Document:

<PAGE>   1

                            SUPPLY/PURCHASE AGREEMENT

           THIS AGREEMENT (the "Agreement"), is made and effective this 18th day
of January, 2001, by and between HTS Biosystems, Inc., a Minnesota Corporation
having its principal office at 92 South Street, Hopkinton Massachusetts, the
United States of America ("HTS") and Mitsubishi Chemical Corporation, a Japanese
corporation having its principal office at 5-2, Marunouchi 2-chome, Chiyoda-ku,
Tokyo, Japan ("MCC").

                                WITNESSETH THAT:

           WHEREAS, HTS has been engaged in the manufacture and sale of HTS SPR
Array System and Uncoated Grating Chips (the "Products");

           WHEREAS, MCC wishes to purchase the Products from HTS for MCC's
Development; and

           NOW, THEREFORE, in consideration of the mutual covenants, conditions
and agreement herein set forth, the parties hereby agree as follows:

ARTICLE 1 (SUPPLY AND PURCHASE)

           Subject to the terms and conditions set forth herein, HTS shall sell,
transfer and deliver to MCC, and MCC shall purchase and receive from HTS, the
Products meeting the quality specifications as set forth in Article 2.1 hereof.

ARTICLE 2 (SPECIFICATION)

2.1      The specifications and quantity of the Products to be delivered to MCC
         hereunder (the "Specifications") shall be those as described in Exhibit
         A attached hereto and made a part hereof.

2.2      Upon delivery of the Products to MCC, HTS shall provide a certificate
         describing the result of its test on each lot of the Products delivered
         meeting the Specifications.

<PAGE>   2

ARTICLE 3 (FORECAST AND ORDERING MECHANISM)

3.1      In order to help HTS make its production and supply program, MCC shall
         inform HTS, in writing, of a forecast indicating MCC's estimated
         semi-annual requirements for the Products during each such half year
         period together with the monthly breakdown (a " Forecast"). None of the
         figures indicated in each Forecast shall be interpreted as a binding
         commitment of MCC; provided, however, that MCC shall use its reasonable
         efforts to place purchase orders with HTS for the Products so as to
         follow the monthly breakdown indicated in each Forecast.

3.2      A firm purchase order for the Products may be placed by MCC in writing
         (by facsimile) with HTS at any time but not later than eight (8) weeks
         by MCC, prior to the desired date of delivery. Each purchase order
         shall indicate;

         (1)      the desired quantity of the Products and desired date of
                  delivery; and

         (2)      any other information as MCC deems necessary and appropriate.

3.3      Immediately but, in no event, later than one (1) week after the date of
         each purchase order by MCC, HTS shall provide MCC, to whoever sent such
         purchase order, with a written notice (by facsimile) of its (i)
         acceptance of such MCC's purchase order or (ii) difficulty (together
         with the reason therefor) to meet such MCC's requirement indicated in
         any part of the purchase order. Each individual sales/purchase contract
         shall be deemed established and become binding between such MCC and HTS
         simultaneously upon HTS's written acceptance of such MCC's firm order
         as placed pursuant to Article 3.2 above. If any difficulty should be
         indicated in HTS's notice, MCC and HTS shall discuss in good faith
         measures to solve such difficulty.

3.4      None of the terms and conditions as may be indicated in such purchase
         order of MCC or HTS's acceptance which are not referred to in this
         Agreement or not consistent with those of this Agreement shall have any
         binding effect over the parties unless otherwise from time to time
         agreed to by the parties.

<PAGE>   3

ARTICLE 4 (UNIT PRICE AND PAYMENT TERMS)

4.1      The unit price payable by MCC to HTS for the Products delivered
         hereunder (the "Unit Price") shall be as described in Exhibit B per
         attached hereto.

4.2      Each payment by MCC for the Products delivered from HTS to MCC
         hereunder shall be made to HTS in US Currency. The U.S. currency
         payments hereunder shall be determined on the basis of the telegraphic
         transfer selling (TTS) rate of exchange as reported by Tokyo Mitsubishi
         Bank in effect on the date such payments. Such payment shall be paid
         within ninety (60) days after the delivery of the each Product. With
         respect to the payment set forth herein, MCC shall be responsible for
         taxes, duties or any other expenses in Japan and HTS shall be
         responsible for taxes, duties or any other expenses in the United
         States of America.

ARTICLE 5 (DELIVERY)

5.1      The terms of delivery of the Products from HTS to MCC shall be FOB
         Boston Logan International Airport.

5.2      The title to and the risk of loss of the Products shall pass from HTS
         to MCC upon the time of delivery.

ARTICLE 6 (PACKING)

           The Products shall be packed as requested by MCC and in a
commercially reasonable fashion.

ARTICLE 7 (USE OF THE PRODUCTS)

           The Products shall be used solely for the MCC's research and
development.

<PAGE>   4

ARTICLE 8 (NON-CONFORMITY)

8.1      HTS hereby warrants to MCC that the Products shall meet with the
         Specifications at the time of the delivery.

8.2      The warranty under this Article 8 shall not be valid and available
         unless MCC, so delivered, shall have sent a written notice to HTS of an
         alleged non-conformity of the Products to the Specifications within one
         hundred eighty (180) days after the date of delivery of such allegedly
         non-conforming Products.

8.3      In the event that MCC, so delivered, has proven, with proper technical
         background, the alleged non-conformity of Products to have been
         attributable to HTS, HTS shall provide MCC with replacement Products
         that shall meet the Specifications without unreasonable delay.

ARTICLE 9 (DISCLAIMER)

           The warranties and remedies as provided for in article 8 above shall
be exclusive and there are no other warranties, expressed or implied, including
the warranties of merchantability, fitness of the products for any particular
purpose other than that as described in Article 9 or non-infringement of third
party's intellectual property rights. In no event shall seller be liable or held
responsible to any incidental or consequential losses or damages (including, but
not limited to, economic losses or loss of profits) suffers or incurred by MCC
as a result of or in connection with the implementation of the supply of
products hereunder, except to the extent such losses or damages arise out of
gross negligence or willful misconduct of HTS.

ARTICLE 10 (TERM AND TERMINATION)

10.1     This Agreement shall be valid for a period of six (6) months commencing
         on the execution date hereof.

10.2     Notwithstanding the provisions of Article 9.1 above, each of the
         parties may terminate this Agreement by giving a written notice to the
         other parties in the event that either party;

<PAGE>   5

         (1)      is declared insolvent or bankrupt, or makes an assignment or
                  other arrangement for the benefit of its creditors;

         (2)      has all or any substantial portion of its capital stock,
                  assets or any other property transferred by it to any third
                  party or expropriated by any government;

         (3)      is dissolved or liquidated;

         (4)      becomes unable to make payment or stop making payments to a
                  third party; or

         (5)      commits material default or breach of its obligation under
                  this Agreement, and such default or breach shall not have been
                  cured within thirty (30) days after the date of a written
                  notice of such default or breach by the non-defaulting Party.

10.3     Any expiration or termination of this Agreement shall not release any
         party from any of its obligations accrued prior to the date of
         expiration or termination or any liabilities to the other parties that
         may incur upon such termination.

10.4     Upon termination of this Agreement for whatever reason, notwithstanding
         the provisions of Article 4.2 above, the parties shall immediately pay
         all then outstanding credit irrespective of their original due dates.

ARTICLE 11 (FORCE MAJEURE)

           None of the parties shall be liable for any loss or damage, or delay
or failure in performing its obligation, other than any monetary obligation
against any other party, under this Agreement caused by circumstances beyond the
control of the party affected, which affects the relevant party or any other
person involved in the sale, manufacturing, supply, shipment or receipt of the
Product, including, but not limited to, acts of God, fire, flood, typhoon,
earthquake, tidal wave, landslide, plague, epidemic, quarantine restriction,
perils of the sea, war or serious threat of the same, civil commotion, blockade,
arrest or restraint of government, rulers or

<PAGE>   6

people, requisition of vessel or aircraft, strike, lockout, sabotage or other
labor dispute, explosion, accident or breakdown in a whole or in part of
machinery, plant, transportation or loading facility, governmental request,
guidance, order or regulation, unavailability of transportation or loading
facility, curtailment, shortage or failure in the supply of fuel, water,
electric current, other utility, or raw material, and any other similar causes
or circumstances which are beyond the reasonable control of the party affected.

ARTICLE 12 (NOTICE)

           All notices, statements, reports, requests or other communications to
a party required or permitted hereunder shall be in writing and shall be deemed
effective and properly given when sent by registered or certified mail, or by
confirmed facsimile transmission to the person as indicated below or such other
person as may be designated by MCC or HTS by such notice;

       if to MCC, to:

       Mitsubishi Chemical Corporation.
       5-2, Marunouchi 2-chome,
       Chiyoda-ku, Tokyo100-0005 Japan
       Attention:  General Manager, Life Science Business Initiatives Department
       Facsimile number:  (03) 3283-5809

       and, if to HTS, to:

       HTS Biosystems, Inc.
       92 South Street,
       Hopkinton, Massachusetts 01748 U.S.A
       Attention: CEO
       Facsimile number:  (508) 435-6342

MCC and HTS may change their respective above-specified recipient and/or mailing
address by notice to the other party given in the manner herein prescribed. All
notices shall be deemed given on the day when actually delivered as provided
above (if delivered by facsimile) or on the day shown on the return receipt (if
delivered by mail).

<PAGE>   7

ARTICLE 13 (CONFIDENTIALITY)

13.1     Each of the parties (the "Receiving Party") shall keep in confidence,
         and shall not disclose to any third party and use for any purpose other
         than that of this Agreement, the content of this Agreement nor any
         confidential information furnished from any other Party (the
         "Disclosing Party"), unless otherwise specifically agreed to in writing
         by the Disclosing Party; provided, however, that any of the following
         information shall not be deemed as confidential information for
         purposes of this Agreement:

         (1)      information that is publicly known at the time of receipt from
                  the Disclosing Party, or that becomes known to the public
                  after receipt by any reason not attributable to the Receiving
                  Party.

         (2)      information that was already in possession of the Receiving
                  Party prior to the disclosure from the Disclosing Party.

         (3)      information that was furnished to the Receiving Party from any
                  third party as a matter of right without restriction on
                  disclosure.

13.2     The obligations under this Article shall survive any expiration or
         termination of this Agreement for a period of five (5) years
         thereafter.

ARTICLE 14 (WAIVER)

           No waiver by any party of its right to enforce any provisions of this
Agreement shall constitute a waiver of such party's right to enforce such
provisions thereafter or to enforce any other provisions of this Agreement.

<PAGE>   8

ARTICLE 15 (ASSIGNMENT)

           Each of the party shall not assign or transfer all or any part of
this Agreement to any third party without the prior written consent of the other
parties.

ARTICLE 16 (GOVERNING LAW)

           This Agreement shall be construed in accordance with the laws of the
State of New York, excluding its choice of law provisions. The Parties further
agree to submit themselves to the non-exclusive jurisdiction of the state and
federal courts of the State of New York in the event that any dispute arises
under this Agreement.

ARTICLE 17 (SEVERABILITY)

17.1     In the event that any provision of this Agreement should be deemed
         unlawful or invalid, then, except as provided for herein, such
         provision shall be severed from this Agreement but the remaining
         provisions of this Agreement as a whole shall remain unaffected and
         binding on the Parties.

17.2     Notwithstanding any other provision of this Agreement to the contrary,
         if the parties' intention as originally contemplated herein should
         become disturbed or to be likely disturbed to a substantial degree by
         the action or order of any government authorities concerned, then the
         parities shall review this Agreement and discuss in good faith
         alternative solutions practically available which may include the
         termination of this Agreement.

ARTICLE 18 (ARBITRATION)

           The parties hereto shall attempt to settle any dispute, controversy
or difference in connection with this Agreement and the incidental agreements in
an amicable way. In the event that such attempts should fail, then the parties
hereto agree that the dispute be exclusively and finally settled by arbitration
under the Rules of Conciliation and Arbitration of the International Chamber of
Commerce. The arbitration proceedings shall be held in Tokyo, Japan in the
English language.

<PAGE>   9

ARTICLE 19 (ENTIRE AGREEMENT)

           This Agreement contains the entire and final agreement of the parties
with respect to the subject matter hereof. Any and all prior memoranda of
understanding, letters of intent, promises, undertakings, representations,
agreements and understandings, written or oral, with respect to the subject
matter of this Agreement shall be hereby terminated. This Agreement may not be
altered, amended or modified in any way except by an instrument in writing
executed by the parties.

           IN WITNESS WHEREOF, the parties have caused this Agreement to execute
by their duly authorized officers.

                                    MITSUBISHI CHEMICAL CORPORATION

                                    --------------------------------------------
                                    By:     Kiyoshi Nakayama
                                    Its:    General Manager,
                                            Life Science Business Initiative
                                            Department

                                    HTS BIOSYSTEMS, INC.

                                    --------------------------------------------
                                    By:     Gregory G. Freitag
                                    Its:    Chief Executive Officer

<PAGE>   10

                                    EXHIBIT A

                   SPECIFICATIONS FOR LEVEL 1 PRODUCTION UNIT

CORRELATION OF SPR PARAMETERS

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
                            SPR PARAMETERS                                    EQUIVALENT VALUES
=========================================================================================================
<S>                                                                           <C>
                           SPR angle shift                                     2.5 millidegrees
CHANGE IN PROTEIN SURFACE CONCENTRATION                                          0.05 ng/mm2
CHANGE IN BULK REFRACTIVE INDEX                                                    5 x 10-5
---------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
                               INSTRUMENT                                          DETAILS
---------------------------------------------------------------------------------------------------------
<S>                                                                           <C>
FLEX CHIP ANALYZER
1. OPTICS
  1)Illumination system
    (1)LED                                                                       HP HSDL4400
    (2)Wavelength                                                                   875 nm

    (3)Scanning methods to change incident angle                                 Move source
        a)Methods                                                                Motor driver
        b)Scan speed (degrees/ms)                                              2.65x10-4 deg/ms
    (3)Total incident angle (degrees)
        (from XX to YY)                                                             16-24
        (which corresponds to a refractive index range of AA to BB)              1.43 x 10-1

    (4)Individual incident angle of 35 LEDs (millidegree)                         180 mdeg
        (which corresponds to the resolution?)                                   3.24 x 10-3
    (5)LED spot size on the sensor surface  (mm2)                              25 mm diameter
(which corresponds to the array capability ?)                                     overfills

2.  DETCTION SYSTEM
    (1)CCD array detector                                                      Quantix 1401E-G2
       a)Number of pixels                                                         1317-1035
       b)pixel size                                                              6.8 x 6.8 um
       c)CCD bits                                                                  12 bits
       d)Spot size of reflected beam                                             10mm x 10mm
       e)Frame rate                                                              2 Frames/sec
       f)Integration time (exposure time)                                          100 ms

---------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   11

<TABLE>
<S>                                                                    <C>
---------------------------------------------------------------------------------------------------------

3.  OTHERS
    (1)STANDARD SENSOR CHIP to check the optics                                None currently
    (1)Methods of getting same optical signal (intensity)                  Overfill 1 x 1 cm area
       At every site on the STANDARD sensor surface
    (2)Methods of correcting optical signals                             Normalization / angle scan
    (3)Methods of on-line subtraction (reference)                            Currently off-line
    (4)Advantage of this system                                                   400 ROIs

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

2.Flow control
   1)Peristatic pump or Syringe pump                                             peristaltic
   2)Methods of flow path channeling
   2)Flow rate range                                                            1-500 uL/min
   3)Stability of Flow rate (on sensor surface)
    (1)Same flow rate at every site on sensor surface
    (2)No short path
    (3)To avoid air noises (foam)
   4)To avoid sample dispersion due to mixing
       between sample and buffer at the beginning
       And end of injection (air segments ?)
   5) To avoid concentration differences in the
       flow cell (flow rate ?)

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

3.DATA ANALYSIS
   1)Raw data of SPR of 35 LEDs at every site
     on sensor surface.
      a)CCD bit image                                                             optional
   2)Methods of estimating peak shifts                                       5th order polynomial
      (peak shifts or Intensity shifts?)                                         Peak shifts
   3)data Intervals                                                         5 millidegrees or 1 sec
                                                                       1 kinetic point every 12 seconds
   4)Reaction time scale                                                     for 400 array spots.
   5)Used capacity for one data
   6)Software for calculation                                                       Labview

---------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   12

<TABLE>
<S>                                                                     <C>
---------------------------------------------------------------------------------------------------------

4.OTHERS
   1)Temperature control in FLEX CHIP                                           Yes +/- 0.5 C
                                                                                      120 VAC
   2)Power supply                                                                   60 Hz
   3)Dimentions ( L x W x H )                                                   500x500x500mm
   4)Net Weight (kg)                                                                 58 kg

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

FLEX CHIP
1.Chip (Gold-coated sensor chip transducer)
   1)Groove width (pitch)                                                           856nm
                                                                                   38-40 nm
   2)Groove depth                                                               60 nm optimal
   3)Groove shape                                                                sinusoidal
   4)Gold-layer thickness                                                         40-80 nm
   5)Substrate                                                                        PC
   6)Manufacturing Process of Gold-coated gratings
     (stamper, spattering etc)
     a)Instruments
     b)Methods
   7)Spotting methods of samples (proteins)
     a)Instruments (machines and tools)
     b)Methods

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

2.Disk (cartridge with sensor chip)
   1)Cartridge material
   2)Cartridge structure in detail (design)
   3)Flow cell volume (L x W x H)                                       55 uL total (25 under window)
   3)Manufacturing-Process to assemble cartridge
     a)Instruments and tools (UV light, etc)
     b)Methods
---------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   13

<TABLE>
<S>                                                                   <C>
---------------------------------------------------------------------------------------------------------
SYSTEM SPECIFICATION                                                             HTS-Systems
---------------------------------------------------------------------------------------------------------
TYPE OF INFORMATION                                                   Detection
                                                                      Concentration
                                                                      Kinetics and Affinity data
                                                                      Others (Thermodynamic analysis)?
---------------------------------------------------------------------------------------------------------
FLOW AND SAMPLING CONTROL

 1)Flow rate range (through flow cell)                                          1-500 uL/min
   (steps)                                                                       1 uL steps

 2)Flow rate accuracy

 3)Flow rate precision

 4)Required sample volume                                                       Minimum 55 uL

 5)Chemical resistance                                                                yes
 (pulse or continuous flow)
 (for Methanol and DMSO ,etc)

 6)Sample capacity

---------------------------------------------------------------------------------------------------------
DETECTION

                                                                        400 ROI ~250 um diameter (2500
                                                                          ROI possible with ~100 um
 1)Array capability                                                               diameter)

                                                                           Real time monitoring of
 2)Data presentation                                                             interactions
                                                                         at every site on the sensor
                                                                        surface once every 12 seconds
                                                                       (may change w/ 2500 spot array)

                                                                           1.33-1.40 with software
 3)Sample refractive index range                                                 development
---------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   14

<TABLE>
<S>                                                                      <C>
---------------------------------------------------------------------------------------------------------
                                                                            Semi-fixed (mechanical
 4)Analysis temperature                                                          adjustment)
 (fixed or varied)

 5)Temperature accuracy                                                           +/- 0.5 C

 6)Time to change temperature
    if needed
      by 5?
                                                                       From ambient to 35 degrees C in
      by 10?                                                                 less than 1 minute

---------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
SYSTEM SPECIFICATION                                                              HTS-System
---------------------------------------------------------------------------------------------------------
<S>                                                                    <C>
TYPICAL WORKING TEST
 (better than Quantech System)

Baseline
   1)Baseline noise                                                    Not determined with new technique
   2)Baseline drift                                                    Not determined with new technique

Glucose runs                                                           Use ethanol gradient for
                                                                       characterization
   1)Detection limit of glucose                                        0.1  % (.0025 deg) ethanol in
                                                                       high resolution mode over entire
                                                                       surface (all 400 ROIs)
      (0 +2SD)                                                         1-2 minute analysis time

   2)CV's (at a glucose concentration
     of 1mg/mL at all sites on sensor
     Surface

   3)Difference of relative SPR shift
     between sites

---------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   15

<TABLE>
<S>                                                                    <C>
---------------------------------------------------------------------------------------------------------
   3)Difference of relative SPR shift between instruments
   3)Linearity~ ~over 2 logs ( can currently detect 0.1 to
     10% EtOH)

Other samples
 1)Myoglobin (MWoF17000 Da)
 2)Avidin , etc
TYPICAL DYNAMIC RANGE
 (better than BIACORE System ?)                                        Yes with additional work

Kinetics
   1)Association rate constant                                         NA
        (in future)
   2)Dissociation rate constant                                        NA
        (in future)
   3)Affinity                                                          NA
         (in future)

Detection limit of low molecular weight                                50 pg/mm2
(no enhancer / direct measurement)
---------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   16

                                    EXHIBIT B

1.         HTS SPR ARRAY SYSTEM

1-1        Unit Price                               US$150,000

1-2        Number of Units to be purchased:         up to three (3) units

1-3        Conditions for payment:
           MCC will pay half of the amounts that unit price multiply number of
           units to be purchased to HTS within forty-five days and remaining
           balance will be paid within forty-five days after receipt by MCC of
           the instrument(s) by the MCC designated agent provided that MCC has
           not informed HTS of non-acceptance of such instruments.

2.         UNCOATED GRATING CHIPS

2-1        Unit Price                               US$1.75

2-2        Number of Uncoated Grating Chips         To be determined

2-3        Conditions for payment:
           MCC will pay the mounts that unit price multiply number of Uncoated
           Grating Chips to be purchased to HTS within forty-five days upon
           receipt of Uncoated Grating Chips.<PAGE>   1

                            DISTRIBUTORSHIP AGREEMENT

           THIS AGREEMENT (the "Agreement"), is made and effective this 18th day
of January, 2001, by and between HTS Biosystems, Inc., a Minnesota Corporation
having its principal office at 92 South Street, Hopkinton, Massachusetts, The
United States of America ("HTS") and Mitsubishi Chemical Corporation, a Japanese
corporation having its principal office at 5-2, Marunouchi 2-chome, Chiyoda-ku,
Tokyo, Japan ("Distributor ").

                                WITNESSETH THAT;

           WHEREAS, HTS has developed and is now engaged in the manufacture and
sale of HTS SPR Array System (the "Products") and HTS is desirous to increase
its sales of the Products for Research Applications as defined in the License
and Sublicense Agreement between the parties hereto of even date herewith in
Japan (the "Territory"); and

           WHEREAS, Distributor wishes to distribute and resell the Products in
the Territory;

           NOW THEREFORE, the parties hereto agree as follows:

ARTICLE 1       APPOINTMENT

           Subject to the terms and conditions set forth herein, HTS hereby
appoints Distributor as HTS's exclusive distributor to distribute and resell the
Products for Research Application Field in the Territory (collectively, the
"Customers"), for the term set out below, and Distributor hereby accepts such
appointment.

ARTICLE 2       RELATIONSHIP

           The relationship hereby established between the parties hereto shall
be solely that of seller and buyer, and either party hereto shall be in no way
the agent or representative of the other party for any purposes whatsoever.
Either party hereto shall have no right to enter into any agreement, commitment
or understanding, or to incur any obligation or liability in the name of or on
behalf of the other party hereto, except as expressly permitted herein.

ARTICLE 3       SALES AND PURCHASE

3.1        Under the terms and conditions set forth herein, HTS shall sell to
           Distributor, and Distributor shall purchase from HTS, the Products
           for the purpose of distribution and resale of the Products to the
           Customers in the Territory by Distributor hereunder. Unless otherwise
           specifically provided for herein, detailed terms and conditions
           applicable to each individual transaction of the Products between the
           parties, including the prices payable by Distributor to HTS,
           commission from HTS to Distributor, minimum yearly purchase
           requirements by Distributor and the terms of payment (inclusive of
           the provision of letter of credit), shall be separately agreed upon
           between the parties hereto.

<PAGE>   2

3.2        Distributor shall not distribute or sell the Products to anyone
           outside the Territory, nor to anyone in the Territory who,
           Distributor knows or has reason to know, intends to resell the
           Products outside the Territory. Without prior written consent of HTS,
           Distributor shall not distribute or sell the Products to anyone other
           than Customers in the Territory, nor to anyone in the Territory who,
           Distributor knows or has reason to know, intends to use the Products
           for any purpose other than Research Application Field in the
           Territory.

3.3        Distributor shall not alter or remodel the Products without the prior
           written consent of HTS.

3.4        HTS shall have the right, at any time without compensation to
           Distributor, to discontinue manufacturing the Products or change the
           Specifications as defined in Article 9 hereof, at its sole
           discretion, by giving ninety (90) days' prior written notice to
           Distributor.

3.5        Distributor shall submit the orders for the purchase of the Products
           to HTS in writing in such format as may be required by HTS at least
           one (1) month prior to the delivery date requested by the
           Distributor.

3.6        Formal acceptance of orders by HTS shall be evidenced by the delivery
           to Distributor of written confirmation of receipt of such orders by
           HTS.

<PAGE>   3

ARTICLE 4       SHIPMENT AND DELIVERY

           Except as otherwise expressly set forth herein, delivery terms for
the Products shall be FOB Boston Logan International Airport, and shall be
governed and construed in accordance with INCOTERMS 2000 and any amendments
thereto.

ARTICLE 5       SALES PROMOTION AND AFTER-SALES SERVICES

5.1        Distributor shall, at its own cost and expenses, diligently and
           adequately advertise and promote the sale of the Products in the
           Territory and perform technical services or any other after-sales
           services relating to the Products (the "After-Sales Services").

5.2        When Distributor requests After-Sales Services to HTS and HTS agrees
           with the necessity of such Distributor's request, HTS shall, at its
           own cost and expense, collect data related to such After-Sales
           Service and send its employee(s) for such After-Sales Services.

5.3        HTS shall, free of charge, provide Distributor with its reasonable
           requirements for translation of HTS's promotional and advertising
           material in English for marketing of the Products, such as pamphlets,
           leaflets and catalogs.

5.4        Distributor agrees that any of its publication or advertisement with
           respect to the Products shall be based on and strictly consistent
           with the promotional and advertising material or any other
           information or data furnished by HTS and shall be subject to HTS's
           approval to be obtained prior to its release thereof.

ARTICLE 6       INVENTORY

           Distributor shall maintain adequate inventory of the Products so as
to keep them available for the prompt response to orders from its customers and
for the After-Sales Services.

ARTICLE 7       DISTRIBUTOR'S PERSONNEL

           Distributor shall employ a sufficient number of sales staff and
engineers so as to promote the sale of the Products and render the After-Sales
Services. Upon reasonable request of the Distributor, HTS shall furnish training
to one or more of such sales staff and/or engineers acceptable by HTS in order
to have such person(s) master the proper handling, and technical services of the
Products. The expenses incurred for such training except for HTS's specialist's
cost and expense for the operation of HTS's equipment for such training shall be
borne by Distributor.

ARTICLE 8       REPORTS

8.1        Distributor shall provide HTS at least monthly during the term hereof
           with written reports indicating information on the performance of its
           business activities, including the sales results of the Products,
           purchase volume forecast of the Products per each customer and other
           matters as may be reasonably requested by HTS.

<PAGE>   4

8.2        In the event of any change in Distributor's management, organization
           or sales staff, distributor shall immediately notify HTS of such
           change.

ARTICLE 9       SPECIFICATIONS

           The specifications of the Products to be sold by HTS and purchased by
Distributor hereunder shall be those to be agreed to by the parties and
thereafter as specified in EXIHIBIT B attached to be agreed to by the parties
and thereafter hereto and made a part hereof (the "Specifications").

ARTICLE 10      WARRANTY

10.1       HTS warrants to Distributor that the Products sold and delivered to
           Distributor hereunder shall conform, at the time of delivery thereof,
           to the Specifications.

10.2       HTS's warranty under this Article shall be valid and available on the
           condition that Distributor shall send a written notice to HTS of the
           alleged defect or non-conformity of the Products in question with the
           Specifications within six (6) months from the date of delivery
           thereof from HTS to Distributor hereunder and send HTS immediately
           such allegedly defective or non-conforming Products at Distributor's
           cost for the purpose of HTS's inspection, if requested by HTS. In the
           event that such defect or non-conformity should be found attributable
           to HTS, HTS shall bear the cost paid by Distributor for sending the
           Products back to HTS and provide Distributor with refund of the price
           for the defective or non-conforming Products, or, at prior consent
           between Distributor and HTS, with replacement of said Products at
           HTS's cost without unreasonable delay.

10.3       In the event that Distributor should receive any claim relating to
           the Products from its customers (a "Claim"), during the six (6)
           months referred to in Article 10.2 above, Distributor and HTS shall
           discuss and examine, in good faith, the cause of such Claim and
           cooperate with each other to settle it.

10.4       If the cause of a Claim, within the thirty (30) days after the date
           of such Distributor's receipt of such Claim, should be proven to have
           been attributable to the negligence of HTS, HTS shall be responsible
           for losses or damages as suffered or incurred by such Distributor
           arising out of or in connection with such Claim.

10.5       THE WARRANTIES AND REMEDIES PROVIDED IN THIS ARTICLE ARE EXCLUSIVE
           AND THERE ARE NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING
           WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IN
           NO EVENT SHALL HTS BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL
           LOSSES OR DAMAGES SUFFERED OR INCURRED BY DISTRIBUTOR AS A RESULT OF
           OR IN CONNECTION WITH DEFECT OR NON-CONFORMITY OF THE PRODUCTS.

<PAGE>   5

ARTICLE 11      INDEMNIFICATION

           Distributor shall indemnify and hold HTS harmless from any and all
claims, demands, suits or actions for any kind of damages, losses or costs which
may be sustained by itself, its employees or agents, or any third party, caused
by any reasons occurred after the completion of shipment of the Products
hereunder, unless otherwise specifically provided for in this Agreement.

ARTICLE 12      TRADEMARKS AND TRADE NAME, OTHER INTELLECTUAL PROPERTY RIGHTS

12.1       Distributor may use certain trademarks and/or trade name owned and
           designated by HTS (collectively, the "Trademark") in advertising and
           selling the Products in the Territory in accordance with HTS's
           instructions, and shall neither use the Trademark for any other
           purpose nor use any other trademark or trade names for the Products.
           Upon request from HTS, Distributor shall supply sample of label,
           catalogues, leaflets of the Products to HTS and shall fully cooperate
           with HTS for necessary procedure to maintain and renew the Trademark.

12.2       The use of the Trademark by Distributor under Article 12.1 above
           shall not be construed as granting a license to Distributor of any
           proprietary rights owned by HTS.

12.3       Distributor shall sell the Products in the same condition as they are
           received and shall not alter, remove or in any way tamper with any of
           HTS's marks or numbers on the Products without prior written consent
           of HTS.

12.4       Distributor shall at no time acquire any proprietary interest in the
           intellectual property rights in the Products owned by HTS other than
           a right to distribute them subject to the terms and conditions
           hereof.

12.5       Distributor shall promptly notify HTS of any suspected
           infringement or threat of infringement of HTS's intellectual property
           rights when Distributor becomes aware of it and cooperate fully with
           HTS in all legal actions or proceedings taken by HTS to protect its
           said intellectual proprietary rights in the Products.

ARTICLE 13      CONFIDENTIALITY

13.1       Distributor shall keep confidential and shall not disclose, without
           prior written consent of HTS, in any manner to any third party nor
           use for any purpose other than distribution and sales of the Products
           hereunder any technical or business information disclosed by or
           acquired from HTS in connection with or in the course of performance
           of this Agreement ("Confidential Information"). The following
           information shall not be treated as a part of the Confidential
           Information;

           (i)        information owned by the Distributor before receiving the
                      Confidential Information,

           (ii)       information known to the public at the time of receipt of
                      the Confidential Information,

<PAGE>   6

           (iii)      information that becomes known to the public after the
                      receipt of the Confidential Information through no fault
                      of the Distributor, or

           (iv)       information lawfully disclosed by third party without a
                      confidentiality obligation.

13.2       Notwithstanding the foregoing Article 13.1, Distributor may disclose
           any part of the Confidential Information only to the potential
           customers of the Product in the Research Application Field to the
           extent such disclosure is reasonably necessary for the advertisement
           and promotion of the Products in the Territory. In such case,
           Distributor shall notify HTS of such disclosure in advance and
           execute appropriate confidentiality agreement approved by HTS with
           such potential customer.

13.3       This Article 13 shall survive expiration or termination of this
           Agreement.

ARTICLE 14      TERM AND TERMINATION

14.1       This Agreement shall be valid and in force for a period of five (5)
           years commencing on the execution date appearing on the first page of
           this Agreement (the "Initial Term"), and thereafter shall be
           automatically renewed on a year-to-year basis, unless either party
           hereto gives the other party hereto a written notice not to renew
           this Agreement at least ninety (90) days prior to the expiration of
           the Initial Term or any extended term.

14.2       Notwithstanding the provision of Article 14.1 above, either party
           hereto may terminate forthwith this Agreement and/or an individual
           contract pursuant to Article 3 by giving a written notice to the
           other party hereto in the event that such other party;

    (1)      initiates dissolution or liquidation proceedings whether
             compulsorily or voluntarily or makes an arrangement with its
             creditors generally or has a receiver or manager appointed or takes
             or suffers any similar action in consequence of debts; or becomes
             bankrupt or insolvent;

    (2)      has all or any  substantial portion of its capital stock, assets or
             any other property transferred by it to any third party or
             expropriated by any government;

    (3)      becomes unable to make payments or stop making payments to third
             parties within thirty (30) days of being notified in writing of
             payment; or

<PAGE>   7

    (4)      commits any breach or fails to perform any provision of this
             Agreement, and such breach or failure shall not have been cured
             within thirty (30) days after the date of a written notice of such
             breach or failure given by the non-defaulting party.

14.3       No expiration or termination hereof shall release HTS or Distributor
           from any liability which at such time already accrued to the other
           party, or in any way affect the survival of any right, duty or
           obligation of HTS or Distributor which is intended to survive
           expiration or termination.

14.4       Immediately after expiration or termination of this Agreement,
           Distributor shall return to HTS any unused promotional and
           advertising material provided by HTS pursuant to Article 5 hereof.

14.5       Notwithstanding the provisions in Articles 14.1 through 14.4 above,
           HTS shall have the right to terminate this Agreement forthwith by a
           written notice to Distributor in the following circumstances:

    (1)      if  Distributor purports to assign the burden or benefit of this
             Agreement without the written consent of HTS;

    (2)      if Distributor engages in any conduct prejudicial to the business,
             goodwill, reputation, activities or other interests of HTS; or

    (3)      if Distributor's ownership, constitution or control is
             significantly changed, which HTS considers will adversely affect
             the business, goodwill, reputation, activities or other interests
             of HTS.

14.6       If this Agreement terminates for any reason whatsoever, HTS may
           without any liability towards Distributor or any other party
           whatsoever cancel all or any orders for the Products which have not
           been delivered. Alternatively, at the sole discretion of HTS, they
           may supply the Products to the customers or third parties directly.

ARTICLE 15      NOTICE

           All notices, statements, reports, requests or other communications to
a party required or permitted hereunder shall be in writing and shall be deemed
effective and properly given when sent by registered or certified mail, or by
confirmed facsimile transmission to the person as indicated below or such other
person as may be designated by MCC or HTS by such notice;

                  if to MCC, to:

                  Mitsubishi Chemical Corporation.
                  5-2, Marunouchi 2-chome,
                  Chiyoda-ku, Tokyo100-0005 Japan
                  Attention:  General Manager, Life Science Business
                              Initiatives Department
                  Facsimile number:  (03) 3283-5809

<PAGE>   8

                  and, if to HTS, to:

                  HTS Biosystems, Inc.,
                  92 South Street,
                  Hopkinton, Massachusetts 01748 U.S.A.
                  Attention:  CEO
                  Facsimile number:  (508) 435-4700

ARTICLE 16      FORCE MAJEURE

           Neither party hereto shall be responsible for failure or delay to
perform its obligation hereunder in case such failure or delay is caused by
fire, flood, earthquake, heavy snowfall, strikes, inevitable accident, war,
riots, civil commotion, governmental laws, order or regulations, embargoes,
blockades or any other causes beyond the control of such party; provided,
however, that the party failing to perform shall inform the other party of such
cause with reasonable evidence, such as newspaper articles and TV reports, and
make its best efforts to remove such cause of non-performance promptly.

ARTICLE 17      ASSIGNMENT

           Neither party hereto shall assign or transfer all or part of its
rights and obligations under this Agreement to any third party without the prior
written consent of the other party hereto.

<PAGE>   9

ARTICLE 18      WAIVER

           No waiver by either party hereto of its right to enforce any
provisions of this Agreement shall constitute a waiver of such party's right to
enforce such provisions thereafter or to enforce any other provisions of this
Agreement.

ARTICLE 19     GOVERNING LAW

           This Agreement shall be construed in accordance with the laws of the
State of New York, excluding its choice of law provisions. The Parties further
agree to submit themselves to the non-exclusive jurisdiction of the state and
federal courts of the State of New York in the event that any dispute arises
under this Agreement.

ARTICLE 20     ARBITRATION

           All disputes, controversies or differences which may arise between
the parties hereto, out of or in connection with this Agreement or the breach
thereof, shall be finally settled by arbitration to be held in Tokyo, Japan in
the English language under the rules of Conciliation and Arbitration of
International Chamber of Commerce. The award thereof shall be final and binding
on the parties hereto.

ARTICLE 21     ENTIRE AGREEMENT

           This Agreement contains the entire and final agreement of the parties
hereto with respect to the subject matter of this Agreement. Any and all prior
memorandum of understanding, letter of intent, promises, undertakings,
representations, agreements and understandings, written or oral, with respect to
the subject matter of this Agreement are hereby terminated. This Agreement shall
not be altered, amended or modified in any way except by an instrument in
writing executed by the parties hereto.

ARTICLE 22      SEVERABILITY

           In the event that any provision of this Agreement is deemed to be
unlawful or invalid, then such provision shall be severed from this Agreement,
but the remaining provisions of this Agreement and this Agreement as a whole
shall remain in effect and be binding on the parties hereto.

<PAGE>   10

           IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their duly authorized representatives.

                                       MITSUBISHI CHEMICAL CORPORATION

                                       -----------------------------------------
                                       By:  Kiyoshi Nakayama
                                       Its: General Manager,
                                            Life Science Business
                                            Initiatives Department

                                       HTS BIOSYSTEMS, INC.

                                       -----------------------------------------
                                       By:  Gregory G. Freitag
                                       Its: Chief Executive Officer

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