “other Party’s patents” includes (a) patents that are exclusively licensed to such Party and (b) with respect to a specified field of use, patents that are exclusively licensed to such
party for such field of use. 

  

	 	1.3	“Pulse Oximetry Revenue” means Nellcor’s and its Affiliates’ net pulse oximetry revenue for products shipped, service and licenses to purchasers in the
United States. Net Pulse Oximetry Revenue is calculated in accordance with GAAP, consistent with how such calculations were made in the past by Nellcor, as provided to Masimo in accordance with Section 3.1. Nellcor has not and will not direct
revenue away from the United States and to international markets in order to avoid or reduce paying royalties under this Agreement. For multiparameter devices (i.e., devices including parameters or therapeutic functions other than pulse rate and
Oxygen Saturation), the per unit portion of the net revenue attributable to pulse oximetry revenue will be set at 100% of the then current year average net sales price of Nellcor’s stand alone pulse oximetry monitors, but not less than $1500.

  

	 	1.4	“Masimo Patents” means U.S. Patent Nos. 6,263,222, 6,157,850, and 5,769,785. 

  

	 	1.5	“06 Pulse Oximetry Products” means Nellcor’s pulse oximetry products (including oximetry software licensed to OEMs) that use the 06 algorithm as shown to
Masimo during November 2005 in the due diligence process of the Memorandum of Understanding dated October 20, 2005. A list of the 06 Pulse Oximetry Products is set forth in Exhibit C. 

  

	 	1.6	“Oxygen Saturation” is as defined in ISO 9919:2005 section 3.25 (definition of SpO2, which is an estimate of SaO2 or the true functional saturation).

  

	 	1.7	“Fractional Saturation” is as defined in ISO 9919:2005 section 3.8 (definition of fractional oxyhaemoglobin FO2Hb), or HbO2/(Hb + HbO2 + HbCO + HbMet), or SpO2
– (SpCO and/or SpMet), (including using the ratio of ratios for each of the hemoglobins and then converting to fractional saturation), and any approximations thereof. 

  

 2 

	 	2	Settlement Payment: 

  

	 	2.1	By January 19, 2006, Nellcor shall deliver a non-refundable payment by wire transfer to Masimo Corp. in the amount of Three-Hundred Thirty Million Four-Hundred-Eighty Thousand
Dollars ($330,480,000). This amount is comprised of Two-Hundred-Fifty-Eight Million ($258,000,000) for infringements by 04, 05 and 05ci sales through December 31, 2005; Six Million Two Hundred Fifty Thousand ($6,250,000) for pulse oximetery
sales from January 1, 2006 through January 31, 2006; and Sixty-Six Million Two-Hundred-Thirty Thousand ($66,230,000) as an advance royalty payment for the period from February 1, 2006 through December 31, 2006. Late payments
shall accrue interest at 10% per annum. 

  

	 	2.2	The Settlement Payment in Section 2.1 is based upon unit shipments of Nellcor 04, 05, 05ci and 06 pulse oximeters and pulse oximeter boards for January 2006 of 9,000 units. No
later than April 1, 2006, Nellcor will provide actual unit volumes for sales of such pulse oximeters and pulse oximeter boards for January 2006 for the same geographic scope presented at the trial. If Nellcor shipped more than 9,000 units
during that period, it shall pay to Masimo an additional amount as follows: the number of such units over 9,000 shall be calculated (“Overage Units”) and, for each 06 unit shipped, up to the number of Overage Units, Nellcor will pay 20% of
the Pulse Oximetry Revenue for such units, and if there are any Overage Units in excess of the number of 06 units shipped, Nellcor will pay $580 per unit for each such unit. If Nellcor shipped less than 9,000 units Masimo will credit Nellcor $580
per unit for each unit under 9,000 toward future royalties due. The number of units shipped for January 2006 provided by Nellcor will be subject to the audit provisions of Section 6 below. 

  

	 	3	Representations and Warranties: 

  

	 	3.1	In advance of execution of this Agreement, Nellcor has provided to Masimo’s counsel (under attorney-eyes only confidentiality and to Masimo’s CEO and CFO) documents
sufficient to show: (i) unit shipments of 04, 05, and 05ci pulse oximeter products between June 2004 through October 2005 consistent with the damages calculation during the Patent Litigation; and (ii) Pulse Oximetry Revenue for the
consecutive calendar quarters ending December 31, 2001 through December 31, 2005. Nellcor states that its good faith estimate for its Pulse Oximetry Revenue in 2006 is approximately $350 million. Nellcor represents and warrants that the
information provided under this Section 3.1 is materially accurate and complete based upon the information in the books and records of Nellcor. 

  

	 	3.2	Nellcor represents and warrants that the 06 Pulse Oximetry Products commercially released will be the same as the product reviewed by Knobbe, Martens, Olson & Bear in November
2005 and will use the same 

  

 3 

	 	 	specification, circuit diagrams and source code provided under section 4.2. Further, Nellcor represents and warrants that the 06 Pulse Oximetry Products do not (i) contain
closed loop adaptive filters, (ii) calculate Oxygen Saturation based on two or more alternative calculations of Oxygen Saturation, ratio of ratios or a representative indication or value for Oxygen Saturation from the same signal,
(iii) calculate pulse rate based on three or more alternative calculations of pulse rate from the same signal, or (iv) measure physiological parameters other than pulse rate, Oxygen Saturation, plethysmographic waveforms, ECG, pulse
amplitude (not displayed as a number or in real time on a scale with a number), blood pressure, respiration rate, temperature, ECG and CO2. Masimo acknowledges for purposes of this Section 3.2 that an ECG signal and an optical signal are not
the same signal. Nellcor acknowledges that for the purposes of this Section 3.2, an optical signal is considered the same signal regardless of the number of wavelengths detected. 

  

	 	3.3	Nellcor represents that none of its current sensors, cables which connect the sensor to the pulse oximeters (including OEM boards), or O6 Pulse Oximetry Products are configured to
be compatible with any current Masimo pulse oximeters (including OEM boards) or sensors. 

  

	 	3.4	Masimo represents that none of its current sensors, cables which connect the sensor to the pulse oximeter (including OEM boards), or products listed in exhibit D are configured to
be compatible with any current Nellcor OxiMax pulse oximeter (including OEM boards) or Oximax Sensors, except with respect to the RCAL compatibility (including in OxiMax sensors). Masimo further represents (i) that Masimo’s currently
commercially available oximeters do not store the physiological patient data collected during monitoring in a memory on the sensor, and (ii) that Masimo’s currently commercially available oximeters do not store in a memory on the sensor,
sensor-specific user troubleshooting messages for optimal sensor placement. For purposes of clarity, storing the sensor type or ID and displaying the sensor type when the sensor is connected to the oximeter is not storing a sensor-specific user
troubleshooting message. 

  

	 	4	Covenants Not to Sue 

  

	 	4.1	Masimo and it Affiliates covenant not to sue Nellcor and/or its Affiliates for infringement by Nellcor’s 06 Pulse Oximetry Products, and new products Essentially Unchanged
therefrom. This covenant also extends to the potential change referenced in Section 5.1. For as long as the running royalties are being paid, Masimo and its Affiliates further covenant not to sue Nellcor and/or its Affiliates for the Nellcor
pulse oximetry portion of future Nellcor products, including oximetry software licensed to OEMs, (“Next Generation Pulse Oximeters”) under Claims 17 or 18 of U.S. Patent Number 6,263,222, and continuations and continuations-in-part, either
with claims directed to or 

  

 4 

	 	 	covering the same subject matter. For as long as the running royalties are being paid, Masimo and its Affiliates further covenant not to sue Nellcor and/or its Affiliates for the
Next Generation Pulse Oximeters under Claims 1, 10, 11, 22, 23 and 24 of U.S. Patent Number 6,157,850, and continuations and continuations-in-part, either with claims directed to or covering the same subject matter, provided that such Next
Generation Pulse Oximeters (i) do not calculate any physiological parameter other than pulse rate based on two or more alternative calculations of that physiological parameter from the same signal and (ii) do not calculate pulse rate based
on three or more alternative calculations of pulse from the same signal, and (iii) do not include parameters other than Oxygen Saturation, pulse rate, plethysmographic waveforms, pulse amplitude (not displayed as a number or in real time on a
scale with a number), blood pressure, respiration rate, temperature, ECG and CO2 and feature(s), function(s) or parameter(s) that are generated from pulse rate and/or Oxygen Saturation calculations. If Nellcor succeeds in reducing royalties under
Section 5.1, the same condition to reduce the royalty applies to Next Generation Pulse Oximeters in order for the royalty reduction to apply. Masimo also covenants not to sue for infringement any customer, distributor, OEM, licensee, supplier
or purchasing organization with respect to the purchase, distribution, manufacturing (excluding sensors and accessories not manufactured for Nellcor), marketing or use of the covenanted products or Nellcor and/or its Affiliates products Essentially
Unchanged therefrom as described in this Section 4.1. The covenants of this Section 4.1 do not extend to any products that are permitted or intended for use, with any sensors (including non-Nellcor sensors manufactured by Nellcor for
another company) other than Nellcor sensors. 

  

	 	4.2	Nellcor shall deliver one Nellcor pulse oximeter containing 06 technology to Masimo’s lawyers, and represents that this has the same technology and performance as that
disclosed to Masimo’s lawyers and tested during November 2005. Nellcor also shall place in an independent, third party escrow on mutually agreeable terms the corresponding specifications, circuit diagrams and source code for such pulse
oximeter, as evidence of the 06 technology disclosed to Masimo, which Nellcor represents and warrants will be the same as that disclosed to Masimo’s lawyers and tested during November 2005. Masimo’s lawyers may provide the pulse oximeter
to Masimo on or after January 10, 2006. 

  

	 	4.3	Nellcor and its Affiliates covenant not to sue Masimo and/or its Affiliates for infringement by Masimo’s pulse oximetry and Rainbow SET products commercially available as of
January 17, 2006 and new products Essentially Unchanged therefrom. Nellcor and its Affiliates further covenant not to sue Masimo and/or its Affiliates for infringement of any new disposable and multisite versions of the currently commercially
available reusable Rainbow sensors and associated cables, and new products Essentially Unchanged therefrom, provided that such sensors are not configured to be compatible 

  

 5 

	 	 	with Nellcor’s pulse oximeters, where the compatibility between pulse oximeter and the sensor (i.e, lock and key) is covered by a Nellcor patent not proven invalid or
unenforceable by a court of competent jurisdiction. Nellcor and its Affiliates further covenant not to sue Masimo and/or its Affiliates for infringement due to any changes to such products above to enable such products to include the parameters of
Fractional Saturation, carboxyhemoglobin, methemoglobin, total hemoglobin, hematocrit, bilirubin and/or glucose. Nellcor’s and its Affiliates covenants include a covenant not to sue Masimo and/or its Affiliates for infringement for
(i) improvements (except improvements to sensors) to precision and accuracy of any parameter in such products available as of January 17, 2006, and Fractional Saturation, total hemoglobin, hematocrit, bilirubin and/or glucose, except to
the extent such improvement is covered by any Nellcor patent (or patent exclusively licensed to Nellcor or exclusively licensed to Nellcor for the relevant field of use) not found to be invalid or unenforceable by a court of competent jurisdiction,
the substance of which is filed for the first time after the January 17, 2006 and not having a priority claim to a date or entitled to priority from a date before such date and (ii) any other improvement to the covenanted products, except
to the extent such other improvement is covered by any Nellcor patent (or patent exclusively licensed to Nellcor or exclusively licensed to Nellcor for the relevant field of use) not found to be invalid or unenforceable by a court of competent
jurisdiction. Nellcor and its Affiliates also covenant not to sue for infringement any customer, distributor, OEM, licensee, supplier or purchasing organization with respect to the purchase, distribution, manufacturing (excluding sensors and
accessories not manufactured for Masimo), marketing or use of the covenanted products or Masimo and/or its Affiliates products Essentially Unchanged therefrom as described in this Section 4.3. Masimo will use good faith efforts to compile a
list of pulse oximetry and Rainbow SET products commercially available as of January 17, 2006 and provide such list to Nellcor’s lawyers (under attorney-eyes only confidentiality and to David Sell, Brian Earp, and Paul Mannheimer), and
attached hereto as Exhibit D. 

  

	 	4.4	The covenants of Sections 4.1 and 4.3 extend to proprietary rights that are exclusively licensed to the covenanting party, or, with respect to a specified field of use, patents that
are exclusively licensed to the covenanting party for such field of use, including any right to control the institution or maintenance of litigation. Nellcor and Masimo will not assist any of its licensors in enforcing proprietary rights against the
other party, except to the extent required by law. 

  

	 	5	Ongoing Royalties. 

  

	 	5.1	Nellcor agrees to pay Masimo Corp. a 13% running royalty based on its and its Affiliates Pulse Oximetry Revenue occurring on or after February 1, 2006. Nellcor will pay an
additional 7% running royalty on its and its Affiliates 

  

 6 

	 	 	Pulse Oximetry Revenue for calendar year 2006. Nellcor will pay an additional 2% running royalty on its and its Affiliates Pulse Oximetry Revenue for calendar year 2007. Nellcor
will pay an advance royalty of $66,230,000 on or before January 19, 2006 (the “Payment Date”) for the 2006 royalty as provided in Section 2. On or after January 1, 2007, the 13% royalty will be reduced to 10%, plus the
additional 2% for 2007, in the event that Nellcor establishes that a proposed change to the 06 Pulse Oximetry Products and new products Essentially Unchanged therefrom (and the Next Generation Pulse Oximeters) would result in not calculating any
physiological parameter based on two or more alternative calculations for that parameter, or a representative indication or value for that parameter, from the same signal, and that proposed change is then implemented in such products (and the prior
products are no longer being made or sold). In the event of a dispute involving whether a proposed change would accomplish this result, Nellcor shall continue to pay the 13% royalty rate, plus the additional 2% for 2007, until such dispute is
resolved. For purposes of this Section 5.1, Masimo acknowledges that an ECG signal and an optical signal are not the same signal. For the purposes of this Section 5.1, Nellcor acknowledges that an optical signal is considered the same
signal regardless of the number of wavelengths detected. 

  

	 	5.2	For the 2006 advance royalty payment, if Nellcor’s Pulse Oximetry Revenues exceed $320,833,000 from February 1, 2006 through December 31, 2006, then Nellcor will pay
17% of the revenue over this amount by March 30, 2007. If Nellcor’s Pulse Oximetry Revenues are less than $320,833,000 for this same time period, then Nellcor will receive a credit of 17% of the revenue under this amount to be applied to
future royalty payments. Nellcor shall deliver to Masimo within 60 days of the end of each quarter, an accounting of Pulse Oximetry Revenue by product category. 

  

	 	5.3	Running royalties accruing on January 1, 2007 and thereafter shall be paid quarterly within 60 days of the end of each calendar quarter. An accounting of revenue by product
category shall be included with each payment. Late payments will accrue interest at 10% per annum. 

  

	 	5.4	On or after March 14, 2011, upon at least sixty (60) days written notice to Masimo, Nellcor may terminate on a prospective basis all protection or rights under
Section 4.1,(but Nellcor will retain the right to provide sensors and service for all previously sold products), and Nellcor will no longer be obligated to pay royalties under this section. Masimo maintains all rights to assert its patents
against Nellcor’s and/or its Affiliates’ pulse oximetry products that may be manufactured or sold after termination. All other provisions of this agreement remain effective. 

  

	 	5.5	Any dispute between the Parties arising pursuant to Section 5.1, if not resolved by the Parties after at least two weeks of good faith discussions 

  

 7 

	 	 	beginning upon one Party providing the other Party notice of the dispute, such discussions to include the most senior executive of Tyco Healthcare and Masimo, shall be resolved by
binding and non-appealable arbitration before a member of JAMS, applying CCP 1283.05, agreed to by the Parties (agreement not unreasonably withheld or delayed) with a final decision within two months of initiation of the arbitration proceeding.

  

	 	6	Audit Rights. Nellcor agrees to maintain records sufficient to verify the calculation of all Pulse Oximetry Revenue for a period of two (2) years from the end of the
calendar year in which the royalties are paid by Nellcor. In addition, Nellcor agrees to maintain records sufficient to verify the calculation of all Pulse Oximetry Revenue for calendar years 2004 and 2005 until December 31, 2007. Nellcor
agrees that Masimo, as set forth below, shall have the right to have the books and records of Nellcor inspected, at Masimo’s expense, to verify the accuracy of Nellcor’s accounting reports, but such right shall not extend beyond the period
of two (2) years from the end of the calendar year to be audited. Such inspection shall be carried out by an independent representative or accountant (non-employee) of Masimo agreed upon by Masimo and Nellcor (which agreement shall not be
unreasonably withheld) who shall be bound by a confidentiality agreement. Such representative or accountant shall report to Masimo and Nellcor whether the reports and payments made by Nellcor were correct or, if not correct, the amount of
discrepancy. Masimo agrees to hold all reports in confidence and to impose a similar requirement of confidentiality on any representative or accountant appointed hereunder. Masimo and any such representative or accountant shall not use any
information gained from such inspection for any purpose other than determining and enforcing Masimo’s rights under this Agreement. No more than one inspection shall be permitted during each calendar year. In the event that any such inspection
leads to a determination that Nellcor underpaid the royalties due to Masimo, Nellcor shall reimburse Masimo such underpayment within fifteen (15) days of the date of the report. Late payments and underpayments will accrue interest at
10% per annum. If royalties due Masimo were underpaid by ten percent (10%) or more, Nellcor shall also reimburse Masimo for the reasonable fees and expenses of the independent representative/accountant for the inspection. In the event of
an overpayment of Earned Royalties, then Masimo shall credit Nellcor such overpayment, and such credit will be reflected in Nellcor’s next due royalty payment(s). 

  

	 	7	Additional Covenants. Nellcor covenants that it will not claim that its products use Masimo’s technology. Masimo covenants that it will not claim that its
products use Nellcor’s technology. 

  

	 	8	No Challenge to Patents. Nellcor agrees that it will not directly, indirectly or in concert with others challenge the validity or enforceability of any of the Masimo Patents,
or interfere with the prosecution of any pending application claiming priority to the Masimo Patents, in any Patent Office or in any court (except in connection with litigation initiated, or threatened resulting in a Declaratory Judgment by Nellcor,
by Masimo), nor will Nellcor encourage, facilitate or participate with others to do so, 

  

 8 

	 	 	provided that this sentence does not prohibit Nellcor from participating in an interference instituted by the Patent Office. However, this Agreement in no way alters any collateral
estoppel and Res Judicata effects arising from the Patent Litigation. 

  

	 	9	Current Nellcor Products. Nellcor shall discontinue making, offering to sell, selling and shipping its 04, 05, and 05ci technology platform or any other devices that employ
an algorithm that is no more than colorably different from the 04, 05, and 05ci algorithms with regard to any one or more of the claims found to be infringed by Nellcor in the Patent Litigation, in any future products by January 31, 2006,
except for Latin America and Asia. For Latin America and Asia, the date will be the time reasonably required to complete regulatory approval proceedings in such regions, but no later than Dec. 1, 2006. Nellcor retains the right to service and
provide sensors for units shipped prior to these dates. Nothing contained in this Section 9 shall be deemed to prohibit Nellcor from making, offering to sell, selling and shipping O6 Pulse Oximetry Products or products Essentially Unchanged
therefrom. 

  

	 	10	Releases 

 10.1 Release By Masimo to Nellcor:
Except for the agreements between the Parties expressly made herein and the claims made in the Antitrust Litigation, Masimo, for itself and for each of its officers, directors, managers, board members, shareholders, employees, servants, agents,
successors in interest, predecessors, assigns, administrators, representatives, Affiliates, insurers and attorneys, hereby forever and completely releases and discharges: (a) Nellcor and each of its officers, directors, managers, board members,
shareholders, employees, servants, agents, successors in interest, predecessors, assigns, administrators, representatives, its Affiliates, insurers and attorneys of and from any and all claims, demands, causes of action, liabilities, and obligations
of every kind and nature, in law, equity or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed, for damages of any sort whatsoever, past, present and future, and for equitable relief, for any and all causes of action
existing as of the Effective Date of this Agreement, including but not limited to any such claim or demand arising out of or in any way related to the facts and claims alleged in the Patent Litigation; and (b) any customer, distributor, OEM,
licensee, supplier or purchasing organization with respect to the purchase, distribution, marketing, manufacturing or use of Nellcor’s 04, 05, and 05ci products (including oximetry software licensed to OEMs) obtained on or before
January 31, 2006 (but this shall not release any licensee or OEM with respect to inclusion of any oximetry software in any product manufactured or sold after January 31, 2006). 
 10.2 Release By Nellcor to Masimo: Except for the agreements between the Parties expressly made herein and the defenses made in the Antitrust
Litigation (other than the claims or defenses released and waived pursuant to Section 10.3 below), Nellcor, for itself and for each of its officers, directors, managers, board members, shareholders, employees, servants, agents, successors in
interest, predecessors, 
  

 9 

 assigns, administrators, representatives, Affiliates, insurers and attorneys, hereby forever and
completely releases and discharges: (a) Masimo and each of its officers, directors, managers, board members, shareholders, employees, servants, agents, successors in interest, predecessors, assigns, administrators, representatives, its
Affiliates, insurers and attorneys of and from any and all claims, demands, causes of action, liabilities, and obligations of every kind and nature, in law, equity or otherwise, known and unknown, suspected and unsuspected, disclosed and
undisclosed, for damages of any sort whatsoever, past, present and future, and for equitable relief, for any causes of action existing as of the Effective Date of this Agreement, including but not limited to any such claim or demand arising out of
or in any way related to the facts and claims alleged in the Patent Litigation; and (b) any customer, distributor, OEM, licensee, supplier or purchasing organization with respect to the purchase, distribution, marketing, manufacturing or use of
Masimo’s pulse oximetry and Rainbow SET products (including oximetry software licensed to OEMs) obtained on or before the date of this agreement. 
 10.3 Scope of Released Claims: The claims released in Sections 10.1 and 10.2 of this Agreement (the “Released Claims”) do not include any claims arising from or related to the Antitrust Litigation.
Thus, nothing in this Agreement shall be construed to release, modify, bar or limit any of the claims, rights or causes of action that Masimo has asserted against Nellcor or defenses asserted by Nellcor in the Antitrust Litigation, all of which are
expressly preserved, except that any and all claims or defenses asserted by Nellcor in the Antitrust Litigation related to Nellcor’s U.S. Patent No. 4,934,372 or any other claims or defenses related to alleged infringement by Masimo of
Nellcor patents are released and waived by virtue of this settlement. 
 10.4 Release Of Unknown Claims: It is understood and agreed by
each Party that solely with respect to the claims as described in Sections 10.1, 10.2 and 10.3 above, this is a full, complete and final release and each Party agrees that it shall apply as provided and excepted in this Agreement to all unknown,
unanticipated, unsuspected and undisclosed claims, demands, liabilities, actions or causes of action, in law, equity or otherwise, as well as those which are now known, anticipated, suspected or disclosed. Each Party has been fully advised by its
respective attorney of the contents of Section 1542 of the Civil Code of the State of California, and that section and the benefits thereof are hereby expressly waived. Section 1542 reads as follows: 
 “Section 1542. (General Release - Claims Extinguished.) A general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” 
 In addition, solely with respect to the claims released pursuant to Sections 10.1, 10.2 and 10.3, each Party will be deemed to relinquish, to the extent they are applicable, and to the full extent permitted by law,
the provisions, rights and benefits of any law, 
  

 10 

	 	 	or principle of common law, which is similar, comparable or equivalent to California Civil Code §1542. Each Party acknowledges that the Party may discover facts in addition to
or different to from those now known or believed to be true with respect to the subject matter of this release, but that it is the intention of the Party to fully, finally and forever settle and release any and all claims released hereby, known or
unknown, suspected or unsuspected, which now exist, or heretofore existed, and without regard to the subsequent discovery or existence of such additional or different facts. Each Party warrants that the Party has read and understands the aforesaid
Section 1542 and has had the opportunity to consult with and be advised by counsel regarding its meaning and effect and the Party voluntarily waives its provisions and any other provision or statute of like effect. 

 10.5 Each party represents and warrants that it has not assigned, sold, or otherwise transferred to any third party any claims or causes of action
against the other Party existing prior to the Effective Date. 
  

	 	11	Dismissal: Within 14 business days of receipt of the payment specified in Section 2 of this Agreement, Masimo and Nellcor shall execute and file in each case in the
Patent Litigation a stipulated dismissal with prejudice in the form attached as Exhibit B. Each Party shall simultaneously serve a copy of such dismissal on the other Party. As provided in Exhibit B, the United States District Court for the Central
District of California shall retain jurisdiction over the Parties and this Agreement for purposes of enforcing this Agreement. 

  

	 	12	Press Release: The Parties agree that simultaneously each will issue a press release regarding this settlement agreement in the form attached hereto as Exhibit A.

  

	 	13	Warrant Of Authority: Each Party warrants and represents that it is fully entitled and duly authorized to enter into and bind itself under this Agreement.

  

	 	14	Drafting: The Parties and their counsel have cooperated in the drafting and preparation of this Agreement. The Parties agree that any ambiguities in this Agreement shall not
be construed against any Party by virtue of that Party having drafted the language in question. 

  

	 	15	Reading Of Agreement: The Parties each declare that they have read this Agreement in its entirety and know and understand its contents, have had the opportunity to consult
with legal counsel of their choice, and that they each comprehend and agree to all of this Agreement’s terms, conditions and meanings freely, knowingly and willingly. It is understood by the Parties that, other than as set forth in this
Agreement, the facts in respect of which this Agreement is made may hereinafter prove to be other than or different from the facts now known by any of them or believed by any of them to be true. Each of the Parties expressly accepts and assumes the
risk of the facts, other than as set forth in this Agreement, proving to be different, and each of the Parties agrees that all terms of this Agreement will be in all respects effective and not subject to termination or rescission by virtue of any
such difference. 

  

 11 

	 	16	Term: The term of this Agreement will begin upon the Effective Date. Except as provided in Section 5.4, the covenants not to sue and Nellcor’s obligation to pay
running royalties to Masimo shall continue through the later of March 14, 2011, the latest expiration of the Masimo Patents (excluding the ‘850 patent if the conditions for royalty reduction pursuant to Section 5 have been met) or the
last availability of the covenanted products from Nellcor, its OEMs or Distributors. Notwithstanding any other provision in this Agreement, the covenant by Nellcor not to sue Masimo under Section 4.3 shall survive any termination of this
Agreement, and continue so long as the products covenanted are available. 

  

	 	17	Disclaimers: Nothing in this Agreement may be construed as 

 (a) a warranty, representation, or promise relating to the Masimo Patents, including, without limitation, the validity, enforceability, scope or suitability; or 
 (b) an obligation to bring or prosecute actions or suits against third parties, or defend actions or suits brought against the other
party, or indemnify the other party for any reason; or 
 (c) conferring upon either party the right to use in advertising,
publicity, or otherwise any trademark, service mark, or trade name of the other party; or 
 (d) conferring upon either
party, by implication or otherwise, any right or license under any patents or other industrial or intellectual property rights (including, without limitation, trademarks, service marks, trade names, and copyrights) except for the rights expressly
granted herein. 
  

	 	18	No Refund. Nellcor acknowledges that this Agreement is being entered into, for among other reasons, settlement of litigation and that all amounts paid by Nellcor (except any
advance royalty payments overpayment in accordance with Section 5.2) to Masimo are nonrefundable, even if the validity, scope, or enforceability of Masimo’s patents are subsequently challenged and such patents are deemed by a court of
competent jurisdiction to be held invalid, of narrower scope, or unenforceable. 

  

	 	19	Acceptance of Royalty: Acceptance of any royalty payment by Masimo shall not be deemed to be a waiver of any rights of Masimo, including the right to claim that products are
not within the covenant not to sue and infringe one or more patents of Masimo. In addition, all payments made to Masimo after any notice by Masimo that a product does not fall within the covenant not to sue may be accepted by Masimo and shall be
used as an offset for damages, if any, awarded to Masimo if such product is found to infringe one or more patents of Masimo. 

  

 12 

	 	20	Non-Reliance: The Parties each declare that in agreeing to and executing this Agreement, they do not rely and have not relied upon any representation or statement made by any
of the Parties or by any of the Parties’ officers, directors, managers, board members, shareholders, employees, servants, agents, successors in interest, predecessors, assigns, administrators, representatives, insurers, or attorneys with regard
to the subject matter, basis or effect of this Agreement or otherwise, other than those stated in this written Agreement. 

  

	 	21	Entire Agreement: This Agreement contains the entire agreement among the Parties and constitutes the complete, final and exclusive embodiment of their agreement with respect
to the subject matter hereof. The terms of this Agreement are contractual and not a mere recital. This Agreement may not be altered, modified or otherwise changed in any respect except by a writing duly executed by the Parties to be bound or their
authorized representatives. 

  

	 	22	Remedies For Breach: The Parties acknowledge that breach or default of this Agreement will result in irreparable harm to the non-breaching Party, that it would be
impracticable or extremely difficult to fix the amount of such harm, and that in the event of any breach or default of this Agreement, the non-breaching Party shall have all remedies provided by law and equity to enforce the Agreement, including
without limitation an award for damages, specific performance or injunctive relief, including specific performance as to Nellcor’s discontinuance of the 04, 05 and 05ci products. The prevailing Party in any action to enforce this Agreement, or
in any action arising out of any breach of this Agreement, shall be entitled to recover, in addition to any other relief awarded, court costs and reasonable attorney fees incurred in connection with any action to enforce this Agreement.

  

	 	23	Successors And Assigns: This Agreement, including without limitation all rights, obligations, and covenants, shall bind the heirs, personal representatives, successors and
assigns of each Party, and inure to the benefit of each Party, its successors and assigns, including without limitation any successor or assign as a result of bankruptcy. For purposes of the United States Bankruptcy code, the parties’ patents
and the covenants not to sue herein are intellectual property and intellectual property licenses as those terms are defined and used in Sections 101(35A) and 365(n) of the code, and each recipient of a covenant is entitled to the rights and
protections provided to a licensee of intellectual property by Section 365(n). 

  

	 	24	Titles: The titles of paragraphs herein are inserted solely for convenience and do not affect the construction of any provision of this Agreement. 

 

	 	25	Fees And Costs: Each Party shall be solely responsible for its own costs, expenses, and attorney’s fees, taxable or otherwise, incurred in or arising out of or in any
way related to the matters released herein, the Patent Litigation and this Agreement. 

  

	 	26	Severance: Except with respect to provisions involving a covenant between the Parties, should any provision of this Agreement be declared or determined by any

  

 13 

	 	 	court or tribunal of competent jurisdiction to be illegal, invalid, or unenforceable, the legality, validity, and enforceability of the remaining parts, terms, or provisions shall
not be affected thereby and said illegal, unenforceable or invalid part, term, or provision shall be deemed not to be part of this Agreement. In addition, in the event that the parties are in disagreement about the application of one or more
provisions of this agreement, that dispute shall not impact the operation of the other provisions of this Agreement. 

  

	 	27	Choice Of Law: This Agreement shall be governed by, and construed and enforced in accordance with the laws of the State of California, without regard to any conflict of law
principles that would result in the application of the laws of a different state. Jurisdiction and venue over any dispute arising out of or relating to this Agreement or the subject matter to which it relates shall lie exclusively with the United
States District Court for the Central District of California. The parties hereby irrevocably waive any present or future objections to such venue and irrevocably consent and submit unconditionally to this exclusive jurisdiction in California. The
Parties also hereby stipulate that any judgment arising out of this Agreement and issued by a court of competent jurisdiction in the State of California shall be given full faith and credit in all jurisdictions. 

  

	 	28	Review And Investigation Of Agreement: Each Party represents and warrants that the Party, or a responsible officer thereof, has read this Agreement and understands the
contents hereof. Each of the directors and/or officers executing this Agreement on behalf of their respective corporations is duly authorized to do so and thereby bind such respective corporation. Each Party represents and warrants that the Party
has made such investigation of the facts pertaining to the terms and provisions herein and this Agreement, and of all of the matters pertaining thereto, as the Party deems necessary. 

  

	 	29	Execution In Counterparts: This Agreement may be executed in counterparts, including telecopied counterparts, with the same effect as if all Parties have signed the same
document and each such executed counterpart shall be deemed to be an original instrument. All executed counterparts together shall constitute one and the same instrument. 

  

	 	30	Date Of Execution: The date of the last signature placed on this Agreement shall be known as the “date of execution” of this Agreement. 

  

	 	31	Confidentiality: The financial terms of this Agreement are confidential, except (i) as disclosed in the press release of Exhibit A, (ii) in connection with any
discussions by Masimo with any other third party relating to the possible granting of rights under any of its patents, (iii) to any third party that has an agreement to maintain the information confidential, and (iv) as required by law
(including filing the agreement in connection with any SEC filing). Exhibit D to this Agreement remains confidential per the terms set forth Section 4.3 

  

 14 

	 	32	Effective Date: The Effective Date of this Agreement is the day that Masimo receives the Settlement Payment of Section 2.1. 

  

 15 

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

  

									
	 	 	 	 	 	 	MASIMO CORPORATION
					
	Dated:	 	1-17-06	 		 	By:	 	 /s/ Joe Kiani

					
		 		 		 	Name:	 	Joe Kiani
					
		 		 		 	Title:	 	CEO
				
		 		 		 	MASIMO LABORATORIES
					
	Dated:	 	1-17-06	 		 	By:	 	 /s/ Joe Kiani

					
		 		 		 	Name:	 	Joe Kiani
					
		 		 		 	Title:	 	CEO
				
		 		 		 	TYCO HEALTHCARE GROUP LP
					
	Dated:	 	January 17, 2006	 		 	By:	 	 /s/ Richard J. Meelia

					
		 		 		 	Name:	 	Richard J. Meelia
					
		 		 		 	Title:	 	President
				
		 		 		 	MALLINCKRODT INC.
					
	Dated:	 	January 17, 2006	 		 	By:	 	 /s/ Richard J. Meelia

					
		 		 		 	Name:	 	Richard J. Meelia
					
		 		 		 	Title:	 	President
				
		 		 		 	NELLCOR PURITAN BENNETT INC.
					
	Dated:	 	January 17, 2006	 		 	By:	 	 /s/ Richard J. Meelia

					
		 		 		 	Name:	 	Richard J. Meelia
					
		 		 		 	Title:	 	President

  

 16 

											
		 		 		 		 	TYCO INTERNATIONAL LTD.
						
	Dated:	 	1/18/06	 		 		 	By:	 	 /s/ William B. Lytton

						
		 		 		 		 	Name:	 	William B. Lytton
						
		 		 		 		 	Title:	 	EVP & General Counsel
					
		 		 		 		 	TYCO INTERNATIONAL (US) INC.
						
	Dated:	 	January 17, 2006	 		 		 	By:	 	 /s/ Richard J. Meelia

						
		 		 		 		 	Name:	 	Richard J. Meelia
						
		 		 		 		 	Title:	 	Vice President

  

 17 

 Exhibit A 
 FORM OF PRESS RELEASE 
 Masimo and Nellcor Announce Settlement of Patent Litigation 

Masimo (Nellcor, a division of Tyco), today announced a settlement of all existing patent litigation with Nellcor, a division of Tyco (Masimo). Under the terms of the
settlement, all pending patent litigation will be dismissed, and Masimo will receive approximately $265 Million in past damages through January 31, 2006. After January 31, 2006, Nellcor will no longer ship its current 05 pulse oximetry
platform, but it will continue to provide service and sensors for previously sold products. Masimo has granted Nellcor the right to sell its new line of pulse oximetry products in exchange for an ongoing royalty. 
 {Masimo Boilerplate} 
 {Nellcor Boilerplate} 
  

 18 

 Exhibit B 
 Stipulated Dismissals 
  

			
	Craig N. Hentschel (CSB #66178)	 	 James F. Lesniak (CSB #115889)

	chentschel@dykema.com	 	 jfl@kmob.com

	DYKEMA GOSSETT PLLC	 	 Joseph R. Re (CSB #134479)

	333 South Grand Avenue	 	 irr@Kmob.com

	Suite 2100	 	 Karen Vogel Weil (CSB #145066)

	Los Angeles, CA 90071	 	 kvw@kmob .com

	Telephone: (213)457-1800	 	 Jon W. Gurka (CSB #187964)

	Facsimile: (213) 457-1850	 	 jwg@kmob.com

		 	 Joseph S. Cianfrani (CSB#196186)

	Robert C. Morgan (CSB #46348)	 	 jsc@kmob.com

	robert.morgan@ropesgray.com	 	 KNOBBE, MARTENS,

	ROPES & GRAY LLP	 	    OLSON & BEAR, LLP
	FISH & NEAVE IP GROUP	 	2040 Main Street, 14th Floor
	1251 Avenue of the Americas	 	Irvine, CA 92614
	New York, NY 10020	 	Telephone: (949) 760-0404
	Telephone: (212) 596-9000	 	 Facsimile: (949) 760-9502

	Facsimile: (212) 596-9090	 	
		
	Attorneys for	 	 Attorneys for

	Plaintiffs/Counterdefendants,	 	Defendant/Counterclaimant,
	Nellcor Puritan Bennett, Inc. and	 	 MASIMO CORPORATION

	Mallinckrodt Inc.	 	

 IN THE UNITED STATES DISTRICT COURT 
 FOR THE CENTRAL DISTRICT OF CALIFORNIA 
 WESTERN DIVISION 

					
	  	  		  	
	 NELLCOR PURITAN BENNETT, INC., a
	  	)	  	 Civil Action No.

	 Delaware corporation, and MALLINCKRODT,
	  	)	  	 CV                      MRP
(AJWx)

	 INC., a Delaware corporation,
	  	)	  	
	Plaintiffs,                            	  	)	  	STIPULATED DISMISSAL
	                     v.
	  	)	  	WITH PREJUDICE
	  
 MASIMO CORPORATION, a
Delaware
	  	)
)	  	
	 corporation,
	  	)	  	
	Defendant.                        	  	)	  	
	  	  	)	  	
	 AND RELATED COUNTERCLAIMS.
  
	  	)
)	  	
		  		  	Honorable Mariana R. Pfaelzer

  
  
  
  
  
  

 19 

 Pursuant to Rule 41(a)(l)(ii) of the Federal Rules of Civil Procedure, the parties, through their
respective counsel of record, do hereby agree and stipulate to dismiss this action, and the claims and counterclaims therein, with prejudice. The parties have entered into a settlement agreement which resolves each and every claim and counterclaim
made in this action, with each party agreeing to forgo any appeal and to pay its own costs and attorneys’ fees. The court shall retain jurisdiction to enforce the terms of the settlement agreement. 
  

											
		 		 		 		 	 Respectfully submitted,

					
		 		 		 		 	ROPES & GRAY, LLP
						
	Dated:	 	___________________	 		 		 	By:	 	  

		 		 		 		 		 	 Robert C. Morgan

					
		 		 		 		 	Attorneys for Plaintiff/Counterdefendants,
		 		 		 		 	MALLINCKRODT, INC. and NELLCOR
		 		 		 		 	PURITAN BENNET, INC.
					
		 		 		 		 	KNOBBE, MARTENS, OLSON
		 		 		 		 	& BEAR, LLP
						
	Dated:	 	___________________	 		 		 	By:	 	  

		 		 		 		 		 	James F. Lesniak
		 		 		 		 		 	Joseph R. Re
					
		 		 		 		 	Attorneys for Defendant/Counterclaimant,
		 		 		 		 	 MASIMO CORPORATION

						
		 	IT IS SO ORDERED.	 		 		 	 By:
	 	  

	 Dated:
	 	___________________	 		 		 		 	 Honorable Mariana R. Pfaelzer

  

 20 

 Exhibit C 
 06 Pulse Oximetry Products 
 OxiMax N600* 
 OxiMax N560 
 OxiMax N65 
 OxiMax N85 
 Nell-1 
 Nell-lGE 
 Nell-2A 
 Nell-2 
 Nell-3 
 Nell-3A 
 N-5600

 Licensed Software 
  

	*	Shown to and Reviewed by Masimo’s lawyers in November 2005 

  

 1 

 Exhibit D 
  

 1 

 AMENDMENT TO SETTLEMENT AGREEMENT 
 AND RELEASE OF CLAIMS 
 This Amendment to the January 17, 2006 Settlement
Agreement and Release of Claims (“the Agreement”) is made this      day of January 2006 between Masimo Corporation and Masimo Laboratories, Inc. (hereinafter “Masimo”), and Nellcor Puritan Bennett,
Inc., Mallinckrodt, Inc., Tyco Healthcare Group LP, Tyco International Ltd., and Tyco International (US) Inc. (collectively “Nellcor”) (each individually as a “Party” or collectively the “Parties”). 
 RECITALS 
 A. Whereas the Parties
entered into the Agreement on January 17, 2006. 
 B. Whereas the Parties wish to amend Section 5.2 of the Agreement to more
accurately reflect their agreement and intent. 
 AMENDMENT 
 Therefore in consideration of the mutual covenants and promises contained herein and in the Agreement, and other good and valuable consideration, receipt
and sufficiency are hereby acknowledged, the Parties agree that Section 5.2 of the Agreement is amended to read in its entirety as follows: 
 Section 5.2 (as amended) 
 5.2 For the 2006 advance royalty payment, if Nellcor’s Pulse Oximetry Revenues exceed
$320,833,000 from February 1, 2006 through December 31, 2006 related to the 13% running royalty in Section 5.1, then Nellcor will pay 13% of the revenue over this amount by March 30, 2007. If Nellcor’s Pulse Oximetry
Revenues are less than $320,833,000 for this same time period, then Nellcor will receive a credit of 13% of the revenue under this amount to be applied to future royalty payments. Additionally, if Nellcor’s Pulse Oximetry Revenues exceed
$350,000,000 for calendar year 2006 related to the additional 7% running royalty in Section 5.1, then Nellcor will pay 7% of the revenue over this amount by March 30, 2007. If Nellcor’s Pulse Oximetry Revenues are less than
$350,000,000 for this same time period, then Nellcor will receive a credit of 7% of the revenue under this amount to be applied to future royalty payments. Nellcor shall deliver to Masimo within 60 days of the end of each quarter, an accounting of
Pulse Oximetry Revenue by product category. 
  

 1 

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

  

									
	 	 	 	 	 	 	MASIMO CORPORATION
					
	Dated:	 	January 24, 2006	 		 	By:	 	 /s/ Joe Kiani
  

					
		 		 		 	Name:	 	 Joe Kiani
  

					
		 		 		 	Title:	 	 CEO
  

				
		 		 		 	MASIMO LABORATORIES
					
	Dated:	 	January 24, 2006	 		 	By:	 	 /s/ Joe Kiani
  

					
		 		 		 	Name:	 	 Joe Kiani
  

					
		 		 		 	Title:	 	 CEO
  

				
		 		 		 	TYCO HEALTHCARE GROUP LP
					
	Dated:	 	January 24, 2006	 		 	By:	 	 /s/ Richard J. Meelia
  

					
		 		 		 	Name:	 	 Richard J. Meelia
  

					
		 		 		 	Title:	 	 President
  

				
		 		 		 	MALLINCKRODT INC.
					
	Dated:	 	January 24, 2006	 		 	By:	 	 /s/ Richard J. Meelia
  

					
		 		 		 	Name:	 	 Richard J. Meelia
  

					
		 		 		 	Title:	 	 President
  

				
		 		 		 	NELLCOR PURITAN BENNETT INC.
					
	Dated:	 	January 24, 2006	 		 	By:	 	 /s/ Richard J. Meelia
  

					
		 		 		 	Name:	 	 Richard J. Meelia
  

					
		 		 		 	Title:	 	 President
  

											
		 		 		 		 	TYCO INTERNATIONAL LTD.
						
	Dated:	 	January 24, 2006	 		 		 	By:	 	 /s/ Willim B. Lytton

						
		 		 		 		 	Name:	 	Willim B. Lytton
						
		 		 		 		 	Title:	 	EVP & General counsel
					
		 		 		 		 	TYCO INTERNATIONAL (US) INC.
						
	Dated:	 	January 24, 2006	 		 		 	By:	 	 /s/ Richard J. Meelia

						
		 		 		 		 	Name:	 	Richard J. Meelia
						
		 		 		 		 	Title:	 	Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}]]