Exhibit 10.17

SEPARATION AGREEMENT

This Separation Agreement (the "Agreement") is entered into among Fischer Imaging Corp. (the
"Company"), SenoLase Inc. ("SenoLase") and Morgan Nields ("Employee").

RECITALS

WHEREAS, Employee is employed by the Company at its offices at 12300 North Grant Street, Denver, Colorado 80241 as a regular full-time employee with
the title "Chief Technology Officer" and serves as a member of the Company's Board of Directors;

WHEREAS,
Employee was a founder of the Company and served as its Chief Executive Officer until December 2000 and as its Chairman until May 2003;

WHEREAS,
Employee wishes to terminate his regular full-time employment with the Company and to resign as a member of the Company's Board of Directors, in order to concentrate
on development and execution of a plan to spin-out SenoLase, a development stage company with little or no tangible assets which is a majority owned subsidiary of the Company;

WHEREAS,
in consideration therefor, the Company wishes to enter this Separation Agreement, which, among other things, provides for (1) deferred compensation payments,
(2) payment of sales commissions with respect to potential sales to certain clients of the Company listed inExhibit Aattached hereto
(the "Commission Clients") and (3) Employee's continuation as Chief Executive Officer of SenoLase; and

WHEREAS,
in order to accomplish these ends, the parties hereto are willing to enter into this Agreement.

AGREEMENT

NOW THEREFORE, in exchange for the consideration and other agreements specified in this Agreement, the sufficiency of which is hereby acknowledged, the parties
hereto agree as follows:

1.Employee's Resignation and Deferred Compensation Payments. Employee hereby (i) voluntarily resigns as a regular,
full-time employee of the Company with the title "Chief Technology Officer" and (ii) voluntarily resigns as a member of the Company's Board of Directors, in each case effective
December 31, 2003 (the "Resignation Date") and (iii) agrees to remove all of his personal articles and vacate his office on the Company's
premises on or before March 1, 2004. The Company agrees to make twelve (12) payments of $16,666.67 each to Employee, aggregating $200,000, no later than the 15th day of each month in
calendar 2004, beginning on January 15, 2004. Employee agrees that the Company shall be entitled to withhold all taxes and other amounts required by law from such payments and pay Employee the
net amount after deduction thereof. Employee further agrees that he is not entitled to any other pay or post-employment compensation other than these payments and the other consideration
expressly set forth in this Agreement and that he will not make any claim for any such further payments or consideration, under any prior or existing agreement, plan or policy of Company, including
but not limited to the Company's executive retention bonus plan.

2.SenoLase.The Company, Employee and SenoLase hereby agree that Employee shall continue to serve as Chief Executive Officer
and as a director of SenoLase until December 31, 2004, subject to the direction of the SenoLase Board of Directors, a majority of whom shall be named by the Company. Such employment may be
terminated by Employee at any time and by SenoLase with or without Cause (as defined in Section 5 below). It is the expectation of the parties that Employee will pursue a plan for spinning out
SenoLase from the Company, upon such terms as are acceptable to the third parties who propose to provide financing to SenoLase and to the SenoLase Board of Directors.

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3.Commission Agreement.While Employee is not required to provide any services to the Company with respect to such
Commission Clients or otherwise after the Resignation Date, the Company agrees to pay Employee sales commissions on product sales by the Company after the Resignation Date to the Commission Clients
listed on Exhibit A hereto as follows:



4.Litigation Defense Costs.



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5.Termination.Notwithstanding any other term in this Agreement, the Company may terminate this Agreement immediately for
Cause. As used herein, "Cause" shall mean the following: (a) Employee's knowing commission of a fraudulent act that causes material injury to the
Company; (b) Employee's material breach of any of his covenants or agreements hereunder, which breach is not cured within 30 days of written notice by the Company; or
(c) Employee's conviction of a crime that either results in imprisonment or involves embezzlement, dishonesty, or activities materially injurious to the Company or its reputation, whether in
connection with the Company's affairs or otherwise. Whether Cause exists to terminate this Agreement shall be determined in the reasonable discretion of the Company's Board of Directors. In the event
of a termination of this Agreement for Cause, the Company will not have any ongoing financial obligations to Employee whatsoever and Employee will not be entitled to any further compensation, payments
or benefits set forth in this Agreement; provided, however, that termination of this Agreement shall not affect the Company's obligations under Section 4 hereof.

6.Stock Options. Employee currently holds certain options to purchase shares of the Company's common stock (the
"Options") which would, under the terms of the plan under which the options were granted, remain exercisable for ninety (90) days after the
Resignation Date. The Company agrees to extend the date on which the Options may be exercised until the later of (i) December 31, 2004, or (ii) six months after the Company is
listed on the Nasdaq Stock Market or a national securities exchange (but in no event later than June 30, 2005).

7.Independent Contractor.After the Resignation Date, Employee will be treated by the Company as an independent contractor
and will not be eligible to participate as an employee in any benefit or benefit plan offered by the Company to its employees.

8.Taxes.The Commissions and other consideration provided to Employee by the Company under this Agreement shall be treated
by the Company as income to Employee from which federal and state withholding and taxes shall be deducted.

9.The Company's Confidential Information.Employee acknowledges that, by reason of Employee's past and current positions
with the Company, Employee has been given access to

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Confidential
Information with respect to the business affairs of the Company. The Company's "Confidential Information" includes, but is not limited to, any trade secrets, strategic product plans, new
product information, customer lists, customer information, financial information, new product introduction plans, product suppliers terms and agreements, supplier agreements, etc. "Confidential
Information" does not include information that is publicly disclosed by the Company, is in the public domain, or that Employee obtains from a third party without breach of this agreement. Employee
represents and agrees that Employee has not disclosed any material Confidential Information to any third party in violation of his obligations to the Company. Employee further agrees that following
the Resignation Date Employee will not, directly or indirectly, use, disclose, or cause to be used or disclosed in any way, any Confidential Information obtained as a result of or in connection with
Employee's employment with the Company, without the express prior written consent of the Company.

10.Return of Company Property.Employee agrees to return all of the Company's property to the Company by delivering it to
Stephen G. Burke, the Company's Executive Vice President and CFO, no later than the Resignation Date. This property includes, but is not limited to, the Company's documents and files (in any recorded
media, such as papers, computer disks, copies, transparencies, and microfiche), materials, PDAs, cell phones, keys, credit cards, sports tickets, laptops, computer disks and badges, provided, however,
that if and to the extent that Employee continues to utilize his office at the Company's headquarters building after the Resignation Date up to February 29, 2004 (the
"Holdover Period") as permitted by this Agreement, Employee may retain a key to the building and to his office and may continue to use the computer and
other Company property currently in his office during the Holdover Period. During the Holdover Period, Employee may also utilize the Company's secretarial and other office services as he has done in
the past. Employee agrees that, to the extent that Employee possesses any files, data, or information relating in any way to the Company or the Company's business on any personal computer, Employee
will delete the data, files, or information (and will retain no copies in any form) on the Resignation Date or before the end of the Holdover Period. Employee may, at his option, assume the lease (and
related buyout option) for his vehicle currently leased by the Company. The Company shall be responsible for cancellation charges on any cell phone or PDA used previously used by Employee for Company
business which Employee returns to the Company pursuant to this Section 10.

11.Employee's ADEA Release of the Company.Employee acknowledges and agrees that, by entering into this Agreement, Employee
is waiving any and all rights that he may have arising from the Age Discrimination in Employment Act of 1967 ("ADEA"), as amended, which have arisen on
or before the date of execution of this Agreement. Employee further expressly acknowledges and agrees that:



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and sent by certified mail, return receipt requested.



12.No Other Releases.Employee and the Company agree that, by entering into this Agreement, other than the ADEA claims
released by Employee in Section 11 hereof, neither Employee nor the Company have released or waived any claims that either one may have against the other for any reason.

13.Confidentiality of Agreement.Employee acknowledges that the Company may be required to disclose the contents of this
Agreement to comply with its obligations under applicable securities laws and that, as a result, he has no reasonable expectation that it or its contents will remain confidential.

14.No Admission of Liability.The Company and Employee agree that nothing contained in this Agreement, and no action taken
by the Company or Employee with regard to this Agreement, shall be construed as an admission of liability or any fact that may give rise to liability for any purpose whatsoever by the Company or
Employee.

15.Injunctive Relief.In the event of a breach of any of the covenants contained in this Agreement, it is understood that
damages will be difficult to ascertain and the Company may petition a court of law or equity for injunctive relief in addition to any other relief which the Company may have under the law or under
this Agreement.

16.Non-Disparagement.Employee agrees not to make to any person any statement that disparages the Company or
reflects negatively upon the Company, including, without limitation, any statement regarding the Company's financial condition, business practices, employment practices, or its officers, directors,
employees, or affiliates. Company agrees not to make any statement that disparages Employee.

17.Acknowledgments.Employee acknowledges and agrees that up to the Resignation Date, the Company has paid Employee all
employment compensation and has provided Employee with all benefits to which Employee is entitled through and including the Resignation Date.

18.Severability.If any provision of this Agreement is declared by any court of competent jurisdiction to be invalid for any
reason, such invalidity shall not affect the remaining provisions of this Agreement, which shall be fully severable, and given full force and effect. Any claim by Employee against the Company shall
not constitute a defense to enforcement by the Company.

19.Governing Law and Venue.This Agreement shall be construed in accordance with the laws of Colorado. Venue and
jurisdiction will be in Colorado state or federal courts.

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20.Entire Agreement.The parties hereto understand and agree that this Agreement contains all the agreements between the
Company and Employee. Except as expressly stated herein, this Agreement supersedes any and all prior oral or written promises or agreements between the Company and Employee. Employee acknowledges that
he has not relied upon any promise, representation, or statement other than those set forth in this Agreement. This Agreement cannot be modified except in a writing signed by the Company and Employee.

21.Assignment.The Company may assign its rights under this Agreement. No other assignment will be permitted except by
written permission of the Company and Employee.

22.Counterparts; Facsimile Signature.This Agreement may be executed simultaneously in two or more counterparts, any one of
which need not contain the signatures of more than one party, but all of which taken together shall constitute one and the same Agreement. This Agreement may be executed by facsimile signature and a
facsimile signature shall constitute an original signature.

23.Attorney's Fees.In the event a party hereto commences legal proceedings to enforce the terms of this Agreement, the
prevailing party shall be entitled to recover its or his attorneys' fees.

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

CAUTION; PLEASE READ ENTIRE DOCUMENT BEFORE SIGNING

|FISCHER IMAGING CORPORATION |  | MORGAN NIELDS                           
|--------------------------- |  | ----------------------------------------
|By:                         |  | /s/HARRIS RAVINEHarris Ravine, President
|Dated:                      |  | 12/19/03                                

|SENOLASE INC. |  |                    
|------------- |  | -------------------
|By:           |  | /s/MORGAN W. NIELDS

|Typed Name: |  | Morgan W. Nields |  | 
|----------- |  | ---------------- |  | 

|Title: |  | CEO & President |  | 
|------ |  | --------------- |  | 

|Dated: |  |  |  | 
|------ |  |  |  | 

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EXHIBIT A

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|Column A                                                                                                                                                                                                                                      |  | Column B                                                                                                                                                                                            |  | Column C                                                                             
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------
|UCSF
UCSD
Tommy Cupples
Palmetto Richland
Kathy Schilling
Martin Yaffe/Sunnybrook
Northwestern
HUP
Pittsburgh McGee
Duke
Mayo Clinic
UCLA
Stanford
University of New Mexico
Emory
U Mass
Moffit
Michigan
Brigham and Womens
Mt. Sinai Toronto |  | St Joe's Orange
Palmetto Baptist
Pittsburgh Allegheny General
Sally Jobe Breast Center
MD Anderson
University of Minnesota
Wende Young MD
Shaw Cancer Center
University of Colorado
Len Glassman MD |  | Kings College
St Barts
Lattazio Bari
Tabar Falun
Erlangen
Dana/Levy
Prof. Wolf Berlin

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