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                                                                   EXHIBIT 10.23

July 15, 1998


Robert J. Dominici



Dear Robert:

I am pleased to offer you a position with Cholestech Corporation (the "Company")
as an EXECUTIVE VICE PRESIDENT, commencing on JULY 20, 1998. Areas of
responsibility will include Marketing, Sales and Business Development. You will
receive a monthly salary of $13,750.00, which will be paid semi-monthly in
accordance with the Company's normal payroll procedures. You will be eligible
for the Management Incentive Bonus Program. This plan includes a potential award
rate of 32.5% of base salary for "On Target Performance" and 48.75% for "Maximum
Performance". Performance to be defined based on 30% for profit, 50% direct
responsibilities and 20% discretionary. First year is on a prorated basis as a
percent of the year employment.

As a Company Associate, you are also eligible to participate in our Associate
benefits package which includes medical/dental insurance, life insurance, long
term disability insurance, and a 401(k) retirement plan in addition to sixteen
(16) days of Personal Time Off the first year and ten (10) paid holidays. You
should note that the Company may modify salaries and/or benefits from time to
time as it deems necessary. Information regarding these programs and other
Company benefits along with guidelines concerning employment are contained in
the Cholestech Associate package, which is issued at the time employment
commences.

You will be granted an incentive stock option entitling you to purchase up to
250,000 shares priced at the close of business on the day you accept this offer.
Accelerated vesting will apply to 100,000 options upon successful completion of
the J&J-Merck Project. Completion definition to be defined. Should the J&J-Merck
Project be delayed the vesting will occur according to the standard vesting
plan. Such options shall be subject to the terms and conditions of the Company's
Stock Option Plan and Stock Option Agreement, including vesting requirements.

You should be aware that your employment with the Company is for no specified
period and constitutes at will employment. As a result, you are free to resign
at any time, for any reason or for no reason. Similarly, the Company is free to
conclude its employment relationship with you at any time, with or without
cause, and with or without notice.

In the event that Cholestech terminates your employment, without cause, you will
be paid an amount equal to one year's salary, at the rate of salary in effect
immediately prior to such termination and any bonus earned during your
employment (minus applicable withholding). Your stock option vesting will also
be accelerated for a year from date of termination. You may exercise the vested
options according to the terms and conditions of the Company's Stock Option Plan
and Stock Option Agreement.

Robert J. Dominici


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July 15, 1998
Page Two

For us to comply with the federal immigration law, you will be required to
provide to the Company documentary evidence of your identity and eligibility for
employment in the United States. Such documentation must be provided to us
within three (3) business days of your date of hire.

All new Associates are required to sign an "Employment, Confidential
Information, Invention Assignment, and Arbitration Agreement" as a condition of
employment. Please review the enclosed Employment, Confidential Information,
Invention Assignment, and Arbitration Agreement. This letter, along with the
agreement relating to proprietary rights between you and the Company, set forth
the terms of your employment with the Company and supersede any prior
representations or agreements, whether written or oral. This letter may not be
modified or amended except by a written agreement, signed by both parties.
Please feel free to call me with any questions or comments you might have about
the offer.

Kindly acknowledge your acceptance of this offer by signing and returning this
letter and the Employment, Confidential Information, Invention Assignment, and
Arbitration Agreement to the Human Resources Department. A duplicate original of
the offer letter is enclosed for your records.

We look forward to working with you at Cholestech Corporation.

Sincerely,

/s/ Warren E. Pinckert II

Warren E. Pinckert II
President and Chief Executive Officer

ACCEPTED AND AGREED TO this

15th day of July, 1998.



/s/ Robert J. Dominici
- -------------------------------
Robert J. Dominici

Enclosures:    Duplicate Original Letter
               Employment, Confidential Information, Invention Assignment,
                and Arbitration Agreement