Document:

SERVICES AGREEMENT

Agreement dated as of February 8, 2000, between Hawthorne Direct Inc,
an Iowa corporation with offices at 300 North 16th Street, Fairfield,
Iowa  52556, hereinafter referred to as "Hawthorne", and Nova
Pharmaceutical, a Nevada corporation with offices at 31712 Casino
Drive, Lake Elsinore, California 9253001, hereinafter referred to as
"Client".

(1)   Hawthorne agrees to produce for Client a broadcast quality
television commercial (hereinafter referred to as "Commercial")
which will be 28:30 in length, advertising Client's weight loss
product called NxTrim (hereinafter referred to as "Product").

(2)   At Hawthorne's discretion, Client shall approve, in writing,
those elements of Commercial as identified on the Approval
Rider, Attachment A.  Hawthorne shall request Client's approval
prior to proceeding with each Commercial element as identified
on the Approval Rider.  Client shall either grant approval, or
explain why it is not doing so, on a timely basis.

(3)   Hawthorne will submit one VHS copy of the completed Commercial to
Client for approval prior to its release to any media..

(4)	Unless otherwise agreed to in writing by Client, the total cost
(excluding all talent,  travel and legal costs) of Commercial, as
contemplated by the final version of Commercial script ("
Script"), shall not exceed $200,000 ("Cost Estimate").  To the
extent the total cost (excluding talent, travel and legal costs)
exceeds $200,000 due to changes requested by Client subsequent to
the final Script approval or for schedule delays due to Product
claims substantiation, Product manufacturing requirements, or
events within Client's reasonable control, Client shall be
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responsible for such excess costs.  To the extent the total cost
exceeds $200,000 due to Hawthorne's failure to anticipate or
budget for foreseeable expenses, Hawthorne shall be responsible
for such excess costs.
 .
(5)   The terms of payment are as follows:

a.    $50,000 at the time this Agreement is signed;

b.   $70,000 upon Hawthorne's delivery of first draft of Script
to Client;

c.   $70,000 plus estimated travel and talent expenses one
business day prior to commencement of principal photography for
the Commercial; and

d.   Final balance upon delivery of final Commercial edit to
Client.

(6)   The following costs are above and beyond Cost Estimate and will
be billed to Client at Hawthorne's cost:

a.   All travel and living expenses incurred by Hawthorne
personnel (coach airfare, standard hotel rates, $50
meal per diems).

b.   All legal opinions of the Script, off-line and on-line
edits (estimated cost: $1,500 to $5,000) rendered by
attorneys with expertise in direct response television
law.

c.   All talent related costs related to the production and
subsequent airing of the Commercial including, but not
limited to:

 Talent casting, travel, wardrobe, teachers, broker fees;
Talent fees and royalties, payroll fees,
pension and welfare fees, taxes;
AFTRA/SAG talent residuals

(7)The following talent related costs will be billed to Client at
indicated rates:

Talent search/negotiation         $200/hr.
Residuals tracking/calculation    $150/13 week cycle

(8)   Client understands that Hawthorne is a signatory of AFTRA and SAG
and will contract only with AFTRA and/or SAG talent.  Client
agrees to provide Hawthorne with talent royalty statements and
render payment to Hawthorne at least five (5) business days
prior to the date on which Hawthorne is obligated to pay
royalties and fees to talent and agency, if any.

(9)   If Hawthorne causes the creation of original music for the
Commercial (hereinafter referred to as "Original Music"),
Hawthorne shall retain publishing rights and publishing
royalties in connection with Original Music. Hawthorne shall
grant to Client the non-exclusive, perpetual right to the use
of such Original Music in, and in connection with, the
Commercial. In the event that an individual or entity other
than Hawthorne purchases media time for the Commercial at any
time in the future, Client agrees to provide Hawthorne or its
designated representative a monthly media buy list which shall
be used for the exclusive purpose of obtaining royalties for
Original Music. Such media buy lists will contain the following
information, and shall be grouped by broadcast market or cable
network: name of broadcast market, station or network call
letters, date and time of airing.

(10)	For a period of two (2) years following the initial air date of
the Commercial, or for as long as the Commercial is aired on
television, whichever is longest, Client agrees to remit to
Hawthorne a Participation Fee equal to two percent (2%) of all
Net Product sales generated as a result of airing the Commercial
("Commercial Sales") and one percent (1%)  of wholesale revenues
( "Retail Sales") generated by Client or Client's agents,
subcontractors and representatives. For purposes of this
Agreement, Net Product Sales are equal to gross Product sales
       less returns and bad debts, and do not include sales taxes or
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        shipping and handling fees.

         (a)   Client agrees to remit such Participation Fees to
Hawthorne monthly by the fifteenth of the month
immediately following the month in which Client
receives Product sales revenues. Each payment made to
Hawthorne shall be accompanied by a detailed
accounting statement setting forth the number of units
of Product sold during the applicable month, the
actual selling price, shipping and handling charge,
and tax charge for each unit of Product, and the
calculation of the amount of Participation Fee shown
thereby to be due to Hawthorne for such month.

         (b)   Client grants Hawthorne the right to examine Client's
books and records related to Product sales resulting
from Commercial up to two (2) times per calendar year,
such examination to take place at Client's place of
business during normal business hours upon fifteen
(15) days written notice. Hawthorne agrees to bear the
cost of such examination except in the event that
examination discloses a discrepancy in Hawthorne's
favor of more than five percent (5%); then Client
shall bear Hawthorne's costs of such examination.

(11)   For purposes of taping Commercial, Client will provide Hawthorne
with six (6) complete Product units at no charge to Hawthorne.

(12)   Provided that Client is not in breach of this Agreement, Client
is entitled to full ownership rights to Commercial and will receive one
edit master.

(13)   Hawthorne, on an exclusive basis, will purchase, for Client,
media time for Commercial. Hawthorne will receive a commission
equal to 12% of the total gross media cost for media time that
is purchased by Hawthorne for Commercial.  Client agrees to pay
Hawthorne at least $25,000 for the Media Test and creation of
dub masters and dubs for Media Test, payment of which is to be
received by Hawthorne at least three weeks prior to the initial
telecast. Subsequent media buy costs and related commissions

will be invoiced weekly to Client by Hawthorne to meet
broadcast station and cable network (hereinafter collectively
referred to as "Stations")  payment schedules, payment of which
is to be sent via bank wire or overnight courier and received
by Hawthorne within five (5) days of receipt of invoice.
Hawthorne reserves the right to cancel media booked on behalf
of Client in the event that Client payment is not received by
Hawthorne as provided for herein. Client agrees to pay interest
at 1-1/2% per month on all media payments received by Hawthorne
more than ten (10) days after receipt of invoice.

(14)   Subsequent to the completion of the Commercial, all production
work related to airing Commercial, such as additional masters,
broadcast dubs, special edits, and shipping of dubs are
additional costs.  Hawthorne shall invoice Client at
Hawthorne's current rates set forth in Attachment B. As a
service to Client, Hawthorne will store edited Commercial
source footage, masters, sub masters, source video and audio
tapes, film transfers, and graphics discs (hereinafter referred
to as ("Source Materials") in Hawthorne's climate controlled
library. Hawthorne shall not be liable for any damage to or
loss of Source Materials by any cause including, without
limitation, fire, theft, act of God, or the negligence or other
fault of Hawthorne or its employees or agents. While Client
Source Materials are stored at Hawthorne facilities,
Hawthorne's liability is limited to the cost of a like amount
and type of blank stock only. This is the Client's sole remedy,
and recovery for any other damages is excluded, including,
without limitation, incidental or consequential damages.

(15)	Client warrants that, upon its approval, the finished Commercial
and content therein shall be truthful and not in violation of
applicable law, and that the Product will perform as indicated
within the Commercial.  Client represents and warrants that all
Products advertised or otherwise promoted in the Commercial have
received any necessary government or other approvals, and are

<PAGE>73
       legal to be advertised and sold to consumers in the United
       States or any other country where the Commercial is aired.

Client agrees to abide by all marketing guidelines as issued by
the Electronic Retailing Association ("ERA"), a current copy of
which is included as Attachment C to this Agreement.  Client
understands that Hawthorne is a member of ERA and accordingly is
required to certify to every broadcaster and cablecaster which
airs Commercial that Commercial complies with the ERA Marketing
Guidelines.  Client acknowledges that Client is solely
responsible for adequately substantiating all Product claims,
upon which Hawthorne will rely in producing Commercial, and
agrees, prior to actual taping of any portion of Commercial, to
provide Hawthorne with written substantiation of all Product
claims made in Commercial.

(16)   Client acknowledges that Hawthorne's media rates constitute the
secret and confidential information of Hawthorne giving it a
competitive advantage over others in the industry.  Client
agrees to hold such information in confidence and not to,
directly or indirectly, disclose such information to
competitors of Hawthorne or others, for any purpose.  Client
understands that any breach by Client of this Paragraph 16 may
cause Hawthorne irreparable damage, and that Hawthorne would
not be entering into this Agreement but for Client's agreement
set forth in this Paragraph 16.

(17)   Client acknowledges that it is well informed of the financial
risks associated with airing Commercial and agrees to in no way
hold Hawthorne financially responsible for degree of success
resulting from airing Commercial.  Hawthorne provides no
warranty, express or otherwise, as to the potential degree of
success to result from airing Commercial.

(18)   Client agrees to contract with Hawthorne exclusively for
Hawthorne to provide various marketing services to Client,
including but not limited to: international distribution,
television home shopping, direct response print advertising,
catalog advertising, radio, direct mail advertising, and credit
card syndication, hereinafter collectively referred to as
"Integrated Marketing Services." Specific Integrated Marketing

Services and fee structure for will be specified in a contract
that both parties agree to negotiate in good faith within sixty
(60) days of execution of this Agreement.

(19)   At Client's option and as preapproved by Client, Hawthorne will
provide account management services at Client's place of
business and/or consulting services for telemarketing,
fulfillment, computer programming and various aftermarket
opportunities. Consulting services will be billed at $125 per
hour. Any reasonable travel and living expenses incurred by
Hawthorne and preapproved by Client in connection with such
consulting will be paid by Client (actual cost of coach
airfare, standard hotel rates, local travel, $50 meal per
diem).

(20)	Client shall indemnify and hold Hawthorne and any of its
affiliates, executives and employees free and harmless from all
suits, claims, demands and other liabilities and expenses
(including, but not limited to, actual damages, punitive
damages, fines and legal fees) arising out of the airing or
other use of Commercial, and/or the Products sold as a
consequence of Commercial, whether instituted by any
governmental body, federal, state, or local, any prosecutorial
or law enforcement agency, or any other person or organization,
including, but not limited to, any FTC, FDA, or Dept. of
Agriculture proceeding or investigation, and any suit for
product liability.  Client shall obtain product liability
insurance in the amount of at least $2 million naming Hawthorne
as an insured, and shall provide a Certificate of Insurance from
the carrier to Hawthorne prior to delivery of the final tape of
Commercial.  Hawthorne shall give Client prompt written notice
of all suits and claims for infringements and an opportunity to
defend the same, at its own expense, through counsel of Client,
and to control such defense.

<PAGE>74

(20)	Hawthorne shall indemnify and hold Client and any of its
affiliates, executives and employees free and harmless from all
suits, claims, demands and other liabilities and expenses
(including, but not limited to, actual damages, punitive

damages, fines and legal fees)arising out of the production of
Commercial.  Client shall give Hawthorne prompt written notice
of all suits and claims for infringements and an opportunity to
defend the same, at its own expense, through counsel of
Hawthorne, and to control such defense.

(21)   Subsequent to completion of the Commercial, this Agreement may
be canceled by either party ninety (90) days after receipt of written
notice of such cancellation. In the event of such cancellation,
Participation Fees, as described in Paragraph 10 herein, shall be
continued to be paid to Hawthorne as provided for in Paragraph 10.

(22)   In the event of any dispute under or related to this Agreement,
both parties agree that such dispute shall be determined by arbitration
proceedings conducted in Chicago, IL, under the then current commercial
rules of the American Arbitration Association, and any award rendered
therein in favor of a party in such proceeding may be enforced in any
court of competent jurisdiction.  In the event of arbitration, the
prevailing party shall be entitled to reasonable attorney's fees and
costs.

(23)   This Agreement contains the entire agreement and understanding
between the parties regarding the subject of this Agreement,
and no modification or amendment of this Agreement shall be
effective unless contained in a written instrument signed by
both parties.

(24)   This Agreement shall be governed by the laws of the Iowa without
regard to the conflict of law provisions thereof.

(25)   Any notice under this Agreement shall be in writing sent by
telefax or overnight mail to each party at the address set
forth above.

HAWTHORNE DIRECT INC

BY:
Date
TITLE:

THE CLIENT

BY:
Date
TITLE:

CREATIVE AND PRODUCTION APPROVAL RIDER

If requested by Hawthorne, Client agrees to indicate final written
approval of various elements of Commercial by signing in the
appropriate space below and returning a copy of this Addendum to
Hawthorne. Hawthorne, at its discretion, may require signature prior to
proceeding to the next production phase of Commercial.  Client herein
designates                 as The Representative who has the authority
to, and will in a prompt manner, provide written approvals.

Commercial Element

  Approval Signature

      Date Approved

Script

Off-line edit

Final program

<PAGE>75

Attachment A

Videotape Dubbing and Editing Rates
Duplication (with no editing)

30 Minutes                 1 to 2 Minute
Programs	                      Spots

1/2" VHS Demo               $7       $5
3/4" Broadcast Dub         $30      $25
Beta Broadcast Tape        $40      $25
Beta SP Broadcast Tape     $50      $30
1" Broadcast Dub           $50      $15
Digital Beta               $75      $55
D-2                       $130      $70
Closed Captioning	       $1,100      N/A

Note:    $10 additional charge per tape for 24 hour turnaround.  Above
rates do not include shipping charges for tapes sent to or
returned from stations.

Commercial and Program Editing

30 Minute           1 to 2 Minute
Programs              Spots

Dub Master-Custom Voice Over*       $175  $36
Special Edit **                     $150  $36

*   Dub masters are created each time a new 800# is used.

**   Special edits are required for changes in show length (as
specified by certain cable networks), product price changes,
inserting special keys and crawls into the body of the show,
voice or music change, graphic tag change, etc.

DUB RATE C
Rev. 991221
Attachment B

TERMS OF BUSINESS - VIDEOTAPE DUBBING AND EDITING

ALL ORDERS FOR VIDEOTAPE DUBBING AND EDITING ARE ACCEPTED SUBJECT TO
THE FOLLOWING TERMS OF BUSINESS:

1.   PRICES:  Prices to be charged for all materials, services and
facilities shall be the prices of hawthorne direct inc
("Hawthorne") in force at the date of delivery of such items by
Hawthorne.  Prices are subject to change without notice.  All
prices are F.O.B. Hawthorne, Fairfield, Iowa.  Tapes and film
elements (hereinafter referred to as "tapes") submitted to
Hawthorne shall be suitable for use by the method employed by
Hawthorne in its commercial operations when the use occurs.  Tapes
transported to and from Hawthorne shall be at Client's risk and
expense. Local, state, federal or other governmental charges for
sales, use, manufacturing, excise and like taxes shall be added to
all Hawthorne prices.

2.   TERMS OF PAYMENT:  Client agrees to pay Hawthorne for all services
performed and invoiced to Client immediately upon completion of
services, unless specified differently in a contractual agreement
between Hawthorne and Client.  Client agrees to pay interest at 1-
1/2% per month on all accounts which are not paid when due.  Client
agrees to pay all costs and expenses, including reasonable attorney
fees incurred by Hawthorne in connection with the collection of
amounts owing to Hawthorne .  Any claims for adjustment in
connection with an invoice must be presented to Hawthorne in
writing within thirty (30) days from the date of the invoice in
question.  Client hereby waives any claim for adjustment in billing
which is not timely presented according to the provisions of this
paragraph.

3.    LIEN:  Hawthorne shall have a lien on all tapes and other
property delivered by Client to Hawthorne until the balance of the
account due to Hawthorne has been paid.
<PAGE>76

4.  	DELIVERY:  Orders will be filled as rapidly as is practical, taking
into consideration the order of service requests by Client, and
Hawthorne plant capacity; delivery dates are approximate.  If
conditions arise which prevent compliance with delivery schedule,
Hawthorne will not be liable to Client or any other person for any
losses, damages, liability or delay in delivery, nor for failure to
give notice of delay.  Without limiting the generality of the
foregoing, Hawthorne shall not be liable for any delay by reason of
events of force majeure or other causes beyond its control.

5.   LIMITATION OF LIABILITY AND LIMITATION OF WARRANTY:  Client's
tapes and other materials are handled by Hawthorne only and solely
at Client's risk, and Hawthorne shall not be liable for any loss of
or damage to such materials, or for any injury to earnings, profits
or goodwill suffered by reason of such loss or damage, from any
cause whatsoever, including but not limited to negligence,
affirmative or otherwise, of its agents, employees or persons
acting under its direction or control.  Client further understands
that Hawthorne does not carry insurance covering Client's tapes or
other property and it shall therefore be Client's responsibility,
at its own expense to insure all tapes.  In addition, Hawthorne
will not be liable for any damage or loss which occurs in transit
from Hawthorne to Client or from Hawthorne to Client's designee.
For instance, Hawthorne will not be liable for damage or loss of
tapes incurred in transit from Hawthorne to broadcast stations.  In
no event shall Hawthorne be liable for loss or damage to any tapes
delivered to it or to any tape Hawthorne delivers to Client or
Client's designee for any amount in excess of the replacement value
of the raw stock involved.

6.   EQUIPMENT FAILURE:  Hawthorne will use its best efforts to ensure
that all equipment will be in working condition. In the event of
equipment failure, Hawthorne will use its best efforts to
expediently fix faulty equipment.  However, Hawthorne will assume
no liability for delays which occur because of equipment failure.

7.   MODIFICATION:  These terms of business can only be modified by an
instrument in writing signed by an authorized representative of
Hawthorne.

"MARKETING GUIDELINES FOR ELECTRONIC RETAILERS"

The Electronic Retailing Association ("ERA") believes that consumer
confidence is the key to the continued growth and success of the
electronic retailing industry.  In order to encourage fair, ethical, and
responsible marketing practices that will promote consumer confidence in
electronic retailing, ERA has adopted the following "Marketing Guidelines
for Electronic Retailers," which apply to all television or radio
advertisements produced or disseminated by ERA members.

General Principles

ERA members should be aware of the laws and regulations that govern
advertising and marketing practices, and conduct their business in
compliance with those laws and regulations.

ERA members should encourage the companies or individuals with whom they
do business to follow the principles set forth in these Marketing
Guidelines, and should not do business with firms that engage in dishonest
or unethical business practices.

Most importantly, ERA members should tell the truth, the whole truth, and
nothing but the truth to consumers.

General Guidelines for Advertising

No ERA member shall produce or disseminate any television or radio
advertisement that has a deceptive format (i.e., that appears to be a bona
fide information or entertainment program created by a disinterested party
solely for the purpose of providing information or entertainment) or that
otherwise purports to be something other than an advertisement.

Each television or radio advertisement that is more than 15 minutes long
must be preceded and concluded with clear and prominent audio or video
disclosures that the program is a paid advertisement for [name of product
or service].  Similar disclosures also should be made prior to each
ordering opportunity.  In addition, each such advertisement should include

<PAGE>77

a clear and prominent audio or video disclosure identifying the name of
the party who sponsored, paid for or furnished the program.

All statements made in an advertisement shall be truthful and not
misleading, whether or not they are specifically made with respect to the
product or service being marketed.

Advertisements must not contain deceptive implied claims, nor omit
material information, the disclosure of which is necessary to prevent the
advertisement from being deceptive.  Any necessary qualifying disclosures
should be legible (or audible) and understandable.

Comparative advertising should inform buyers of the benefits of the
advertiser's product, and not run down a competitor's product.
Comparisons should be presented fairly and accurately rather than in a
contemptuous manner intended to degrade the competitive product.

All statements regarding prices and costs must be truthful and
substantiated.  For example, if an advertiser claims that the current
price for an advertised product is less than a former price, the former
price must be a bona fide price at which the product actually was offered
for sale.  Comparative price advertising should compare only actual prices
for comparable products and must not be otherwise misleading.  When "free"
or similar representations are made, any conditions or obligations upon
which receipt of the "free" item are contingent should be disclosed, and
the cost of the "free" merchandise should not be recovered by marking up
the regular price of the product that must be purchased in order to
receive the "free" product, or by lowering the quality or quantity of the
product that must be purchased.

Advertising should not disparage any person or group on the grounds of
race, religion, national origin, gender, age, or sexual orientation, or
include indecent or offensive content.

Particular care shall be taken in advertisements for products designed for
use by children.  Any such advertising should comply with ERA's
"Guidelines for Marketing Children's Products" and with the "Self-
Regulatory Guidelines for Children's Advertising" issued by the Council of
Better Business Bureaus' Children's Advertising Review Unit.  No program-
length commercial shall be produced primarily for an audience of children
twelve years old and under.

Claims Substantiation

There must be a reasonable basis, consisting of competent and reliable
evidence, for all express or implied objective claims made for a product
or service.

If the programming contains an express or implied representation that a
claim's truth has been scientifically established or proven, the
advertiser must possess a sufficient level of evidence to convince the
relevant scientific community of the claim's truthfulness.  At a minimum,
an advertiser should always have the amount and kind of substantiation
that it claims it has.

Particular care should be taken to substantiate health or safety claims
for products such as dietary supplements, drugs, diet and exercise
products, and medical devices.  All representations regarding the safety
or efficacy of such products or services must be substantiated by
competent and reliable scientific evidence.

Demonstrations of the product being marketed or a competing product must
not misrepresent any material feature of that product or the product's
actual performance in real-life conditions.  All demonstrations must
actually take place as represented or the details of the demonstration
(such as the actual elapsed time) must be disclosed.

Comparative advertising claims, whether about a competing product or the
advertiser's own product, must be truthful and substantiated in the same
manner as any other objective claim.  Comparative tests and demonstrations
of competing products must take into account the purpose for which the
products are intended, the manner in which they are normally used by the
consumer, and the instructions for use that accompany the products.
Testimonials and Endorsements

Testimonials and endorsements may not make representations that would
be deceptive or could not be substantiated if the advertiser made them
directly.

<PAGE>78

All testimonials from consumers shall reflect the honest opinions,
findings, beliefs or experiences of the consumer and be generally
representative of the results to be expected by the average consumer.
Alternatively, the advertiser may clearly and prominently disclaim that
the experiences of the consumer offering the testimonial are not
representative of the results to be expected by the average consumer, or
disclose what results the average consumer can expect.

If an advertisement represents that an endorser uses the endorsed product,
then the endorser must have been a bona fide user of the product at the
time the endorsement was made.  The advertiser should not continue to use
an endorsement without reason to believe that the endorser remains a bona
fide user of the product.

When an advertisement represents that an endorser is an expert, the
endorser's qualifications must in fact give him or her the expertise that
he or she is represented as possessing.  An expert's endorsement must be
supported by an actual evaluation, examination or testing of the product
or service he or she is endorsing that is at least as extensive as an
expert in that field would normally conduct in order to support the
conclusions presented in the endorsement.  An advertiser should not
continue to use an expert endorsement without reason to believe that the
views expressed in the expert's endorsement continue to represent his or
her views.

Any "material connection" between an advertiser and an endorser that is
not reasonably expected by the audience and that would have  a significant
effect on the weight or credibility given to the endorsement by that
audience - e.g., a family or business relationship - must be disclosed.
(Audiences expect expert or celebrity endorsers to be compensated, so
payments to expert or celebrity endorsers need not be disclosed.)

Disclosure of Costs and Other Material Terms of an Offer

The terms of an advertised offer should be sufficiently clear and complete
so that the average consumer will understand what is being offered, what
it costs, and what his or her ongoing commitments or obligations are, if
any, prior to purchase of the advertised product or service.  The
advertiser should make it clear if accessories or other items depicted or
mentioned in an advertisement are optional and not included in the
advertised price.  All costs related to an offer (including postage and
handling, taxes, etc.) must be disclosed.

Offers involving continuity programs should comply with ERA's "Guidelines
for Continuity Programs."  The material terms and conditions of a
continuity program must be conveyed to consumers before their orders are
accepted.

The cost of calling an advertised 900 number or an audiotext service
must be clearly and prominently disclosed in advertising.  Callers to a
pay-per-call service should hear an introductory disclosure message, or
"preamble," at the beginning of their calls that discloses the cost of
the call and contains the other disclosures prescribed by law, and
should be given the opportunity to terminate the call during the
preamble without incurring any charge.  Members should not place any
charges on telephone bills when they know or should have known that the
charge was not authorized by the consumer responsible for paying the
telephone bill.

Warranties

Advertising claims relating to a product warranty must be truthful and
consistent with the terms of that warranty, and the advertiser should
disclose any material conditions, limitations, or charges relating to the
warranty.  Any warranty offered with a consumer product should be properly
designated as "full" or "limited," and should contain the basic
information required by law (e.g., what the warranty covers and does not
cover, what the period of coverage is, what the warrantor will do to
correct problems, how the customer can obtain warranty service, and how
state law affects the customer's rights under the warranty).  Any requests
for repairs, replacement products, or refunds under the terms of a
warranty should be honored promptly.

A copy of the warranty must be made available free of charge to any
consumer who requests one in writing, and advertisements that mention a
warranty should tell consumers how to obtain a copy of that warranty.

Order Fulfillment, Money-Back Refunds, and Collection and Use of
Personal Information
<PAGE>79

An ERA member should not advertise and offer merchandise for sale
unless it has a reasonable basis to believe that it will be able to
ship that merchandise within the time specified in the offer (or, if no
time is specified in the offer, within 30 days after receipt of an
order).  A member should not charge a customer's credit card account,
debit a customer's checking account, or cash a customer's check or
money order until the order is shipped.  If after receiving an order
the marketer learns that the product cannot be shipped on a timely
basis, it should notify its customers of that fact, allow them to
cancel their orders if they wish, and make any necessary refunds
promptly.  A marketer should not substitute merchandise that materially
differs from that ordered by a customer unless the customer agrees to the
substitution.

A marketer who offers a satisfaction or "money-back" guarantee to its
customers should honor valid refund requests promptly.  Any advertisement
that mentions a money-back guarantee should disclose any material
limitations or exceptions that may apply to that guarantee (e.g., "less
shipping and handling").  Any marketer who offers a money-back guarantee
should maintain an adequate reserve or otherwise ensure the availability
of funds to satisfy refund requests.

An ERA member who offers consumers a "free trial" of an advertised product
should not charge the customer's credit card, debit his or her checking
account, or cash his or her check or money order until the free trial
period has expired.

A marketer should provide its customers with an address and/or telephone
number to use to communicate any complaints, inquiries, or refund
requests, and should take all reasonable steps to respond to such
complaints, inquiries, or refund requests promptly and courteously.

<PAGE>80

ERA members who collect personal information from consumers should not
misrepresent the purposes to which that information may be put.  If a
consumer requests that his or her personal information not be rented,
sold, or exchanged by a member, that request should be honored.  A member
should not rent, sell, or otherwise provide a consumer's credit card
number, checking account number, or similar information to a third party
(other than a third party who assists the member to process or complete
authorized purchases or other transactions) without the consumer's express
authorization.

Self-Certification/Enforcement

Subscription to these Marketing Guidelines is a condition of ERA
membership.  Members shall have the right to certify their compliance
with these guidelines to members of the general public and the media.
Willful violation of the Marketing Guidelines is a basis for expulsion
from the Association.Exhibit  10.1

                         PURCHASING  AND  LICENSING  AGREEMENT

                                         BETWEEN

                         ISLAND  CRITICAL  CARE  CORPORATION

                                          AND

                                  MASIMO  CORPORATION

                                 DATED  MAY  5,  1998

                                       EXHIBITS
Exhibit  A.  MASIMO  SET  Definition
Exhibit  B.  Trademarks,  Legend,  Logos
Exhibit  C.  List  of  Patents  and  Patent  Applications
Exhibit  D.  Price  of  Products
Exh1oit  E.  Specifications  for  Products
Exh1oit  F.  End-User  License  Agreement

                     PURCHASING  AND  LICENSING  AGREEMENT
THIS  PURCHASING  AND LICENSING AGREEMENT ("Agreement") is made and entered into
as of this 5th day of May, 1998, by and between ISLAND CRITICAL CARE CORPORATION
a  Canadian  corporation ("ICC"), having a principal place of business at 100-10
Camelot  Drive,  Nepean,  Ontario,  Canada  K2G  5X8  and  MASIMO CORPORATION, a
Delaware  corporation  ("MASIMO"),  having a principal place of business at 2852
Kelvin  Avenue,  Irvine,  California  92614  with  reference  to  the following:

RECITALS:
---------

A.  MASIMO  has developed a new technology known as Signal Extraction Technology
("MASIMO  SET"  as  defined  in EXHIBIT A) MASIMO SET 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.  ICC is a manufacturer of medical equipment and desires to incorporate MASIMO
SET  for  SpO2  Measurement  into  its medical equipment for distribution by ICC
throughout  the  world.

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

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

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

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

1.1  Accessory  means  cables (including, but not limited to the MASIMO PC08 and
PC12,  8  ft.  and 12 ft. patient cables) or any other accessory manufactured by
MASIMO  and  used  with  any  of  the  SpO2  Sensors  or  Licensed  Devices.

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

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

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

1.5 Licensed Devices means ICC's completed patient monitor devices incorporating
    ----------------
MS  Boards to provide one or more of the following results when combined with an
SpO2  Sensor:
     (i) arterial blood oxygen saturation (using MS Boards to account for Hb and
HbO2 only); (ii) pulse rate and/or plethysgmographic waveforms. Licensed Devices
shall not include any methods or devices other than the MS Boards for accounting
for  Hb  and  HbO2  in  arterial  blood  oxygen  saturation.  Licensed
Devices  specifically excludes all Fetal Oximetry applications and venous oxygen
saturation  applications.

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

1.7 MASIMO Confidential Informationmeans information and proprietary material of
    -------------------------------
MASIMO disclosed to ICC and includes, but is not limited to, the following types
of  information  and  other  information  of  a similar nature: ideas, concepts,
materials,  techniques,  models,  data,  designs,  documentation,  flow  charts,
budgets,  projections,  forecasts,  marketing  and development plans, the Masimo
Technology,  the  Software,  communication  protocols,  and  testing procedures.

1.8  MASIMO  Technology  means  technical  information,  inventions,  concepts,
     ------------------
techniques, products, components, concepts, trade secrets, know-how, techniques,
designs,  processes,  communications protocols, the Software, whether patentable
or  not,  patent  applications,  copyright  applications, the Patent Rights, and
copyrights  and  all  other  intellectual property rights relating to MASIMO SET
alone  or  incorporated  in  MS  Boards,  SpO2 Sensors, Improvements and related
documentation  generated  prior  to  or  pursuant  to  this  Agreement.

1.9  MS  Board  means MASIMO's standard circuit board or chip set which contains
     ---------
MASIMO  SET and algorithms necessary to process the information transmitted from
the  SpO2  Sensor  and  convert  it  into  SpO2  Measurements.

1.10  Party  means  ICC  or  MASIMO;  Parties  means  ICC  and  MASIMO.
      -----

1.11  Patent  Right means all patents owned by MASIMO on technology developed by
      -------------
MASIMO  which  cover  SpO2  Measurement  in Licensed Devices. The present patent
numbers  and  patent  application are set forth on Exh1"bit C to this Agreement.

1.12  Products  are  MS  Boards,  SpO2  Sensors  and  Accessories.
      --------

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

<PAGE>
1.14  Software  means  any  and all computer/instrument software and/or firmware
developed  by  MASIMO  that  is  used  or  useful  in  connection  with MASTh.10
Technology.

1.15  SpO2  Measurements  means  noninvasive  measurement  of  arterial  oxygen
      ------------------
saturation  (in  any  embodiment  that accounts for at least Hb and HbOz) and/or
pulse  rate  from  neonate,  pediatric  and  adult  subjects  (excludes  fetal
measurement  and  venous  oxygen  saturation).

1.16  SpO2 Sensor means reusable and disposable MASIMO standard adult, pediatric
      -----------
or neonatal sensors for use with making SpO2 Measurements. Standard SpO2 Sensors
currently  manufactured  by  MASIMO  have  the  following  model  numbers:

     LNOP  .Neo-pt;     Disposable  Neonatal  Sensor  (pre-  Term)
     LNOP  .Neo;        Disposable  Neonatal  Sensor
     LNOP  .Adt;        Disposable  Adult  Sensor
     LNOP  .Pdt         Disposable  Pediatric/Slender  Digit  Sensor
     LNOP  .DC1;        Reusable  Adult/Pediatric  Digit  Clip  Sensor

MASIMO  intends  to  produce  additional standard models of the SpO2 Sensors. As
MASIMO  produces such additional models, the Parties agree to negotiate in go,Dd
faith  their  inclusion  in  this  agreement.

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

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

2.  Licenses  Granted
  -------------------

2.1  Licenses  Granted  to  Licensee.

     2.1.1  MASIMO grants to ICC a personal, non-transferable, and non-exclusive
worldwide  license  to  incorporate  the MS Boards into the Licensed Devices, to
demonstrate  Licensed  Devices,  and to distribute Licensed Devices to End-Users
and  Distr1"butors.  This license includes the right to ICC to have the Licensed
Devices  manufactured  by  a third party for ICC; however, such Licensed Devices
may  only  be  supplied  to  the  marketplace  with ICC's or ICC's Distributors'
private  label and logo exclusively and distributed exclusively through ICC's or
its  Distr1"butors'  distribution  channels.  In  addition, a third party making
Licensed  Devices  for  ICC  may  not  also  be  a  Distributor.

     2.1.2  ICC agrees that it will not reproduce or disclose to any third party
any  portion  of the Software and that it may transfer copies of the Software in
object  code  form  only,  and only in conjunction with a transfer of a Licensed
Device  to  End  Users  and  Distr1"butors.  ICC agrees to include a copy of the
End-User  License  Agreement  attached  hereto  as  Exh1"bit F with all Licensed
Devices,  and agrees that it will require all Distr1"butors to include a copy of

<PAGE>
the  End-User  License  Agreement  attached  as  Exh1"bit F with the transfer of
Licensed Devices to End Users. If ICC enters a signed agreement with an End User
or  Distr1"butor, ICC also agrees to attach the End-User License Agreement as an
exhibit  and  include  the following clause or a substantially similar clause in
the  signed  agreement:

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

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

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

2.2  Limitation  of  Licenses  Granted
     ---------------------------------

     2.2.1  No  license  is  granted under this Agreement with respect to the MS
Boards  and  Masimo  Technology  other  than as integrated parts of the Licensed
Devices.  ICC shall not have the right to manufacture MS Boards, SpO2 Sensors or
Accessories  or  any circuitry or software that performs the functions of the MS
Boards  for  the  Licensed  Devices.

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

     2.2.3  Nothing  in this Agreement shall be construed to grant any rights to
ICC  in  fetal  oximetry, venous oximetry or any other application of MASIMO SET
other than the use of Licensed Devices to make SpO2 Measurements, and nothing in
this  Agreement  shall  be construed to grant any rights to ICC to distribute or
otherwise  market  MS  Boards  or  MASIMO  SET  separate  from Licensed Devices.

2.3  Trademarks,  Legends  and  Logos.
     ---------------------------------

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

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

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

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

     2.3.3  Quality  Control  In order for ICC to maintain its trademark license
            ----------------
hereunder,  ICC  agrees that the Licensed Devices bearing the Licensed Trademark
shall  be  of  a  high standard of quality, at least as high as ICC's historical
products,  so as to protect and enhance the goodwill pertaining to the MS Boards
and  SpO2  Sensors.  MASIMO  has  the  right  to  inspect  the manufacturing and
distribution  points of ICC for the Licensed Devices, at any reasonable time, to
ensure  the  ongoing  quality of the Licensed Devices. Should MASIMO at any time
determine  that  the  quality of any Licensed Device does not adhere to MASIMO's
quality  standards,  MASIMO  will  provide written notice to ICC. ICC shall have
three months from such notice to bring the quality of such Licensed Device up to
standard  or  to  cease  any further use of the Licensed Trademark in connection
with  the  promotion  or sale of such Licensed Device until MASIMO has indicated
that  it  is  satisfied  that the deficiencies in quality of the Licensed Device
have  been  corrected.

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

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

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

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

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

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

<PAGE>
3.  ICC  COMMTTMENTS/LICENSE  FEE
    -----------------------------

     3.1  ICC  agrees  to  purchase  all  Products  from  MASIMO.

     3.2  ICC  agrees  that it will not sell or otherwise market SpO2 Sensors or
Accessories  to  any  person  or entity who currently has or subsequently enters
into  an  agreement  with  MASIMO.

     3.3  Best Efforts ICC agrees to use its best efforts to make MASIMO SET its
          ------------
primary  pulse  oximetry  technology,  including, but not limited to integrating
MASIMO SET into its products which include SpO2 Measurement and by promoting the
sale  of  such  Licensed  Devices over devices for SpO2 Measurement which do not
incorporate  MASIM  O  SET.

     3.4  Integration  Commitment  ICC  agrees that Licensed Devices exclusively
          -----------------------
containing  MASIMO  SET  for  arterial  oxygen  saturation  measurements  will
constitute  at  least eighty percent (80%) of ICC's annual shipments of products
which provide arterial oxygen saturation measurements beginning in year three of
this  Agreement  and  beyond.  In addition, ICC; agrees to exclusively integrate
Masimo  Technology  in  100%  of  its  future  instruments  which  include  SpO2
Measurement.  The requirements of this paragraph are collectively referred to as
the  "Integration  Commitment".

     3.5  Sensor Commitment ICC agrees that it will not sell or otherwise market
          -----------------
any  products  for SpO2 Measurement with License Devices except SpO2 Sensors and
Accessories  purchased  from  MASIMO.  Furthermore,  ICC  agrees to use its best
efforts  to  sell  SpO2  Sensors only into ICC Licensed Device installations and
only  for  use  on  instruments  with  ICC's  label.

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

     3.7  Engineering  Support  MASIMO  will  provide  customary  and reasonable
          --------------------
integration  support  without  charge,  at  Masimo's discretion, for one attempt
through  Masimo's  validation  testing,  for each Licensed Device. If additional
engineering support is required to complete MASIMO'S validation testing, MASIMO,
at  its  discretion,  may  provide  such  engiJ1eering  support  to  ICC for the
integration of MASIMO SET into Licensed Devices, at a cost of$150.00 per hour It
is contemplated that each additional attempt through Masimo's validation testing
costs  approximately  $10,000  in  engineering  support.  All  services shall be
provided  at  MASIMO's  facility  unless  travel is required. in which event ICC
shall  additionally  pay  for  necessary  travel  expenses even during the first
attempt  through  MASIMO's  validation  testing.

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

<PAGE>
3.9  License Fee. ICC shall pay a license fee to MASIMO in the amount of $25,000
     ------------
payable  upon  execution  of  this  Agreement.

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

     3.11  Quarterly  Accounting.  ICC agrees to provide MASIMO with a Quarterly
           ----------------------
Accounting  of  total pulse oximetry product shipments, its shipments containing
MASIMO  MS  Boards  exclusively  and  other  shipments containing other means of
providing  pulse  oximetry,  and  its  shipments  of  SpO2  Sensors.

4.  PURCHASE  AND  SALE
    -------------------

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

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

     4.3  Contents.  All  Purchase  Orders  submitted  by  ICC  shall  state the
following:  (i) price, (ii) the quantities ordered, (iii) the requested delivery
dates,  (iv) destination, (v) requested method of shipment, (vi) model number of
the  Products  and  (vii) intended regional destination ordered SpO2 Sensors, in
accordance  with  the  terms and conditions hereof. Any language on the Purchase
Order of ICC or acknowledging form of MASIMO which is inconsistent with any term
or  provision  hereof  shall  be  void  and  without  any  force  or  effect.

     4.4  Initial  Commitment.  The  first Purchase Order submitted by ICC, will
          --------------------
include  firm  quantities  for  the  first  six (6) months of shipment which are
contemplated  to  begin  in  October,  1998.

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

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

5.  PRICES  AND  PAYMENT
    --------------------

     5.1  Price.  MASIMO's  transfer prices for the Products delivered to ICC in
accordance  with  the terms of this Agreement shall be as set forth on Rxh1n;t n
attached  hereto.  All  prices  are  F  .O.B. MASIMO's manufacturing facility or
distribution  point The transfer price for SpO2 Sensors and Accessories includes
packaging  and  labeling  with  ICC-supplied  artwork  and  logos complying with
MASIMO's  Standard  Packaging  Guidelines.  The  transfer price does not include
custom  packaging  or  labeling  for  SpO2 Sensors, Accessories or MS Boards. If
custom  labeling  for  SpO2  Sensors  or  Accessories is desired and feasible as
determined  by  Masimo,  all costs associated with such labeling will be paid by
ICC.  Payment  by ICC to MASIMO shall be made thirty (30) days following receipt
of  invoice  by  ICC.

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

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

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

     5.5  Taxes  and  Levies. All payments by ICC to MASIMO under this Agreement
          -------------------
are  exclusive  of  taxes  and  ICC  shall  be responsible for paying all taxes,
including  but  not  limited  to,  all  sales,  use, personal property, customs,
duties,  assessments,  levies  and other governmental impositions of any nature.

     5.6  Obsolete  Packaging  Inventory  Should  ICC  request  changes to ICC's
          ------------------------------
current  packaging  materials  for  Products  (including but not limited to SpO2
Sensor pouches, boxes and directions for use), ICC will reimburse MASIMO for the
direct  cost  of  the  obsolete  packaging  materials,  up  to $20,000, for each
occurrence.

6.  DELIVERY
    --------

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

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

     6.3  Delivery.  MASIMO  shall use reasonable commercial efforts to fill all
          ---------
Purchase  Orders by delivery dates and in the quantities specified by ICC in its
Purchase  Orders.  Notwithstanding the above, MASIMO shall have no obligation to

<PAGE>
deliver  in  less  than  ninety  (90)  days  from  confirmation.  If  a Purchase
Order  by  ICC  calls  for  more than a 25% increase as compared to the previous
3-month average of Products ordered, on a product-by-product basis, MASIMO shall
use  reasonable  commercial  efforts  to deliver an amount at least equal to the
previous  three  month average within ninety (90) days, and shall use reasonable
commercial  efforts  to  ship  the  remainder  within 120 days of receipt of the
Purchase  Order.

7.  COMPATIBILITY
    -------------

     7.1  Sensor Compatibility. ICC agrees that its Licensed Devices will not be
          ---------------------
configured  to  operate  with  oximetry  sensors  other than Masimo SpO2 Sensors
specifically  authorized  by  MASIMO  for  use  with  Licensed  Devices  of ICC.

     7.2  Instrument Compatibility.  ICC agrees that it will not market oximetry
          -------------------------
instrument(s),  or  any  other  device(s)  or  accessory(ies),  except  Licensed
Devices,  that  operate  with  or  are  compatible with any MASIMO SpO2 Sensors.

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

     7.4  MASIMO  Probes.  ICC agrees that the MS Boards are designed to be used
          ---------------
with  SpO2 Sensors only, and that if ICC uses sensors by other manufactures that
the  MS  Board  may  yield  different  results.  Accordingly, MASIMO SET will be
enabled  for  SpO2  Sensors  only. ICC agrees to use its best efforts to provide
that  its customers not use SpO2 Sensors with technology other than MS Boards in
Licensed  Devices.  ICC  agrees  not  to  configure or to instruct others how to
configure  any devices other than Licensed Devices to be used in connection with
SpO2  Sensors.

8.  INSPECTION  AND  ACCEPTANCE
    ---------------------------

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

     8.2  TCC  Inspection
          ---------------

     8.2.1  ICC  may  inspect  the Products upon receipt Products which fail (as
defined  only  as  a  failure  under statistical lot sampling standard ANSI/ASQC
Zl.4:1993  AQL  1.0, General Inspection Level 1). Any of the Products or lots of
Products  ("Lot")  which materially fail to meet the specifications set forth in
Exhibit E may be rejected by ICC and returned to MASIMO for replacement Prior to
returning  any Products to MASIMO, ICC shall notify MASIMO by facsimile that ICC
has  rejected  the Products, inclusive of the reason or basis of such rejection.
Within  five  (5)  working  days of the receipt of the notification, MASIMO will
issue  a "Return to Vendor" ("RTV") number to ICC by facsimile, which RTV number
will  be  ICC's  authorization  to  return  the  Products.

<PAGE>
     8.2.2  ICC  shall  promptly  notify  MASIMO  of  any  incoming Lot failure.
Products  which  do  not conform to MASIMO's specifications shall be returned by
ICC  to  MASIMO  freight  collect and insured for full replacement value. Within
twenty  (20)  days  after  the  date of receipt of the nonconforming Products by
MASIMO,  replacement  Product will be shipped to ICC at MASIMO's expense. Should
MASIMO  fail to replace rejected Products by shipping conforming Products to ICC
within  thirty (30) days of its receipt of the nonconforming Products, ICC shall
have  the  option  to  cancel  without  cost  or  liability the purchase of such
Products  and  receive,  at ICC's option, a credit or rebate if payment has been
made.  ICC  shall pay freight charges, insurance and other1customary charges for
transportation  for  improperly  rejected  Products.

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

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

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

9.  CONFIDENTIALITY
    ---------------

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

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

     9.3  Confidentiality  Exemptions. Neither party's obligations under Section
          ----------------------------
9.2  shall  not  apply  to  information  that:

     9.3.1  prior  to  the  transmittal  was  of  general  public  knowledge;

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

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

     9.3.4  is  made  public  by  the  Party  claiming  confidentiality  or

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

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

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

     9.4  Injunctive Relief.  The Parties acknowledge that (a) the covenants set
forth  in  this  Article  9  ("CONFIDENTIALITY")  are essential elements of this
Agreement  and  that,  but  for the agreement of the parties to comply with such
covenants, the Parties would not have entered Agreement; (b ) neither party will
have  any  adequate  remedy at law if the other party violates the tem1S of this
Article  9  ("CONFIDEN11ALI1Y");  and  (  c) each party shall have the right, in
addition  to  any  other rights it may have, to obtain in any court of competent
jurisdiction  temporary, preliminary and permanent injunctive relief to restrain
any  breach, threatened breach, or otherwise to specifically enforce any, of the
covenants  in  this  Article  9  ("CONFIDENTIALI1Y") if the other party fails to
perform  any  of  such  covenants  under  this  Article  9 ("CONFillEN11ALITY").

     9.5  Press  Release.  MASIMO  and  ICC agree to issue a joint press release
          ---------------
announcing the existence and general content of the Agreement upon completion of
this  Agreement.  Except for the press release, neither Party shall, without the
other's  prior  written  approval,  disclose  any  terms of this Agreement. This
provision  shall  not  be  interpreted  to  bar  either  Party  from  making any
disclosure  required  of it by law, but if such disclosure includes the tem1S or
provisions  of  this  Agreement,  then  the  other  Party  shall  be  given  the
opportunity  to  review  the  disclosure  prior  to  its  release.

10.  PROPRIETARY  RIGHTS
     -------------------

     10.1  MASIMO  Inventions and Improvements.Any Improvement made by ICC, made
           ------------------------------------
jointly  by  ICC and MASIMO, or made solely by MASIMO shall be the sole property
of  MASIMO, and MASIMO has the right to apply for copyrights, patents (including
utility  and  design  patents),  or  other  protection for intellectual property
rights  anywhere in the world under its own name and at its own expense. If such
invention  or  Improvement is owned by MASIMO and is applicable to the MS Boards
for SpO2 Measurement, SpO2 Sensors or Accessories, and if ICC has, and continues
to  meet the Integration Commitment and its obligations under Section 3.3 ("Best
Efforts"),  MASIMO  will  grant  ICC,  without  additional  compensation,  a
non-exclusive,  non-transferable  license to use such Improvement to incorporate
the  MS  Boards having the Improvement into the Licensed Devices, to demonstrate
Licensed  Devices  and  to  distribute  Licensed  Devices  to  End  Users  and
Distributors.

     10.2  ICC Inventions.  Subject to the license rights granted to ICC herein,
MASIMO retains all right, title and interest in and to Masimo Technology and all
Improvements.  If  ICC  makes  any  Improvement,  ICC  shall,  and  hereby does,
transfer  all right, title and interest in and to all such Improvements, whether

<PAGE>
or  not  they  have  application  to  MASIMO.  ICC agrees that it shall promptly
notify  MASIMO  of any Improvement and disclose such Improvement in detail.  ICC
agrees  that  it  shall  take all actions and execute all documents, at MASIMO's
expense  and  as MASIMO may reasonably request, to effectuate the acknowledgment
of MASIMO's ownership contained herein and the vesting in MASIMO of complete and
exclusive ownership of any Improvement.  ICC shall, at MASIMO's expense, secure,
maintain and defend for MASIMO's benefit all rights therein, including the right
to  submit  any  patent,  copyright  or  trademark  application or registration.

11.  WARRANTY
     --------

     11.1  MASIMO  Warrant
           ---------------

     11.1.1 MASIMO warrants the MS Boards supplied by MASIMO to ICC under normal
use  and  care for a period of twelve (12) months following receipt by ICC to be
free  from  defects  in workmanship or material and to be in material conformity
with  MASIMO's  specifications.  Masimo  bears  all  replacement costs if MASIMO
reasonably determines that the unit must be replaced under this Warranty.  Units
returned  to  MASIMO  for  warranty  repairs  shall be shipped to MASIMO freight
collect  according  to  MASIMO's  instruction.  Within  thirty  (30) days of the
receipt  of  MS Boards, MASIMO shall replace or repair such units and shall ship
them  to  ICC's  designated  return  destination freight prepaid.  The foregoing
warranties  extend  to  the  MS  Boards  returned  by  ICC's  customers.

     11.1.2  MASIMO  warrants  that  for  a  period of six ( 6) months following
receipt  by ICC, the re-usable probes LNOP.DC1, the PC08 and PC12 product cables
supplied  by  MASIMO to ICC will be, under normal use and care, free to ICC from
any  defect  in  workmanship  or  material and to be in material conformity with
MASIMO's  specifications. MASIMO bears all replacement costs under this warranty
if  MASIMO  reasonably  determines  that  the  unit  must be replaced under this
Warranty.  Units  returned  to  MASIMO  for warranty repairs shall be shipped to
MASI;MO  freight  collect  according to MASIMO's instruction. Within thirty (30)
days of the receipt of reusable probes MASIMO shall replace or repair such units
and  shall ship them to ICC's designated return destination freight prepaid. The
foregoing  warranties  extend  to the covered items returned by ICC's customers.

     11.1.3  MASIMO  warrants  that  for  a period of three (3) months following
receipt  by  ICC,  and only on first use, the disposable probes (e.g., LNOP.Neo,
LNOP.NeoPt  LNOP.Pdt  and LNOP.Adt) supplied by MASIMO to ICC hereunder will be,
under  normal  use  and  care,  and only upon first use, free from any defect in
workmanship  or  material  and  to  be  in  material  conformity  with  MASIMO's
specifications  therefore.  Masimo  bears  all  replacement  costs  under  this
warranty  if  MASIMO  reasonably determines that the unit must be replaced under
this  Warranty.  Units  returned to MASIMO for warranty repairs shall be shipped
to MASIMO freight collect according to MASIMO's instruction.  Within thirty (30)
days  of  the  receipt of disposable probes, MASIMO shall replace or repair such
units  and  shall  ship  them  to  ICC's  designated  return destination freight
prepaid.  The foregoing warranties extend to the covered items returned by ICC's
customers.

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

<PAGE>
     11.2  Limitation  of Liability. Except for the express warranties set forth
           -------------------------
above,  Masimo grants no warranties, either express or implied, on the products,
including all implied warranties of merchantability and fitness for a particular
purpose,  and  the  stated  express  warranty  is  in lieu of all liabilities or
obligations  of Masimo for damages, including, but not limited to, consequential
damages  occurring  out of or in conjunction with the use or performance of such
unit  of  products.  In  no event shall Masimo be responsible for consequential,
incidental,  special  damages,  loss of profit, or expense suffered by the other
party  in  connection  with  this  agreement.

12.  INDEMNIFICATION
     ---------------

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

     12.2  By  Masimo-Bodily  Injury. MASIMO will defend, indemnify and hold ICC
           --------------------------
harmless  against  any and all liability, loss, damages, costs or expenses which
ICC  may  hereafter  incur,  as  a result of any injury, illness or death of any
person  which  is caused by any Product, to the extent that such injury, illness
or death resulted from (i) MASIMO's design or manufacture of the Masimo Products
or  (ii)  failure  of  the  Masimo  Products  at  the time of shipment to ICC to
materially  comply  with  the  specification  of Exhibit E. MASIMO shall have no
liability or responsibility of any kind to ICC under this Section unless ICC (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
ICC  desire  to have its own counsel participate in any such action, the cost of
such  counsel  shall  be  exclusively  ICC's.

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

<PAGE>
     12.4  By  TCC.  ICC will defend, indemnify and hold MASIMO harmless against
           --------
any  and  all  liability,  loss,  damages,  costs  or  expenses which MASIMO may
hereafter incur, as a result of any injury, illness or death of any person which
is  caused  by  any Licensed Device, or as a result of infringement or claims of
infringement  related  to  the  Licensed  Devices  of  any  patent,  copyright,
trademark,  trade  secret, or any other proprietary right of any third party, to
the  extent  that such injury, illness or death or infringement results from (i)
any portion of the Licensed Devices which is supplied to ICC by any person other
than  MASIMO,  (ii)  any  combination of the Product with items not furnished by
MASIMO,  (iii)  any  inadequacy of the labeling or use-manuals for such Licensed
Device  or  SpO2  Sensors  (unless  such  inadequacy  consists  of  inaccurate
information  supplied  by MASIMO), (iv) any act or omission to act of ICC or any
party other than MASIMO who designed or manufactured any portion of the Licensed
Devices,  or  (v) any modifications to the Products or MASIMO Technology made by
ICC,  by  others  or  by MASIMO at ICC's request. ICC shall have no liability or
responsibility  of  any  kind  to  MASIMO  under  this Section unless MASIMO (a)
promptly  notifies  ICC of such claims, (b) gives ICC an adequate opportunity to
defend,  including  complete control of such defense and (c) provides reasonable
assistance  to  ICC,  at  ICC's  expense,  in  connection  with  the defense and
settlement  of  such  claim.  ICC  shall  have no liability for settlements made
without  its  express  written  consent.  Should  MASIMO  desire to have its own
counsel  participate  in  any  such  action,  the  cost of such counsel shall be
exclusively  MASIMO's.

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

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

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

13.  REGULATORY  COMPLIANCE
     ----------------------

     13.1  ICC shall be solely responsible for identifying and obtaining, at its
sole cost and expense, all FDA and United States safety agency approvals and any
other  agency  or  regulatory  approvals which are required for the development,
manufacture  or  sale of the ICC Products. MASIMO will reasonably cooperate with
ICC  by  providing at no charge to ICC any MASIMO data in its possession that is

<PAGE>
reasonably  required  to  obtain  the  regulatory  approvals,  including but not
limited  to  51  O(k)  application  materials  submitted  by  MASIMO for its own
products  that  incorporate MASIMO SET. Disclosure by ICC of any such data shall
be  subject  to  the confidentiality provisions of Article 9 ("CONFIDENNALITY").

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

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

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

14.  INCIDENT  REPORTING
     -------------------

     14.1  MASIMO  REPORTING.  MASIMO  represents and warrants that all Products
           ------------------
manufactured  and  sold  to ICC pursuant to this Agreement shall be manufactured
materially  in  conformance  with  all applicable requirements of the FDA and in
accordance  with all United States federal, state and local statutes, ordinances
and  regulations,  including,  but  not  lin1ited to, the Federal Food, Drug and
Cosmetic  Act  (21  U.S.C.  301  at  seq.).

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

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

<PAGE>
15.  TERM  AND  TERMTNATION
     ----------------------

     15.1  Term.  This Agreement shall become effective as of the effective date
first  set  forth  above,  and  shall  remain  in  effect  for  ten  (10) years.
There;1fter,  this  Agreement  is  renewable  for  one-year  periods with mutual
consent.

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

     15.3  Termination  on Insolvency. Either Party may terminate this Agreement
           ---------------------------
at  any time upon or after the f11ing against the other Party by any third party
of  a  petition  in  bankruptcy or insolvency, or upon or after any adjudication
that  the  other  Party  is  insolvent. or upon or after the filing by the other
Party  of  any  petition  or  answer  seeking  reorganization.  readjustment  or
arrangement  of  the  business  of  the  other  Party  under any law relating to
bankruptcy  or  insolvency,  ,or upon or after the appointment of a receiver for
all or substantially all of the property of the other party of any assignment or
attempted  assignment  for  the  benefit  of  creditors,  or  upon  or after the
institution  of  any  proceedings for the liquidation or winding up of the other
Party's  business.

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

16.  DISPUTE
     -------

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

<PAGE>
17.  MISCELLANEOUS
     -------------

     17.1  Annual  Review.  The Parties agree to meet annually to review product
           ---------------
development,  marketing  plans  and  contract  status.  Meeting  locations  will
alternate  between  MASIMO'S  and  ICC's  facilities.

     17.2  Nonassignability.  Except  in  connection  with  the  sale  ofa11  or
           -----------------
substantially all of the assets or business of ICC, ICC may not assign, transfer
or sublicense any of the rights or obligations under this Agreement, without the
prior  written  consent of MASIMO. For any successor or assign of lCC that is in
the  pulse oximetry business, ICC sbal1 promptly notify MASIMO of such successor
and such successor shall acquire ICC's interest in this Agreement, unless MASIMO
objects  to  such  successor  within 30 days of notice. MASIMO may freely assign
this  Agreement  This  Agreement  will  inure  to  the  benefit  of  and
bind  each  Party's  successors  and  assigns.

     17.3  Failure to Enforce The failure of either Party to enforce at any time
           ------------------
or  for  any  period  of  time  the  provisions  of  this Agreement sbal1 not be
construed  to  be  a  waiver of such provisions or of the right of such Party to
enforce  each  and  every  such  provision.

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

     17.5  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.

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

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

     ICC:        ISLAND  CRITICAL  CARE  CORPORATION
                 100-10  Camelot  Drive
                 Nepean,  Ontario,  Canada  K2G  5X8
                 Attention:  President

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 band or
by  postage  prepaid,  first class, registered or certified mail, return receipt
requested.  Such  notices  and  recommendations  shall  be  deemed  to have been
given  and  delivered  as  of  the  date  of  receipt.

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

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

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

     17.10  Exhibits.All  exh1oits  to  which  this  Agreement refers are hereby
          -----------
incorporated  into  and  made  a  part  of  this  Agreement.

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

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

MASIMO  CORPORATION                         ISLAND  CRITICAL  CARE  CORPORATION
By:  William  H.  Markle
     -------------------
     William  H.  Markle
Vice President, Business Dev. and Marketing
      BY:
         ------------------------

                                     EXHIBIT  A

                             MASIMO  SET  DEFINATION
                             -----------------------

For  the  purpose of this agreement, MASIMO SET is defined to include all MASIMO
Technology  including  LNOP,  AutoProCal  TM,  ProCal  TM,  DST  TM,  and FST TM
Technology.  MASIMO  SET  is  further  described  as  follows:

Transducers  (sensor/probe),  cables  and  connectors,  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 noise reference or signal reference with or without an adaptive filter or
correlation  canceler to minimize the effect of unwanted noise components (e.g.,
motion artifacts) from the physiological waveforms (e.g., photo-plethysmographic
waveforms);

Use of Saturation Transform: Mapping plethysmographic wave forms into saturation
space  (e.g.,  saturation  vs.  power or probability and/or saturation vs. pulse
rate);  and/or

Use of Pulse Rate Transform: Mapping plethysmographic wave forms into pulse rate
space  (e.g.,  pulse  rate  versus  saturation).

<PAGE>
                                      EXHIBIT  B
     I.     MASIMO  SET  PRODUCT  DESIGNATION:
     II.    LICENSED  TRADEMARKS:
        (MASIMO  WILL  PROVIDE  CAMERA  READY  ARTWORK  UPON  REQUEST)
     III.   PATENT  MARKING;

                                      EXHIBIT  C

                      LIST  OF  PATENTS  AND  PATENT  APPLICATIONS
                      --------------------------------------------

Patent/Serial  Number                              Title
---------------------                              -----

1.  U.S.  patent number 5,482,036     "Signal Processing Apparatus and Method"
2.  U.S.  patent application          "Signal  Processing Apparatus and Method"
3.  U.S.  patent number 5,490,505     "Signal  Processing  Apparatus"
4.  U.S.  patent application          "Signal  Processing  Apparatus"
5.  U.S.  patent number 5,632,272     "Signal  Processing  Apparatus"
6.  U.S.  patent application          "Signal  Processing  Apparatus"
7.  U.S.  patent number 5,337,744     "Low  Noise  Finger  Cot  Probe"
8.  U.S.  patent number 5,452,714     "Finger  Cot  Probe"
9.  U.S.  patent number 5,638,818     "Improved  Low  Noise  Optical  Probe  "
10.  U.S.  patent application         "Improved  Low  Noise  Optical  Probe  "
11.  U.S.  patent application         "Manual and Automatic Probe Calibration"
12.  U.S.  patent application         "Manual and Automatic Probe Calibration"
13.  U.S.  patent application         "Low  Noise  Optical  Probes"
14.  U.S.  patent application         "Patient  Cable  Connector  (Design)"
15.  U  .S.  patent application       "Patient  Cable  Connector"
16.  U.S.  patent application         "Patient  Cable  Connector"
17. U .S. patent application          "Improved Signal 'Processing Apparatus and
                                       Method"
18.  U.S. patent application          "Modulation  System"

                                     EXHIBIT  D

                               PRICE  OF  PROUDUCTS
                               --------------------

Price  for  MS-l  Boards:  MASIMO's  transfer  prices to ICC for the MS-1 Boards
(including  the  Masimo MS-3 Boards) delivered in accordance with this Agreement
are  as  follows:

Quantity  Purchased  per  Year                    Unit  Price
Less  Than  1000                                  $375.00
1001-5000                                         $350.00
Greater  than  5000                               $325.00

In  the first twelve month period following the first month after ICC places its
first  Purchase  Order  for  MASIMO Products, the price for MS-1 Boards shall be
fixed at $375.00 per unit. For subsequent years, MS-1 Board pricing shall be set
at  the  pricing  for  the quantity purchased by ICC during the entire preceding
year.

<PAGE>
Transfer  Price for Sensors and Accessories: MASIMO's transfer prices to ICC for
the  SpO2  Sensors  and  Accessories delivered in accordance with this Agreement
will be as indicated, dependent on the geographical region the products are sold
to  end-users:

                                                      North America
Product                                    Part#       Europe/ROW          Japan
-------                                    -----       ----------          -----
LNOP.Adt  (Adult  Disposable Probe)        1001           $8.00           $25.00
LNOP.Pdt  (pediatric  Disposable  Probe)   1025           $9.00           $27.50
LNOP.Neo  (Neonatal  Disposable  Probe)    1002          $11.00           $30.00
LNOP.NeoPt  (pre-Term  Neonatal
Disposable  Probe)                         1003          $12.00           $30.00
LNOP.DC-1  (Adult  Re-usable  Probe)       1004         $140.00          $190.00
PC-08  (8 Ft. Patient Cable)               1005          $85.00          $125.00
PC-12 (12 Ft. Patient Cable)               1006          $95.00          $150.00

Initial  transfer  pricing  on  all Sensors and Accessories will be at the North
American price indicated above with a reconciliation for Japanese shipments paid
to  Masimo  quarterly.

                                                MASIMO  CONFIDENTIAL

                                     EXHIBIT  E

                           SPECIFICATIONS  FOR  PRODUCTS
                           -----------------------------
MS-1  is  a complete pulse oximeter, based on Masimo SET, on a circuit board The
circuit  board  interfaces  directly  to  LNOP  sensors, driving the LEDs in the
sensor  to  acquire  the  patient  signal,  calculates  SpO2 and Pulse Rate, and
communicate  the  information  off  board.

PERFORMANCE  SPECIFICATION:

Range     Saturation  (Spo2):                 1-100%
          Pulse  Rate:                        25-240  BPM  (Beats  Per  Minute)

          Signal  Strength  (SS):             Transmission  (dB)
          >=  0.2%                            >=  -50  dB
          0.02-0.2%                           >=  -100.0  SS  (%)-30.0dB

Accuracy
          Adults
          ------

          SpO2  Range                         70%-100%   0%to  69%
          Accuracy  (+= Std.  Dev.)*          += 2  digits      Unspecified

          Pulse  Rate  Range                  25-240  BPM
          Accuracy  (+= 1  Std.  Dev)*        += 4  BPM

<PAGE>
          Neonates
          SpO2  Range                         70%-95%    0% to 69%
          Accuracy (+= 1 Std. Dev.)*          +=3 digits         Unspecified

          Pulse  Rate  Range                  25-240  BPM
          Accuracy  (+= Std.  Dev.)*          += 4  BPM

Note  The MS-1 pulse oximeter on meter board is calibrated to read oxyhemoglobin
saturation (%SpO2) of functional hemoglobin as compared to a Nellcor N-200 pulse
oximeter  and/or  a  CO-Oximeter. Significant levels of dysfunctional hemoglobin
(e.g.,  methemoglobin,  carboxyhemoglobin)  may  affect  the  accuracy  of  the
instrument.  Indocyanine  green,  methylene blue, and other intra-vascular dyes,
depending  upon  their  concentrations,  may  interfere with the accuracy of the
instrument.  MS-1  performance will be compromised if there is no arterial blood
at  the test site due to excessive patient motion (e.g,, squeezing at a pressure
close  to  subject's  diastolic  blood pressure), ultra low perfusion, excessive
electrosurgical  interference,  or  intense  environmental  illumination

*  Testing  is based on healthy adult volunteers in induced hypoxia studies with
LNOP  Adt  sensors; during no motion. Testing to verify saturation specification
is  done against a Nellcor N-200 pulse oximeter and/or a CO-Oximeter. Testing to
verify  pulse  rate specification is done against a Nellcor N-200 pulse oximeter
and/or  an  ECG.

                                 MASIMO  CONFIDENTIAL

                                  MS-1  Hardware:

Power  Consumption                            >  2.3  Watts  (typ)
                                              ------
                                              =  2.5  Watts  (max)

Storage  Environment
            Temperature  Range                -50-100C
            Atmospheric  Pressure             50-113  kPa
Operating  Environment
Temperature  Range                            0-70  C
Relative  humidity                            0-97  %  non-condensing
Atomospheric  Pressure                        68-113  kPa

<PAGE>
MTBF          150,000  hours  minimum  (Ground  Benign)
Failure  Coverage                             Single  Fault  Coverage
Plethysmographic  Waveform  Specs

<TABLE>
<CAPTION>
Waveform Type       Range    Resolution             Delay
-----------------  -------  -----------------  -------------------------
<S>                <C>      <C>                <C>
Raw Signal          0 to 1  2-(7),2-15,2-(31)  <= 1 sec $2.5 sec <,3 sec
Band Pass Signal   -1 to 1  2-7,2-15,2-31      <=2.5 sec
Autoscaled Signal  -1 to 1  2-(7),2-15,2-31    <=3 sec
</TABLE>

LNOP  Sensor  Specifications

<TABLE>
<CAPTION>
Sensor               Description            Typical Heat  Maximum Skin Temp at Site
                                            Dissipation
----------  ------------------------------  ------------  --------------------------
<S>         <C>                             <C>           <C>
LNOP DC-1   Adult Reusable                         <50mW      <= 41 C @ 37 C Ambient
LNOP Adt    Adult Disposable                       <50mW         <=41 C@37 C Ambient
LNOP Neo    Neonatal Disposable                    <50mW        <=39 C@ 37 C Ambient
LNOP-NeoPt  Neonatal Disposable (Pre-Term)         <50mW        <=39 C@ 37 C Ambient
LNOP Pdt                                           <50mW       <=41 C @ 37 C Ambient
            Pediatric Disposable
</TABLE>

<PAGE>
                               MASIMO  CONFIDENTIAL
EXHIBIT  F

END  USER  LICENSE  AGREEMENT
-----------------------------
THIS DOCUMENT IS A LEGAL AGREEMENT BETWEEN YOU, THE "PURCHASER", AND ICC. 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
ICC  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,  ICC  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. ICC reserves all
rights  not  expressly  granted  to  Purchaser.
2.     Ownership  of  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  ICC,  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 ICC's 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  ICC.
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 ICC. In no event may you transfer, assign, rent,
lease,  sell, or otherwise dispose of the software/firmware or the products on a
temporary  basis.
7.     Beneficiary.  Masimo  Corporation  is a Beneficiary of this Agreement and
       ------------
has  the  right  to  enforce  its  provisions.
8.     U.S.  Government  Rights:  If  you  are acquiring software (including the
       -------------------------
related documentation) on behalf of any part of the United State Government, the
following  provisions  apply: the software is deemed to be "commercial software"
and  "commercial computer software documentation," respectively pursuant to DFAR
Section 227.7202 FAR 12.212, as applicable. Any use, modification, reproduction,
release,  performance,  display  or  disclosure  of  the software (including the
related  documentation)  by  the U.S. Government or any of its agencies shall be
governed solely by the terms of this Agreement and shall be prohibited except to
the  extent  expressly  permitted  by  the  terms  of  this  agreement.

<PAGE>

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