Document:

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                              AMENDED AND RESTATED
                        INITIAL PUBLIC OFFERING AGREEMENT

                           dated as of March 15, 2000

                                     between

                            PHOENIX TECHNOLOGIES LTD.

                                       and

                              INSILICON CORPORATION

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                                TABLE OF CONTENTS

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ARTICLE I             DEFINITIONS................................................................................1

         Section 1.1.          Definitions.......................................................................1

ARTICLE II            THE INITIAL PUBLIC OFFERING................................................................4

         Section 2.1.          Cooperation Before to the Initial Public Offering.................................4

         Section 2.2.          Conditions Precedent to the Initial Public Offering...............................5

ARTICLE III           INDEMNIFICATION............................................................................6

         Section 3.1.          Release of Claims.................................................................6

         Section 3.2.          Indemnification by inSilicon......................................................7

         Section 3.3.          Indemnification by Phoenix........................................................8

         Section 3.4.          Notice and Payment of Claims......................................................8

         Section 3.5.          Notice and Defense of Third-Party Claims..........................................9

         Section 3.6.          Insurance Proceeds...............................................................10

         Section 3.7.          Contribution.....................................................................10

         Section 3.8.          Subrogation......................................................................10

         Section 3.9.          No Third-Party Beneficiaries.....................................................11

         Section 3.10.         Remedies Cumulative..............................................................11

         Section 3.11.         Survival of Indemnities..........................................................11

         Section 3.12.         After-Tax Indemnification Payments...............................................11

ARTICLE IV            CERTAIN ADDITIONAL MATTERS................................................................11

         Section 4.1.          Company Officers and Board of Directors..........................................11

         Section 4.2.          The Company Certificate of Incorporation and Bylaws..............................11

         Section 4.3.          Insurance Policies and Claims Administration.....................................11

         Section 4.4.          Non-Solicitation of Employees....................................................13

ARTICLE V             ACCESS TO INFORMATION.....................................................................14

         Section 5.1.          Agreement For Exchange of Information............................................14

         Section 5.2.          Auditors and Audits; Annual and Quarterly Statements and Accounting..............15

         Section 5.3.          Confidentiality; Protection......................................................17

         Section 5.4.          Mail.............................................................................17

ARTICLE VI            DISPUTE RESOLUTION........................................................................18

         Section 6.1.          Dispute Resolution...............................................................18

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                               TABLE OF CONTENTS
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         Section 6.2.          Continuity of Service and Performance............................................19

ARTICLE VII           STANDSTILL; COVENANT NOT TO COMPETE.......................................................19

         Section 7.1.          Standstill.......................................................................19

         Section 7.2.          Non-Compete......................................................................19

ARTICLE VIII          MISCELLANEOUS.............................................................................20

         Section 8.1.          Termination......................................................................20

         Section 8.2.          Expenses.........................................................................20

         Section 8.3.          Notices..........................................................................21

         Section 8.4.          Amendment and Waiver.............................................................21

         Section 8.5.          Counterparts.....................................................................21

         Section 8.6.          Governing Law....................................................................22

         Section 8.7.          Entire Agreement.................................................................22

         Section 8.8.          Assignment.......................................................................22

         Section 8.9.          Parties in Interest..............................................................22

         Section 8.10.         Tax Sharing Agreement............................................................22

         Section 8.11.         Exhibits and Schedules...........................................................22

         Section 8.12.         Legal Enforceability.............................................................22

         Section 8.13.         Titles and Headings..............................................................23

         Section 8.14.         Conflicting Agreements...........................................................23

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                              AMENDED AND RESTATED
                        INITIAL PUBLIC OFFERING AGREEMENT

     This Amended and Restated Initial Public Offering Agreement (this
"Agreement") is entered into effective as of March 15, 2000 by and between
Phoenix Technologies, Ltd., a Delaware corporation ("Phoenix"), and inSilicon
Corporation, a Delaware corporation and a wholly owned subsidiary of Phoenix
("inSilicon").

                                    RECITALS

     WHEREAS, the Board of Directors of Phoenix has determined that it is in the
best interests of Phoenix to separate the business and operations of Phoenix
engaged in the development and licensing of semiconductor intellectual property
cores, silicon subsystems, firmware stocks and drivers (the "Business") from
Phoenix's other operations by transferring the assets of the Business to
inSilicon and causing inSilicon to assume the liabilities of the Business (the
"Separation");

     WHEREAS, the parties have determined that it is desirable and in the best
interests of inSilicon to obtain funds for the operation of the Business by
causing inSilicon to sell, in an initial public offering (the "Initial Public
Offering"), additional shares of its common stock, par value $.001 per share
("Common Stock");

     WHEREAS, it is appropriate and desirable to set forth certain agreements
that will govern certain matters relating to the Separation and the Initial
Public Offering and the relationship of Phoenix and inSilicon and their
respective subsidiaries after the Initial Public Offering.

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, provisions and covenants contained
in this Agreement, the parties hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

     Section 1.1. DEFINITIONS. As used herein, the following terms have the
following meanings:

     "ACTION" means any claim, suit, arbitration, inquiry, proceeding or
investigation by or before any court, governmental or regulatory or
administrative agency or commission or any other tribunal or other Governmental
Authority.

     "AFFILIATE" of any specified Person means any other Person that, directly
or indirectly, controls, is controlled by or is under common control with such
specified Person.

     "AGREEMENT" has the meaning set forth in the preamble, as such agreement
may be amended and supplemented from time to time in accordance with its terms.

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     "ANCILLARY AGREEMENTS" means each of the following agreements between
Phoenix and inSilicon dated as of November 30, 1999, as the same may be amended
from time to time: the Services and Cost-Sharing Agreement, the Employee Matters
Agreement, the Tax-Sharing Agreement, the Registration Rights Agreement and the
Technology Distributor Agreement.

     "BUSINESS" has the meaning set forth in the first recital of this
Agreement.

     "CLOSING DATE" means the first time at which any shares of Common Stock are
sold to the Underwriters pursuant to the Initial Public Offering in accordance
with the terms of the Underwriting Agreement.

     "COMMISSION" means the Securities and Exchange Commission.

     "COMMON STOCK" has the meaning set forth in the second recital of this
Agreement.

     "COMPANY BYLAWS" means the bylaws of inSilicon in the form to take effect
immediately prior to the Closing Date filed as an exhibit to the Registration
Statement.

     "COMPANY CERTIFICATE" means the restated certificate of incorporation of
inSilicon in the form to take effect immediately prior to the Closing Date filed
as an exhibit to the Registration Statement.

     "CONTRIBUTION AGREEMENT" means that certain Contribution Agreement between
inSilicon and Phoenix dated as of November 30, 1999, as the same may be amended
from time to time.

     "DISPUTES" has the meaning set forth in Section 6.1.

     "EFFECTIVE INITIAL PUBLIC OFFERING DATE" means the date on which the
Registration Statement is declared effective by the Commission.

     "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

     "GOVERNMENTAL AUTHORITY" means any federal, state, local, foreign or
international court, government, department, commission, board, bureau, agency,
official or other regulatory, administrative or governmental authority.

     "INDEMNIFIED PARTY" has the meaning set forth in Section 3.4.

     "INDEMNIFYING PARTY" has the meaning set forth in Section 3.4.

     "INFORMATION" means information, whether or not patentable or
copyrightable, in written, oral, electronic or other tangible or intangible
forms, stored in any medium, including studies, reports, records, books,
contracts, instruments, surveys, discoveries, ideas, concepts, know-how,
techniques, designs, specifications drawings, blueprints, diagrams, models,
prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes,
computer programs or other software, marketing plans, customer names,
communications by or to attorneys (including attorney-client privileged
communications), memos and other materials prepared by attorneys or under their

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direction (including attorney work product), and other technical, financial,
employee or business information or data.

     "INITIAL PUBLIC OFFERING" has the meaning set forth in the second recital
of this Agreement.

     "INSILICON CONTRACT" shall have the meaning set forth in the Contribution
Agreement.

     "INSILICON INDEMNITEES" has the meaning set forth in Section 3.3.

     "INSILICON'S AUDITORS" has the meaning set forth in Section 5.2(a).

     "INSURANCE CHARGES" has the meaning set forth in Section 4.3(c).

     "LIABILITY" shall have the meaning set forth in the Contribution Agreement.

     "PERSON" means an individual, a general or limited partnership, a
corporation, a trust, a joint venture, an unincorporated organization, a limited
liability entity, any other entity and any Governmental Authority.

     "PHOENIX'S AUDITORS" has the meaning set forth in Section 5.2(b).

     "PHOENIX GROUP" means Phoenix and each Person (other than inSilicon and its
subsidiaries) that is an Affiliate of Phoenix immediately after the Separation
Date.

     "PHOENIX INDEMNITEES" has the meaning set forth

     "POLICY" has the meaning set forth in Section 4.3(a).

     "PROSPECTUS" means each preliminary, final or supplemental prospectus
forming a part of the Registration Statement.

     "REGISTRATION STATEMENT" means the registration statement on Form S-1 filed
by inSilicon with the Commission to effect the registration of the Common Stock
pursuant to the Securities Act, as such registration statement may be amended
from time to time.

     "SECURITIES ACT" means the Securities Act of 1933, as amended.

     "SEMICONDUCTOR INTELLECTUAL PROPERTY LIABILITIES" shall have the meaning
set forth in the Contribution Agreement.

     "SEPARATION" has the meaning set forth in the second recital of this
Agreement.

     "SEPARATION DATE" means November 30, 1999.

     "TAX" or "TAXES" has the meaning set forth in the Tax-Sharing Agreement.

     "THIRD-PARTY CLAIM" has the meaning set forth in Section 3.5.

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     "UNDERWRITERS" means the Persons listed as "underwriters" in the final
Prospectus.

     "UNDERWRITING AGREEMENT" has the meaning set forth in Section 3.2.

     Unless otherwise specified, any reference to any "subsidiary" or
"subsidiaries" of Phoenix shall not include inSilicon.

                                   ARTICLE II

                           THE INITIAL PUBLIC OFFERING

     Section 2.1. COOPERATION BEFORE TO THE INITIAL PUBLIC OFFERING. (a)
TRANSACTIONS BEFORE THE INITIAL PUBLIC OFFERING.

          (i) Subject to the conditions specified in Section 3.3, Phoenix and
     inSilicon shall use their reasonable efforts to consummate the Initial
     Public Offering. Such actions shall include, but not necessarily be limited
     to, those specified in this Section 2.1.

          (ii) inSilicon shall file the Registration Statement, and such
     amendments or supplements thereto, as may be necessary in order to cause
     the same to become and remain effective as required by law or by the
     Underwriters, including, but not limited to, filing such amendments to the
     Registration Statement as may be required by the Underwriting Agreement,
     the Commission or federal, state or foreign securities laws. inSilicon also
     shall prepare, file with the Commission and cause to become effective a
     registration statement registering the Common Stock under the Exchange Act,
     and any registration statements or amendments thereof which are required to
     reflect the establishment of, or amendments to, any employee benefit and
     other plans necessary or appropriate in connection with the Separation and
     the Initial Public Offering or the other transactions contemplated by this
     Agreement and the Ancillary Agreements.

          (iii) inSilicon shall enter into the Underwriting Agreement, in form
     and substance reasonably satisfactory to inSilicon and shall comply with
     its obligations thereunder.

          (iv) Phoenix and inSilicon shall consult with each other and the
     Underwriters regarding the timing, pricing and other material matters with
     respect to the Initial Public Offering.

          (v) inSilicon shall use its best efforts to take all such action as
     may be necessary or appropriate under state securities and blue sky laws of
     the United States (and any comparable laws under any foreign jurisdictions)
     in connection with the Initial Public Offering.

          (vi) inSilicon shall prepare, file and use best efforts to seek to
     make effective, a listing application for quotation of the Common Stock
     issued in the Initial Public Offering in the Nasdaq National Market,
     subject to official notice of issuance.

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          (vii) inSilicon shall participate in the preparation of materials and
     presentations as the Underwriters shall deem necessary or desirable.

          (viii) inSilicon shall pay the costs and expenses set forth in Section
     8.2.

     (b) PROCEEDS OF THE INITIAL PUBLIC OFFERING. The Initial Public Offering
will consist of a primary offering of Common Stock by inSilicon. inSilicon will
receive the net proceeds of the Initial Public Offering, but shall remain
subject to any obligations to Phoenix under this Agreement, the Contribution
Agreement or any Ancillary Agreement required to be paid therefrom.

     Section 2.2. CONDITIONS PRECEDENT TO THE INITIAL PUBLIC OFFERING. In no
event shall the Initial Public Offering occur unless the following conditions
shall, unless waived by Phoenix in its sole discretion, have been satisfied:

     (a) The Registration Statement shall have been filed and declared effective
by the Commission, and there shall be no stop-order in effect with respect
thereto.

     (b) The actions and filings with regard to state securities and blue sky
laws of the United States (and any comparable laws under any foreign
jurisdictions) described in Section 2.1 shall have been taken and, where
applicable, have become effective or been accepted.

     (c) inSilicon's Board of Directors, as named in the Registration Statement,
shall have been elected by Phoenix, as sole stockholder of inSilicon, and the
Company Certificate and Company Bylaws shall be in effect.

     (d) inSilicon and Phoenix shall have entered into the Underwriting
Agreement and all conditions to the obligations of inSilicon and the
Underwriters shall have been satisfied or waived.

     (e) The Common Stock shall have been approved for quotation in the Nasdaq
National Market, subject to official notice of issuance.

     (f) Each of the Ancillary Agreements, in form and substance satisfactory to
Phoenix, shall have been executed by the parties thereto and shall remain in
full force and effect and each of the transactions contemplated by the Ancillary
Agreements to be consummated on or before the Effective Initial Public Offering
Date shall have been consummated.

     (g) No preliminary or permanent injunction or other order, decree or ruling
issued by a court of competent jurisdiction or by a government, regulatory or
administrative agency or commission, and no statute, rule, regulation or
executive order promulgated or enacted by any Governmental Authority, shall be
in effect preventing the Initial Public Offering or any of the other
transactions contemplated by this Agreement or any Ancillary Agreement shall be
in effect.

     (h) Phoenix shall have been released from any Liabilities, guarantees or
other obligations with respect to any indebtedness or otherwise of inSilicon or
its subsidiaries.

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     (i) Such other actions as the parties may, based upon the advice of
counsel, reasonably request to be taken before the Initial Public Offering in
order to assure the successful completion of the Initial Public Offering and the
other transactions contemplated by this Agreement shall have been taken.

     (j) This Agreement shall not have been terminated.

                                   ARTICLE III

                                 INDEMNIFICATION

     Section 3.1. RELEASE OF CLAIMS. (a) Except as provided in Section 3.1(c),
effective as of the Separation Date, inSilicon does hereby, for itself and its
Affiliates (other than any member of the Phoenix Group), successors and assigns,
and all Persons who at any time prior to the Separation Date have been
stockholders, directors, officers, agents or employees of inSilicon (in each
case, in their respective capacities as such), remise, release and forever
discharge Phoenix and each member of the Phoenix Group, their respective
successors and assigns, and all Persons who at any time prior to the Separation
Date have been stockholders, directors, officers, agents or employees of Phoenix
or any member of the Phoenix Group (in each case, in their respective capacities
as such), and their respective heirs, executors, administrators, successors and
assigns, from any and all Liabilities whatsoever, whether at law or in equity
(including any right of contribution), whether arising under any contract or
agreement, by operation of law or otherwise, existing or arising from any facts
or events occurring or failing to occur or alleged to have occurred or to have
failed to occur or any conditions existing or alleged to have existed on or
before the Separation Date, including in connection with the transactions and
all other activities to implement the Separation and the Initial Public
Offering.

     (b) Except as provided in Section 3.1(c), effective as of the Separation
Date, Phoenix does hereby, for itself and each member of the Phoenix Group,
successors and assigns, and all Persons who at any time prior to the Separation
Date have been stockholders, directors, officers, agents or employees of Phoenix
or any member of the Phoenix Group (in each case, in their respective capacities
as such), remise, release and forever discharge inSilicon and its subsidiaries,
their respective successors and assigns, and all Persons who at any time prior
to the Separation Date have been stockholders, directors, officers, agents or
employees of inSilicon or any of its subsidiaries (in each case, in their
respective capacities as such), and their respective heirs, executors,
administrators, successors and assigns, from any and all Liabilities whatsoever,
whether at law or in equity (including any right of contribution), whether
arising under any contract or agreement, by operation of law or otherwise,
existing or arising from any facts or events occurring or failing to occur or
alleged to have occurred or to have failed to occur or any conditions existing
or alleged to have existed on or before the Separation Date, including in
connection with the transactions and all other activities to implement the
Separation and the Initial Public Offering.

     (c) Nothing contained in Sections 3.1(a) or (b) shall impair any right of
any Person to enforce this Agreement, the Contribution Agreement or any
Ancillary Agreement. Nothing contained in Sections 3.1(a) and (b) shall release
any Person from:

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          (i) any Liability, contingent or otherwise, assumed, transferred or
     assigned to such Person in accordance with, or any other Liability of any
     Person under, this Agreement, the Contribution Agreement or any Ancillary
     Agreement;

          (ii) any Liability that the parties may have with respect to
     indemnification or contribution pursuant to this Agreement for claims
     brought against the parties by third Persons, which Liability shall be
     governed by the provisions of this Article III and, if applicable, the
     appropriate provisions of the Contribution Agreement or the Ancillary
     Agreements; or

          (iii) any Liability the release of which would result in the release
     of any Person other than a Person released pursuant to this Section 3.1;
     provided that the parties agree not to bring suit or permit any of their
     subsidiaries to bring suit against any Person with respect to any Liability
     to the extent that such Person would be released with respect to such
     Liability by this Section 3.1 but for the provision of this clause (iii).

     (d) inSilicon shall not make, and shall not permit any of its subsidiaries
to make, any claim or demand or commence any Action asserting any claim or
demand, including any claim of contribution or indemnification, against Phoenix
or any member of the Phoenix Group or any other Person released pursuant to
Section 3.1(a), with respect to any Liabilities released pursuant to Section
3.1(a). Phoenix shall not make, and shall not permit any member of the Phoenix
Group to make, any claim or demand or commence any Action asserting any claim or
demand, including any claim of contribution or indemnification, against
inSilicon or any of its subsidiaries or any other Person released pursuant to
Section 3.1(b), with respect to any Liabilities released pursuant to Section
3.1(b).

     (e) It is the intention of each of Phoenix and inSilicon by virtue of the
provisions of this Section 3.1 to provide for a full and complete release and
discharge of all Liabilities existing or arising from all acts and events
occurring or failing to occur or alleged to have occurred or failed to occur and
all conditions existing or alleged to have existed on or before the Separation
Date, between or among inSilicon or any of its subsidiaries, on the one hand,
and Phoenix or any member of the Phoenix Group, on the other hand (including any
contractual agreements or arrangements existing or alleged to exist between or
among such Persons on or before the Separation Date), except as expressly set
forth in Section 3.1(c). At any time, at the request of the other party, each
party shall execute and deliver, or shall cause such other appropriate Persons
to execute and deliver, releases reflecting the provisions hereof.

     Section 3.2. INDEMNIFICATION BY INSILICON. Except as provided in Section
3.5 and except as otherwise expressly provided in the Contribution Agreement or
any of the Ancillary Agreements, from and after the Separation Date, inSilicon
shall indemnify, defend and hold harmless Phoenix, each member of the Phoenix
Group and each of their respective directors, officers, employees and agents and
each of the heirs, executors, successors and assigns of any of the foregoing
(collectively, the "Phoenix Indemnitees") from and against any and all
Liabilities of the Phoenix Indemnitees arising out of, relating to or resulting
from any of the following items (without duplication):

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     (a) the failure of inSilicon or any other Person to pay, perform or
otherwise promptly discharge any Semiconductor Intellectual Property Liability
or inSilicon Contract in accordance with their respective terms, whether before
or after the Separation Date;

     (b) the Business, any Semiconductor Intellectual Property Liability or any
inSilicon Contract;

     (c) any breach by inSilicon or any of its subsidiaries of this Agreement,
the Contribution Agreement or any of the Ancillary Agreements;

     (d) any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement, or any amendment thereto, including any
information deemed to be a part thereof pursuant to Rule 430A under the
Securities Act, or the omission or alleged omission therefrom of a material fact
required to be stated therein or necessary to make the statements therein not
misleading, other than information pertaining solely to Phoenix that is supplied
by Phoenix;

     (e) any untrue statement or alleged untrue statement of a material fact
contained in any Prospectus (or any supplement thereto), or the omission or
alleged omission therefrom of a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, other than information pertaining solely to Phoenix that
is supplied by Phoenix;

     (f) in whole or in part, any inaccuracy in the representations and
warranties of inSilicon contained in the underwriting agreement between
inSilicon and the Underwriters (the "Underwriting Agreement");

     (g) in whole or in part upon any failure of inSilicon to perform its
obligations under the Underwriting Agreement or under law;

     (h) any untrue statement or alleged untrue statement of any material fact
contained in any audio or visual materials provided by inSilicon or based upon
written information furnished by or on behalf of inSilicon including, without
limitation, slides, videos, films or tape recordings, used in connection with
the marketing of the shares of Common Stock sold pursuant to the Prospectus; and

     (i) any act or failure to act or any alleged act or failure to act by any
Underwriter in connection with, or relating in any manner to, the shares of
Common Stock sold pursuant to the Prospectus or the offering contemplated by the
Registration Statement, and which is included as part of or referred to in any
loss, claim, damage, liability or action arising out of or based upon any matter
covered by clause (d), (e), (f), (g) or (h) above.

     Section 3.3. INDEMNIFICATION BY PHOENIX. Except as provided in Section 3.5
and except as otherwise expressly provided in the Contribution Agreement or any
of the Ancillary Agreements, from and after the Separation Date, Phoenix shall
indemnify, defend and hold harmless inSilicon and each of its subsidiaries and
each of their respective directors, officers, employees and agents and each of
the heirs, executors, successors and assigns of any of the foregoing
(collectively, the "inSilicon Indemnitees") from and against any and all
Liabilities of

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the inSilicon Indemnitees arising out of, relating to or resulting from any of
the following items (without duplication):

     (a) the failure of Phoenix or any other member of the Phoenix Group or any
other Person to pay, perform or otherwise promptly discharge any Liability of
the Phoenix Group other than the Semiconductor Intellectual Property Liabilities
in accordance with its terms, whether before or after the Separation Date;

     (b) any Liability of any member of the Phoenix Group other than the
Semiconductor Intellectual Property Liabilities and the business of any member
of the Phoenix group other than the Business;

     (c) any breach by Phoenix or any member of the Phoenix Group of this
Agreement, the Contribution Agreement or any of the Ancillary Agreements;

     (d) any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement, or any amendment thereto, including any
information deemed to be a part thereof pursuant to Rule 430A under the
Securities Act, pertaining solely to Phoenix that is supplied by Phoenix, or the
omission or alleged omission therefrom of a material fact pertaining solely to
Phoenix required to be stated therein or necessary to make the statements
therein not misleading; and

     (e) any untrue statement or alleged untrue statement of a material fact
contained in any Prospectus (or any supplement thereto), or the omission
pertaining solely to Phoenix that is supplied by Phoenix or alleged omission
therefrom of a material fact pertaining solely to Phoenix necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.

     Section 3.4. NOTICE AND PAYMENT OF CLAIMS. If any Phoenix Indemnitee or
inSilicon Indemnitee (the "Indemnified Party") determines that it is or may be
entitled to indemnification under this Article III (other than in connection
with any Action subject to Section 3.5), the Indemnified Party shall deliver to
the Person from whom such indemnification is sought (the "Indemnifying Party"),
a written notice specifying, to the extent reasonably practicable, the basis for
its claim for indemnification and the amount for which the Indemnified Party
reasonably believes it is entitled to be indemnified. After the Indemnifying
Party shall have been notified of the amount for which the Indemnified Party
seeks indemnification, the Indemnifying Party shall, within 30 days after
receipt of such notice, either (i) pay the Indemnified Party such amount in cash
or other immediately available funds (or reach agreement with the Indemnified
Party as to a mutually agreeable alternative payment schedule) or (ii) object to
the claim for indemnification or the amount thereof by giving the Indemnified
Party written notice setting forth the grounds therefor. Any objection shall be
resolved in accordance with Article VI. If the Indemnifying Party does not give
such notice within such 30-day period, the Indemnifying Party shall be deemed to
have acknowledged its liability for such claim and the Indemnified Party may
exercise any and all of its rights under applicable law to collect such amount.

     Section 3.5. NOTICE AND DEFENSE OF THIRD-PARTY CLAIMS. Promptly following
the earlier of (A) receipt of written notice of the commencement by a third
party of any Action against or

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otherwise involving any Indemnified Party or (B) receipt of written information
from a third party alleging the existence of a claim against an Indemnified
Party, in either case, with respect to which indemnification may be sought
pursuant to this Agreement (a "Third-Party Claim"), the Indemnified Party shall
give the Indemnifying Party prompt written notice thereof. Failure of the
Indemnified Party to give notice as provided in this Section 3.5 shall not
relieve the Indemnifying Party of its obligations under this Agreement, except
to the extent that the Indemnifying Party is prejudiced by such failure to give
notice. Such notice shall describe the Third-Party Claim in reasonable detail.

     (a) Within 30 days after receipt of such notice, the Indemnifying Party
may by giving written notice thereof to the Indemnified Party, (i) elect to
assume the defense of such Third-Party Claim at its sole cost and expense or
(ii) object to the claim of indemnification for such Third-Party Claim
setting forth the grounds therefor. Any objection shall be resolved in
accordance with Article VI. If the Indemnifying Party does not give such
notice within such 30-day period, the Indemnifying Party shall be deemed to
have acknowledged its liability for such Third-Party Claim.

     (b) Any defense of a Third-Party Claim as to which the Indemnifying Party
has elected to assume the defense shall be conducted by counsel employed by the
Indemnifying Party and reasonably satisfactory to Phoenix in the case of Phoenix
Indemnitees and inSilicon in the case of inSilicon Indemnitees. The Indemnified
Party shall have the right to participate in such proceedings and to be
represented by counsel of its own choosing at the Indemnified Party's sole cost
and expense; PROVIDED that if the defendants or parties against which relief is
sought in any such claim include both the Indemnifying Party and one or more
Indemnified Parties and, in the reasonable judgment of Phoenix in the case of
Phoenix Indemnitees and inSilicon in the case of inSilicon Indemnitees, a
conflict of interest between such Indemnified Parties and such Indemnifying
Party exists in respect of such claim, such Indemnified Parties shall have the
right to employ one firm of counsel selected by Phoenix for Phoenix Indemnitees
or inSilicon for inSilicon Indemnitees and in that event the reasonable fees and
expenses of such separate counsel (but not more than one separate counsel
reasonably satisfactory to the Indemnifying Party) shall be paid by such
Indemnifying Party. If the Indemnifying Party assumes the defense of a
Third-Party Claim, the Indemnifying Party may settle or compromise the claim
without the prior written consent of the Indemnified Party; PROVIDED that
without the prior written consent of Phoenix in the case of Phoenix Indemnitees
and inSilicon in the case of inSilicon Indemnitees, the Indemnifying Party may
not agree to any such settlement unless as a condition to such settlement the
Indemnified Party receives a written release from any and all liability relating
to such Third-Party Claim and such settlement or compromise does not include any
remedy or relief to be applied to or against the Indemnified Party, other than
monetary damages for which the Indemnifying Party shall be responsible
hereunder.

     (c) If the Indemnifying Party does not assume the defense of a Third-Party
Claim for which it has acknowledged liability for indemnification under this
Article III, Phoenix in the case of Phoenix Indemnitees and inSilicon in the
case of inSilicon Indemnitees may pursue the defense of such Third-Party Claim
and choose one firm of counsel in connection therewith. The Indemnifying Party
is required to reimburse Phoenix or inSilicon, as the case may be, on a current
basis for its reasonable expenses of investigation, reasonable attorneys' fees
and reasonable out-of-pocket expenses incurred by Phoenix in the case of Phoenix
Indemnitees and

                                       10
<PAGE>

inSilicon in the case of inSilicon Indemnitees in defending against such
Third-Party Claim and the Indemnifying Party shall be bound by the result
obtained with respect thereto, PROVIDED that the Indemnifying Party shall not be
liable for any settlement effected without the consent of the Indemnifying
Party, which consent shall not be unreasonably withheld.

     (d) The Indemnifying Party shall pay to the Indemnified Party in cash the
amount for which the Indemnified Party is entitled to be indemnified (if any) no
later than the later of (i) the date on which the Indemnified Party makes any
payment in satisfaction (partial or otherwise) of the Third-Party Claim or (ii)
the date on which such Indemnifying Party's objection, if any, to its
responsibility for indemnification under this Article III has been resolved
pursuant to Article VI or by settlement or compromise or the final nonappealable
judgment of a court of competent jurisdiction.

     Section 3.6. INSURANCE PROCEEDS. The amount that any Indemnifying Party is
or may be required to pay to any Indemnified Party pursuant to this Article III
shall be reduced (including, without limitation, retroactively) by any insurance
proceeds or other amounts actually recovered by or on behalf of such Indemnified
Parties in reduction of the related Liability. If an Indemnified Party shall
have received the payment required by this Agreement from an Indemnifying Party
in respect of a Liability and shall subsequently actually receive insurance
proceeds, or other amounts in respect of such Liability as specified above, then
such Indemnified Party shall pay to such Indemnifying Party a sum equal to the
amount of such insurance proceeds or other amounts actually received after
deducting therefrom all of the Indemnifying Party's costs and expenses
associated with such Liability.

     Section 3.7. CONTRIBUTION. If the indemnification provided for in this
Article III is unavailable to an Indemnified Party in respect of any Liability
arising out of or related to information contained in or omitted from the
Registration Statement or the Prospectus, then the inSilicon Indemnitees, or
Phoenix Indemnitees, as the case may be, in lieu of indemnifying the Phoenix
Indemnitees or inSilicon Indemnitees, as the case may be, shall contribute to
the amount paid or payable by the Phoenix Indemnitees or inSilicon Indemnitees,
as the case may be, as a result of such Liability in such proportion as is
appropriate to reflect the relative fault of inSilicon, on the one hand, and
Phoenix, on the other hand, in connection with the statements or omissions which
resulted in such Liability. If the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information pertaining solely to Phoenix, then Phoenix shall bear any
resulting Liability; otherwise, inSilicon shall bear any resulting Liability.

     Section 3.8. SUBROGATION. In the event of payment by an Indemnifying Party
to any Indemnified Party in connection with any Third-Party Claim, such
Indemnifying Party shall be subrogated to and shall stand in the first place of
such Indemnified Party as to any events or circumstances in respect of which
such Indemnified Party may have any right or claim relating to such Third-Party
Claim. Such Indemnified Party shall cooperate with such Indemnifying Party in a
reasonable manner, and at the cost and expense of such Indemnifying Party, in
prosecuting any subrogated right or claim.

     Section 3.9. NO THIRD-PARTY BENEFICIARIES. This Article III shall inure to
the benefit of, and be enforceable by Phoenix, the Phoenix Indemnitees,
inSilicon and the inSilicon Indemnitees

                                       11
<PAGE>

and their respective successors and permitted assigns. The indemnification
provided for by this Article III shall not inure to the benefit of any other
third party or parties and shall not relieve any insurer who would otherwise be
obligated to pay any claim of the responsibility with respect thereto or, solely
by virtue of the indemnification provisions hereof, provide any subrogation
rights with respect thereto and each party agrees to waive such rights against
the other to the fullest extent permitted.

     Section 3.10. REMEDIES CUMULATIVE. The remedies provided in this Article
III shall be cumulative and shall not preclude assertion by any Indemnified
Party of any other rights or the seeking of any and all other remedies against
an Indemnifying Party. The procedures set forth in this Article III, however,
shall be the exclusive procedures governing any indemnity action brought under
this Article III or otherwise relating to Liabilities.

     Section 3.11. SURVIVAL OF INDEMNITIES. The rights and obligations of each
of Phoenix and inSilicon and their respective Indemnitees under this Article III
shall survive the sale or other transfer by it of any assets or businesses or
the assignment by it of any Liabilities.

     Section 3.12. AFTER-TAX INDEMNIFICATION PAYMENTS. Except as otherwise
expressly provided in this Agreement, the Contribution Agreement or in an
Ancillary Agreement, indemnification payments made by either party under this
Article shall give effect to, and be reduced by the value of, any and all
applicable deductions, losses, credits, offsets or other items for Federal,
state or other Tax purposes attributable to the payment of the indemnified
Liability by the Indemnified Party.

                                   ARTICLE IV

                           CERTAIN ADDITIONAL MATTERS

     Section 4.1. COMPANY OFFICERS AND BOARD OF DIRECTORS. On or prior to the
Closing Date, Phoenix shall take and shall cause inSilicon to take all actions
necessary to appoint as officers and directors of inSilicon those persons named
in the Registration Statement to constitute the officers and directors of
inSilicon on the Closing Date.

     Section 4.2. THE COMPANY CERTIFICATE OF INCORPORATION AND BYLAWS. Prior to
the Closing Date, Phoenix shall take all action necessary to cause the Company
Certificate and Company Bylaws to be amended and restated substantially in the
form attached to the Registration Statement as exhibits thereto.

     Section 4.3. INSURANCE POLICIES AND CLAIMS ADMINISTRATION.

     (a) MAINTENANCE OF INSURANCE COVERAGE PRIOR TO SEPARATION DATE. Phoenix and
inSilicon shall use reasonable efforts to maintain in full force and effect at
all times up to and including the Separation Date and for the periods set forth
in the Services and Cost-Sharing Agreement, its current property and casualty
insurance programs, including, without limitation, primary and excess general
liability, automobile, workers' compensation, property and crime insurance
policies (collectively, the "Policies" and individually, a "Policy"). inSilicon
and its subsidiaries shall retain with respect to any insured claims relating to
periods before the

                                       12
<PAGE>

Separation Date or termination of the applicable period set forth in the
Services and Cost-Sharing Agreement with respect to each such Policy (whichever
is later), all of their respective rights, benefits and privileges, if any,
under such Policies. To the extent not already provided for by the terms of a
Policy, Phoenix shall use reasonable efforts to cause inSilicon and its
subsidiaries, as appropriate, to be named as additional insureds under such
Policy in respect of Covered Claims arising or relating to periods prior to the
Separation Date or termination of the applicable period set forth in the
Services and Cost-Sharing Agreement with respect to each such Policy (whichever
is later); PROVIDED, however, that nothing contained herein shall be construed
to require Phoenix or any of its subsidiaries to pay any additional premium or
other charges in respect to, or waive or otherwise limit any of its rights,
benefits or privileges under, any such Policy to effect the naming of inSilicon
and its subsidiaries as such additional insureds except as required by the
Services and Cost-Sharing Agreement and then only to the extent the charge, if
any, is borne by inSilicon.

     (b) COMPANY RESPONSIBLE FOR ESTABLISHING INSURANCE COVERAGE ON AND AFTER
SEPARATION DATE. Except as provided under the Services and Cost-Sharing
Agreement or any other Ancillary Agreement, commencing on and as of the
Separation Date, inSilicon and each of its subsidiaries shall be responsible for
establishing and maintaining its own separate insurance programs (including,
without limitation, primary and excess general liability, automobile, workers,
compensation, property, director and officer liability, fire, crime, surety and
other similar insurance policies) for activities and claims relating to any
period on or after the Separation Date involving inSilicon or any of its
subsidiaries. Notwithstanding any other agreement or understanding to the
contrary, except as set forth in the Services and Cost-Sharing Agreement or any
such Ancillary Agreement or Section 4.3(c) with respect to claims administration
and financial administration of the Policies, neither Phoenix nor any of its
subsidiaries shall have any responsibility for or obligation to inSilicon or its
subsidiaries relating to liability and casualty insurance matters for any
period, whether before, at or after the Separation Date except to the extent set
forth in the Services and Cost-Sharing Agreement.

     (c) ADMINISTRATION AND PROCEDURE. (i) Phoenix or a subsidiary of Phoenix,
as appropriate, shall be responsible for the claims administration and financial
administration of all Policies for insured claims relating to the assets,
ownership or operation of the Business prior to the Separation Date or
termination of the applicable period set forth in the Services and Cost-Sharing
Agreement with respect to each such Policy (whichever is later); PROVIDED,
HOWEVER, that such retention by Phoenix of the Policies and the responsibility
for claims administration and financial administration of the Policies are in no
way intended to limit, inhibit or preclude any right to insurance coverage for
any insured claims under the Policies by inSilicon. Phoenix shall direct each
insurance carrier to pay to inSilicon any proceeds for the insured claims of
inSilicon or, if Phoenix receives such proceeds, it shall forward them promptly
to inSilicon. inSilicon or a subsidiary thereof, as appropriate, shall be
responsible for all administrative and financial matters relating to insurance
policies established and maintained by inSilicon and its subsidiaries for claims
relating to any period on or after the Separation Date involving inSilicon or
any of its subsidiaries.

          (ii) inSilicon shall notify Phoenix of any insured claim relating to
     inSilicon or a subsidiary thereof under one or more of the Policies, and
     inSilicon agrees to cooperate and coordinate with Phoenix concerning any
     strategy Phoenix may reasonably elect to

                                       13
<PAGE>

     pursue to secure coverage and payment for such insured claim by the
     appropriate insurance carrier. Notwithstanding the foregoing, Phoenix shall
     not be entitled to settle any insured claim relating to inSilicon or a
     subsidiary thereof without inSilicon's consent, which consent will not be
     unreasonably withheld.

          (iii) inSilicon or an appropriate subsidiary thereof shall assume
     responsibility for, and shall pay to the appropriate insurance carriers or
     otherwise, any premiums, retrospectively-rated premiums, defense costs,
     indemnity payments, deductibles, retentions or other charges, as
     appropriate (collectively, "Insurance Charges"), whenever arising, which
     shall become due and payable under the terms and conditions of any
     applicable Policy in respect of any liabilities, losses, claims, actions or
     occurrences, whenever arising or becoming known, involving or relating to
     any of the assets, businesses, operations or liabilities of inSilicon or
     any of its subsidiaries, to the extent set forth in Section 4.3(a) and any
     such charges that relate to the period after the Separation Date or, if
     later, termination of the applicable period set forth in the Services and
     Cost-Sharing Agreement with respect to each such Policy. To the extent that
     the terms of any applicable Policy provide that Phoenix or a subsidiary
     thereof, as appropriate, shall have an obligation to pay or guarantee the
     payment of any Insurance Charges, Phoenix or such subsidiary shall be
     entitled to demand that inSilicon or a subsidiary thereof make such payment
     directly to the Person entitled thereto. In connection with any such
     demand, Phoenix shall submit to inSilicon or a subsidiary thereof a copy of
     any invoice received by Phoenix or a subsidiary pertaining to such
     Insurance Charges, together with appropriate supporting documentation, if
     available. In the event that inSilicon or its subsidiary fails to pay any
     Insurance Charges when due and payable, whether at the request of the party
     entitled to payment or upon demand by Phoenix or a subsidiary of Phoenix,
     Phoenix or a subsidiary of Phoenix may (but shall not be required to) pay
     such Insurance Charges for and on behalf of inSilicon or its subsidiary
     and, thereafter, inSilicon or its subsidiary shall forthwith reimburse
     Phoenix or such subsidiary of Phoenix for such payment.

     Section 4.4. NON-SOLICITATION OF EMPLOYEES. Each party agrees not to
directly solicit or recruit the other party's employees for a period of one year
after the Separation Date if such solicitation or recruitment would be
disruptive or damaging or would interfere with the operation or business of the
other party. This prohibition on solicitation does not apply to actions taken by
a party (i) as a result of an employee's affirmative response to a general
recruitment effort carried out through a public solicitation or a general
solicitation or (ii) as a result of an employee's initiative.

                                    ARTICLE V

                              ACCESS TO INFORMATION

     Section 5.1. AGREEMENT FOR EXCHANGE OF INFORMATION. Each of Phoenix and
inSilicon agrees to provide, or cause to be provided, to each other, at any time
before or after the Separation Date, as soon as reasonably practicable after
written request therefor, any Information in the possession or under the control
of such party that the requesting party reasonably needs (i)

                                       14
<PAGE>

to comply with reporting, disclosure, filing or other requirements imposed on
the requesting party (including under applicable securities laws) by a
Governmental Authority having jurisdiction over the requesting party, (ii) for
use in any other judicial, regulatory, administrative or other proceeding or in
order to satisfy audit, accounting, claims, regulatory, litigation or other
similar requirements, (iii) to comply with its obligations under this Agreement,
the Contribution Agreement or any ancillary Agreement or (iv) in connection with
the ongoing businesses of Phoenix or inSilicon, as the case may be; provided,
however, that in the event that any party determines that any such provision of
Information could be commercially detrimental, violate any law or agreement, or
waive any attorney-client privilege, the parties shall take all reasonable
measures to permit the compliance with such obligations in a manner that avoids
any such harm or consequence.

     (a) INTERNAL ACCOUNTING CONTROLS; FINANCIAL INFORMATION. Except as provided
in the Services and Cost-Sharing Agreement, after the Separation Date, (i) each
party shall maintain in effect at its own cost and expense adequate systems and
controls for its business to the extent necessary to enable the other party to
satisfy its reporting, accounting, audit and other obligations, and (ii) each
party shall provide, or cause to be provided, to the other party and its
subsidiaries in such form as such requesting party shall request, at no charge
to the requesting party, all financial and other data and information as the
requesting party determines necessary or advisable in order to prepare its
financial statements and reports or filings with any Governmental Authority.

     (b) OWNERSHIP OF INFORMATION. Any Information owned by a party that is
provided to a requesting party pursuant to this Section 5.1 shall be deemed to
remain the property of the providing party. Unless specifically set forth
herein, nothing contained in this Agreement shall be construed as granting or
conferring rights of license or otherwise in any such Information.

     (c) RECORD RETENTION. To facilitate the possible exchange of Information
pursuant to this Section 5.1 and other provisions of this Agreement after the
Separation Date, each party agrees to use its reasonable commercial efforts to
retain all Information in their respective possession or control on the
Separation Date substantially in accordance with the policies of Phoenix as in
effect on the Separation Date. However, except as set forth in the Tax Sharing
Agreement, at any time after the Separation Date, each party may amend their
respective record retention policies at such party's discretion; PROVIDED,
however, that if a party desires to effect the amendment within three (3) years
after the Separation Date, the amending party must give thirty (30) days prior
written notice of such change in the policy to the other party to this
Agreement. No party will destroy, or permit any of its subsidiaries to destroy,
any Information that exists on the Separation Date (other than Information that
is permitted to be destroyed under the current record retention policy of
Phoenix) without first using its reasonable commercial efforts to notify the
other party of the proposed destruction and giving the other party the
opportunity to take possession of such Information prior to such destruction.

     (d) LIMITATION OF LIABILITY. No party shall have any liability to any other
party in the event that any Information exchanged or provided pursuant to this
Section 5.1 is found to be inaccurate, in the absence of willful misconduct by
the party providing such Information. No party shall have any liability to any
other party if any Information is destroyed or lost after reasonable commercial
efforts by such party to comply with the provisions of Section 5.1(c).

                                       15
<PAGE>

     (e) OTHER AGREEMENTS PROVIDING FOR EXCHANGE OF INFORMATION. The rights and
obligations granted under this Section 5.1 are subject to any specific
limitations, qualifications or additional provisions on the sharing, exchange or
confidential treatment of Information set forth in this Agreement, the
Contribution Agreement and any Ancillary Agreement.

     (f) PRODUCTION OF WITNESSES; RECORDS; COOPERATION. After the Separation
Date, except in the case of a legal or other proceeding by one party against the
other party, each party shall use its reasonable commercial efforts to make
available to the other party, upon written request, the former, current and
future directors, officers, employees, other personnel and agents of such party
as witnesses and any books, records or other documents within its control or
which it otherwise has the ability to make available, to the extent that any
such Person (giving consideration to business demands of such directors,
officers, employees, other personnel and agents) or books, records or other
documents may reasonably be required in connection with any legal,
administrative or other proceeding in which the requesting party may from time
to time be involved, regardless of whether such legal, administrative or other
proceeding is a matter with respect to which indemnification may be sought
hereunder. The requesting party shall bear all costs and expenses in connection
therewith.

     Section 5.2. AUDITORS AND AUDITS; ANNUAL AND QUARTERLY STATEMENTS AND
ACCOUNTING. Each party agrees that, for so long as Phoenix is required in
accordance with United States generally accepted accounting principles to
consolidate inSilicon's results of operations and financial position:

     (a) SELECTION OF AUDITORS. inSilicon shall not select a different
accounting firm than Ernst & Young LLP (or its successors) to serve as its (and
its subsidiaries') independent certified public accountants ("inSilicon's
Auditors") for purposes of providing an opinion on its consolidated financial
statements without Phoenix's prior written consent (which shall not be
unreasonably withheld).

     (b) DATE OF AUDITORS' OPINION AND QUARTERLY REVIEWS. inSilicon shall use
its reasonable commercial efforts to enable the inSilicon Auditors to complete
their audit such that they will date their opinion on inSilicon's audited annual
financial statements on the same date that Phoenix's independent certified
public accountants ("Phoenix's Auditors") date their opinion on Phoenix's
audited annual financial statements, and to enable Phoenix to meet its timetable
for the printing, filing and public Dissemination of Phoenix's annual financial
statements. inSilicon shall use its reasonable commercial efforts to enable the
inSilicon Auditors to complete their quarterly review procedures such that they
will provide clearance on inSilicon's quarterly financial statements on the same
date that Phoenix's Auditors provide clearance on Phoenix's quarterly financial
statements.

     (c) ANNUAL AND QUARTERLY FINANCIAL STATEMENTS. inSilicon shall provide to
Phoenix on a timely basis all Information that Phoenix reasonably requires to
meet its schedule for the preparation, printing, filing, and public
dissemination of Phoenix's annual and quarterly financial statements. Without
limiting the generality of the foregoing, inSilicon will provide all required
financial Information with respect to inSilicon and its subsidiaries to
inSilicon's Auditors in a sufficient and reasonable time and in sufficient
detail to permit inSilicon's Auditors to take all steps and perform all reviews
necessary to provide sufficient assistance to Phoenix's Auditors

                                       16
<PAGE>

with respect to Information to be included or contained in Phoenix's annual and
quarterly financial statements. Similarly, Phoenix shall provide to inSilicon on
a timely basis all Information that inSilicon reasonably requires to meet its
schedule for the preparation, printing, filing, and public dissemination of
inSilicon's annual and quarterly financial statements. Without limiting the
generality of the foregoing, Phoenix will provide all required financial
Information with respect to Phoenix and its subsidiaries to Phoenix's Auditors
in a sufficient and reasonable time and in sufficient detail to permit Phoenix's
Auditors to take all steps and perform all reviews necessary to provide
sufficient assistance to inSilicon's Auditors with respect to Information to be
included or contained in inSilicon's annual and quarterly financial statements.

     (d) IDENTITY OF PERSONNEL PERFORMING THE ANNUAL AUDIT AND QUARTERLY
REVIEWS. inSilicon shall authorize inSilicon's Auditors to make available to
Phoenix's Auditors both the personnel who performed or are performing the annual
audits and quarterly reviews of inSilicon and work papers related to the annual
audits and quarterly reviews of inSilicon, in all cases within a reasonable time
prior to inSilicon's Auditors' opinion date, so that Phoenix's Auditors are able
to perform the procedures they consider necessary to take responsibility for the
work of inSilicon's Auditors as it relates to Phoenix's Auditors' report on
Phoenix's financial statements, all within sufficient time to enable Phoenix to
meet its timetable for the printing, filing and public dissemination of
Phoenix's annual and quarterly statements. Similarly, Phoenix shall authorize
Phoenix's Auditors to make available to inSilicon's Auditors both the personnel
who performed or are performing the annual audits and quarterly reviews of
Phoenix and work papers related to the annual audits and quarterly reviews of
Phoenix, in all cases within a reasonable time prior to the Auditors' opinion
date, so that inSilicon's Auditors are able to perform the procedures they
consider necessary to take responsibility for the work of Phoenix's Auditors as
it relates to inSilicon's Auditors' report on inSilicon's statements, all within
sufficient time to enable inSilicon to meet its timetable for the printing,
filing and public dissemination of inSilicon's annual and quarterly financial
statements.

     (e) ACCESS TO BOOKS AND RECORDS. inSilicon shall provide Phoenix's internal
auditors and their designees access to inSilicon's and its subsidiaries' books
and records so that Phoenix may conduct reasonable audits relating to the
financial statements provided by inSilicon pursuant hereto as well as to the
internal accounting controls and operations of inSilicon and its subsidiaries.
Similarly, Phoenix shall provide inSilicon's internal auditors and their
designees access to Phoenix's and its subsidiaries' books and records so that
inSilicon may conduct reasonable audits relating to the financial statements
provided by Phoenix pursuant hereto as well as to the internal accounting
controls and operations of Phoenix and its subsidiaries.

     (f) NOTICE OF CHANGE IN ACCOUNTING PRINCIPLES. inSilicon shall give Phoenix
as much prior notice as reasonably practical of any proposed determination of,
or any significant changes in, its accounting estimates or accounting principles
from those in effect on the Separation Date. inSilicon will consult with Phoenix
and, if requested by Phoenix, inSilicon will consult with Phoenix's independent
public accountants with respect thereto. Phoenix shall give inSilicon as much
prior notice as reasonably practical of any proposed determination of, or any
significant changes in, its accounting estimates or accounting principles from
those in effect on the Separation Date.

                                       17
<PAGE>

     (g) CONFLICT WITH THIRD-PARTY AGREEMENTS. Nothing in Sections 5.1 and 5.2
shall require inSilicon to violate any agreement with any third parties
regarding the confidentiality of confidential and proprietary Information
relating to that third party or its business; PROVIDED, however, that in the
event that inSilicon is required under Sections 5.1 and 5.2 to disclose any such
Information, inSilicon shall use commercially reasonable efforts to seek to
obtain such customer's consent to the disclosure of such Information.

     Section 5.3. CONFIDENTIALITY; PROTECTION.

     (a) CONFIDENTIAL INFORMATION. Except as otherwise expressly provided in
this Agreement, each party and each of its subsidiaries shall hold and shall
cause its respective directors, officers, employees, agents, consultants and
advisors to hold, in strict confidence, unless compelled to disclose by judicial
or administrative process or, in the opinion of its counsel, by other
requirements of law, all Information concerning the other party (except to the
extent that such Information can be shown to have been (i) in the public domain
through no fault of such party, (ii) later lawfully acquired on a
non-confidential basis from other sources by the party to which it was
furnished, (iii) independently generated without reference to any proprietary or
confidential Information of the other party, or (iv) Information that may be
disclosed pursuant to any Ancillary Agreement). Neither party shall release or
disclose any such Information to any other Person, except its auditors,
attorneys, financial advisors, bankers and other consultants and advisors who
shall be advised of and agree to comply with the provisions of this Section 5.3.
For purposes of this Section 5.3, confidential Information of third parties that
is known to, in the possession of or acquired by a party shall be deemed
Information of that party.

     (b) PROTECTIVE ARRANGEMENTS. In the event that either party (or any of its
subsidiaries) either determines on the advice of its counsel that it is required
to disclose any information pursuant to applicable law or receives any demand
under lawful process or from any Governmental Authority to disclose or provide
information of the other party (or any of its subsidiaries) that is subject to
the confidentiality provisions hereof, such party shall notify the other party
prior to disclosing or providing such Information and shall cooperate at the
expense of the requesting party in seeking any reasonable protective
arrangements requested by such other party. Subject to the foregoing, the Person
that received such request may thereafter disclose or provide Information to the
extent required by such law (as so advised by counsel) or by lawful process or
such Governmental Authority.

     Section 5.4. MAIL. After the Separation Date, each of Phoenix and inSilicon
may receive mail and other communications properly belonging to the other.
Accordingly, at all times after the Separation Date, each of Phoenix and
inSilicon authorizes the other to receive and open all mail and other
communications received by it and not unambiguously intended for the other party
or any of the other party's officers or directors specifically in their
capacities as such, and to retain the same to the extent that they relate to the
business of the receiving party or, to the extent that they do not relate to the
business of the receiving party and do relate to the business of the other
party, or to the extent that they relate to both businesses, the receiving party
shall promptly contact the other party by telephone for delivery instructions
and such mail or other communications (or, in case the same relate to both
businesses, copies thereof) shall promptly be forwarded to the other party in
accordance with its delivery instructions. The foregoing

                                       18
<PAGE>

provisions of this Section 5.4 shall constitute full authorization to the postal
authorities and courier companies and all other persons to make deliveries to
Phoenix or inSilicon, as the case may be, addressed to either of them or to any
of their officers or directors specifically in their capacities as such. The
provisions of this Section 5.4 are not intended to and shall not be deemed to
constitute an authorization by either Phoenix or inSilicon to permit the other
to accept service of process on its behalf, and neither party is or shall be
deemed to be the agent of the other for service of process purposes or for any
other purpose.

                                   ARTICLE VI

                               DISPUTE RESOLUTION

     Section 6.1. DISPUTE RESOLUTION. Except as otherwise set forth in any
Ancillary Agreement, resolution of any and all disputes arising from or in
connection with this Agreement, whether based on contract, tort, or otherwise
(collectively, "Disputes"), shall be exclusively governed by and settled in
accordance with the provisions of this Section 6.1.

     (a) NEGOTIATION. The parties shall make a good faith attempt to resolve any
Dispute arising out of, relating to or resulting from this Agreement through
negotiation. Within thirty (30) days after notice of a Dispute is given by
either party to the other party, each party shall select a first tier
negotiating team comprised of vice president level employees of such party and
shall meet and make a good faith attempt to resolve such Dispute and shall
continue to negotiate in good faith in an effort to resolve the Dispute or
renegotiate the applicable section or provision without the necessity of any
formal proceedings. If the first tier negotiating teams are unable to agree
within thirty (30) days of their first meeting, then each party shall select a
second tier negotiating team comprised of the chief executive officers of such
party and shall meet within thirty (30) days after the end of the first thirty
(30) day negotiating period to attempt to resolve the matter. During the course
of negotiations under this Section 6.1(a), all reasonable requests made by one
party to the other for Information, including requests for copies of relevant
documents, will be honored. The specific format for such negotiations will be
left to the discretion of the designated negotiating teams but may include the
preparation of agreed upon statements of fact or written statements of position
furnished to the other party.

     (b) NON-BINDING MEDIATION. In the event that any Dispute arising out of or
related to this Agreement is not settled by the parties within fifteen (15) days
after the first meeting of the second tier negotiating teams under Section
6.1(a), the parties will attempt in good faith to resolve such Dispute by
non-binding mediation in accordance with the American Arbitration Association
Commercial Mediation Rules. The mediation shall be held within thirty (30) days
of the end of such fifteen (15) day negotiation period of the second tier
negotiating teams. Except as provided below in Section 6.1(c), no litigation for
the resolution of such dispute may be commenced until the parties try in good
faith to settle the dispute by such mediation in accordance with such rules and
either party has concluded in good faith that amicable resolution through
continued mediation of the matter does not appear likely. The costs of mediation
shall be shared equally by the parties to the mediation. Any settlement reached
by mediation shall be recorded in writing, signed by the parties, and shall be
binding on them.

                                       19
<PAGE>

     (c) PROCEEDINGS. Nothing herein, however, shall prohibit either party from
initiating litigation or other judicial or administrative proceedings if such
party would be substantially harmed by a failure to act during the time that
such good faith efforts are being made to resolve the Dispute through
negotiation or mediation. In the event that litigation is commenced under this
Section 6.1(c), the parties agree to continue to attempt to resolve any Dispute
according to the terms of Sections 6.1(a) and 6.1(b) during the course of such
litigation proceedings under this Section 6.1(c).

     (d) PAY AND DISPUTE. Except as provided herein or in any Ancillary
Agreement, in the event of any dispute regarding payment of a third-party
invoice (subject to standard verification of receipt of products or services),
the party named in a third party's invoice must make timely payment to such
third party, even if the party named in the invoice desires to pursue the
dispute resolution procedures outlined in this Section 6.1. If the party that
paid the invoice is found pursuant to this Section 6.1 to not be responsible for
such payment, such paying party shall be entitled to reimbursement, with
interest accrued at the prime interest rate announced by Bank of America NT&SA
plus one percent per annum compounded monthly for the period such amount remains
unpaid from the party found responsible for such payment.

     Section 6.2. CONTINUITY OF SERVICE AND PERFORMANCE. Unless otherwise agreed
in writing, the parties will continue to provide service and honor all other
commitments under this Agreement and each Ancillary Agreement during the course
of dispute resolution pursuant to the provisions of this Article VI with respect
to all matters not subject to such Dispute.

                                   ARTICLE VII

                       STANDSTILL; COVENANT NOT TO COMPETE

     Section 7.1. STANDSTILL. Phoenix agrees that so long as Phoenix
beneficially owns, directly or indirectly, fifty percent (50%) or more of
inSilicon's outstanding voting securities, it shall not acquire by purchases in
"brokers' transactions" (as defined in the Securities Act) or in transactions
directly with a "market maker" (as defined in the Exchange Act) during any
twelve (12-) month period shares of Common Stock that exceed two percent (2%) of
the number of shares of Common Stock outstanding at the commencement of that
period, without inSilicon's prior consent.

         Section 7.2.      NON-COMPETE.

     (a) During the "Phoenix Restricted Period," as defined below, Phoenix
agrees it will not carry on or become involved, directly or indirectly (whether
as owner, partner, agent, consultant or stockholder) in any business or activity
competitive with any business conducted by inSilicon as of the Separation Date
without the consent of inSilicon. For this purpose, the "Phoenix Restricted
Period" for any business or activity conducted by inSilicon as of the Separation
Date means the earliest of (i) November 30, 2004, (ii) the date Phoenix no
longer owns, directly or indirectly, ten percent (10%) or more of inSilicon's
outstanding voting securities and (iii) the date on which inSilicon no longer
engages in such business or activity.

                                       20
<PAGE>

     (b) During the "inSilicon Restricted Period," as defined below, inSilicon
agrees it will not carry on or become involved, directly or indirectly (whether
as owner, partner, agent, consultant or stockholder) in any business or activity
competitive with any business conducted by Phoenix as of the Separation Date
(other than the Business) without the consent of Phoenix. For this purpose, the
"inSilicon Restricted Period" for any business or activity conducted by Phoenix
as of the Separation Date means the earliest of (i) November 30, 2004, (ii) the
date Phoenix no longer owns, directly or indirectly, ten percent (10%) or more
of inSilicon's outstanding voting securities and (iii) the date on which Phoenix
no longer engages in such business or activity.

     (c) Each of Phoenix and inSilicon agrees that it will not unreasonably
withhold its consent to any request by the other to carry on or become involved
in any business or activity competitive with any business conducted by the other
as of the Separation Date, which request relates to activities which occur
following a "change in control" of the requesting party. For this purpose, a
"change of control" shall be deemed to have occurred on the earliest date on or
by which (i) the beneficial ownership of the equity securities of the affected
party on the part of any Person or group (other than Phoenix in the case of
inSilicon), together with the beneficial ownership thereof on the part of the
affiliates and/or associates of such Person or group, first equals or exceeds
fifty percent (50%) of the equity securities of the affected party or (ii) any
Person or group acquires assets of the affected party, which together with any
assets acquired from such party by any affiliates and/or associates of such
Person or group constitute fifty percent (50%) or more of the assets of the
affected party. A party shall not be deemed to be "unreasonable" in withholding
its consent if the Person acquiring control of a party competes with the party
from which consent is sought.

                                  ARTICLE VIII

                                  MISCELLANEOUS

     Section 8.1. TERMINATION. This Agreement may be terminated and/or the
Initial Public Offering may be deferred, modified or abandoned at any time prior
to the Closing Date by and in the sole discretion of the Board of Directors of
Phoenix without the approval of inSilicon. In the event of such termination, no
party hereto (or any of its respective directors or officers) shall have any
liability to any other party pursuant to this Agreement.

     Section 8.2. EXPENSES. Except as specifically provided in Services and
Cost-Sharing Agreement or in this Agreement and except for the expenses of
Phoenix that are not third party expenses, all costs and expenses incurred in
connection with the interpretation, execution, delivery and implementation of
this Agreement and with the consummation of the transactions contemplated by
this Agreement shall be paid by inSilicon. The expenses payable by inSilicon
shall include without limitation the filing, legal, accounting, printing and
other out-of-pocket expenditures in connection with (i) the preparation,
printing and filing of the Registration Statement and (ii) sale of the shares of
Common Stock in the Initial Public Offering, including, without limitation,
third party costs, fees and expenses relating to the Initial Public Offering,
and all of the reimbursable expenses of the Underwriters pursuant to the
Underwriting Agreement, and all of the costs of producing, printing, mailing and
otherwise distributing the Prospectus.

                                       21
<PAGE>

After the Closing Date, all costs and expenses that are not subject to the
Services and Cost-Sharing Agreement or any other agreement between the parties
shall be borne by the party incurring the expense.

     Section 8.3. NOTICES. All notices and communications under this Agreement
shall be in writing and any communication or delivery hereunder shall be deemed
to have been duly given when received addressed as follows:

     If to Phoenix, to:

                  411 East Plumeria Drive
                  San Jose, CA 94134
                  Attn:  General Counsel

     If to inSilicon, to:

                  411 East Plumeria Drive
                  San Jose, CA 94134
                  Attn:  General Counsel

     Any party may, by written notice so delivered to the other party, change
the address to which delivery of any notice shall thereafter be made.

     Section 8.4. AMENDMENT AND WAIVER. This Agreement may not be altered or
amended, nor may rights hereunder be waived, except by an instrument in writing
executed by the party or parties to be charged with such amendment or waiver. No
waiver of any terms, provision or condition of or failure to exercise or delay
in exercising any rights or remedies under this Agreement, in any one or more
instances shall be deemed to be, or construed as, a further or continuing waiver
of any such term, provision, condition, right or remedy or as a waiver of any
other term, provision or condition of this Agreement. Notwithstanding the
foregoing, this Agreement may not be altered or amended, nor may rights
hereunder be waived by inSilicon after the Closing Date without the affirmative
vote or written consent of a majority of the directors of inSilicon who are not
Affiliates of Phoenix.

     Section 8.5. COUNTERPARTS. This Agreement may be executed in counterparts
each of which shall be deemed an original instrument, but all of which together
shall constitute but one and the same Agreement.

     Section 8.6. GOVERNING LAW. This Agreement shall be construed in accordance
with, and governed by, the laws of the State of California, without regard to
the conflicts of law rules of such state.

     Section 8.7. ENTIRE AGREEMENT. This Agreement including the schedules and
the other agreements referenced specifically in this Agreement constitute the
entire understanding of the parties with respect to the subject matter of this
Agreement, superseding all negotiations, prior discussions and prior agreements
and understandings relating to such subject matter.

                                       22
<PAGE>

     Section 8.8. ASSIGNMENT.

     (a) No party to this Agreement shall (i) consolidate with or merge into any
Person or permit any Person to consolidate with or merge into such party (other
than a merger or consolidation in which the party is the surviving or continuing
corporation), or (ii) sell, assign, transfer, lease or otherwise dispose of, in
one transaction or a series of related transactions, all or substantially all of
its assets, unless the resulting, surviving or transferee Person expressly
assumes, by instrument in form and substance reasonably satisfactory to the
other parties, all of the obligations of the party under this Agreement.

     (b) Except as expressly provided in paragraph (a) above, neither this
Agreement nor any of the rights, interests or obligations hereunder shall be
assignable, directly or indirectly, by any party without the prior written
consent of the party, and any attempt to so assign without such consent shall be
void.

     Section 8.9. PARTIES IN INTEREST. Subject to Section 8.8, this Agreement
shall be binding upon, and shall inure to the benefit of, the parties hereto and
their respective successors and permitted assigns. Nothing contained in this
Agreement, express or implied, is intended to confer any benefits, rights or
remedies upon any person or entity other than Phoenix and inSilicon, and Phoenix
Indemnitees and inSilicon Indemnitees under Article III hereof.

     Section 8.10. TAX SHARING AGREEMENT. Notwithstanding any other provision of
this Agreement to the contrary, any and all matters relating to Taxes shall be
exclusively governed by the Tax Sharing Agreement.

     Section 8.11. EXHIBITS AND SCHEDULES. The Exhibits and Schedules shall be
construed with and as an integral part of this Agreement to the same extent as
if the same had been set forth verbatim herein.

     Section 8.12. LEGAL ENFORCEABILITY. Any provision of this Agreement which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof. Any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. Without prejudice
to any rights or remedies otherwise available to any party hereto, each party
hereto acknowledges that damages would be an inadequate remedy for any breach of
the provisions of this Agreement and agrees that the obligations of the parties
hereunder shall be specifically enforceable.

     Section 8.13. TITLES AND HEADINGS. Titles and headings to Sections herein
are inserted for convenience of reference only and are not intended to be a part
of or to affect the meaning or interpretation of this Agreement.

     Section 8.14. CONFLICTING AGREEMENTS. In the event of conflict between this
Agreement and the Contribution Agreement, the provisions of this Agreement and
shall prevail.

                                       23
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed and delivered
this Agreement as of the date first above written.

                                    PHOENIX TECHNOLOGIES LTD.

                                    By:      /s/ Linda V. Moore
                                       -----------------------------------------
                                    Name:     Linda V. Moore
                                    Title:  Vice President, General Counsel and
                                            Secretary

                                    INSILICON CORPORATION

                                    By:      /s/ David J. Power
                                       -----------------------------------------
                                    Name:    David J. Power
                                    Title:  Vice President, General Counsel

                                       24<PAGE>

                                   EXHIBIT 10.1

                             CIPHERGEN BIOSYSTEMS, INC.

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

                    SERIES E PREFERRED STOCK PURCHASE AGREEMENT

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

                                   MARCH 3, 2000

<PAGE>

                                  TABLE OF CONTENTS

<TABLE>
<CAPTION>
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<S>                                                                               <C>
SECTION 1 SALE OF SERIES E PREFERRED STOCK . . . . . . . . . . . . . . . . . . . . .1

     1.1   SALE OF SERIES E PREFERRED. . . . . . . . . . . . . . . . . . . . . . . .1

     1.2   CLOSING DATE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

     1.3   SUBSEQUENT SALE OF THE SERIES E PREFERRED . . . . . . . . . . . . . . . .1

     1.4   DELIVERY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

SECTION 2 REPRESENTATIONS AND WARRANTIES OF THE COMPANY. . . . . . . . . . . . . . .2

     2.1   ORGANIZATION AND STANDING . . . . . . . . . . . . . . . . . . . . . . . .2

     2.2   CORPORATE POWER . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

     2.3   SUBSIDIARIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

     2.4   CAPITALIZATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

     2.5   AUTHORIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

     2.6   VALIDITY OF SHARES. . . . . . . . . . . . . . . . . . . . . . . . . . . .4

     2.7   COMPLIANCE WITH OTHER INSTRUMENTS, ETC. . . . . . . . . . . . . . . . . .4

     2.8   LITIGATION, ETC . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

     2.9   REGISTRATION RIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . .5

     2.10  GOVERNMENTAL OR THIRD PARTY CONSENT, ETC. . . . . . . . . . . . . . . . .5

     2.11  OFFERING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

     2.12  FINANCIAL STATEMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . .5

     2.13  TITLE TO PROPERTIES AND ASSETS; LIENS, ETC. . . . . . . . . . . . . . . .6

     2.14  PATENTS AND TRADEMARKS. . . . . . . . . . . . . . . . . . . . . . . . . .6

     2.15  TAX RETURNS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

     2.16  NO DEFAULTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

     2.17  AGREEMENTS; ACTION. . . . . . . . . . . . . . . . . . . . . . . . . . . .7

     2.18  RELATED-PARTY TRANSACTIONS. . . . . . . . . . . . . . . . . . . . . . . .8

     2.19  PERMITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

     2.20  ENVIRONMENTAL AND SAFETY LAWS . . . . . . . . . . . . . . . . . . . . . .8

     2.21  EMPLOYEE BENEFITS PLANS; EMPLOYEES. . . . . . . . . . . . . . . . . . . .8

     2.22  INSURANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

     2.23  USE OF PROCEEDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

     2.24  MANUFACTURING AND MARKETING RIGHTS. . . . . . . . . . . . . . . . . . . .9
</TABLE>

<PAGE>

                                  TABLE OF CONTENTS
                                     (CONTINUED)

<TABLE>
<CAPTION>
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                                                                                  ----
<S>                                                                               <C>
     2.25  DISCLOSURE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

     2.26  OFFERING MEMORANDUM . . . . . . . . . . . . . . . . . . . . . . . . . . .9

SECTION 3 INVESTMENT REPRESENTATIONS . . . . . . . . . . . . . . . . . . . . . . . .9

     3.1   EXPERIENCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

     3.2   INVESTMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

     3.3   RULE 144. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

     3.4   ADEQUATE INFORMATION; NO PUBLIC MARKET. . . . . . . . . . . . . . . . . 10

SECTION 4 BREACHES OF REPRESENTATIONS, WARRANTIES AND COVENANTS. . . . . . . . . . 10

SECTION 5 CONDITIONS TO CLOSING OF PURCHASERS. . . . . . . . . . . . . . . . . . . 11

     5.1   REPRESENTATIONS AND WARRANTIES. . . . . . . . . . . . . . . . . . . . . 11

     5.2   COVENANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

     5.3   COMPLIANCE CERTIFICATE. . . . . . . . . . . . . . . . . . . . . . . . . 11

     5.4   CONSENTS, PERMITS AND WAIVERS . . . . . . . . . . . . . . . . . . . . . 11

     5.5   OPINION OF COUNSEL. . . . . . . . . . . . . . . . . . . . . . . . . . . 11

     5.6   INVESTORS RIGHTS AGREEMENT. . . . . . . . . . . . . . . . . . . . . . . 12

     5.7   PROCEEDINGS AND DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . 12

     5.8   RESTATED ARTICLES . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

     5.9   CERTIFICATE FOR SHARES OF SERIES E PREFERRED. . . . . . . . . . . . . . 12

     5.10  BLUE SKY COMPLIANCE . . . . . . . . . . . . . . . . . . . . . . . . . . 12

SECTION 6 CONDITIONS TO CLOSING OF COMPANY . . . . . . . . . . . . . . . . . . . . 12

     6.1   REPRESENTATIONS AND WARRANTIES. . . . . . . . . . . . . . . . . . . . . 12

     6.2   COVENANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

     6.3   CONSENTS, PERMITS AND WAIVERS . . . . . . . . . . . . . . . . . . . . . 13

     6.4   DELIVERY OF PURCHASE PRICE. . . . . . . . . . . . . . . . . . . . . . . 13

     6.5   EXECUTION AND DELIVERY OF DOCUMENTS . . . . . . . . . . . . . . . . . . 13

     6.6   PROCEEDINGS AND DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . 13

     6.7   RESTATED ARTICLES . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

SECTION 7 MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

     7.1   ADDITIONAL SERIES E PREFERRED . . . . . . . . . . . . . . . . . . . . . 13

     7.2   GOVERNING LAW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
</TABLE>

<PAGE>
                                  TABLE OF CONTENTS

<TABLE>
<CAPTION>
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<S>                                                                               <C>
     7.3   SURVIVAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

     7.4   SUCCESSORS AND ASSIGNS. . . . . . . . . . . . . . . . . . . . . . . . . 14

     7.5   ENTIRE AGREEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

     7.6   RIGHTS OF PURCHASERS. . . . . . . . . . . . . . . . . . . . . . . . . . 14

     7.7   NOTICES, ETC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

     7.8   EXPENSES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

     7.9   COUNTERPARTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

     7.10  SEVERABILITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

     7.11  CALIFORNIA CORPORATE SECURITIES LAW . . . . . . . . . . . . . . . . . . 15

     7.12  APPROVAL OF AMENDMENTS AND WAIVERS. . . . . . . . . . . . . . . . . . . 15

     7.13  COUNTERPARTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

     7.14  HEADINGS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
</TABLE>

<PAGE>

                             CIPHERGEN BIOSYSTEMS, INC.

                    SERIES E PREFERRED STOCK PURCHASE AGREEMENT

       THIS AGREEMENT is made as of March 3, 2000 between CIPHERGEN
BIOSYSTEMS, INC., a California corporation (the "Company"), with its
principal office at 490 San Antonio Road, Palo Alto, CA 94306, and the
purchasers (each a "Purchaser" and collectively the "Purchasers") listed on
the Schedule of Purchasers attached to this Agreement as EXHIBIT A (the
"Schedule of Purchasers").

       WHEREAS, the Company has authorized the issuance and sale pursuant to
this Agreement of up to 11,000,000 shares of its Series E Preferred Stock
(the "Series E Preferred") having the rights, preferences, privileges and
restrictions set forth in the Amended and Restated Articles of Incorporation
of the Company in the form attached to this Agreement as EXHIBIT B (the
"Restated Articles").  The shares of Series E Preferred to be sold hereunder
are collectively referred to as the "Shares."

       NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants and conditions set forth below, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
parties to this Agreement agree as follows:

                                     SECTION 1

                          SALE OF SERIES E PREFERRED STOCK

       1.1    SALE OF SERIES E PREFERRED.  Subject to the terms and
conditions hereof, each Purchaser agrees, severally, to purchase from the
Company and the Company agrees to sell and issue to each Purchaser the number
of Shares set forth opposite such Purchaser's name on the Schedule of
Purchasers at a price of $2.75 per share.

       1.2    CLOSING DATE.  The purchase and sale of the Shares is expected
to take place in one or more closings.  The initial closing of the purchase
and sale of the Shares hereunder (the "Initial Closing") shall be held at the
offices of Wilson Sonsini Goodrich & Rosati PC ("WSGR"), 650 Page Mill Road,
Palo Alto, California, 94306, on the date of this Agreement or at such other
time and place upon which the Company and a majority of the Purchasers shall
agree.

       1.3    SUBSEQUENT SALE OF THE SERIES E PREFERRED.  Subsequent closings
shall be held within 60 days from the Initial Closing at such time and place
as the Company and a majority of the Purchasers participating therein shall
agree. All such sales shall be made on the terms and conditions set forth in
this Agreement.  Each Purchaser at a subsequent Closing shall be made a party
to this Agreement as a Purchaser, the shares so acquired shall be deemed to
be sold hereunder, and the Schedule of Purchasers shall be appropriately
revised to reflect the subsequent closing.

       1.4    DELIVERY.  At the Closing, the Company will deliver to each
Purchaser a certificate representing the Shares that each Purchaser is
purchasing against payment of the

<PAGE>

purchase price therefor by (i) check payable to the order of the Company,
(ii) wire transfer of immediately available funds and/or (iii) cancellation
of indebtedness, as indicated on the Schedule of Purchasers.

                                     SECTION 2

                   REPRESENTATIONS AND WARRANTIES OF THE COMPANY

       Except as set forth in the Schedule of Exceptions attached hereto as
EXHIBIT C or in the Company's Confidential Offering Memorandum, dated
November 5, 1999, including the Schedules and Exhibits attached thereto (the
"Offering Memorandum"), the Company hereby represents and warrants to each
Purchaser as follows:

       2.1    ORGANIZATION AND STANDING.  The Company is a corporation duly
organized and validly existing under, and by virtue of, the laws of the State
of California and is in good standing under such laws.  The Company has all
requisite corporate power to own and operate its assets and to carry on its
business as presently conducted and as proposed to be conducted.  The Company
is qualified to do business as a foreign corporation in each jurisdiction in
which the failure to so qualify would have a material adverse affect on the
Company or its business or prospects (a "Material Adverse Affect").

       2.2    CORPORATE POWER.  The Company has all requisite legal and
corporate power to execute and deliver this Agreement and the Fourth Amended
and Restated Investors Rights Agreement in substantially the form attached
hereto as EXHIBIT D (the "Investors Rights Agreement") (the Agreement and the
Investor Rights Agreement are hereinafter collectively referred to as the
"Agreements"), to sell and issue the Shares under this Agreement, to issue
the Common Stock issuable upon conversion of the Shares and to carry out and
perform its obligations under the terms of the Agreements, including all
exhibits and schedules hereto and thereto.

       2.3    SUBSIDIARIES.  The Company does not own or control, directly or
indirectly, any corporation, association or business entity other than those
listed on EXHIBIT C.  Each of the Company's subsidiaries is a corporation
duly organized and validly existing under, and by virtue of, the laws of the
jurisdiction of its organization and is in good standing under such laws.
Each of the Company's subsidiaries has the requisite corporate power to own
and operate its assets and to carry on its business as presently conducted
and as proposed to be conducted.  Each of the Company's subsidiaries is
qualified to do business as a foreign corporation in each jurisdiction in
which the failure to so qualify would have a Material Adverse Effect.  All of
the Company's subsidiaries are wholly-owned by the Company.  For all other
representations and warranties contained in this Section 2, the term
"Company" shall refer to the Company and all of its subsidiaries taken as a
whole.

       2.4    CAPITALIZATION.  The authorized capital stock of the Company
consists of 60,000,000 shares of Common Stock and 32,253,644 shares of
Preferred Stock.  Of the Preferred Stock, 3,054,400 shares are designated
Series A Preferred Stock (the "Series A Preferred"), 7,265,457 shares are
designated Series B Preferred Stock (the "Series B Preferred"), 3,013,119

<PAGE>

shares are designated Series C Preferred Stock (the "Series C Preferred"),
6,920,668 shares are designated Series D Preferred Stock (the "Series D
Preferred"), and 12,000,000 shares are designated Series E Preferred.
Effective as of February 4, 2000, 15,991,127 shares of Common Stock are
issued and outstanding, 3,054,400 shares of Series A Preferred are issued and
outstanding, 6,402,457 shares of Series B Preferred are issued and
outstanding, 2,929,719 shares of Series C Preferred are issued and
outstanding, and 6,754,713 shares of Series D Preferred are issued and
outstanding.  Immediately prior to the Closing, no shares of Series E
Preferred will be issued and outstanding.  No other shares of capital stock
are outstanding.  All such issued and outstanding shares have been duly
authorized and validly issued and are fully paid and nonassessable.  The
Company has reserved the following shares of its Common Stock for issuance
from time to time as may be determined by the Company's Board of Directors
(collectively, the "Reserved Shares"): (i) 313,000 shares of the Series B
Preferred Stock (and 313,000 shares of the Common Stock issuable upon
conversion thereof) issuable upon exercise of certain warrants; (ii) 550,000
shares of the Series B Preferred (and 550,000 shares of the Common Stock
issuable upon conversion thereof) issuable upon the achievement of certain
milestones by Stanford Research Systems pursuant to an agreement between the
Company and Stanford Research Systems dated February 2, 1995; (iii) 83,400
shares of the Company's Series C Preferred Stock (and 83,400 shares of the
Common Stock issuable upon conversion thereof) issuable upon exercise of
certain warrants; (iv) 165,955 shares of the Company's Series D Preferred
Stock (and 165,955 shares of the Common Stock issuable upon conversion
thereof) issuable upon exercise of certain warrants; and (v) 2,610,389 shares
of the Company's Common Stock issuable to directors, officers or employees
of, or consultants to, the corporation pursuant to an agreement or an option
or purchase plan or another director, officer, employee or consultant stock
incentive program approved by the Board of Directors of the Company.  The
Series E Preferred has the rights, preferences and privileges set forth in
the Restated Articles.  Except for the conversion privileges of the Series E
Preferred, Series D Preferred, Series C Preferred, Series B Preferred, and
the Series A Preferred specified in the Restated Articles, the Shares
issuable under this Agreement and the Reserved Shares, there are no options,
warrants, conversion privileges or other rights presently outstanding to
purchase or otherwise acquire any authorized but unissued shares of the
Company's capital stock or other securities of the Company.  The
designations, powers, preferences, rights, qualifications, limitations and
restrictions in respect of each class and series of authorized capital stock
of the Company are as set forth in the Restated Articles.  Except as provided
in the Restated Articles, the Company has no obligation (contingent or other)
to purchase, redeem or otherwise acquire any of its capital stock or any
interest therein or to pay any dividend or make any other distribution in
respect thereof.  The Company has no knowledge of any voting agreements,
voting trusts, stockholders' agreements, proxies or other agreements or
understandings that are currently in effect or that are currently
contemplated with respect to the voting of any capital stock of the Company.
All of the outstanding securities of the Company were issued in compliance
with all applicable federal and state securities laws.

       2.5    AUTHORIZATION.  All corporate action on the part of the
Company, its officers, directors and shareholders necessary for the
authorization, execution, delivery and performance of the Agreements by the
Company, the authorization, sale, issuance and delivery of the Shares (and
the Common Stock issuable upon conversion of the Shares) and the performance
of the Company's obligations under the Agreements has been taken or will be
taken prior to the Closing.  The Agreements, when executed and delivered by
the Company, will constitute valid

<PAGE>

and binding obligations of the Company enforceable in accordance with their
terms, subject to laws of general application relating to bankruptcy,
insolvency, the relief of debtors, general equity principles, and limitations
upon rights to indemnity.

       2.6    VALIDITY OF SHARES.  The Shares, when issued in compliance with
the provisions of this Agreement, will be duly and validly issued, fully paid
and nonassessable and will be free and clear of all liens, charges,
restrictions, claims and encumbrances imposed by or through the Company.  The
Common Stock issuable upon conversion of the Shares has been duly and validly
reserved and, when issued in compliance with the provisions of this
Agreement, will be duly and validly issued, fully paid and nonassessable and
will be free and clear of all liens, charges, restrictions, claims and
encumbrances imposed by or through the Company; provided, however, that the
Shares (and the Common Stock issuable upon conversion of the Shares) may be
subject to restrictions on transfer under state and/or federal securities
laws as set forth herein.  The Shares are not subject to any preemptive
rights or rights of first refusal that have not been waived or exercised in
connection with the Closing.

       2.7    COMPLIANCE WITH OTHER INSTRUMENTS, ETC.  The Company is not,
and will not by virtue of entering into and performing the Agreements and the
transactions contemplated thereunder be, in violation of any term of its
Restated Articles or Bylaws or any term or provision of any material
mortgage, indenture, contract, agreement, instrument, judgment or decree to
which it is a party or by which it is bound, and is not, and will not by
virtue of entering into and performing the Agreements and the transactions
contemplated thereunder be, in violation of any order addressed specifically
to the Company nor, to the Company's knowledge, any order, statute, rule or
regulation applicable to the Company, other than any of the foregoing such
violations that do not, either individually or in the aggregate, have a
material adverse affect on the Company's business as presently conducted or
planned to be conducted.

       2.8    LITIGATION, ETC.  There are no actions, suits, proceedings or
investigations pending against the Company before any court or governmental
agency (nor, to the Company's knowledge, is there any overt threat thereof).

       2.9    REGISTRATION RIGHTS.  Except as set forth in the Investors
Rights Agreement, the Company is not under any obligation to register (as
defined in the Investors Rights Agreement) any of its presently outstanding
securities or any of its securities that may hereafter be issued.

       2.10   GOVERNMENTAL OR THIRD PARTY CONSENT, ETC.  No consent, approval
or authorization of or designation, declaration or filing with any
governmental authority or any other party on the part of the Company is
required in connection with the valid execution and delivery of the
Agreements, or the offer, sale or issuance of the Shares (and the Common
Stock issuable upon conversion of the Shares) or the consummation of any
other transaction contemplated thereby, except (a) filing of the Restated
Articles in the Office of the Secretary of State of the State of California,
(b) qualification (or taking such action as may be necessary to secure an
exemption from qualification, if available) of the offer and sale of the
Shares (and the Common Stock issuable upon conversion of the Shares) under
the California Corporate Securities Law and any other applicable blue sky
laws, which filing and qualification, if required, will be accomplished in a
timely manner prior to or promptly upon completion of the Closing and (c)
such filings as may be determined by counsel to the Company to be necessary
to

<PAGE>

secure an exemption from registration under the Securities Act of 1933, as
amended (the "Securities Act") which filing, if required, will be
accomplished in a timely manner prior to or promptly after completion of the
Closing.

       2.11   OFFERING.  Subject to the accuracy of the representations set
forth in Section 3 hereof, the offer, sale and issuance of the Shares
pursuant to this Agreement (and the issuance of the Common Stock to be issued
upon conversion of the Shares) (i) constitute transactions exempt from the
registration requirements of Section 5 of the Securities Act and (ii) is in
compliance with all applicable state securities laws.

       2.12   FINANCIAL STATEMENTS.  The Company has delivered to the
Purchasers its audited balance sheet at December 31, 1998 and its unaudited
balance sheet at December 31, 1999 (the "Balance Sheets").  The Balance
Sheets are complete and correct in all material respects and accurately
describe the financial condition of the Company as of December 31, 1998 and
December 31, 1999 (the "Balance Sheet Dates").  The Company has no known
material liability or obligation, absolute or contingent (individually or in
the aggregate), except as set forth in the Balance Sheets and except for
other liabilities incurred since the Balance Sheet Dates in the ordinary
course of business that are not material (individually or in the aggregate).
The Company maintains and will continue to maintain a standard system of
accounting established and administered in accordance with generally accepted
accounting principles.

       2.13   TITLE TO PROPERTIES AND ASSETS; LIENS, ETC.  The Company has
good and marketable title to its properties and assets shown in the Balance
Sheets, and has good title to all of its leasehold interests, in each case
subject to no mortgage, pledge, lien, lease, encumbrance or charge, other
than (i) the lien of current taxes not yet due and payable, and (ii) possible
minor liens and encumbrances that do not in any case materially detract from
the value of the property subject thereto or materially impair the operations
of the Company and which have not arisen otherwise than in the ordinary
course of business.

       2.14   PATENTS AND TRADEMARKS.  The Company has sufficient title and
ownership of all patents, trademarks, service marks, trade names, copyrights,
trade secrets, information, proprietary rights and processes (collectively
"Proprietary Information"), or believes it has the ability to acquire valid
licenses to such Proprietary Information on reasonable terms, as necessary
for its business as now conducted and as proposed to be conducted without any
conflict with or infringement of the rights of others.  There are no
outstanding options, licenses, or agreements of any kind relating to the
foregoing, nor is the Company bound by or a party to any options, licenses or
agreements of any kind with respect to the patents, trademarks, service
marks, trade names, copyrights, trade secrets, licenses, information,
proprietary rights and processes of any other person or entity.  The Company
is not aware of any impropriety with regard to the granting of any licenses
of Proprietary Information to the Company.  The Company has not received any
written or other communications alleging that the Company has violated or
infringed or that the Company would, by conducting its business as proposed,
violate or infringe any of the patents, trademarks, service marks, trade
names, copyrights or trade secrets or other proprietary rights of any other
person or entity.  No claim is pending or, to the Company's knowledge,
threatened to the effect that any such Proprietary Information owned or
licensed by the Company, or which the Company has the right to use, is
invalid or unenforceable by the company, and, to the Company's knowledge,
there is no basis for any such claim.  Except

<PAGE>

pursuant to the terms of the Proprietary Information and Inventions
Agreements entered into between the Company and each of its employees and/or
consultants (the "Proprietary Information and Inventions Agreement"), there
are no agreements, understandings, instruments, or contracts to which the
Company is a party or by which it is bound that involve the license of any
patent, copyright, trade secret or other similar proprietary right to or from
the Company.

       2.15   TAX RETURNS.  The Company has accurately prepared and timely
filed all federal, state and other tax returns which are required to be filed
and has timely paid all taxes covered by such returns which have become due
and payable.

The Company has not been advised that any of its returns, federal, state or
other, have been or are being audited as of the date hereof.  The Company is
not delinquent in taxes or assessments and has no tax deficiency proposed or
assessed and no waiver of the statute of limitations and assessment or
collections.

       2.16   NO DEFAULTS.  The Company has, and, to the Company's knowledge,
each other party thereto has in all material respects, performed all material
obligations required to be performed by it to date and is not in default
under any of the contracts, loans, notes, mortgages, indentures, licenses,
security agreements, agreements, leases, documents, commitments or other
arrangements to which it is a party or by which it is otherwise bound, except
for such defaults which in the aggregate would not have a Material Adverse
Effect, and no event or condition has occurred which, with the lapse of time
or the giving of notice, or both, would constitute such a default.

       2.17   AGREEMENTS; ACTION.

              (a)    Except for agreements explicitly contemplated by the
Agreements, there are no material agreements, understandings or proposed
transactions between the Company and any of its officers, employees,
directors, affiliates, or any affiliate thereof.

              (b)    There are no material agreements, understandings,
instruments, contracts, proposed transactions, judgments, orders, writs or
decrees to which the Company is a party or by which it is bound which may
involve (i) obligations (contingent or otherwise) of, or payments to the
Company in excess of $50,000 individually or $500,000 in the aggregate, or
(ii) provisions restricting or affecting the development, manufacture of
distribution of the Company's products or services.

              (c)    The Company has not (i) declared or paid any dividends,
or authorized or made any distribution upon or with respect to any class or
series of its capital stock, (ii) incurred any indebtedness for money
borrowed or any other liabilities individually in excess of $50,000 or, in
the case of indebtedness and/or liabilities individually less than $50,000,
in excess of $250,000 in the aggregate, (iii) made any loans or advances to
any person, other than ordinary advances for travel expenses, or (iv) sold,
exchanged or otherwise disposed of any of its material assets or rights,
other than the sale of its inventory or replacement of equipment in the
ordinary course of business.

              (d)    The Company has not engaged in the past three months in
any discussion (i) with any representative of any corporation or corporations
regarding the consolidation or merger of the Company with or into any such
corporation or corporations, (ii) with any

<PAGE>

corporation, partnership, association or other business entity or any
individual regarding the sale, conveyance or disposition of all or
substantially all of the assets of the Company or a transaction or series of
related transactions in which more than fifty percent (50%) of the voting
power of the Company is disposed of, or (iii) regarding any other similar
form of acquisition, liquidation, dissolution or winding up of the Company.

       2.18   RELATED-PARTY TRANSACTIONS.  Except as disclosed in the
Offering Memorandum, no employee, officer, or director of the Company or
member of his or her immediate family is indebted to the Company, nor is the
Company indebted (or committed to make loans or extend or guarantee credit)
to any of them, other than with respect to accrued salaries and vacation
payable to employees and officers of the Company.  To the Company's
knowledge, except as disclosed in the Offering Memorandum, none of such
persons has any direct or indirect ownership interest in any firm or
corporation with which the Company is affiliated or with which the Company
has a business relationship, or any firm or corporation that competes with
the Company, except that employees, officers, or directors of the Company and
members of their immediate family may own stock in publicly traded companies
that may compete with the Company.  No member of the immediate family of any
officer or director of the Company is directly interested in any material
contract with the Company.

       2.19   PERMITS.  The Company has all franchises, permits, licenses and
any similar authority necessary for the conduct of its business as now being
conducted by it, the lack of which would materially and adversely affect the
business, properties, prospects or financial condition of the Company and
believes it can obtain, without undue burden or expense, any similar
authority for the conduct of its business as planned to be conducted.  The
Company is not in default in any material respect under any of such
franchises, permits, licenses, or other similar authority.

       2.20   ENVIRONMENTAL AND SAFETY LAWS.  To the best of its knowledge,
the Company is not in violation of any applicable statute, law, or regulation
relating to the environment or occupational health and safety, and to the
best of its knowledge, no material expenditures are or will be required in
order to comply with any such existing statute, law, or regulation.

       2.21   EMPLOYEE BENEFITS PLANS; EMPLOYEES.  The Company does not have
any Employee Benefit Plan as defined in the Employee Retirement Income
Security Act of 1974 ("ERISA").  The Company does not have any knowledge as
to any intentions of any key employee or any group of employees to leave the
employ of the Company. The Company has complied in all material respects with
all applicable laws relating to the employment of labor, including provisions
relating to wages, hours, equal opportunity, collective bargaining and the
payment of social security and other taxes and ERISA.

       2.22   INSURANCE.  The Company holds valid policies covering insurance
in the amounts and type that the Company reasonably believes is appropriate
and customary for companies in the same or similar businesses to that of the
Company or otherwise required to be maintained by it.

<PAGE>

       2.23   USE OF PROCEEDS.  The Company will use the proceeds from the
sale of the Shares for the purposes set forth in the Offering Memorandum.

       2.24   MANUFACTURING AND MARKETING RIGHTS.  The Company has not
granted rights to manufacture, produce, assemble, license, market or sell its
products to any other person and is not bound by any agreement that affects
the Company's exclusive right to develop, manufacture, assemble, distribute,
market or sell it products.

       2.25   DISCLOSURE.  The Company has fully provided each Purchaser with
all of the information which such purchaser has requested for deciding
whether to purchase the Shares.  Neither the Agreements nor any other
statements or certificates made or delivered in connection herewith or
therewith contains any untrue statement of a material fact or omits to state
a material fact necessary to make the statements herein or therein not
misleading, except that with respect to the financial projections and
forecasts delivered to such Purchaser the Company represents only that such
projection and forecasts were prepared in good faith and on what the Company
believes is a reasonable basis.

       2.26   OFFERING MEMORANDUM.  Nothing has come to the attention of the
Company that would cause it to believe that the Offering Memorandum contained
or contains a false or misleading statement of a material fact or omits to
state any material fact necessary in order to make the statements made in the
Offering Memorandum, in light of the circumstances under which they were
made, not misleading.  There is no fact known to the Company which is not in
the Offering Memorandum and which materially and adversely affects the
assets, properties, liabilities, business, affairs, results of operations,
condition (financial or otherwise) or prospects of the Company.

                                    SECTION 3

                           INVESTMENT REPRESENTATIONS

       Each Purchaser hereby represents and warrants to the Company as
follows:

       3.1    EXPERIENCE.  Such Purchaser (other than Purchasers who are
executive officers or directors of the Company, if applicable) has knowledge
and experience in financial and business matters as to be capable of
evaluating the merits and risks of Purchaser's prospective investment in the
Shares.

       3.2    INVESTMENT.  Such Purchaser is acquiring the Shares (and any
Common Stock issuable upon conversion of the Shares) for investment for its
own account and not with the view to, or for resale in connection with, any
distribution thereof.  Such Purchaser understands that the Shares (and any
Common Stock issuable upon conversion of the Shares) to be purchased will not
be registered under the Securities Act on the grounds that the offering and
sale of securities contemplated by this Agreement are exempt from
registration pursuant to Section 4(2) of the Securities Act, and that the
Company's reliance upon such exemption is predicated upon such Purchaser's
representations set forth in this Agreement.

<PAGE>

       3.3    RULE 144.  Such Purchaser acknowledges that the Shares must be
held indefinitely unless subsequently registered under the Securities Act or
an exemption from such registration is available.  Such Purchaser is aware of
the provisions of Rule 144 promulgated under the Securities Act which permits
limited resale of shares purchased in a private placement subject to the
satisfaction of certain conditions, including, among other things the
existence of a public market for the shares, the availability of certain
current public information about the Company, the resale occurring not less
than one year after a party has purchased and paid for the securities to be
sold, the sale being through a "broker's transaction" or in transactions
directly with a "market maker" (as provided by Rule 144(f)) and the number of
shares being sold during any three-month period not exceeding specified
limitations.  Such Purchaser is aware that the conditions for resale set
forth in Rule 144 have not been satisfied and that the Company has no plan to
satisfy these conditions in the foreseeable future.

       3.4    ADEQUATE INFORMATION; NO PUBLIC MARKET.  Such Purchaser
represents that:  (i) such Purchaser has received all the information it has
requested from the Company and considers necessary or appropriate for
deciding whether to purchase the Shares; (ii) such Purchaser has the ability
to bear the economic risks of such Purchaser's prospective investment; (iii)
such Purchaser understands that no public market currently exists for any of
the Company's securities, and that the Company has made no assurances that a
public market will ever exist for the Shares and (iv) such Purchaser is able,
without materially impairing its financial condition, to hold the Shares for
an indefinite period of time and to suffer complete loss of its investment.

                                  SECTION 4

              BREACHES OF REPRESENTATIONS, WARRANTIES AND COVENANTS

       4.1    The representations and warranties, covenants and agreements of
the Company and the Purchasers contained in the Agreements or in any document
or certificate delivered pursuant hereto or in connection herewith shall
survive, and shall continue in effect following, the execution and delivery
of the Agreements, the closings hereunder and thereunder, any investigation
at any time made by the Purchasers or on their behalf or by any other person,
the issuance, sale and delivery of the Shares, any disposition thereof and
any payment, conversion or cancellation of the Shares, provided, however,
that Section 2 hereof shall terminate when there are no longer any shares of
Series E Preferred outstanding.  All statements as to factual matters
contained in any certificate or other instrument delivered by or on behalf o
the Company pursuant hereto in connection with the transactions contemplated
hereby shall be deemed to be representations and warranties by the Company
hereunder solely as of the date of such certificate or instrument.

       4.2    The Company agrees to indemnify and hold the Purchasers
harmless from and against and will pay to the Purchasers the full amount of
any loss, damage, liability or expense (including amounts paid in settlement
and attorneys' fees and expenses) to any Purchaser resulting either directly
or indirectly from any breach of the representations, warranties, covenants
or agreements of the Company contained in the Agreements, or in any
certificate delivered to the Purchasers pursuant hereto or in connection
herewith, PROVIDED, HOWEVER, in no event shall the Company be liable for any
amount in excess of the proceeds received by the Company from the sale of the
shares of Series E Preferred.

<PAGE>

                                   SECTION 5

                      CONDITIONS TO CLOSING OF PURCHASERS

       The Purchasers' obligation to purchase the Shares at the Closing is
subject to the fulfillment to its satisfaction on or prior to the Closing of
the following conditions:

       5.1    REPRESENTATIONS AND WARRANTIES.  The representations and
warranties of the Company contained in Section 2 shall be true on and as of
the Closing with the same effect as though such representations and
warranties had been made on and as of the date of the Closing.

       5.2    COVENANTS.  All covenants, agreements and conditions contained
in this Agreement to be performed by the Company on or prior to the Closing
shall have been performed or complied with in all material respects.

       5.3    COMPLIANCE CERTIFICATE.  The Company shall have delivered on
the Closing a certificate signed by an officer of the Company certifying that
the conditions specified in Sections 5.1 and 5.2 have been fulfilled.

       5.4    CONSENTS, PERMITS AND WAIVERS.  The Company shall have obtained
any and all consents, permits and waivers necessary or appropriate for
consummation of the transactions contemplated by the Agreements (except for
such as may properly be obtained subsequent to the Closing).

       5.5    OPINION OF COUNSEL.  The Purchasers shall have received from
Wilson Sonsini Goodrich & Rosati, counsel for the Company, an opinion in the
form of EXHIBIT E attached to this Agreement.

       5.6    INVESTORS RIGHTS AGREEMENT.  The Company, the Purchasers and
the holders of Common Stock named therein shall have entered into the
Investors Rights Agreement.

       5.7    PROCEEDINGS AND DOCUMENTS.  All corporate and other proceedings
in connection with the transactions contemplated at the Closing and all
documents incident thereto shall be reasonably satisfactory in form and
substance to Purchasers' special counsel.

       5.8    RESTATED ARTICLES.  The Restated Articles shall have been filed
with the Secretary of State of the State of California in the form of EXHIBIT
B hereto.

       5.9    CERTIFICATE FOR SHARES OF SERIES E PREFERRED.  The Purchasers
shall concurrently receive the certificates for the Shares purchased by each
of them.

       5.10   BLUE SKY COMPLIANCE.  The Company shall have complied with and
be effective under all state securities or Blue Sky laws applicable to the
offer and sale of the Shares to the Investors at the Closing

<PAGE>

                                     SECTION 6

                          CONDITIONS TO CLOSING OF COMPANY

       The Company's obligation to issue and sell the Series E Preferred at
the Closing is subject to the fulfillment of the following conditions:

       6.1    REPRESENTATIONS AND WARRANTIES.  The representations and
warranties of the Purchasers contained in Section 3 shall be true on and as
of the Closing with the same effect as though such representations and
warranties had been made on and as of the date of the Closing.

       6.2    COVENANTS.  All covenants, agreements and conditions contained
in this Agreement to be performed by Purchasers on or prior to the Closing
shall have been performed or complied with in all respects.

       6.3    CONSENTS, PERMITS AND WAIVERS.  The Company shall have obtained
any and all consents, permits and waivers necessary or appropriate for
consummation of the transactions contemplated by the Agreements (except for
such as may properly be obtained subsequent to the Closing).

       6.4    DELIVERY OF PURCHASE PRICE.  The Purchasers shall have
delivered the purchase price for the Shares as provided for under Section 1.

       6.5    EXECUTION AND DELIVERY OF DOCUMENTS.  Each Purchaser shall have
executed and delivered the Investors Rights Agreement and such other
documents and/or certificates as are required or contemplated by this
Agreement or as reasonably requested by the Company.

       6.6    PROCEEDINGS AND DOCUMENTS.  All corporate and other proceedings
in connection with the transactions contemplated at the Closing and all
documents incident thereto shall be reasonably satisfactory in form and
substance to the Company's counsel, and the Company shall have received all
such counterpart original and certified or other copies of such documents as
the Company may reasonably request.

       6.7    RESTATED ARTICLES.  The Restated Articles shall have been filed
with the Secretary of State of the State of California in the form of EXHIBIT
B hereto.

                                     SECTION 7

                                   MISCELLANEOUS

       7.1    ADDITIONAL SERIES E PREFERRED.  The Company shall not issue any
additional shares of Series E Preferred beyond the Shares to be sold
hereunder without first obtaining the approval of the Board of Directors.

       7.2    GOVERNING LAW.  This Agreement shall be governed by the laws of
the State of California as applicable to contracts entered into and performed
entirely within the State of California.

<PAGE>

       7.3    SURVIVAL.  The representations, warranties, covenants and
agreements made herein shall survive any investigation made by Purchasers and
the closing of the transactions contemplated hereby.

       7.4    SUCCESSORS AND ASSIGNS.  Except as otherwise provided herein,
the provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors and administrators of the parties
hereto, provided, however, that the rights of Purchasers to purchase the
Shares shall not be assignable without the consent of the Company and
provided further that the Company may not assign any of its rights, duties or
obligations under this Agreement without the written consent of the
Purchasers except in the case of a merger, acquisition or consolidation of
the Company in which case such consent shall not be required.

       7.5    ENTIRE AGREEMENT.  This Agreement and the other documents
delivered pursuant hereto constitute the full and entire understanding and
agreement between the parties with regard to the subjects hereof and thereof.

       7.6    RIGHTS OF PURCHASERS.  Each holder of the Series E Preferred
(and Common Stock issued upon conversion of the Series E Preferred) shall
have the absolute right to exercise or refrain from exercising any right or
rights that such holder may have by reason of this Agreement or ownership of
any Series E Preferred, including without limitation the right to consent to
the waiver of any obligation of the Company under this Agreement and to enter
into an agreement with the Company for the purpose of modifying this
Agreement or any agreement affecting any such modification, and such holder
shall not incur any liability to any other holder or holders of Series E
Preferred with respect to exercising or refraining from exercising any such
right or rights.

       7.7    NOTICES, ETC.  All notices and other communications required or
permitted hereunder shall be in writing and shall be mailed by registered or
certified mail, postage prepaid, or otherwise delivered by hand or by
messenger, addressed (a) if to the Purchasers, to each Purchaser's address
set forth below or at such other address as shall have been furnished to the
Company in writing by such Purchaser or (b) if to the Company, one copy shall
be sent to its address set forth above and addressed to the attention of the
President, and another copy shall be sent to Wilson Sonsini Goodrich &
Rosati, 650 Page Mill Road, Palo Alto, California 94304, attention: Michael
J. O'Donnell, Esq., or at such other address or addresses as the Company
shall have furnished in writing to the Purchasers.  All notices and other
communications mailed pursuant to the provisions of this Section 7.6 shall be
deemed delivered three days after being mailed.

       7.8    EXPENSES.  Each party to this Agreement shall bear its own
expenses and legal fees incurred by it with respect to this Agreement and all
related transactions and agreements.

       7.9    COUNTERPARTS.  This Agreement may be executed in counterparts,
each of which shall be enforceable against the party actually executing such
counterpart, and which together shall constitute one instrument.

       7.10   SEVERABILITY.  In the event that any provision of this
Agreement becomes or is declared by a court of competent jurisdiction to be
illegal, unenforceable or void, this Agreement

<PAGE>

shall continue in full force and effect without said provision; provided that
no such severability shall be effective if it materially changes the economic
benefit of this Agreement to any party.

       7.11   CALIFORNIA CORPORATE SECURITIES LAW.  The sale of the
securities which are the subject of this Agreement has not been qualified
with the Commissioner of corporations of the state of California, and the
issuance of such securities or the payment or receipt of any part of the
consideration therefor prior to such qualification, if required by law, is
unlawful.  The rights of all parties to this agreement are expressly
conditioned upon such qualification being obtained, if required by law.

       7.12   APPROVAL OF AMENDMENTS AND WAIVERS.  Any term of this agreement
may be amended or terminated and the observance of any term of this Agreement
may be waived (either generally or in a particular instance and either
retroactively or prospectively) with the written consent of the Company and
the holders of a majority of the outstanding Series E Preferred and Common
Stock issued upon conversion thereof, excluding from the determination of
such a majority (both in determining the total number of such shares
outstanding and the number of such shares consenting or not consenting) all
shares previously disposed of by Purchasers or their transferees pursuant to
one or more registration statements under the Securities Act or pursuant to
Rule 144 thereunder.  Any amendment, termination or waiver effected in
accordance with this section shall be binding upon each holder of any
securities issued pursuant to this Agreement (including securities into which
such securities have been converted or exchanged), each future holder of any
or all such securities and the Company.

       7.13   COUNTERPARTS.  This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

       7.14   HEADINGS. The headings of the sections of this Agreement are for
convenience and shall not by themselves determine the interpretation of this
Agreement.

<PAGE>

       The foregoing Agreement is hereby executed as of the date first above
written.

THE COMPANY:

CIPHERGEN BIOSYSTEMS, INC.

Name:
     -----------------------------

Title:
      ----------------------------

        SIGNATURE PAGE TO SERIES E PREFERRED STOCK PURCHASE AGREEMENT

<PAGE>

THE INVESTORS:

ATLAS VENTURE FUND V,L.P.

By:  Atlas Venture Associates V, L.P.
          its general partner
By:  Atlas Venture Associates V, Inc.
          Its general partner

--------------------------------
Vice President

ATLAS VENTURE PARALLEL FUND V-A.C.V.
By:  Atlas Venture Associates V, L.P.
          its general partner
By:  Atlas Venture Associates V, Inc.
          Its general partner

--------------------------------
Vice President

ATLAS VENTURE PARALLEL FUND V-B C.V.
By:  Atlas Venture Associates V, L.P.
          its general partner
By:  Atlas Venture Associates V, Inc.
          Its general partner

--------------------------------
Vice President

ATLAS VENTURE ENTREPRENEURS' FUND V,L.P.
By:  Atlas Venture Associates V, L.P.
          its general partner
By:  Atlas Venture Associates V, Inc.
          Its general partner

--------------------------------
Vice President

        SIGNATURE PAGE TO SERIES E PREFERRED STOCK PURCHASE AGREEMENT

<PAGE>

MORGAN STANLEY DEAN WITTER
VENTURE PARTNERS IV, L.P.

By:    MSDW VENTURE PARTNERS IV, LLC,
   as General Partner

By:  MSDW VENTURE PARTNERS IV, INC.,
   as Member

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

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

ESSEX PRIVATE PLACEMENT FUND III - A, Limited Partnership
By:  Essex Investment Management Company, LLC its General Partner

By:
   -----------------------------

Title:
      --------------------------

ESSEX PRIVATE PLACEMENT FUND III - B, Limited Partnership
By:  Essex Investment Management Company, LLC its General Partner

By:
   -----------------------------

Title:
      --------------------------

ORBIMED ADVISORS, LLC

By:
   -----------------------------

Title:
      --------------------------

        SIGNATURE PAGE TO SERIES E PREFERRED STOCK PURCHASE AGREEMENT

<PAGE>

AP ANLAGE & Private Bank AG

By:
   -----------------------------

Title:
      --------------------------

CLARIDEN BANK. a CREDIT SUISSE GROUP company

By:
   -----------------------------

Title:
      --------------------------

AMADEUS CAPITAL PARTNERS LIMITED

By:
   -----------------------------

Title:
      --------------------------

PENTECH FINANCIAL SERVICES, INC.

By:
   -----------------------------

Title:
      --------------------------

CHINA DEVELOPMENT INDUSTRIAL BANK INC.

By:
   -----------------------------

Title:
      --------------------------

FIRST BIO VENTURE CAPITAL CORPORATION of Cheng Xin Venture Capital Corp

By:
   -----------------------------

Title:
      --------------------------

        SIGNATURE PAGE TO SERIES E PREFERRED STOCK PURCHASE AGREEMENT

<PAGE>

CENTRAL INVESTMENT HOLDING (B.V.I.) CO., LTD.

By:
   -----------------------------

Title:
      --------------------------

GRAND CAPITAL INTERNATIONAL LIMITED of Bank SinoPac

By:
   -----------------------------

Title:
      --------------------------

MDS, INC.

By:
   -----------------------------

Title:
      --------------------------

S. R. ONE, LIMITED

By:
   -----------------------------

Title:
      --------------------------

MDS LIFE SCIENCES TECHNOLOGY BARBADOS INVESTMENT TRUST

By:
   -----------------------------

Title:
      --------------------------

MDS LIFE SCIENCES TECHNOLOGY FUND LIMITED PARTNERSHIP,
by its General Partner, MDS Life Sciences Technology Fund (GP) Inc.

By:
   -----------------------------

Title:
      --------------------------

            SIGNATURE PAGE TO SERIES E PREFERRED STOCK PURCHASE AGREEMENT

<PAGE>

MDS LIFE SCIENCES TECHNOLOGY FUND USA, L.P.
by its General Partner, MDS Capital USA (GP) Inc.

By:
   -----------------------------

Title:
      --------------------------

THE HEALTH CARE AND BIOTECHNOLOGY VENTURE FUND
by its Manager, MDS Capital Corp

By:
   -----------------------------

Title:
      --------------------------

STANFORD RESEARCH SYSTEMS

By:
   -----------------------------

Title:
      --------------------------

WILLIAM R. GREEN

By:
   -----------------------------

Title:
      --------------------------

JAMES AND LINDA GINSBURG

By:
   -----------------------------

Title:
      --------------------------

FALCON TECHNOLOGY PARTNERS, L.P.

By:
   -----------------------------

Title:
      --------------------------

            SIGNATURE PAGE TO SERIES E PREFERRED STOCK PURCHASE AGREEMENT

<PAGE>

FORWARD VENTURES II, L.P.

By:
   -----------------------------

Title:
      --------------------------

ICNA, LTD.

By:
   -----------------------------

Title:
      --------------------------

JOHN A. YOUNG, TRUSTEE for the Young
       Family Trust

By:
   -----------------------------

Title:
      --------------------------

DIANA K. YOUNG

By:
   -----------------------------

Title:
      --------------------------

GREGORY S. YOUNG

By:
   -----------------------------

Title:
      --------------------------

            SIGNATURE PAGE TO SERIES E PREFERRED STOCK PURCHASE AGREEMENT

<PAGE>

JOHN PETER YOUNG

By:
   -----------------------------

Title:
      --------------------------

HLM/ CB FUND L.P.

By:
   -----------------------------

Title:
      --------------------------

TURTLE & COMPANY c/o Nuland & Arshad, Inc.

By:
   -----------------------------

Title:
      --------------------------

HOOVER ASSOCIATES

By:
   -----------------------------

Title:
      --------------------------

THE MACKOWSKI FAMILY TRUST
        c/o Mackowski & Shepler

By:
   -----------------------------

Title:
      --------------------------

            SIGNATURE PAGE TO SERIES E PREFERRED STOCK PURCHASE AGREEMENT

<PAGE>

WATERVIEW TRUST

By:
   -----------------------------

Title:
      --------------------------

JOHNATHAN J. KENT

By:
   -----------------------------

Title:
      --------------------------

DANIEL VAPNEK

By:
   -----------------------------

Title:
      --------------------------

GUARANTEE TRUST COMPANY FBO
        Lenita L. Rich IRA, Dated 8-2-91, No. 20186123 BT Alex Brown

By:
   -----------------------------

Title:
      --------------------------

ONE AND COMPANY
       as Nominee for Welch & Forbes c/o Charles Haydock

By:
   -----------------------------

Title:
      --------------------------

            SIGNATURE PAGE TO SERIES E PREFERRED STOCK PURCHASE AGREEMENT

<PAGE>

DEAN V. AMBROSE

By:
   -----------------------------

Title:
      --------------------------

EDWARD O. ANSELL

By:
   -----------------------------

Title:
      --------------------------

ROBERT SHEPLER c/o Mackowski & Shepler

By:
   -----------------------------

Title:
      --------------------------

PETER F. DRAKE c/o Prudential Vector Healthcare

By:
   -----------------------------

Title:
      --------------------------

ROBERT AND LORI LUTHER

By:
   -----------------------------

Title:
      --------------------------

            SIGNATURE PAGE TO SERIES E PREFERRED STOCK PURCHASE AGREEMENT

<PAGE>

IKIKO CORPORATION c/o Nuland & Arshad, Inc.

By:
   -----------------------------

Title:
      --------------------------

ANTHONY J. SINSKEY c/o Department of Biology

By:
   -----------------------------

Title:
      --------------------------

R. ANGUS WEST c/o The Boston Family Office. L.L.C.

By:
   -----------------------------

Title:
      --------------------------

MICHAEL G. AND OLWEN PAGE c/o Prudential Vector Healthcare

By:
   -----------------------------

Title:
      --------------------------

ROBERT A. SHAW AND MAUREEN MCLAUGHLIN, Trustees UTD 12-14-90

By:
   -----------------------------

Title:
      --------------------------

            SIGNATURE PAGE TO SERIES E PREFERRED STOCK PURCHASE AGREEMENT

<PAGE>

                                     EXHIBIT A

                       SCHEDULE OF PURCHASERS (FIRST CLOSING)

<TABLE>
<CAPTION>
 NAME AND ADDRESS OF PURCHASER                                                        NUMBER OF SHARES            AMOUNT
<S>                                                                                   <C>                      <C>
 ATLAS VENTURE FUND V,L.P.                                                               3,001,351             $8,253,715.25
 Attn:  Jean-Francois Formela, M.D.
 General Partner
 222 Berkeley Street
 Boston, MA 02116
 Phone:  617-859-9290 ext. 230
 Fax:  617-859-9292
 Jfformela@atlasventures.com

 ATLAS VENTURE PARALLEL FUND V-A.C.V.                                                     372,815              $1,025,241.25
 Attn:  Jean-Francois Formela, M.D.
 General Partner
 222 Berkeley Street
 Boston, MA 02116
 Phone:  617-859-9290 ext. 230
 Fax:  617-859-9292
 Jfformela@atlasventures.com

 ATLAS VENTURE PARALLEL FUND V-B C.V.                                                     372,815              $1,025,241.25
 Attn:  Jean-Francois Formela, M.D.
 General Partner
 222 Berkeley Street
 Boston, MA 02116
 Phone:  617-859-9290 ext. 230
 Fax:  617-859-9292
 Jfformela@atlasventures.com

 ATLAS VENTURE ENTREPRENEURS' FUND V,L.P.                                                  49,960                $137,390
 Attn:  Jean-Francois Formela, M.D.
 General Partner
 222 Berkeley Street
 Boston, MA 02116
 Phone:  617-859-9290 ext. 230
 Fax:  617-859-9292
 Jfformela@atlasventures.com

 MORGAN STANLEY VENTURES                                                                 1,898,470             $5,220,792.50
 Attn:  Gary M. Stein
 Vice President
 Venture Partners
 1221 Avenue of the Americas
 New York, NY 10020
 Phone:  212-762-6709
 Fax:  212-762-8424
 Gary.stein@msdw.com
 Steing@ms.com

<PAGE>

<CAPTION>
 NAME AND ADDRESS OF PURCHASER                                                        NUMBER OF SHARES            AMOUNT
<S>                                                                                   <C>                      <C>
 ESSEX INVESTMENT MANAGEMENT                                                          545,455                  $1,500,001.25
 Attn:  Susan Stickles
 125 High St., 29th Fl.
 Boston, MA 02110
 Phone:  617-342-3200
 Sstickells@essexinvest.com

 WINCHESTER GLOBAL TRUST COMPANY LIMITED AS TRUSTEE FOR CADUCEUS CAPITAL TRUST            145,375               $399,781.25
 Orbimed Advisors, LLC
 Attn:  Carl L. Gordon, Ph. D., CFA
 General Partner
 767 Third Avenue, 6th Floor
 New York, NY 10017-2023
 Phone:  212-739-6400
 Fax:  212-739-6444
 Gordonc@orbimed.com

 CADUCEUS CAPITAL II. L.P.                                                                 63,761               $175,342.75
 Orbimed Advisors, LLC
 Attn:  Carl L. Gordon, Ph. D., CFA
 General Partner
 767 Third Avenue, 6th Floor
 New York, NY 10017-2023
 Phone:  212-739-6400
 Fax:  212-739-6444
 Gordonc@orbimed.com

 PW EUCALYPTUS FUND, LLC                                                                  148,000               $407,000.00
 Orbimed Advisors, LLC
 Attn:  Carl L. Gordon, Ph. D., CFA
 General Partner
 767 Third Avenue, 6th Floor
 New York, NY 10017-2023
 Phone:  212-739-6400
 Fax:  212-739-6444
 Gordonc@orbimed.com

 PW EUCALYPTUS FUND, LTD.                                                                  6,500                $17,875.00
 Orbimed Advisors, LLC
 Attn:  Carl L. Gordon, Ph. D., CFA
 General Partner
 767 Third Avenue, 6th Floor
 New York, NY 10017-2023
 Phone:  212-739-6400
 Fax:  212-739-6444
 Gordonc@orbimed.com

<PAGE>

<CAPTION>
 NAME AND ADDRESS OF PURCHASER                                                        NUMBER OF SHARES            AMOUNT
<S>                                                                                   <C>                      <C>
 AP ANLAGE Private Bank AG                                                                363,636               $999,999.00
 Attn:  Andreas Bremer, Ph.D.
 Managing Director
 Werkstrasse 2
 8806 Baech
 Switzerland
 Phone:  +4117876241
 Fax:  +4117876250
 Andreas.bremer@apam.ch

 CLARIDEN BANK. a CREDIT SUISSE GROUP company                                             181,818               $499,999.50
 Attn:  Eric H. Bernhardt
 Vice President
 Claridenstrasse 26
 P.O. Box 5080
 CH-8022 Zurich
 Phone:  +4112056576
 Fax:  +4112056209
 Eric.bernhardt@clariden.com

 AMADEUS CAPITAL PARTNERS LIMITED
 Attn: Hermann M. Hauser                                                                 181,818               $499,999.50
 Director
 Mount Pleasant House, 2 Mount Pleasant
 Cambridge CB3 ORN

 19 Hanover Square, London
 S1R9 3OA UK

 Phone: 01223-578-365
 Fax: 01223-578-488
 Hhauser@amadeuscapital.com

 PENTECH FINANCIAL SERVICES, INC.                                                          9,091                $25,000.25
 Attn:  Ben Millerbis
 310 West Hamilton Avenue, Suite 212
 Campbell, CA 95008
 Phone:  (408) 378-2000
 Fax:  (408) 378-3304
 BEN@PENTECHFINANCIAL.COM

 CHINA DEVELOPMENT INDUSTRIAL BANK INC.                                                   103,891               $285,700.25
 Attn:  Willie Lin Ph.D.
 Associate Vice President, Technology Department
 9F, 125 Nanking East Road, Section 5
 Taipei 105, Taiwan
 Phone:  (886-2) 2756-1532
 Fax:  (886)-2)2756-7323
 CDC1837@EMAIL.CDCDPBNK.COM

 With a copy to:
 Henry Pan
 44 Whippany Road
 Morristown, NJ 07960

<PAGE>

<CAPTION>
 NAME AND ADDRESS OF PURCHASER                                                        NUMBER OF SHARES            AMOUNT
<S>                                                                                     <C>                   <C>
 FIRST BIO VENTURE CAPITAL CORPORATION of Cheng Xin Venture Capital                        51,963               $142,898.25
 Corp
 Attn:  Jerome Shen, Ph.D
 Vice President
 5F, 143, Section 2, Min-Sheng East Road
 Taipei, Taiwan
 Phone:  (886-2) 2507-2960
 Fax:  (886) 2500-6908
 Shenc@chengxin.com.tw

 With a copy to:
 Henry Pan
 44 Whippany Road
 Morristown, NJ 07960

 CENTRAL INVESTMENT HOLDING (B.V.I.) CO., LTD.                                            103,891               $285,700.25
 Attn:  W.J. Shiyu
 Vice President
 6F, No. 232 Section 2, Pa-Teh Road
 Taipei 104, Taiwan
 Phone:  (886-2) 2771-9998 Ext. 628
 Fax:  (886)-2) 2781-1231
 Shiyu@cihc.com.tw

 With a copy to:
 Henry Pan
 44 Whippany Road
 Morristown, NJ 07960

 GRAND CAPITAL INTERNATIONAL LIMITED of Bank SinoPac                                      103,891               $285,700.25
 Attn:  Jeremy T.M. Tsai
 Manager, Investment Banking Division
 3F, 9-1, Chien Kuo North Road
 Taipei , Taiwan
 Phone:  (886-2) 2508-8560
 Fax:  (886)-2)2517-3956
 Jeremy.tsai@banksinopac.com.tw

 With a copy to:
 Henry Pan
 44 Whippany Road
 Morristown, NJ 07960

 FALCON TECHNOLOGY PARTNERS, L.P.                                                         727,273              $2,000,000.75
 Attn: James L. Rathmann
 General Partner
 600 Dorset Road
 Devon, PA  19333
 Jlrathmann@aol.com

<PAGE>

<CAPTION>
 NAME AND ADDRESS OF PURCHASER                                                        NUMBER OF SHARES            AMOUNT
<S>                                                                                     <C>                  <C>
 MDS, INC.                                                                               181,818                499,999.50
 Attn: Peter Winkley
 100 International Blvd.
 Toronto, Canada M9W9J6
 Phone: (416)-213-4678

 S. R. ONE, LIMITED                                                                      363,636               $999,999.00
 Attn:  Barbara Dalton
 200 Barr Harbor Drive
 Suite 250, Four Tower Bridge
 W. Conshohoken, PA 19428
 Phone: 610-567-1033
 Fax: 610-567-1039
 Barbara.dalton@sb.com

 MDS LIFE SCIENCES TECHNOLOGY BARBADOS INVESTMENT TRUST                                    47,355               $130,226.25
 P.O. Box 261
 Bush Hill
 Bay Street
 Bridgetown, Barbados
 WEST INDIES

 MDS LIFE SCIENCES TECHNOLOGY FUND LIMITED PARTNERSHIP                                    272,878               $750,414.50
 Attn: Michael J. Callaghan
 100 International Boulevard
 Toronto, Ontario M9W 6J6
 Phone: 416-675-4530
 Fax: 416-213-4232

 MDS LIFE SCIENCES TECHNOLOGY FUND USA, L.P.                                               64,519               $177,427.25
 Attn: Dr. Henry Pan
 44 Whippany Road
 Morristown, NJ 07960

 THE HEALTH CARE AND BIOTECHNOLOGY VENTURE FUND                                            67,897               $186,716.75
 Attn: Michael J. Callaghan
 100 International Boulevard
 Toronto, Ontario M9W 6J6
 Phone: 416-675-4530
 Fax: 416-213-4232

 STANFORD RESEARCH SYSTEMS                                                                300,059               $825,162.25
 Attn: William R. Green, President
 1290 D Reamwood Avenue
 Sunnyvale, CA 94089
 Bill@srsys.com

 WILLIAM R. GREEN                                                                          51,300               $141,075.00
 1290 D Reamwood Avenue
 Sunnyvale, CA 94089
 Bill@srsys.com

<PAGE>

<CAPTION>
 NAME AND ADDRESS OF PURCHASER                                                        NUMBER OF SHARES            AMOUNT
<S>                                                                                   <C>                 <C>
 JAMES AND LINDA GINSBURG                                                                  4,526                $12,446.50
 900 Bluff Street
 Glencoe, IL 60022
 Phone:  312-409-9048
 TOTAL                                                                                 9,785,762            $26,910,845.50
</TABLE>

<PAGE>

                     SCHEDULE OF PURCHASERS (SECOND CLOSING)

<TABLE>
<CAPTION>
 NAME AND ADDRESS OF PURCHASER                                                        NUMBER OF SHARES            AMOUNT
<S>                                                                                     <C>                  <C>
 FORWARD VENTURES II, LP                                                                 177,020               $486,805.00
 Attn: Standish Fleming
 9255 Towne Center Drive, Suite #300
 San Diego, Ca 92121
 Phone: 858-677-6077
 Fax: 858-452-8799
 ignell@forwardventures.com

 ICNA, LTD.                                                                                  406               $  1,116.50
 Attn: Ivor Royston
 7514 Girard Avenue, #1-PMB243
 La Jolla, CA 92037
 Phone: 858-450-5997
 Fax: 858-454-4658
 iroyston@skcc.org

 JOHN A. YOUNG, TRUSTEE FOR THE YOUNG FAMILY TRUST                                        96,759               $266,087.25
 Attn:  John A. Young
 3200 Hillview Avenue
 Palo Alto, CA 94304
 Phone: 650-857-2114
 Fax: 650-857-2677
 John_Young@hp.com

 DIANA K. YOUNG                                                                           27,159               $74,687.25
 999 Green Street, #2005
 San Francisco, CA 94113
 Phone: 415-441-8680
 Fax: 650-854-0292
 Diyoung@mindspring.com

 GREGORY S. YOUNG                                                                          27,159               $74,687.25
 22050 Regnart Road
 Cupertino, CA 95014-4841
 Phone: 408-366-0581
 Fax: 408-366-0583
 Gsyoung@tetoncap.com

JOHN PETER YOUNG                                                                          27,159               $74,687.25
 4100 Grange Road
 Santa Rosa, CA 95404
 Phone: 707-542-5575
 Fax: 707-546-6849
 JPY@workingdogranch.com

</TABLE>
<PAGE>

<TABLE>
<CAPTION>

<S>                                                                                     <C>                  <C>
 HLM/CB FUND LP                                                                           113,162             $311,195.50
 Attn:  Buck Haberkom
 222 Berkeley Street
 Boston, MA 02116
 Phone: 617-266-0030x. 231
 Fax: 617-266-3619

 TURTLE & COMPANY                                                                          69,358               $190,734.50
 c/o Nuland & Arshad, Inc.
 Attn:  Jamie Nuland
 176 Federal Street
 Boston, MA 02110-2209
 Phone: 617-261-7687
 Fax: 617-261-1529
 jamie@nulandandarshad.com

 HOOVER ASSOCIATES                                                                         46,308               $127,347.00
 Attn:  R. Graham Luther
 24 Christopher Lane
 Sterling, VA 20165-6205
 Phone: 703-404-8553
 Fax: 703-404-9858
 grayluther@erols.com

 THE MACKOWSKI FAMILY TRUST                                                                45,265               $124,478.75
 c/o Mackowski & Shepler
 Attn:  Matthew Mackowski
 275 Post Street
 San Francisco, CA 94108-5005
 Phone: 415-765-6982
 Fax: 415-765-6983
 Jmmms@aol.com

 WATERVIEW TRUST                                                                           45,265               $124,478.75
 Attn:  Thomas J. Menzes
 24 Hamana Street
 Devonport, Aukland, New Zealand
 Phone: 64-9-9880154
 Fax: 64-94880157
 TJM@XTRA.CO.NZ

 JOHNATHAN J. KENT                                                                          1,000                  $2,750.00
 4909 34th Street
 San Diego, CA 92116
 Phone: 619-281-6983
 kentaj@home.com

 DANIEL VAPNEK                                                                             27,159                 $74,687.25
 414 Plaza Rubio
 Santa Barbara, CA 93103
 Phone: 805-569-4072
 Fax: 805-687-5153
 Dvapnek@worldnet.att.net

                                       2.
<PAGE>

<S>                                                                                   <C>                      <C>
 GUARANTEE  TRUST  COMPANY  FBO LENITA L. RICH IRA, DATED 8-2-91,
 NO. 20186123 BT ALEX BROWN                                                                10,884                 $29,931.00
 Attn:  Maria Cadden
 1 South Street, 23rd Floor
 Baltimore, MD 21202
 Phone: 650-595-4131
 Fax: 650-595-4131
 Maria.G.Cadden@DB.com

 ONE AND COMPANY AS NOMINEE FOR WELCH & FORBES                                             10,864               $29,876.00
 c/o Charles Haydock
 Attn:  Charles Haydock
 45 School Street
 Boston, MA 02108
 Phone: 617-523-1635x246
 Fax: 617-742-6243
 Avardaro@welchforbes.com

 DEAN V. AMBROSE                                                                           10,801               $29,702.75
 1901 Avenue of the Stars, #1551
 Los Angeles, CA 90067
 Phone: 310-785-9700
 Fax: 310-556-1266
 Dvax1@aol.com

 EDWARD O. ANSELL                                                                          10,371               $28,520.25
 449 W. Willamette Lane
 Claremont, CA 91711-2746
 Phone: 909-625-1244
 Fax: 909-624-1664
 eoansell@att.net

 ROBERT SHEPLER                                                                            7,500                $20,625.00
 c/o Mackowski & Shepler
 275 Post Street
 San Francisco, CA 94108-5005
 Phone: 765-6980
 Fax: 415-765-6983
 Shepms@aol.com

 PETER F. DRAKE                                                                            6,830                  $18,782.50
 c/o Prudential Vector Healthcare
 1751 Lake Cook Road, Suite 350
 Deerfield, IL 60015
 Phone: 847-374-3802
 Fax: 847-374-3800
 p_drake@prusec.com

                                       3.
<PAGE>

 ROBERT AND LORI LUTHER
 Attn:  R. Graham Luther
 24 Christopher Lane                                                                       4,631                $12,735.25
 Sterling, MD 20165
 Phone: 703-404-8553
 Fax: 703-404-9858
 grayluther@erols.com

 IKIKO CORPORATION                                                                         4,631                  $12,735.25
 c/o Nuland & Arshad, Inc.
 Attn:  Jamie Nuland
 176 Federal Street
 Boston, MA 02110-2209
 Phone: 617-261-7687
 Fax: 617-261-1529
 jamie@nulandandarshad.com

 ANTHONY J. SINSKEY                                                                        4,554                $12,523.50
 c/o Department of Biology
 Massachusetts Institute of Technology
 Cambridge, MA 02139
 Phone: 617-253-6721
 Fax: 617-253-8550
 asinskey@mit.edu

 R. ANGUS WEST                                                                             4,526                $12,446.50
 c/o The Boston Family Office, LLC
 33 Broad Street, 2nd Floor
 Boston, MA 02109
 Phone: 617-227-2676
 Fax: 617-261-1529
 angusw@bosfam.com

 MICHAEL G. AND OLWEN PAGE                                                                 4,526                  $12,446.50
 1751 Lake Cook Road, Suite 350
 Deerfield, IL 60015
 Phone: 847-374-3810
 Fax: 847-940-0819
 Michael_page@prusec.com

 ROBERT A. SHAW AND MAUREEN MCLAUGHLIN, TRUSTEES UTD 12-14-90                              3,621                  $9,957.75
 Attn: Maureen Mclaughlin
 2237 Via Maderos
 Los Altos, CA 94024
 Phone: 650-906-8687
 Fax: 650-966-1765
 maureen@mcshaw.com

 TOTAL                                                                                   786,918              $2,164,024.50

</TABLE>
                                       4.
<PAGE>

                                     EXHIBIT B

                   AMENDED AND RESTATED ARTICLES OF INCORPORATION

                  [See Exhibit 3.1 to this Registration Statement]

<PAGE>

                                      EXHIBIT C

                               SCHEDULE OF EXCEPTIONS

       This Schedule of Exceptions is made and given pursuant to Section 2 of
the Series E Preferred Stock Purchase Agreement dated February __, 2000 (the
"Agreement") by and among Ciphergen Biosystems, Inc., a California
corporation (the "Company") and the Investors set forth on EXHIBIT A thereto.
 The Section numbers in this Schedule of Exceptions correspond to the Section
numbers in the Agreement, which are modified by the disclosures.  Any terms
defined in the Agreement shall have the same meaning when used in this
Schedule of Exceptions as when used in the Agreement, unless the context
otherwise requires.

2.3    SUBSIDIARIES

       IllumeSys Pacific, Inc., a California corporation ("IllumeSys"), is a
wholly owned subsidiary of the Company.

       Ciphergen Technologies, Inc., a California corporation ("CTI"), is a
wholly owned subsidiary of the Company.

       Ciphergen Biosystems, Ltd., a corporation organized under the laws of
the U. K., is a wholly owned subsidiary of the Company.

       Ciphergen Biosystems, KK, a corporation organized under the laws of
Japan, is 30% owned by the Company.

  2.14 PATENTS AND TRADEMARKS

       The following six agreements are only listed in this Schedule of
Exceptions for the reason that they are existing agreements.  The provisions
of Section 2.14 are otherwise applicable to these agreements.

       Assignment and Assumption Agreement, dated January 1, 1994, between
the Company, Abiotic Technologies and Abiotic Pharmaceutical Technologies,
with Exhibits and Schedules attached thereto (the "Assignment Agreement").

       Joint Development Program Agreement (the "Joint Development
Agreement") dated February 2, 1995, with Stanford Research Systems ("SRS")
for the development of a digitizer and a time of flight mass spectrometer
under which the Company granted an aggregate of 550,000 shares of Series B
Preferred Stock in October 1996 and September 1997.  The Company has reserved
an additional 550,000 shares of Series B Preferred Stock for issuance to SRS
upon achievement by SRS of specified product development milestones.

       License Agreement, dated December 6, 1994, with Rockefeller University
(the "Rockefeller License Agreement").

<PAGE>

       License Agreement, dated March 1, 1994, with the Scripps Research
Institute (the "SRI License Agreement").

       License Agreement dated April 7, 1997, between IllumeSys and Molecular
Analytical Systems (the "IllumeSys License Agreement")

       License Agreement dated April 7, 1997, between CTI and Molecular
Analytical Systems (the "CTI License Agreement").

       Letter dated July 23, 1999 from attorneys for Brucker Daltrinics
offering licenses under three patents.  Response from William E. Rich dated
August 20, 1999, indicating that the Company does not presently use the
referenced technologies and is not interested in licenses to use them.

       Letter dated January 14, 2000 from Myriad Genetics, Inc. offering a
license under a patent.  Response from Company patent counsel February 10,
2000, indicating that the Company does not presently use the referenced
technologies and is not interested in licenses to use them.

  2.15 TAX RETURNS

       The Company was audited by the California State Board of Equalization
in September 1999 regarding sales taxes for the years 1996 through 1999 to
date. The Company believes that its net obligation to the agency will be less
than $10,000.

       The Company was audited by Santa Clara County, California regarding
property taxes for the years 1996 through 1999 to date.  The Company believes
that its net obligation to the County will be less than $10,000.

2.17   AGREEMENTS;  ACTION

              (a)    Restricted Stock Purchase Agreements, dated December 29,
       1993, with S.R. One, Limited, Forward Ventures II, L.P. and certain
       affiliates.

       Restricted Stock Purchase Agreement, dated July 21, 1994, with John
Young.

       Employment Agreement, dated August 9, 1994, between the Company and
William E. Rich (the "Rich Employment Agreement"), including a loan and stock
options (convertible to Restricted Stock Purchase Agreement with promissory
note) provided for thereunder.

       Offer Letter, dated August 25, 1997, extended to James H. Stanford,
which included stock options with accelerated vesting upon the occurrence of
certain events (the "Stanford Offer Letter").

       Warrants to purchase up to an aggregate of 54,400 shares of the
Company's Series A Preferred Stock issued to S.R. One, Limited and Forward
Ventures II, L.P.

                                       2.
<PAGE>

       Warrants to purchase up to an aggregate of 80,668 shares of the
Company's Series B Preferred Stock issued to Stephen B.H. Kent, S.R. One,
Limited, Forward Ventures II, L.P., Falcon Technology Partners, L.P., Edward
O. Ansell and Steven M. Clark.

       Management Rights Letter, dated February 17, 1994, from the Company to
Forward Ventures II, L.P.

       Financial Information and Board Visitation Rights Letter, dated
February 17, 1994, from the Company to Falcon Technology Partners, L.P.

       Promissory Note, dated March 1, 1995, in the aggregate principal
amount of $35,000 extended by the Company to William E. Rich, due and payable
in full on August 31, 1999, accruing interest at a rate of 7.69% per annum,
pursuant to an exercise of options (the "Rich March 1995 Note").  This note
and accumulated interest thereon were replaced with a note payable September
1, 2004 accruing interest at the rate of 6% with principal of $47,548 (the
"Rich September 1999 Note").

       Two Promissory Notes, dated May 1, 1997, in the aggregate principal
amount of $5,000 each extended by the Company to William E. Rich, due and
payable in full on May 1, 2002, accruing interest at a rate of 6.85% per
annum, pursuant to an exercise of options (the "Rich May 1997 Note").

       Two Promissory Notes, dated March 25, 1998, in the aggregate principal
amount of $180,000 extended by the Company to William E. Rich, due and
payable in full on March 25, 2003, accruing interest at a rate of 5.59% per
annum, pursuant to an exercise of options (the "Rich March 1998 Notes").

       Promissory Note, dated March 25, 1998, in the aggregate principal
amount of $15,000 extended by the Company to James H. Stanford, due and
payable in full on March 25, 2003, accruing interest at a rate of 5.59% per
annum, pursuant to an exercise of options (the "Stanford March 1998 Note").

       Promissory Note, dated May 31, 1998, in the aggregate principal amount
of $50,000 extended by the Company to James H. Stanford, due and payable in
full on May 31, 2003, accruing interest at a rate of 5.69% per annum,
pursuant to an exercise of options (the "Stanford May 1998 Note").

       Promissory Note, dated September 15, 1999, in the aggregate principal
amount of $77,500 extended by the Company to William E. Rich, due and payable
in full on September 14, 2004, accruing interest at a rate of 5.82% per
annum, pursuant to an exercise of options (the "Rich September 1999 Note").

       Loan Agreement, dated November 17, 1998, in the aggregate principal
amount of $30,000 extended by the Company to William E. Rich, due and payable
in full on November 17, 2003, accruing no interest (the "Rich Loan").

                                       3.
<PAGE>

       Secured Loan Agreement, in the aggregate principal amount of $200,000
extended by the Company to William E. Rich to finance a house, due and
payable in full December 30, 2003, accruing no interest in lieu of a 5% pay
increase (the "Rich Housing Loan").

       Reference is made to the Joint Development Agreement.

       (b)    Facilities Lease agreements of April 18, 1996, as amended,
between the Company and Nearon Enterprises, LLC for space in 470 and 490 San
Antonio Road, Palo Alto, California, expiring June 30, 2000 (the "Nearon
Facilities Agreement").

       Facilities Lease agreement of February 3, 2000 between the Company and
the John Arrillaga Survivor's Trust and the Richard T. Peery Separate
Property Trust for a facility in Fremont, California terminating March 31,
2008 (the "Arrillaga Facility Agreement").

       Joint Venture Agreement dated January 25, 1999, with Sumitomo
Corporation of Tokyo, Japan establishing Ciphergen Biosystems, KK (the
"Sumitomo Joint Venture Agreement").

       Marketing and Distribution Agreement dated March 24, 1999 with
Ciphergen Biosystems, KK for marketing rights to certain Company products in
Japan (the "Japan Marketing and Distribution Agreement").

       Reference is made to the Joint Development Agreement.

       Loan and Lease Agreement dated September 12, 1997 with Pentech
Financial Services, Inc. (the "Pentech 1997 Agreement"), in which the Company
entered into a secured equipment loan and an equipment lease financing for an
aggregate amount of $638,000 with three-year repayment terms.  All drawdowns
under this agreement have been completed.  The current unpaid principal
balance is $261,000.

       Loan and Lease Agreement, dated May 1, 1999, with Pentech Financial
Services, Inc. (the "Pentech 1999 Agreement") in which the Company entered
into a secured equipment loan and an equipment lease financing for an
aggregate amount of up to $1,200,000 with three-year

                                       4.
<PAGE>

repayment terms.  Drawdowns totaling $685,000 have been made to date and the
remainder must be completed by March 31, 2000.  The current unpaid principal
balance is $571,000.

       Loan and Security Agreement, dated June 23, 1999, with Imperial Bank
for a line of credit based on eligible accounts receivable, with borrowing up
to $1,500,000 with interest at Prime + 0.75% (the "Imperial Loan Agreement").

       Reference is made to the Rockefeller Agreement.

       Reference is made to the Assignment Agreement.

       Reference is made to the IllumeSys License Agreement.

       Reference is made to the CTI License Agreement.

       Reference is made to the Rich Housing Loan.

       Reference is made to the Rich Loan.

(c)    Reference is made to the Pentech 1997 Agreement.

       Reference is made to the Pentech 1999 Agreement.

       Reference is made to the Rich Housing Loan.

       Reference is made to the Rich Loan.

       Reference is made to the Imperial Loan Agreement.

       Reference is made to the Rockefeller Agreement.

                                       5.
<PAGE>

              (d)    The Chief Executive Officer and an outside director of the
       Company met with representatives of another company in November 1999 for
       purposes of exploring a potential business combination.  No agreement was
       reached and no further discussions have taken place or are scheduled.

2.21   EMPLOYEE BENEFIT PLANS

       The Company has a 401(k) Plan.

       The Company has a Section 125 Cafeteria Plan.

       Gary Holmes, Director of Marketing, resigned and left the Company
February 11, 2000.  He has been replaced by Richard Rubin, former Director of
Marketing at Molecular Dynamics, Inc., who has been an employee since June
1999, most recently acting as Western Regional Program Manager for Sales.

2.24   Reference is made to the Japan Marketing and Distribution Agreement.

       Reference is made to the Joint Development Agreement.

                                       6.

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