Document:

2007 Stock Incentive Plan

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

 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 PLAN DOCUMENT 
  

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

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

 (b) Effect on Other Plans. The Plan is not intended to affect and shall not affect any
stock options, equity-based compensation or other benefits that the Company or its Affiliates may have provided pursuant to any agreement, plan, or program that is independent of this Plan, including but not limited to the following plan: Masimo
Corporation 2004 Incentive Stock Option, Nonqualified Stock Option, and Restricted Stock Purchase Plan (the “2004 Plan”). Upon the effectiveness of this Plan, the Company shall not grant any future equity awards under the
2004 Plan. 
 2. Defined Terms 
 Terms in the Plan that begin with an initial capital letter have the defined meaning set forth in Appendix A, unless defined elsewhere in this Plan or the context of their use clearly indicates a
different meaning. 
 3. Shares Subject to the Plan 
 Subject to the provisions of Section 13: 
 (a) The maximum number of Shares that the Company may issue for all Awards is 1,500,000 Shares, as increased by the number of Shares permitted for issuance under the Plan pursuant to the terms of Section 3(b). 
 (b) For all Awards, the Shares issued pursuant to the Plan may be authorized but unissued Shares, or Shares that the Company has reacquired or otherwise
holds in treasury. Shares that are subject to an Award under this Plan, or to awards issued pursuant to the 2004 Plan, that for any reason expire, are forfeited, are cancelled, or become unexercisable, and Shares that are for any 

  

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

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

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

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

  

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

  

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

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

  

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

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

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

  

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

  

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

  

 - 11 - 

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

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

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

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

  

 - 15 - 

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

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

  

 - 17 - 

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

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

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

  

 - 18 - 

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

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

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

  

 - 20 - 

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

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

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

 - 21 - 

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

  

 - 22 - 

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

  

 - 23 - 

 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Appendix A: Definitions 
  

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

  

 Appendix-1 

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

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

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

 Appendix-2 

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

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

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

 Appendix-3 

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

 Appendix-4 

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

 Appendix-5 

 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Stock Option Award Agreement 
  

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

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

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

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

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

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

  

 - 1 - 

 Stock Option Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

  

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

  

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

			
		  	Expiration Date:	  	  ̈                 years after Grant Date; or

		
		  	  ̈        10 years after Grant Date

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

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

  

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

  

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

  

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

  

 - 2 - 

 Stock Option Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

  

 - 3 - 

 Stock Option Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

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

 - 4 - 

 Stock Option Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

  

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

  

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

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

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

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

 - 5 - 

 Stock Option Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

 - 6 - 

 Stock Option Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

  

 - 7 - 

 Stock Option Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

			
	MASIMO CORPORATION
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

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

					
		
	Name of Participant:	 	  

  

 - 8 - 

 EXHIBIT A 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Document 
  

  

 EXHIBIT B 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Prospectus 

 

  

 EXHIBIT C 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Form of Exercise of Stock Option
Award Agreement 
  

  

			
		  	Masimo Corporation
	Attention:	  	[Insert Address]

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

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

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

	
	Name:                                     
                                        
                                        
                                        
                                        
                                        
       
	
	Address:                                     
                                        
                                        
                                        
                                        
                                        
   
	
	Social Security
Number                                       
                                        
                                        
                                        
                                        
            

  

					
		 		 	Very truly yours,
			
	  
	 		 	  

	Date	 		 	Optionee

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

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

 EXHIBIT D 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Designation of Beneficiary

  

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

			
		
	Name of Beneficiary:	  	  

		
	Address:	  	  

		
		  	  

		
		  	  

		
	Social Security No.:	  	  

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

	 	 ̈	any Award that Recipient has received under the Plan. 

  

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

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

			
	 Date:
	 	  

		
	 By:
	 	  

		 	[Recipient Name]

  

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

 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 SAR Award Agreement 
  

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

			
	Name of Participant	  	  

		
	Date of Award	  	  

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

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

 - 1 - 

 SAR Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

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

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

 - 2 - 

 SAR Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

 - 3 - 

 SAR Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

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

  

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

  

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

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

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

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

  

 - 4 - 

 SAR Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

 - 5 - 

 SAR Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

 [Signature Page Follows] 
  

 - 6 - 

 SAR Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

			
	MASIMO CORPORATION
		
	By:	 	  

	Name:	 	  

	Its:	 	  

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

					
	Name of Participant:	 	  

  

 - 7 - 

 EXHIBIT A 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Document 
  

 EXHIBIT B 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Prospectus 

 

 EXHIBIT C 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 

 Form of Stock Appreciation Rights Exercise 
  

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

	
	 Name:                                     
                                        
                                        
                                        
                                        
                                        
       

	
	 Address:                                     
                                        
                                        
                                        
                                        
                                        
   

	
	
	 Social Security Number
:                                        
                                        
                                        
                                        
                                        
         

	

  

			
	                                      
                                       
                                        
           	 	                                      
                                        
                                        
           
	Date	 	SAR Holder

 EXHIBIT D 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Designation of Beneficiary

  

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

							
		 	Name of Beneficiary:	 	  
	 	
		 	Address:	 	  
	 	
		 		 	  
	 	
		 		 	  
	 	
		 	Social Security No.:	 	  
	 	

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

	 	 ̈	any Award that Recipient has received under the Plan. 

  

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

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

			
	Date:	 	  

	By:	 	  

		 	[Recipient Name]

  

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

 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Restricted Share Award Agreement 
  

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

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

  

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

  

 - 1 - 

 Restricted Share Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

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

  

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

  

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

  

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

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

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

  

 - 2 - 

 Restricted Share Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

  

 - 3 - 

 Restricted Share Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

 - 4 - 

 Restricted Share Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

  

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

  

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

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

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

  

 - 5 - 

 Restricted Share Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

 - 6 - 

 Restricted Share Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

 - 7 - 

 Restricted Share Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

			
	MASIMO CORPORATION
		
	By:	 	  

	Name:	 	  

	Its:	 	  

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

	Name of Participant:                                 
                              

  

 - 8 - 

 EXHIBIT A 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Document 
  

 EXHIBIT B 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Prospectus 

 

 EXHIBIT C 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Section 83(b) Election Form

  

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

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

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

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

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

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

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

 - 1 - 

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

			
	Dated:                                     ,
20    	  	  

		  	Taxpayer

  

 - 2 - 

 EXHIBIT D 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Designation of Beneficiary

  

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

							
		 	Name of Beneficiary:	 	  
	 	
		 	Address:	 	  
	 	
		 		 	  
	 	
		 		 	  
	 	
		 	Social Security No.:	 	  
	 	

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

	 	 ̈	any Award that Recipient has received under the Plan. 

  

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

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

			
	Date:	 	  

		
	By:	 	  

		 	[Recipient Name]

  

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

 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Restricted Share Unit Award Agreement 
  

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

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

  

 - 1 - 

 Restricted Share Unit Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

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

  

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

  

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

  

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

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

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

 - 2 - 

 Restricted Share Unit Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

  

 - 3 - 

 Restricted Share Unit Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

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

  

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

  

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

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

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

  

 - 4 - 

 Restricted Share Unit Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

 - 5 - 

 Restricted Share Unit Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

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

 Signature Page Follows 
  

 - 6 - 

 Restricted Share Unit Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

			
	MASIMO CORPORATION
		
	By:	 	  

	Name:	 	  

	Its:	 	  

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

					
	Name of Participant:	 	  

  

 - 7 - 

 EXHIBIT A 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Document 
  

 EXHIBIT B 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Prospectus 

 

 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Section 83(b) Election Form 
  

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

 EXHIBIT C 
 MASIMO CORPORATION 2 007 STOCK INCENTIVE PLAN 
  

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

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

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

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

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

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

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

 - 1 - 

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

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

			
	Dated:                          ,
20    .	  	  

		  	Taxpayer

  

 - 2 - 

 EXHIBIT D 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Designation of Beneficiary

  

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

					
	Name of Beneficiary:	 	  
	 	
	Address:	 	  
	 	
		 	  
	 	
		 	  
	 	
	Social Security No.:	 	  
	 	

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

	 	 ̈	any Award that Recipient has received under the Plan. 

  

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

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

			
	Date:	 	  

	By:	 	[Recipient Name]

  

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

 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Deferral Election Agreement for Deferred Share Units 
  

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

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

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

  

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

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

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

  

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

  

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

  

 - 1 - 

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

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

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

  

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

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

 - 2 - 

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

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

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

 - 3 - 

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

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

			
	MASIMO CORPORATION
		
	By:	 	  

	Name:	 	  

	Its:	 	  

	
	PARTICIPANT
		
	By:	 	  

			
	Name of Participant:	 	  

  

 - 4 - 

 EXHIBIT A 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Document 
  

  

 EXHIBIT B 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Prospectus 

 

  

 EXHIBIT C 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Distribution Election Agreement
regarding Deferred Share Units 
  

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

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

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

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

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

  

 - 1 - 

 Distribution Election Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

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

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

  

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

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

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

			
	PARTICIPANT
	
	  

	
	Printed
Name:                                       
                                    
	
	MASIMO CORPORATION
		
	By:	 	  

		
	Name:	 	  

		
	Its:	 	  

  

 - 2 - 

 ATTACHMENT 1 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 DESIGNATION OF BENEFICIARY

  

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

			
	Name of Beneficiary:	  	  

	Address:	  	  

		  	  

		  	  

	Social Security No.:	  	  

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

			
	Date:	 	  

		
	By:	 	  

		 	[Recipient Name]

  

	
	Sworn to before me this
	         day of                     ,
20    
	  

	Notary Public
	County of                                    
                                        
       
	State of                                    
                                        
            

 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Performance Unit and Performance Stock Award Agreement 
  

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

			
	Name of Participant	 	  

		
	Date of Award	 	  

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

 1 

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

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

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

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

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

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

		
	Qualification	  	  

		
	Performance Period for Further Vesting	  	  

		
	 Performance Measure for
 Determining Further
Vesting
	  	  

		
	Further Vesting	  	  

  

 2 

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

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

 3 

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

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

 4 

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

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

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

  

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

  

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

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

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

 5 

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

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

 6 

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

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

 7 

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

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

			
	MASIMO CORPORATION
		
	By:	 	  

	Name:	 	  

	Its:	 	  

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

	
	Name of Participant:
                                        
                      

  

 8 

 EXHIBIT A 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Document 
  

 EXHIBIT B 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Prospectus 

 

 EXHIBIT C 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Performance Measures to
Determine Qualification for Performance Unit 
  

 SCHEDULE              
  

									
	 Measure
	  	Threshold	  	Target	  	Maximum	  	Weight
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  
 Range of Award Amounts for
Use in Calculation 
  

					
	 Threshold Award Amount
	  	 Target Award Amount
	  	 Maximum Award Amount

		  		  	
		  		  	
		  		  	
		  		  	

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

 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Performance Measures to Determine Qualification for Performance Stock 
  

 SCHEDULE              
  

									
	 Measure
	  	Threshold	  	Target	  	Maximum	  	Weight
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

 Range of Award Values for Use in Calculation 
  

					
	 Threshold Award Value
	  	 Target Award Value
	  	 Maximum Award Amount

		  		  	

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

 EXHIBIT E 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Designation of Beneficiary

  

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

			
	Name of Beneficiary:	  	  

		
	Address:	  	  

		
		  	  

		
		  	  

		
	Social Security No.:	  	  

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

	 	 ̈	any Award that Recipient has received under the Plan. 

  

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

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

			
	Date:	 	  

		
	By:	 	  

		 	[Recipient Name]

  

	
	Sworn to before me this
	        day of                     ,
20    
	  

	Notary Public

			
	County of	 	  

			
	State ofAmended and Restated Cross-Licensing Agreement

 Exhibit 10.34 
 ***Text Omitted and Filed Separately 
 Confidential Treatment Requested 
 Under 17 C.F.R. §§ 200.80(b)(4) 
 and 230.406 
 AMENDED AND RESTATED 
 CROSS-LICENSING AGREEMENT 
 BETWEEN 
 MASIMO LABORATORIES 
 AND 
 MASIMO CORPORATION 
 EFFECTIVE
JANUARY 1, 2007 

 EXHIBITS 
  

			
	Exhibit A	  	MASIMO SET®
Definition
	Exhibit B	  	Trademarks, Legend, Logos
	Exhibit C	  	Price for Products
	Exhibit D	  	End-User License Agreement

 AMENDED AND RESTATED CROSS-LICENSING AGREEMENT 
 THIS AMENDED AND RESTATED CROSS-LICENSING AGREEMENT (the “Agreement”), effective as of January 1, 2007 (the “Effective Date”),
is an amendment and restatement of the CROSS-LICENSING AGREEMENT originally made and entered into as of the 2nd day of May, 1998 (as subsequently amended, the “Original Agreement”), by and between MASIMO LABORATORIES, a Delaware
corporation (“LABS”), and MASIMO CORPORATION, a Delaware corporation (“MASIMO”), with reference to the following: 
 R
E C I T A L S 
 A. MASIMO has developed a technology (“MASIMO Technology” as defined herein). MASIMO Technology incorporates
circuitry and software which, among other things, acquires and detects signals generated by red and infrared LEDs, and which is designed to extract arterial oxygen saturation and pulse rate values from such signals. 
 B. Pursuant to the Original Agreement, as previously amended, LABS has an exclusive license to MASIMO Technology for certain applications. 
 C. Pursuant to the Original Agreement, as previously amended, LABS has a license to make, use and sell devices which incorporate MASIMO Technology for
vital signs monitoring for distribution throughout the world. 
 D. Pursuant to the Original Agreement, as previously amended, MASIMO has an
option to license to certain technology developed by LABS for use in blood glucose monitoring and total hemoglobin/hematocrit applications, and MASIMO desires to have an option to license certain technology developed by LABS for use in certain other
Non-Vital Signs Monitoring in the professional caregiver market. 
 E. MASIMO has acquired substantial Know-How (as defined below) in
extracting signals from signals contaminated by noise. 
 F. MASIMO has acquired and expects to continue to acquire a reputation for
excellence, and its trademark has and will continue to acquire valuable goodwill. 
 G. Labs has acquired substantial Know-How (as defined
below) in extracting signals from interfering signals. 
 H. Labs has acquired and expects to acquire a reputation for excellence.

 I. MASIMO and LABS entered into three amendments of the Original Agreement relating to increasing funding to LABS and extending the period
for execution of the option to license certain technology developed by LABS. 
 J. MASIMO and LABS entered into a Fourth Amendment to the
Original Agreement to enable MASIMO to have its option to blood glucose monitoring and total hemoglobin/hematocrit applications be separately exercisable and to obtain a license to carboxyhemoglobin and methemoglobin, which Fourth Amendment
superseded all earlier amendments to the Agreement. 
  

 3 

 K. The Parties desire to enter into this Agreement to amend and restate the Original Agreement and the
terms of the Fourth Amendment, to include additional terms, and to have this Agreement supersede the Original Agreement and the Fourth Amendment. 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants set forth in the Original Agreement and hereinafter set forth, LABS and MASIMO hereby agree as follows: 
 1. DEFINITIONS. As used in this Agreement, the following terms, whether used in the singular or the plural shall have the following meaning:

 1.1. Accessory means cables or any other accessories manufactured by a Party for use with any of the Products.

 1.2. 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, a Party 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). 
 1.3. Average Selling
Price means the total amount, in dollars (based upon the first sale to arms-length customers), for a device, sensor, accessory or other product divided by the number of devices, sensors, accessories or other products sold during the relevant
period, or quarterly if not otherwise stated, on a product-by-product basis. 
 1.4. Change in Control means, with
respect to a Party, the occurrence of any of the following: (i) the direct or indirect sale, transfer, conveyance or other disposition (including by merger, consolidation, operation of law or otherwise), in one or a series of related
transactions, of all or substantially all of the properties or assets of such Party to a non-Affiliate third party; (ii) any non-Affiliate third party becomes the ultimate beneficial owner, directly or indirectly, of 50% or more of the voting
power of the voting stock of such Party; (iii) Joe E. Kiani is not the CEO of either company; or (iv) such Party consolidates with, or merges with or into, any third party, or any third party consolidates with, or merges with or into such
entity. 
 1.5. Distributor means, as applicable, (i) a party that markets LABS Licensed Devices or Stand Alone
Licensed Devices to End-Users on behalf of LABS, (ii) a customer of LABS that buys LABS Licensed Devices or Stand Alone Licensed Devices from LABS, private labels such devices, and markets such LABS Licensed Devices or Stand Alone Licensed
Devices to End-Users, (iii) a party that markets MASIMO Licensed Devices to End-Users on behalf of MASIMO, or (iv) a customer of MASIMO that buys MASIMO Licensed Devices from MASIMO, private labels such devices, and markets such MASIMO
Licensed Devices to End-Users. 
 1.6. Enabled means that a parameter is actually activated such that it measures the
parameter when an appropriate sensor is attached. 
 1.7. End User is, as applicable, a direct user of LABS Licensed
Devices, Stand Alone Licensed Devices or MASIMO Licensed Devices. 
  

 4 

 1.8. Improvement means any invention, adaptation, modification or change, except
for those that are purely aesthetic as trade dress. 
 1.9. LABS Combo Device means a LABS’ device that
incorporates Masimo Technology for monitoring Non-Vital Signs Parameters and Vital Signs Parameters. 
 1.10. LABS
Confidential Information means confidential information and proprietary material of LABS, including, but not limited to, (i) the LABS Technology, (ii) any Improvements, patents, copyrights, trade secrets, and any other intellectual
property and proprietary rights owned by LABS in accordance with Article 11, and (iii) the following types of information and other information of a similar nature: ideas, concepts, materials, techniques, models, data, designs, documentation,
flow charts, budgets, projections, forecasts, marketing and development plans, communication protocols and testing procedures. 
 1.11. LABS Licensed Device means a LABS’ device (finished product, chipset or board containing circuitry or software, software, or any combination) that incorporates Masimo Technology for monitoring Non-Vital Signs Parameters or
a LABS Combo Device. 
 1.12. LABS Market means any product market in which the product is intended to be used by a
patient or pharmacist rather than by a professional medical caregiver, regardless of the particular location of the sale. For example, the LABS Market includes sales to doctors, hospitals, EMS professionals or otherwise, provided the product is
intended to be recommended, or resold, for use by the patient or pharmacist. 
 1.13. LABS Technology means any of the
following Rainbow Technology rights (i) owned by LABS as of the Effective Date, or (ii) developed or conceived by LABS during the Term and owned by LABS in accordance with Article 11: Technical information, inventions, concepts, products,
components, trade secrets, know-how, techniques, designs, processes, communications protocols, software, Improvements, whether patentable or not, patents, patent applications, including any patents issuing thereon and any and all divisions,
continuations and continuations-in-part thereof, and any and all reissues and reexaminations of any such patents, copyrights, copyright registrations and applications, and all other intellectual property rights. LABS Technology excludes (i) any
technology owned by a third party and licensed to LABS, and (ii) the MASIMO Technology. Notwithstanding Section 11.3, Labs Technology also includes the glucose measurement technology acquired from Argose. 
 1.14. Current Licensed Device means a device that incorporates Rainbow Technology for measurement of carbon monoxide (HbCO),
methemoglobin (HbMet), total hemoglobin and/or fractional arterial oxygen saturation (whether Enabled or not). A Current Licensed Device includes boards or software for integration into devices of third parties, such as original equipment
manufacturers. 
 1.15. MASIMO Board means a circuit board or chip set manufactured or distributed by or for MASIMO,
that incorporates MASIMO Technology, and/or Rainbow Technology and/or Optioned Technology. 
 1.16. MASIMO Confidential
Information means confidential information and proprietary material of MASIMO, including, but not limited to, (i) the MASIMO Technology, 

  

 5 

 
(ii) any Improvements, patents, copyrights, trade secrets, and any other intellectual property and proprietary rights owned by MASIMO in accordance with
Article 11, (iii) the MASIMO Software, and (iv) the following types of information and other information of a similar nature: ideas, concepts, materials, techniques, models, data, designs, documentation, flow charts, budgets, projections,
forecasts, marketing and development plans, communication protocols, and testing procedures. 
 1.17. MASIMO Licensed
Device means a Current Licensed Device or an Optioned Technology Device. 
 1.18. MASIMO Licensed Trademarks means
the MASIMO SET, Rainbow, and other Rainbow related product designation and word mark(s) set forth on Exhibit B.1. 
 1.19.
MASIMO Market means any product market where the product is intended to be used by a professional caregiver, including but not limited to hospital caregivers, surgicenter caregivers, paramedic vehicles caregivers, doctor’s offices
caregivers, EMS facilities caregivers and vehicles where emergency medical services are provided. 
 1.20. MASIMO Sensor means a sensor manufactured or distributed by or for MASIMO for use in SpO2 Measurement and/or Non-Vital Signs Monitoring. 
 1.21. MASIMO SET has the meaning set forth
in Exhibit A. 
 1.22. MASIMO Software means any and all computer/instrument software and/or firmware owned by MASIMO
that is used or useful in connection with MASIMO Technology for use in Vital Signs Monitoring or Non-Vital Signs Monitoring, including any and all Improvements thereto, all in source code and object code format, and all written documentation
relating to such software. 
 1.23. MASIMO Technology means any of the following MASIMO SET or Masimo Sensor rights ,
as initially licensed to LABS on May 2, 1998, as the same has been Improved by MASIMO since that time, (i) owned by MASIMO as of the Effective Date, or (ii) developed or , conceived by MASIMO during the Term and owned by MASIMO in
accordance with Article 11: technical information, inventions, concepts, products, components, trade secrets, know-how, techniques, designs, processes, communications protocols, whether patentable or not, patent applications, copyright applications,
patents, copyrights and all other intellectual property. MASIMO Technology excludes (i) any technology owned by a third party and licensed to MASIMO, and (ii) the Rainbow Technology. 
 1.24. Net Selling Price of a Product means the total sales revenue for such Product (including any amounts for rental or leasing of
such product), excluding charges for returns, rebates, credits, post-sale adjustments, including adjustments for doubtful accounts, outbound prepaid or allowed transportation charges, sales taxes, tariffs or duties directly imposed with reference to
particular sales or similar items. 
 1.25. Non-Vital Signs Monitoring means non-invasive measurement Non-Vital-Signs
Parameters using Masimo Technology. 
  

 6 

 1.26. Non-Vital-Signs Parameter means any noninvasive or minimally invasive
measurement of body fluid constituents other than Vital Signs, including, but not limited to, blood glucose, fractional arterial oxygen saturation (defined as the correction to SpO2 by eliminating one or more dysfunctional hemoglobins (i.e., CO,
methemoglobin and/or [...***...]), total hemoglobin, hematocrit, carbon monoxide (HbCO), methemoglobin (HbMet), [...***...], bilirubin, [...***...]. 
 1.27. Optioned Technology means LABS Technology developed using MASIMO Technology and Improvements owned by Labs for use in
Non-Vital Signs Monitoring other than monitoring of carbon monoxide (HbCO), methemoglobin (HbMet), total hemoglobin and/or fractional arterial oxygen saturation. 
 1.28. Optioned Technology Device means a device that incorporates Rainbow Technology for measurement of any Non-Vital Signs
Parameter (whether Enabled or not) for which MASIMO has exercised one or more of the options under Section 4.1. An Optioned Technology Device includes boards or software for integration into devices of third parties, such as original equipment
manufacturers (OEM). 
 1.29. Parameter means a Vital Signs Parameter or a Non-Vital-Signs Parameter, as applicable.

 1.30. Party means LABS or MASIMO; Parties means LABS and MASIMO. 
 1.31. Products means (i) in the case of MASIMO, MASIMO Boards, MASIMO Sensors and Accessories, and (ii) in the case of
LABS, LABS Licensed Devices and Stand Alone Licensed Devices. 
 1.32. Rainbow Sensor means a sensor incorporating
Rainbow Technology for measuring Non-Vital-Signs Parameters and possibly one or more Vital Signs using Masimo Technology. 
 1.33. Rainbow Technology means LABS technology for Non-Vital Signs Monitoring using Masimo Technology and at least 6 wavelengths. 
 1.34. SpO2 Measurement means noninvasive measurement of arterial oxygen saturation (accounting for at
least Hb and HbO2), fractional saturation, plethysmographic waveforms, and/or pulse rate from neonate, pediatric and
adult subjects. 
 1.35. Stand Alone Licensed Devices means LABS’ completed patient monitor devices that
are not capable of Non-Vital Signs Monitoring but that incorporate a MASIMO Board as the exclusive method to obtain SpO2 Measurement. 
 1.36. Standard Cost, or Cost, means the cost for direct materials and labor, overhead and administration, in accordance with generally accepted accounting principles. 
 1.37. Vital Signs Monitoring means measurement and/or monitoring of Vital Signs Parameters. 
 *Confidential Treatment Requested 
  

 7 

 1.38. Vital Signs
Parameters means SpO2, peripheral venous oxygen saturation, mixed venous oxygen saturation, fetal oximetry,
Sudden Infant Death Syndrome (“SIDS”), ECG, blood pressure (non-invasive blood pressure, invasive blood pressure and continuous non-invasive blood pressure), temperature, respiration rate, CO2, SvO2, pulse rate,
respiration rate, cardiac output, EEG, perfusion index (“PI”), depth of anesthesia, cerebral oximetry, tissue oximetry and/or EMG, and associated features derived from these parameters, such as 3-D Alarms, Pleth Variability Index
(“PVI”), and other features. 
 2. LICENSE GRANTS 
 2.1. Licenses Granted to LABS. 
 2.1.1. MASIMO grants to LABS an exclusive (including of MASIMO, subject to Section 2.2.1), royalty-bearing, perpetual, worldwide license (i) to use the MASIMO Technology to develop Non-Vital Signs Monitoring
and to develop LABS Licensed Devices, (ii) to make, have made, use, offer to sell and sell LABS Licensed Devices , including on an OEM basis, (iii) to sublicense MASIMO Technology for the development of or for use in Non-Vital Signs
Monitoring and LABS Licensed Devices, and (iv) to sublicense the use, manufacture and sale of LABS Licensed Devices. 
 2.1.2. MASIMO further grants to LABS an exclusive, perpetual, worldwide license (i) to copy, modify, and make derivative works of the MASIMO Software for incorporation into LABS Licensed Devices, (ii) to distribute the MASIMO
Software in conjunction with a transfer of a LABS Licensed Device to End-Users and Distributors, and (iii) to sublicense the right to copy and modify the MASIMO Software for incorporation into LABS Licensed Devices. 
 2.1.3. MASIMO further grants to LABS the non-exclusive right to incorporate MASIMO Boards into LABS Licensed Devices and Stand Alone
Licensed Devices and to make, have made, use and sell the same (including, but not limited to, in a private label contract which does not include LABS name, but which includes MASIMO’s name as provided herein), in the case of Stand Alone
Licensed Devices, outside the MASIMO Market. LABS shall also have the right to sublicense to one Affiliate only its rights under this Section, provided that, (i) LABS shall procure that such Affiliate complies with the terms and conditions of
this Agreement, and (ii) LABS and such Affiliate shall be jointly and severally liable for any non-performance or breach by such Affiliate. 
 2.1.4. Masimo further grants the option, for distribution inside the Labs Market, to Labs to license or obtain any and all additional Vital Signs parameters that MASIMO develops during the course of this Agreement on
terms no less favorable than any other third party non-exclusive licensee. In the event that Masimo does not have a license with any other third party, then Masimo agrees to negotiate for a license for such parameters with LABS in good faith. This
option does not apply if Masimo licenses the additional Vital Sign Parameter on an exclusive basis to a third party prior to Labs exercising this option. 
 2.1.5. LABS agrees to distribute and to have its sublicensees distribute (i) Stand Alone Licensed Devices and (ii) LABS Licensed Devices in conjunction with and by providing the end-user with an end-user
agreement materially equivalent to the “License Agreement” that is attached hereto as Exhibit D. 
  

 8 

 2.1.6. LABS’ license under this Agreement does not include the right to sell MASIMO
Boards or MASIMO Sensors on an OEM basis except in connection with an OEM sale for integration in LABS Licensed Devices, or in connection with a sublicense of Stand Alone Licensed Devices. 
 2.2. Licenses to MASIMO. 
 2.2.1. License Back to Masimo. LABS grants back to MASIMO a non-exclusive royalty-bearing, worldwide license (i) to use the MASIMO Technology to develop, Non-Vital Signs Monitoring, (ii) to make, have
made, use, offer to sell and sell products incorporating any such developed Non Vital Signs Monitoring for distribution solely outside the LABS Market. Labs consents to any agreement entered by Masimo prior to the date of this Agreement, relating to
Non-Vital Signs products. 
 2.2.2. License to HbCO, HbMet, total hemoglobin and fractional arterial oxygen saturation.
LABS grants to MASIMO a license to make, have made, use, offer to sell and sell Current Licensed Devices only (i) for distribution outside the LABS Market, and (ii) to LABS. Such license is exclusive (on a parameter-by-parameter basis) in
the MASIMO Market until the later of (A) 20 years from the Effective Date or (B) expiration of the last to expire of any LABS patents covering the applicable parameter. Such license shall include the right to sell Current Licensed Devices
on an OEM basis. 
 2.2.3. License to Rainbow Sensors. LABS further grants to MASIMO a license to make, have made, use,
offer to sell and sell Rainbow Sensors only (i) for distribution outside the LABS Market, and (ii) for sale to LABS. Such license is exclusive in the MASIMO Market until the later of (A) 20 years from the Effective Date, or
(B) expiration of the last to expire of any LABS patents covering the Rainbow Sensors. 
 2.3. Trademarks, Legends
and Logos. 
 2.3.1. No Implied License. Each of LABS and MASIMO agrees to include the following legend on the
exterior of or in manuals or other documentation provided with products that contain technology licensed from the other Party which it sells directly. 
 NO IMPLIED LICENSE 
 Possession or purchase of this device does not convey any express or implied license to
use the device with replacement parts which would, alone, or in combination with this device, fall within the scope of one or more of the patents relating to this device. 
 A sample label is shown in Exhibit B. LABS agrees to use reasonable commercial efforts to cause all sublicensees to include this or a similar legend on devices containing MASIMO Technology or in the use manuals or
other documentation shipped with such instruments. 
 2.3.2. Trademark License Grant by MASIMO. MASIMO hereby grants to
LABS a nonexclusive license, including the right to grant sublicenses, to use the MASIMO Licensed Trademarks in connection with the Labs Licensed Devices and Stand Alone Licensed Devices, and in connection with the design, manufacture, distribution,
advertisement, promotion, sale and offering for sale of such devices; provided, 

  

 9 

 
however, that such trademarks are used to indicate the source of incorporated technology and do not indicate that MASIMO is the manufacturer of any such
devices. 
 2.3.3. Quality Control—Devices. LABS agrees that any products bearing any Masimo Licensed Trademark
shall be of a high standard of quality, so as to protect and enhance the goodwill pertaining to the Licensed Trademarks. Masimo has the right to inspect the manufacturing and distribution points of LABS for products bearing Masimo Licensed
Trademarks, at any reasonable time, to ensure the ongoing quality of any product bearing that Party’s Licensed Trademarks. Should Masimo at any time determine that the quality of any product bearing a Masimo Licensed Trademark does not adhere
to these quality standards, Masimo will provide written detailed notice to LABS. LABS shall have three months from such notice to bring the quality of such product up to standard or to cease any further use of the Masimo Licensed Trademark in
connection with the promotion or sale of such device or product until MASIMO has indicated that it is satisfied that the deficiencies in quality of the particular product has been corrected. For any sublicenses granted under the Masimo Licensed
Trademarks, LABS agrees to use reasonable commercial efforts to coordinate quality control consistent with this Section over the manufacture, advertisement, promotion and sale of any products offered by the sublicensee using the MASIMO Licensed
Trademarks. 
 2.3.4. LABS Trademark Marking. LABS agrees that it shall use the MASIMO SET product designation set
forth in Exhibit B (i) on all LABS Combo Devices that are marketed directly by LABS, and (ii) all Stand Alone Licensed Devices that are marketed directly by LABS, in each case, on a front panel site associated with the Vital Signs
Monitoring. Prior to any such use, LABS shall obtain consent from MASIMO as to the use and location of the Licensed Trademark, which consent shall not be unreasonably withheld. LABS shall use reasonable efforts to cause all sublicensees and
Distributors to include such MASIMO Product Designation in accordance with this provision. Labs may, but is not required, to mark products that include Non-Vital Signs Monitoring with any of the Rainbow associated logos (Rainbow, Rainbow SET, SpCO,
...), at LABS discretion. 
 2.3.5. Labs Name. LABS agrees to change its name to eliminate the term
“Masimo” at such time that LABS begins selling any product. 
 2.3.6. Advertising. All advertising directly
by LABS for LABS Combo Devices or Stand Alone Licensed Devices shall include one or more of the MASIMO SET Licensed Trademarks. LABS agrees to use reasonable efforts to have sublicensees and Distributors comply with the provisions of this section.

 2.3.7. No Other Use. Neither Party shall use the trademarks of the other Party in direct combination with other
trade names, trademarks or symbols of such Party or its sublicensees or Distributors. 
 2.3.8. No Damaging Use. Each
Party agrees not to use the trademarks of the other Party in any way which might endanger the owners’ rights in or ownership of the trademarks. 
 2.3.9. Trademark Expenses. The expense of obtaining and maintaining Masimo Licensed Trademarks registrations shall be borne by MASIMO. 
  

 10 

 2.3.10. Trademark Rights on Change in Control. In the event of a Change in Control
of MASIMO, if the acquiring or resulting entity or party permanently ceases to use MASIMO as a company name and as trademark, all rights to the MASIMO trademark shall be and are hereby assigned to LABS including all goodwill associated with the
trademark. For the avoidance of doubt, the purpose of this paragraph is to assign the MASIMO mark if MASIMO is no longer using it, therefore so long as the acquiring or resulting entity or party is using MASIMO as either a company name or as a
trademark, no assignment under this Section shall apply. 
 2.3.11. Patent Marking. Each Party agrees to mark products
sold under license from the other Party in accordance with the Statutes of the United States relating to marking of patented articles. Each Party agrees to use reasonable efforts to cause its sublicensees and Distributors to comply with this
provision. 
 2.3.12. Maintenance of Licensed Patents. Each Party is responsible for determining whether, where, and on
what to pursue patent protection for its technology. Either Party (the “Licensor Party”) may discontinue prosecution or maintenance, abandon, or dedicate to the public any of patents and patent applications included in the MASIMO
Technology or LABS Technology, as applicable, owned by such Party and in its sole discretion, provided, however, that the Licensor Party shall take reasonable efforts to provide the other Party (the “Licensee Party”) with at least 15 days
notice prior to abandonment or other dedication to the public of any patent or patent application in the United States or Western Europe. Upon such notice, the Licensee Party shall have 7 days to notify the Licensor Party, in its sole discretion,
that such licensed patent should not be abandoned or otherwise dedicated to the public. In such event, the Licensee Party shall be responsible for payment of any costs of maintaining such licensed patents or controlling prosecution at its expense of
any licensed patent applications. While there is a single CEO, no written notice to the other company is required. In addition, failure to provide the notice in this paragraph is not a material breach of this Agreement. 
 3. RESEARCH AND DEVELOPMENT/LICENSE FEES 
 3.1. Previous Research & Development. The Parties acknowledge that MASIMO has funded research and development conducted by LABS related to, among other things, methemoglobin, fractional arterial oxygen
saturation, blood glucose, and/or total hemoglobin measurement in a cumulative amount of seven -million -five -hundred -thousand dollars ($7,500,000), and that in consideration of such payment, MASIMO has been granted the options in this Agreement.

 3.2. License Fees for Rainbow Technology. MASIMO agrees to pay a license fee of five million dollars ($5,000,000)
for the license to carbon monoxide (HbCO), methemoglobin (HbMet), and fractional arterial oxygen saturation granted and two million five hundred thousand dollars ($2,500,000) for the license to total hemoglobin, under Section 2.2.2. MASIMO
acknowledges that it has exercised its option to license total hemoglobin and has licensed fractional arterial oxygen saturation. LABS agrees to use such license fee primarily for the development of Non-Vital Signs Monitoring applications. Such
license fee shall be payable in monthly payments, as requested by LABS in accordance with the following sentence. LABS will request payment of the license fee in an amount corresponding to such development costs no more often than monthly, and
MASIMO shall pay LABS the license fee in an amount corresponding to such 

  

 11 

 
development costs within 30 days following receipt of such request for reimbursement. At LABS’ option, some or all of the license fee can be paid in the
form of contracted development work done by MASIMO on LABS’ behalf pursuant to written request by LABS. MASIMO understands that LABS has no proof of concept for any Non-Vital-Signs Parameters other than those delivered as of this date and makes
no representation that proof of concept will ever be achieved for any other Parameter. Except as provided in Section 4.3, upon payment of the license fee described above, no further monthly payment shall be due under this Section.
Notwithstanding the above or anything else contained herein to the contrary, LABS may request that any licensing, royalty, option or other fees due to LABS be paid on a quarterly basis. As of December 31, 2006, MASIMO has paid approximately
$3,600,000 of the $7,500,000 described above. 
 4. MASIMO OPTION 
 4.1. Option Grant. LABS grants to Masimo an option to license Optioned Technology as further set forth in this Article 4 (the
“Option”). 
 4.2. Optioned Technology. The “Option” shall be exercisable separately for each
parameter included in the Optioned Technology within 180 days of delivery of written notice by LABS to MASIMO stating that proof of feasibility has been achieved separately for such parameter, which notice will include written and reasonably support
of such feasibility. The option period shall be extended if MASIMO provides written notice disputing proof of feasibility and during the time period thereafter, during which the parties will work in good faith to agree on whether or not proof of
feasibility has been achieved. If the parties can not agree within 90 days, the matter will be submitted to an independent three-member panel (the “Panel”). Each Party shall select one member of the Panel, and the two members shall select
a third member. No Panel member may be an employee, officer, director, or owner of any shares of either Party, or related to any employee, officer, director or owner of any shares of either Party, or otherwise affiliated with either Party such that
such affiliation would tend to influence such person’s ability to independently evaluate this issue. The determination of the Panel shall be binding upon the Parties. 
 4.3. License Terms. Upon exercise of the Option, LABS hereby grants to MASIMO a license to make, have made, use, offer to sell and
sell applicable Optioned Technology Devices for distribution only (i) outside the Labs Market and (ii) to Labs. The foregoing license shall be sublicensable to any MASIMO Affiliate. Such license shall be exclusive in the Masimo Market
until the later of (i) 20 years from the exercise date, or (ii) expiration of the last to expire of any LABS patents covering the Optioned Technology at issue. Such license shall include the right to sell applicable Optioned Technology
Devices on an OEM basis. However, Masimo does not have the right to provide Licensed Devices or Optioned Technology to any OEM for sale into Labs Market without Labs’ approval, which will be in Labs sole discretion. 
 4.4. Exercise of Option. In order to exercise the Option for each Optioned Technology, MASIMO agrees to pay LABS for each
application for which the option is exercised as follows (it being understood that the option rights to total hemoglobin have previously been exercised): 
 (a) $2,500,000 for Glucose 
  

 12 

 (b) $500,000 for any other Non-Vital Sign Parameter. However, if a Non-Vital Sign Parameter is merely a
combination of already licensed Non-Vital-Sign Parameters, such will not require this additional exercise fee. 
 Such payments will be made
in monthly installments in accordance with and subject to Section 3.2. 
 4.5. Certain Exceptions. The Parties
understand that the exclusivity in the licenses to MASIMO under this Article will in no way preclude LABS from conducting testing and studies in the MASIMO or LABS Market relating to the Optioned Technology and making inadvertent sales to the MASIMO
market. Notwithstanding the foregoing, except as expressly provided herein, neither LABS nor MASIMO shall knowingly sell any Products in the other Party’s Market. 
 4.6. Payment on Change in Control. Upon any Change in Control of MASIMO, the option for glucose shall be automatically exercised.
Upon such Change in Control, MASIMO agrees to pay LABS the license fee for glucose immediately. 
 4.7. Termination of
Exclusivity. 
 4.7.1. Reasonable Efforts. Subject to Section 4.7.2, the exclusivity of Section 2.2 and
4.2 and 4.3 shall terminate, as applicable, if MASIMO is not exercising commercially reasonable efforts to develop or marketing a device incorporating the applicable Optioned Technology or Rainbow Technology on a parameter-by-parameter basis within
one (1) year of the grant of any such license. 
 4.7.2. Notification and Cure. LABS must first notify MASIMO of
its intent to cancel the exclusivity under Section 4.7.1. MASIMO shall have ninety (90) days to cure its failure to take commercially reasonable efforts to develop or market such devices. If MASIMO has not cured its failure within such
period, LABS may terminate the exclusivity on written notice to MASIMO of such termination. In the event that LABS and MASIMO disagree as to whether MASIMO is reasonably marketing such devices, the Party shall submit the disagreement to an
independent three-member panel (the “Panel”). Each Party shall select one member of the Panel, and the two members shall select a third member. No Panel member may be an employee, officer, director, or owner of any shares of either Party,
or related to any employee, officer, director or owner of any shares of either Party, or otherwise affiliated with either Party such that such affiliation would tend to influence such person’s ability to independently evaluate this issue. The
determination of the Panel shall be binding upon the Parties, and the cost of the proceedings are born by the losing party. 
 4.8. Delivery of MASIMO Systems to LABS. MASIMO agrees to make available to LABS upon request, one (1) sample of each MASIMO Licensed Device. LABS will have the right to test this device and to approve the functionality of LABS
Technology in such device. Such approval will not be unreasonably withheld. After such testing, the device may remain with LABS, at LABS’ option, for further technical assistance and as a demonstration unit as long as this Agreement is in
effect. 
  

 13 

 5. ROYALTIES 
 5.1. Royalties to MASIMO For Licensed Devices. Without limiting Section 5.2, the Parties acknowledge that no royalties shall
be payable to MASIMO for the distribution or sale of LABS Licensed Devices or Stand Alone Licensed Devices. 
 5.2.
Royalties to MASIMO for Integrated Consumable. LABS shall pay to MASIMO royalties in the amount of ten percent (10%) of SpO2 sensor or accessory value of LABS’ Average Selling Price of sensors or accessories that measure Vital Signs
Parameters for use in LABS Licensed Devices or Stand Alone Devices. The SpO2 sensor value of sensors that are capable of Non-Vital Signs Monitoring, shall be LABS average selling price for its sales of comparable sensors that only measure SpO2. At
the later of (A) 20 years from the Effective Date or (B) expiration of the last to expire of any Masimo patents covering Masimo Technology, the royalty shall be reduced by 2%. 
 5.3. [Intentionally Omitted.] 
 5.4. Royalty on Rainbow Technology. MASIMO will pay to LABS royalties in the amount of ten percent (10%) of the Rainbow Royalty Base (as defined below) for MASIMO Licensed Devices, and sensors and
accessories for measuring Non-Vital-Signs Parameters in MASIMO Licensed Devices in accordance with the following. 
 (a) Except for the
handheld products, the “Rainbow Royalty Base” will include that portion of (i) a MASIMO Licensed Device Enabled to measure a Non-Vital-Signs Parameter, and (ii) sensors and accessories for measuring Non-Vital-Signs Parameters in
MASIMO Licensed Devices. In other words, if a Masimo Licensed Device, sensor or accessory is Enabled to measure more than Vital Signs Parameters, then the difference between that standard product (the one that measures only Vital Signs Parameters)
and the price charged for a similar type product that can also measure the Non-Vital Signs Parameter/s is the amount that will be multiplied by the 10% royalty. The differential is calculated base on the ASP on a region by region and product by
product basis. 
 (b) For handheld products, such as Rad-57, the entire price of the product is multiplied by the 10% royalty. 
 (c) For multiparameter devices (i.e., a device that uses more than one sensor at a time), the Royalty Base will be (i) the Net Selling Price of the
device, times (ii) the number of Non-Vital-Signs Parameter that the device is Enabled to measure, divided by (iii) the total number of Parameters that the device is Enabled to measure (excluding insignificant parameters such as
temperature, PI, PVI, and Pulse Rate). 
 (d) Hospital Contracts. MASIMO will pay a 10% royalty on the fraction of all revenue from the
contract signed after January 1, 2009 for the placement of Masimo Licensed Devices (for a committed sensor contract) in relation to the fraction of Enabled rainbow devices compared Masimo Licensed Devices with only Vital Signs Parameters
Enabled as follows: 
 (10%)(Total revenue invoiced under contract on running basis)(# Masimo Licensed Devices on average with Non-Vital Signs
Parameters Enabled. 
  

 14 

 (# Masimo Licensed Devices on average
with Non-Vital Signs Parameters enabled + # Masimo Licensed Devices on average with only Vital Signs Parameters enabled). 
 (e) Non-Vital
Signs Parameter upgrades and sensors sold separately or in addition by Masimo shall be considered a separate revenue source for which a 10% royalty shall apply. Royalties shall not be paid up front but shall be due after payments are made under the
contract, on a quarterly basis, 30 days after each quarter end. 
 (f) At the later of (A) 20 years from the Effective Date or
(B) expiration of the last to expire of any LABS patents covering the applicable parameter, the royalty rate shall reduce by 2%. 
 (g)
Notwithstanding the foregoing, beginning on a Change in Control, the royalty due to LABS from MASIMO on a particular product will not be less than the following minimum amount: 
 $0 per completed MASIMO Licensed Device 
 $0
on OEM Boards 
 $2 per disposable sensor capable of CO and/or MET 
 $3 per disposable sensor that includes hemoglobin capability 
 $25 per reusable sensor capable of CO and/or MET 
 $50 per reusable sensor that includes hemoglobin
capability 
 $10 per cable if it permits a Non-Vital Sign Parameter 
 $50 per Non-Vital Signs Parameter to OEM for each Enabled parameter, $100 to end users for each parameter when Enabled 
 Royalties are payable within 30 days of the close of each quarter. 
 5.5. Minimum Royalties. MASIMO agrees to the aggregated minimum yearly royalties specified below (whether based on actual sales or
in make-up payments by MASIMO) for the license to Rainbow Technology and/or the license back for Masimo Technology for use in Non-Vital Signs Monitoring developed by LABS or by MASIMO. Such royalties shall begin upon the first commercial sale of any
MASIMO Licensed Device. Subsequent year payments are due within thirty (30) days after the end of each year. Failure to pay the minimum royalties by January 1, 2015 shall be a breach of this Agreement, subject to the notice and cure
provisions herein, and if such cure is not provided, shall thereafter automatically convert MASIMO’s license to a non-exclusive license as the exclusive remedy. After January 1, 2015, failure by MASIMO to pay minimum royalties shall be
considered a material breach of this Agreement. The minimum royalties shall be an advance on that year’s running royalty obligations, but 

  

 15 

 
shall not carry forward from year to year. While the CEO of Labs and Masimo are the same, the Minimum Royalties are payable to Labs as needed by Labs, with
any amounts not paid in a given year carried forward. Minimum royalties are eliminated after the license becomes non-exclusive by the terms of this Agreement. 
  

							
	2007	  	2008	  	2009	  	2010 and beyond
	$3.15 M	  	$3.5 M	  	$4 M	  	$5M

 5.6. Notwithstanding Section 5.5, on a Change in Control of MASIMO, the
acquiring entity shall pay the minimum royalties in accordance with the tables below instead of the table in Section 5.5 (with no maximum ceiling for aggregated Non-Vital-Signs Parameters). Minimum royalties are eliminated after the license
becomes non-exclusive by the terms of this Agreement. 
 Aggregated Minimum Royalty for CO, Met, Fractional O2, Hb and/or Glucose

  

							
	2007	  	2008	  	2009	  	2010 and beyond
	$5 M	  	$7 M	  	$10 M	  	$15M

 Additional Minimum Royalty Per Rainbow Parameter beyond CO, Met, Fractional O2,
Hb and Glucose 
  

									
	Year 1*	  	Year 2	  	Year 3	  	Year 4	  	Year 5 & Beyond
	$75,000	  	$250,000	  	$500,000	  	$1 M	  	$2M

	*	Year 1 refers to the first year of commercial release of such parameter. 

 5.7. Royalties on Other Markets. LABS will pay to MASIMO a royalty of 10% on each product that includes Vital Signs Monitoring that is sold outside of both the LABS Market and the MASIMO Market, unless MASIMO
licenses a third party the right to market outside of both the MASIMO Market and LABS Market, at which time the royalty is reduced to 3%. Similarly, MASIMO will pay LABS a royalty of 10% on each product that includes Non-Vital Signs Monitoring that
is sold outside of both the LABS Market and the 

  

 16 

 
MASIMO Market, unless LABS licenses a third party the right to market outside of both the MASIMO Market and LABS Market, at which time the royalty is reduced
to 3%. 
 5.8. Quarterly Accounting. Each Party shall provide the other Party with a quarterly accounting of total
Product shipments upon which a royalty is payable to the other Party, along with an accounting of the Net Selling Price for such products, if applicable. 
 5.9. Audit Rights. Each Party shall have the right to verify, at the requesting Party’s expense, and not more frequently than once per year and upon not less than ten (10) business days prior written
notice to the other Party, the accuracy of the accounting reports provided by the other Party hereunder, through inspection of the other Party’s pertinent records and books of accounts maintained in the ordinary course of business. Such audit
shall be conducted by a certified public accountant (the “CPA”) chosen by the requesting Party in its reasonable discretion, and which CPA is reasonably acceptable to the Party being audited. The requesting Party shall pay all costs,
expenses and fees of the CPA unless the audited Party has understated royalties or other payments owing to the requesting Party by more than five percent (5%) during the period audited, in which event the CPA’s costs, fees and expenses
shall be paid by the audited Party. 
 6. LICENSE FOR OTHER USES 
 6.1. MASIMO Technology. In the event LABS desires to use MASIMO Technology to develop any application not included within Vital
Signs Monitoring and Non-Vital Signs Monitoring, LABS is non-exclusively licensed to use MASIMO Technology to develop such application. All Improvements in connection with the foregoing made during the period that the CEOs of LABS and MASIMO are the
same, shall be owned by MASIMO. All Improvements in connection with the foregoing made during the period that the CEOs of LABS and MASIMO are different, shall be owned by the Party that made such Improvements. 
 6.2. LABS Technology. In the event MASIMO desires to use LABS Technology to develop any application not included within Vital Signs
Monitoring and Non-Vital Signs Monitoring, MASIMO is non-exclusively licensed to use LABS Technology to develop such application. All Improvements in connection with the foregoing made during the period that the CEOs of LABS and MASIMO are the same,
shall be owned by LABS. All Improvements in connection with the foregoing made during the period that the CEOs of LABS and MASIMO are different, shall be owned by the Party that made such Improvements. 
 7. PURCHASE AND SALE OF PRODUCTS 
 7.1. Products Available for Purchase. The provisions of this Article 7 shall apply to each Party to the extent such Party (the “Supplying Party”) is supplying Products to the other Party (the
“Ordering Party”). Each Supplying Party will sell the Products listed in Exhibit C to the Ordering Party in accordance with this Article 7. Upon mutual agreement of the Parties, the Parties shall amend Exhibit C to include any additional
Products available for supply by either Party to the other Party under this Agreement, including applicable pricing, minimum order quantities, and any other provisions applicable to the supply of such Product. 
  

 17 

 7.2. Purchase of Products. The purchase and sale of Products between the parties
shall be made by means of purchase orders placed by one Party or its designee to the other Party. Purchase orders issued before termination of this Agreement calling for delivery in ninety (90) days or less are non-cancelable. Purchase orders
calling for delivery in more than ninety (90) days shall be alterable and cancelable by the Ordering Party until ninety (90) days prior to the shipment date, after which such purchase orders become binding. 
 7.3. Minimum Order Quantities. The minimum quantity of Products that may be purchased on a purchase order for the Products listed
on Exhibit C as of the Effective Date is 50 units of a cable-part number, reusable sensor or MASIMO Board, and 500 units of disposable sensors. 
 7.4. Price. The Supplying Party’s transfer price for the Products
delivered to the Ordering Party in accordance with the terms of this Agreement shall be as set forth on Exhibit C. All prices are F.O.B. the Supplying Party’s manufacturing facility or distribution point in the United States. The transfer price
for SpO2 Sensors and Accessories includes packaging and labeling complying with MASIMO standard packaging guidelines
provided to LABS from time-to-time. The transfer price does not include custom packaging or labeling. If custom labeling is desired and feasible as determined by the Supplying Party, all costs associated with such labeling will be paid by the
Ordering Party. Payment by the Ordering Party to the Supplying Party shall be made thirty (30) days following receipt of an invoice by Ordering Party. 
 7.5. Currency Basis. Prices for the sale of Products hereunder shall be in United States dollars. 
 7.6. Taxes and Levies. All payments for Products under this Article 7 are exclusive of taxes and each Party shall be responsible for paying all taxes relating to products marketed by that Party (except taxes
based upon the other Party’s income), including but not limited to all sales, use, personal property, customs, duties, assessments, levies, and other government impositions of any nature. 
 7.7. Transportation. The method of transportation and carrier selected for Products purchased by a Party shall be as specified by
such Party in its purchase orders. Unless otherwise agreed, all transportation charges for Products, including insurance, levies, and taxes, shall be paid by the Ordering Party. 
 7.8. Packaging. The Supplying Party shall package the Products for shipment. Each shipment shall include a packing list containing:
(i) purchase order number; (ii) model number of the Products; (iii) quantity; (iv) serial number or lot code of shipped Products; and (v) certificates of compliance for the applicable quality assurance test performed for the
Products being shipped. 
 7.9. Delivery. The Supplying Party shall use reasonable commercial efforts to fill all
purchase orders for Products by delivery dates and in the quantity specified by the other Party in its purchase orders. Notwithstanding the above, the Supplying Party shall have no obligation to deliver Products in less than ninety (90) days
from confirmation. If a purchase order calls for more than a 25% increase as compared to the previous three (3) month average of Products ordered, on a Product-by-Product basis, the Supplying Party shall use reasonable commercial efforts to
deliver an amount at least equal to the 

  

 18 

 
previous three (3) month average within ninety (90) days, and shall use reasonable commercial efforts to ship the remainder within one hundred
twenty (120) days of receipt of the purchase order. 
 7.10. Emergency Orders. Nothing herein shall prevent a
Party from placing emergency orders for Products for delivery in less than ninety (90) days. The Supplying Party agrees to use reasonable efforts to deliver such Products on the requested schedule. 
 8. COMPATIBILITY 
 8.1. MASIMO Probes. LABS agrees that it will not modify Masimo’s
SpO2 Sensors to be used with other than the MASIMO Boards, other boards designed by MASIMO for Vital Signs
Monitoring or boards made by Labs under the licenses herein. LABS will purchase Sensors for Vital Signs Monitoring applications exclusively from MASIMO unless the measurements for Vital Signs Monitoring applications and Non-Vital Signs Monitoring
are best integrated in one sensor, as determined by LABS in its sole discretion. In such case, LABS may design, develop and manufacture (including manufacturing according to any MASIMO design) integrated sensors and pay MASIMO a royalty of ten
percent (10%) of LABS’ Vital Signs Monitoring Portion of the Net Selling Price of integrated sensors; provided, however, that LABS undertakes all regulatory, service and warranty obligations with respect to such sensors and that such
sensors pass MASIMO’s validation and verification process such that the full capability of MASIMO SET is obtained. LABS will pay for such validation and verification services at MASIMO’s standard rates then in effect for third party OEM
products. MASIMO SET will be enabled for these SpO2 Sensors or other sensors which include MASIMO Technology for
Vital Signs Monitoring. The Vital Signs Monitoring Portion is the average selling price for the similar product that measures only Vital Signs Parameters. The differential is calculated base on the ASP on a region by region and product by product
basis. 
 8.2. Engineering Support. During the period that MASIMO is funding LABS’ research and development, or
there has been no Change of Control, MASIMO shall provide reasonable engineering support to LABS for the integration of MASIMO SET into LABS Licensed Devices and Stand Alone Licensed Devices and for the manufacturing of any Masimo Products as
permitted under this Agreement, by assisting Labs with engineering and technical resources, sharing lab equipment, providing prototyping parts and components, legal and financial services, delivering a copy of all MASIMO Software for MASIMO
Technology and sufficient information and documentation (such as circuit diagrams, source code and specifications) to permit LABS to reasonably make, use and modify such MASIMO Software and to reasonably make, use and modify the MASIMO Technology.
After a Change in Control, MASIMO shall continue to deliver, as reasonably requested by LABS, sufficient information and documentation to permit LABS to reasonably use MASIMO Technology in accordance with the terms of this Agreement. After a Change
of Control, if Labs asks MASIMO for more than what MASIMO believes in its sole discretion is reasonable engineering assistance, MASIMO may charge LABS for those services at its actual costs for such support. To the extent necessary, engineering
support will apply in reverse with respect to any LABS Technology licensed to MASIMO on a pari passu basis. 
  

 19 

 9. INSPECTION AND ACCEPTANCE 
 9.1. Inspection/QA. Each Supplying Party shall provide and maintain an inspection procedure and quality assurance program for its
Products and its production processes. Complete records of all inspection and quality assurance work done by a Supplying Party shall be made available to the Ordering Party upon its request at reasonable times during the term of this Agreement.

 9.2. Product Defects and Returns. 
 9.2.1. Return Authorization. Any of the Products or lots of Products
(“Lot”) which materially fail to meet the specifications set forth in Exhibit C or otherwise applicable to such Products may be rejected by the Ordering Party and returned to the Supplying Party for replacement. Prior to returning any
Products to the Supplying Party, the Ordering Party shall notify the Supplying Party by facsimile that the Ordering Party has rejected the Products, inclusive of the reason or basis of such rejection. Within five (5) working days of the receipt
of the notification, the Supplying Party will issue a “Return to Vendor” (“RTV”) number to the
Ordering Party by facsimile, which RTV number will be the Ordering Party’s authorization to return the Products. 
 9.2.2. Product Replacement. Subject to Section 9.2.1, Products which do not conform to the applicable specifications shall be returned by the Ordering Party to the Supplying Party freight collect and insured for full replacement
value. Within twenty (20) days after the date of receipt of the nonconforming Products, replacement Product will be shipped to the Supplying Party at the Supplying Party’s expense. Should the Supplying Party fail to replace rejected
Products by shipping conforming Products within thirty (30) days of its receipt of the nonconforming Products, the Ordering Party shall have the option to cancel the purchase of such Products without cost or liability and receive, at the
Ordering Party’s option, a credit or rebate if payment has been made. The Ordering Party shall pay freight charges, insurance and other customary charges for transportation for improperly rejected Products. 
 9.2.3. Costs. All costs to replace including transportation with respect to the defective Products shall be the sole responsibility
of the Supplying Party. 
 9.2.4. Unauthorized Correction. If the Ordering Party attempts to correct deficiencies to
the Products purchased under this Agreement without prior written authorization from the Supplying Party, then the Supplying Party shall have no further obligations with respect to such Products. 
 9.3. Nonconforming Acceptance. The Ordering Party may choose to accept Products which fail to conform in a minor aspect to the
specifications established by this Agreement without prejudice to its right to reject nonconforming items in the future. If the Ordering Party so chooses, the Ordering Party will notify the Supplying Party of its intent to accept nonconforming
items. However, the Supplying Party accepts no responsibility for nonconforming items accepted by the Ordering Party. 
 10.
CONFIDENTIALITY 
 10.1. Confidentiality. Each Party shall maintain in confidence all Confidential Information of
the other Party received in the course of performance under this 

  

 20 

 
Agreement, and shall not disclose such Confidential Information to any third party. In maintaining the confidentiality of Confidential Information of the
other Party, each Party shall exercise the same degree of care that it exercises with its own confidential information, and in no event less than a reasonable degree of care. Each Party shall ensure that each of its officers, directors, employees,
subcontractors, consultants, representatives and agents holds in confidence and makes no use of the Confidential Information of the other Party for any purpose other than those permitted under this Agreement or required by law. 
 10.2. Exceptions. Neither Party’s obligations under this confidentiality provision shall apply to information that:

  

	 	a.	prior to the transmittal was of general public knowledge; 

  

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

  

	 	c.	is made public by the Party claiming confidentiality; 

  

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

  

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

  

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

 11. PROPRIETARY RIGHTS 
 11.1. MASIMO Technology. MASIMO retains all right, title, and interest in the MASIMO Technology, including, without limitation, all
patents, copyrights, trade secrets, and any other intellectual property and proprietary rights. Nothing in this Agreement should be construed as a sale of the MASIMO Technology or any copy of the MASIMO Software to LABS. 
 11.2. LABS Technology. LABS retains all right, title, and interest in the LABS Technology, including, without limitation, all
patents, copyrights, trade secrets, and any other intellectual property and proprietary rights. Nothing in this Agreement should be considered as a sale of the Labs Technology or any copy of the LABS Software to MASIMO. 
  

 21 

 11.3. Development for Non-Vital Signs Monitoring. Any development using or
Improvement to proprietary MASIMO Technology or LABS Technology made by LABS or by MASIMO that relates to Non-Vital Signs Monitoring, and any new technology acquired by LABS during the term of this Agreement shall be the sole property of LABS, and
LABS has the right to apply for copyrights, patents (including utility and design patents), or other protection for intellectual property rights anywhere in the world under its own name and at its own expense. Without limiting Section 11.1,
MASIMO hereby assigns to LABS all right, title, and interest in the foregoing. Any acquisition of products or technology by MASIMO for Non-Vital Signs Monitoring or Vital-Signs Monitoring or Improvements thereto by MASIMO, before or after the date
hereof, is not assigned to LABS and is exclusively retained by MASIMO, except for the assets of Argose, which are to be assigned to Labs. 
 11.4. Improvements for Vital Signs Monitoring. Any development using or Improvement to proprietary MASIMO Technology or Labs Technology made by MASIMO or LABS that relates to Vital Signs Monitoring, and any new
technology acquired by MASIMO during the term of this Agreement, shall be the sole property of MASIMO, and MASIMO has the right to apply for copyrights, patents (Including utility and design patents), or other protection for intellectual property
rights anywhere in the world under its own name and its own expense. Without limiting Section 11.2, LABS hereby assigns to MASIMO all right, title, and interest in the foregoing. Any acquisition of products or technology by LABS for Non-Vital
Signs Monitoring or Vital-Signs Monitoring or Improvements thereto by LABS, before or after the date hereof, is not assigned to MASIMO and is exclusively retained by LABS, unless LABS uses Masimo Technology to improve such acquired products or
technology to provide a Non-Vital Signs Parameter, in which case such Non-Vital Signs Parameter shall be included within the license or option and other terms provided to MASIMO herein. 
 11.5. Further Action. LABS and MASIMO agree to take such further action and execute such further documents as reasonably necessary
to establish ownership as set forth in Section 6.2, and Sections 11.1 through 11.6. 
 12. INDEMNIFICATION 
 12.1. MASIMO indemnification. MASIMO will defend, indemnify and hold LABS harmless against any and all liability, loss, damages,
costs or expenses which LABS may hereafter incur, as a result of any injury, illness or death of any person which is caused by any Product or device manufactured by MASIMO and purchased by LABS from MASIMO, to the extent that such injury, illness or
death results directly from such products manufactured or technology provided by MASIMO. 
 12.2. LABS indemnification.
LABS 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 Product or device
manufactured by LABS and purchased by MASIMO from LABS, to the extent that such injury, illness or death results directly from such products manufactured by LABS. For purposes of clarity, Labs shall have no liability of any kind for technology it
has only licensed to Masimo as compared to provided in a product sold to Masimo. 
  

 22 

 12.3. Infringement for Vital Signs Monitoring. MASIMO shall settle or defend, at
MASIMO’s own expense, and pay any direct damage, costs or fines resulting from all proceedings, threats of proceedings or claims against LABS or its customers for infringement or alleged infringement by the Vital Signs Monitoring application(s)
in LABS Licensed Devices or Stand Alone Licensed Devices, to the extent relating to the Masimo Technology licensed to LABS in this Agreement, of intellectual property rights of third parties. LABS agrees to notify MASIMO promptly in writing of any
such proceeding, and to give MASIMO necessary assistance where practical, to modify the applicable Product to make it noninfringing or, where practical, to obtain licenses under such intellectual property rights. MASIMO makes no representation that
Masimo Technology is not limited by any patent for Non-Vital Sign Measurements. 
 12.4. Tender of Defense The
indemnifying party shall have no liability or responsibility of any kind to the indemnified party under this Section unless the Party seeking indemnity shall have notified the other Party within a reasonable time of such claims, and the indemnifying
Party shall have been given an adequate opportunity to defend, including complete control of the defense and any settlement. Should the Party seeking indemnity desire to have its own counsel participate in any such action, the cost of such counsel
shall be exclusively Party seeking indemnity. 
 12.5. Notwithstanding the foregoing, the Party that owns intellectual
property licensed to the other Party under this Agreement shall have the first right to enforce such intellectual property, even in the market of the other Party, including the right to prosecute and settle all intellectual property claims. If the
licensor is unable to or unwilling to enforce intellectual property that relates to the other Parties market, as defined in this Agreement, the licensee will then have the right to enforce any intellectual property licensed exclusively in the
licensee’s market. The non-enforcing party will have no right to any recoveries from such enforcement. Notwithstanding the above, LABS shall not have the right to enforce U.S. Patent No. 6,263,222. 
 12.6. Patent Validity. During and after the term of this Agreement, each Party agrees not to challenge the validity of any of the
patents of the other Party to which this Agreement relates. 
 12.7. LIMITATION OF LIABILITY. EXCEPT FOR THE EXPRESS
WARRANTIES SET FORTH ABOVE, MASIMO AND LABS GRANT NO WARRANTIES, EITHER EXPRESS OR IMPLIED, ON THE PRODUCTS OR TECHNOLOGY PROVIDED TO EACH OTHER, AND EACH SPECIFICALLY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE. THE STATED EXPRESS WARRANTY IS IN LIEU OF ALL LIABILITIES OR OBLIGATIONS OF MASIMO OR LABS FOR DAMAGES, INCLUDING, BUT NOT LIMITED TO, CONSEQUENTIAL DAMAGES OCCURRING OUT OF OR IN CONJUNCTION WITH THE USE OR PERFORMANCE OF THE PRODUCTS OR
TECHNOLOGY. IN NO EVENT SHALL MASIMO OR LABS BE RESPONSIBLE FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL DAMAGES OR LOSS OF PROFIT SUFFERED BY THE OTHER PARTY IN CONNECTION WITH THIS AGREEMENT. 
 13. REGULATORY COMPLIANCE 
 13.1. LABS U.S. Regulatory Approvals. LABS shall be solely responsible for identifying and obtaining, at its sole cost and expense, all FDA and United States safety agency approvals and any other agency or regulatory approvals which
are required for the development, manufacture or sale of LABS Licensed Devices and Stand Alone 

  

 23 

 
Licensed Devices. MASIMO will reasonably cooperate with LABS by providing at no charge to LABS any MASIMO data in its possession that is reasonably required
to obtain the regulatory approvals, including but not limited to 510(k) application materials submitted by MASIMO for its own products that incorporate MASIMO Technology. Disclosure to LABS of any such data shall be subject to the confidentiality
provisions of Section 10 (“CONFIDENTIALITY”). 
 13.2. Other LABS Regulatory Approvals. LABS shall be
solely responsible, at its sole cost and expense, (i) for identifying and obtaining any necessary approvals or certifications by any non-U.S. governmental, safety or regulatory entity, including testing or other procedures, for the sale by LABS
of LABS Licensed Devices and Stand Alone Licensed Devices, (ii) for identifying and complying with any safety precautions, safety markings, labels or consumer notices required for LABS Licensed Devices in any country other then the United
States, and (iii) for assessing the appropriateness of the LABS Licensed Devices for any particular Customer application. MASIMO will cooperate with LABS by providing any data in its possession that is reasonably required to obtain such
approvals or certifications. Disclosure to LABS of any such data to any third party shall be subject to the confidentiality provisions of Section 10. 
 13.3. MASIMO U.S. Regulatory Approvals. MASIMO shall be solely responsible for identifying and obtaining, at its sole cost and expense, all FDA and United States safety agency approvals and any other agency or
regulatory approvals which are required for the development, manufacture or sale of Products by MASIMO in the MASIMO Market. LABS will reasonably cooperate with MASIMO by providing at no charge to MASIMO any LABS data in its possession that is
reasonably required to obtain the regulatory approvals, including but not limited to 510(k) application materials submitted by LABS for its own products that incorporate LABS Technology for Products in the MASIMO Market. Disclosure to MASIMO of any
such data shall be subject to the confidentiality provisions of Section 10. 
 13.4. Other MASIMO Regulatory
Approvals. MASIMO shall be solely responsible, at its sole cost and expense, (i) for identifying and obtaining any necessary approvals or certifications by any non-U.S. governmental, safety or regulatory entity, including testing or other
procedures, for the sale by MASIMO of MASIMO Licensed Devices, (ii) for identifying and complying with any safety precautions, safety markings, labels or consumer notices required for MASIMO Licensed Devices in any country other then the United
States, and (iii) for assessing the appropriateness of the MASIMO Licensed Devices for any particular Customer application. LABS will cooperate with MASIMO by providing any data in its possession that is reasonably required to obtain such
approvals or certifications. Disclosure to MASIMO of any such data to any third party shall be subject to the confidentiality provisions of Section 10. 
 13.5. Export Controls. Regardless of any disclosure to one Party by the other Party of an ultimate destination of the product
obtained from the one Party, the other Party shall not transfer or re-export, whether directly or indirectly, any software or hardware containing the technology of the other Party, the related documentation, or other related proprietary information
to anyone outside the U.S. as to which export may be in violation of the United States export laws or regulations without first obtaining the appropriate license from the U.S. Department of Commerce and/or any agency or department of the U.S.
government, as required. 
  

 24 

 14. INCIDENT REPORTING 
 14.1. By LABS. LABS represents that in addition to being responsible for all regulatory approvals for its Products, that should any
material incidents of failure of any LABS Licensed Devices which include Vital Signs Monitoring or Stand Alone Licensed Devices or injury related to such Products be reported to LABS, that it will take good faith efforts to promptly (i.e., within
two (2) business days) notify MASIMO of any such performance problems or deficiencies relating to Vital Signs Monitoring licensed from Masimo. 
 14.2. By MASIMO. MASIMO represents that in addition to being responsible for all regulatory approvals for its Products, that should any material incidents of failure of any MASIMO Licensed Device which includes
Non-vital Signs Monitoring or injury related to such Products be reported to MASIMO, that it will take good faith efforts to promptly (i.e., within two (2) business days) notify LABS of any such performance problems or deficiencies relating to
Non-Vital Signs Monitoring licensed from LABS. 
 15. TERM AND TERMINATION 
 15.1. Term. The term of this Agreement shall commence on the Effective Date and shall continue in effect until terminated in
accordance with this Article 15. 
 15.2. Termination for Breach. The default by one Party of a material obligation of
such Party under this Agreement shall entitle the other Party to give the Party in default written notice describing such default in detail (including all supporting documentation) and requiring it to remedy such default. If such default is not
fully remedied within ninety (90) days after the date of such notice, the notifying Party shall be entitled to, in addition to all other remedies available to such Party, exercise its rights under the Escrow, as contemplated by Article 17, or
terminate this Agreement by a written notice to the defaulting Party. A Party may not continue to exercise its rights under the Escrow if it terminates this Agreement. 
 15.3. Termination on Liquidation. Either Party may terminate this Agreement at any time after the involuntary institution of any
proceedings for the liquidation or winding up of the other Party’s business which have not been terminated within 180 days after institution. 
 15.4. Rights Upon Termination. In the event of any valid termination of this
Agreement [under Section 15.2 (“Termination for Breach”) or 15.3 (“Termination on
Liquidation”),] each the breaching or liquidating Party’s rights under this Agreement shall be terminated
except as follows: 
 15.4.1. No termination of this Agreement shall terminate or otherwise impact LABS’ rights under
Sections 2.1.1, 2.1.2, 2.1.4, 2.3 or any sublicenses and private label patient monitoring company contracts under 2.1.3. 
 15.4.2. No termination shall effect the rights of customers that have already purchased products to continue to use such products, or the rights of the licensee to continue to sell sensors and accessories to meet the needs of such purchased
products. 
  

 25 

 15.4.3. No termination shall impact either Party’s rights to collect for accrued
royalties or the licenses granted in this Agreement, which continue after termination on the terms and conditions existing upon termination. 
 15.4.4. For any termination for breach, only the rights of and licenses to the breaching Party are terminated, and rights and licenses to the non-breaching Party remain in effect, as well as the obligations of the
breaching Party to the non-breaching Party. 
 15.5. Survival. The rights and obligations of the Parties hereto under
Sections 10 (“Confidentiality”), 11 (“Proprietary Rights”), 12 (“Indemnification”), 13 (“Regulatory Compliance”), 14 (“Incident Reporting”), 2.1.1, 2.1.2, 2.1.4, and 2.3 ( “Trademarks, Legends
and Logos”), or any sublicenses and private label patient monitoring company contracts under 2.1.3, and 4 (“Masimo Option”) of this Agreement shall survive and continue after termination of this Agreement and shall bind the Parties
and their representatives, successors, heirs and assignees. 
 16. DISPUTE. If any dispute or difference shall arise between the
Parties concerning the construction of this Agreement or the rights or obligations of either Party, the Parties shall strive to settle the same amicably. If LABS and MASIMO have the same CEO, and the common CEO determines that a conflict exists that
he cannot resolve due to the diverging interests of Labs and Masimo, the common CEO at his option, will either 1) appoint an independent board member (if one exists) to represent each Party to discuss and negotiate resolutions to conflicts arising
under this Agreement, with the CEO, or 2) the common CEO will resolve the issue to his best capability to balance the needs of both Masimo and Labs and seek Board approval of both Masimo and Labs for his decision. If the Parties are unable to reach
agreement or amicably settle the dispute or difference within ninety (90) days after such dispute or difference has arisen, such dispute will be resolved through binding arbitration, applying the AAA rules. The prevailing Party will be entitled
to recover, in addition to any other award of the arbitrators, its attorney’s fees and costs associated with the arbitration. 
 17.
ESCROW 
 17.1. Escrow Deposit. When LABS and MASIMO no longer have the same CEO, either Party may request that
each of MASIMO and LABS place in escrow with an independent third party copies of the LABS Technology and MASIMO Technology, respectively, pursuant to the terms of an escrow agreement on commercially reasonable and standard terms. Such escrow
agreement will be negotiated and agreed to by the Parties at such time as either party makes a written request upon the other. Each Party will pay its own fees and costs to establish the escrow, except that the Party requesting the escrow shall pay
all costs of the escrow agent during the term of the escrow, notwithstanding the fact that both Parties will have technology placed in the escrow and both Parties will have rights to technology under the escrow. The escrow will include drawings and
all necessary information available to each such Party for use of the technology pursuant to the License in Section 17.2. Each Party shall update its deposit in accordance with the escrow agreement. 
 17.2. License upon Release. In the event that a Party is in breach of an obligation under this Agreement that inhibits the other
Party’s ability to make, use, offer for sell or sell products licensed under this agreement, and such breach is not cured within the time period provided herein, the nonbreaching Party is granted by the 

  

 26 

 
breaching Party a revocable, license to use, maintain, develop and improve the technology in escrow for the intended purposes of this Agreement, provided
that, the other Party shall have no right to access, maintain, develop or possess the deposited technology except in accordance with the terms of the escrow agreement; and provided further, that all royalties and other obligations due under this
Agreement shall not be reduced, waived or eliminated in any way during the time period that such license remains in effect. The license under this paragraph shall only apply during the continuation of the breach, and not after it has been cured,
except that where significant investment of funds was made by the licensed Party, the period of license shall run until the investing party has recovered the amount invested, or the breaching party reimburses the licensed Party for its out of pocket
costs associated with establishing its own manufacturing due to the failure to supply. 
 17.3. Intentions of Escrow.
As a matter of clarity, the purpose of the escrow is only to reduce the risk of unavailability of necessary information to allow a licensed Party to continue to achieve the purposes anticipated by this Agreement by having the temporary license to
such information in situations where there has been an uncured breach of this Agreement, and not alter existing economic or other obligations under this Agreement, or allow or provide for any permanent transfer of any rights or assets from one Party
to the other as a result of a release of information from the escrow contemplated in this Article 17. 
 18. MISCELLANEOUS 

18.1. Nonassignability. Neither MASIMO nor LABS may assign this Agreement except in connection with the sale of all or
substantially all of the assets or business of such Party to which this Agreement relates. This Agreement will inure to the benefit of and bind each Party’s successors and assigns. 
 18.2. Failure to Enforce. The failure of either Party to enforce at any time or for any period of time the provisions of this
Agreement shall not be construed to be a waiver of such provisions or of the right of such Party to enforce each and every such provision. 
 18.3. Governing Law. This Agreement shall be deemed to have been made in the State of California, United States of America, and shall be governed by and construed according to the laws of the State of
California. 
 18.4. Severability. In the event that any of the provisions of this Agreement shall be held by a court
or other tribunal of competent jurisdiction to be unenforceable, such provisions shall be deleted from this Agreement and the remaining portions of this Agreement shall remain in full force and effect, except where the economic equity of both
Parties hereto is materially affected by such unenforceability. 
 18.5. Notice. Except as either Party may hereafter
notify the other in writing with respect to itself, the addresses of the Parties for all purposes of this Agreement shall be: 
  

											
	 MASIMO:
	  	MASIMO CORPORATION	  		  		  	
		  	40 Parker	  		  		  		  	
		  	Irvine, CA 92618	  		  		  	
		  	Attention: Chief Executive Officer	  		  		  	

  

 27 

											
	 LABS:
	  	MASIMO LABORATORIES	  		  		  	
		  	50 Parker	  		  		  		  	
		  	Irvine, CA 92618	  		  		  		  	
		  	Attention: Chief Executive Officer	  		  		  	

 All notices and communications pursuant to this Agreement shall be addressed as set forth above
and shall be delivered to the Party for whom intended by hand or by postage prepaid, first class, registered or certified mail, return receipt requested. Such notices and communications shall be deemed to have been given and delivered as of the date
of receipt. 
 18.6. Force Majeure. Neither Party shall be liable to the other Party hereto for any loss, injury,
delay, damages or other casualties suffered or incurred by such other Party due to strikes, riots, storms, fires, acts of God, or war or any other cause beyond the reasonable control of either Party. 
 18.7. Headings. Headings to paragraphs and sections of this Agreement are to facilitate reference only, do not form a part of this
Agreement, and shall not in any way affect the interpretation hereof. 
 18.8. Exhibits. All exhibits to which this
Agreement refers are hereby incorporated into and made a part of this Agreement. 
 18.9. Entire Agreement. This
Agreement constitutes the entire agreement between LABS and MASIMO, and expressly supersedes the Original Agreement and all previous amendments , and there are no other understandings, agreements or representations, express or implied, written or
oral, not specified herein. This Agreement may only be amended by express written agreement and signed by authorized representatives of both Parties. 
 18.10. Bankruptcy. Each of MASIMO and LABS is a licensee under 11 U.S.C. §365(N) and is entitled to the protections as a licensee provided therein. 
 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date set forth above. 
  

							
	MASIMO CORPORATION	 	MASIMO LABS
				
	By	 	 /s/ Brad Langdale
	 	By	 	 /s/ Joe E. Kiani

		 	Brad Langdale, EVP, Marketing	 		 	Joe E. Kiani, Chief Executive Officer

  

 28 

 EXHIBIT A 
 MASIMO SET® DEFINITION 
 MASIMO SET® includes the following MASIMO Technology, as it relates to pulse oximetry: 
 LNOP®, AutoProCalTM, ProCalTM, DSTTM, FSTTM Technology,
SST, Proprietary Engine number 4, APOD, PVI, PI, FastSat, and Parallel Engines; 
 Transducers (sensor/probe) designed to reduce cost, reduce noise and
improve accuracy; 
 The technique of building a reference generator for calculating substantially a noise or signal reference; 
 Use of a noise reference or signal reference to minimize the effect of unwanted noise components (e.g., motion artifacts) from physiological waveforms (e.g.,
photo-plethysmographic waveforms); 
 Use of a reference generator along with a correlation canceler (e.g., Joint Process Estimator) to map natural
photo-plethysmographic waveforms into oxygen saturation space; 
 Use of a saturation transform, which is the technique of mapping plethysmographic waveforms
into saturation space (e.g., saturation vs. power or probability and saturation vs. frequency or pulse rate); and/or 
 Use of transducers, circuitry,
general digital signal processing techniques, mathematical algorithms for processing physiological signals and providing one or more final results (e.g., arterial blood oxygen saturation, pulse rate and/or photo-plethysmographic wave forms).

  

 29 

 EXHIBIT B 
 Exhibit B1: to include Masimo Licensed Trademarks. See 1.20. 
 Panatone Red / PMS Black 
 1850 MAT 
 (MASIMO WILL PROVIDE CAMERA READY ARTWORK UPON REQUEST) 
 NO IMPLIED LICENSE LABEL 
  

 30 

 EXHIBIT C 
 Price of Products 
 Price for MASIMO Boards: MASIMO’s transfer prices to LABS for the MS2000
Boards shall be $175.00: 
 Price for Rainbow Boards: 
 All
Rainbow Boards and Rainbow sensors at cost of goods sold up to 10% of MASIMO’s anticipated annual volume, determined on an annual basis. Thereafter, Labs will manufacture such Rainbow Boards or Rainbow sensors itself, or may purchase from
Masimo at COGS plus Masimo’s regular margin. When Labs wishes to manufacture, Masimo will provide reasonable assistance consistent with this Agreement, including providing Labs with access to Masimo vendors (Masimo vendors will be instructed to
transfer to Labs the products at the same price they supply them to Masimo), tools, manufacturing process procedures and training. 
 Transfer Price for Sensors and Accessories: MASIMO’s initial baseline transfer prices to LABS for the SpO2 Sensors and Accessories delivered in accordance with this Agreement shall be at the most favored OEM prices. 
 LABS shall receive the best price offered by MASIMO to any other person or entity for Products. In the event that MASIMO provides more favorable pricing to another person or entity, MASIMO shall notify LABS of such
better pricing within thirty days, and LABS shall have the option of accepting the more favorable pricing, effective immediately. 
  

 31 

 EXHIBIT D 
 End-User License Agreement 
 THIS DOCUMENT IS A LEGAL AGREEMENT BETWEEN YOU, THE
“PURCHASER”, AND LABS. IF YOU DO NOT AGREE TO THE TERMS OF THIS AGREEMENT, PROMPTLY RETURN THE ENTIRE PACKAGE, INCLUDING ALL ACCESSORIES, IN THEIR ORIGINAL PACKAGE, WITH YOUR SALES RECEIPT TO LABS FOR A FULL REFUND. 
 1. Grant of License 
 In consideration
of payment of the license fee, which is part of the price paid for this product, LABS grants to Purchaser a nonexclusive, nontransferable license, without right to sublicense, to use the copy of the incorporated software/firmware, and documentation
in connection with Purchaser’s use of the Products for their labeled purpose. LABS reserves all rights not expressly granted to Purchaser. 
 2. Ownership of MASIMO Software/Firmware 
 Title to, ownership of, and all rights and interests in, any MASIMO software
and/or firmware and the documentation, and all copies thereof, remain at all times vested in MASIMO Corporation, licensor to LABS, and they do not pass to Purchaser. 
 3. Assignment 
 Purchaser shall not assign or transfer this License, in whole or in part, by operation
of law or otherwise, without LABS’ prior written consent; any attempt without such consent, to assign any rights, duties or obligations arising hereunder shall be void. 
 4. Copy Restrictions 
 The
software/firmware and the accompanying written materials are copyrighted. Unauthorized copying of the software, including software that has been modified, merged, or included with other software, or other written materials is expressly forbidden.
You may be held legally responsible for any copyright infringement that is cause or incurred by your failure to abide by the terms of this license. Nothing in this license provides any rights beyond those provided by 17 U.S.C. § 117.

 5. Use Restriction 
 As
the Purchaser, you may physically transfer the products from one location to another provided that the software/firmware is not copied. You may not electronically transfer the software/firmware from the products to any other device. You may not
disclose, publish, translate, release or distribute copies of the software/firmware or accompanying written materials to others. You may not modify, adapt, translate, reverse engineer, decompile, disassemble, or create derivative works based on the
software/firmware. You may not modify; adapt, translate, or create derivative works based on the written materials without the prior written consent of LABS. 
 6. Transfer Restrictions 
 The software/firmware is licensed to the Purchaser, and may not be
transferred to anyone, except other end-users, without the prior written consent of LABS. In no event may you transfer, assign, rent, lease, sell, or otherwise dispose of the software/firmware or the products on a temporary basis. 
  

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 7. Beneficiary  
 MASIMO Corporation is a Beneficiary of this Agreement and has the right to enforce its provisions. 
 RESTRICTED RIGHTS LEGEND 
 The software/firmware and documentation is commercial computer software as defined in DFARS §
252.277.7014(a)(1). The Government shall have only those rights specified in this Agreement. DFARS § 227.7202-3(a). 
  

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