Document:

Form of Equipment Purchase and Assignment of Proceeds

 Exhibit 10.25 
 *** Text Omitted and Filed Separately 
 Confidential Treatment Requested 
 Under 17 C.F.R. §§ 200.80(b)(4) 
 and 230.406 
 November 26, 2003 
 Mr. Bradley Langdale 
 Masimo Corporation 
 2852 Kelvin Avenue 
 Irvine, CA 92614 
 Dear Brad: 
 We are delighted to inform you that Med One Capital Funding LLC is committed to provide funding for Masimo’s Oximetry Supply
Agreement program. We are willing to commit to this ongoing equipment funding arrangement based on the following criteria: 
  

	1.	Med One will provide funding for this program on an ongoing basis until (and unless) you receive 180 days advanced written notice of our intent to withdraw from the program.

	2.	Med One will commit to a minimum of [...***...] to the program for calendar year 2004 and each year thereafter. We are willing to participate in as much of this business as your
sales organization can originate – with no maximum amount. 

	3.	The transactions will be structured as we have previously negotiated in prior meetings and discussions. Med One’s discount rate for all business funded in this manner will be
based on the US Treasury Constant Maturities interest rate (as quoted in the Federal Reserve Statistical Release H.15 (519) for the week immediately preceding the request for funding. We will use the term that corresponds to the term of your
transaction – or the next higher term if there is not an exact term match. Med One will add [...***...] basis points to this rate index for purposes of pricing this program only. 

	4.	The documents will consist of the following: 

	 	•	 	 Original Masimo transaction documentation – with original customer signature. 

	 	•	 	 Assignment Agreement – executed by authorized officer of Masimo Corporation. 

	 	•	 	 UCC-1 filing pertaining to the equipment being funded. 

	 	•	 	 Evidence of delivery of the equipment to the customer. 

	5.	Funding under this program will be non-recourse to Masimo as it pertains to customer’s performance. Notwithstanding this, Masimo will provide a fixed monthly payment to Med One
based on the calculations of each specific transaction and will pay this monthly payment monthly each month during the term unless Med One is properly notified of a default by the customer. Masimo will set up an account that Med One will draft
directly for each monthly payment. 

	6.	In addition to this funding program, Med One will make available to the sales organization of Masimo, all of Med One’s current lease, rental and financing options for the use
by Masimo’s customer’s on a direct basis. 

 Thank you for the opportunity to serve your financing and financial services needs. We
look forward to a very enjoyable relationship with your company. 
 Very truly yours, 
 /s/ Larry R. Stevens 
 Larry R. Stevens 
 President 
 6965 Union park Center Suite 400 Midvale, UT 84047 
 (800) 248-5882 x4011 ph.
(800) 468-5528 fax 
 *Confidential Treatment Requested 
  

 1 

 Med One Capital Funding LLC 
 Initial Fundings for Masimo 
             14-Nov-03 
 [...***...] 
 *Confidential Treatment Requested 
  

 2 

 EQUIPMENT PURCHASE AND ASSIGNMENT OF PROCEEDS 
 (“Assignment”) 
 Masimo
Corporation, 2852 Kelvin Avenue, Irvine, CA 92614 (“Vendor”) entered into a Pulse Oximetry Supply Agreement (the “Agreement”) with CUSTOMER NAME (“Customer”) dated ____________, 20__ wherein Customer has
agreed to acquire the products listed in the Agreement (“Products”) from Vendor in the quantities and at the prices shown therein during a term of __ months which shall begin ____________, 20__. 
 The Agreement, an executed copy of which is attached hereto as Exhibit A requires Vendor to provide to Customer, among other things, the following
described capital equipment (“Equipment”), whereby financing for the Equipment is to be provided by Med One Capital Funding LLC: 
  

					
	 Quantity
  
	 	 Equipment Description
  
	 	 Model Number
  

	 	 	 
	  	 	  	 	  
	 	 	 
	  	 	  	 	  
	 	 	 
	  	 	  	 	  
	 	 	 
	  	 	  	 	  

 Transaction Summary: 
  

						
			
	 Equipment Cost To Be Financed:
	  	$	 	 	 
			
	 Financing Term:
	  			 	 
			
	 Applicable Annualized Financing Rate Of Interest: %
	  			 	 
			
	 Monthly Equipment Amortization:
	  	$	 	 	 
			
	 Total Equipment Amortization Over Term:
	  	$	 	 	 

 Med One Capital Funding LLC, 6965 Union Park Center, Suite 400, Midvale, UT 84047
(“Med One”) hereby agrees to purchase the Equipment from Vendor and permit Vendor to provide the Equipment to Customer under the terms of Exhibit A and subject to this Assignment between Vendor and Med One. The purchase of the
Equipment shall be at a price shown on Med One’s Purchase Order Number ___________ which is attached hereto as Exhibit B. In the event of a conflict between the immediately referenced Purchase Order, the Agreement and this
Assignment, the terms of this Assignment will apply. Vendor may substitute different model numbers as long as the Equipment Increment and the quantity remain the same. The purchase price of the Equipment shall be provided to Vendor by wire transfer
within two (2) business days after execution of this agreement. 
  

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 Monthly Total Equipment Amortization equals the total monthly payment which shall be due and payable by
Vendor to Med One monthly under this Agreement within 5 business days following the end of the month in which such amount is paid by the Customer, up to a cumulative amount not to exceed the Total Equipment Amortization, as set forth above.

 Subject to the terms of this Assignment, Vendor hereby assigns all of its right, title and interest in and to the Equipment and the
proceeds pertaining to the Equipment Increment under or by virtue of the Agreement to Med One and agrees that all amounts to become due or collected under Exhibit A for purchase of Products by Customer shall be designated proportionally
between the “Equipment Increment” and the “Product Increment.” 
 Vendor shall have responsibility to invoice Customer
for all purchases under Exhibit A and to accept all proceeds paid by the Customer under Exhibit A and to remit to Med One all assigned proceeds hereunder, provided, however, that Vendor is not liable to Med One for amounts due from
Customer that are not collected. 
 Notwithstanding the foregoing, however, Vendor shall, at such time as Vendor determines is appropriate,
or at such time as Med One may reasonably request (i) make at least one collection telephone call (talk to Customer or leave a descriptive message) and (ii) send at least one collection demand letter to Customer if the Customer does
not pay within invoice terms. 
 Vendor and Med One hereby agree as follows: 
  

	 	1.	Vendor warrants Exhibit A is, to Vendor’s knowledge, genuine and enforceable in accordance with its terms and is the only agreement in effect with Customer with respect
to the sale or use of the Equipment. Vendor has no knowledge of any facts which would impair the validity of Exhibit A or this Assignment, or the truth of any statement or warranty therein. The Vendor’s knowledge includes the fraudulent
activities of Vendor’s employees and agents. 

  

	 	2.	Vendor has not, before the execution and delivery of this Assignment, assigned or pledged Equipment Increment payments due or to become due under Exhibit A to anyone or any
entity other than Med One, and Vendor has no knowledge that there are any attachments or other liens which might impair Vendor’s right to receive all Equipment Increment payments due and to become due under Exhibit A other than this
Assignment; and, Vendor has full right, power and authority to assign Vendor’s right, title and interest in the proceeds received by or due to Vendor pertaining to the Equipment Increment to Med One. 

  

	 	3.	 Immediately prior to the execution of Exhibit A and delivery thereof by the Customer to Vendor, Vendor was vested with good and unencumbered title to the
Equipment and had full right, power and authority to the same; the description of the Equipment in Exhibit A is accurate and complete in all material respects. Upon shipment of the Equipment to the Customer, assuming a first priority security
interest has been created and perfected, Vendor transfers to Med One, good title to the Equipment, free and clear of all liens and encumbrances except 

  

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for the rights and interests of Customer as described in Exhibit A. Vendor’s warranties pertaining to the Equipment and the Customer to
Vendor’s knowledge shall inure to the benefit of and be enforceable by both Med One and Customer, either jointly or severally. At Med One’s request, Vendor shall use its best commercial efforts to cause UCC-1 Financing Statements in form
requested by Med One to be delivered to Med One. 

  

	 	4.	Notwithstanding the Assignment made hereby, Vendor shall perform all of the obligations and duties imposed upon it by Exhibit A in accordance with the terms of Exhibit
A. Med One shall have no obligations of the Vendor under Exhibit A. Subject to the terms of this Assignment, Vendor agrees to indemnify, defend, and hold Med One harmless from all claims and liability arising out of Vendor’s
obligations under Exhibit A and the purchase, use, possession or operation of the Equipment. 

  

	 	5.	If Customer and Vendor enter into an arrangement with respect to service and preventative maintenance for the Equipment, then Vendor warrants to Med One that Vendor and its
successors and assigns will be responsible to provide such service and preventative maintenance function relating to the Equipment in accordance with the terms of such arrangement and will hold Med One harmless with respect to claims or liabilities
in connection with such service and preventative maintenance. 

  

	 	6.	Vendor will make all payments under this Assignment to Med One or to such other person and at such place, as Med One may direct, and will promptly deliver to Med One all notices and
correspondence reasonably requested by Med One to exercise Med One’s rights under Exhibit A and this Assignment. 

  

	 	7.	Vendor waives presentment and demand for payment, protest or notice of the non-payment and notice as to all agreements and related documents now and hereafter assigned or endorsed
to Med One. Vendor subordinates to any rights Med One may now or hereafter have against Customer under Exhibit A, and any rights Vendor may now or hereafter have or acquire by reason of payment to Med One of any payments under Exhibit
A or this Assignment. Notwithstanding anything to the contrary herein, Vendor shall pay to Med One the “Equipment Increment Per Item” for each product Customer actually acquires from Vendor under the Agreement and for which Customer
actually pays. Further, in the event Customer makes only a partial payment (the “Partial Payment”) for Products supplied by Vendor under the Agreement, Vendor shall pay to Med One an amount equal to the Monthly Total Equipment Amortization
referred to above each month during the term of Exhibit A, but only to the extent that such amounts are received by Vendor. Each month of the term shall stand on its own for purposes of this section. 

  

	 	8.	 If Vendor, or as applicable, Customer, materially breach any of their representations, warranties or obligations under this Assignment or Exhibit A that are
not cured during the time period provided therein, Med One shall be entitled 

  

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to exercise all of its legal, contractual and equitable rights against Vendor, Customer and the Equipment, including, without limitation, the right to
repossess the Equipment from Customer. 

  

	 	9.	Vendor shall keep complete and accurate records of Customer’s compliance with the Agreement (i.e., quantities ordered, etc.) and payments to Vendor pursuant to the Agreement
and Vendor shall provide Med One within fifteen (15) days of the end of each calendar month a written report showing the payments made by Customer to Vendor under the Agreement in such month. Upon Med One’s written request and not more
than once in any calendar year, Vendor shall permit an independent certified public accounting firm of nationally recognized standing, selected by Med One and reasonably acceptable to Vendor, at Med One’s expense, to have access during normal
business hours to such of Vendor’s records reasonably necessary to verify the accuracy of the above referenced reports. Notwithstanding, and in addition to the foregoing, in the event any payment owed by Customer to Vendor under the Agreement
becomes more than sixty (60) days past due, Med One, prior to exercising its rights and remedies under this Assignment, and at its sole option and cost, shall have the right, upon reasonable notice and during regular business hours, to view
Vendor’s records with respect to such delinquent Customer for the sole purpose of verifying the nature and extent of such Customer’s default. Med One shall have the right to all Service charges (defined in Schedule B # 3 of Vendor’s
Terms and Conditions) pertaining to the Equipment Increment (as that term is defined herein). 

  

	 	10.	At such time that any payment by Customer to Vendor under the Agreement becomes more than sixty (60) days past due, Med One, at its sole option may exercise all of its rights
and remedies under this Assignment with respect to the Equipment and the Customer, including repossessing the Equipment and filing a deficiency lawsuit against Customer. In such event, Vendor shall notify Customer of such assignment and Vendor shall
execute any further documentation relating to such assignment that Med One reasonably deems necessary for such assignment and the exercise of Med One’s rights and remedies hereunder. 

  

	 	11.	Upon payment in full of the Total Equipment Amortization (set forth above) and so long as Customer is not in material default under the terms of Exhibit A, within thirty
(30) days thereafter Med One will transfer, convey and assign to Customer all of its right, title and interest in and to those units of Equipment free and clear of all liens and encumbrances. Additionally, within such thirty-day period, Med One
will file a UCC-3 or other forms for the purpose of releasing all liens on such fully-purchased Equipment. 

  

	 	12.	Vendor has to its knowledge complied and will comply with all requirements imposed upon it under the Agreement or under any law which may govern the Agreement.

  

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	 	13.	In the event of a breach of the terms of this Assignment, the breaching party shall pay all enforcement and collection costs of the non-breaching party, including reasonable
attorneys’ fees and expenses. 

  

	 	14.	This Assignment shall be governed by the laws of the state of Utah. 

  

	 	15.	This Assignment is binding upon the successors and assigns of the parties and along with the exhibits hereto constitutes their entire agreement with respect to the matters discussed
herein. Med One may assign its rights under this Assignment without the consent of Vendor. All oral representations or prior negotiations are deemed to have been merged into this Assignment. This Assignment may not be changed or modified except by a
writing signed by all of the parties. 

  

	 	16.	Following termination or expiration of the Agreement as set forth in Exhibit A prior to Customer completing all of its payment obligations thereunder, in the event Med One
desires to sell or transfer the Equipment to a third party, Med One shall first offer to sell the Equipment to Vendor on mutually acceptable terms, which shall never be greater than any amount remaining to be paid to Med One under an Exhibit
A contract relating to such Equipment. If the parties cannot agree on acceptable terms after a period of 30 days, Med One may sell the Equipment to a third party, provided that the terms of such sale are no more favorable than the terms offered
Vendor. 

  

	 	17.	Vendor will provide Med One with notice of, and Med One shall approve, any proposed material, good faith and commercially reasonable renegotiated changes to signed Exhibit A
contracts. 

  

	 	18.	The terms of this Assignment shall be deemed confidential and shall not, except as set forth in paragraph 10 of this Assignment, be disclosed by Med One or Vendor to anyone except
their employees and professional advisors with a need to know and Customer, unless required by law. 

  

	 	19.	All notices and other communications required or permitted herein shall be in writing and shall be delivered personally (which shall include delivery by courier or reputable
delivery service) or sent by certified or registered mail, postage prepaid, return receipt requested or sent by facsimile transmission. Items delivered personally or by facsimile shall be deemed delivered on the date of delivery; items sent by
certified or registered mail shall be deemed delivered three (3) days after mailing. The address of the parties for purposes of this provision are set forth in the Preamble of this Assignment. 

  

	 	20.	Vendor’s execution and delivery of this Assignment will not constitute a breach, default or event of default under any other written instrument, business organizational
document or agreement to which Vendor is bound. 

  

	 	21.	 At any time during the term of this Agreement, vendor may repurchase the Equipment and all rights granted in this agreement to Med One by paying to Med 

  

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One an amount equal to the unamortized portion of the Equipment Purchase Price as of that date. 

  

	 	22.	Notwithstanding anything else herein, Med One understands and agrees that the enforceability of Exhibit A is subject to standard legal exceptions (e.g., bankruptcy, actual
authorization, public policy, specific enforcement, etc.) and that Vendor is not a guarantor of enforceability of Exhibit A or for collection of amounts due from a Customer. Med One agrees to complete its own financial and legal due diligence
as it feels is required prior to acceptance of the assignment herein and assumes the risk of enforceability and collection of the amounts under Exhibit A. For purposes of this Agreement, Vendor’s knowledge is made based on the documents
provided and understanding of the CFO of Vendor, without investigation or inquiry, and without any obligation to update Med One upon any change in such knowledge. 

 The date of this Assignment shall be the same date as the Effective Date of the Agreement. 
  

					
	MED ONE CAPITAL, INC.	 		 	MASIMO CORPORATION
			
	By:                                      
                                        
 	 		 	By:                                      
                                        
 
			
	Name:                                     
                                    	 		 	Name:                                     
                                    
			
	Title:                                     
                                      	 		 	Title:                                     
                                      

  

 8Intercompany Agreement, dated 01/01/2006, with SPO2.com

 EXHIBIT 10.26 
 INTERCOMPANY AGREEMENT 
 THIS INTERCOMPANY AGREEMENT (this “Agreement”) is
made as of 12:01 a.m. this 1st day of January, 2006, by Masimo Corporation, a Delaware corporation (“Masimo”) and SPO2.com, Inc., a Delaware corporation (“Subsidiary”). 
 RECITALS 
 WHEREAS, Subsidiary
is a wholly-owned subsidiary of Masimo; 
 WHEREAS, Masimo has contributed and transferred to Subsidiary certain of its business operations
(the “Acquired Operations”); and 
 WHEREAS, Subsidiary desires to retain Masimo to provide certain administrative and
management services to assist Subsidiary in the management of the Acquired Operations. 
 NOW, THEREFORE, for good and valuable consideration
of the mutual covenants and agreements set forth herein, the receipt of which is hereby acknowledged, the parties agree as follows: 
 1.
Term of Agreement. This Agreement shall be effective on the date hereof and shall continue until terminated by either party upon thirty (30) days written notice to the other party. 
 2. Management Services. 
 (a)
Masimo may from time to time by the mutual agreement of the parties provide to Subsidiary certain management and administrative services (the “Masimo Services”). Unless the parties agree otherwise, Subsidiary shall pay Masimo a fee
equal to the costs expended by Masimo in rendering the Masimo Services hereunder plus a 5% mark-up on such costs (the “Management Fee”), such Management Fee payable in quarterly installments. In addition, Subsidiary shall reimburse
Masimo for certain out-of-pocket expenses incurred by Masimo in rendering the Masimo Services hereunder, including, but not limited to, reasonable reimbursement of attorneys’ fees incurred by Masimo, government fees, telephone, copying and the
like. Subsidiary acknowledges that such compensation arrangement is no less favorable than could have obtained in an arm’s length arrangement with an unrelated third party. Masimo shall not be liable to Subsidiary for any loss, damage or
injury, other than for gross negligence of its agents, or through contingencies beyond its control, arising out of the provision of any such services. Masimo’s liability under this Agreement shall not exceed the amount of consideration paid to
Masimo for the Masimo Services provided hereunder. In no event, whatsoever, shall Masimo be liable for consequential or punitive damages. 
 (b) Masimo shall invoice Subsidiary for the Management Fee and out-of-pocket expenses incurred by Masimo in rendering services hereunder at least once each fiscal quarter and payment shall be made by Subsidiary within thirty (30) days
after the date of the invoice. 

 3. Services by Subsidiary. Subsidiary may from time to time provide services to Masimo as
specified in Schedule 1 (the “Subsidiary Services”). Unless the parties agree otherwise, Masimo shall pay Subsidiary a fee equal to the costs expended by Subsidiary in rendering the Subsidiary Services hereunder plus a
5% mark-up on such costs (the “Services Fee”), such Services Fee payable in quarterly installments. 
 4. Sales and
Distribution Agreement. Concurrently with the execution of this Agreement, Masimo and Subsidiary have entered into that certain Sales and Distribution Agreement set forth on Schedule 2 hereto. 
 5. Mutual Cooperation. Masimo and Subsidiary acknowledge that the performance of this Agreement will require the mutual cooperation of the
parties, and each of the parties shall assist and cooperate with the other party as reasonably necessary to enable this Agreement to be performed and facilitate the proper operation and management of Subsidiary. 
 6. Indemnification By Service Provider. Masimo shall indemnify Subsidiary and its officers, directors, employees and representatives from
(i) any loss, damage, cost or expense (including reasonable attorneys’ fees) (a “Loss”) arising from any claim, demand, assessment, action, suit or proceeding (a “Claim”) arising or occurring during the
performance of the Masimo Services as a result of Masimo’s gross negligence or intentional misconduct and (ii) any Loss or Claim arising from or related to Masimo’s breach of any of the terms of this Agreement. Subsidiary shall
indemnify Masimo and its officers, directors, employees and representatives from (i) any Loss or Claim arising or occurring during the performance of the Subsidiary Services as a result of Masimo’s gross negligence or intentional
misconduct and (ii) any Loss or Claim arising from or related to Masimo’s breach of any of the terms of this Agreement. 
 7.
Confidentiality. 
 (a) Masimo grants to Subsidiary a perpetual, worldwide license to (i) use Masimo’s technical
information, inventions, concepts, products, components, trade secrets, know-how, techniques, designs, processes, communications protocols, software, and improvements; whether patentable or not, and all patents, patent applications, copyrights and
all other Masimo intellectual property rights (“Masimo Technology”), solely as required in the performance of its rights and obligations under this Agreement. 
 (b) Subsidiary grants to Masimo a perpetual, worldwide license to (i) use Subsidiary’s technical information, inventions, concepts, products,
components, trade secrets, know-how, techniques, designs, processes, communications protocols, software, and improvements; whether patentable or not, and all patents, patent applications, copyrights and all other Subsidiary intellectual property
rights solely as required in the performance of its rights and obligations under this Agreement. 
 (c) Each party
(“Recipient”) agrees to retain in confidence all information, knowledge, technology and trade secrets related to the operations of the other party (the “Disclosing Party”) disclosed to Recipient in the course of
performing its rights and obligations pursuant to the terms hereof and that it will not, without the written consent of the Disclosing Party, use information supplied or disclosed hereunder for any purpose other than that indicated 

  

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

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 (f) Counterparts. This Agreement may be executed in any number of counterparts, each of
which is an original and all of which taken together constitute one instrument. 
 (g) Legal Relationship. Subsidiary agrees
that, regarding all matters relating to this Agreement, Subsidiary shall be an independent contractor and not an agent or employee of Masimo and shall not hold itself out as a legal representative, agent, joint venturer, or partner of Masimo for any
purpose whatsoever. Subsidiary has no right or authority to assume or create any obligations of any kind or to make any representations or warranties, whether express or implied, on behalf of Masimo or to bind Masimo in any respect whatsoever (and
shall not hold itself out as having such authority). It is understood that Subsidiary’ sales representatives are employees of Subsidiary, and not Masimo, and that Masimo has no responsibility or obligation with respect to said persons.

 (h) Force Majeure. 
 (i) Neither party shall be responsible for any failure to comply with the terms of this Agreement where such failure is due to force majeure, which shall include, without limitation, fire, flood, explosion, strike, labor disputes,
labor shortages, picketing, lockout, transportation embargo or failures or delays in transportation, strikes or labor disputes affecting supplies, or acts of God, civil riot or insurrection, acts of the Federal Government or any agency thereof, or
judicial action. Specifically excluded from this definition are those acts of the Federal Government or any agency thereof or judicial action which could have been avoided by compliance with such laws or regulations as are publicly available and
reasonably expected to be known by either party. 
 (ii) Upon the cessation of any cause operating to excuse performance of either party
under this Section, this Agreement shall continue in full force and effect unless or until otherwise terminated pursuant to this Agreement. If one or more of said causes is asserted by either party as a basis of that party’s nonperformance, the
other party shall have the right to terminate this Agreement forthwith by giving written notice to that effect prior to the resumption of performance. 
 (i) Headings. The section and paragraph headings used in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 
  

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

							
	“Masimo”	 	“Subsidiary”
		
	MASIMO CORPORATION	 	SPO2.COM, INC.
				
	By:	 	 /s/ Joe Kiani
	 	By:	 	 /s/ Bradley Langdale

	Name:	 	 Joe E. Kiani
	 	Name:	 	 Bradley Langdale

	Title:	 	 Chairman & CEO
	 	Title:	 	 Director

  

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 SCHEDULE 1 
 SUBSIDIARY SERVICES 
 (none) 

 SCHEDULE 2 
 SALES AND DISTRIBUTION AGREEMENT 
 THIS SALES AND DISTRIBUTION AGREEMENT (this
“Agreement”) is made and entered into as of 12:01 a.m. the 1st day of January, 2005, by and between Masimo Corporation, a Delaware corporation (“Masimo”), and SPO2.com, Inc., a Delaware corporation
(“Subsidiary”). 
 R E C I T A L S 
 WHEREAS, Masimo is a corporation that manufactures read-through motion and low perfusion pulse oximetry technologies and products throughout the world (collectively, the “Product(s)”). 
 WHEREAS, Masimo is the parent of Subsidiary and has contributed its sales, distribution and marketing operations in the Territory (as defined below) to
Subsidiary (the “Acquired Operations”). 
 WHEREAS, as a result of the transfer of the Acquired Operations, Masimo desires
to engage Subsidiary to sell, distribute and promote the Products. 
 WHEREAS, Masimo is willing to appoint Subsidiary as a non-exclusive
distributor of the Products in the Territory and to sell to Subsidiary all Products for which orders are received, and Subsidiary is willing to accept such appointment and to purchase the Products manufactured by Masimo subject to certain terms and
conditions set forth herein. It is further acknowledged that Subsidiary is undertaking the obligations herein subject to certain covenants and assurances provided by Masimo, such covenants and assurances being deemed necessary by Subsidiary in view
of the risks associated with the sale and distribution of the Products and in view of the unique resources available to Subsidiary. 
 NOW,
THEREFORE, for good and valuable consideration of the mutual covenants and agreements set forth herein, the receipt of which is hereby acknowledged, the parties agree as follows: 
 ARTICLE I 
 APPOINTMENT OF SUBSIDIARY 
 Section 1.1 Appointment and Acceptance. Masimo hereby appoints Subsidiary as its non-exclusive distributor in the following territory:

 [to be determined by mutual written agreement] 
 (which may be modified from time to time by written acknowledgment of the parties; said territory, as modified, being referred to as the “Territory”) of all Products manufactured by Masimo. Masimo shall have the right to
establish terms and limitations under which Subsidiary may distribute the Products, subject to applicable laws. Subsidiary hereby accepts such appointment and agrees to fully perform and discharge its duties in accordance with this 

  

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

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 2.3.3 Upon any such termination provided above, the parties shall have the rights set
forth in Section 2.2. 
 ARTICLE III 
 TRADEMARKS AND TRADE NAMES 
 Section 3.1 Masimo hereby grants to Subsidiary the
nonexclusive right and license to use the Masimo trademarks and trade names in connection with the promotion, sale and distribution of the Products in the Territory. Any use of Masimo’s trademarks is subject to Masimo’s prior approval,
which shall not be unreasonably withheld. 
 Section 3.2 Subsidiary acknowledges and agrees that the non-exclusive rights to
Masimo’s trademarks and trade names are and shall remain valuable, proprietary information belonging to Masimo and that Masimo is retaining non-exclusive rights to its trademarks and trade names. Subsidiary shall not at any time do or cause to
be done, or fail to do or cause to be done, any act or thing, directly or indirectly, contesting or in any way impairing Masimo’s rights in Masimo’s trademarks and trade names. Subsidiary additionally agrees that the Masimo trademarks and
trade names may be used by Subsidiary only in connection with the promotion, sale, and distribution of the Products in the Territory as set forth herein. 
 Section 3.3 Subsidiary specifically acknowledges that it does not possess, and shall not acquire, any interest in any of Masimo’s trademarks or trade names appearing on the labels or packaging
materials for the Products and that any enhancement in the value thereof resulting from the use contemplated by this Agreement inures to Masimo. 
 Section 3.4 Subsidiary shall not adopt, use or register any words, phrases or symbols which are identical to or confusingly similar to any of Masimo ‘s trademarks. Upon termination of this Agreement, Subsidiary shall cease
and desist from using Masimo’s trademarks in any manner. 
 Section 3.5 Subsidiary shall give immediate notice to Masimo of
any known or presumed counterfeits, copies, imitations, simulations or infringements upon Masimo ‘s trademark rights by third parties and shall cooperate fully with Masimo in the protection of those rights. 
 ARTICLE IV 
 OBLIGATIONS OF
SUBSIDIARY 
 During the Term of this Agreement, Subsidiary’ obligations shall, without limitation, include the following:

 Section 4.1 Best Efforts to Promote and Sell the Products. Subsidiary shall exercise its best efforts to sell and
distribute the Products and to promote the goodwill of Masimo and the market reputation of the Products. In connection with the foregoing, Subsidiary shall provide promptly to Masimo any information it obtains with respect to the Products, including

  

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feedback from consumers, retailers, and distributors, and activities of competitors. Subsidiary shall conduct marketing and distribution activities of
Products pursuant to the strategy set forth by Masimo. Furthermore, Subsidiary shall conduct its activities in a professional manner and in accordance with the terms of this Agreement. 
 Section 4.2 Staffing and Vehicles. Subsidiary shall maintain an adequate and aggressive staff of sales and marketing personnel, which
is sufficiently trained and knowledgeable to enable such staff to effectively promote sales of Products and solicit orders for Products. Subsidiary shall maintain and make available to its sales personnel such other equipment and supplies as are
necessary to Subsidiary to fulfill its obligations under this Agreement. 
 Section 4.3 Taxes. Subsidiary shall be solely
responsible for the collection and payment of all taxes payable in connection with its resale of the Products and the performance of its services as contemplated herein. 
 Section 4.4 Expenses. Subsidiary assumes full responsibility for all costs and expenses that it incurs in carrying out its obligations under this Agreement. This shall include, without limitation,
payment of all salaries and benefits for persons employed to perform Subsidiary’s responsibilities hereunder, all expenses incurred in connection with the advertising and promotion of the Products, all expenses relating to any permits or
licenses required in connection with the performance of Subsidiary’s responsibilities, and all expenses relating to vehicles used by sales representatives and other travel and accommodation expenses incurred by such persons. It is acknowledged
and understood that Subsidiary may utilize third parties to perform certain administrative services incident to the services performed hereunder. 
 ARTICLE V 
 OBLIGATIONS OF MASIMO 
 During the Term of this Agreement and subject to the terms and conditions hereof, Masimo shall have the following obligations: 
 Section 5.1 Satisfaction of Orders. Masimo shall fill orders for Products submitted by Subsidiary in accordance with an agreed upon schedule for delivery. 
 Section 5.2 Masimo Support. Masimo shall provide, in the Territory, such support and assistance, including promotional support, as
Masimo, in its sole discretion, deems appropriate and necessary. 
 Section 5.3 Compliance with Law. Masimo shall comply
with all applicable laws, statutes, rules and regulations concerning the manufacture and packaging of the Products. 
  

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

 ARTICLE VII 
 TITLE TO
PRODUCT AND RISK OF LOSS 
 Section 7.1 Delivery of Products. 
 7.1.1 Title to Product and risk of loss shall pass from Masimo to Subsidiary immediately upon availability to Subsidiary, Ex Works facility located at 40
Parker, Irvine, California. 
 7.1.2 Masimo assumes full responsibility for loss or damage of products while in Masimo’s possession,
except for any claims arising out of Subsidiary’ instructions. 
 Section 7.2 Returned Products. 
 7.2.1 For Products that do not satisfy the Product warranty provisions set forth in this Agreement, Masimo’s sole liability, and Subsidiary’
sole remedy under any warranty obligation is, at Masimo’s sole discretion, to repair or replace the Product or to refund the purchase price paid and accept return of the Product. 
 7.2.2 Products returned by Subsidiary shall be shipped to such location as designated by Masimo. 
 7.2.3 Masimo is not responsible to Subsidiary for warranty services for any products that were not originally sold by Masimo. Upon receipt of returned
goods from its customers, Subsidiary agrees to make a good faith and reasonable effort to identify and distinguish goods that were not purchased from Masimo. Such goods are not subject to terms and conditions of this Agreement. 
  

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 ARTICLE VIII 
 PRODUCT PRICES, PAYMENT TERMS AND RETURNS 
 Section 8.1 Product Prices.

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

 Section 8.2 Product Invoicing and Payment Terms. 
 8.2.1 Masimo shall invoice Subsidiary for all Products on a monthly basis in accordance with the terms and conditions specified herein. Subsidiary agrees
to pay each invoice within sixty (60) days of issuance. 
 8.2.2 Interest shall accrue on amounts not paid when due at a rate equal to
10 percent per annum until payment in full is received. 
 8.2.3 The price and payment terms contained in this Agreement shall apply to all
purchase orders between Masimo and Subsidiary from the effective date of this Agreement forward. 
 ARTICLE IX 
 MISCELLANEOUS 
 Section 9.1
Product Warranty. Masimo’s Product warranty shall be as set forth in the applicable warranty certificate that accompanies the Product. 
 Section 9.2 Indemnification. 
 9.2.1 Notice. Recognizing the objectives of this
Agreement, Subsidiary agrees that if it knows of or becomes aware of any patents that may be infringed by the manufacture and sale of the Masimo Products, it will promptly disclose such information to Masimo. 
  

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 9.2.2 By Masimo - Bodily Injury. Masimo will defend, indemnify and hold Subsidiary harmless
against any and all liability, loss, damages, costs or expenses which Subsidiary may hereafter incur, as a result of any injury, illness or death of any person which is caused by any Masimo Product, to the extent that such injury, illness or death
resulted from (i) Masimo’s design or manufacture of the standard Masimo Products or (ii) failure of the Masimo Products at the time of shipment to Subsidiary to materially comply with published specifications. Masimo shall have no
liability or responsibility of any kind to Subsidiary under this Section unless Subsidiary (a) promptly notifies Masimo of such claims, (b) gives Masimo an adequate opportunity to defend, including complete control of such defense, and
(c) provides reasonable assistance to Masimo, at Masimo’s expense, in connection with the defense and settlement of any such claim. Masimo shall have no liability for settlements made without Masimo’s express written consent. Should
Subsidiary desire to have its own counsel participate in any such action, the cost of such counsel shall be exclusively Subsidiary’s. 
 9.2.3 By Masimo - Infringement. Masimo will defend, indemnify and hold Subsidiary harmless against infringement or alleged infringement directly resulting from standard Masimo Products furnished under this Agreement, of any patent,
copyright, trademark, trade secret, or any other proprietary right of any third party. Masimo shall have no liability or responsibility of any kind to Subsidiary under this Section unless Subsidiary (a) promptly notifies Masimo of such claim,
(b) gives Masimo an adequate opportunity to defend, including complete control of such defense, and (c) provides reasonable assistance to Masimo, at Masimo’s expense, in connection with the defense and settlement of any such claim
including, but not limited to, where practical, modifying the Masimo Products to make them non-infringing or, where practical, obtaining licenses under such intellectual property rights. Masimo shall have no liability for settlements made without
its express written consent. Should Subsidiary desire to have its own counsel participate in any such action, the cost of such counsel shall be exclusively Subsidiary’s. Masimo may, at its sole discretion, modify the particular Masimo Product
to make it non-infringing, obtain a license to allow the continued use of the Masimo Product, or discontinue shipment of the Masimo Product to Subsidiary. 
 9.2.4 By Subsidiary. Subsidiary will defend, indemnify and hold Masimo harmless against any and all liability, loss, damages, costs or expenses which Masimo may hereafter incur, as a result of any injury,
illness or death of any person which is caused by any Masimo Product, or as a result of infringement or claims of infringement related to the Masimo Products of any patent, copyright, trademark, trade secret, or any other proprietary right of any
third party, to the extent that such injury, illness or death or infringement results from (i) any combination of the Masimo Product with items not furnished by Masimo (except where such combination is approved by Masimo (e.g. use of Masimo
circuit boards in OEM product), (ii) any inadequacy of the labeling or use-manuals for such Masimo Product (unless such inadequacy consists of inaccurate information supplied by Masimo), or (iii) any modifications to the Masimo Products
made by Subsidiary, by others, or by Masimo at Subsidiary’s request. Subsidiary shall have no liability or responsibility of any kind to Masimo under this Section unless Masimo (a) promptly notifies Subsidiary of such claims,
(b) gives Subsidiary an adequate opportunity to defend, including complete control of such defense and (c) provides reasonable assistance to Subsidiary, at Subsidiary’s expense, in connection with the defense and settlement of such
claim. Subsidiary shall have no liability for settlements made without its express written consent. Should Masimo desire to have its own counsel participate in any such action, the cost of such counsel shall be exclusively Masimo’s. 

 

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 9.2.5 Indemnity Limitations and Exclusions. Notwithstanding the above, Masimo shall not be liable
for any infringement of intellectual property rights of third parties or for any liability, loss, damages, costs or expenses which Subsidiary may incur as a result of any injury, illness or death resulting from (a) modifications to the Masimo
Products made by Subsidiary, by others, or by Masimo at Subsidiary’s request, (b) electrical/electronics, software/firmware, sensors, or product interface not furnished by Masimo, (c) combination of the Masimo Products with other
apparatus not furnished by Masimo, (d) use of products or components not supplied by Masimo, (e) use of Masimo Products in a manner not permitted by this Agreement, or (f) for any claims not related directly to the Masimo Products,
(g) any alterations or modifications to the Masimo Products which are requested by Subsidiary. MASIMO’S TOTAL AGGREGATE LIABILITY UNDER THIS SECTION 9.2 (“INDEMNIFICATION”) SHALL IN NO CASE EXCEED FIVE MILLION DOLLARS
($5,000,000). THE PARTIES AGREE THAT THIS LIMITATION OF LIABILITY IS FAIR AND REASONABLE BECAUSE MASIMO IS NOT RESPONSIBLE FOR REGULATORY APPROVALS IN THE TERRITORY AND IS NOT DIRECTLY INVOLVED IN THE SALE OR INSTALLATION OF THE PRODUCTS.

 9.2.6 Patent Defense. Subsidiary agrees that it shall notify Masimo of any claim by a third party that such third party believes
any Masimo patents are invalid. Subsidiary agrees to promptly notify Masimo of any such claim whether or not such claim is asserted in court by such third party. 
  

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

 

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