Document:

Amended and Restated Employment Agreement

 Exhibit 10.1 
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT
(“Agreement”) is made and entered into as of May 2, 2011, by and between Masimo Corporation, a Delaware corporation (“Company”), and Joe Kiani (“Executive”). 

RECITALS 

A. Executive is a founder of the Company and has been its Chairman and Chief Executive Officer (“CEO”) since its
inception. The Board of Directors of the Company (the “Board”) recognizes that the Executive’s contributions as Chairman and CEO have been instrumental to the success of the Company. Executive and Company entered into an
employment contract dated July 19, 2007, as amended by Amendment No. 1 thereto dated December 31, 2008, and as amended and restated on July 14, 2009 (the “Prior Agreement”). The Board and Executive desire
to amend and restate the Prior Agreement pursuant to the terms hereof to assure the Company of the Executive’s continued employment in an executive capacity and to compensate him therefor. 

B. Company considers the establishment and maintenance of a sound management to be essential to protecting and enhancing the best
interests of the Company and its shareholders. 
 C. Company’s Board of Directors has determined that appropriate steps
should be taken to retain Executive and to reinforce and encourage his continued attention and dedication to his assigned duties. 
 D. The Company desires to retain the services of the Executive, and the Executive desires to be employed by the Company pursuant to the terms and conditions of this Agreement. 

NOW, THEREFORE, in consideration of the premises, the mutual promises and the mutual covenants and agreements hereinafter set forth, the
Company and the Executive hereby agree as follows: 
 1. EMPLOYMENT. During the Employment Period (as hereinafter defined),
Company hereby agrees to continue to employ Executive and Executive hereby agrees to continue to serve the Company, on the terms and conditions contained in this Agreement. 
 2. POSITION AND DUTIES. Executive shall serve the Company as its Chairman of the Board and Chief Executive Officer and shall report to the Board of Directors. Executive shall be assigned the
responsibilities of such office as they may be modified from time to time by the Board of Directors of the Company provided that such duties are consistent with Executive’s present duties and with Executive’s position. Executive hereby
accepts such employment and agrees to devote substantially all of his full business and professional time and energy to the business and affairs of the Company. Notwithstanding the foregoing, the Executive shall be permitted to serve (i) as an
employee, consultant, officer and/or director of, and provide services to, Cercacor Laboratories, Inc., a Delaware corporation (f/k/a Masimo Laboratories, Inc.) (“Cercacor”), and (ii) on the board of directors of any
other company or entity. 

 3. EMPLOYMENT PERIOD. The “Employment Period” shall mean the period
commencing on the date hereof, and ending on the later of (i) the third (3rd) anniversary date of this Agreement or (ii) three years following the date on which notice of non-renewal of this Agreement is given to the other by either
the Executive or the Company. This Agreement shall be renewed automatically on a daily basis so that the outstanding term is always three (3) years following any effective notice of nonrenewal or of termination given by this Company or the
Executive. 
 4. PLACE OF PERFORMANCE. In connection with his employment by the Company, the Executive shall be based at the
Company’s office or facility where, on the date hereof, the Executive is regularly rendering services on behalf of the Company and shall not be required to be absent therefrom on travel status or otherwise more than a reasonable number of days
in any calendar year. For purposes of the preceding sentence, the parties hereto agree that a “reasonable number of days” shall mean such number of days which is not in excess of one hundred twenty-five percent (125%) of
the number of days on which the Executive was on travel status or otherwise required by the Company to be absent from this principal place of performance during the calendar year immediately prior to the year of computation. 

5. COMPENSATION. 

5.1 BASE SALARY. In consideration for services performed pursuant to this Agreement, Company will pay or cause to be paid to the
Executive, and Executive will be entitled to receive and hereby agrees to accept, an initial annual base salary of seven hundred six thousand nine hundred ninety-two dollars ($706,992) subject to increases in the discretion of the Board or its
annual review Compensation Committee (“Base Salary”), payable in accordance with the Company’s normal payroll payment policy. 
 5.2 BONUS. Without limiting any Additional Amount (as defined below) payable pursuant to Section 5.4(ii) hereof, Executive shall be eligible to receive an annual bonus equal to 50% of his Base Salary
based on the Company’s attaining certain financial goals established by the Board (or designated committee). In addition, Executive may be entitled to receive such additional bonus amounts as the Board (or such Committee as may be designated by
the Board) shall determine in its discretion, such as the Masimo Executive Annual Cash Bonus Award plan and Masimo Executive Multi-Year Cash Bonus Award Plan. In determining such additional amounts, if any, the Board (or Compensation Committee)
shall consider among other things Executive’s contribution to the accomplishment of the Company’s long-range business goals, the success of various corporate strategies in which Executive participated, and Executive’s unique services
in connection with the maintenance or increase in shareholder values in the Company. 
 5.3 STOCK OPTIONS AND RELATED INCENTIVE
PLANS. Executive shall be eligible to participate in the Company’s existing incentive programs and any additional or successor incentive plan or plans, including the Masimo Corporation 2007 Stock Incentive Plan. Any option grants made to
Executive pursuant to such plans shall provide for an expiration date consistent with the provisions of such plans, without regard to termination of employment; provided, however, in no event shall any option remain exercisable beyond its stated
expiration date. 

  
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 5.4 EXPENSES. 
 (i) Company shall reimburse Executive for all reasonable expenses incurred and paid by Executive in the course of the performance of his duties pursuant to this Agreement. In addition, Company shall
reimburse Executive for all reasonable travel and lodging expenses for Executive’s immediate family, if Executive elects to have his immediate family accompany him during his business travel. Notwithstanding anything to the contrary set forth
in Company’s Business Travel and Expense Policy, dated October 22, 2003, as may be amended or restated from time to time (the “Travel and Expense Policy”) or Company’s 2006 Employee Handbook, as may be amended
or restated from time to time (the “Employee Handbook”), for purposes of this Agreement, “reasonable” expenses shall be deemed to include travel and hospitality expenses for first class airplane travel
and accommodations and expenses for travel using private or chartered aircraft. In addition, the following Company reimbursement policies and provisions shall not apply to Executive: (i) the Travel and Expense Policy; and (ii) the section
entitled “Expense Reimbursements” in the Employee Handbook. Expenses reimbursable under this paragraph must be reimbursed within a reasonable period of time following Executive’s submission of the reimbursement request and supporting
documentation reasonably requested by the Company and in no event later than the end of the calendar year following the calendar year in which the expenses were incurred by Executive. 

(ii) Notwithstanding anything herein to the contrary, in the event that some or all of the total amount of expenses of Executive
reimbursed for any calendar year pursuant to Section 5.4(i) hereof is deemed under the Internal Revenue Code of 1986, as amended, the Treasury Regulations or other guidance issued thereunder, or the taxation rules and regulations of any State
applicable to Executive (collectively, the “Taxation Regulations”) to be taxable compensation to Executive (each, a “Taxable Reimbursement”), Company shall pay Executive an additional amount for such
calendar year (each, an “Additional Amount”) equal to the quotient obtained by dividing (i)(Y) the total amount of the Taxable Reimbursement for such calendar year, multiplied by (Z) Executive’s combined effective
federal and state tax rate percentage for such calendar year (the “Combined Tax Rate”), by (ii)(a) 100% less (b) the Combined Tax Rate. The Company shall pay the Additional Amount for a Taxable Reimbursement to Executive
by no later than April 15th of the year immediately following the year in which Executive receives such Taxable Reimbursement; provided that, in the event Executive has not provided the Company with his final tax return for the
immediately preceding year by April 15th, (A) the Company shall assume that Executive’s Combined Tax Rate is 40%, and (B) upon Executive furnishing his final tax return for such prior year to the Company, in the event
(y) the Combined Tax Rate, as reflected on the final return, is more than 40%, the Company shall pay Executive, within 30 days after receiving the final return, the remaining Additional Amount owed to Executive under this Section 5.4(ii),
and (z) the Combined Tax Rate, as reflected on the final return, is less than 40%, Executive shall reimburse the Company, within 30 days after providing the final return to the Company, the difference between the amount previously reimbursed to
Executive under clause (A) hereof and the Additional Amount. The Additional Amount payable under this Section 5.4(ii) shall in no way limit, impair or otherwise modify Executive’s right to receive a bonus pursuant to Section 5.2
hereof. 
 5.5 FRINGE BENEFITS. The Executive shall be entitled to continue to participate in or receive benefits under all of
the Company’s employee benefits plans and 

  
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arrangements in effect on the date hereof or plans or arrangements providing the Executive with at least equivalent benefits thereunder. The Company agrees that, without the Executive’s
consent, it will not make any changes in such plans or arrangements which would adversely affect the Executive’s rights or benefits thereunder. The Executive shall be entitled to participate in or receive benefits under any pension plan,
profit-sharing plan, savings plan, stock option plan, life insurance, health-and-accident plan or arrangement made available by the Company in the future to its executives and key management employees, subject to and on a basis consistent with the
terms, conditions and overall administration of such plans and arrangements. Nothing paid to the Executive under any plan or arrangement presently in effect or made available in the future shall be deemed to be in lieu of compensation to the
Executive hereunder. 
 5.6 VACATIONS. The Executive shall be entitled to the number of paid vacation days in each calendar year
determined by the Company’s Board from time to time for its senior executive officers (prorated in any calendar year during which the Executive is employed by the Company for less than the entire such year in accordance with the number of days
in such calendar year during which he is so employed). The Executive shall also be entitled to all paid holidays given by the Company to its senior executive officers. 
 5.7 PERQUISITES. The Executive shall be entitled to continue to receive the fringe benefits appertaining to the office of Chairman and CEO of the Company in accordance with present practice. 

6. CONFIDENTIAL INFORMATION. Executive has entered into and agrees to be bound by the terms and conditions of the Company’s Employee
Confidentiality Agreement (the “Confidentiality Agreement”). Executive agrees to execute such other documents (including, but not limited to, new versions of the Confidentiality Agreement) as may be necessary in order to
protect the Company’s confidential information. 
 7. TERMINATION. 

7.1 DEATH. The Executive’s employment hereunder shall terminate upon his death. 

7.2 DISABILITY. If, as a result of the Executive’s incapacity due to physical or mental illness, the Executive shall have been
absent from his duties hereunder on a full time basis for one hundred twenty (120) consecutive business days, and within thirty (30) days after written notice of termination is given shall not have returned to the performance of his duties
hereunder on a full time basis, the Company may terminate the Executive’s employment hereunder. 
 7.3 CAUSE. The Company
may terminate the Executive’s employment hereunder for Cause. For the purposes of this Agreement, the Company shall have “Cause” to terminate the Executive’s employment hereunder upon (i) the willful and
continued failure by the Executive to substantially perform his duties hereunder, other than any such failure resulting from the Executive’s incapacity due to physical or mental illness, or (ii) the willful engaging by the Executive in
gross misconduct materially injurious to the Company, or (iii) the willful 

  
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violation by the Executive of the provisions of Confidentiality Agreement hereof provided that such violation results in demonstrably material injury to the Company. For purposes of this
paragraph, no act, or failure to act, on the Executive’s part shall be considered “willful” unless done, or omitted to be done, by him not in good faith and without reasonable belief that his action or omission was in
the best interests of the Company. Notwithstanding the foregoing, the Executive shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to the Executive a copy of a resolution, duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of the Board at a meeting of the Board called and held for the purpose (after reasonable notice to the Executive and an opportunity for him, together with his counsel, to be
heard before the Board), finding that in the good faith opinion of the Board the Executive was guilty of conduct set forth above in clause (i), (ii), or (iii), and specifying the particulars thereof in detail. 

7.4 TERMINATION BY THE EXECUTIVE. The Executive may terminate his employment hereunder (i) for Good Reason, (ii) if his health
should become impaired to an extent that makes the continued performance of his duties hereunder hazardous to his physical or mental health or his life, or (iii) at any time by giving six months’ written notice to the Company of his
intention to terminate. For purposes of this Agreement, “Good Reason” shall mean (A) any assignment to the Executive of any duties other than those contemplated by, or any limitation of the powers of the Executive in any
respect not contemplated by Section 2 hereof, except in connection with termination of the Executive’s employment for Cause, (B) a reduction in the Executive’s rate of compensation or a reduction in the Executive’s fringe
benefits or any other failure by the Company to comply with Section 5 hereof; or (C) any failure by the Company to comply with Section 4 hereof. 
 7.5 NOTICE OF TERMINATION. Any termination by the Company pursuant to Section 7.3 or by the Executive pursuant to Section 7.4 above shall be communicated by written Notice of Termination to the
other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated. 
 7.6 DATE OF TERMINATION. “Date of Termination” shall mean (i) if the Executive’s employment is terminated by his death, the date of his death, (ii) if the
Executive’s employment is terminated pursuant to Section 7.2 above, thirty (30) days after Notice of Termination is given (provided that the Executive shall not have returned to the performance of his duties on a full-time basis
during such thirty (30) day period), (iii) if the Executive’s employment is terminated pursuant to Section 7.3 or clause (iii) of Section 7.4 above, the date specified in the Notice of Termination, or (iv) if the
Executive’s employment is terminated for any other reason, the date on which a Notice of Termination is given; provided that if within sixty (60) days after a Notice of Termination is given the party receiving such Notice of Termination
notifies the other party that a dispute exists concerning the termination, the Date of Termination shall be the date on which the dispute is finally determined, either by mutual written agreement of the parties, by a binding and final arbitration
award or by a final judgment, order or decree of a court of competent jurisdiction (the time for appeal therefrom having expired and no appeal having been perfected). 

  
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 8. COMPENSATION UPON TERMINATION, DEATH OR DURING DISABILITY. 

8.1 DEATH. If the Executive’s employment shall be terminated by reason of his death, the Company shall pay to such person as he
shall designate in a notice filed with the Company, or, if no such person shall be designated, to his estate as a death benefit, an amount equal to one-half (1/2) of the Executive’s Base Salary at the rate in effect on the date of the
Executive’s death. Such amount shall be paid for three (3) years, in substantially equal monthly installments commencing within 30 days following the Executive’s death. This amount shall be exclusive of and in addition to any payments
the Executive’s surviving spouse, beneficiaries or estate may be entitled to receive pursuant to any pension or employee benefit plan or life insurance policy presently maintained by the Company. 

8.2 DISABILITY. During any period that the Executive fails to perform his duties hereunder as a result of incapacity due to physical or
mental illness, the Executive shall continue to receive his full Base Salary and incentive compensation until the Executive’s employment is terminated pursuant to Section 7.2 hereof, or until the Executive terminates his employment
pursuant to clause (ii) of Section 7.4 hereof, whichever first occurs. After termination, the Executive shall be paid three-fourths (3/4) of his Base Salary at the rate then in effect for two (2) years and, subject to
Section 8.7, commencing within 30 days of the Executive’s termination. To the extent permitted by Treasury Regulation § 1.409A-3(i)(1)(ii)(A), such disability benefits shall be reduced by any disability payment otherwise payable by or
pursuant to disability plans maintained by the Company and actually paid to the Executive and shall be paid in substantially equal monthly installments at the same times as Base Salary is paid hereunder. 

8.3 CAUSE. If the Executive’s employment shall be terminated for Cause, the Company shall pay the Executive his full Base Salary
through the Date of Termination at the rate in effect at the time Notice of Termination is given and the Company shall have no further obligations to the Executive under this Agreement. 

8.4 OTHER. If the Company shall terminate the Executive’s employment other than pursuant to Sections 7.1, 7.2 or 7.3 hereof or if
the Executive shall terminate his employment pursuant to clause (i) of Section 7.4 hereof, then the Company shall pay to Executive in cash a severance benefit equal to two times the sum of (i) Executive’s Base Salary at the rate
then in effect, and (ii) the average annual bonus paid to Executive during the immediately prior three (3) years. Such amount shall be paid in installments over two years in accordance with the Company’s normal payroll payment policy
and, subject to Section 8.7, commencing within 30 days following Executive’s termination of employment. If a “Change in Control” as that term is defined in Section 9 below shall occur while the Executive is
still employed, then the Company shall pay to Executive the severance he would have received under this Section 8.4 had the Executive terminated his employment pursuant to clause (i) of Section 7.4 hereof. Such payment shall be made
in a lump sum within 30 days following the Change in Control. If the Executive’s employment with the Company thereafter terminates for any reason, Executive shall not be entitled to any payments under Sections 8.1, 8.2, 8.3 or 8.4 on account of
such termination. If Executive becomes (or would become) entitled to any payment under this 

  
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Section 8.4 pursuant to a Change in Control or otherwise, the Company shall vest, effective as of immediately prior to such Change in Control or such other event that would entitle Executive
to a payment under this Section 8.4, all of Executive’s stock options and other equity awards (if any) and issue the stock therefor as additional compensation. Company shall also pay the withholding tax due on the issuance of such stock at
the “Supplemental Payment Rate” to the federal and state taxing authorities. 
 8.5 EMPLOYEE BENEFIT
PLANS. 
 (i) Unless the Executive’s employment is terminated pursuant to Section 7.3 hereof, the Company shall
maintain in full force and effect, for the continued benefit of the Executive for the full term of this Agreement all employee benefit plans and programs in which the Executive was entitled to participate immediately prior to the Date of Termination
provided that the Executive’s continued participation is possible under the general terms and provisions of such plans and programs. 
 (ii) In the event that the Executive’s participation in any such plan or program is barred, the Company shall reimburse expenses actually incurred by the Executive during such period to obtain
similar coverage, but only to the extent Executive’s requested reimbursement of expenses for similar coverage does not exceed the Company’s premiums or contributions that the Company would otherwise pay under the terms of this Agreement as
of the date of the Executive’s termination, or date of payment if later, to continue Executive’s participation in the underlying plan for the period the expenses were incurred by the Executive. Expenses reimbursable under this paragraph
shall be reimbursed within thirty (30) days following Executive’s submission to the Company of the reimbursement request and supporting documentation reasonably requested by the Company and in no event later than the end of the calendar
year following the calendar year in which the expenses were incurred by Executive. The expenses eligible for reimbursement under this paragraph during any calendar year shall not affect the expenses eligible for reimbursement under this paragraph in
any other calendar year. 
 8.6 PARTICIPATION IN FUTURE FINANCINGS. If Executive’s employment is terminated other than
pursuant to Sections 7.1, 7.2 or 7.3 hereof or if Executive shall terminate his employment pursuant to clause (i) of Section 7.4 hereof, then until immediately prior to the time the Company has completed an initial public offering, the
Executive shall have a preemptive right to purchase or subscribe for (i) any shares of Common Stock, (ii) any other equity security of the Company, including, without limitation, shares of Preferred Stock, (iii) any option, other than
options granted pursuant to an employee stock option plan, warrant or other right to subscribe for, purchase or otherwise acquire any equity security of the Company, or (iv) any debt Securities (the “Offered
Securities”). Executive shall have a preemptive right to purchase or subscribe for that portion of the Offered Securities as the aggregate number of shares of Common Stock (as adjusted for any stock dividends, combinations or splits
with respect to such shares) then held by or issuable to Executive bears to the total number of outstanding shares of Common Stock (as adjusted for any stock dividends, combinations or splits with respect to such shares) of the Company then held by
or issuable to any person as a result of any convertible security, warrant or option, other than options granted pursuant to an employee stock option plan. 

  
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 8.7 CODE SECTION 409A COMPLIANCE. Notwithstanding anything in this Section 8 to the
contrary, if any benefit or amount payable to the Executive under this Section 8 on account of the Executive’s termination of employment constitutes “nonqualified deferred compensation” within the meaning of Section 409A of
the Internal Revenue Code of 1986, as amended or successor provision (“409A”), payment of such benefit or amount shall commence when the Executive incurs a “separation from service” within the meaning of Treasury
Regulation Section 1.409A-1(h), which provides that a separation from service will be deemed to occur if the Company and the Executive reasonably anticipate that Executive shall perform no further services for the Company and any entity that
would be considered a single employer with the Company under Code Section 414(b) or 414(c) (whether an employee or an independent contractor) or that the level of bona fide services Executive will perform in the future (whether as an employee
or an independent contractor) will permanently decrease to no more than 49 percent of the average level of bona fide services performed (whether as an employee or independent contractor) over the immediately preceding 36-month period. Such payments
or benefits shall be provided in accordance with the timing provisions of this Section 8 by substituting the references to “termination of employment” or “termination” with “separation from service”; however, if at
the time Executive incurs a separation from service, Executive is a “specified employee” within the meaning of 409A, any benefit or amount payable to the Executive under this Section 8 on account of the Executive’s termination of
employment that constitutes nonqualified deferred compensation subject to 409A shall be delayed until the first day of the seventh month following the Executive’s separation from service (the “409A Suspension Period”).
Within 14 calendar days after the end of the 409A Suspension Period, the Company shall pay to the Executive (or his estate or beneficiary, as applicable) a lump sum payment in cash equal to any payments (including interest on any such payments, at
an interest rate of not less than the average prime interest rate, as published in the Wall Street Journal, over the 409A Suspension Period) that the Company would otherwise have been required to provide under this Section 8 but for the
imposition of the 409A Suspension Period. Thereafter, the Executive shall receive any remaining payments due under this Section 8 in accordance with the terms of this Section (as if there had not been any suspension period beforehand). For
purposes of this Agreement, each payment that is part of a series of installment payments shall be treated as a separate payment for purposes of 409A. Notwithstanding anything in this Agreement to the contrary, all reimbursements and in-kind
benefits provided under this Agreement shall be made in accordance with the following requirements of 409A: (i) the reimbursement of eligible expenses will be made no later than the end of the calendar year following the calendar year in which
the expenses were incurred by Executive; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement or in-kind benefits to be provided in
any other calendar year; and (iii) any right to reimbursement of eligible expenses or in-kind benefits is not subject to liquidation or exchange for any other benefit. In addition, notwithstanding anything in this Agreement to the contrary,
(x) any tax gross-up payment provided under this Agreement, including under Sections 5.4(ii) and 8.8 hereof, shall be paid no later than the end of Executive’s taxable year next following Executive’s taxable year in which Executive
remits the related taxes, and (y) reimbursement of expenses incurred due to a tax audit or litigation addressing the existence or amount of a tax liability must be made by the end of Executive’s taxable year following Executive’s
taxable year in which the taxes that are subject to the audit or litigation are remitted 

  
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to the related taxing authority, or where as a result of such audit or litigation no taxes are remitted, the end of Executive’s taxable year following the taxable year in which the audit is
completed or there is a final and non-appealable settlement or other resolution of the litigation. 
 8.8 PARACHUTE PAYMENTS.

 (i) If any payment or benefit (within the meaning of Section 280G(b)(2) of the Code) to the Executive or for the
Executive’s benefit paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise in connection with, or arising out of, the Executive’s employment with the Company or a change in ownership or
effective control of the Company or of a substantial portion of its assets (a “Parachute Payment” or “Parachute Payments”), would be subject to the excise tax imposed by Section 4999 of the Code
or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then
the Executive will be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes (including any interest or penalties, other than any taxes imposed by
409A or interest and penalties imposed by reason of the Executive’s failure to file timely a tax return or pay taxes shown to be due on the Executive’s return), including any Excise Tax imposed upon the Gross-Up Payment, the Executive
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Parachute Payment or Parachute Payments. 

(ii) An initial determination as to whether a Gross-Up Payment is required pursuant to this Agreement and the amount of such Gross-Up
Payment shall be made at the Company’s expense by the Company’s regular outside auditors (the “Accounting Firm”). The Accounting Firm shall provide its determination (the “Determination”),
together with detailed supporting calculations and documentation, to the Company and the Executive within ten days of the Termination Date, if applicable, or promptly upon request by the Company or by the Executive (provided the Executive reasonably
believes that any of the Parachute Payments may be subject to the Excise Tax) and if the Accounting Firm determines that no Excise Tax is payable by the Executive with respect to a Parachute Payment or Parachute Payments, it shall furnish the
Executive with an opinion reasonably acceptable to the Executive that no Excise Tax will be imposed with respect to any such Parachute Payment or Parachute Payments. Within ten days of the delivery of the Determination to the Executive, the
Executive shall have the right to dispute the Determination (the “Dispute”). The Gross-Up Payment, if any, as determined pursuant to this Section 8.8(ii) shall be paid by the Company to the Executive within ten days of
the receipt of the Accounting Firm’s determination notwithstanding the existence of any Dispute. If there is no Dispute, the Determination shall be binding, final and conclusive upon the Company and the Executive subject to the application of
clause (iii) below. The Company and the Executive shall resolve any Dispute in accordance with the terms of this Agreement. Notwithstanding the foregoing, in no event shall payment of the Gross-Up Payment occur later than the end of the
Executive’s taxable year following the Executive’s taxable year in which the Executive pays the taxes giving rise to the Gross-Up Payment. 
 (iii) As a result of the uncertainty in the application of Sections 4999 and 280G of the Code, the Company and the Executive acknowledge that it is possible that a

  
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Gross-Up Payment (or a portion thereof) will be paid that should not have been paid (an “Excess Payment”) or a Gross-Up Payment (or a portion thereof) that should have
been paid will not have been paid (an “Underpayment”). An Underpayment shall be deemed to have occurred (a) upon notice (formal or informal) to the Executive from any governmental taxing authority that the
Executive’s tax liability (whether in respect of the Executive’s current taxable year or in respect of any prior taxable year) may be increased by reason of the imposition of the Excise Tax on a Parachute Payment or Parachute Payments with
respect to which the Company has failed to make a sufficient Gross-Up Payment, (b) upon a determination by a court, (c) by reason of determination by the Company (which shall include the position taken by the Company, together with its
consolidated group, on its federal income tax return) or (d) upon the resolution of the Dispute to the Executive’s satisfaction. If an Underpayment occurs, the Executive shall promptly notify the Company and the Company shall promptly, but
in any event, at least five days prior to the date on which the applicable government taxing authority has requested payment, pay to the Executive an additional Gross-Up Payment equal to the amount of the Underpayment plus any interest and penalties
(other than interest and penalties imposed by reason of the Executive’s failure to file timely a tax return or pay taxes shown to be due on the Executive’s return) imposed on the Underpayment. If, however, no notice of an Underpayment
having been made is received by the Company within one year of the date of the payment of the Gross-Up Payment by the Company to the Executive, then no payments shall be owed by the Company under this Section 8.8(iii). An Excess Payment shall
be deemed to have occurred upon a “Final Determination” (as hereinafter defined) that the Excise Tax shall not be imposed upon a Parachute Payment or Parachute Payments (or portion thereof) with respect to which the Executive
had previously received a Gross-Up Payment. A “Final Determination” shall be deemed to have occurred when the Executive has received from the applicable government taxing authority a refund of taxes or other reduction in the
Executive’s tax liability by reason of the Excise Payment and upon either (x) the date a determination is made by, or an agreement is entered into with, the applicable governmental taxing authority which finally and conclusively binds the
Executive and such taxing authority, or in the event that a claim is brought before a court of competent jurisdiction, the date upon which a final determination has been made by such court and either all appeals have been taken and finally resolved
or the time for all appeals has expired or (y) the statute of limitations with respect to the Executive’s applicable tax return has expired. If an Excess Payment is determined to have been made, the Executive shall pay to the Company on
demand (but not less than ten days after the determination of such Excess Payment and written notice has been delivered to the Executive) the amount of the Excess Payment plus interest at an annual rate equal to the Applicable Federal Rate provided
for in Section 1274(d) of the Code from the date the Gross-Up Payment (to which the Excess Payment relates) was paid to the Executive until the date of repayment to the Company. If, however, no notice of an Excess Payment having been made is
received by the Executive within one year of the date of the payment of the Gross-Up Payment by the Company to the Executive, then no payments shall be owed by the Executive under this Section 8.8(iii). 

(iv) Notwithstanding anything contained in this Agreement to the contrary, in the event that, according to the Determination, an Excise
Tax will be imposed on any Parachute Payment or Parachute Payments, the Company shall pay to the applicable government taxing authorities as Excise Tax withholding, the amount of the Excise Tax that the Company has actually withheld from the
Parachute Payment or Parachute Payments or the Gross Up Payment. 

  
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 9. CHANGE IN CONTROL OF THE COMPANY. For purposes of this Agreement “Change in
Control” shall be deemed to have occurred at such time as: 
 (i) any person or more than one person acting as a
group within the meaning of Treasury Regulation § 1.409A-3(i)(5)(v)(B) acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) beneficial ownership, as
determined under the constructive ownership rules of Code Section 318(a), shares of capital stock of the Company entitling such person or persons to exercise more than 35% of the total voting power of all voting shares of the Company; or

 (ii) any person or more than one person acting as a group within the meaning of Treasury Regulation §
1.409A-3(i)(5)(v)(B) acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets of the Company that have a total fair market value equal to or more than 40%
of the total gross fair market value of all the assets of the Company immediately before such acquisition or acquisitions; or 

(iii) there shall occur a change in the Board of Directors of the Company in which the individuals who constituted the Board of
Directors of the Company at the beginning of the 12-month period immediately preceding such change (together with any other director whose election by the Board of Directors of the Company or whose nomination for election by the stockholders of the
Company was approved by a vote of at least a majority of the directors then in office either who were directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to
constitute a majority of the directors then in office. 
 10. BINDING AGREEMENTS. This Agreement and all rights of the Executive
hereunder shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 

11. NON-WAIVER OF RIGHTS. The failure to enforce, at any time, any of the provisions of this Agreement, or to require, at any time,
performance by the other party of any of the provisions hereof shall in no way be construed to be a waiver of such provision or to affect either the validity of this Agreement, or any part hereof, or the right of either party thereafter to enforce
each and every provision in accordance with the terms of this Agreement. 
 12. INVALIDITY OF PROVISIONS. The invalidity or
unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provisions were omitted. 

13. ASSIGNMENTS. This Agreement is binding upon the parties hereto and their respective successors, assigns, heirs and personal
representatives. Except as otherwise provided herein, neither of the parties hereto may make any assignment of this Agreement, or any interest herein, without the prior written consent of the other party, except that, without such consent, this
Agreement shall be assigned to any corporation or entity which shall succeed to the business 

  
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presently being operated by Company, by operation of law or otherwise, including by dissolution, merger, consolidation, transfer of assets, or otherwise. 

14. COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of
which together will constitute one and the same instrument. 
 15. AMENDMENTS. No modification, amendment or waiver of any of
the provisions of this Agreement shall be effective unless in writing specifically referring hereto, and signed by the parties hereto. 
 16. NOTICES. For the purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or
mailed by United States certified mail, return receipt requested, postage prepaid, addressed as follows: 
  

					
	If to the Executive:	 	 Joe Kiani
 1 Point
Catalina
 Laguna Niguel, CA 92677
	 	
			
	If to the Company:	 	 Masimo Corporation
 40
Parker
 Irvine, CA 92618

Attention: Chairman of the Compensation
 Committee of the Board of Directors or
	 	

 to such other address as any party may have furnished to the other in writing in accordance herewith, except that
notices of change of address shall be effective only upon receipt. 
 17. SURVIVAL. Section 5.4 and Sections 6, 8, 10-13,
15-18 and 20 shall survive termination or expiration of this Agreement. 
 18. ARBITRATION. Any controversy or claim arising out
of or relating to this Agreement or the making, performance or interpretation thereof shall be settled by arbitration in Orange County, California, in accordance with the Rules of the American Arbitration Association then existing, and judgment on
the arbitration award may be entered in any court having jurisdiction over the subject matter of the controversy. Arbitrators shall be persons experienced in negotiating, making and consummating employment matters. Notwithstanding the pendency of
any such dispute or controversy, the Company should continue to pay Executive his full compensation in effect when the notice giving rise to the dispute was given (including, but not limited to, base salary and any bonus due) and continue Executive
as a participant in all compensation, benefit and insurance plans in which Executive was participating when the notice giving rise to the dispute was given, until the dispute is finally resolved. Amounts paid under this section are in addition to
all other amounts due under this Agreement and shall not be offset against or reduce any other amounts due under this Agreement. Judgment may be entered on the arbitrator’s award in any court having jurisdiction; provided, however, that
Executive shall be 

  
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entitled to seek specific performance of his right to be paid during the pendency of any dispute or controversy arising under or in connection with this Agreement. 

19. ENTIRE AGREEMENT. This Agreement supersedes all prior employment agreements, both written and oral, between Company and Executive.

 20. INTERPRETATION. This Agreement shall in all respects be interpreted, construed and governed by and in accordance with the
laws of the State of California, without regard to conflicts of laws principles. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

  
 - 13 -

 IN WITNESS WHEREOF, the Company at the direction of the Compensation Committee of the Board
of Directors has caused this Employment Agreement to be executed as of the day and year first above written. 
  

							
	 “Company”
	 		 	MASIMO CORPORATION
				
		 		 	By:	 	 /s/ Mark P. de Raad

		 		 	Name:	 	Mark P. de Raad
		 		 	Its:	 	 Executive Vice President & Chief Financial
 Officer

			
	 “Executive”
	 		 	 /s/ Joe Kiani

		 		 	Joe Kiani

  
 - 14 -Executive Annual Cash Bonus Award Plan

 Exhibit 10.2 
 MASIMO CORPORATION 
 EXECUTIVE ANNUAL 

CASH BONUS AWARD PLAN 
  

 
 Plan Document

  
  

 

 MASIMO CORPORATION 

EXECUTIVE ANNUAL CASH BONUS AWARD PLAN 
  

 
 Plan Document

  
  

ARTICLE I 

PURPOSE OF THE PLAN 

Effective January 1, 2007, Masimo Corporation (the “Company”) has established this Masimo Corporation Annual Cash Bonus Award Plan
(the “Plan”) to provide its Executive Officers and other officers and key employees designated by the Committee (the “Designated Employees”) with additional incentives to deliver exceptional financial and
operational results on an annual basis. 
 ARTICLE II 

DEFINITIONS 
  

	2.1	“Base Salary” shall mean a Participant’s base rate of annual salary that is in effect on the last day of the Plan Year to which the Bonus relates.

  

	2.2	“Board” shall mean the Board of Directors of the Company. 

 

	2.3	“Bonus” shall mean the amount payable to a Participant pursuant to the Plan. 

 

	2.4	“Committee” shall mean any committee that the Board may appoint to serve at the Board’s pleasure for purposes of administering the Plan; provided
that the Board may at any time act as the Committee and shall serve in that capacity in the absence of a duly-appointed committee. 

  

	2.5	“Company Factor” shall mean the percentage rating that the Committee determines for a Plan Year pursuant to Section 4.2(b) below.

  

	2.6	“Executive Officers” shall mean the Chief Executive Officer of the Company (the “CEO”), any vice president of the Company in charge of
a business unit or function (such as sales, administration or finance), any other officer who performs a policy making function or any other person who performs similar policy making functions for the Company and directly reports to the CEO.
Executive officers of subsidiaries of the Company who perform such policy making functions for the Company and report to the CEO of the Company shall be Executive Officers for purposes of this definition. 

 

	2.7	“Individual Factor” shall mean the percentage rating that the Manager determines for a Plan Year pursuant to Section 4.2(c) below.

	2.8	“Manager” shall mean the person that the Participant directly reports to for the Plan Year. In the case of each Executive Officer other than the CEO,
the CEO shall be deemed the Manager. 

  

	2.9	“Maximum Bonus” shall mean the percentage rating that the Committee determines for a Plan Year pursuant to Section 4.2(d) below.

  

	2.10	“Participant” shall mean the Executive Officers and Designated Employees eligible to receive a Bonus under the Plan, pursuant to Article III herein.

  

	2.11	“Plan Year” shall mean the period commencing January 1 and ending December 31. 

 

	2.12	“Target Bonus” shall mean the percentage rating that the Committee determines for a Plan Year pursuant to Section 4.2(a) below.

 ARTICLE III 
 ELIGIBILITY FOR PARTICIPATION 
  

	3.	An Executive Officer and Designated Employee shall be eligible to participate in the Plan, and thereby become a Participant for a particular Plan Year if and only if
the Committee determines in its sole and absolute discretion that other than the Company’s Executive Multi-Year Cash Bonus Award Plan, as amended from time to time, or a severance plan or agreement with the Company, the Executive Officer is not
covered by another cash bonus arrangement or agreement or another non-equity variable compensation plan with the Company for the Plan Year. 

 ARTICLE IV 
 BONUS AMOUNTS AND PAYMENTS 

 

	4.1	CONDITIONS FOR BONUS PAYMENTS. The Company will pay Bonuses for a Plan Year if and only if the Committee has approved written resolutions either establishing the terms
and conditions relating to the payment of Bonuses that will apply for the Plan Year, or otherwise approving the payment of Bonuses. A Participant will be entitled to a Bonus for Plan Year only if the Participant is an employee or service provider of
the Company when the Company actually pays Bonuses for the Plan Year pursuant to Section 4.4 below and, unless otherwise determined by the Committee, has been employed by, or providing services to, the Company as of June 30, during the
Plan Year to which the Bonus relates. Any Participant whose employment with or service to the Company terminates for any reason before the payment of Bonuses will automatically forfeit all rights under the Plan, and will not have any right to
collect Bonuses or other amounts hereunder. All such Bonuses or other amounts forfeited pursuant to this Section 4.1 will be distributed among the remaining Participants who are employed by or providing services to the Company on the date
the Bonuses or other amounts are paid by the Company. 

  
 - 2 -

	4.2	CALCULATION OF BONUSES. For each Plan Year, each Participant’s Bonus will equal the product of (i) the Participant’s Base Salary, (ii) the Target
Bonus applicable to the Participant, (iii) the Company Factor and (iv) the Participant’s Individual Factor, subject to the Committee’s discretion to pay Bonuses up to any Maximum Bonus Percentage of Base Salary for any Plan Year
in lieu of the Target Bonus; provided, however, that, notwithstanding anything herein to the contrary, in the event the Compensation Committee determines that the Company achieved each of the financial measures included in the criteria for the
Company Factor for a Plan Year, the Bonus of the Chief Executive Officer of the Company for such Plan Year shall be 50% of the Chief Executive Officer’s Base Salary (or such higher percentage approved by the Compensation Committee for such Plan
Year). The Committee will determine the Target Bonus, the Maximum Bonus, and each of these factors in accordance with the following methodology, subject to any modifications or adjustments that the Committee may set forth for a Plan Year in its
determinations of the Plan’s terms and conditions for the Plan Year or as otherwise approved by the Committee, and subject to the pro rata adjustment set forth in Section 4.3 for Participants who were employees for less than the entire
Plan Year. 

  

	 	(a)	Target Bonus. The Committee will establish written target bonus guidelines (referred to as the “Target Bonus”) on the basis of job classifications that
assign a targeted Bonus percentage of Base Salary to each job classification for Executive Officers. The Committee may nevertheless in its sole and absolute discretion vary from these guidelines on a case-by-case basis by providing written notice to
any affected Participant that the Committee has assigned a different Target Bonus or classification to the Participant. Unless the Committee’s written guidelines for a Plan Year determine otherwise, the Target Bonus for the Plan Year for the
Executive Officers shall refer to the following classifications: 

  

			
	 Level
	  	 Job Classification

	6	  	Executive Officers, excluding the CEO
	7	  	CEO

  

	 	(b)	 Company Factor. Within the first 90 days of the Plan Year, the Board will approve the Company’s objectives and assessment criteria. The
Committee will thereafter provide information to each Participant about such objectives and assessment criteria. At the end of the Plan Year, the Committee, with the input from the CEO, will evaluate the Company’s performance by taking this
information into account, along with any other financial or other Company performance measures that the Committee determines to be relevant, and on the basis of these considerations the Committee will in its sole and absolute discretion rate the
Company’s performance on a percentage scale (which includes 0% as the lowest percentage in the range), with that percentage establishing the Company Factor for the Plan Year. In the event the Committee rates the Company’s performance for a
Plan Year at: (i) less than 100%, the Committee shall have the discretion to set the Company Factor at any percentage it deems appropriate (including 0%); (ii) 100%, the Company

  
 - 3 -

	 	 
Factor shall automatically be set at 100%; and (iii) more than 100%, the Committee shall have the discretion to set the Company Factor at any percentage it deems appropriate, provided
that the Company Factor shall not be less than 100%. 

  

	 	(c)	Individual Factor. At the end of the Plan Year, the Manager will determine a Participant’s Individual Factor for a Plan Year on a scale of 0% to 100%, based
on the Manager’s discretionary assessment of the Participant’s overall performance, taking into account a variety of factors including specific duties or goals assigned to the Participant during the Plan Year; provided that, with respect
to any Participant for which the CEO is not the Manager, the CEO shall have final authority to modify a Participant’s Individual Factor for a Plan Year. In the case of the CEO, the Committee shall assess the CEO’s overall performance and
determine the Individual Factor for the CEO for the Plan Year; provided that, in the event the Committee establishes the Company Factor at or above 100%, the Individual Factor for the CEO shall automatically equal 100%.

  

	 	(d)	Maximum Bonus. The Committee will establish written maximum bonus guidelines (referred to as the “Maximum Bonus”) for each Plan Year on the basis of
job classifications that assign a Maximum Bonus percentage of Base Salary to each job classification. The Committee may nevertheless in its sole and absolute discretion vary from these guidelines on a case by case basis by providing written notice
to any affected Participant that the Committee has assigned a different Maximum Bonus or classification to the Participant. Unless the Committee’s written guidelines for a Plan Year determines otherwise, the Maximum Bonus for the Plan Year
shall refer to the classifications set forth in subsection 4.2(a) above. 

  

	4.3	PRO RATED BONUSES. If an employee first becomes a Participant after a Plan Year begins (for example, because of being a new hire) the Committee will adjust the
employee’s Bonus for the Plan Year on a pro rata basis to reflect the number of full weeks during the Plan Year during which the employee was a Participant. For example, an employee who becomes a Participant on June 30th of a Plan Year
ending December 31st would be a Participant for 26 of 52 weeks, and therefore be entitled to a Bonus equal to 50% of the amount determined pursuant to Section 4.2 above for a similarly-situated employee who is a Participant for the entire
Plan Year. 

  

	4.4	TIME OF PAYMENT. The Company will pay Bonuses for a Plan Year as soon as possible after the end of the Plan Year, but in no event later than the December 31st
immediately following the end of the Plan Year. 

  

	4.5	APPLICABLE TAXES. 

  

	 	(a)	Employment Taxes. The Company shall reduce all Bonuses by an amount sufficient to pay all applicable Social Security, withholding, and other employment taxes
that are payable with respect to the Bonuses. 

  
 - 4 -

	 	(b)	Income Taxes and Deferred Compensation. Participants are solely responsible and liable for the satisfaction of all taxes and penalties that may arise in
connection with this Plan (including any taxes arising under Section 409A of the Internal Revenue Code). Neither the Company nor its affiliates nor any of their directors, agents or employees shall have any obligation to indemnify or otherwise
hold any Participant harmless from any or all of such taxes. 

 ARTICLE V 

RIGHTS OF PARTICIPANTS 
  

	5.1	LIMITED RECAPTURE OF BONUSES. The Company may not recover Bonus payments that Participants have appropriately received pursuant to the Plan, subject to any recapture
provision that the Committee adopts in writing during the first three months of a Plan Year, for application to Bonuses payable for the Plan Year. 

  

	5.2	NOT A CONTRACT OF EMPLOYMENT. Nothing in this Plan gives a Participant the right to remain in the employ of the Company. Except to the extent explicitly provided
otherwise in a then effective written employment contract executed by the Participant and the Company, each Participant is an at will employee whose employment may be terminated without liability at any time for any reason. 

ARTICLE VI 

ADMINISTRATION 
 The
Committee shall be responsible for administering the Plan, and shall have the right to construe the Plan, to interpret any provision of the Plan, to make rules and regulations relating to the Plan, and to determine any factual or legal question
arising in connection with the Plan’s operation. The Committee may in its discretion make factual determinations based on any investigation or hearing that the Committee may deem appropriate. Any decision made by the Committee under the
provisions of this Article shall be conclusive and binding on all parties concerned. The Committee may delegate to the Company’s officers or other employees the authority to execute and deliver instruments and documents associated with the
Plan, and to take all other steps deemed necessary, advisable or convenient for the administration of this Plan in accordance with its terms and purpose. 
 ARTICLE VII 
 AMENDMENT OR TERMINATION OF PLAN 

The Committee shall have the unilateral right to amend, suspend, modify or terminate this Plan at any time with respect to all or some Participants and
with respect to any unpaid Bonuses that are or could have become payable, whether for the current or any future years. 
  

  
 - 5 -

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