Document:

<PAGE>

                                                                   Exhibit 10.23

                           QUINTON INSTRUMENT COMPANY
                            3303 MONTE VILLA PARKWAY
                            BOTHELL, WASHINGTON 98021

October 30, 2000

Mr. Michael F. Blomeyer
225 4th Avenue, B405
Kirkland, WA 98033

Dear Mike,

This letter sets forth the substance of the separation agreement ("Agreement")
that Quinton Instrument Company ("Company") is offering you to aid in your
employment transition.

         1.       SEPARATION. Your last day as an employee, officer and director
                  of the Company will be October 31, 2000 ("Separation Date"),
                  pursuant to the letter of resignation (Exhibit A hereto),
                  which we ask you to execute by that date.

         2.       ACCRUED SALARY AND VACATION. On the first regular pay date
                  following your Separation Date, the Company will pay you all
                  accrued salary, and all accrued and unused vacation totaling
                  eight (8) weeks, earned and unused through the Separation
                  Date, subject to standard payroll deductions and withholding.
                  You are entitled to these payments whether or not you sign
                  this Agreement.

         3.       SEVERANCE PAYMENT PERIOD. The Company will continue your
                  regular pay, at your current biweekly salary rate, paid in
                  regular payroll intervals, from November 1, 2000 through and
                  including September 30, 2001, ("Severance Payment Period")
                  subject to standard payroll deductions and withholding. You
                  acknowledge and agree that by the payment of this severance
                  amount as set forth in this Paragraph 3 (subject to certain
                  provisions as set forth in Paragraph 5, Stock Options), the
                  Company will have satisfied all of its obligations as set
                  forth in Paragraphs 3-Compensation and 5-Performance Bonus of
                  your employment agreement dated August 8, 1998 from the
                  Company to you ("Offer Letter") and you have no other rights
                  to salary, bonuses,
<PAGE>
                  benefits, or other compensation after the Separation Date,
                  except as otherwise noted elsewhere in this Agreement.

                  Further, subject to certain provisions as set forth under
                  Paragraph 5, Stock Options, if you obtain full time employment
                  prior to the conclusion of the Severance Payment Period, the
                  severance payment amount will terminate as of the last day of
                  the month in which you obtain full time employment and the
                  Company will in exchange increase the amount of your vested
                  stock options as set forth in Paragraph 5(d), below.

                  Further, if you engage in any activity that is competitive
                  with the Company during the Severance Payment Period, the
                  Company shall have no further payment obligations under this
                  Agreement; provided however that your engagement as a
                  consultant to a person or entity that does not compete or seek
                  to compete with the Company is permissible under this
                  Agreement.

                  You agree to notify the Company, in writing, upon your
                  acceptance of full time employment or engagement in any
                  consultative activity that may be deemed a competitive
                  activity.

         4.       LIFE AND HEALTH CARE INSURANCE. To the extent permitted under
                  terms of the basic and voluntary Life Insurance policies, you
                  will be eligible for continued coverage under the Company's
                  Life Insurance program for the duration of your Severance
                  Payment Period, and if provided under such policies you may
                  elect to convert to an individual policy on the coverage
                  cancellation date.

                  You will be provided with a separate notice of your COBRA
                  rights and to the extent permitted by federal COBRA law and
                  terms of the Company's health care plans, you will be offered
                  an opportunity to continue your coverage under the Company's
                  Medical, Prescription Drug and Dental Plan(s). If you elect to
                  continue coverage under COBRA, the Company, as part of this
                  Agreement, will continue to pay the amount previously paid on
                  your behalf by the Company during the term of your employment
                  and you agree to withholding of the standard employee
                  contribution amount during the Severance Payment Period on the
                  same basis as has been applicable to you during the term of
                  your employment with the Company. Upon the termination of the
                  Severance Payment Period, you may elect to continue your
                  coverage for the

                                      -2-
<PAGE>
                  remainder of your eligible COBRA coverage period by payment of
                  100% of the COBRA premiums either until you obtain coverage
                  under new employment or termination of your COBRA eligibility
                  period, whichever occurs first.

         5.       STOCK OPTIONS: CANCELLATION; STOCK VESTING; STOCK AS
                  COMPENSATION.

                  a)       You hereby agree, as of the Separation Date, that you
                           are vested in 326,136 shares of your Initial stock
                           option grant ("Initial Grant"), and 40,767 shares of
                           your second and last stock option grant, for a total
                           vested stock option grant holding of 366,903 shares.

                  b)       You hereby agree to the cancellation of all
                           non-vested stock options granted to you by the
                           Company under the QIC Holding Corp. 1998 Equity
                           Incentive Plan or otherwise (collectively, the
                           "Option"), and you agree that all of your rights to
                           the non-vested portion of your stock option(s) and
                           the Company's obligations under the Option are hereby
                           extinguished.

                  c)       Whereas you have exercised the full amount of your
                           vested and non-vested Option under terms set forth in
                           the Early Exercise Stock Purchase Agreement, the
                           Company will exercise its Repurchase Option as set
                           forth in that agreement. The repurchase process will
                           be concluded if at all possible prior to December 31,
                           2000.

                  d)       Whereas the Company has agreed in Paragraph 3, to
                           certain periodic severance payments; and whereas you
                           may obtain other employment during the severance
                           period which may cause a termination of severance
                           payments, the Company agrees in exchange for each
                           full calendar month for which a severance payment is
                           NOT made, that the company will increase the amount
                           of fully vested shares in your Initial Grant by
                           twenty thousand (20,000) shares.

         6.       CONSULTING ENGAGEMENT. At no additional consideration than
                  provided under Paragraph 3 above, and certain Stock Option
                  vesting provisions noted in Paragraph 6(a) below, you agree to
                  serve as a consultant to the Company under terms specified
                  below ("Consulting Engagement"). The Consulting Engagement
                  will commence on November 1, 2000 and

                                      -3-
<PAGE>
                  continue for the duration of the Severance Payment Period,
                  unless earlier terminated by the Company.

                  a)       You agree to provide specific consulting services
                           during the next three (3) months (the "Initial
                           Consulting Engagement") to continue negotiations with
                           Philips Medical Systems regarding a Q-Cath
                           distribution agreement. If an agreement satisfactory
                           to the Company is signed between Philips and the
                           Company by January 31, 2001, the Company will
                           increase the amount of the fully vested shares in
                           your Initial Grant by sixty thousand (60,000) shares.

                  b)       You agree to provide from time to time other general
                           consulting services to the Company in any area of
                           your expertise upon the request of the CEO, and will
                           report directly to the CEO, or as otherwise specified
                           by the CEO. You agree to exercise the highest degree
                           of professionalism and utilize your expertise and
                           creative talents in performing these services. You
                           agree to make yourself available to perform such
                           consulting services throughout the Severance Payment
                           Period up to a maximum of 40 hours per month,
                           exclusive of travel time.

                  c)       You will have no responsibility or authority as a
                           consultant to the Company and agree not to represent
                           or purport to represent the Company in any manner
                           whatsoever to any third party unless authorized by
                           the CEO, in writing, to do so.

                  d)       Pursuant to regular business practice, the Company
                           will reimburse you for documented business expenses
                           incurred during a consulting engagement, provided
                           that these expenses have been pre-approved by the
                           CEO, President or CFO, in writing, or are expenses
                           which the Company would reasonably expect you to
                           incur in carrying out a consulting engagement in a
                           manner otherwise customary for employee's under the
                           Company's standard travel and expense policy.

         7.       LEASED VEHICLE. You will retain use of your company-leased
                  vehicle, a 1999 Ford Explorer, through January 31, 2001 under
                  the same terms as you have had use of this vehicle while an
                  employee of the Company, including insurance, fuel,
                  maintenance and related operating costs. By January 31, 2001
                  you may elect to return the vehicle to the Company or

                                      -4-
<PAGE>
                  purchase the vehicle at the then remaining lease termination /
                  buy-out price.

         8.       RELOCATION EXPENSE. The Company will pay the cost to relocate
                  your household effects from your Kirkland, Washington
                  residence to your residence in Alamo, California, plus sales
                  commissions and escrow expenses incurred in connection with
                  the sale of your Kirkland, Washington residence in an amount
                  up to but not exceeding $10,000.

         9.       FEDERAL INCOME TAX FILING. The Company will provide assistance
                  in filing your Year 2000 Federal Income tax return, and an
                  amended 1999 tax return, through use of the Company tax
                  advisor for this purpose.

         10.      RELEASE OF CLAIMS. In exchange for the payments and other
                  considerations under this Agreement to which you would not
                  otherwise be entitled, you hereby release, acquit and forever
                  discharge the Company, its affiliates, and their officers,
                  directors, employees, shareholders and agents, of and from any
                  and all claims, liabilities, demands, causes of action, costs,
                  expenses, attorney's fees, damages, indemnities and
                  obligations of every kind and nature, in law, equity or
                  otherwise, known or unknown, suspected or unsuspected,
                  disclosed or undisclosed, arising out of or in any way related
                  to agreements, events, acts or conduct at any time prior to
                  and including the date you execute this Agreement, including
                  (but not limited to): all claims and demands directly or
                  indirectly arising out of or in any connection with the Offer
                  Letter, your employment with the Company or the termination of
                  your employment; all claims or demands related to salary,
                  bonuses, stock, stock options, or any other ownership
                  interests in the Company, vacation pay, fringe benefits,
                  severance benefits, or any other form of compensation; and all
                  claims and demands pursuant to any federal, state or local
                  law, including (but not limited to) the federal Civil Rights
                  Act of 1964, as amended, the federal Age Discrimination in
                  Employment Act of 1967, as amended ("ADEA"), the federal
                  Americans with Disabilities Act of 1990, the Washington Law
                  Against Discrimination in Employment, tort law and contract
                  law, including (without limitation) chime for wrongful
                  discharge, discrimination, fraud, defamation, harassment,
                  emotional distress, and breach of the implied covenant of good
                  faith and fair dealing; provided however, that the foregoing
                  release of claims shall not apply to any right of
                  indemnification that you may have pursuant to the Bylaws of
                  the Company as a consequence of your service as an officer,
                  director or employee of the Company.

                                      -5-
<PAGE>
         11.      ADEA WAIVER. You acknowledge that you are knowingly and
                  voluntarily waiving and releasing any rights you may have
                  under the ADEA. You also acknowledge that the consideration
                  given for the waiver and release in the preceding Paragraph is
                  in addition to anything of value to which you were already
                  entitled. You further acknowledge that you have been advised
                  by this writing, as required by the ADEA, that: (a) your
                  waiver and release do not apply to any rights or claims that
                  may arise after the execution date of this Agreement; (b) you
                  should consult with an attorney prior to executing this
                  Agreement; (c) you have twenty-one (21) days to consider this
                  Agreement (although you may choose to voluntarily execute this
                  Agreement earlier); (d) you have seven (7) days following your
                  execution of this Agreement to revoke the Agreement; and (e)
                  this Agreement will not be effective until the date upon which
                  the revocation period has expired, which will be the eighth
                  day after this Agreement is executed by you ("Effective
                  Date").

         12.      RETURN OF COMPANY PROPERTY. Subject to certain exceptions
                  noted below and elsewhere within this Agreement, on the
                  Separation Date, you agree to return to the Company all
                  Company documents (and copies thereof) and other Company
                  property that you have in your possession or control,
                  including, but not limited to, Company files, notes, drawings,
                  records, business plans and forecasts, financial information,
                  specifications, training materials, computer-recorded
                  information, tangible property including, but not limited to,
                  entry cards, identification badges and keys, and any materials
                  of any kind that contain or embody any proprietary or
                  confidential information of the Company (and all reproductions
                  thereof).

                  You may retain the use of certain property, including your
                  laptop computer, software, e-mail access, cell phone, pager
                  and documents or materials necessary to supporting your
                  Initial Consulting Engagement through January 31, 2001. You
                  agree to return the aforementioned property immediately upon
                  the conclusion of your Initial Consulting Engagement or upon
                  written request from the Company, whichever occurs first.

         13.      PROPRIETARY INFORMATION OBLIGATIONS. You acknowledge your
                  continuing obligations under your Offer Letter and the Company
                  Non-Disclosure Agreement (Exhibit B hereto) both during and
                  after your employment with the Company and the Consulting
                  Engagement period. You agree not to use or disclose any
                  confidential or proprietary

                                      -6-
<PAGE>
                  information of the Company without prior written authorization
                  from a duly authorized representative of the Company.

         14.      NO SOLICITATION. You agree that for one year following the
                  Separation Date you will not, either directly or indirectly,
                  solicit or attempt to solicit any employee, consultant,
                  independent contractor or customer of the Company to terminate
                  his or her relationship with the Company in order to become an
                  employee, consultant, independent contractor or customer of or
                  to any other person or entity; provided however, that the
                  prohibition in this Paragraph 14 against your solicitation of
                  customers of the Company shall be in effect for so long as you
                  are receiving compensation under the Severance Payment Period.

         15.      COMMUNICATIONS.

                  a)       You and the Company agree that the content of any
                           announcement regarding your separation shall be
                           substantially as follows:

                           "After completing the work of reestablishing Quinton
                           as an independent cardiology company, Mike Blomeyer
                           has elected to return to California to be with his
                           family. He will continue to serve as a consultant
                           with the Company."

                  b)       The Company agrees that upon your request, the
                           Company will provide a mutually agreed upon verbal or
                           written recommendation to your prospective employers.

                  c)       Both you and the Company agree not to disparage the
                           other party, and the other party's officers,
                           directors, employees, shareholders, affiliates and
                           agents, in any manner likely to be harmful to them
                           and their business reputation or personal reputation;
                           provided that both you and the Company shall respond
                           accurately and fully to any question, inquiry or
                           request for information when required by legal
                           process.

         16.      CONFIDENTIALITY. The provisions of this Agreement will be held
                  in strictest confidence by you and the Company and will not be
                  publicized or disclosed in any manner whatsoever, provided,
                  however, that: (a) you may disclose this Agreement to your
                  immediate family, attorney, accountant and financial advisor,
                  and as necessary in seeking consulting work or employment; (b)
                  the Company may disclose this Agreement as

                                      -7-
<PAGE>
                  may be necessary in the conduct of its business; and (c) the
                  parties may disclose this Agreement as may be necessary to
                  enforce its terms or as otherwise required by law. In
                  particular, and without limitation, you will not disclose the
                  provisions of this Agreement to any current or former employee
                  of the Company, except as required by law.

         17.      MISCELLANEOUS. This Agreement represents a compromise
                  resolution of disputed claims, and the promises and payments
                  in consideration of this Agreement shall not be construed to
                  be an admission of any liability or obligation by either party
                  to the other party or to any other person. This Agreement,
                  including Exhibits A and B, constitutes the complete, final
                  and exclusive embodiment of the entire agreement between you
                  and the Company with regard to the subject matter hereof and
                  supersedes any and all other agreements entered into by and
                  between you and the Company. This Agreement is entered into
                  without reliance on any promise or representation, written or
                  oral, other than those expressly contained herein. Each party
                  has carefully read this Agreement, has been afforded the
                  opportunity to be advised of its meaning and consequences by
                  his or its attorney, and signed the same of his or her own
                  free will. This Agreement will bind the heirs, personal
                  representatives, successors and assigns of each party, and
                  inure to the benefit of each party, its heirs, personal
                  representatives, successors and assigns. This Agreement may
                  not be modified except in writing signed by you and a duly
                  authorized officer of the Company.

         18.      GOVERNING LAW. This agreement, and all of its exhibits, shall
                  be governed by the laws of the state of California.

If this Agreement is acceptable to you, please so indicate by countersigning the
enclosed copy of this letter and returning it to me.

I sincerely wish you good fortune in your future endeavors.

Respectfully,

QUINTON INSTRUMENT COMPANY

 /s/ Dr. Ruediger Naumann-Etienne
-------------------------------------
By:  Dr. Ruediger Naumann-Etienne

                                      -8-
<PAGE>
Exhibit A - Letter of Resignation
Exhibit B - Non Disclosure Agreement

UNDERSTOOD AND AGREED:

 /s/ Michael F. Blomeyer                               Date  October 31, 2000
---------------------------------------
Michael F. Blomeyer

                                      -9-<PAGE>
                                                                   Exhibit 10.24

SILICON VALLEY BANK               LIMITED WAIVER AND AMENDMENT TO LOAN DOCUMENTS
--------------------------------------------------------------------------------

SILICON VALLEY BANK

                               LIMITED WAIVER AND
                           AMENDMENT TO LOAN DOCUMENTS

BORROWER: QUINTON INC. (FKA QUINTON INSTRUMENT COMPANY)

DATE: FEBRUARY 15, 2002

         THIS LIMITED WAIVER AND AMENDMENT TO LOAN DOCUMENTS is entered into
between SILICON VALLEY BANK ("Silicon") and the borrower named above
("Borrower").

         The Parties agree to amend the Loan and Security Agreement between
them, dated June 5, 1998, as amended, if at all (the "Loan Agreement"), as
follows, effective as of the date hereof. (Capitalized terms used but not
defined in this Amendment shall have the meanings set forth in the Loan
Agreement.)

         1. WAIVER OF DEFAULT. Silicon and Borrower agree that the Borrower's
existing default under the Loan Agreement due to the Borrower's failure to
comply with the Minimum Tangible Net-Worth Financial Covenant set forth in
Section 5 of the Schedule to Loan and Security Agreement entitled "5. FINANCIAL
COVENANTS (Section 5.l)," for the reporting period ending December 31, 2001 is
hereby waived. It is understood by the parties hereto, however, that such waiver
does not constitute a waiver of any other provision or term of the Loan
Agreement or any related document nor an agreement to waive in the future this
covenant or any other provision or term of the Loan Agreement or any related
document.

         2. MODIFIED FINANCIAL COVENANT. Section 5 of the Schedule to Loan and
Security Agreement is hereby amended and restated in its entirety to read as
follows:

             "5. FINANCIAL COVENANT

                 (Section 5.l):    Borrower shall comply with the following
                                   covenant.  Compliance shall be determined
                                   as of the end of each month:

                                   MINIMUM TANGIBLE
                                   NET WORTH:        Borrower shall maintain a
                                                     Tangible Net Worth of not
                                                     less than ($1,000,000)
                                                     plus 75% of

                                      -1-
<PAGE>
SILICON VALLEY BANK               LIMITED WAIVER AND AMENDMENT TO LOAN DOCUMENTS
--------------------------------------------------------------------------------

                                         the total consideration received by
                                         Borrower after December 31, 2001 in
                                         consideration for the issuance by
                                         Borrower of its equity securities,
                                         effective on the date such
                                         consideration is received.

                  DEFINITIONS.           For purposes of the foregoing financial
                                         covenants, the following term shall
                                         have the following meaning:

                                         "()" shall mean a negative figure or
                                         loss, as applicable.

                                         "Liabilities" shall have the meaning
                                         ascribed thereto by generally accepted
                                         accounting principles.

                                         "Tangible Net Worth" shall mean the
                                         excess of total assets over total
                                         liabilities, determined in accordance
                                         with generally accepted accounting
                                         principles, with the following
                                         adjustments;

                                                  (A) there shall be excluded
                                         from assets: (i) notes, accounts
                                         receivable and other obligations owing
                                         to the Borrower from its officers or
                                         other Affiliates, and (ii) all assets
                                         which would be classified as intangible
                                         assets under generally accepted
                                         accounting principles, including
                                         without limitation goodwill, licenses,
                                         patents, trademarks, trade names,
                                         copyrights, capitalized software and
                                         organizational costs, licenses and
                                         franchises

                                                  (B) there shall be excluded
                                         from liabilities: all indebtedness

                                      -2-
<PAGE>
SILICON VALLEY BANK               LIMITED WAIVER AND AMENDMENT TO LOAN DOCUMENTS
--------------------------------------------------------------------------------

                                         which is subordinated to the
                                         Obligations under a subordination
                                         agreement in form specified by Silicon
                                         or by language in the instrument
                                         evidencing the indebtedness which is
                                         acceptable to Silicon in its discretion
                                         and current liabilities associated with
                                         warrants held by Silicon, equal to the
                                         fair market value of the stock to be
                                         issued upon the exercise of such
                                         warrants."

         3. SCHEDULE OF DEFERRED REVENUE ACCOUNTS. Borrower hereby covenants and
agrees to provide Silicon, within thirty days after the end of each month, a
schedule listing, by Account Debtor, of Borrower's deferred revenue accounts.

         4. FEE. In consideration for Silicon entering into this Amendment,
Borrower shall concurrently pay Silicon a fee in the amount of $10,000, which
shall be non-refundable and in addition to all interest and other fees payable
to Silicon under the Loan Documents. Silicon is authorized to charge said fee to
Borrower's loan account.

         5. REPRESENTATIONS TRUE. Borrower represents and warrants to Silicon
that all representations and warranties set forth in the Loan Agreement, as
amended hereby, are true and correct.

         6. GENERAL PROVISIONS. This Amendment, the Loan Agreement, any prior
written amendments to the Loan Agreement signed by Silicon and Borrower, and the
other written documents and agreements between Silicon and Borrower set forth in
full all of the representations and agreements of the parties with respect to
the subject matter hereof and supersede all prior discussions, representations,
agreements and understandings between the parties with respect to the subject
hereof. Except as herein expressly amended, all of the terms and provisions of
the Loan Agreement, and all other documents and agreements between Silicon and
Borrower shall continue in full force and effect and the same are hereby
ratified and confirmed.

                                      -3-
<PAGE>
SILICON VALLEY BANK               LIMITED WAIVER AND AMENDMENT TO LOAN DOCUMENTS
--------------------------------------------------------------------------------

BORROWER:                                       SILICON:
QUINTON INC. (FKA QUINTON                       SILICON VALLEY BANK
INSTRUMENT COMPANY)

By  /s/ John R. Hinson                          By     /s/ Silicon Valley Bank
  -----------------------------------             ------------------------------
    President or Vice President                 Title  Vice President

                                                     ---------------------------
By /s/ John R. Hinson
  -----------------------------------
   Secretary or Ass't Secretary

                                      -4-
<PAGE>
SILICON VALLEY BANK               LIMITED WAIVER AND AMENDMENT TO LOAN DOCUMENTS
--------------------------------------------------------------------------------

                                     CONSENT

         The undersigned acknowledge that their consent to the foregoing
Agreement is not required, but the undersigned nevertheless do hereby consent to
the foregoing Agreement and to the documents and agreements referred to therein
and to all future modifications and amendments thereto, and any termination
thereof, and to any and all other present and future documents and agreements
between or among the foregoing parties. Nothing herein shall in any way limit
any of the terms or provisions of the Continuing Guaranties of the undersigned,
all of which are hereby ratified and affirmed.

                                    QIC HOLDING CORP.

                                    By:           /s/ John R. Hinson
                                       -----------------------------------------
                                    Title:        Secretary
                                          --------------------------------------

                                      -5-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]