Document:

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                                                                   EXHIBIT 10.10

                                 OEM AGREEMENT

        This OEM AGREEMENT (the "Agreement") is effective as of the 17th day of
October, 2000 (the "Effective Date"), by and between QUINTON INSTRUMENT COMPANY,
a Washington corporation ("Quinton") with its principal place of business at
3303 Monte Villa Parkway, Bothell, Washington 98021 and MORTARA INSTRUMENT,
INC., a Wisconsin corporation ("Mortara") with its principal place of business
at 7865 North 86th Street, Milwaukee, Wisconsin 53224.

        Whereas, Mortara desires to establish an exclusive worldwide marketing
relationship for its hardware and software Products in the Territory (as defined
in Exhibit B);

        Whereas, Quinton sells a broad range of devices for use by health care
and consumers and desires to add to its product line;

        Whereas, Quinton and Mortara desire to enter into a definitive agreement
to which Quinton would purchase the Products from Mortara and on an Exclusive
basis (as defined below), combine and assemble them with other Quinton products
and resell them to third-party distributors and end-users through a network of
Quinton sales and distribution channels. Now, Therefore, in consideration of the
foregoing premises and other good and valuable consideration, the parties hereby
agree as follows:

                                    ARTICLE 1

DEFINITIONS. As used herein, the following terms shall have the following
meanings:

1.1     "AGGREGATE ASP" shall be defined as the composite or group average
        selling price over a calendar quarter for the Products.

1.2     "COMPETITIVE CHANGE OF CONTROL" shall be deemed in effect in the event a
        competitor of one party obtains equity ownership in the other party in
        excess of 50%.

1.3     "COMBINED PRODUCT(S)" shall mean the combination integration, and/or
        bundling of the Product with Quinton products and equipment, ready for
        delivery to End Users.

1.4     "CONFIDENTIAL INFORMATION" shall mean, subject to the exceptions set
        forth in Section 10.2, any information received by one party from the
        other party which is designated in writing as confidential, or, if
        disclosed orally, identified at the time of disclosure as confidential.
        Confidential Information may include know-how, data, processes or
        techniques relating to the Products and any research project, work in
        process, future development, scientific engineering, manufacturing,
        marketing, business plan, financial or personnel matter relating to
        either party, its present or future products, sales, suppliers,
        customers, employees, investors or business, and provided to either
        party pursuant to this Agreement.

1.5     "END USER" shall mean an individual or entity that acquires the Product
        for his or her own use and not for resale.

1.6     "EXCLUSIVE" shall mean the distribution of Products in the Territory to
        End Users but does not include exclusive access to the underlying
        technology of the Products which Mortara is free to license to other
        manufacturers in the form of product offerings outside of the Holter
        market segment. Mortara maintains the right to supply its existing
        customer base with replacement products when so solicited by members of
        its currently existing customer base. Mortara also maintains the right
        to supply products including Holter systems directly to customers for
        research purposes.

1.7     "FDA" shall mean the United States Food and Drug Administration, and any
        successor thereto.

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1.8     "FD & C ACT" shall mean the United States Federal Food, Drug and
        Cosmetic Act, as amended, and applicable regulations promulgated
        thereunder, as amended from time to time.

1.9     "FINAL ACCEPTANCE" shall mean Quinton has completed its functional
        testing (as defined in Section 2.3.2) on any Software or Hardware
        product provided by Mortara under this Agreement.

1.10    "GOOD MANUFACTURING PRACTICES" OR "GMP" shall mean the good
        manufacturing practice regulations promulgated from time-to-time by the
        FDA for the manufacture of medical devices in the United States and
        other countries. "cGMP" or "current GMP" shall mean the GMP practices in
        effect at a particular time, including in the United States the
        requirements set forth in the FDA's current Quality System Regulation,
        as it may be amended from time to time.

1.11    "HARDWARE" means the H-12 Recorder and any future hardware products
        developed by Mortara on Quinton's behalf and provided by Mortara under
        this Agreement.

1.12    "LEAD-TIMES" means the estimated purchasing lead time for the Product as
        set forth in Exhibit A.

1.13    "PREPAYMENT AMOUNT" shall mean Quinton's prepayment to be applied toward
        future Software license fees that may become due under the Agreement.

1.14    "PRODUCT(S)" shall mean the then current version of Mortara's Software
        and Hardware detailed in Exhibit A, together with any commercially
        available documentation in electronic and hardcopy formats, and any
        related technical information, updates and enhancements thereto, and any
        future Software or Hardware products Mortara develops on Quinton's
        behalf under this Agreement. The Products include Hardware, Product
        Accessories, and Software.

1.15    "PRODUCT ACCESSORY" shall mean those consumable item(s) provided as part
        of the Products, which include patient cables and electrode assemblies.

1.16    "REGULATORY APPROVAL" shall mean, with respect to a country, all
        approvals, licenses, registrations, clearances or authorizations of the
        FDA or any other federal, state or local regulatory agency, department,
        bureau or other government entity, necessary for the use, manufacture,
        storage, import, transport and Sale of a Product in such country.

1.17    "SOFTWARE" includes the Holter Scanner Software, any available options
        and future software products developed by Mortara on Quinton's behalf
        and provided by Mortara under this Agreement.

1.18    "SPARE OR REPLACEMENT PARTS" shall be defined as those parts used to
        repair or replace any Product failures.

1.19    "SELL", "SALE" OR "SOLD" shall mean to sell, license, lease, distribute,
        market, install or otherwise dispose of and to use in connection with
        those activities.

1.20    "TRANSFER FEE" shall mean the fee Quinton shall pay Mortara for each
        copy of the Product distributed to End Users, except for reasonable
        numbers of Product which are used by Quinton internally for
        demonstration and development purposes. Quinton agrees to maintain
        control of and accountability for the distribution of demonstration and
        development copies of the Product.

                             ARTICLE 2: THE PRODUCT

2.1     GRANT OF QUINTON RIGHTS. In consideration of the Transfer Fees set forth
        in Exhibit A, and subject to and expressly conditioned upon compliance
        with the terms and conditions of this Agreement, Mortara hereby grants
        to Quinton and Quinton hereby accepts an exclusive, nontransferable,
        license to combine the Products with Quinton products or equipment and
        deliver the Products, together with any available

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        documentation, and as combined, integrated and/or bundled with Quinton
        products or equipment to End Users in the Territory.

2.2     LICENSE. Quinton shall distribute the Products for use under materially
        and substantially similar terms and conditions to those in Quinton's
        standard of Software License and Limited Warranty and/or its Limited
        Warranty for Hardware. The current version of Quinton's Software License
        and Limited Warranty is attached as Exhibit D. The current version of
        Quinton's Limited Warranty for Hardware is attached as Exhibit E.
        Notwithstanding termination or expiration of this Agreement, End User
        licenses validly granted prior to expiration or termination of this
        Agreement shall survive any such expiration or termination and following
        any termination of this Agreement and for so long thereafter as
        necessary for Quinton to satisfy, and solely to satisfy, its then
        existing obligations for maintenance, warranty or support services to
        its End Users, Quinton shall have a limited license to use two (2)
        copies of the Products solely for such purposes.

2.3     DEVELOPMENT OF PRODUCT

        2.3.1   Mortara is responsible for the development of the Product and
                delivery of the Product to Quinton.

        2.3.2   Validation and verification testing shall be defined and testing
                conducted by Quinton on the Products as delivered by Mortara.
                During the testing period, at its sole cost and expense, Mortara
                shall provide Quinton with technical assistance to assist in the
                validation and verification testing process.

        2.3.3   Quinton and Mortara agree to discuss the development of a
                collaboratively specified recorder to replace the H-12.

2.4     REGULATORY APPROVALS BY MORTARA. Mortara will be solely responsible for
        filing, obtaining and maintaining any and all Regulatory Approvals
        relating to the Products provided to Quinton under this Agreement. All
        Regulatory Approvals will be owned by and filed in the name of Mortara,
        provided, however, that Quinton shall have the right to reference all
        such Regulatory Approvals in its Product labeling. Quinton will
        cooperate with Mortara, at Mortara's expense, in such manner as Mortara
        may reasonably request to assist in obtaining such Regulatory Approvals.

2.5     TECHNOLOGY ESCROW. Quinton has the right, but not the obligation, to
        require Mortara to place all Product and corresponding documentation,
        sufficient to manufacture and Sell the Product, with Regulatory
        Approval, in an escrow account upon the occurrence of any of the factors
        listed below: (1) bankruptcy or insolvency of Mortara, (2) uncured
        breach of the Agreement by Mortara in accordance with Article 12 of this
        Agreement, or (3) if greater than 50% of the voting shares of Mortara
        are transferred to a company deemed by Quinton to be a competitor of
        Quinton. Within sixty (60) days of Quinton's written notice to Mortara
        of Quinton's decision to require the establishment of an Escrow account:
        (i) the parties will select a mutually agreed upon person or entity to
        serve as the holder of a technology escrow (the "Technology Escrow
        Holder"); (ii) Mortara will establish a technology escrow account with
        the Technology Escrow Holder; and (iii) Mortara will negotiate and
        execute an escrow agreement which will provide for the release of the
        escrow contents to Quinton by the Technology Escrow Holder upon
        occurrence of the following events: any breach of this Agreement by
        Mortara, or failure of Mortara to do business in the normal course. Upon
        execution of the escrow agreement, Mortara will place in the technology
        escrow account the information and data necessary to manufacture the
        Products. During the term of this Agreement Mortara shall update the
        escrow contents whenever significant Product changes occur. Quinton will
        bear all Escrow fees associated with establishing and maintaining the
        Escrow account and has the right to audit the Escrow account to insure
        completeness.

                ARTICLE 3: HARDWARE PRODUCT FORECASTS AND ORDERS

For the initial six (6) month period following the Effective Date of the
Agreement, Quinton will provide Mortara with a firm purchase order with
scheduled Product deliveries. Estimated quantities for this initial purchase
order are

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attached hereto as Exhibit A. Thereafter on a monthly basis Quinton will provide
Mortara with a rolling six month schedule of forecasted demand for the Product.
Quinton will deliver a firm purchase order for months l-3, and forecasted demand
for months 4-6. Quinton may modify forecasted order quantities in accordance
with the Production Schedule Ordering Parameters, below:

        Production Schedule Ordering Parameters:

        Months 1-3      Firm purchase order, schedule unchangeable

        Months 4-6      Firm forecast. Quinton may adjust deliveries +/- 30% of
                        forecasted deliveries.

Lead Times will be reviewed by Mortara and communicated to Quinton no less than
on a semi-annual basis, and any necessary adjustments will be mutually agreed
upon between the parties and incorporated into Exhibit A.

Upon any termination or expiration of this Agreement, Quinton will provide
Mortara with a firm purchase order for 100% of its forecasted demand for months
4 - 6, with scheduled delivery dates not to exceed 180 days.

                       ARTICLE 4: PRICES AND PAYMENT TERMS

4.1     FEES. Transfer Fees for the Products are set forth in Exhibit A attached
        hereto.

4.2     MINIMUM LICENSE AMOUNTS. As described in Exhibit A, Quinton shall agree
        to purchase a minimum of [*] Holter Scanner Software Licenses per year
        during the term of this Agreement. It is agreed that these Minimum
        License Amounts will commence upon the first month following Mortara's
        release of the Q-Track II Software, as described in Exhibit C. Until
        such time as Minimum License Amounts commence, Quinton will purchase
        licenses as follows: remainder of 2000, [*] licenses to be paid as soon
        as Mortara can provide a Quinton-labeled Software version of Mortara's
        currently available H-Scribe holter software; thereafter, [*] licenses
        per month until release of Q-Track II Software, payable on the first day
        of each applicable month. Upon release of the Q-Track II Software,
        Quinton agrees to pay for [*] licenses, to be deducted from future
        license fees that may become due hereunder.

4.3     REPORTING AND PAYMENT TERMS.

        4.2.1  For all Hardware Products ordered by Quinton and shipped to
               Quinton by Mortara, Quinton will pay invoices received from
               Mortara [*] days, FOB Milwaukee, WI.

        4.2.2  For all Software copied and distributed by Quinton, Quinton
               agrees to deliver monthly reports as detailed in Section 4.2.3 to
               Mortara within thirty (30) days after the end of each month in
               which the Software was Sold, specifying the number of copies of
               Software and Hardware distributed to End Users during the month
               just ended. Each report shall be signed by a duly authorized
               representative of Quinton and forwarded to Mortara at its
               then-current notice address, addressed to the attention of Brian
               Brenegan. All reports shall be accompanied by payment due, if
               any. Payment of any license fees due Mortara under this Agreement
               will be reduced by an amount equal to any Minimum License
               Amounts. At the end of each 12 month period, Quinton will pay for
               any unpurchased Software Licenses in order to reach the agreed
               minimum licenses per year, if applicable.

        4.2.3  Monthly Reports. Quinton's monthly reports shall include "Point
               of Sale" information which shall contain at a minimum, the
               following information: beginning and ending report dates, End
               User purchase date, End User name, Software name, part number,
               and quantity Sold to End User minus returns.

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4.3     PRICE ADJUSTMENTS. If the Aggregate ASP for the Products increases or
        decreases by 10% or more over previous computations, then Quinton and
        Mortara shall enter into a good faith negotiation with the objective of
        adjusting transfer prices as deemed appropriate and necessary by both
        parties. The intent of this good faith negotiation is to work toward
        maintenance of margins for both parties.

4.4     WITHHOLDING TAXES. Payments to Mortara hereunder shall be made without
        deduction other than such amount (if any) Quinton is required by law to
        deduct or withhold. Payments subject to such deductions or other
        withholdings shall be increased by an amount which shall equal, as
        nearly as possible, the amount required to be deducted or withheld, less
        any tax benefits realizable by Mortara. Quinton shall obtain a receipt
        from the relevant taxing authorities for all withholding taxes paid and
        forward such receipts to Mortara to enable Mortara to claim any and all
        tax credits for which it may be eligible. Quinton shall reasonably
        assist Mortara in claiming exemption from such deductions or
        withholdings under any double taxation or similar agreement or treaty
        from time to time in force.

4.5     OTHER TAXES, TRANSPORTATION AND INSURANCE. Quinton will pay all non-U.S.
        export charges, import duties, any and all sales, use, excise, value
        added or other taxes or assessments imposed by any governmental
        authority upon or applicable to any sale to Quinton under this
        Agreement, and all costs and charges for transportation, brokerage,
        handling and insurance of the Products from the point of shipment.

4.6     RECORDS, AUDIT OF SALES AND EXPENSES. During the term of the Agreement
        and for one (1) year thereafter, Mortara shall have the right, at its
        sole cost and expense, to audit Quinton's books and records as necessary
        to verify the monthly reports issued by Quinton under Section 4.2.2
        above and Quinton's compliance with the terms of this Agreement. Quinton
        shall make its books and records available for inspection during
        Quinton's normal business hours. Mortara shall give Quinton no less than
        ten (10) days prior written notice of its desire to perform such an
        audit. If any such audit should disclose that Quinton's reports
        understate the actual fees payable then Quinton shall promptly pay the
        amount of the discrepancy to Mortara. Should such understatement of fees
        payable by Quinton be five percent (5%) or more, Quinton shall also
        reimburse Mortara for any expenses incurred in conducting the audit,
        including auditor's fees and reasonable travel expenses, if any, up to a
        maximum of $5,000. If any such audit discloses Quinton overpaid fees to
        Mortara, then the amount of overpayment shall be credited against
        Quinton's next monthly payment(s). Any Quinton records, books or
        accounting information received by Mortara or its auditors during any
        audit shall be treated as Confidential Information as detailed in
        Article 11.

                        ARTICLE 5: MARKETING AND SERVICE

5.1     PROMOTION AND MARKETING. Quinton agrees to promote the Sale, marketing
        and distribution of the Products in the Territory in a manner consistent
        with this Agreement and generally accepted business practices.

5.2     BUSINESS MEETINGS. Mortara and Quinton will meet each year during the
        term of the Agreement to review sales performance, average selling price
        of Product, Quinton's gross margins on Net Sales, Mortara's Transfer
        Fees for Products and other relevant issues.

5.3     PROMOTIONAL LITERATURE. Upon request, Mortara will furnish Quinton, at
        Mortara's expense, with all available electronic files of Product
        documentation, technical requirements and the like in order to aid
        Quinton in effectively carrying out its activities under this Agreement.
        Quinton shall be responsible for and have exclusive rights for the
        design and production of promotional literature for the Products as
        delivered by Quinton. Quinton shall include any copyright notices of
        Mortara as requested in writing by Mortara.

5.4     REPLACEMENT OR SERVICE OF DEFECTIVE PRODUCTS DURING THE WARRANTY PERIOD.
        Mortara will replace or repair all defective Products returned or
        reported to it by Quinton at no cost during the warranty period.

5.5     END USER SUPPORT. Quinton will be responsible for direct interaction
        with its End Users for warranty and non-warranty related field service
        and ongoing support for the Product.

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5.6     TECHNICAL SUPPORT TO QUINTON. At its own cost and expense, Mortara will
        be responsible for providing Quinton technical service and applications
        personnel with technical support for the Products, including telephone
        consultation and assistance sufficient to enable Quinton to support its
        End Users of the Products. In addition, Mortara agrees to provide
        technical assistance to Quinton in adapting the Products, specifically,
        components and algorithms, to Quinton's products.

5.7     SPARE OR REPLACEMENT PARTS. Quinton may order Spare or Replacement Parts
        for the Products during the term of this Agreement at the prices listed
        in Exhibit A. Mortara agrees to provide Quinton with Spare or
        Replacement Parts for the Products for a period of twelve (12) months
        following any expiration or termination of this Agreement.

5.8     DEFECT TRENDING. No less than once each quarter Quinton shall supply
        Mortara with a written report detailing any commonly experienced
        component failures or service problems with the Products ("Incidents").
        Upon reasonable notice to Quinton from Mortara, records of Incidents
        shall be made available to Mortara for inspection. Mortara agrees to use
        its best efforts to promptly correct problems or defects that degrade
        the use of the Product or result in an increased hazard risk.

5.9     EXPENSES. All expenses incurred by either Mortara or Quinton in
        connection with the performance of its obligations hereunder will be
        borne solely by the party incurring the expense. Mortara and Quinton
        will each be responsible for appointing and compensating its own
        employees, agents and representatives.

                       ARTICLE 6: MORTARA PRODUCT WARRANTY

6.1     PRODUCT WARRANTY. Mortara warrants that the Products provided to Quinton
        in accordance with the terms hereof shall be (i) in compliance with and
        perform in accordance with the Product specifications; (ii) developed in
        compliance with the FD&C, cGMP and other applicable laws, rules and
        regulations and (iii) free from defects in material and workmanship.
        Hardware will be warranted for a period of fourteen (14) months from the
        date on which the Hardware is delivered to Quinton; Software and Product
        Accessories will be warranted for a period of ninety (90) days from the
        date on which the Software or Product Accessories are delivered to the
        End User.

6.2     EXCLUSIONS. The above warranties shall not apply to any Product which
        (a) has been altered by Quinton without approval of Mortara, (b) has not
        been operated, repaired or maintained in accordance with any handling,
        maintenance or operating instructions supplied by Mortara or (c) has
        been subjected to unusual physical or electrical stress, misuse, abuse,
        negligence or accident.

6.3     DISCLAIMER. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, MORTARA
        MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE
        PRODUCTS, AND MORTARA EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTY OF
        MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

6.4     LIMITATION OF LIABILITY. To the maximum extent permitted by applicable
        law, in no event shall Mortara be liable for any special, incidental, or
        consequential damages whatsoever (including, without limitation, damages
        for loss of business profits, business interruption, loss of business
        information, or any other pecuniary loss) arising out of the use or
        inability to use the Product, even if Mortara has been advised of the
        possibility of such damages. Because some States and Jurisdictions do
        not allow the exclusion of limitation of liability for consequential or
        incidental damages, the above limitation may not apply.

                    ARTICLE 7: REPRESENTATIONS AND WARRANTIES

7.1     MUTUAL REPRESENTATIONS AND WARRANTIES. Each party hereby represents and
        warrants to the other party that (i) it has the right and lawful
        authority to enter into this Agreement; (ii) this Agreement is legal and
        valid and the obligations binding upon each party are enforceable in
        accordance with their terms except insofar as the enforceability hereof
        may be limited by applicable bankruptcy, insolvency, receivership,

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        moratorium and other similar laws affecting the rights of the creditors
        generally, or general principles of equity regardless of whether
        asserted in a proceeding in equity or at law; and (iii) the execution,
        delivery and performance of this Agreement does not conflict with any
        agreement or understanding, oral or written, to which such party may be
        bound, nor violate any law or regulation of any court, governmental body
        or administrative or other agency having jurisdiction over it.

7.2     PATENTS. Mortara warrants to Quinton that (a) it is the owner of the
        entire right, title and interest in the Products and has all authority
        necessary to grant the licenses in and to the Products herein; and which
        is necessary for the manufacture, use, offer for Sale, Sale and
        importation of the Products; and (b) manufacture, use, offer for Sale,
        Sale and importation of the Products has not been found to infringe, and
        to the best of Mortara's knowledge is not now infringing, and has not
        been the subject of any notice or allegation, received by Mortara as of
        the Effective Date, of infringement of any intellectual property right
        of a third party.

                           ARTICLE 8: INDEMNIFICATION

8.1     INDEMNIFICATION BY MORTARA. Mortara agrees to indemnify, defend and hold
        Quinton harmless from and against all claims, damages, losses, costs and
        expenses, including reasonable attorney's fees and court costs
        (collectively "Claims"), which Quinton may incur to the extent such
        Claims arise out of (i) a Product's infringement of any United States
        federal or state intellectual property right of a third party, or (ii)
        the death or injury of any person or damage to property resulting from
        (a) Mortara's breach of its representations, warranties and covenants
        contained in this Agreement (b) Mortara's design, testing or manufacture
        of the Products to the extent not caused by fault attributable to
        Quinton, or (c) the negligence, recklessness or willful misconduct of
        Mortara or its officers, employees or agents.

8.2     INDEMNIFICATION BY QUINTON. Quinton agrees to indemnify, defend and hold
        Mortara harmless from and against all claims, damages, losses, costs and
        expenses, including reasonable attorney's fees and court costs
        (collectively "Claims"), which Mortara may incur to the extent that such
        Claims arise out of (i) Quinton's breach of its representations,
        warranties and covenants contained in this Agreement, (ii) the Sale,
        promotion or other distribution of Products by Quinton otherwise than in
        a manner consistent with the Agreement, (iii) any representation or
        warranty given by Quinton with respect to the Products (other than
        product warranty given by Mortara in Article 6 hereto and other than the
        labeling for Products as cleared by the FDA), (iv) repairs or services
        rendered by Quinton that do not comply with Mortara's recommended
        guidelines, or (v) injury, illness or death of any person to the extent
        such injury, illness or death to other persons arises out of or results
        from the negligence, recklessness or willful misconduct of Quinton or
        Quinton's officers, employees or agents.

8.3     LIMITATION OF LIABILITY. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE
        OTHER FOR ANY INDIRECT OR CONSEQUENTIAL DAMAGES (INCLUDING WITHOUT
        LIMITATION, LOST PROFITS), EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE
        POSSIBILITY THEREOF. Each party acknowledges that the foregoing
        limitations are an essential element of the Agreement between the
        parties and that in the absence of such limitations the pricing and
        other terms set forth in this Agreement would be substantially
        different.

8.4     INDEMNIFICATION PROCEDURE. The party seeking indemnification under this
        Article 8 (the "Indemnified Party") shall (i) give the other party (the
        "Indemnifying Party") written notice of the relevant Claim and the
        related facts with reasonable promptness after becoming aware of same,
        (ii) reasonably cooperate with the Indemnifying Party, at the
        Indemnifying Party's expense, in the defense of such claim, and (iii)
        give the Indemnifying Party the right to control the defense and
        settlement of any such claim, except that the Indemnifying Party shall
        not enter into any settlement that affects the Indemnified Party's
        rights or interest in any intellectual property the Indemnified Party
        controls, without the Indemnifying Party's prior written approval. The
        Indemnified Party shall have no authority to settle any claim on behalf
        of the Indemnifying Party.

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8.5     INSURANCE. Mortara shall maintain, during the term of this Agreement and
        for a period of five (5) years after expiration or termination of this
        Agreement, comprehensive general liability insurance, including full
        products liability coverage, with an insurance carrier with a rating of
        VII A Best or better, and coverage limits of not less than $1,000,000
        per occurrence and at least $2,000,000 aggregate coverage for claims of
        bodily injury and property damage arising out of any loss. Such policy
        or policies shall include Quinton as named insured in such policy or
        policies. Such policy or policies shall also expressly cover any
        liability Mortara may incur as Indemnifying Party under this Agreement.

                   ARTICLE 9: PRODUCT RECALLS, ADVERSE EVENTS

9.1     PRODUCT RECALL. In the event that any governmental agency or authority
        issues a recall or takes similar action in connection with the Products,
        or in the event either party determines that an event, incident or
        circumstance has occurred which may result in the need for a recall or
        market withdrawal, the party with such information shall, within
        twenty-four (24) hours, advise the other party of the circumstances by
        telephone or facsimile. Quinton shall have the right to control the
        arrangement of any Product recall, and the parties will cooperate with
        each other in implementing such recall. Specifically, the parties shall
        cooperate in the event of a Product recall with respect to the
        reshipment, storage or disposal of recalled Products; the preparation
        and maintenance of relevant records and reports; and notification to any
        recipients or End Users.

9.2     ADVERSE EVENTS. Each party shall advise the other party, by telephone or
        facsimile, within such time as is required by the FDA (with respect to
        the severity of an adverse event) after it becomes aware of any
        complaints, adverse event reports or safety issues potentially caused by
        use of the Products or to which the use of the Products may have
        contributed as well as any Product malfunction or any other reportable
        events under 21 CFR 803-804 or similar laws and regulations in other
        countries. Such advising party shall provide the other party with a
        written report delivered by confirmed facsimile of any such reports,
        stating the full facts known to it, including but not limited to,
        customer name, address, telephone number and serial number, if any, of
        the Products involved.

                      ARTICLE 10: CONFIDENTIAL INFORMATION

10.1    NONDISCLOSURE OBLIGATIONS. During the term of this Agreement, and for a
        period of three (3) years after termination hereof, each party will
        maintain all Confidential Information in trust and confidence and will
        not disclose any Confidential Information to any third party or use any
        Confidential Information for any unauthorized purpose. Each party may
        use such Confidential Information only to the extent required to
        accomplish the purposes of this Agreement. Confidential Information
        shall not be used for any purpose or in any manner that would constitute
        a violation of any laws or regulations, including without limitation the
        export control laws of the United States. Confidential Information shall
        not be reproduced in any form except as required to accomplish the
        intent of this Agreement. Each party will use at least the same standard
        of care as it uses to protect proprietary or confidential information of
        its own, which shall at minimum be a reasonable standard of care. Each
        party will promptly notify the other upon discovery of any unauthorized
        use or disclosure of the Confidential Information. All information that
        is to be held confidential shall be given only to individuals who are
        made aware of the confidential nature of the information and who have
        signed a confidentiality agreement or who have a fiduciary
        responsibility to the disclosing party and who have a need to know.

10.2    EXCEPTIONS. Confidential Information shall not include any information
        which: (i) is now, or hereafter becomes, through no act or failure to
        act on the part of the receiving party, generally known or available;
        (ii) is known by the receiving party at the time of receiving such
        information, as evidenced by its written records; (iii) is hereafter
        furnished to the receiving party by a third party, as a matter of right
        and without restriction on disclosure; (iv) is independently developed
        by the receiving party without any breach of Section 10.1; (v) is the
        subject of a written permission to disclose provided by the disclosing
        party; or (vi) is of such inconsequential nature as to render it
        valueless. The parties agree that the material financial terms of this
        Agreement will be considered the Confidential Information of both
        parties. However, each party

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        shall have the right to disclose the material financial terms of this
        Agreement to any potential acquirer, merger partner, or other bona fide
        potential financial partner, subject to a requirement to secure
        confidential treatment of such information consistent with the Agreement
        or if it is prudent or proper to make such disclosure to comply with
        applicable government regulations; provided that the disclosing party
        shall utilize reasonable efforts to not publicly disclose such
        information to the extent legally permitted and practicable.

10.3    AUTHORIZED DISCLOSURE. Notwithstanding any other provision of this
        Agreement, each party may disclose Confidential Information if such
        disclosure is in response to a valid order of a court or other
        governmental body of the United States or any political subdivision
        thereof; provided, however that the responding party shall first have
        given notice to the other party hereto and shall have made a reasonable
        effort to obtain a protective order requiring that the Confidential
        Information so disclosed be used only for the purposes for which the
        order was issued; is otherwise required by law; or is otherwise
        necessary to secure financing, prosecute or defend litigation or comply
        with applicable governmental regulations, including regulatory filings,
        or otherwise establish rights or enforce obligations under this
        Agreement, but only to the extent that any such disclosure is necessary.

10.4    PUBLICITY. All public announcements and press releases regarding the
        subject matter of this Agreement shall be made only after mutual
        agreement by the parties as to the content and timing thereof. Any such
        announcements or communications shall be made only with the prior
        approval of the other party hereto, which shall not be unreasonably
        withheld, except as otherwise required by applicable law or legal
        process.

                        ARTICLE 11: COMPLIANCE WITH LAWS

11.1    MANUFACTURING AND SHIPPING. Quinton and Mortara each shall be
        responsible for complying with all applicable legal and regulatory
        requirements of the United States and any other state or local
        regulatory agency, department, bureau, commission, council or other
        governmental entity regarding the manufacture and shipment obligations
        hereunder. Each party shall promptly notify the other of new
        instructions, regulations or specifications of which it becomes aware
        which are relevant to the manufacture and distribution of the Products
        under this Agreement and which are required by the FDA, or other
        applicable laws or governmental regulations and shall confer with each
        other with respect to the best means to comply with such requirements.
        Each party shall assist the other in obtaining and maintaining all
        approvals and authorizations of any governmental agencies necessary for
        the manufacture, use, marketing, distribution or sale of Products, and
        will promptly notify the other party of any comments, responses or
        notices that a party receives from any governmental authorities which
        relate to the regulatory status of the Product.

11.2    MARKETING AND SALES. Quinton shall comply with all applicable laws,
        regulations and orders of any governments or government agencies
        worldwide and with all other governmental requirements applicable to its
        promotion, marketing and sales activities with respect to the Products,
        including obtaining import approvals or other permits, customs
        clearances, or authorizations for the shipment and Sale of Products. In
        connection with Quinton's compliance with this Section 11.2, Quinton
        will provide Mortara with all information it reasonably requests,
        including but not limited to distribution records, copies of any filings
        made in connection therewith and any promotional literature, sales
        literature, books, catalogues and the like prepared in connection with
        the Products. Mortara will, at Quinton's expense, furnish Quinton with
        such assistance and cooperation as may reasonably be requested in
        connection with compliance with such governmental requirements.

11.3    FACILITIES APPROVAL.  Mortara shall be responsible for obtaining and
        maintaining all necessary plant inspection standards, plant licenses
        registrations or permits to enable the development of the Products.

           ARTICLE 12: TERM, TERMINATION, AND EFFECT OF TERMINATION.

12.1    TERM. Except as provided in Sections 12.2 and 12.3, this Agreement and
        the licenses and rights granted hereunder will be effective for a term
        of five (5) years. Thereafter, this Agreement shall automatically

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        renew for successive one (1) year terms until terminated by either party
        under Section 12.2 or Section 12.3 herein.

12.2    TERMINATION FOR BREACH. Either party may terminate this Agreement upon
        written notice to the other party if (i) the other party commits any
        material breach of this Agreement which the other party fails to cure
        within sixty (60) days following written notice from the non-breaching
        party specifying such breach; (ii) the other party permanently ceases to
        conduct business; or (iii) the other party (a) becomes insolvent, (b)
        makes an assignment for the benefit of creditors, (c) commences any
        dissolution, liquidation or winding up, (d) has a receiver, trustee,
        conservator or liquidator appointed for all or a substantial part of its
        assets, or (e) has a petition filed by or against it under the
        Bankruptcy Code of 1978, as amended, 11 U.S.C. Section 101 et seq., or
        under any state insolvency laws providing for the relief of debtors, and
        such petition is not dismissed within sixty (60) days of its filing.

12.3    TERMINATION WITHOUT CAUSE. Either party may terminate this Agreement at
        its election and in its sole discretion without cause upon twelve (12)
        month written notice to the other party.

12.4    SURVIVING OBLIGATIONS. Termination or expiration of this Agreement will
        not (i) affect any rights of either party which may have accrued up to
        the date of such termination or expiration, (ii) relieve either party of
        its obligations under Article 6 (Mortara Product Warranty), Article 7
        (Representations and Warranties), Article 8 (Indemnification) or Article
        11 (Confidential Information), or (iii) relieve Quinton of its
        obligation to pay to Mortara sums due prior to termination or expiration
        of this Agreement, including Product orders noted in Article 3.
        Likewise, Mortara will maintain its obligations to fulfill all Product
        orders that may remain unfilled at the time of such termination or
        expiration.

12.5    EFFECT OF TERMINATION.

        12.5.1  Upon the termination of this Agreement for whatever reason,
                Quinton will cease to act as a sales representative and
                distributor of the Products, except that Quinton shall have the
                right to continue to fulfill its support and maintenance
                obligations related to the Products to its installed End User
                base. Quinton will return to Mortara all price lists, catalogs,
                sales literature, operating and service manuals, advertising
                literature and other materials relating to the Products
                originally provided by Mortara to Quinton, less one (1) copy for
                the purpose of fulfilling its support and maintenance
                obligations. Notwithstanding the foregoing, Quinton will have
                the following rights: (i) for a period not to exceed one hundred
                eighty (180) days, to sell any Products remaining in inventory,
                and to fulfill firm orders received from End Users and
                previously delivered to Mortara, and (ii) in the event this
                Agreement is terminated by Quinton pursuant to Section 12.2, to
                sell any Products for an additional two hundred seventy (270)
                days solely with respect to the fulfillment of firm standing
                orders as proven by documentation presented to Mortara.

        12.5.2  Upon the termination of this Agreement by any material breach by
                Quinton, or from Quinton's inability to conduct its normal
                business (Section 12.2 (ii) and (iii) above) Quinton shall
                provide to Mortara upon the effective date of termination, the
                following information: (i) the location of all Products sold by
                Quinton during the term of this Agreement; (ii) the Incident
                files related to the Products; and (iii) a copy of Quinton's End
                User list for the Products compiled during the term of this
                Agreement, including names, addresses, telephone numbers and
                purchase history.

12.6    CHANGE OF CONTROL OF QUINTON. Quinton shall provide Mortara with prompt
        written notice in the event of any Competitive Change of Control of
        Quinton, and Mortara shall have the right to terminate this Agreement
        upon thirty (30) days advance written notice to Quinton. In the event
        Mortara elects to terminate this Agreement under this Section 12.6,
        Mortara shall have the right, but not the obligation, to require Quinton
        to satisfy its obligation to accept delivery of any Product(s) ordered
        under any then current Quinton purchase order.

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12.7    CHANGE OF CONTROL OF MORTARA. Mortara shall provide Quinton with prompt
        written notice in the event of any Competitive Change of Control of
        Mortara, and Quinton shall have the right to terminate this Agreement
        upon thirty (30) days advance written notice to Mortara. In the event
        Quinton elects to terminate this Agreement under this Section 12.7,
        Quinton shall have the right, but not the obligation, to require Mortara
        to satisfy its obligation to complete the delivery of any Product(s)
        ordered under any then current Quinton purchase order.

12.8    NO LIABILITY FOR TERMINATION. Neither party will have any obligation to
        the other by reason of the terminating party's termination permitted by
        this Agreement. Each party hereby agrees not to assert any claim by
        reason of such termination of this Agreement. Neither party, by reason
        of the termination of this Agreement, will be liable to the other
        because of any damages, expenditure, loss of profits, or prospective
        profits of any kind or nature, sustained or arising out of such
        termination or for any investments related to the performance of this
        Agreement or the goodwill created in the course of the performance under
        this Agreement.

12.9    ACCRUED OBLIGATIONS. No termination of this Agreement will in any manner
        whatsoever release, or be construed as releasing, any party from any
        liability to the other arising out of or in connection with a party's
        breach of, or failure to perform any covenant, agreement, duty or
        obligation contained in this Agreement. Neither party will be relieved
        from any obligations vested prior to the date of termination of this
        Agreement.

                            ARTICLE 13: MISCELLANEOUS

13.1    GOVERNING LAW AND VENUE. This Agreement shall be construed and
        controlled by the laws of the State of Washington, U.S.A. (excluding its
        conflict of law rules) and by the laws of the United States of America,
        excluding the United Nations Convention on Contracts for the
        International Sale of Goods (which the parties hereby agree shall not
        apply). In the event Mortara files a claim against Quinton in connection
        with this Agreement, such claim will be filed in the state and federal
        courts sitting in Snohomish County, Washington. In the event Quinton
        files a claim against Mortara in connection with this Agreement, such
        claim will be filed in the state and federal courts sitting in Milwaukee
        County, Wisconsin.

13.2    ENTIRE AGREEMENT; AMENDMENT. This Agreement and the Exhibits hereto, set
        forth and constitute the final, complete and entire agreement between
        the parties hereto with respect to the subject matter hereof, supersede
        any and all prior agreements, understandings, promises and
        representations made by either party to the other concerning the subject
        matter hereof and the terms applicable hereto and are intended as a
        complete and exclusive statement of the terms of the agreement between
        the parties. This Agreement may not be released, discharged, amended or
        modified in any manner except by a writing signed by duly authorized
        officers of both parties.

13.3    NO AGENCY; NO JOINT VENTURE; INDEPENDENT CONTRACTOR. Each party will act
        as an independent contractor under the terms of this Agreement. Neither
        party is, and will not be deemed to be, employee, agent, co-venturer or
        legal representative of the other party for any purpose. Neither party
        will be entitled to enter into any contracts in the name of, or on
        behalf of the other party, nor will either party be entitled to pledge
        the credit of the other party in any way or hold itself out as having
        authority to do so.

13.4    WAIVER. No waiver of any right under this Agreement will be deemed
        effective unless contained in a writing signed by the party charged with
        such waiver, and no waiver of any right arising from any breach or
        failure to perform will be deemed to be a waiver of any future such
        right or of any other right arising under this Agreement.

13.5    HEADINGS. The headings of the several Articles and Sections herein are
        inserted for convenience of reference only and are not intended to be
        part of or to affect the meaning or interpretation of this Agreement.

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13.6    ASSIGNMENT. Neither party may assign, in whole or in part, this
        Agreement nor any right or obligation arising under it without the prior
        written consent of the other, such consent not to be unreasonably
        withheld; provided, however, that either party may assign or transfer
        its rights and obligations arising under this Agreement to a purchaser
        of all or substantially all of the stock or assets of such party or to
        an entity into which such party is merged, or to a wholly-owned
        subsidiary of such party, without the consent of the other party.

13.7    SEVERABILITY. If any provision of this Agreement is or becomes or is
        deemed invalid, illegal or unenforceable in any jurisdiction, such
        provision will be construed or deemed amended to conform to applicable
        laws so as to be valid, legal and enforceable and to conform to the
        maximum extent possible to the intention of the parties including,
        without limitation, by deleting such provision.

13.8    RESTRICTED RIGHTS. Any software product which Quinton distributes or
        licenses to or on behalf of the United States of America, its agencies
        and/or instrumentalities, shall be provided with RESTRICTED RIGHTS in
        accordance with DFARS 252.227-7013(c)l(ii), or as set forth in the
        particular department or agency regulations or rules, or particular
        contract which provide Mortara equivalent or greater protection.

13.9    EXPORT. Quinton acknowledges that the Product is subject to the export
        control laws and regulations of the United States, and any amendments
        thereof. Quinton confirms that with respect to the Product, it will not
        export or re-export them, directly or indirectly, to (i) any countries
        that are subject to United States export restrictions; (ii) any End User
        who Quinton knows or has reason to know will utilize them in the design,
        development or production of nuclear, chemical or biological weapons; or
        (iii) any end user who has been prohibited from participating in United
        States export transactions by any federal agency of the United States
        government. Quinton further acknowledges that the Product may include
        technical data subject to export and re-export restrictions imposed by
        United States law.

13.10   BENEFITS OF THIS AGREEMENT. Except as expressly provided for herein,
        nothing in this Agreement will be construed to give to any person or
        entity other than Quinton and Mortara any legal or equitable right,
        remedy or claim under this Agreement. This Agreement will be for the
        sole and exclusive benefit of Quinton and Mortara and shall be binding
        upon and inure to the benefit of their respective successors and
        permitted assigns.

13.11   NOTICES. Notices, consents and the like required or permitted hereunder
        will be in writing and will be sent to the addresses set forth below or
        to such other addresses as the parties may hereafter specify, and will
        be deemed given on the earlier of (a) physical delivery (or refusal to
        accept same) to a party, including confirmed delivery by facsimile or
        telex; (b) upon delivery (or refusal to accept same) after sending by
        expedited courier; (c) or upon delivery (or refusal to accept same) by
        certified mail, return receipt requested. Copies of notices will be sent
        to the appropriate address as set forth below:

                                TO MORTARA:
                                Mortara Instrument, Inc.
                                7865 North 86th Street
                                Milwaukee, Wisconsin 53224
                                Attention: Brian Brenegan

                                TO QUINTON:
                                Quinton Instrument Company
                                3303 Monte Villa Parkway
                                Bothell, Washington 98021
                                Attention: Contracts Administration

13.12   FORCE MAJEURE. Neither of the parties hereto will be liable for any
        failure or delay in performance hereunder where such failure or delay is
        due, in whole or in part, to any cause beyond its reasonable control,
        including but not limited to Acts of God, fire, flood, warfare, labor
        disputes or other similar catastrophic

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        events. If a force majeure prevents Mortara from supplying, for a period
        in excess of one hundred fifty (150) days, Products to Quinton pursuant
        to a purchase order accepted by Mortara, Quinton shall have the rights
        set forth in Section 2 hereof.

13.13   COUNTERPARTS. This Agreement may be executed in any number of
        counterparts, each of which will be an original and all of which will
        constitute together but one and the same document

In Witness Whereof, the parties have executed this Agreement on the date first
above mentioned.

QUINTON INSTRUMENT COMPANY               MORTARA INSTRUMENT, INC.

      /s/ John Hinson                          /s/ Justin Mortara
------------------------------------     ---------------------------------------
Authorized Signature                     Authorized Signature

John Hinson                                    Justin Mortara
------------------------------------     ---------------------------------------
Printed Name                             Printed Name

Executive Vice President, COO and CFO          VP Sales and Marketing
------------------------------------     ---------------------------------------
Title                                    Title

      10-20-00                                 10-17-00
------------------------------------     ---------------------------------------
Date                                     Date

Attached Exhibits:
-----------------

Exhibit A       Products, Quantity Discount levels, Transfer Fees, Lead Times
                and Initial Order Quantity
Exhibit B       Territory
Exhibit C       Q-Track II Software Requirements
Exhibit D       QIC Software License and Limited Warranty
Exhibit E       QIC Limited Warranty for Hardware

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                                    EXHIBIT A

    PRODUCTS, QUANTITY DISCOUNT LEVELS, TRANSFER FEES, LEAD TIMES AND INITIAL
                                 ORDER QUANTITY

<TABLE>
<CAPTION>
                                                      Quantity                         Initial
                                                      Discount    Transfer     Lead     Order
                      Product                          Levels        Fee       Time    Quantity
                      -------                         --------    --------     ----    --------
<S>                                                   <C>         <C>        <C>       <C>
HARDWARE:
H-12 Recorder (all versions)                            [*]          [*]     3 months    [*]
Includes patient cable, AA batteries and removable
  memory
                                                        [*]          [*]
                                                        [*]          [*]
                                                        [*]          [*]
SOFTWARE:
Holter Scanner Software (H-Scribe and all future        [*]          [*]                 [*]
  versions contemplated under this agreement)           [*]          [*]
                                                        [*]          [*]
</TABLE>

Hardware. All Hardware shall be provided as complete units, including
Accessories. Accessories for the Hardware are limited to patient cable, AA
batteries and removable memory.

Product Labeling. All Hardware and Software provided under this Agreement will
be private labeled by Mortara for Quinton, including a Mortara label e.g. "Heart
of Mortara". All decisions regarding product labeling and trademarking for the
Combined Products will be the responsibility of Quinton.

Software. License fees for the Software is based on cumulative sales, regardless
of which version of Software is licensed.

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                                    EXHIBIT B
                                    TERRITORY

The territory is defined as: worldwide, except for Austria, Belgium, Bulgaria,
Croatia, Slovenia, Finland, Greece, Portugal, Spain, Italy, Germany,
Netherlands, Switzerland, Turkey, Russia (CIS), Israel, Kuwait, New Zealand,
India and the Peoples Republic of China including Hong Kong.

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                                    EXHIBIT C
                        Q-TRACK II SOFTWARE REQUIREMENTS

The following features constitute the minimum requirements for the Q-Track II
software release:

    1.   Presentation of data in Paging mode and Superimposition: ECG window to
         be updated automatically with programmable autostops.

    2.   Manual stop and go.

    3.   Adjustable speed of Paging/Superimposition updates.

    4.   Ability to review Profile with autostops on multiple events (Retro).

    5.   Capture of strips from keyboard.

    6.   Ability to change all three scanning modes (Page/S.I./Retro).

    7.   Autostops: new class, diary events, patient events, supraventricular
         and ventricular beats (singles, couplets, 3+, bigeminy?, trigeminy?), R
         on T, Pauses, ventricular beat & new class, artifact, afib onset and
         end, ST onset, maximum and end)

    8.   Combine classes, in prospective mode as well as in retrospective.

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                                EXHIBIT D
                QIC SOFTWARE LICENSE AND LIMITED WARRANTY

This Software License ("License") applies to Software products purchased by you
("Customer") from Quinton Instrument ("QIC") either alone or as part of Hardware
provided by QIC.

DEFINITIONS. "Software" means the proprietary software programs, routines,
subroutines and related items for control of products purchased from QIC by
Customer. "Hardware" means the equipment purchased by Customer from QIC to be
used with or containing the Software or, if none, the equipment specified for
use with QIC Software. The Software and Hardware that operate together are an
integrated "System." "Documentation" includes any commercially available
materials published by QIC for Customer's use with the Software or System.

TERM. This License shall become effective on the date of QIC's invoice for the
Software or Hardware and shall remain in effect until terminated. QIC may
terminate this License immediately if Customer fails to comply with any of the
terms of the License. Upon termination, Customer agrees to return, or, at QIC's
request, destroy all copies of the Software.

LICENSE. In consideration of the License fee, which is included in the purchase
price of the related Hardware, or if no Hardware is purchased, which is
otherwise charged for the Software, QIC hereby grants to Customer, and Customer
accepts, a non-transferable, non-exclusive license to use the Documentation,
install the Software in machine-readable executable object code on the Hardware
and use the Software in accordance with the Documentation provided by QIC.

COPYRIGHT. The Software is owned by QIC or its suppliers and is protected by
United States copyright laws and international treaty provisions. QIC and its
suppliers own and retain all right, title and interest in and to the Software,
including patents, trademarks, copyrights, trade secrets and other intellectual
property rights embodied or contained therein. Therefore, except as specifically
provided herein, Customer may not use, copy, or distribute the Software without
the prior written consent of QIC. Customer (i) may make one (1) copy of the
Software solely for backup or archival purposes, and (ii) may not copy the
Documentation accompanying the Software without the express written consent of
QIC.

RESTRICTIONS. This License may not be transferred by sublicense, assignment or
otherwise, except in the case of a transfer of all related QIC-supplied
Hardware. Transfer of QIC supplied Hardware shall include transfer of this
License; provided that (i) QIC has been notified in writing of the transfer;
(ii) the Hardware is the only Hardware specified for use with the Software;
(iii) each transferee must agree to the terms of this License; and (iv) any QIC
warranty or maintenance agreement in effect with Customer on the date of
transfer shall terminate without notice.

LIMITED WARRANTY. The "Warranty Period" means 90 days from the date of QIC's
invoice for the Software, or, if the Software is provided as a component to the
Hardware and specified for use with the Hardware, 90 days from the date of QIC's
invoice for the Hardware. QIC warrants that, at the time of delivery to Customer
and during the Warranty Period identified above: (i) the Software shall perform
reasonably in accordance with the specifications set forth in QIC's then current
commercially available Documentation for the Software or Hardware, and (ii) the
media on which the Software is delivered shall be free from defects in material
and workmanship.

CUSTOMER REMEDY. If the Software fails to comply with the limited warranty as
set forth herein during the Warranty Period. QIC will use commercial efforts to
repair or replace any such Software; or, at QIC's option, accept the return of
the Software and refund the License fees, or an equitable portion thereof, paid
by Customer for the Software.

SUPPORT. QIC will provide Support for the Software as follows:

1)  as long as the Software is commercially available and supported by QIC,
    Customer will receive maintenance releases commercially available from QIC
    for the Software;

2)  during the Warranty Period, Customer will receive all commercially available
    maintenance releases, minor enhancements to the user interface, toll-free
    telephone consultation and assistance on the Software during the normal
    business hours of QIC, remote access support, and installation of any
    maintenance releases or minor enhancements to the user interface provided by
    QIC during the normal business hours of QIC.

Following the Warranty Period, Customer may, at its option, choose to purchase
any then current commercially available QIC support program for the Software.
Software Support services do not include maintenance releases, minor
enhancements and/or upgrades to any Hardware product(s) or System purchased*
from QIC. Please contact QIC at the address listed below for details on QIC's
commercially available Hardware support service programs, after hours support,
installation assistance and on-site support services.

EXCEPT AS EXPRESSLY SET FORTH HEREIN, AND TO THE MAXIMUM EXTENT PERMITTED BY
APPLICABLE LAW, QIC AND ITS SUPPLIERS

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DISCLAIM ALL WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A

PARTICULAR PURPOSE. SOME STATES DO NOT ALLOW LIMITATIONS ON IMPLIED WARRANTIES,
SO THE ABOVE LIMITATION MAY NOT APPLY TO YOU.

LIMITATION OF LIABILITY. IN NO EVENT SHALL QIC OR ITS SUPPLIERS BE LIABLE FOR
ANY INCIDENTAL, INDIRECT, SPECIAL, OR CONSEQUENTIAL DAMAGES OR COVER, OR LOSS OF
DATA, PROFIT, REVENUE OR USE IN CONNECTION WITH OR ARISING OUT OF CUSTOMERS USE
OF THE SOFTWARE, DOCUMENTATION, HARDWARE OR THIS LICENSE.

U.S. GOVERNMENT-RESTRICTED RIGHTS. The Software and accompanying Documentation
are deemed to be "commercial computer Software" and "commercial computer
Software documentation," respectively, pursuant to DFAR Section 227.7202 and FAR
Section 12.212, as applicable. Any use, modification, reproduction release,
performance, display or disclosure of the Software and accompanying
Documentation by the U.S. Government will be governed solely by the terms of
this License and will be prohibited except to the extent expressly permitted by
the terms of this License.

EXPORT RESTRICTIONS. Customer may not download, export, or re-export the
Software (a) into, or to a national or resident of, any country to which the
United States has embargoed goods, or (b) to anyone on the United States
Treasury Department's list of Specially Designated Nationals or the U.S.
Commerce Department's Table of Deny Orders. By downloading or using the
Software, Customer represents and warrants that Customer is not located in,
under the control of, or a national or resident of any such country or on any
such list. Customer acknowledges that it is Customer's sole responsibility to
comply with any and all government export and other applicable laws and that QIC
has no further responsibility for such after QIC's delivery of the License to
Customer.

The application of the United Nations Convention of Contracts for the
International Sale of Goods is expressly excluded. This License shall not be
subject to the Uniform Commercial Code. Any dispute between Customer and QIC
regarding this License will be subject to the exclusive venue and applicable
laws of the state and federal courts of the State of Washington.

ENTIRE AGREEMENT. This License constitutes the entire agreement between QIC and
Customer with respect to the subject matter hereof and shall supersede all
previous representations, agreements or proposals, whether oral or written. The
terms of this License shall prevail notwithstanding any variances with the terms
and conditions of any purchase order or other document submitted by Customer. If
any provision of this License is deemed invalid under any applicable statute or
rule of law, it is to that limited extent deemed omitted or modified.

CONTACT INFORMATION. Should you have any questions concerning this QIC Software
License and Limited Warranty, or if you desire to contact QIC for any reason,
please call (425) 402-2000, or write: Quinton Instrument, 3303 Monte Villa
Parkway, Bothell, Washington 98021-8906.

[*] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

QUINTON/MORTARA               OEM AGREEMENT FOR HOLTER              CONFIDENTIAL

                                 Page 2 of 19
<PAGE>
                                    EXHIBIT E

                        QIC LIMITED WARRANTY FOR HARDWARE

During the warranty period set forth herein, QIC warrants that 1) the Product,
used in a manner for which it was designed, will generally conform to the
specifications as set forth in the operators manual delivered by QIC with the
Product, and 2) the mechanical and electronic components of the Product will be
free from defects in materials and workmanship. This warranty is
non-transferable.

For Category 1 products (standalone, non-networked products), the warranty
period is 13 months from invoice date. For Category II products (system,
networked products), the warranty period is 12 months from the earliest of: a)
first clinical use, b) final acceptance or c) 90 days from shipment date. For
Category III products (upgrades), the warranty period is 90 days from the
earliest of: a) first clinical use, b) final acceptance or c) 90 days from
shipment date.

During the warranty period, QIC will provide Customer with the following at no
charge:

1.  Replacement of defective parts.

2.  Labor necessary to effect repairs or replace defective parts during normal
    business hours of 8:00AM to 4:30PM, Monday through Friday (excluding QIC
    holidays), Customer's local time zone.

3.  Access to the QIC Technical Support "hotline" during normal business
    hours of 8:00AM to 4:30PM, Monday through Friday (excluding QIC
    holidays), Customer's local time zone.

Parts replaced or labor performed under the terms of this warranty will be
warranted for the remainder of the original warranty term.

This warranty is void if failure of the Product results from accident, abuse,
improper use, neglect, repairs or alterations unauthorized by QIC, or any other
cause not directly resulting from a defect in materials or workmanship. If
failure of the Product results from any of the above conditions, all warranty
work performed by QIC, including parts and labor, shall be billed to Customer at
QIC's then current rates.

Interconnecting cables between the control panel and the mainframe of the
treadmill, patient cables, styli, ink cartridges, preamplifiers and all
external, operator accessible cabling, normally considered expendable, are
warranted for a period of 90 days from the date of Customer's invoice.
Electrodes and recording paper are specifically excluded from this warranty.
Calibration is not covered by this warranty unless failure results from a defect
in materials or workmanship. Also excluded from this warranty are operator
adjustments, as outlined in the operators manual, and power distribution within
the Customer's facility i.e. outlets, fuse boxes and wiring.

LIMITATION OF LIABILITY. QIC AND ITS SUPPLIERS WILL NOT BE LIABLE FOR ANY LOSS
OR DAMAGE CLAIMED TO HAVE RESULTED FROM THE USE, OPERATION OR PERFORMANCE OF THE
PRODUCTS OR RELATED IN ANY WAY TO THEIR ACQUISITION, REGARDLESS OF THE FORM OF
ACTION. IN NO EVENT WILL QIC BE LIABLE TO CUSTOMER FOR (A) ANY SPECIAL,
INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, EVEN IF QIC HAS BEEN ADVISED OF
THE POSSIBILITY THEREOF, (B) ANY DAMAGES RESULTING FROM LATENT DEFECTS, LOSS OF
DATA OR PROFITS, (C) ANY CLAIM WHETHER IN CONTRACT OR TORT, THAT AROSE MORE THAN
ONE YEAR PRIOR TO INSTITUTION OF SUIT THEREON. QIC shall be liable for actual
damages resulting from a material breach of this limited warranty and for
personal injury or property damages directly resulting from gross negligence or
intentional misconduct on the part of QIC up to, but not exceeding, the purchase
price or license fees paid hereunder.

NOTE: This warranty is offered separate from but in addition to any warranty the
original manufacturer might offer. The original manufacturer's warranty may be
found in the printed material accompanying the Product. Both warranties are in
effect concurrently and Customer may choose that which is most cost effective
and convenient.

TO OBTAIN WARRANTY SERVICE: Notify QIC at the address shown below. Have
available full details of the malfunction, as well as the model and serial
numbers of the Product. When QIC receives this information, Customer will be
advised as to the service arrangements: field repair, field replacement, or
factory repair. In the case of factory repair, Customer will be assigned a
"return authorization number" and directed to return the Product, freight
pre-paid, to the address shown below:

                        QIC TECHNICAL SERVICES DEPARTMENT
                            3303 MONTE VILLA PARKWAY
                                BOTHELL, WA 98021
                           425/402-2485 (800) 426-0538

[*] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

QUINTON/MORTARA               OEM AGREEMENT FOR HOLTER              CONFIDENTIAL

                                  Page 1 of 19
<PAGE>

The foregoing warranty constitutes the sole and exclusive remedy of the
Customer, and the exclusive liability of QIC. This limited warranty is in lieu
of any and all other warranties, representations and conditions, express or
implied, based in statute, common law or equity, as to the merchantability,
fitness or purpose sold, description, quality productiveness, or any other
matter.

[*] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

QUINTON/MORTARA               OEM AGREEMENT FOR HOLTER              CONFIDENTIAL

                                 Page 2 of 19<PAGE>
                                                                   EXHIBIT 10.11

                             ADDENDUM NO. 1 TO THE
                                 OEM AGREEMENT
                                    BETWEEN
                      MORTARA INSTRUMENT, INC. ("MORTARA")
                                      AND
                     QUINTON INSTRUMENT COMPANY ("QUINTON")

The above-referenced Agreement dated October 17, 2000 (the "Agreement") is
modified in accordance with the terms and conditions of this Addendum No. 1 to
the OEM Agreement ("Addendum No. 1").

        Whenever possible, the provisions of the Agreement and this Addendum No.
1 shall be construed to be consistent. In the event such a construction is
impossible or unreasonable, the terms of this Addendum No. 1 shall control.

        The Agreement is modified as follows:

1) Minimum License Amounts as set forth in Section 4.2 remain in full force and
effect.

2) Exhibit A. Insert the following:

<TABLE>
<CAPTION>
                                        QUANTITY                             INITIAL
                                        DISCOUNT       TRANSFER     LEAD      ORDER
    PRODUCT                              LEVELS          FEE        TIME     QUANTITY
    -------                             --------       --------     ----     --------
    <S>                                 <C>            <C>          <C>      <C>
    SOFTWARE:
    Remote Download Station                [*]            [*]        n/a        [*]
</TABLE>

3) Section 4.2 Insert the following paragraphs:

    Q-TRACK II PAYMENT SCHEDULE

    Effective July 1, 2001, Mortara will invoice Quinton [*] as license fees due
    against Quinton's future sales of Q-Track II. In addition, over the
    following successive ten (10) months, Mortara will invoice Quinton [*] each
    month as license fees due against Quinton's future sales of Q-Track II.
    Notwithstanding Section 4.2.2, payment terms are [*] days.

    Subsequent years of this Agreement will follow a similar schedule with [*]
    Q-Track II licenses invoiced per month for the first two months of each
    quarter, and [*] Q-Track II licenses invoiced per month for the last month
    of each quarter. At the end of each calendar quarter, Quinton will provide
    Mortara with a report detailing the number of licenses sold. If total
    licenses sold are in excess of the minimum licenses invoiced for the quarter
    by Mortara, additional payment will be made to Mortara for the difference
    due, within [*] days of the end of such calendar quarter.

    Mortara shall credit Quinton [*] Q-Track II licenses for each [*] Q-Track i
    licenses distributed to End Users. Such credit shall be applied against the
    Minimum Licenses Amounts due hereunder.

    Q-TRACK I TRANSFER FEES

    Q-Track i licenses distributed to End Users shall count towards the Minimum
    Licenses Amounts due hereunder. Transfer fees for Q-Track i are based on
    sales of Q-Track II and are cumulative over the term of the Agreement, as
    follows:

[*] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

<PAGE>

          Total Cumulative Sales
          Q-Track II                        Q-Track i Transfer Fee
          --------------------------        -------------------------
          [*]                               [*]
          [*]                               [*]
          [*]                               [*]

    UPGRADE LICENSE TRANSFER FEES

    Upgrade license fees for Q-Track i to Q-Track II are [*]. This upgrade
    license fee will be offered to all licensed Q-Track i users, as well as
    existing Mortara H-Scribe accounts. Upgrade Licenses shall not count towards
    the Minimum Licenses Amounts due hereunder. In addition, [*] Q-Track II
    licenses will be provided at [*] to Quinton for distribution to problem
    Zymed accounts. These [*] licenses will not be counted towards Minimum
    License Amounts due hereunder. Upgrade pricing as provided herein does not
    apply to Zymed Holter customers.

4) Exhibit B, Territory, is modified to now read as follows:

    The Territory, as defined in Exhibit B, consists of: EXCLUSIVE TO MORTARA --
    Austria, Belgium, Bulgaria, Croatia, Slovenia, Hungary, Finland, Greece,
    Portugal, Spain, Italy, Germany, Netherlands, Switzerland, Turkey, Russia
    (CIS), Israel, Kuwait, New Zealand, India, and the Peoples Republic of China
    including Hong Kong. EXCLUSIVE TO QUINTON -- England, Ireland, Japan and
    Korea along with the Western Hemisphere. All other countries not directly
    stated above are non-exclusive and are available for distribution through
    either Company.

5) New Section 14, Future Development:

    Future product development may include a Quinton customized version of the
    Holter Software which would be available for worldwide distribution. Such a
    customized Holter Software would be created by Mortara under a separate
    agreement with detailed specifications provided by Quinton, and an NRE
    charge to be mutually agreed between the parties.

    The new pager sized recorder is anticipated to have removable, programmable
    media and a display screen which displays an impedance check and ECG
    tracings. The new recorder is expected for domestic release in the first
    quarter of FY 02. Transfer Fees for the new recorder should reflect pricing
    typically associated with an OEM to first line reseller, and be less than
    pricing associated wit the H12 recorder.

Except as specifically amended hereby, all terms of the Agreement shall remain
in full force and effect.

MORTARA INSTRUMENT, INC.              QUINTON INSTRUMENT COMPANY

        /s/ Justin Mortara                    /s/ John Hinson
---------------------------------     ------------------------------------
Authorized Signature                  Authorized Signature

        Justin Mortara                        John Hinson
---------------------------------     ------------------------------------
Justin Mortara                        Printed Name

                                              President
---------------------------------     ------------------------------------
Vice President Sales & Marketing      Title

        8/20/01                               8/20/01
---------------------------------     ------------------------------------
Date                                  Date

[*] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

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