Document:

<PAGE>

                                                                     Exhibit 4.1
                             BRIO TECHNOLOGY, INC.

            AMENDED AND RESTATED 1998 EMPLOYEE STOCK PURCHASE PLAN

     The following constitute the provisions of the Amended and Restated 1998
Employee Stock Purchase Plan of Brio Technology, Inc.

     1.   Purpose. The purpose of the Plan is to provide employees of the
Company and its Designated Subsidiaries with an opportunity to purchase Common
Stock of the Company. It is the intention of the Company to have the Plan
qualify as an "Employee Stock Purchase Plan" under Section 423 of the Internal
Revenue Code of 1986, as amended. The provisions of the Plan shall, accordingly,
be construed so as to extend and limit participation in a manner consistent with
the requirements of that section of the Code.

     2.   Definitions.

          (a)  "Board" shall mean the Board of Directors of the Company.

          (b)  "Code" shall mean the Internal Revenue Code of 1986, as amended.

          (c)  "Common Stock" shall mean the Common Stock of the Company.

          (d)  "Company" shall mean Brio Technology, Inc., a Delaware
corporation.

          (e)  "Compensation" shall mean total cash compensation received by an
Employee from the Company or a Designated Subsidiary. By way of illustration,
but not limitation, Compensation includes regular compensation such as salary,
wages, overtime, shift differentials, bonuses, commissions and incentive
compensation, but excludes relocation, expense reimbursements, tuition or other
reimbursements and income realized as a result of participation in any stock
option, stock purchase, or similar plan of the Company or any Designated
Subsidiary.

          (f)  "Continuous Status as an Employee" shall mean the absence of any
interruption or termination of service as an Employee. Continuous Status as an
Employee shall not be considered interrupted in the case of a leave of absence
agreed to in writing by the Company, provided that such leave is for a period of
not more than 90 days or reemployment upon the expiration of such leave is
guaranteed by contract or statute.

          (g)  "Contributions" shall mean all amounts credited to the account of
a participant pursuant to the Plan.

          (h)  "Designated Subsidiaries" shall mean the Subsidiaries which have
been designated by the Board from time to time in its sole discretion as
eligible to participate in the Plan.

          (i)  "Employee" shall mean any person, including an Officer, who is
customarily employed for at least twenty (20) hours per week and more than five
(5) months in a calendar year by the Company or one of its Designated
Subsidiaries.

          (j)  "Exchange Act" shall mean the Securities Exchange Act of 1934, a
amended.

          (k)  "Purchase Date" shall mean the last day of each Purchase Period
of the Plan.

          (l)  "Offering Date" shall mean the first business day of each
Offering Period of the Plan.

          (m)  "Offering Period" shall mean a period of twenty-four (24) months

                                       1
<PAGE>

commencing on May 1 and November 1 of each year, except for the first Offering
Period as set forth in Section 4(a).

          (n)  "Officer" shall mean a person who is an officer of the Company
within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

          (o)  "Plan" shall mean this Employee Stock Purchase Plan.

          (p)  "Purchase Period" shall mean a period of six (6) months within
an Offering Period, except for the first Purchase Period as set forth in Section
4(b).

          (q)  "Subsidiary" shall mean a corporation, domestic or foreign, of
which not less than 50% of the voting shares are held by the Company or a
Subsidiary, whether or not such corporation now exists or is hereafter organized
or acquired by the Company or a Subsidiary.

     3.   Eligibility.

          (a)  Any person who is an Employee as of the Offering Date of a given
Offering Period shall be eligible to participate in such Offering Period under
the Plan, subject to the requirements of Section 5(a) and the limitations
imposed by Section 423(b) of the Code.

          (b)  Any provisions of the Plan to the contrary notwithstanding, no
Employee shall be granted an option under the Plan (i) if, immediately after the
grant, such Employee (or any other person whose stock would be attributed to
such Employee pursuant to Section 424(d) of the Code) would own stock and/or
hold outstanding options to purchase stock possessing five percent (5%) or more
of the total combined voting power or value of all classes of stock of the
Company or of any subsidiary of the Company, or (ii) if such option would permit
his or her rights to purchase stock under all employee stock purchase plans
(described in Section 423 of the Code) of the Company and its Subsidiaries to
accrue at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) of fair
market value of such stock (determined at the time such option is granted) for
each calendar year in which such option is outstanding at any time.

     4.   Offering Periods and Purchase Periods.

          (a)  Offering Periods.  The Plan shall be implemented by a series of
Offering Periods of twenty-four (24) months duration, with new Offering Periods
commencing on or about May 1 and November 1 of each year (or at such other time
or times as may be determined by the Board of Directors).  The first Offering
Period shall commence on the beginning of the effective date of the Registration
Statement on Form S-1 for the initial public offering of the Company's Common
Stock (the "IPO Date") and continue until April 30, 2000.  The Plan shall
continue until terminated in accordance with Section 19 hereof.  The Board of
Directors of the Company shall have the power to change the duration and/or the
frequency of Offering Periods with respect to future offerings without
shareholder approval if such change is announced at least fifteen (15) days
prior to the scheduled beginning of the first Offering Period to be affected.
Eligible employees may not participate in more than one Offering Period at a
time.

    (b)  Purchase Periods.  Each Offering Period shall consist of four (4)
consecutive purchase periods of six (6) months duration.  The last day of each
Purchase Period shall be the "Purchase Date" for such Purchase Period.  A
Purchase Period commencing on May 1 shall end on the next October 31.  A
Purchase Period commencing on November 1 shall end on the next April 30.  The
first Purchase Period shall commence on the IPO Date and shall end on October
31, 1998.  The Board of Directors of the Company shall have the power to change
the duration and/or frequency of Purchase Periods with respect to future
purchases without shareholder approval if such change is announced at least
fifteen (15) days prior to the scheduled beginning of the first Purchase Period
to be affected.

                                       2
<PAGE>

     5.   Participation.

          (a)  An eligible Employee may become a participant in the Plan by
completing a subscription agreement on the form provided by the Company and
filing it with the Company's payroll office prior to the applicable Offering
Date, unless a later time for filing the subscription agreement is set by the
Board for all eligible Employees with respect to a given offering.  The
subscription agreement shall set forth the percentage of the participant's
Compensation (which shall be not less than 1% and not more than 20%) to be paid
as Contributions pursuant to the Plan.

          (b)  Payroll deductions shall commence on the first payroll following
the Offering Date and shall end on the last payroll paid on or prior to the last
Purchase Period of the Offering Period to which the subscription agreement is
applicable, unless sooner terminated by the participant as provided in Section
10.

     6.   Method of Payment of Contributions.

          (a)  At the time a participant files his or her subscription
agreement, the participant shall elect to have payroll deductions made on each
payday during the Offering Period in an amount not less than one percent (1%)
and not more than twenty percent (20%) of such participant's Compensation on
each such payday. All payroll deductions made by a participant shall be credited
to his or her account under the Plan. A participant may not make any additional
payments into such account.

          (b)  A participant may discontinue his or her participation in the
Plan as provided in Section 10, or, during the Offering Period may increase or
decrease the rate of his or her Contributions during such Offering Period by
completing and filing with the Company a new subscription agreement; provided,
however, that no participant may effect more than one increase or decrease
during a Purchase Period. The change in rate shall be effective as of the
beginning of the next calendar month following the date of filing of the new
subscription agreement, if the agreement is filed at least ten (10) business
days prior to such date and, if not, as of the beginning of the next succeeding
calendar month.

          (c)  Notwithstanding the foregoing, to the extent necessary to comply
with Section 423(b)(8) of the Code and Section 3(b) herein, a participant's
payroll deductions may be decreased to 0% at such time during any Offering
Period which is scheduled to end during the current calendar year that the
aggregate of all payroll deductions accumulated with respect to such Offering
Period and any other Offering Period ending within the same calendar year equal
$21,250.  Payroll deductions shall re-commence at the rate provided in such
participant's subscription Agreement at the beginning of the first Offering
Period which is scheduled to end in the following calendar year, unless
terminated by the participant as provided in Section 10.

     7.   Grant of Option.

          (a)  On the Offering Date of each Offering Period, each eligible
Employee participating in such Offering Period shall be granted an option to
purchase on each Purchase Date a number of shares of the Company's Common Stock
determined by dividing such Employee's Contributions accumulated prior to such
Purchase Date and retained in the participant's account as of the Purchase Date
by the lower of (i) eighty-five percent (85%) of the fair market value of a
share of the Company's Common Stock on the Offering Date, or (ii) eighty-five
percent (85%) of the fair market value of a share of the Company's Common Stock
on the Purchase Date; provided however, that the maximum number of shares an
Employee may purchase during each calendar year of an Offering Period shall be
determined at the Offering Date by dividing $25,000 by the fair market value of
a share of the Company's Common Stock on the Offering Date, and provided further
that such purchase shall be subject to the limitations set forth in Sections
3(b) and 13.  The fair market value of a share of the Company's Common Stock
shall be determined as provided in Section 7(b).

                                       3
<PAGE>

          (b)  The option price per share of the shares offered in a given
Offering Period shall be the lower of:  (i) 85% of the fair market value of a
share of the Common Stock of the Company on the Offering Date; or (ii) 85% of
the fair market value of a share of the Common Stock of the Company on the
Purchase Date.  The fair market value of the Company's Common Stock on a given
date shall be determined by the Board in its discretion based on the closing
price of the Common Stock for such date (or, in the event that the Common Stock
is not traded on such date, on the immediately preceding trading date), as
reported by the National Association of Securities Dealers Automated Quotation
(Nasdaq) National Market or, if such price is not reported, the mean of the bid
and asked prices per share of the Common Stock as reported by Nasdaq or, in the
event the Common Stock is listed on a stock exchange, the fair market value per
share shall be the closing price on such exchange on such date (or, in the event
that the Common Stock is not traded on such date, on the immediately preceding
trading date), as reported in The Wall Street Journal. For purposes of the
Offering Date under the first Offering Period under the Plan, the fair market
value of a share of the Common Stock of the Company shall be the Price to Public
as set forth in the final prospectus filed with the Securities and Exchange
Commission pursuant to Rule 424 under the Securities Act of 1933, as amended.

     8.   Exercise of Option. Unless a participant withdraws from the Plan as
provided in paragraph 10, his or her option for the purchase of shares will be
exercised automatically on each Purchase Date of an Offering Period, and the
maximum number of full shares subject to the option will be purchased at the
applicable option price with the accumulated Contributions in his or her
account. The shares purchased upon exercise of an option hereunder shall be
deemed to be transferred to the participant on the Purchase Date. No fractional
shares shall be purchased. Any payroll deductions accumulated in a participant's
account which are not sufficient to purchase a full share shall be retained in
the participant's account for the subsequent Purchase Period or Offering Period,
subject to earlier withdrawal by the participant as provided in Section 10. Any
other monies left over in a participant's account after a Purchase Date shall be
returned to the Participant. During his or her lifetime, a participant's option
to purchase shares hereunder is exercisable only by him or her.

     9.   Delivery. As promptly as practicable after each Purchase Date of each
Offering Period, the Company shall arrange the delivery to each participant, as
appropriate, of a certificate representing the shares purchased upon exercise of
his or her option or the deposit of such number of shares with the broker
selected by the Company for administration of Plan stock purchases, as
determined by the Company.

     10.  Voluntary Withdrawal; Termination of Employment.

          (a)  A participant may withdraw all but not less than all the
Contributions credited to his or her account under the Plan at any time at least
five (5) business days prior to each Purchase Date by giving written notice to
the Company in the form provided in the Company.  All of the participant's
Contributions credited to his or her account will be paid to him or her promptly
after receipt of his or her notice of withdrawal and his or her option for the
current period will be automatically terminated, and no further Contributions
for the purchase of shares will be made during the Offering Period.

          (b)  Upon termination of the participant's Continuous Status as an
Employee (as defined in Section 2(f) hereof) prior to the Purchase Date of an
Offering Period for any reason, including retirement or death, the Contributions
credited to his or her account will be returned to him or her or, in the case of
his or her death, to the person or persons entitled thereto under Section 14,
and his or her option will be automatically terminated.

          (c)  In the event an Employee fails to remain in Continuous Status as
an Employee of the Company for at least twenty (20) hours per week during the
Offering Period in which the employee is a participant, he or she will be deemed
to have elected to withdraw from the Plan and the Contributions credited to his
or her account will be returned to him or her and his or her option terminated.

                                       4
<PAGE>

          (d)  A participant's withdrawal from an offering will not have any
effect upon his or her eligibility to participate in a succeeding offering or in
any similar plan which may hereafter be adopted by the Company.

     11.  Automatic Withdrawal.  If the fair market value of the shares on any
of the first three Purchase Dates of an Offering Period is less than the fair
market value of the shares on the Offering Date for such Offering Period, then
every participant shall automatically (i) be withdrawn from such Offering Period
at the close of such Purchase Date and after the acquisition of shares for such
Purchase Period, and (ii) be enrolled in the Offering Period commencing on the
first business day subsequent to such Purchase Period.

     12.  Interest.  No interest shall accrue on the Contributions of a
participant in the Plan.

     13.  Stock.

          (a)  The maximum number of shares of the Company's Common Stock which
shall be made available for sale under the Plan shall be 2,920,578 shares*, plus
an annual increase on the first day of each of the Company's fiscal years in
2000, 2001, 2002, 2003 and 2004 equal to the lesser of 600,000 shares or two
percent (2%) of the shares of Common Stock outstanding on the last day of the
immediately preceding fiscal year, subject to adjustment upon changes in
capitalization of the Company as provided in Section 19. If the total number of
shares which would otherwise be subject to options granted pursuant to Section
7(a) on the Offering Date of an Offering Period exceeds the number of shares
then available under the Plan (after deduction of all shares for which options
have been exercised or are then outstanding), the Company shall make a pro rata
allocation of the shares remaining available for option grant in as uniform a
manner as shall be practicable and as it shall determine to be equitable. In
such event, the Company shall give written notice of such reduction of the
number of shares subject to the option to each Employee affected thereby and
shall similarly reduce the rate of Contributions, if necessary.

* The 2,920,578 number of shares indicated represents the initial 500,000 shares
  reserved, plus 1,000,000 shares approved by the stockholders in August 1999,
  plus (notwithstanding the clause of Section 13(a) above) the automatic
  increases on April 1, 1999, April 1, 2000 and April 1, 2001.

          (b)  The participant will have no interest or voting right in shares
covered by his or her option until such option has been exercised.

          (c)  Shares to be delivered to a participant under the Plan will be
registered in the name of the participant or in the name of the participant and
his or her spouse.

     14.  Administration.  The Board, or a committee named by the Board, shall
supervise and administer the Plan and shall have full power to adopt, amend and
rescind any rules deemed desirable and appropriate for the administration of the
Plan and not inconsistent with the Plan, to construe and interpret the Plan, and
to make all other determinations necessary or advisable for the administration
of the Plan.  The composition of the committee shall be in accordance with the
requirements to obtain or retain any available exemption from the operation of
Section 16(b) of the Exchange Act pursuant to Rule 16b-3 promulgated thereunder.

     15.  Designation of Beneficiary.

          (a)  A participant may file a written designation of a beneficiary who
is to receive any shares and cash, if any, from the participant's account under
the Plan in the event of such participant's death subsequent to the end of a
Purchase Period but prior to delivery to him or her of such shares and cash.  In
addition, a participant may file a written designation of a beneficiary who is
to receive any cash from the participant's account under the Plan in the event
of such participant's death prior to the Purchase Date of an Offering Period.
If a participant is married and the designated beneficiary is not the spouse,
spousal consent shall be required for such designation to be effective.

                                       5
<PAGE>

          (b)  Such designation of beneficiary may be changed by the participant
(and his or her spouse, if any) at any time by written notice.  In the event of
the death of a participant and in the absence of a beneficiary validly
designated under the Plan who is living at the time of such participant's death,
the Company shall deliver such shares and/or cash to the executor or
administrator of the estate of the participant, or if no such executor or
administrator has been appointed (to the knowledge of the Company), the Company,
in its discretion, may deliver such shares and/or cash to the spouse or to any
one or more dependents or relatives of the participant, or if no spouse,
dependent or relative is known to the Company, then to such other person as the
Company may designate.

     16.  Transferability.  Neither Contributions credited to a participant's
account nor any rights with regard to the exercise of an option or to receive
shares under the Plan may be assigned, transferred, pledged or otherwise
disposed of in any way (other than by will, the laws of descent and
distribution, or as provided in Section 15) by the participant.  Any such
attempt at assignment, transfer, pledge or other disposition shall be without
effect, except that the Company may treat such act as an election to withdraw
funds in accordance with Section 10.

     17.  Use of Funds.  All Contributions received or held by the Company under
the Plan may be used by the Company for any corporate purpose, and the Company
shall not be obligated to segregate such Contributions.

     18.  Reports.  Individual accounts will be maintained for each participant
in the Plan.  Statements of account will be given to participating Employees
promptly following the Purchase Date, which statements will set forth the
amounts of Contributions, the per share purchase price, the number of shares
purchased and the remaining cash balance, if any.

     19.  Adjustments Upon Changes in Capitalization; Corporate Transactions.

          (a)  Adjustment. Subject to any required action by the shareholders
of the Company, the number of shares of Common Stock covered by each option
under the Plan which has not yet been exercised and the number of shares of
Common Stock which have been authorized for issuance under the Plan but have not
yet been placed under option (collectively, the "Reserves"), as well as the
price per share of Common Stock covered by each option under the Plan which has
not yet been exercised, shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of
the Common Stock, or any other increase or decrease in the number of shares of
Common Stock effected without receipt of consideration by the Company; provided,
however, that conversion of any convertible securities of the Company shall not
be deemed to have been "effected without receipt of consideration". Such
adjustment shall be made by the Board, whose determination in that respect shall
be final, binding and conclusive. Except as expressly provided herein, no issue
by the Company of shares of stock of any class, or securities convertible into
shares of stock of any class, shall affect, and no adjustment by reason thereof
shall be made with respect to, the number or price of shares of Common Stock
subject to an option.

     (b)  Corporate Transactions. In the event of the proposed dissolution
or liquidation of the Company, the Offering Period will terminate immediately
prior to the consummation of such proposed action, unless otherwise provided by
the Board. In the event of a proposed sale of all or substantially all of the
assets of the Company, or the merger of the Company with or into another
corporation, each option under the Plan shall be assumed or an equivalent option
shall be substituted by such successor corporation or a parent or subsidiary of
such successor corporation, unless the Board determines, in the exercise of its
sole discretion and in lieu of such assumption or substitution, to shorten the
Offering Period then in progress by setting a new Purchase Date (the "New
Purchase Date"). If the Board shortens the Offering Period then in progress in
lieu of assumption or substitution in the event of a merger or sale of assets,
the Board shall notify each participant in writing, at least ten (10) days prior
to the New Purchase Date, that the Purchase Date for his or her option has been

                                       6
<PAGE>

changed to the New Purchase Date and that his or her option will be exercised
automatically on the New Purchase Date, unless prior to such date he or she has
withdrawn from the Offering Period as provided in Section 10. For purposes of
this paragraph, an option granted under the Plan shall be deemed to be assumed
if, following the sale of assets or merger, the option confers the right to
purchase, for each share of option stock subject to the option immediately prior
to the sale of assets or merger, the consideration (whether stock, cash or other
securities or property) received in the sale of assets or merger by holders of
Common Stock for each share of Common Stock held on the effective date of the
transaction (and if such holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding
shares of Common Stock); provided, however, that if such consideration received
in the sale of assets or merger was not solely common stock of the successor
corporation or its parent (as defined in Section 424(e) of the Code), the Board
may, with the consent of the successor corporation and the participant, provide
for the consideration to be received upon exercise of the option to be solely
common stock of the successor corporation or its parent equal in fair market
value to the per share consideration received by holders of Common Stock and the
sale of assets or merger.

     The Board may, if it so determines in the exercise of its sole discretion,
also make provision for adjusting the Reserves, as well as the price per share
of Common Stock covered by each outstanding option, in the event that the
Company effects one or more reorganizations, recapitalizations, rights offerings
or other increases or reductions of shares of its outstanding Common Stock, and
in the event of the Company being consolidated with or merged
into any other corporation.

     20.  Amendment or Termination.

          (a)  The Board of Directors of the Company may at any time terminate
or amend the Plan. Except as provided in Section 19, no such termination may
affect options previously granted, nor may an amendment make any change in any
option theretofore granted which adversely affects the rights of any
participant. In addition, to the extent necessary to comply with Rule 16b-3
under the Exchange Act, or under Section 423 of the Code (or any successor rule
or provision or any applicable law or regulation), the Company shall obtain
shareholder approval in such a manner and to such a degree as so required.

          (b)  Without shareholder consent and without regard to whether any
participant rights may be considered to have been adversely affected, the Board
(or its committee) shall be entitled to change the Offering Periods and Purchase
Periods, limit the frequency and/or number of changes in the amount withheld
during an Offering Period, establish the exchange ratio applicable to amounts
withheld in a currency other than U.S. dollars, permit payroll withholding in
excess of the amount designated by a participant in order to adjust for delays
or mistakes in the Company's processing of properly completed withholding
elections, establish reasonable waiting and adjustment periods and/or accounting
and crediting procedures to ensure that amounts applied toward the purchase of
Common Stock for each participant properly correspond with amounts withheld from
the participant's Compensation, and establish such other limitations or
procedures as the Board (or its committee) determines in its sole discretion
advisable which are consistent with the Plan.

     21.  Notices.  All notices or other communications by a participant to the
Company under or in connection with the Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.

     22.  Conditions Upon Issuance of Shares.  Shares shall not be issued with
respect to an option unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the
Securities Act of 1933, as amended, the Exchange Act, the rules and regulations
promulgated thereunder, and the requirements of any stock exchange upon which
the shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.

                                       7
<PAGE>

     As a condition to the exercise of an option, the Company may require
the person exercising such option to represent and warrant at the time of any
such exercise that the shares are being purchased only for investment and
without any present intention to sell or distribute such shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned applicable provisions of law.

     23.  Term of Plan; Effective Date.  The Plan shall become effective upon
the earlier to occur of its adoption by the Board of Directors or its approval
by the shareholders of the Company.  It shall continue in effect for a term of
twenty (20) years unless sooner terminated under Section 20.

     24.  Additional Restrictions of Rule 16b-3.  The terms and conditions of
options granted hereunder to, and the purchase of shares by, persons subject to
Section 16 of the Exchange Act shall comply with the applicable provisions of
Rule 16b-3.  This Plan shall be deemed to contain, and such options shall
contain, and the shares issued upon exercise thereof shall be subject to, such
additional conditions and restrictions as may be required by Rule 16b-3 to
qualify for the maximum exemption from Section 16 of the Exchange Act with
respect to Plan transactions.

                                       8
<PAGE>

                             BRIO TECHNOLOGY, INC.

            AMENDED AND RESTATED 1998 EMPLOYEE STOCK PURCHASE PLAN
                            SUBSCRIPTION AGREEMENT

                                                             New Election ______
                                                       Change of Election ______

     1.   I, ________________________, hereby elect to participate in the BRIO
TECHNOLOGY, INC. Amended and Restated 1998 Employee Stock Purchase Plan (the
"Plan") for the Offering Period ______________, _____ to _______________, _____,
and subscribe to purchase shares of the Company's Common Stock in accordance
with this Subscription Agreement and the Plan.

     2.   I elect to have Contributions in the amount of _____% of my
Compensation, as those terms are defined in the Plan, applied to this purchase.
I understand that this amount must not be less than 1% and not more than 20% of
my Compensation during the Offering Period.  (Please note that no fractional
percentages are permitted).

     3.   I hereby authorize payroll deductions from each paycheck during the
Offering Period at the rate stated in Item 2 of this Subscription Agreement. I
understand that all payroll deductions made by me shall be credited to my
account under the Plan and that I may not make any additional payments into such
account. I understand that all payments made by me shall be accumulated for the
purchase of shares of Common Stock at the applicable purchase price determined
in accordance with the Plan. I further understand that, except as otherwise set
forth in the Plan, shares will be purchased for me automatically on the Purchase
Date of each Offering Period unless I otherwise withdraw from the Plan by giving
written notice to the Company for such purpose.

     4.   I understand that I may discontinue at any time prior to the Purchase
Date my participation in the Plan as provided in Section 10 of the Plan. I also
understand that I can increase or decrease the rate of my Contributions to not
less than 1% and to not more than 20% of my Compensation on one occasion only
for each rate change during any Purchase Period by completing and filing a new
Subscription Agreement with such increase or decrease taking effect as of the
beginning of the calendar month following the date of filing of the new
Subscription Agreement, if filed at least five (5) business days prior to the
beginning of such month. Further, I may change the rate of deductions for future
Offering Periods by filing a new Subscription Agreement, and any such change
will be effective as of the beginning of the next Offering Period. In addition,
I acknowledge that, unless I discontinue my participation in the Plan as
provided in Section 10 of the Plan, my election will continue to be effective
for each successive Offering Period.

     5.   I have received a copy of the Company's most recent description of the
Plan and a copy of the complete "BRIO TECHNOLOGY, INC. Amended and Restated 1998
Employee Stock Purchase Plan." I understand that my participation in the Plan is
in all respects subject to the terms of the Plan.

     6.   Shares purchased for me under the Plan should be issued in the name(s)
of (name of employee or employee and spouse only):

                                            ____________________________________

                                            ____________________________________

     7.   In the event of my death, I hereby designate the following as my
beneficiary(ies) to receive all payments and shares due to me under the Plan:

                                       9
<PAGE>

NAME:  (Please print)            _______________________________________________
                                      (First)       (Middle)        (Last)

_____________________________    _______________________________________________
(Relationship)                       (Address)

                                 _______________________________________________

     8.   I understand that if I dispose of any shares received by me pursuant
to the Plan within 2 years after the Offering Date (the first day of the
Offering Period during which I purchased such shares) or within 1 year after the
Purchase Date, I will be treated for federal income tax purposes as having
received ordinary compensation income at the time of such disposition in an
amount equal to the excess of the fair market value of the shares on the
Purchase Date over the price which I paid for the shares, regardless of whether
I disposed of the shares at a price less than their fair market value at the
Purchase Date. The remainder of the gain or loss, if any, recognized on such
disposition will be treated as capital gain or loss.

     I hereby agree to notify the Company in writing within 30 days after the
date of any such disposition, and I will make adequate provision for federal,
state or other tax withholding obligations, if any, which arise upon the
disposition of the Common Stock. The Company may, but will not be obligated to,
withhold from my compensation the amount necessary to meet any applicable
withholding obligation including any withholding necessary to make available to
the Company any tax deductions or benefits attributable to the sale or early
disposition of Common Stock by me.

     9.   If I dispose of such shares at any time after expiration of the 2-year
and 1-year holding periods, I understand that I will be treated for federal
income tax purposes as having received compensation income only to the extent of
an amount equal to the lesser of (1) the excess of the fair market value of the
shares at the time of such disposition over the purchase price which I paid for
the shares under the option, or (2) 15% of the fair market value of the shares
on the Offering Date. The remainder of the gain or loss, if any, recognized on
such disposition will be treated as capital gain or loss.

     I understand that this tax summary is only a summary and is subject to
change. I further understand that I should consult a tax advisor concerning the
tax implications of the purchase and sale of stock under the Plan.

     10.  I hereby agree to be bound by the terms of the Plan.  The
effectiveness of this Subscription Agreement is dependent upon my eligibility to
participate in the Plan.

SIGNATURE:______________________________________

SOCIAL SECURITY #:______________________________

DATE:___________________________________________

SPOUSE'S SIGNATURE (necessary
if beneficiary is not spouse):

_________________________________________________
(Signature)

_________________________________________________
(Print name)

                                       10
<PAGE>

                             BRIO TECHNOLOGY, INC.

            AMENDED AND RESTATED 1998 EMPLOYEE STOCK PURCHASE PLAN

                             NOTICE OF WITHDRAWAL

     I, __________________________, hereby elect to withdraw my participation in
the BRIO TECHNOLOGY, INC. Amended and Restated 1998 Employee Stock Purchase Plan
(the "Plan") for the Offering Period _________. This withdrawal covers all
Contributions credited to my account and is effective on the date designated
below.

     I understand that all Contributions credited to my account will be paid to
me within ten (10) business days of receipt by the Company of this Notice of
Withdrawal and that my option for the current period will automatically
terminate, and that no further Contributions for the purchase of shares can be
made by me during the Offering Period.

     The undersigned further understands and agrees that he or she shall be
eligible to participate in succeeding offering periods only by delivering to the
Company a new Subscription Agreement.

Dated:___________________           ____________________________________________
                                     Signature of Employee

                                     ___________________________________________
                                     Social Security Number

                                       11<PAGE>

                                                                    Exhibit 10.1

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

                           SPECTRUMEDIX CORPORATION

                         SECURITIES PURCHASE AGREEMENT

                           Dated as of July 9, 2001

                              6% Convertible Note
                               Due July 9, 2004

                                6% Secured Note
                               Due July 9, 2004

                                      and

                           Series C Preferred Stock
                              Warrant to Purchase
                       22,220,113 shares of Common Stock

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                           Page
<S>                                                                                                        <C>
SECTION 1.   DESCRIPTION OF NOTES...................................................................        1

     1.1.    Loan...................................................................................        1

     1.2.    Closing Date...........................................................................        2

SECTION 2.   DESCRIPTION OF PURCHASER STOCK AND WARRANT.............................................        2

     2.1.    Purchase...............................................................................        2

     2.2.    Closing Date...........................................................................        2

SECTION 3.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY..........................................        2

     3.1.    Corporate Organization and Authority...................................................        2

     3.2.    Subsidiaries...........................................................................        2

     3.3.    Capitalization.........................................................................        2

     3.4.    Authority and Approval.................................................................        3

     3.5.    Approvals and Consents; Noncontravention; No Violations; Permits.......................        3

     3.6.    Patents................................................................................        4

     3.7.    Financial Statements...................................................................        4

     3.8.    No Change..............................................................................        5

SECTION 4.   REPRESENTATIONS AND WARRANTIES OF THE PURCHASER........................................        5

     4.1.    Authority and Approval.................................................................        5

     4.2.    No Public Offering.....................................................................        5

SECTION 5.   CLOSING DELIVERIES FOR LOAN AND PURCHASE OF PURCHASER STOCK............................        6

     5.1.    Certificate of Amendment...............................................................        6

     5.2.    Purchaser Stock and Notes..............................................................        6

     5.3.    Security Documents.....................................................................        6

     5.4.    Satisfactory Proceedings...............................................................        6

SECTION 6.   THE NOTES..............................................................................        7

     6.1.    Registration of Notes..................................................................        7

     6.2.    Transfer and Exchange..................................................................        7

     6.3.    Replacement Notes......................................................................        7

     6.4.    Cancellation...........................................................................        7

SECTION 7.   AMENDMENTS, WAIVERS AND CONSENTS.......................................................        8
</TABLE>

                                      -i-
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<S>                                                                                                        <C>
     7.1.    Consent Required.......................................................................        8

     7.2.    Effect of Amendment or Waiver..........................................................        8

SECTION 8.   INTERPRETATION OF AGREEMENTS; DEFINITIONS..............................................        8

     8.1.    Definitions............................................................................        8

     8.2.    Notices................................................................................       10

     8.3.    Successors and Assigns; Assignment.....................................................       10

     8.4.    Severability...........................................................................       10

     8.5.    Governing Law; Consent to Jurisdiction and Venue.......................................       11

     8.6.    Mutual Waiver of Jury Trial............................................................       11

     8.7.    Captions...............................................................................       12
</TABLE>

                                     -ii-
<PAGE>

                                   EXHIBITS

Exhibit A         -        Form of 6% Secured Note
Exhibit B         -        Form of 6% Convertible Note
Exhibit C         -        Form of Security Agreement
Exhibit D         -        Form of Warrant
Exhibit E         -        Form of Certificate of Amendment
<PAGE>

                           SPECTRUMEDIX CORPORATION
                            2124 Old Gatesburg Road
                       State College, Pennsylvania 16803

                         SECURITIES PURCHASE AGREEMENT

                           Dated as of July 9, 2001

                              6% Convertible Note
                               Due July 9, 2004

                                6% Secured Note
                               Due July 9, 2004

                           Series C Preferred Stock
                              Warrant to Purchase
                       22,220,113 shares of Common Stock

I. REICH FAMILY LIMITED PARTNERSHIP
162 West 94/th/ Street
New York, New York 10025

Ladies and Gentlemen:

           The undersigned, SpectruMedix Corporation, a Delaware corporation
(the "Company"), hereby agrees with the I. Reich Family Limited Partnership, a
Delaware limited partnership (the "Purchaser") as follows:

SECTION 1. DESCRIPTION OF NOTES.
           --------------------

           1.1.  Loan.  Subject to the terms and conditions of this Securities
                 ----
Purchase Agreement (this "Agreement"), on the Closing Date, the Company will
authorize the issuance and sale to the Purchaser of (a) the Company's 6% Secured
Note due July 9, 2004 in the principal amount of six hundred thousand dollars
($600,000) in the form attached hereto as Exhibit A (the "Secured Note"), and
                                          ---------
(b) the Company's 6% Convertible Note due July 9, 2004 in the principal amount
of three hundred thousand dollars ($300,000) in the form attached hereto as
Exhibit B (the "Convertible Note," and together with the Secured Note, the
---------
"Notes").  The aggregate proceeds of the rate of the Notes in hereinafter
referred to as the "Loan."

           The obligations under the Secured Note shall be secured by a valid,
perfected and enforceable Lien on and security interest in the Collateral
described in the Security Agreement in the form attached hereto as Exhibit C and
                                                                   ---------
shall be entitled to the benefits thereof.
<PAGE>

           1.2. Closing Date.  Subject to the terms and conditions hereof, the
                ------------
Company agrees to issue and sell to the Purchaser, and the Purchaser agrees to
purchase from the Company, on the Closing Date, the Notes for an aggregate price
of nine hundred thousand dollars ($900,000).  Delivery of the Notes will be made
at the offices of McDermott, Will & Emery, 50 Rockefeller Plaza, New York, New
York, against payment therefor by certified check, on July 9, 2001, or such
other date and time as shall be mutually agreed upon (the "Closing Date").

SECTION 2. DESCRIPTION OF PURCHASER STOCK AND WARRANT
           ------------------------------------------

           2.1. Purchase. Subject to the terms and conditions of this Agreement,
                --------
on the Closing Date, the Company shall have duly authorized the issuance and
sale to the Purchaser of (a) 100 shares of Series C Preferred Stock for the
purchase price of one thousand dollars ($1,000) per share, and (b) a warrant to
purchase 22,220,113 shares of Common Stock in the form attached hereto as
Exhibit D (the "Warrant") for an aggregate purchase price of one hundred
---------
thousand dollars ($100,000).

           2.2. Closing Date. Subject to the terms and conditions hereof, the
                ------------
Company agrees to issue and sell to the Purchaser, and the Purchaser agrees to
purchase from the Company, on the Closing Date, the Purchaser Stock and the
Warrant for an aggregate purchase price of one hundred thousand dollars
($100,000).  Delivery of the Purchaser Stock and the Warrant will be made at the
offices of McDermott, Will & Emery, 50 Rockefeller Plaza, New York, New York,
against payment therefor by certified check on July 9, 2001, or such other date
and time as shall be mutually agreed upon by the Company and the Purchaser.  The
Purchaser Stock and the Warrant delivered to the Purchaser on the Closing Date
will be delivered to the Purchaser in the form of a single certificate issued in
the Purchaser's name and a single warrant issued in the Purchaser's name.

SECTION 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.
           ---------------------------------------------

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

           3.1. Corporate Organization and Authority.  The Company (a) is a
                ------------------------------------
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware; (b) has all requisite corporate power and authority
and all necessary licenses and permits to own and operate its properties and to
carry on its business as now conducted and as presently proposed to be
conducted; and (c) is duly licensed or qualified and is in good standing as a
foreign corporation in each jurisdiction wherein the nature of the business
transacted by it or the nature of the property owned or leased by it makes such
licensing or qualification necessary.

           3.2. Subsidiaries.  The Company has no Subsidiaries.
                ------------

           3.3. Capitalization.
                --------------

                (a) Schedule 3(a) hereto sets forth as of the date hereof the
Company's authorized capital stock, indicating the number of shares issued,
outstanding and reserved for issuance.  All of the outstanding shares of capital
stock of the Company have been duly authorized, and upon the issuance of the
Purchaser Stock, the Purchaser Stock will be authorized

                                      -2-
<PAGE>

and validly issued, fully paid and nonassessable, free of preemptive rights,
except as set forth in Schedule 3(a), and have been offered and issued without
violation of the Securities Act or any applicable state securities or blue sky
law or any preemptive rights of any Person, except as set forth on Schedule
3(a). Schedule 3(a) hereto accurately sets forth, as of the date hereof, the
number of issued and outstanding shares of each of the Company's classes of
capital stock held by each Person.

          (b)  Except as disclosed on Schedule 3(a) hereto other than in
connection with the Agreement, the Notes, the Purchaser Stock and the
transactions contemplated thereby: (i) there are no issued or outstanding
securities that are convertible into or exchangeable for shares of the Company's
capital stock ("Convertible Securities"); (ii) there are no issued or
outstanding subscriptions, options, warrants or other rights to purchase or
acquire any shares of the capital stock of the Company or any Convertible
Securities ("Option Rights"); (iii) no securities holder of the Company is a
party to any voting agreement, voting trust, irrevocable proxy or other
agreement affecting the voting rights of any shares of the Company's capital
stock; (iv) there are no outstanding debt securities of the Company that provide
the holders thereof with voting rights; and (v) no shares of Common Stock are
issuable upon the exercise of any outstanding convertible securities or option
rights of the Company and no additional shares of Common Stock will become
issuable upon exercise of such convertible securities or option on account of
the issuance of the Notes or the Shares.

          (c)  Upon the filing of the Certificates, the Company will have
authorized and reserved shares of Common Stock for issuance upon conversion of
the Note, the Series C Preferred Stock and the Warrant.  When issued, such
Common Stock will be validly issued, fully paid and nonassessable and not
subject to preemptive (or similar) rights, except such rights as shall have been
waived by the applicable holder thereof.

     3.4. Authority and Approval.  The Company has the corporate power and
          ----------------------
authority to execute, deliver and perform the Agreement and the other Basic
Documents and to issue the Notes and the Purchaser Stock and to consummate the
transactions contemplated hereby and thereby.  The execution, delivery and
performance of the Agreement, the other Transaction Documents, the issuance of
the Purchaser Stock, and the consummation of the transactions contemplated
thereby have been duly and validly authorized by all necessary corporate and
stockholder action on the part of the Company and its stockholders.  Each of the
Agreement, the other Transaction Documents and the Notes constitutes the valid
and binding agreement or obligation, as the case may be, of the Company, in each
case enforceable in accordance with its terms.

     3.5. Approvals and Consents; Noncontravention; No Violations; Permits.
          ----------------------------------------------------------------

          (a)  No consent or approval of any governmental or administrative
agency or authority is required or necessary to be obtained by the Company for
the execution, delivery or performance of the Agreement and the other
Transaction Documents and the issuance of the Notes or the Purchaser Stock or
the consummation by the Company of the transactions contemplated thereby.

                                      -3-
<PAGE>

          (b)  No consent, approval or waiver by any Person under any contract,
agreement, indenture, lease, instrument or other document or obligation to which
the Company is a party or by which any of them is bound is required or necessary
for the execution, delivery and performance of the Agreement and the other
Transaction Documents, the issuance of the Notes or the Purchaser Stock by the
Company or the consummation by the Company of the transactions contemplated
thereby.

          (c)  None of the execution, delivery and performance of the Agreement
and the other Transaction Documents, the issuance and sale of the Notes or the
Purchaser Stock, or the consummation by the Company of the transactions
contemplated thereby will (i) violate or conflict with the certificate of
incorporation or bylaws of the Company, (ii) violate or conflict with any law,
regulation, order, judgment, award, administrative interpretation, injunction,
writ or decree applicable to the Company, or by which it or any of its property
or assets is bound, (iii) violate or conflict with, result in a breach of,
result in or permit the acceleration or termination of or constitute a default
under (whether with notice or lapse of time, or both) any material agreement,
instrument, indenture, mortgage, lien, lease or other contract to which the
Company is a party or by which it or any of its property or assets is bound or
(iv) result in the creation of any Lien on any of the property or assets of the
Company.

     3.6. Patents.  Schedule 3.6 contains a list of all material items of
          -------
intellectual property, including all patents, patent rights, trademark rights,
trade names, trade name rights, domain names, service marks, copyrights,
licenses and other proprietary rights material to the business or operations of
the Company (collectively, "Intellectual Property").  Except as indicated in
Schedule 3.6, the Company owns, or has a valid license to use, such Intellectual
Property in the manner currently used by the Company.  The Intellectual Property
listed on Schedule 3.6 is valid and the Company has received no challenges to
the validity thereof.  The Company is not infringing upon or in violation of the
Intellectual Property rights of any other Person.  To the best of the Company's
knowledge, none of the Intellectual Property set forth in Schedule 3.6 is being
infringed upon by any Person or is otherwise used or available for use by any
Person other than the Company.  The Intellectual Property listed in Schedule 3.6
comprises all of the Intellectual Property required to operate the business of
the Company as currently being conducted.

     3.7. Financial Statements.  Except for the Form 10-K due June 30, 2001, the
          --------------------
Company has filed in a timely manner all documents that the Company was required
to file with the Securities and Exchange Commission ("SEC") under Sections 13,
14(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), during the twelve (12) months preceding the date of this
Agreement (collectively, the "SEC Filings"). As of their respective filing dates
(or, if amended, when amended), the SEC Filings complied with the requirements
of the Exchange Act and were complete and correct in all material respects. The
financial statements of the Company included in the Form 10-K and Form 10-Q
dated March 31, 2001 (the "Form 10-Q") comply in all respects with applicable
accounting requirements and with the published rules and regulations of the SEC
with respect thereto. The Financial Statements have been prepared in accordance
with generally accepted accounting principles consistently applied ("GAAP") and
fairly present the financial position of the Company at the dates thereof and
the results of its operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal, recurring adjustments
and the absence of complete footnotes).

                                      -4-
<PAGE>

Except as and to the extent reflected in the Financial Statements, the Company
did not have, as of the date of the Financial Statements, any liabilities or
obligations (other than obligations of continued performance under contracts and
other commitments and arrangements entered into in the ordinary course of
business) which GAAP would require the Company to reflect in the Financial
Statements. There have not been any changes in the assets, liabilities,
financial condition or operations of the Company from that reflected in the
Financial Statements, except changes in the ordinary course of business that
have not had a material adverse effect.

           3.8.  No Change.  Subsequent to the date of filing of the Form 10-Q,
                 ---------
there has not been, except as set forth on the Form 10-Q or previously disclosed
to the Purchaser (i) any material adverse change in the condition (financial or
otherwise), earnings, operations, business or business prospects of the Company
(not including reductions in the cash position of the Company in the ordinary
course consistent with past practices since the date of the Form 10-Q), (ii) any
transaction that is material to the Company, (iii) any obligation, direct or
contingent, incurred by the Company, except obligations incurred in the ordinary
course of business, (iv) any change in the capital stock or outstanding
indebtedness of the Company, except the incurrence of trade debt and obligations
incurred in the ordinary course consistent with past practices, (v) any dividend
or distribution of any kind declared, paid or made on the capital stock of the
Company, (vi) any default in the payment of principal of or interest on any
outstanding debt obligations, or (vii) any loss or damage (whether or not
insured) to the property of the Company which has been sustained or will have
been sustained which has a material adverse effect.

SECTION 4. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.
           -----------------------------------------------

           The purchaser represents to the company that the following
representations and warranties are true and correct as of the date hereof:

           4.1.  Authority and Approval. The Purchaser has all necessary power
                 ----------------------
and authority and has taken all necessary partnership action required for the
due authorization, execution, delivery and performance of this Agreement and the
Transaction Documents. The execution, delivery and performance of this Agreement
and the Transaction Documents will not violate or conflict with the
organizational documents of the Purchaser or any agreement, contract or other
instrument to which the Purchaser is a party. This Agreement and the Transaction
Documents to which the Purchaser is a party constitute legal, valid and binding
obligations of the Purchaser, enforceable against the Purchaser in accordance
with their respective terms.

           4.2.  No Public Offering.  (a)  The Purchaser has been advised and
                 ------------------
understands that the offering and sale of the Note and the Purchaser Stock has
not been registered under the Securities Act, on the grounds that no
distribution or public offering of the Note or the Purchaser Stock is to be
effected and that, in connection therewith, the Company is relying on the
representations of the Purchaser contained in this Section 4.

                 (b)  The Purchaser has been further advised and understands
that no public market now exists for any of the securities being issued to the
Purchaser pursuant to this agreement, and that a public market may never exist
for the Notes or the Purchaser Stock.

                                      -5-
<PAGE>

                 (c)  The Purchaser is purchasing the Notes and the Purchaser
Stock for investment purposes, for its own account and not with a view to, or
for sale in connection with, any distribution thereof in violation of federal or
state securities laws.

                 (d)  By reason of its business or financial experience, the
Purchaser has the capacity to evaluate an investment in the Notes and the
Purchaser Stock.

                 (e)  The Purchaser has been offered the opportunity to ask
questions of representatives of the Company and believes that it has acquired
sufficient information about the Company to reach an informed and knowledgeable
decision about an investment in the Notes and the Purchaser Stock.

                 (f)  Other than the Purchaser, no person has or will have, as a
result of the transactions contemplated by this Agreement, any right, interest
or claim against or upon the Company for any commission, fee or other
compensation as a finder or broker because of any act or omission by the
Purchaser.

                 (g)  The Purchaser is an "accredited investor" as such term is
defined in Rule 501 of Regulation D under the Securities Act.

SECTION 5. CLOSING DELIVERIES FOR LOAN AND PURCHASE OF PURCHASER STOCK.
           -----------------------------------------------------------

           The Purchaser's obligation to purchase the Notes and the Purchaser
Stock on the Closing Date shall be subject to the performance by the Company of
its agreements hereunder which by the terms hereof are to be performed at or
prior to the time of delivery of the Notes and the certificate representing the
Purchaser Stock, and to the following deliveries:

           5.1.  Certificate of Amendment.  The Company's Board of Directors
                 ------------------------
shall have approved and adopted the certificate of amendment to the certificate
of incorporation of the Company designating the Series C Preferred Stock, in the
form attached as Exhibit C hereto (the "Certificate"), the Certificate shall
                 ---------
have been filed with the Secretary of State of the State of Delaware and the
Certificate shall have become effective, in each case, in compliance with all
relevant provisions of the Delaware General Corporation Law.

           5.2.  Purchaser Stock and Notes.  The Purchaser shall have received
                 -------------------------
the Purchaser Stock and the Notes.

           5.3.  Security Documents.  The Company shall have duly executed and
                 ------------------
delivered a Security Agreement, substantially in the form of Exhibit D,
                                                             ---------
financing statements pursuant to the Uniform Commercial Code and other
documents, all in form and substance satisfactory to the Purchaser, as may be
required by the Purchaser to grant to the Purchaser a valid, perfected and
enforceable first priority Lien on, and security interest in, the Collateral.

           5.4.  Satisfactory Proceedings.  The Purchaser shall have received a
                 ------------------------
copy (executed or certified as may be appropriate) of all legal documents or
proceedings taken in connection with the consummation of said transactions,
which shall be reasonably satisfactory in

                                      -6-
<PAGE>

form and substance to the Purchaser, including an opinion of counsel to the
Company satisfactory to the Purchaser.

SECTION 6. THE NOTES.
           ---------

           6.1.  Registration of Notes.  The Company shall cause to be kept at
                 ---------------------
its principal office a register for the registration and transfer of the Notes,
and the Company will register or cause to be registered, as hereinafter provided
and under such reasonable regulations as it may prescribe, the Notes issued
pursuant to this Agreement.

           6.2.  Transfer and Exchange.  The Notes shall not be sold or
                 ---------------------
transferred unless either (a) they first shall have been registered under the
Securities Act or (b) the Company first shall have been furnished with an
opinion of legal counsel, reasonably satisfactory to the Company, to the effect
that such sale or transfer is exempt from the registration requirements of the
Securities Act.  When a Note is presented to the Company with a request to
register a transfer thereof, the Company shall register the transfer as
requested, and, when Notes are presented to the Company with a request to
exchange them for an equal principal amount of Notes of the authorized
denominations, the Company shall make the exchange as requested; provided that
                                                                 --------
every Note presented or surrendered for registration of transfer or exchange
shall be duly endorsed or be accompanied by a written instrument of transfer in
form reasonably satisfactory to the Company and duly executed by the Holder
thereof or his attorney duly authorized in writing.  Any exchange or transfer
shall be without charge.  Prior to due presentment for registration of transfer
of any Note, the Company may deem and treat the Person in whose name any Note is
registered as the absolute owner of such Note for the purpose of receiving
payment of principal of and interest on such Note and for all other purposes
whatsoever, and the Company shall not be affected by notice to the contrary.

           6.3.  Replacement Notes.  Upon receipt of evidence satisfactory to
                 -----------------
the Company of the loss, theft, mutilation or destruction of any Note, and in
the case of any such loss, theft or destruction upon delivery at Holder's
expense of a bond of indemnity in such form and amount as shall be reasonably
satisfactory to the Company, or in the event of such mutilation upon surrender
and cancellation of the Note, the Company will make and deliver without expense
to the holder thereof, a new Note, of like tenor, in lieu of such lost, stolen,
destroyed or mutilated Note; provided, that if the Holder is the owner of any
                             --------
such lost, stolen or destroyed Note, then the affidavit of an authorized
signatory on the Holder's behalf, setting forth the fact of loss, theft or
destruction and of the Holder's ownership of such Note at the time of such loss,
theft or destruction shall be accepted as satisfactory evidence thereof and no
further indemnity (or bond) shall be required as a condition to the execution
and delivery of a new Note other than the written agreement of the Holder to
indemnify the Company for any damages, loss or liability arising out of the
issuance of the new Note.

           6.4.  Cancellation.  The Company shall cancel Notes surrendered to it
                 ------------
for transfer, exchange, payment or conversion.  The Company may not issue new
Notes to replace Notes it has paid or canceled or which have been converted.
All canceled Notes shall be held by the Company and may be destroyed.

                                      -7-
<PAGE>

SECTION 7. AMENDMENTS, WAIVERS AND CONSENTS.
           --------------------------------

           7.1.  Consent Required.  Any term, covenant, agreement or condition
                 ----------------
of this Agreement may, with the consent of the Company, be amended or compliance
therewith may be waived (either generally or in a particular instance and either
retroactively or prospectively), if the Company shall have obtained the Holder's
consent; provided, however, that no such waiver, modification, alteration or
         --------  -------
amendment shall be effective with respect to any Note without the prior written
consent of the Holder thereof if the effect thereof would be (i) to change the
stated maturity of the principal of any Note, (ii) to reduce the principal
amount of any Note, (iii) to change the place or currency of payment of any
amount payable in respect of any Note or (iv) modify this Section 7.1.

           7.2.  Effect of Amendment or Waiver.  Any such amendment or waiver
                 -----------------------------
shall apply equally to all of the Holders and shall be binding upon them, upon
each future Holder of any Note and upon the Company, whether or not such Note
shall have been marked to indicate such amendment or waiver.  No such amendment
or waiver shall extend to or affect any obligation not expressly amended or
waived or impair any right consequent thereon.

SECTION 8. INTERPRETATION OF AGREEMENTS; DEFINITIONS.
           -----------------------------------------

           8.1.  Definitions.  Unless the context otherwise requires, the terms
                 -----------
hereinafter set forth when used herein shall have the following meanings and the
following definitions shall be equally applicable to both the singular and
plural forms of any of the terms herein defined:

           "Affiliate" shall mean any Person (i) which directly or indirectly
through one or more intermediaries, controls, or is controlled by, or is under
common control with, the Company or (ii) who is a director or executive officer
(as such term is defined in Rule 3b-7 under the Exchange Act) of the Company.
The term "control" means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a Person,
whether through the ownership of securities, by contract or otherwise.

           "Agreement" shall have the meaning set forth in Section 1.1.

           "Business Day" shall mean any day that is not a Saturday, a Sunday or
a day on which banks are required or permitted to be closed in the State of New
York.

           "Certificate" shall have the meaning set forth in Section 5.1.

           "Closing Date" shall have the meaning set forth in Section 1.2.

           "Collateral" shall mean all Collateral as such terms are defined in
the Security Documents.

           "Common Stock" shall mean the common stock, par value $.00115 per
share, of the Company.

           "Company" shall mean SpectruMedix Corporation, a Delaware
corporation.

                                      -8-
<PAGE>

          "Holder" shall mean the Purchaser and/or any of its permitted
designees, successors or assigns, in each case who holds any of the Notes;
provided, however, that whenever this Agreement requires that any consent of or
--------  -------
communication or other notice be delivered by or to the Holders, consent of and
communication or notice by or to any Holder or Holders of 51% or more of the
aggregate outstanding principal amount of the Notes shall be deemed effective
and conclusive hereunder.

          "Lien" shall mean any mortgage or deed of trust, pledge,
hypothecation, assignment, deposit arrangement (excluding deposits constituting
a portion of the purchase price of assets acquired in the ordinary course of
business), lien, charge, claim, security interest, easement or encumbrance, or
preference, priority or other security agreement or preferential arrangement of
any kind or nature whatsoever (including, without limitation, any lease or title
retention agreement, any financing lease having substantially the same economic
effect as any of the foregoing, and the filing of, or agreement to give, any
financing statement perfecting a security interest under the Uniform Commercial
Code or comparable law of any jurisdiction).

          "Loan" shall have the meaning set forth in Section 1.1.

          "Notes" shall mean the Company's 6% Secured Note due July 9, 2004,
substantially in the form of Exhibit A, and the Company's 6% Convertible Note
                             ---------
due July 9, 2004, substantially in the form of Exhibit B.
                                               ---------

          "Person" shall mean any individual, sole proprietorship, joint
venture, limited liability company, limited liability partnership, partnership,
corporation, trust, association, institution, unincorporated organization or
other entity, or a government or agency or political subdivision thereof.

          "Purchaser" shall have the meaning set forth in the first paragraph of
this Agreement.

          "Purchaser Stock" shall mean the one hundred (100) shares of Series C
Preferred Stock sold to and purchased by the Purchaser pursuant hereto.

          "Security Documents" shall mean the Security Agreement by the Company
substantially in the form of Exhibit C and each other agreement or other
                             ---------
instrument now existing or hereafter created providing collateral security for
the payment or performance of the Company's obligations hereunder and under the
Notes.

          "Series C Preferred Stock" shall mean the Series C preferred stock of
the Company, par value $1,000 per share, with the rights and privileges as set
forth in the Certificate.

          "Subsidiary" shall mean, with respect to any party, any corporation or
other organization, whether incorporated or unincorporated, of which at least a
majority of the securities or other interests having by their terms ordinary
voting power to elect a majority of the Board of Directors or others performing
similar functions with respect to such corporation or other organization is
directly or indirectly owned or controlled by such party or by any one or more
of its Subsidiaries, or by such party and one or more of its Subsidiaries.  The
term

                                      -9-
<PAGE>

"Subsidiary," when used without reference to any party, shall mean a Subsidiary
of the Company.

          "Transaction Documents" shall mean this Agreement, the Notes, the
Certificate, the Warrant and the Security Documents.

          "Warrant" shall have the meaning set forth in Section 2.1.

          8.2.  Notices.  All notices, demands, requests, or other
                -------
communications which may be or are required to be given, served, or sent by any
party to any other party pursuant to this Agreement shall be in writing and
shall be mailed by first-class, registered or certified mail, return receipt
requested, postage prepaid, or transmitted by hand delivery (including delivery
by courier), or facsimile transmission, addressed as follows:

          (i)   If to the Purchaser:

                I. Reich Family Limited Partnership
                162 West 94/th/  Street
                New York, New York 10025
                Facsimile: (707) 215-7394

          (ii)  If to the Company, to:

                SpectruMedix Corporation
                2124 Old Gatesburg Road
                State College, Pennsylvania 16803
                Facsimile: (814) 867-4513

Each party may designate by notice in writing a new address to which any notice,
demand, request or communication may thereafter be so given, served or sent.
Each notice, demand, request or communication shall be deemed to have been duly
given five business days after being deposited in the mail, postage prepaid, if
mailed; when delivered by hand, if personally delivered; or upon receipt, if
sent by facsimile (followed by a confirmation copy sent by either overnight or
two (2) day courier).

          8.3.  Successors and Assigns; Assignment.  This Agreement shall be
                ----------------------------------
binding upon the Company and its successors and assigns and shall inure to each
Holder's benefit and to the benefit of each Holder's successors and assigns.

          8.4.  Severability.  Should any part of this Agreement for any reason
                ------------
be declared invalid, such decision shall not affect the validity of any
remaining portion, which remaining portion shall remain in force and effect as
if this Agreement had been executed with the invalid portion thereof eliminated
and it is hereby declared the intention of the parties hereto that they would
have executed the remaining portion of this Agreement without including therein
any such part, parts, or portion which may, for any reason, be hereafter
declared invalid.

                                      -10-
<PAGE>

          8.5. Governing Law; Consent to Jurisdiction and Venue.  In all
               ------------------------------------------------
respects, including all matters of construction, validity and performance, this
Agreement and the obligations arising hereunder shall be governed by, and
construed and enforced in accordance with, the laws of the State of New York
applicable to contracts made and performed in such state, without regard to the
principles thereof regarding conflict of laws, and any applicable laws of the
United States of America.  EACH OF THE COMPANY AND THE PURCHASERS CONSENTS TO
PERSONAL JURISDICTION, WAIVES ANY OBJECTION AS TO JURISDICTION OR VENUE, AND
AGREES NOT TO ASSERT ANY DEFENSE BASED ON LACK OF JURISDICTION OR VENUE, IN THE
CITY OF NEW YORK, STATE OF NEW YORK.  Service of process on the Company or any
Holder in any action arising out of or relating to this Agreement shall be
effective if mailed to such party in accordance with the procedures and
requirements set forth in Section 8.2.  Nothing herein shall preclude the
Purchaser, any Holder or the Company from bringing suit or taking other legal
action in any other jurisdiction.

          8.6. Mutual Waiver of Jury Trial.  BECAUSE DISPUTES ARISING IN
               ---------------------------
CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY
RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE
STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES
DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS.
THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL
SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY
IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO ENFORCE OR DEFEND ANY RIGHTS OR
REMEDIES UNDER THIS AGREEMENT.

                                      -11-
<PAGE>

          8.7. Captions.  The descriptive headings of the various Sections or
               --------
parts of this Agreement are for convenience only and shall not affect the
meaning or construction of any of the provisions hereof.

          The execution hereof by the Purchaser shall constitute a contract
between us for the uses and purposes herein above set forth, and this Agreement
may be executed in any number of counterparts, each executed counterpart
constituting an original but all together only one agreement.

                                       SPECTRUMEDIX CORPORATION

                                       By: /s/ Stephen Wertheimer
                                          -----------------------------------
                                          Name: Stephen Wertheimer
                                          Title: Secretary & Vice President

Accepted as of July 9, 2001

I. REICH FAMILY LIMITED PARTNERSHIP

By:  I. REICH FAMILY CORPORATION
     Its: General Partner

By: /s/ Ilan Reich
   --------------------------
   Name:  Ilan Reich
   Title: President

                                      -12-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}]]