Document:

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                                                                   EXHIBIT 10.18

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN REDACTED PROVISIONS OF
THIS AGREEMENT. THE REDACTED PROVISIONS ARE IDENTIFIED BY THREE ASTERISKS
ENCLOSED BY BRACKETS AND UNDERLINED. THE CONFIDENTIAL PORTION HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                          LABORATORY SERVICES AGREEMENT

                                 BY AND BETWEEN
                          JOINT PURCHASING CORPORATION
                                       AND
                          SPECIALTY LABORATORIES, INC.

                                 CONTRACT # 1234

This document, when signed, constitutes an Agreement, herein referred to as
"Agreement", between Specialty Laboratories, Inc., a California corporation,
herein referred to as "Vendor", located at 2211 Michigan Avenue, Santa Monica,
California 90404-3900 and Joint Purchasing Corporation, herein referred to as
"JPC", a New York corporation, located at 1865 Broadway, 11th Floor, New York,
New York 10023, and shall become effective March 1, 1999.

WHEREAS, Vendor is the provider of laboratory testing services, herein referred
to as "Services", and desires to offer the Services to medical providers
participating in JPC's group purchasing programs, herein referred to as
"Participant" or collectively as "Participants"; and

WHEREAS, JPC is a provider of group purchasing services to its Participants on a
national basis and wishes to offer the Services to its Participants.

NOW, THEREFORE, it is mutually agreed by and between JPC and Vendor as follows:

AGREEMENT TERM AND RENEWAL
The term of the Agreement will be from March 1, 1999 through December 31, 2001
with an option to renew, upon mutual agreement by both parties and 60 days
written notice, for an additional twelve (12) months. During the initial term of
the Agreement, pricing will remain the same, however, Vendor reserves the right
to increase pricing by the [***]* for Medical Services on the [***]*.

ELIGIBLE PARTICIPANTS
All Participants, irrespective of Class of Trade, are eligible to benefit from
this Agreement, but shall be required to adopt and execute a separate Agreement,
incorporated herein as "Attachment A", with Vendor delineating the terms and
conditions of this Agreement.

DISCOUNTS
In accordance with this Agreement, special pricing will be available for
selected tests currently offered by Vendor, incorporated herein as
"Attachment B".

Additionally, a [***]* reduction in standard list price, as published in the
Price List current at the time the testing is ordered, will be granted for all
tests not listed in Attachment B. However, tests that are unique to Vendor such
as chromosome studies, PCR tests, tumor tests, leukemia/lymphomas, etc.,
incorporated herein as "Exception List - Attachment C", are not included in the
[***]* reduction in standard list price. Further, the [***]* reduction in
standard

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           * PORTIONS OF THIS PAGE HAVE BEEN OMITTED PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

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list price does not apply to any tests that are referred out and any new tests
introduced by Vendor after the effective date of this Agreement.

The continuance of all discounts and special prices is contingent upon the
adherence to the payment terms stated within this Agreement. If such payment
terms are not adhered to, all discounts may be discontinued and laboratory
service charges shall be recalculated based upon standard list fees current at
that time. Discounting may be revoked effective the date at which payment
becomes delinquent.

In order to maintain compliance with current California regulations, Vendor is
required to charge Participants for all testing referred to another laboratory
at the price charged to Vendor (subject to change without notice). Vendor
charges an additional processing fee for each test to cover the clerical and
administrative costs of preparing the specimen(s) for transport.

In the event a test currently being performed by Vendor is subsequently referred
to another laboratory, Vendor will be required to charge the price charged to
Vendor (subject to change without notice). Vendor will make every effort to
notify Participants with (30) days notice of any such changes.

Participants shall report any discounts they receive to the Medicare and
Medicaid programs in accordance with the provisions of 42CFR Section
1001.952(h).

PARTICIPANT SPECIFIC PRICING
In addition to the pricing detailed in the paragraph of this Agreement entitled
DISCOUNTS, Vendor will consider, on a case-by-case basis, discretionary pricing
for Participants. This would include a maximum number of [***]* tests that are
not part of Attachment B.

In order to establish comparative clinical data, Vendor will provide, at no
charge, testing on samples previously assayed by a different reference
laboratory. This comparative testing is limited to no more than five (5) tests,
and not more than 5 samples per test.

ASSIGNMENT
This Agreement may not be transferred to a successor owner without the expressed
written consent of Vendor and JPC.

LICENSURE AND ACCREDITATION
Vendor is a duly licensed independent clinical laboratory and fully accredited
by the College of American Pathologists and CLIA among other certifying
agencies. Vendor agrees to maintain appropriate licensure and accreditation
during term of this Agreement.

AVAILABLE SERVICES
In accordance with the letter dated January 27, 1999 from Gary W. Nay,
incorporated herein as "Attachment D", Vendor agrees to make Services available
to Participants in quantities necessary to meet the consumption requirements of
Participants. In the event Vendor is unable to provide the Services requested by
Participants, for reasons outside of Vendor's control,

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           * PORTIONS OF THIS PAGE HAVE BEEN OMITTED PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

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Vendor will contact Participants to determine acceptable alternatives. At the
request of Participants, Vendor will either procure a substitute in-house assay
or refer the sample to another reference laboratory for testing. In the event
testing is referred to another reference laboratory, Participants will be
charged Vendor's cost without any additional shipping, handling or
administrative charges.

SUPPLIES
Vendor shall provide to Participants the necessary supplies for the proper
preparation and submission of specimens to Vendor.

COURIERS AND LOGISTICS
Vendor will provide all courier and logistics services required to adequately
address the laboratory testing submitted by Participants.

CREDIT APPROVAL
The offer contained within this Agreement shall be valid contingent upon credit
approval from Vendor for each Participant.

INVOICE
Vendor will bill each Participant on a monthly basis for its reference testing
services. All bills will be submitted net of applicable discounts. Each
Participant shall be responsible for any and all taxes (city, state, etc.)
arising as a result of this Agreement. JPC will not be responsible or liable for
the payment of individual Participant invoices.

PAYMENT TERMS
All bills are due and payable within thirty (30) days from date of invoice.

THIRD PARTY BILLING POLICIES
Vendor will bill patients and patients' insurance directly provided all the
necessary billing information is supplied by the Participant within sixty (60)
days of the invoice date, otherwise, Participants are responsible for payment of
the total invoice. In the event Participants do not furnish Vendor with all of
the information required for either patient, third party, Medicare, Medi-Cal or
Medicaid billing within 60 days of the invoice date, Vendor shall not be
responsible and/or obligated to bill patient, third party, Medicare, Medi-Cal,
or Medicaid on behalf of Participants. In such instance, Participants shall be
responsible for the entire balance of the invoice.

In cases where Vendor has billed a third party at the request of a participant,
and a denial is received due to the lack of provider contractual status or
patient ineligibility, Vendor will bill the patient for the services rendered.
However, should the third party be a payor prohibiting patient billing, i.e.,
HMO, Medicare, Medi-Cal or Medicaid carrier, Vendor will bill such denied
charges to Participants and will expect payment in full.

UTILIZATION REPORTS
Vendor agrees to provide JPC with quarterly reports reflecting participant
utilization. The reports will include test(s) performed (code and description),
volumes and gross sales amounts. The reports will be submitted to JPC in
Microsoft Excel 97 & 5.0/95 Workbook format on floppy diskette or Compact Disc
no later than thirty (30) days after the end of each quarter.

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CONTRACT ADMINISTRATION FEE
Vendor agrees to pay JPC a quarterly Contract Administration Fee, herein
referred to "CAF", for an amount equal to [***]* of the [***]* contracted dollar
amount (less any billing adjustments) for each Participant. The checks will be
made payable to "Joint Purchasing Corporation" with the initial payment due
after the close of June 1999. The CAF is intended to defray the expenses of
administering the JPC group purchasing program and marketing programs related to
Vendor's services.

TERMINATION PROVISIONS

JPC and Vendor may terminate the Agreement, without cause, with thirty (30) days
written notice. Upon termination of this Agreement, for any reason, the parties
agree that Vendor shall continue to pay JPC the CAF as provided herein for the
duration of any payment obligations to Vendor by Participants under this
Agreement.

INDEMNIFICATION
Vendor shall indemnify and hold harmless JPC, its Director, officers, employees,
agents from any claims, actions, suits or proceedings and all costs related
thereto which JPC may suffer on account of actions on the part of the Vendor in
providing and rendering the Services under this Agreement, including without
limitations, claims relating to patent infringement.

JPC shall indemnify and hold harmless Vendor, its Directors, officers, employees
and agents from any claims, actions, suits or proceedings and all costs related
thereto which the Vendor may suffer on account of actions on the part of JPC in
performing its obligations under this Agreement.

Vendor represents and warrants to both JPC that upon the effectiveness of the
Agreement it will have, and during the term hereof will continue to maintain
liability insurance in amounts not less than three million dollars ($3,000,000).
Proof of such insurance and the amount thereof shall be provided at the time of
execution of this Agreement on behalf of Vendor. The Vendor shall provide JPC
with written evidence of such insurance upon written request at any time during
the term hereof.

FORCE MAJEURE
Vendor shall not be liable for any failure to perform its duties under this
Agreement due to acts of God; acts, regulations or laws of any government, war
or any other condition or cause beyond reasonable control.

PRODUCT RECALL AND DISRUPTION OF SERVICES
Vendor agrees to provide JPC and Participants notice of any product recall in
accordance with any local, state or federal statute or regulation. Should a
report or recall of a product be made subsequent to the termination of the
Agreement, Vendor shall notify JPC and Participants immediately of such recall
or product defect report for Services sold under this Agreement in perpetuity.

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           * PORTIONS OF THIS PAGE HAVE BEEN OMITTED PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

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Vendor shall notify JPC and Participants in writing prior to any factor which
might result in the Vendor's inability to, or disruption of, the availability
and delivery of Services.

COMPLIANCE POLICIES
Participants, Vendor and JPC agree to comply with all applicable regulatory
agencies including, but not limited to, CLIA and HCFA. In addition, each party
shall administer compliance policies throughout their respective organizations
to ensure that such compliance is assured. Examples of such policy topics would
include, but not be limited to, patient confidentiality, diagnosis coding,
anti-kickback statutes, professional courtesy, and CPT-4 coding.

SELF-REFERRAL
In the event that Participants have any physician owners, Participants shall
notify Vendor of such fact so that the parties can ensure compliance with
self-referral restrictions under applicable federal and state law.

CHANGE IN RULES AND REGULATIONS
In the event that any Medicare or Medicaid law, rule, regulation, policy (or any
other federal, state or local law, rule, regulation, policy, or any
interpretation thereof) at any time during the term of this Agreement prohibits,
restricts or has a materially adverse effect on the Agreement, then the parties
to this Agreement shall negotiate in good faith to amend or terminate the
Agreement.

RECORDS
Both parties agree to retain, and make available to the other party upon
request, for a period of four (4) years following the furnishing of services
under this Agreement itself and all books, documents and records that are
necessary to verify the nature and extent of the costs thereof, when requested
by the Secretary of Health and Human Services, the Comptroller General of the
United States or any of their duly authorized representatives, in a manner that
complies with the requirements of Section 1861(v)(1)(I) of the Social Security
Act and any regulations promulgated thereto.

Both parties agree to notify the other party upon receipt of any such request,
related to this Agreement, from any representative of the Secretary of Health
and Human Services of the Comptroller General.

TEST REQUIREMENTS
Vendor represents and warrants that all Services meet the following
requirements:

         A. Services have been approved by CLIA requirements.

         B. Services are guaranteed not to be misbranded or adulterated.

         C. Services do not infringe on any United States or foreign patent of
any other party.

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         D. Services shall be fit for the use and purpose intended when sold and
delivered to Participants.

PARTICIPANT PURCHASES
Each Participant shall determine on its own whether to purchase the Services.

INDEPENDENT CONTRACTOR
At all times relevant hereto, Vendor shall function as an independent contractor
rendering services to Participants. Vendor shall not be an employee or agent of
JPC or Participants and shall not be entitled to any employee benefits from JPC
or Participants.

ESTIMATED QUANTITIES
Neither JPC nor Participants obligate themselves to any estimated volume of
purchases of Services.

PARTICIPANT ADDITIONS & DELETIONS
JPC may at any time and from time to time, add or delete Participants eligible
to benefit from the terms of this Agreement. The addition or deletion of a
Participant shall have no effect on the terms of this Agreement.

CONFIDENTIALITY
The terms and conditions of the Agreement are confidential to the parties and
may not be disclosed to any third party during the term of the Agreement.

GROUP PURCHASING AFFILIATION
Vendor reserves the right to offer its Services directly to Participants that
have multiple GPO agreements, when directed in writing to do so by Participants,
with the proof of said directive supplied to JPC within thirty (30) days of
execution.

MARKETING ACTIVITIES
JPC and the Vendor agree that:

         A.       JPC agrees to allow Vendor the use of JPC's name, logo and
                  other corporate identifiers solely in connection with the
                  offer and sale of Services to Participants under this
                  Agreement, subject to prior approval by JPC.

         B.       JPC agrees to allow Vendor to publicize accomplishments
                  achieved under this Agreement, subject to the prior written
                  approval by JPC.

         C.       JPC agrees to have appropriate personnel accompany Vendor
                  personnel on marketing calls to Participants as reasonably
                  requested by Vendor, subject to prior notice and scheduling
                  conflicts.

         D.       JPC has the right to review and approve Vendor's marketing
                  materials or external communications regarding this Agreement,
                  prior to its release. All releases have

<PAGE>

                  to be approved by JPC's Vice President for Contract Operations
                  or his/her designee, prior to any publication.

Vendor agrees to participate in the following activities during the term of this
Agreement. Intended generally to promote and assist JPC in successfully
providing group purchasing services to its Participants, pursuant to this
Agreement:

         A.       Vendor agrees to allow JPC the use of Vendor's name, logo and
                  other Vendor corporate identifiers, solely in connection with
                  the offer and sale of Services to participants under this
                  Agreement, subject to prior approval by Vendor.

         B.       Vendor agrees to allow JPC to publicize accomplishments
                  achieved under this Agreement, subject to the prior written
                  approval by Vendor.

         C.       Vendor agrees to have appropriate personnel accompany JPC
                  Sales staff on marketing calls to Participants as reasonably
                  requested by JPC, subject to prior notice and scheduling
                  conflicts.

         D.       Vendor agrees to allow JPC to present its services and
                  programs to Vendor's Sales personnel within thirty (30) days
                  of execution of this Agreement.

         E.       Vendor agrees to allocate time and staff to provide on-going
                  Continuing Education Programs, In-Service Programs, both with
                  Continuous Educational Credits, to all Participants during the
                  term of this Agreement.

FAIR LABOR PRACTICES
Vendor agrees that it is, and will remain, in full compliance with Sections 6, 7
and 12 of the Fair Labor Standards Act as set forth under the Civil Rights Act,
Executive Order # 11246 throughout the term of this Agreement.

GOVERNING LAW
This Agreement shall be governed, construed and interpreted in accordance with
the laws of the State of New York.

VENUE AND INTERPRETATION OF THE LAW
Participants agree and specifically acknowledge that all of the services
undertaken and/or performed by Vendor are rendered from Santa Monica, Los
Angeles County, California. Vendor agrees that if any actions are to brought by
either Vendor or Participants relating to this Agreement, that said action, suit
or proceeding shall be filed and conducted in the courts of New York in the
State of New York.

HEADINGS
Paragraph captions contained within this Agreement are for convenience only and
do not constitute language within this Agreement.

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ATTORNEY'S FEE/COSTS
Vendor and JPC hereby agree that if any action, suit or proceeding is filed by
either party to enforce the terms of this Agreement, that the prevailing party
is entitled to its actual attorney's fees and costs in initiating and/or
prosecuting said action, suit or proceeding.

NOTICES
Any and all notices required under this Agreement shall be in writing and shall
be given by registered/certified mail, return receipt requested, and postage
prepaid to the party or parties for whom such notices are intended. All such
notices shall be addressed to the appropriate address set forth in the initial
paragraph of this Agreement or such other address of which the parties may be
notified in writing from time to time during the term hereof.

REQUIREMENTS
Upon acceptance of this Agreement, Vendor will immediately provide the following
materials to JPC:

         A.       Contract contact person and telephone number

         B.       Marketing contact person and telephone number

         C.       Client Service contact person telephone and fax number

         D.       Web site address

         E.       Shipping terms

         F.       Fee Schedule to be submitted on floppy diskette in Microsoft
                  Excel 97 format; prepared for CUSTOMER VIEWING ONLY. To
                  include the following:

                           i.       Pricing for all available Services

                           ii.      Directory of Services

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SIGNATURES
Each party represents that the undersigned individuals are authorized by, and on
behalf of, their respective organizations to enter into a binding contractual
relationship by signing this Agreement as of the effective date of this
Agreement.

FOR:                                       ACCEPTED:

SPECIALTY LABORATORIES, INC.               JOINT PURCHASING CORPORATION
SANTA MONICA, CALIFORNIA                   NEW YORK, NEW YORK

NAME:    MICHAEL K. BOND                   NAME:    JOHN VIVENZIO

SIGNATURE: /s/ MICHAEL K. BOND             SIGNATURE: /s/ JOHN VIVENZIO
           ----------------------------               --------------------------

TITLE: MANAGER, CONTRACT ADMINISTRATION    TITLE: VICE PRESIDENT FOR CONTRACT
                                                  OPERATIONS
       --------------------------------           ------------------------------

DATE:             2-25-99                  DATE:             2/28/99
      ---------------------------------          -------------------------------<PAGE>

                                                                   EXHIBIT 10.19

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN REDACTED PROVISIONS OF
THIS AGREEMENT. THE REDACTED PROVISIONS ARE IDENTIFIED BY THREE ASTERISKS
ENCLOSED BY BRACKETS AND UNDERLINED. THE CONFIDENTIAL PORTION HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

Manufacturer Agreement between MHA
And Specialty Laboratories

                                    AGREEMENT

                                     BETWEEN

                      MANAGED HEALTHCARE ASSOCIATES, INC.

                                       AND

                          SPECIALTY LABORATORIES, INC.

THIS AGREEMENT is made between Managed Healthcare Associates, Inc. of
Louisville, Kentucky (hereinafter collectively referred to as MHA) and Specialty
Laboratories of Santa Monica, CA, hereinafter called Manufacturer. MHA and
Specialty Laboratories agree as follows:

PRODUCT CATEGORY

Reference Laboratory

PRODUCTS COVERED

Reference Laboratory Services
Please include Tests and Pricing as Exhibit A.

PERIOD OF AGREEMENT

The initial term of the Agreement will be three (3) years beginning June 1, 2000
and expiring on May 31, 2003. An option to renew for a successive two (2) year
period (June 1, 2003 through May 31, 2005) will be considered upon mutual
written agreement by both parties.

TERMS AND CONDITIONS

          1.   PRICING (Check one or both if applicable)

                  /X/    Net price to an account
                  / /    Other

<PAGE>

               The prevailing list price for the term of the agreement shall be
               derived from the current Specialty Laboratories 2000 Directory of
               Services.

          2.   PRICE PROTECTION AND ESCALATOR GUARANTEE

               Price protection shall be firm for the duration of the initial
               Agreement. If the Agreement is extended for the optional two (2)
               year period, pricing will increase by no more than [***]* for the
               subsequent period.

<TABLE>
<CAPTION>

                                                                      LENGTH OF                    MAX % OF
                                                                     PROTECTION               ESCALATOR INCREASE
<S>                                                                  <C>                      <C>
                 1st period of price protection                        [***]*                       [***]*
                                                                     ---------                    ---------
                 2nd period of price protection                        [***]*                       [***]*
                                                                     ---------                    ---------
                 3rd period of price protection                        [***]*                       [***]*
                                                                     ---------                    ---------

                 ----------------------------------------------
</TABLE>
          3.   CONTRACT IMPLEMENTATION

                  The Manufacturer will endeavor to implement this agreement
                  within forty-five (45) days of signing. This implementation
                  will include contacting MHA facilities and/or jointly
                  providing contract information to all of the MHA authorized
                  members listed on Attachment B, if indicated. Failure to
                  comply to this condition may result in the cancellation of the
                  agreement.

          4.   CONVERSION INCENTIVES

               At this time, SPECIALTY reserves the right to not offer any
               Conversion Incentives.

          5.   VOLUME INCENTIVES

               / /  Improved pricing if group totals exceed projections
               / /  Discounts for large users from individual facilities or
                    integrated groups.
               / /  Improved pricing for teaching facilities
               /X/  None of the above. However, in addition to the pricing
               provided in Exhibit A, an [***]* reduction in standard list
               price, as published in the Price List current at the time the
               testing is ordered, will be granted for all tests not listed in
               Attachment A. Tests that are unique to SPECIALTY are not included
               in the [***]* reduction in standard list price. Further, the
               [***]* reduction in standard list price does not apply to any
               tests that are referred out and any new tests introduced by
               SPECIALTY after the effective date of this Agreement. In
               addition, SPECIALTY may, at its sole discretion, offer further
               price reductions of up to [***]*, to MHA members that agree to
               consistently commit at least [***]* of their total available
               referral volume. The selection of these additional tests must be
               made prior to executing SPECIALTY'S "Member Agreement" and the
               pricing will remain fixed for

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CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

<PAGE>

               the term of the Agreement. No additional price reductions will be
               considered during the term of the Agreement.

          6.   NEW PRODUCTS/TECHNOLOGY

               All new procedures and technology will be added under the terms
               and conditions of this agreement. Manufacturer is obligated to
               maintain technological parity with other Manufacturers to insure
               that MHA members are offered state of the art testing methods.

               In the event SPECIALTY plans to make a change to a test
               (methodology, specimen, reference ranges, etc.), we attempt to
               give clients thirty (30) days advance notice. An assessment is
               made concerning the necessity and advisability of the change in
               terms of our client's needs and ease of use. The completion of a
               TIF (Test Information Form) form sets off a series of activities
               that result in: (1) the test performance and validation data
               being comprehensively reviewed, (2) the test being changed in the
               computer with a note appended which clearly announces the change,
               (3) letters notifying clients of the change being sent via fax,
               autodial printer and/or mail, (4) follow-up to insure that the
               test is being performed and results reported as indicated in the
               change letter.

               Tests not previously listed in the Directory of Services (DOS) or
               as sendouts, do not require lead-time for notification. We will
               send out informational materials to clients and can send a sample
               report to those clients who typically build the test in their own
               computers for their sendouts.

          7.   RETURN GOODS POLICY

               The Manufacturer must provide a formal policy to MHA members for
               reporting of incorrect results or errors in testing. The policy
               should include the contact person's name and phone number
               responsible for maintaining this policy. In addition, full credit
               will be issued for incorrectly reported tests. Please include
               policy as Exhibit B.

          8.   ENVIRONMENTAL POLICY

               The Manufacturer agrees to recognize and support environmental
               policies and procedures of MHA members pursuant to local, state
               and federal guidelines.

          9.   VALUE-ADDED SERVICES

               If indicated, Manufacturer will provide educational programs to
               MHA members at no charge. Please list services as separate
               Exhibit C.

          10.  PRODUCT RECALL - NOT APPLICABLE

<PAGE>

          11.  MATERIAL SAFETY DATA SHEET (MSDS) - SPECIMEN HANDLING PROCEDURES

               Manufacturer will provide MHA members Material Safety Data Sheets
               and procedures relative to specimen handling and transportation,
               as applicable. Submit as Exhibit D.

          12.  TESTING SITES

               / X / Primary Testing Site

               Company Name                  Specialty Laboratories, Inc.
               Address                       2211 Michigan Avenue
                                             -------------------------------
               City/State/Zip                Santa Monica, CA 90404
                                             -------------------------------
               Telephone                     (310) 828-1492
                                             -------------------------------
               Contact Name                  Michael K. Bond, Director, Contract
                                             -------------------------------
                                             Administration
                                             -------------------------------

                /   /    Regional Sites-Supply a list - NOT APPLICABLE

          13.  MINIMUM ORDER

               Direct:     / X / None        / / Other
                                                        ---------------

               / /  Through distribution. Per servicing distributor's policy.

          14.  TESTING TURNAROUND AND FREQUENCY OF TESTING

               Enclosed as Exhibit F, a copy of Manufacturers frequency of
               testing and any other polices relating to special test batching
               or turnaround time.

          15.  SAMPLES

               Manufacturer will maintain a policy for rejecting unacceptable
               specimen. Attach a copy of Manufacturers policy for specimen
               rejection and a method of notification to members in Exhibit G.

          16.  PAYMENT TERMS

               Direct:   / X / Net 30 days    / / Other
                                                          ---------------

               Explain any exceptions to direct account billing as Exhibit K.
               There are no exceptions to direct account billing, except when
               required by regulatory guidelines.

<PAGE>

          17.  INSURANCE

               Manufacturer will be required to maintain product liability
               insurance for a minimum of $1,000,000. Please provide a statement
               of coverage in Exhibit H.

          18.  INDEMNIFICATION, WARRANTIES, SPECIFICATIONS

               Each party agrees to mutually indemnify and hold harmless, their
               directors, officers, employees, and agents from and against any
               and all claims, actions, or liabilities of any nature which may
               be assessed against them by third parties in connection with the
               performance of services under this Agreement.

          19.  SALES DEVELOPMENT PROGRAM

               In consideration of the administrative and sales development
               services provided by MHA, Manufacturer will pay MHA a sales
               development fee in an amount equal to [***]* of the net purchases
               made by members, as determined from distributor records. MHA
               represents and warrants that fees or other amounts received from
               manufacturers are disclosed in accordance with the requirements
               of 42 CFR Part 1001.952(j). The purpose of this fee is to support
               MHA sales and marketing efforts in connection with this
               agreement. The fee will be computed and paid monthly within
               thirty (30) days after the last day of the month (payment due
               date). If fee cannot be reported and paid by payment due date, an
               estimated payment equal to 100% of prior payment will be required
               within 15 days after payment due date.

               CHECKS FOR SALES DEVELOPMENT PAYMENTS SHOULD BE MADE PAYABLE AND
               MAILED TO MHA, 25-A VREELAND ROAD, SUITE 203, FLORHAM PARKLAND NJ
               07932.

               In order to assist MHA and its representatives, Manufacturer
               agrees that a qualified Manufacturer sales representative will
               call on MHA members as needed. Furthermore, Manufacturer will
               provide MHA monthly reports showing total purchases in units and
               dollars by product code. These reports will be provided in an
               electronic format as outlined on Attachment C, unless an
               alternative format is mutually agreeable.

          20.  MANAGEMENT REPORTS

               Manufacturer will be expected to submit on a monthly basis in the
               format described in Attachment C. Further, the information data
               must be provided as indicated below:

               1)   Combined sales for each facility. (Totaled for group)
               2)   Sales by product for each facility, subtotaled by facility.
                    (Totaled for group)

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         * PORTIONS OF THIS PAGE HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

<PAGE>

               NOTE: IN AN EFFORT TO BETTER SERVE OUR HEALTHCARE FACILITIES AND
               OUR CONTRACT VENDORS, MHA WILL UTILIZE THE "HEALTH INDUSTRY
               NUMBER" (HIN) AS DESCRIBED BY THE HEALTH INDUSTRY BUSINESS
               COMMUNICATION COUNCIL (HIBCC). MHA WILL USE THIS NUMBER SYSTEM
               FOR ALL DATA INTERCHANGE WITH VENDORS AND MEMBERS.

               Currently using the HIN? ( ) Yes ( X ) No

          21.  RECORDS

               a.   It is agreed that, in the event the value or cost of the
                    services rendered to the MHA member under this contract
                    equals or exceeds the sum of $10,000 in any twelve (12)
                    month period, Manufacturer shall maintain and preserve all
                    books, records and documents pertaining to its performance
                    of services for the MHA member for four (4) full years
                    following performance of those services and during that time
                    shall make available upon request of the Secretary of the
                    Department of Health and Human Services or the Comptroller
                    General of the United States or their duly authorized
                    representative this contract and all books, records and
                    documents necessary to verify the nature and extent of such
                    costs.

               b.   It is further agreed that should Manufacturer carry out any
                    of its obligations under this contract through a subcontract
                    having a value or cost equal to or exceeding S 10,000 over
                    any twelve (12) month period, with a related organization,
                    said subcontract shall require the related organization to
                    maintain and preserve all books, records and documents
                    pertaining to its performance and services for Manufacturer
                    for four (4) full years following performance of those
                    services and during that time, to make available upon
                    request of the Secretary of the Department of Health and
                    Human Services or the Comptroller General of the United
                    States or their duly authorized representative, the
                    subcontract and all books, records and documents necessary
                    to verify the nature and extent of such costs.

     22.  CANCELLATION

               In the event that either Manufacturer or MHA believes that the
               other is in default in performance of the terms of this
               agreement, thirty (30) days written notice shall be given to such
               party specifying the nature of the default and specifying that if
               such default is not cured within thirty (30) days of the date of
               notice, the other party shall have the right to cancel the
               agreement by giving sixty (60) days written notice of its intent
               to cancel.

     23.  ELIGIBILITY TO PARTICIPATE

          This proposal is extended to all MHA members and to Veterans
          Administration facilities on MHA membership listing with the exception
          of those type or facilities you list below:

<PAGE>

          Non eligible facilities: NO EXCEPTIONS

          1)                                4)
             -----------------------            -----------------------
          2)                                5)
             -----------------------            -----------------------
          3)                                6)
             -----------------------            -----------------------

          IF YOU LISTED ANY TYPE OF FACILITY TO WHICH THIS PRICING WOULD NOT BE
          EXTENDED, PLEASE SUBMIT AN ALTERNATE PROPOSAL FOR THOSE FACILITIES. BE
          SURE TO CLEARLY IDENTIFY WITHIN YOUR PROPOSAL THE TYPES OF FACILITIES
          (I.E., HMO, NURSING HOME) WHICH ARE ELIGIBLE FOR YOUR ALTERNATE
          PRICING.

          MHA reserves the right to add or delete members during the period of
          this agreement by providing the Manufacturer THIRTY (30) DAYS WRITTEN
          NOTICE.

          SPECIALTY WILL NOT AUTOMATICALLY IMPLEMENT CONTRACT COVERAGE TO NEW
          PARTICIPATING FACILITIES, BUT CONTACT THE NEW MEMBER(S) IN AN EFFORT
          TO OBTAIN COMMITMENT.

     NOTE: PROPOSAL/AGREEMENT ENCOMPASSES ALL MHA MEMBERS AND THE SELECTED VA
     FACILITIES ON THE MHA MEMBERSHIP LISTING. NO EXCEPTIONS. SPECIALTY WILL NOT
     ACCEPT PENALTY FOR INCORRECT INVOICES AFTER THE EFFECTIVE DATE OF
     PARTICIPATION, CONTINGENT UPON CREDIT APPROVAL AND MHA MEMBER SIGNING
     MEMBER AGREEMENT. A COPY OF THE MEMBER AGREEMENT IS ATTACHED AS EXHIBIT I.

     24.  REVIEW OF MANUFACTURER RECORDS

          a.   At any time while this agreement is in effect, MHA reserves the
               right upon giving reasonable notice to review the records of the
               Manufacturer for the purpose of verifying reported sales to
               members and the calculation of the sales development fee outlined
               in Paragraph 21. These records should be made available at the
               Manufacturer's business office during normal business hours. The
               cost associated with this review will be the responsibility of
               MHA unless it is determined that the sales development fee
               payment has been understated by twenty-five percent (25% ) or
               more.

          b.   MHA acknowledges that records and information received during any
               audit are confidential in nature, and MHA agrees not to disclose
               same to persons or parties not participating in this or MHA
               programs.

          25.  TRANSFERABILITY

               In the event that MHA and/or Specialty Laboratories, Inc.
               transfers ownership and/or marketing rights of products listed on
               Exhibit A to another entity during the term of this agreement,
               either party's rights and privileges as expressed by the terms
               and conditions contained herein shall also be transferred upon
               the agreement and consent of MHA and Specialty Laboratories Inc.

<PAGE>

          26.  SUBMISSION OF DOCUMENT

               Submission of this document constitutes a legal offer. Therefore,
               should any or all of said document be accepted and in exchange
               for being designated as a contracted Manufacturer, said
               Manufacturer hereby agrees to be legally bound to provide each
               MHA facility, present and future on an as desired basis, any
               items encompassed in said document pursuant to the terms of the
               respective agreement. This will be subject to credit approval and
               execution of Member Agreement.

<TABLE>
<CAPTION>

ACCEPTED BY:                                               ACCEPTED FOR:
MANAGED HEALTHCARE ASSOCIATES                              SPECIALTY LABORATORIES

<S>            <C>                                         <C>   <C>

By                        Kenneth L. Flood                 By                   Michael K. Bond
              -------------------------------------              ------------------------------------
                            Please Print                                          Please Print

By                      /s/ KENNETH L. FLOOD               By                 /s/ MICHAEL K. BOND
              -------------------------------------              ------------------------------------
                             Signature                                             Signature

Title        Vice President-Laboratory Services            Title    Director, Contract Administration
              -------------------------------------              ------------------------------------

Date                            5/31/00                    Date                       6/7/00
              -------------------------------------              ------------------------------------
</TABLE>

SIGNATURE BY BOTH PARTIES CONSTITUTES A LEGAL AND BINDING AGREEMENT

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