Document:

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                                                                    EXHIBIT 10.6

                            INDEMNIFICATION AGREEMENT

      This Indemnification Agreement ("Agreement") is made effective as of the
____ day of _________, 2002 by and between QUINTON CARDIOLOGY SYSTEMS, INC., a
California corporation (the "Company"), and ______________ ("Indemnitee").

      WHEREAS, the Company and Indemnitee recognize the increasing difficulty in
obtaining directors' and officers' liability insurance, the increases in the
cost of such insurance and the general reductions in the coverage of such
insurance;

      WHEREAS, the Company and Indemnitee further recognize the substantial
increase in corporate litigation in general, subjecting officers and directors
to expensive litigation risks at the same time as the availability and coverage
of liability insurance has been severely limited;

      WHEREAS, Indemnitee does not regard the current protection available as
adequate under the present circumstances, and Indemnitee and other officers and
directors of the Company may not be willing to continue to serve as officers and
directors without additional protection; and

      WHEREAS, the Company desires to attract and retain the services of highly
qualified individuals, such as Indemnitee, to serve as officers and directors of
the Company and to indemnify its officers and directors so as to provide them
with the maximum protection permitted by law.

      NOW, THEREFORE, the Company and Indemnitee hereby agree as follows:

      1.    Indemnification.

            (a) Third Party Proceedings. The Company shall indemnify Indemnitee
if Indemnitee is or was a party or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (other than an action by or in the
right of the Company) by reason of the fact that Indemnitee is or was a
director, officer, employee or agent of the Company, or any subsidiary of the
Company, by reason of any action or inaction on the part of Indemnitee while an
officer or director or by reason of the fact that Indemnitee is or was serving
at the request of the Company as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise,
against expenses (including attorneys' fees), judgments, fines and amounts paid
in settlement (if such settlement is approved in advance by the Company, which
approval shall not be unreasonably withheld) actually and reasonably incurred by
Indemnitee in connection with such action, suit or proceeding if Indemnitee
acted in good faith and in a manner Indemnitee reasonably believed to be in or
not opposed to the best interests of the Company, and, with respect to any
criminal action, suit or proceeding, had no reasonable cause to believe
Indemnitee's conduct was unlawful. The termination of any action, suit or
proceeding by judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent, shall not, of itself, create a presumption that
Indemnitee did not act in good faith and in a manner
<PAGE>
which Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company, and, with respect to any criminal action, suit or
proceeding, had reasonable cause to believe that Indemnitee's conduct was
unlawful.

            (b) Proceedings By or in the Right of the Company. The Company shall
indemnify Indemnitee if Indemnitee was or is a party or is threatened to be made
a party to any threatened, pending or completed action or suit by or in the
right of the Company or any subsidiary of the Company to procure a judgment in
its favor by reason of the fact that Indemnitee is or was a director, officer,
employee or agent of the Company, or any subsidiary of the Company, by reason of
any action or inaction on the part of Indemnitee while an officer or director or
by reason of the fact that Indemnitee is or was serving at the request of the
Company as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, against expenses
(including attorneys' fees) and, to the fullest extent permitted by law, amounts
paid in settlement (if such settlement is approved in advance by the Company,
such approval not to be unreasonably withheld or delayed), in each case to the
extent actually and reasonably incurred by Indemnitee in connection with the
defense or settlement of such action or suit if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in or not opposed to the
best interests of the Company and its shareholders, except that no
indemnification shall be made in respect of any claim, issue or matter as to
which Indemnitee shall have been adjudged to be liable to the Company in the
performance of Indemnitee's duty to the Company and its shareholders unless and
only to the extent that the court in which such action or suit is or was pending
shall determine upon application that, in view of all the circumstances of the
case, Indemnitee is fairly and reasonably entitled to indemnity for expenses and
then only to the extent that the court shall determine.

            (c) Mandatory Payment of Expenses. To the extent that Indemnitee has
been successful on the merits or otherwise in defense of any action, suit or
proceeding referred to in Subsections (a) and (b) of this Section 1 or the
defense of any claim, issue or matter therein, Indemnitee shall be indemnified
against expenses (including attorneys' fees) actually and reasonably incurred by
Indemnitee in connection therewith.

            (d) Other Payment of Expenses. Other than for indemnification of
expenses by the Company pursuant to Section 1(c) or otherwise ordered by a court
of law, Indemnitee shall be indemnified by the Company against expenses
(including attorneys' fees) actually and reasonably incurred by Indemnitee only
if authorized in a specific case upon a determination that indemnification of
Indemnitee is proper in the circumstances because Indemnitee has met the
applicable standard of conduct set forth in Section 1(a) or 1(b), as applicable,
which determination shall be made by one of the following methods (as chosen by
the Company): (i) by a majority vote of the directors who are not parties to the
applicable action, suit or proceeding ("Disinterested Directors"), even though
less than a quorum may have been present, or by a committee of Disinterested
Directors appointed thereby, (ii) by Independent Legal Counsel (as such term is
defined below), reasonably acceptable to Indemnitee and the Company, in a
written opinion applying the applicable standard of conduct set forth in Section
1(a) or 1(b), as applicable, or (iii) by the shareholders of the Company
applying the applicable standard of conduct set forth in Section 1(a) or 1(b),
as applicable; provided, that, in any case, all
<PAGE>
requirements of applicable law have been met. For purposes of this Section 1(d),
"Independent Legal Counsel" shall mean a law firm, or a member of a law firm,
that is experienced in matters of corporate law and neither presently is, nor in
the past five years has been, retained to represent: (A) the Company or
Indemnitee in any matter (other than jointly with respect to the rights of
Indemnitee under this Agreement or other indemnities, under similar indemnity
agreements); or (B) any other party to the action, suit or proceeding giving
rise to a claim for indemnification hereunder; provided, however, Independent
Legal Counsel shall not include any firm or person who, under the applicable
standards of professional conduct then prevailing, would have a conflict of
interest in representing either the Company or Indemnitee in an action to
determine Indemnitee's rights under this Agreement.

      2.    Expenses; Indemnification Procedure.

            (a) Advancement of Expenses. The Company shall advance all expenses
(including attorneys' fees), incurred by Indemnitee in connection with the
investigation, defense, settlement or appeal of any civil or criminal action,
suit or proceeding referenced in Section l(a) or (b) hereof (including amounts
actually paid in settlement of any such action, suit or proceeding). Indemnitee
hereby undertakes to repay such amounts advanced only if, and to the extent
that, it shall ultimately be determined that Indemnitee is not entitled to be
indemnified by the Company as authorized hereby. The advances to be made
hereunder shall be paid promptly by the Company to Indemnitee following delivery
of a written request therefor by Indemnitee to the Company which request
provides documentation supporting such advances.

            (b) Notice/Cooperation by Indemnitee. Indemnitee shall, as a
condition precedent to the right to be indemnified under this Agreement, give
the Company notice in writing as soon as practicable of any claim made against
Indemnitee for which indemnification will or could be sought under this
Agreement. Notice to the Company shall be directed to the Chief Executive
Officer of the Company at the address shown on the signature page of this
Agreement (or such other address as the Company shall designate in writing to
Indemnitee). Omission of such Notice does not relieve the Company of its
obligation (unless it results in damages to the Company). Notice shall be deemed
received three business days after the date postmarked if sent by domestic
certified or registered mail, properly addressed; otherwise notice shall be
deemed received when such notice shall actually be received by the Company. In
addition, Indemnitee shall give the Company such information and cooperation as
it may reasonably require and as shall be within Indemnitee's power.

            (c) Procedure.

                  (i) Any indemnification and advances provided for in Sections
1 and/or 2, shall be made as soon as practicable, but in no event no later than
forty-five (45) days after receipt of the written request of Indemnitee. If a
claim under this Agreement, under any statute, or under any provision of the
Company's Articles of Incorporation or Bylaws, as amended, providing for
indemnification, is not paid in full by the Company within forty-five (45) days
after a written request for payment thereof has first been received by the
Company, Indemnitee may, but need not, at any time thereafter bring an action
against the Company to recover the unpaid
<PAGE>
amount of the claim and, subject to Section 12 of this Agreement, Indemnitee
shall also be entitled to be paid for the expenses (including attorneys' fees)
of bringing such action. It shall be a defense to any such action (other than an
action brought to enforce a claim for expenses (including attorneys' fees)
incurred in connection with any action, suit or proceeding in advance of its
final disposition) that Indemnitee has not met the standards of conduct which
make it permissible under applicable law for the Company to indemnify Indemnitee
for the amount claimed, but the burden of proving such defense shall be on the
Company and Indemnitee shall be entitled to receive interim payments of expenses
(including attorneys' fees) pursuant to Subsection 2(a) unless and until such
defense may be finally adjudicated by court order or judgment from which no
further right of appeal exists. It is the parties' intention that if the Company
contests Indemnitee's right to indemnification, the question of Indemnitee's
right to indemnification shall be for the court to decide, and neither the
failure of the Company (including its Board of Directors, any committee or
subgroup of the Board of Directors, Independent Legal Counsel, or its
shareholders) to have made a determination that indemnification of Indemnitee is
proper in the circumstances because Indemnitee has met the applicable standard
of conduct required by applicable law, nor an actual determination by the
Company (including its Board of Directors, any committee or subgroup of the
Board of Directors, Independent Legal Counsel, or its shareholders) that
Indemnitee has not met such applicable standard of conduct, shall create a
presumption that Indemnitee has or has not met the applicable standard of
conduct.

                  (ii) During the interval between the Company's receipt of such
a request under paragraph (b) of this Section 2, and the later to occur of (x)
payment in full to Indemnitee of the indemnification or advances required by
Sections 1 and 2 or (y) a determination (if required) pursuant to this Agreement
and applicable law that Indemnitee is not entitled to indemnification hereunder,
the Company shall take all necessary steps (whether or not such steps require
expenditures to be made by the Company at that time), to stay (pending a final
determination of Indemnitee's entitlement to indemnification and, if Indemnitee
is so entitled, the payment thereof) the execution, enforcement or collection of
any judgments, penalties, fines or any other amounts for which Indemnitee may be
liable (and as to which Indemnitee has requested indemnification hereunder) in
order to avoid Indemnitee being or becoming in default with respect to any such
amounts (such necessary steps to include, but not be limited to, the procurement
of a surety bond to achieve such stay or a loan to Indemnitee of amounts for
which Indemnitee may be liable and as to which a stay of execution as aforesaid
cannot be obtained), promptly after receipt of Indemnitee's written request
therefor together with a written undertaking by Indemnitee to repay promptly
following receipt of a statement therefor from the Company, amounts (if any)
expended by the Company for such purpose, if it is ultimately determined (if
such determination is required) that Indemnitee is not entitled to be
indemnified against such judgments, penalties, fines or other amounts.

            (d) Notice to Insurers. If, at the time of the receipt of a notice
of a claim pursuant to Section 2(b) hereof, the Company has director and officer
liability insurance in effect, the Company shall give prompt notice of the
commencement of such action, suit or proceeding to the insurers in accordance
with the procedures set forth in the respective policies. The Company shall
thereafter take all necessary or desirable action to cause such insurers to pay,
on behalf of
<PAGE>
the Indemnitee, all amounts payable as a result of such action, suit or
proceeding in accordance with the terms of such policies.

            (e) Selection of Counsel. In the event the Company shall be
obligated under Section 2(a) hereof to pay the expenses (including attorneys'
fees) of any action, suit or proceeding against Indemnitee, the Company, if
appropriate, shall be entitled to assume the defense of such action, suit or
proceeding, with counsel approved by Indemnitee, upon the delivery to Indemnitee
of written notice of its election so to do. After delivery of such notice,
approval of such counsel by Indemnitee and the retention of such counsel by the
Company, the Company will not be liable to Indemnitee under this Agreement for
any fees of counsel subsequently incurred by Indemnitee with respect to the same
action, suit or proceeding, provided that (i) Indemnitee shall have the right to
employ counsel in any such action suit or proceeding at Indemnitee's expense;
and (ii) if (A) the employment of counsel by Indemnitee has been previously
authorized by the Company, (B) Indemnitee shall have reasonably concluded that
there may be a conflict of interest between the Company and Indemnitee in the
conduct of any such defense, or (C) the Company shall not, in fact, have
employed counsel to assume the defense of such action, suit or proceeding, then
the fees and expenses of Indemnitee's counsel shall be at the expense of the
Company. The Company shall not be entitled to assume the defense of any claim,
action, suit or proceeding brought by or on behalf of the Company against
Indemnitee or as to which the Indemnitee shall have made the conclusion provided
for in (ii) (B) above.

      3.    Additional Indemnification Rights; Nonexclusivity.

            (a) Scope. Notwithstanding any other provision of this Agreement,
the Company hereby agrees to indemnify the Indemnitee to the fullest extent
permitted by law, notwithstanding that such indemnification is not specifically
authorized by the other provisions of this Agreement, the Company's Articles of
Incorporation, the Company's Bylaws, or by statute. In the event of any change
in any applicable law, statute or rule which narrows the right of a California
corporation to indemnify a member of its board of directors or an officer, such
changes, to the extent not otherwise required by such law, statute or rule to be
applied to this Agreement shall have no effect on this Agreement or the parties'
rights and obligations hereunder. In the event of any change, after the date of
this Agreement, in any applicable law, statute, or rule which expands the right
of a California corporation to indemnify a member of its board of directors or
an officer, it is the intent of the parties hereto that Indemnitee shall,
without the necessity of amending this Agreement, be entitled to the full
benefit of such expanded indemnification rights. Indemnitee's rights under this
Agreement are contractual rights which may not be diminished, modified or
restricted by any subsequent change in the Company's Articles of Incorporation,
Bylaws or corporate policies, as amended.

            (b) Nonexclusivity. The indemnification provided by this Agreement
shall not be deemed exclusive of any rights to which Indemnitee may be entitled
under the Company's Articles of Incorporation, its Bylaws, any agreement, any
vote of shareholders or disinterested Directors, the Corporation Law of the
State of California, or otherwise, both as to action in Indemnitee's official
capacity and as to action in another capacity while holding such office. The
<PAGE>
indemnification provided under this Agreement shall continue as to Indemnitee
for any action taken or not taken while serving in an indemnified capacity even
though Indemnitee may have ceased to serve in such capacity at the time of any
action, suit or other covered proceeding.

      4.    Partial Indemnification. If Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a
portion of the expenses (including attorneys' fees), judgments, fines or
penalties actually or reasonably incurred in the investigation, defense, appeal
or settlement of any civil, criminal, administrative or investigative action,
suit or proceeding, but not, however, for the total amount thereof, the Company
shall nevertheless indemnify Indemnitee for the portion of such expenses
(including attorneys' fees), judgments, fines or penalties to which Indemnitee
is entitled.

      5.    Mutual Acknowledgement. Both the Company and Indemnitee acknowledge
that in certain instances, Federal law or applicable public policy may prohibit
the Company from indemnifying its directors and officers under this Agreement or
otherwise. For example, the Company and Indemnitee acknowledge that the
Securities and Exchange Commission (the "SEC") has taken the position that
indemnification is not permissible for liabilities arising under certain federal
securities laws, and federal legislation prohibits indemnification for certain
ERISA violations. Indemnitee understands and acknowledges that the Company has
undertaken or may be required in the future to undertake with the Securities and
Exchange Commission to submit the question of indemnification to a court in
certain circumstances for a determination of the Company's right under public
policy to indemnify Indemnitee.

      6.    Officer and Director Liability Insurance. The Company shall, from
time to time, make the good faith determination whether or not it is practicable
for the Company to obtain and maintain a policy or policies of insurance with
reputable insurance companies providing the officers and directors of the
Company with coverage for losses from wrongful acts, or to ensure the Company's
performance of its indemnification obligations under this Agreement. Among other
considerations, the Company will weigh the costs of obtaining such insurance
coverage against the protection afforded by such coverage. In all policies of
director and officer liability insurance, Indemnitee, as long as he or she is
serving as director or officer of the Company, shall be named as an insured in
such a manner as to provide Indemnitee the same rights and benefits as are
accorded to the most favorably insured of the Company's directors, if Indemnitee
is a director; or of the Company's officers, if Indemnitee is not a director of
the Company but is an officer; or of the Company's key employees, if Indemnitee
is not an officer or director but is a key employee. Notwithstanding the
foregoing, the Company shall have no obligation to obtain or maintain such
insurance if the Company determines in good faith that such insurance is not
reasonably available, if the premium costs for such insurance are
disproportionate to the amount of coverage provided, if the coverage provided by
such insurance is limited by exclusions so as to provide an insufficient
benefit, or if Indemnitee is covered by similar insurance maintained by a
subsidiary or parent of the Company.

      7.    Severability. Nothing in this Agreement is intended to require or
shall be construed as requiring the Company to do or fail to do any act in
violation of applicable law. The Company's inability, pursuant to court order,
to perform its obligations under this Agreement
<PAGE>
shall not constitute a breach of this Agreement. The provisions of this
Agreement shall be severable as provided in this Section 7. If this Agreement or
any portion hereof shall be invalidated on any ground by any court of competent
jurisdiction, then the Company shall nevertheless indemnify Indemnitee to the
full extent permitted by any applicable portion of this Agreement that shall not
have been invalidated, and the balance of this Agreement not so invalidated
shall be enforceable in accordance with its terms.

      8.    Exceptions. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of
this Agreement:

            (a) Claims Initiated by Indemnitee. To indemnify or advance expenses
to Indemnitee with respect to actions, suits, proceedings or claims initiated or
brought voluntarily by Indemnitee and not by way of defense, except with respect
to actions, suits or proceedings brought to establish or enforce a right to
indemnification under this Agreement or any other statute or law or otherwise as
required under Section 317 of the California Corporation Law, but such
indemnification or advancement of expenses may be provided by the Company in
specific cases if the Board of Directors has approved the initiation or bringing
of such suit.

            (b) Lack of Good Faith. To indemnify Indemnitee for any expenses
incurred by the Indemnitee with respect to any action, suit or proceeding
instituted by Indemnitee to enforce or interpret this Agreement, if a court of
competent jurisdiction determines that each of the material assertions made by
the Indemnitee in such action, suit or proceeding was not made in good faith or
was frivolous.

            (c) Insured Claims. To indemnify Indemnitee for expenses or
liabilities of any type whatsoever (including, but not limited to, judgments,
fines, ERISA excise taxes or penalties, and amounts paid in settlement) which
have been paid directly to Indemnitee by an insurance carrier under a policy of
officers' and directors' liability insurance maintained by the Company.

            (d) Claims Under Section 16(b). To indemnify Indemnitee for expenses
and the payment of profits arising from the purchase and sale by Indemnitee of
securities in violation of Section 16(b) of the Securities Exchange Act of 1934,
as amended, or any similar successor statute.

      9.    No Employment Rights. Nothing contained in this Agreement is
intended to create in Indemnitee any right to continued employment.
<PAGE>
      10.   Construction of Certain Phrases.

            (a) For purposes of this Agreement, references to the "Company"
shall include any constituent corporation (including any constituent of a
constituent) absorbed in a consolidation or merger which, if its separate
existence had continued, would have had power and authority to indemnify its
directors, officers, and employees or agents, so that if Indemnitee is or was a
director, officer, employee or agent of such constituent corporation, or is or
was serving at the request of such constituent corporation as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, Indemnitee shall stand in the same position under the
provisions of this Agreement with respect to the resulting or surviving
corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued.

            (b) For purposes of this Agreement, references to "other
enterprises" shall include employee benefit plans; references to "fines" shall
include any excise taxes assessed on Indemnitee with respect to an employee
benefit plan; and references to "serving at the request of the Company" shall
include any service as a director, officer, employee or agent of the Company
which imposes duties on, or involves services by, such director, officer,
employee or agent with respect to an employee benefit plan, its participants, or
beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan, Indemnitee shall be deemed to have acted in a
manner "not opposed to the best interests of the Company" as referred to in this
Agreement.

      11.   Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall constitute an original.

      12.   Successors and Assigns. This Agreement shall be binding upon the
Company and its successors and assigns, and shall inure to the benefit of
Indemnitee and Indemnitee's estate, heirs, legal representatives and assigns.

      13.   Attorneys' Fees. In the event that any action is instituted by
Indemnitee under this Agreement to enforce or interpret any of the terms hereof,
Indemnitee shall be entitled to be paid all court costs and expenses, including
reasonable attorneys' fees, incurred by Indemnitee with respect to such action,
unless as a part of such action, the court of competent jurisdiction determines
that each of the material assertions made by Indemnitee as a basis for such
action were not made in good faith or were frivolous. In the event of an action
instituted by or in the name of the Company under this Agreement or to enforce
or interpret any of the terms of this Agreement, Indemnitee shall be entitled to
be paid all court costs and expenses, including attorneys' fees, incurred by
Indemnitee in defense of such action (including with respect to Indemnitee's
counterclaims and cross-claims made in such action), unless as a part of such
action the court determines that each of Indemnitee's material defenses to such
action were made in bad faith or were frivolous.
<PAGE>
      14.   Notice. All notices, requests, demands and other communications
under this Agreement shall be in writing and shall be deemed duly given (i) if
delivered by hand and receipted for by the party addressee, on the date of such
receipt, or (ii) if mailed by domestic certified or registered mail with postage
prepaid, on the third business day after the date postmarked. Addresses for
notice to either party are as shown on the signature page of this Agreement, or
as subsequently modified by written notice.

      15.   Choice of Law. This Agreement shall be governed by and its
provisions construed in accordance with the laws of the State of California,
without giving effect to principles of conflict of law.

      16.   Modification. This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof. All prior
negotiations, agreements and understandings between the parties with respect
thereto are superseded hereby. This Agreement may not be modified or amended
except by an instrument in writing signed by or on behalf of the parties hereto.

      17.   Subrogation. In the event of payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all documents required and shall do
all acts that may be necessary to secure such rights and to enable the Company
to effectively bring suit to enforce such rights.
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have executed this Indemnification
Agreement as of the date first above written.

                                        QUINTON CARDIOLOGY SYSTEMS, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        Address:  3033 Monte Villa Parkway
                                                  Bothell, Washington  98021
                                                  Attn: President

AGREED TO AND ACCEPTED BY
INDEMNITEE:

-------------------------------
(signature)

-------------------------------

-------------------------------
(address)<PAGE>
                                                                    EXHIBIT 10.9

                                  OEM AGREEMENT

        This OEM AGREEMENT (the "Agreement") is effective as of the first day of
August, 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 a worldwide marketing relationship
for its hardware and software Products (as defined below);

        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 a non-exclusive
basis, combine and assemble them with other Quinton products and resell them to
third-party distributors and end-users through a network of Quinton sales;

        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     "ARRHYTHMIA ANALYSIS SOFTWARE" shall mean the arrhythmia analysis
        software provided by Mortara hereunder.

1.2     "COMPETITIVE CHANGE OF CONTROL" shall be deemed in effect in the event a
        competitor of Mortara obtains equity ownership in Quinton 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
        and followed by written confirmation of the confidential nature of such
        information. 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     "FDA" shall mean the United States Food and Drug Administration, and any
        successor thereto.

1.7     "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.

1.8     "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

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

07/27/00                   - Quinton Confidential -                Page 1 of 13
<PAGE>

        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.

1.9     "HARDWARE PRODUCTS" include the Receiver Carrier Cards, Receiver Cans,
        Transmitters and Antenna Network Components provided by Mortara
        hereunder.

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

1.11    "PRODUCT(s)" shall mean the then current version of Mortara's software
        and hardware products detailed in Exhibit A, together with any
        commercially available documentation in electronic and hardcopy formats,
        and any related technical information, updates and enhancements thereto.
        The Products include Hardware Products, Product Accessories, Software
        Products.

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

1.13    "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.

1.14    "SOFTWARE PRODUCT(s)" include software drivers and the Arrhythmia
        Analysis Software provided by Mortara hereunder.

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

1.16    "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.

1.17    "TERRITORY" shall mean all countries of the world.

1.18    "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 development
        purposes.

1.19    "TRANSMITTERS" shall mean the transmitters provided by Mortara
        hereunder.

                             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 (a) a non-exclusive, nontransferable, worldwide license
to combine the Products with Quinton products or equipment and deliver the
Products as combined, integrated and/or bundled with Quinton products or
equipment to End Users in the Territory, and (b) a non-exclusive,
nontransferable, worldwide license to copy and distribute any related Product
software and combine related Product software with Quinton products or equipment
for distribution to End Users in the Territory.

2.2 DEVELOPMENT OF PRODUCT

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

        2.2.2   Validation and verification testing shall be defined and
                conducted by Quinton on the Products as delivered by Mortara.
                During the testing period, at its sole cost and expense, Mortara
                shall

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                provide Quinton with technical assistance to assist in the
                validation and verification testing process.

        2.2.3   Mortara agrees that the total non-recurring engineering costs
                that Quinton will pay Mortara (the "NRE Costs") to support
                development of the Arrhythmia Analysis Software for use in the
                Products shall be [*]. Mortara will invoice Quinton for 100% of
                the NRE Costs upon execution of this Agreement.

2.3     REGULATORY APPROVALS BY MORTARA. Mortara will be solely responsible for
        filing, obtaining and maintaining any and all Regulatory Approvals
        relating to the Transmitters 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.

2.4     REGULATORY APPROVALS BY QUINTON. Quinton will be solely responsible for
        filing, obtaining and maintaining any and all Regulatory Approvals
        relating to the Combined Product. All Regulatory Approvals will be owned
        by and filed in the name of Quinton. Mortara will cooperate with
        Quinton, at Quinton's expense, in such manner as Quinton 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: 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. Quantities for this initial purchase order are
attached hereto in 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.

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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     REPORTING AND PAYMENT TERMS.

        4.2.1   For all 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 Arrhythmia Analysis Software copied and distributed by
                Quinton for Sale in connection with other Products under this
                Agreement, 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 Arrhythmia Analysis Software was
                Sold, specifying the number of copies of Arrhythmia Analysis
                Software 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
                monthly reports shall be accompanied by payment due, if any.
                Quinton shall submit monthly reports even if no Arrhythmia
                Analysis Software was Sold during the preceding month.

        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, address, city, state, zip or
                postal code, country, area code and phone number, End User
                contact, Arrhythmia Analysis Software name ("lethal" or
                "extended" version), number and description, and quantity Sold
                to End User minus returns.

4.3     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.

4.4     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.

4.5     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

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        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.

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 Products will be warranted for a period of fourteen (14) months
        from the date on which the Hardware Product is delivered to Quinton;
        Software

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        Products and Product Accessory will be warranted for a period of ninety
        (90) days from the date on which the Software Product or Product
        Accessory is 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,
        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

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        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.

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 $l,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,

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        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 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.

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                        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.

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 thirty (30) 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 the NRE costs noted in Article 2 and
        Product orders noted in Article 3. Likewise, Mortara will

[*] 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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<PAGE>

        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. Quinton shall provide Mortara with prompt written
        notice in the event of any Competitive Change of Control, 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: (i) require Quinton to immediately pay
        any outstanding NRE Costs (as defined in Section 2.2..3), and / or (ii)
        require Quinton to satisfy its obligation to accept delivery of any
        Product(s) ordered under any then current Quinton purchase order.

12.7    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.

12.8    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 Unites States of
        America, excluding the United Nations Convention on Contacts 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

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        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.

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)1(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.

[*] 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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<PAGE>

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 events. If a force majeure
        prevents Mortara from supplying, for a period in excess of ninety (90)
        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

              8/1/00                                     8/1/00
--------------------------------------    --------------------------------------
 Date                                      Date

[*] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
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<PAGE>

                                    EXHIBIT A
                          PRODUCTS, FEES AND QUANTITIES
<TABLE>
<CAPTION>
                                                                                        INITIAL
                                                              TRANSFER        LEAD       ORDER
                      PRODUCT                   QUANTITY        FEE           TIME      QUANTITY
                      -------                   --------      --------      --------    --------
<S>                                             <C>           <C>           <C>         <C>
Receiver Carrier Cards*
Includes Windows NT driver license                 [*]          [*]         4 months      [*]

2.45 gHz Down Converter Unit 16 Channel            [*]          [*]         4 months      [*]

Receiver Cans*                                     [*]          [*]         4 months      [*]
                                                   [*]          [*]         4 months
                                                   [*]          [*]         4 months
                                                   [*]          [*]         4 months

Transmitters**
Includes patient cable and AA batteries            [*]          [*]         4 months      [*]
                                                   [*]          [*]         4 months
                                                   [*]          [*]         4 months
                                                   [*]          [*]         4 months

Arrhythmia Analysis
Software License fees for each Receiver Can

                                        Lethal     [*]          [*]           N/A         [*]
                                      Extended     [*]          [*]           N/A         [*]

Antenna Network Components:
Antenna Network Amplifier AN-915                   [*]          [*]         4 months      [*]
915 Mhz  1/2 Wavelength Antenna                    [*]          [*]         1 month       [*]
BNC Male to TNC Female Coupler                     [*]          [*]         1 month       [*]
50-Ohm BNC Male Terminator                         [*]          [*]         1 month       [*]
Antenna Network Power Supply                       [*]          [*]         1 month       [*]
4' RG58C/U BNC M - BNC M Cable                     [*]          [*]         1 month       [*]
8m RG58 BNC M - BNC M Cable                        [*]          [*]         1 month       [*]
15m RG58 BNC M - BNC M Cable                       [*]          [*]         1 month       [*]
4-way 915 MHz Power Splitter w/BNC Connectors      [*]          [*]         1 month       [*]
8-way 915 MHz Power Splitter w/BNC Connectors      [*]          [*]         1 month       [*]
DC Block w/ BNC Connectors for 915 MHz             [*]          [*]         1 month       [*]
Power Supply DC Linear Antenna Network             [*]          [*]         1 month       [*]
</TABLE>

*Receiver Carrier Cards and Receiver Cans will be provided as individual parts
to be assembled, calibrated and tested in custom configurations by Quinton.

**Transmitters to be provided as complete units with cable harnesses by Mortara,
private labeled by Mortara for Quinton, including a Mortara label e.g. 'Mortara
Inside' or 'Powered by Mortara'. All decisions regarding product labeling and
trademarking for the Combined Products will be the responsibility of Quinton.

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

07/27/00                   - Quinton Confidential -                Page 13 of 13

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