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                                                                   Exhibit 10.19

                        STRATEGIC RELATIONSHIP AGREEMENT

           STRATEGIC RELATIONSHIP AGREEMENT ("Agreement") by and between
CELLOMICS, INC. a Delaware corporation, having a place of business at 635
William Pitt Way, Pittsburgh, Pennsylvania 15238 ("Cellomics", as that term is
further defined in Paragraph 1.3) and BECKMAN COULTER, INC., a Delaware
corporation, having a place of business at 4300 North Harbor Boulevard,
Fullerton, California 92834-3100 ("BCI", as that term is further defined in
Paragraph 1.2).

                                 R E C I T A L S

I.       Cellomics owns confidential technology, applications for patent and
         patents in the fields of cell biology and cell-based assays.

II.      Cellomics has designed and developed proprietary instruments for
         cell-based assays (the "Cellomics Instruments, as that term is further
         defined in Paragraph 1.4) and Reagents ("Reagents as defined in
         Paragraph 1.10) and kits containing reagents and/or other consumables
         for use therewith (jointly the "Cellomics Kits", as that term is
         further defined in Paragraph 1.5). Cellomics has a research and
         development program to refine, modify and improve the Cellomics
         Instruments and Cellomics Kits. The Cellomics Instruments and Cellomics
         Kits are used by end users of Cellomics for generating knowledge about
         cells and cellular processes for analyzing the effects of chemical
         compounds and mixtures on cells.

III.     Cellomics, in conjunction with other parties, is presently developing a
         next generation cell analysis system using microfluidics and micro
         arrays of cells for generating knowledge about cells and cellular
         processes and for analyzing the effects of chemical compounds and
         mixtures on cells (the "Cell Chip Program", as that term is further
         defined in Paragraph 9.1). It is the intent of Cellomics to (a) license
         third party pharmaceutical, independent research and other companies to
         use the resultant system in the third parties' efforts to discover new
         therapeutic drugs (the "TAP Program", as that term is further defined
         in Paragraph 10.1), (b) to use the resultant

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         system to expand Cellomics' knowledge of cells, cell processes and cell
         interactions with chemical compounds and mixtures and to license or
         sell such knowledge to others (the "Knowledge Base", as that term is
         further defined in Paragraph 13.1), and (c) to sell products that
         result from, depend upon or relate to the Cell Chip Program.

IV.      BCI is in the business of developing, manufacturing and distributing
         instruments and reagents and kits therefor in the fields of life
         sciences and in vitro diagnostics. Among the BCI businesses in the
         forgoing fields are (a) automating the processes of others including
         automating third party processes in the field of cellular analysis, and
         (b) developing, manufacturing and selling instruments, kits and systems
         for performing cellular analyses by means of flow cytometry. BCI also
         has proprietary software equipment and procedures for automating the
         processes of others.

V.       BCI desires to be the exclusive, world-wide distributor of the
         Cellomics Instruments and the Cellomics Kits and the improvements
         thereof.

VI.      BCI desires to contribute to the Cell Chip Program by designing and
         developing software, equipment and procedures to automate the Cell Chip
         Program. BCI further desires to be the exclusive, world-wide
         distributor of the resultant automated system.

VII.     BCI desires to participate, through its contribution to the development
         of automation for the Cell Chip Program and its licensing of BCI
         technology to Cellomics, in the commercialization of the TAP Program.

VIII.    BCI desires to acquire rights and licenses to the Knowledge Base.

           NOW THEREFORE in consideration of the mutual undertakings and
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties, intending
to be legally bound, agree as follows:

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                                 1.0 DEFINITIONS

           The following terms, when used herein with an initial capital letter
and without regard to whether they appear in the singular, plural or possessive
form, shall have the following defined meanings:

1.1      "AFFILIATE" shall mean any corporation or other form of limited
         liability legal person and any partnership, association, joint venture
         or other form of business entity controlled by, controlling or under
         common control with a party hereto. As used herein, the word and root
         "control" in the context of a corporation shall mean the ownership,
         directly or indirectly, of fifty percent (50%) or more of the voting
         shares or other equity interests entitled to vote in the election of
         directors of the corporation; and, in the context of any other form of
         business entity, the right to receive fifty percent (50%) or more of
         the net profits of such entity and the right to a majority interest in
         the management and control of such entity.

1.2      "BCI" shall mean Beckman Coulter, Inc., its divisions and Affiliates
         and its and their permitted successors and assigns.

1.3      "CELLOMICS" shall mean Cellomics, Inc., its divisions and Affiliates
         and its and their permitted successors and assigns.

1.4      "CELLOMICS INSTRUMENTS" shall mean the ArrayScan II reader, the
         ArrayScan Kinetics reader, each of which is specified and defined in
         attached Exhibit 1.4 and their attendant software identified in Exhibit
         1.4 and any refinement, improvement or modification to such readers or
         software, and specifically excludes the ArrayScan Kinetics Workstation
         now being manufactured by Zeiss even though an ArrayScan Kinetics
         Reader is incorporated therein.

1.5      "CELLOMICS KITS" shall mean the reagents, controls, calibrators,
         buffers and kits identified in attached Exhibit 1.5 for use on
         Cellomics instruments for High Content Screening applications and any
         refinement, improvement or modification thereof. It is the intent of
         the parties to include within this definition and this Agreement any
         reagents, controls, calibrations, buffers and kits hereafter developed
         or acquired by

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         Cellomics, excluding only those developed or acquired for the Cell Chip
         System (as that term is defined in Paragraph 9.2).

1.6      "EFFECTIVE DATE" shall mean the last date in time adjacent the
         signatures of the authorized representatives of the parties on the last
         page of this Agreement.

1.7      "HIGH THROUGHPUT SCREENING"[*]

1.8      "HIGH CONTENT SCREENING"[*]

1.9      "PRODUCTS" shall mean the Cellomics Instruments and the "Cellomics
         Store and Screen Software," which are defined on Exhibit 1.4.

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

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1.10     "CELLOMICS REAGENTS" shall mean reagents manufactured by Cellomics, for
         Cellomics by others or sold by Cellomics under license or otherwise for
         use in or with Cellomics Instruments for High Content Screening
         applications as and when such reagents are sold separately from
         Cellomics Instruments or Cellomics Kits.

1.11     "FLOW CYTOMETRY"[*]

1.12     "IN-VITRO DIAGNOSTICS" shall mean the quantitative or qualitative
         analysis of samples of human origin intended to assist clinicians in
         the identification, diagnosis, monitoring or treatment of disease in
         humans.

               2.0 COMMISSION REPRESENTATION OF CELLOMICS PRODUCTS

2.1      APPOINTMENT OF BCI - Cellomics hereby appoints BCI and BCI accepts
         appointment as a commission sales representative for the Cellomics
         ArrayScan II reader and its attendant software, the Cellomics Kits and
         the Cellomics Store and Screen Software in the countries specified in
         Paragraph 2.4. Except for Cellomics' employees, Cellomics shall not
         appoint any other commission sales representative within the countries
         specified in Paragraph 2.4 for the ArrayScan II reader or its attendant
         software, the Cellomics Kits or the Cellomics Store and Screen
         Software. The term of this appointment (the "Commission Representative
         Term") shall begin on the Effective Date and end with the Instrument
         Appointment Date (as that term is defined in Paragraph 3.2).

2.2      DUTIES OF BCI - The specific duties and obligations of BCI during the
         Commission Representative Term are defined in attached Exhibit 2.2.

2.3      DUTIES OF CELLOMICS - The specific duties and obligations of Cellomics
         during the Commission Representative Term are defined in attached
         Exhibit 2.3.

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

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2.4      TERRITORY - Beginning with the Effective Date, BCI shall be a
         commission sales representative in the United States, Canada and those
         countries in Europe identified in attached Exhibit 2.4 where BCI
         maintains a direct sales force. BCI shall, at a time mutually agreeable
         to the parties, but in no event later than ninety (90) days after the
         Effective Date, be a commission sales representative in Japan. If BCI
         does not agree to be a commission sales representative in Japan within
         such ninety (90) days then Cellomics may retain for itself or may
         appoint one or more other parties as its representative in Japan and
         BCI shall have no further rights under this Agreement relative to the
         Products in Japan.

2.5      TRAINING - Promptly after the Effective Date, Cellomics will train BCI
         field sales, service and marketing personnel on the ArrayScan II reader
         and attendant software, Cellomics Kits and the Cellomics Store and
         Screen Software; BCI will select the BCI personnel to attend such
         training. Promptly after the Effective Date, BCI will train Cellomics
         field technical support personnel on the BCI Biomek, Biomek FX and Core
         Systems automation platforms; Cellomics will select the Cellomics
         personnel to attend such training. The parties will mutually agree on
         the times and locations for such training. Each party shall bear its
         own expenses and those of its employees for such training.

2.6      COMPENSATION TO BCI - Cellomics shall compensate BCI for its activities
         as a commission sales representative as follows:

         (a)      Except as provided in Paragraph 2.6(b) for those sales,
                  leases, rentals or other placements of an ArrayScan II reader
                  or Cellomics Store and Screen Software made by BCI or
                  Cellomics to those laboratories or facilities of third parties
                  which either own, lease, rent or otherwise possess a BCI
                  Biomek or Biomek FX or Core System ... [*] of the Net Selling
                  Price of the ArrayScan II reader and attendant software and
                  the Cellomics Store and Screen Software. For the avoidance of
                  doubt, the foregoing commission will only be earned if the
                  ArrayScan II reader or Cellomics Store and Screen Software is
                  placed in the same third party laboratory or facility that
                  possesses

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

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                  one or more of the foregoing BCI products and will not be
                  earned if the ArrayScan II reader or Cellomics Store and
                  Screen Software is placed in a third party laboratory or
                  facility which does not possess one of the foregoing BCI
                  products even though such third party may possess one or more
                  of such BCI products in another of its laboratories or
                  facilities.

         (b)      For those sales, leases, rentals or other placements of an
                  ArrayScan II reader and attendant software or Cellomics Store
                  and Screen Software made by Cellomics or BCI to a third party
                  identified in attached Exhibit 2.6 which are completed by
                  Cellomics or BCI within ninety (90) days of the Effective Date
                  ... [*] of the Net Selling Price of the ArrayScan II reader
                  and attendant software and the Cellomics Store and Screen
                  Software.

         (c)      For those sales, leases, rentals or other placements of an
                  ArrayScan II reader and attendant software or Cellomics Store
                  and Screen Software made by Cellomics or BCI to third parties
                  who are not within categories (a) or (b) hereof ... [*] of the
                  Net Selling Price of the ArrayScan II reader and attendant
                  software or the Cellomics Store and Screen Software.

         (d)      For those sales of Cellomics Kits and Cellomics Reagents by
                  Cellomics... [*] of the Net Selling Price of such Kits.

         (e)      For those sales of Cellomics Kits and Cellomics Reagents by
                  BCI subject to the volume discounts specified in Exhibit 3.3
                  attached, Cellomics shall pay BCI commissions in accordance
                  with Exhibit 3.3 attached.

         For purposes of this Agreement, Net Selling Price shall mean the gross
         amount of all monies received by Cellomics from the sale, lease, rental
         or other placement of the ArrayScan II reader and attendant software
         and/or from the Cellomics Store and Screen Software and/or Cellomics
         Kits from non-Affiliated third parties less the sum of the following:
         (a) trade, quantity, early payment and cash discounts actually allowed
         and taken, (b) credits and allowances actually given for returned or
         rejected goods, (c) freight, special handling or crating charges,
         transportation insurance,

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

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         custom duties and custom broker's fees and expenses, and (d)
         value-added, sales, excise, use or turnover taxes.

         2.6.1    BCI agrees that it shall provide incentive compensation to its
                  field sales representatives who are directly responsible for
                  BCI receiving the compensation provided for in Paragraph 2.6
                  in substantially the same manner and on substantially the same
                  basis as BCI provides incentive compensation to its field
                  sales force on the sale, lease or rental of BCI products.

2.7      METHODS DEVELOPMENT - Cellomics shall throughout the term of this
         Agreement, use reasonable commercial efforts to develop new
         applications and uses for the ArrayScan II reader. Cellomics agrees to
         produce at least [*] new Cellomics Kits each year for the first and
         second years following the Instrument Appointment Date, defined in
         Paragraph 3.1 below.

                        3.0 DISTRIBUTION OF THE PRODUCTS

3.1      APPOINTMENT OF BCI FOR THE PRODUCTS - Subject to the remainder of this
         Paragraph, Cellomics hereby appoints BCI and BCI accepts appointment as
         the sole and exclusive world-wide distributor of the Products. Except
         for (a) placement of Cellomics Instruments with Centers of Excellence
         in accordance with Paragraphs 12.2 and 12.3, (b) placement with those
         third parties who are assisting Cellomics in the development of the
         Cell Chip Program, and (c) placement with third parties who are
         collaborating with Cellomics in any research, development or other
         effort (x) beginning with the Effective Date for the ArrayScan Kinetics
         reader, and (y) beginning with the Instrument Appointment Date
         (specified in Paragraph 3.2) for the ArrayScan II reader and the
         Cellomics Store and Screen Software, Cellomics shall not sell, lease,
         rent or otherwise place with or distribute the Products to any third
         party.

3.2      TERM OF APPOINTMENT FOR CELLOMICS INSTRUMENTS - The term of BCI's
         appointment as sole and exclusive distributor of the Cellomics
         Instruments shall begin on the date Cellomics certifies to BCI in
         writing that (a) development of the ArrayScan Kinetics reader and its
         attendant software has been completed, (b) such reader and software

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

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         each meets all of the specifications of Exhibit 1.4, and (c) Cellomics
         is fully capable of delivering commercial quantities of such reader
         within ninety (90) days of receipt of a BCI Purchase order (the
         "Instrument Appointment Date"). Unless earlier terminated in accordance
         with the provisions of this Agreement, BCI's appointment pursuant to
         Paragraph 3.1 shall continue for the term of this Agreement.

3.3      APPOINTMENT OF BCI FOR CELLOMICS KITS AND CELLOMICS REAGENTS -
         Beginning with the Instrument Appointment Date Cellomics appoints BCI
         and BCI accepts appointment described in Paragraph 3.1 as commission
         sales representative and the co-exclusive seller (with Cellomics) of
         Cellomics Kits and Cellomics Reagents for the territory comprising the
         United States, Canada, those countries specified in attached Exhibit
         2.4 and Japan (but Japan only if BCI is at such time a commission sales
         representative for Japan). Cellomics agrees that (a) , except for sales
         to customers identified by BCI in BCI's capacity as a commission sales
         representative under supply agreements between Cellomics and such
         customers ("BCI Kit Customers"), Cellomics shall only sell, distribute
         or otherwise place Cellomics Kits and Cellomics Reagents with third
         parties [*] and shall sell such Kits and Reagents in accordance with
         the schedule in Exhibit 3.3, (b) it shall sell Cellomics Kits and
         Cellomics Reagents to BCI Kit Customers at the discounts from Cellomics
         then prevailing list price specified in attached Exhibit 3.3, (c) it
         shall directly ship Cellomics Kits and Cellomics Reagents to BCI Kit
         Customers, (d) it may sell Cellomics Kits and Cellomics Reagents to
         original equipment manufacturers (OEM's) for use with non-automated
         microscopes and similar non-automated equipment manufactured by such
         OEM's and (e) it shall pay commissions to BCI for all sales of
         Cellomics Kits and Cellomics Reagents by Cellomics to Cellomics
         customers and to BCI Kit Customers in accordance with the schedule in
         attached Exhibit 3.3. BCI's foregoing appointment shall, unless earlier
         terminated in accordance with the terms of this Agreement, BCI continue
         for the term of this Agreement.

         3.3.1    Notwithstanding the foregoing BCI and Cellomics agree, not
                  later than the first anniversary of the Instrument Appointment
                  Date, to reevaluate in good faith the commissions paid to BCI
                  under Exhibit 3.3.

3.4      MANUFACTURE AND SALE - Cellomics agrees to and shall manufacture, sell
         and deliver to BCI and BCI agrees to and shall purchase and take from
         Cellomics such quantities of the Products and spare parts therefor as
         BCI may order in accordance with this Agreement.

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

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3.5      SHIPMENT TERMS - The Products and all spare parts are sold FOB
         Cellomics facility in Pittsburgh, Pennsylvania. Subject to Paragraph
         3.10.1 and the remainder of this Paragraph, BCI shall pay all freight
         and insurance costs from such Cellomics facility to the destination of
         the Product specified in the BCI Purchase Order. BCI shall have the
         right to bill the customer for freight, insurance, duty, custom broker
         fees and expenses, taxes, handling and similar charges and expenses.
         Cellomics shall, upon written request from BCI, ship an ordered Product
         directly to BCI's customer. Cellomics shall, upon written request from
         BCI, prepay the cost of freight and insurance to ship an ordered
         Product to the BCI designated destination and add such cost to the
         invoice for such Product. Title to and risk of loss of the Products
         shall pass to BCI at the Cellomics facility upon delivery by Cellomics
         to the BCI designated carrier.

3.6      SPECIFICATIONS - Each of the Products ordered hereunder shall conform
         to the specifications of Exhibit 1.4. Each of the Cellomics Kits
         ordered hereunder shall conform to the specifications of Exhibit 1.5

3.7      WARRANTY SERVICE - Subject to the remainder of this Paragraph, BCI
         shall provide each third party customer purchasing, leasing, renting or
         otherwise accepting a Product from BCI a warranty in the form of the
         Cellomics Warranty which is included on Exhibit 3.7A and against
         defects in materials or workmanship. BCI shall be responsible for
         performing warranty service in accordance with the preceding sentence
         for the Cellomics Instruments ordered by BCI under this Agreement.
         Cellomics shall be responsible for and shall promptly perform the
         warranty service on the Cellomics Store and Screen Software ordered by
         BCI under this Agreement. Cellomics shall provide, at no cost or
         expense to BCI (including freight, insurance and custom duties and
         expenses to the destination designated by BCI), all replacement parts
         required by BCI in performing such warranty services or preventive
         maintenance associated therewith on Cellomics Instruments. Cellomics
         shall maintain a sufficient inventory of parts at sites designated by
         BCI to provide a twenty-four (24) hour response time for routine and
         expected repairs and a forty eight (48) hour response time on major or
         unanticipated repairs. Cellomics shall also reimburse BCI at BCI's then
         standard rates (which the parties understand and agree may be increased
         from time to time by BCI) for the time spent and expenses incurred by
         BCI service personnel in performing such warranty repairs and
         preventive maintenance on

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         Cellomics Instruments and in traveling to and from the service
         personnel's home office to the customer requesting such warranty
         service or preventive maintenance.

3.8      CELLOMICS' RESPONSIBILITIES - The specific duties and responsibilities
         of Cellomics during the term that BCI is the sole and exclusive
         distributor of the Cellomics Instruments are specified in attached
         Exhibit 2.3.

3.9      PURCHASE PRICE - Subject to the remainder of this Paragraph, the
         purchase price to BCI of the Products are those shown in attached
         Exhibit 3.9A. As further described on Exhibit 3.9B for each individual
         transaction between BCI and a third party customer of a Product where
         the Net Selling Price (as that term is hereafter defined) of such
         Product differs from Cellomics then established list price for such
         Product by more [*] an adjustment will be paid. The adjustment will be
         paid (a) to BCI, where such Net Selling Price is more than [*] lower
         than List Price, or (b) to Cellomics where such Net Selling Price is
         more than [*] higher than such List Price. The amount of each such
         adjustment shall be [*] of the difference between the Net Selling Price
         and the List Price for each such transaction made by BCI in such
         calendar quarter. Solely for purposes of this calculation in no event
         shall the net selling price be treated as being less than [*] of the
         then current List Price. The aggregate of such adjustments will be
         calculated and the net amount paid to the party owed within thirty (30)
         days of the end of each calendar quarter. For purposes of this
         Paragraph 3.9,

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

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         Net Selling Price shall mean the gross amount of all monies received by
         BCI from the sale of the Product less the sum of the following: (a)
         trade, quantity, early payment and cash discounts actually allowed and
         taken, (b) credits and allowances actually given for returned or
         rejected goods, (c) freight, special handling or crating charges,
         transportation insurance, custom duties and custom broker's fees and
         expenses, and (d) value-added, sales, excise, use or turnover taxes.

         3.9.1    The purchase price to BCI for replacement parts to be used by
                  BCI for non-warranty repairs and preventive maintenance shall
                  be Cellomics [*].

3.10     PURCHASE ORDERS AND MINIMUM ORDER TIME - FORECASTS - BCI shall,
         promptly after the Instrument Appointment Date, provide Cellomics with
         a written forecast of the quantity of each Product which BCI
         anticipates it will purchase from Cellomics during each of the next
         twelve (12) months. A BCI Purchase Order for the total quantity, if
         any, of each Product BCI desires to purchase in the initial three (3)
         months of such forecast shall accompany the forecast. The remaining
         months of the forecast shall be BCI's commercially reasonable estimate
         of its requirements for such Products during such period. The forecast
         shall not be binding on either party and shall be used for planning
         purposes only.

         3.10.1   BCI shall, within ten (10) days of the end of each month
                  thereafter, send Cellomics a revised twelve (12) month
                  forecast. BCI shall include with each revised forecast a
                  Purchase Order for the quantities, if any, of each Product
                  specified in month three (3) thereof. The remaining nine (9)
                  months of the revised forecast shall be BCI's commercially
                  reasonable estimate of its requirements for such Products
                  during such period. The revised forecasts shall not be binding
                  on either party and shall be used for planning purposes only.

         3.10.2   Notwithstanding Paragraphs 3.10 and 3.10.1, Cellomics shall
                  not ship Products, including those Products manufactured
                  pursuant to the Purchase Orders of such Paragraphs to BCI. For
                  the avoidance of doubt, all Products ordered under this
                  Agreement shall be shipped directly to BCI customers
                  designated by BCI, either pursuant to each Purchase Orders or
                  subsequent thereto if the designation on such Purchase Order
                  is to manufacture and hold pending instructions from BCI.
                  Cellomics shall not invoice BCI for Products manufactured
                  under this Agreement until such

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

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                  Products have been shipped to a BCI designated customer.

                  BCI may from time to time present BCI Purchase Orders to
                  Cellomics for Products and spare parts therefore. Cellomics
                  shall accept each such Purchase Order and deliver the quantity
                  of each Product and spare part specified therein; provided
                  that, Cellomics shall only be required to deliver, within the
                  ninety (90) days specified in the next sentence of this
                  Paragraph, that quantity of each such Product which is within
                  [*] of the quantity specified for such Product in the forecast
                  submitted by BCI to Cellomics at least three (3) months in
                  advance of such Purchase Order and the remaining quantity of
                  such Product may be delivered in one hundred and eighty (180)
                  days from receipt of such Purchase Order by Cellomics. Each
                  BCI Purchase Order shall not require delivery of (a) the
                  specified Product in less than ninety (90) days from receipt
                  of such Purchase order, and (b) the specified spare parts in
                  not more than one (1) day from receipt of such Purchase Order.
                  Cellomics accepts that time is of the essence in its
                  performance under any BCI Purchase Order and, as such, subject
                  only to the limitation of the preceding sentence, it shall
                  deliver the Products and spare parts on the date specified in
                  such BCI Purchase Order.

         3.10.3.  Cellomics shall promptly communicate to BCI any anticipated
                  delays in delivery under any BCI Purchase Order so that
                  special shipping arrangements may be made. Cellomics will be
                  responsible for the charges associated with or resulting from
                  special shipping arrangements for late deliveries.

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

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3.11     PAYMENT TERMS - BCI shall pay each Cellomics invoice for Products
         within [*] of the later of: (a) receipt of the invoice, or (b) receipt
         of the Products referenced on such invoice by (i) BCI or (ii) the BCI
         customer in the case of drop-shipping by Cellomics directly to BCI's
         customer.

3.12     WARRANTY - Cellomics warrants the Products in accordance with the terms
         of Exhibit 3.7A. Cellomics shall promptly repair or replace any
         Products or the parts thereof which fail to conform to the foregoing
         warranty without cost or expense therefor to BCI including shipping
         charges to return defective Products or parts to Cellomics and to ship
         replacement Products from Cellomics to BCI or its customer.

3.13     QUALITY TESTING - Cellomics shall, prior to any shipment of a Product
         sold hereunder, perform on such Product each of the quality tests
         specified in attached Exhibit 3.13. The Cellomics invoice for each
         shipment of a Product shall have attached thereto a certificate signed
         by an authorized representative of Cellomics attesting to the
         performance of such testing and giving the results thereof.

3.14     PRODUCT PROBLEMS - Cellomics shall promptly communicate to BCI all
         information which comes to its attention pertaining to the performance
         of the Products and Cellomics Kits or product anomalies or stability
         problems relative thereto. BCI shall promptly inform Cellomics of
         similar problems which come to its attention. Cellomics shall promptly
         investigate and regularly report back to BCI on its actions
         contemplated and taken to resolve all such problems.

3.15     PRODUCT CORRECTIVE ACTION - BCI shall be responsible for, coordinate
         and conduct any corrective action required for Products sold hereunder
         to its customers. Cellomics shall be responsible to the extent of its
         warranty contained in Exhibit 3.7A. Notwithstanding the foregoing for
         latent design or manufacturing defects, Cellomics, at its expense, will
         for a period of two (2) years following the earlier of delivery of the
         Product to BCI or its customer at Cellomics' option either repair or
         replace such Product. Notwithstanding the preceding two sentences
         Cellomics will, for the life

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       14
<PAGE>   15

         of the Product, at its sole cost and expense and at its option, repair
         or replace Products shown to have a material safety hazard.

3.16     PURCHASE AND SALE FORMS - Except as otherwise mutually agreed in
         writing signed by both parties, any terms and conditions on either a
         BCI Purchase Order or a Cellomics Order Acknowledgement or any other
         document relating to the purchase, sale or transfer of Products between
         the parties which are in conflict with any of the terms of this
         Agreement shall be null and void and without legal effect.

3.17     IMPROVEMENTS - Cellomics shall promptly disclose to BCI any
         improvements to, or applicable to, the Products and shall offer such
         improvements to BCI. The parties will mutually agree on the phase in
         dates for such improvements.

3.18     TECHNICAL LITERATURE AND MARKETING ASSISTANCE - Cellomics shall supply
         BCI with copies of all current and hereafter developed published
         technical literature relative to the Products and BCI acknowledges and
         agrees that such published technical literature is the sole property of
         Cellomics. Subject to the proviso hereafter and only during the term of
         this Agreement, BCI at its sole expense may freely copy such
         literature, in whole or in part, without royalty or payment to
         Cellomics therefor and may use such copies solely in conjunction with
         its sale and customer support of Products; provided that BCI shall not
         make any claims for the performance of the Products unless such claims
         appear in the Cellomics' literature or have been otherwise authorized
         in writing by Cellomics' nor shall BCI change the published technical
         literature describing specifications for the Products without the prior
         written approval of Cellomics. The parties agree to work together to
         develop a mutually agreeable marketing plan and a mutually agreeable
         arrangement to share the costs of such marketing plan.

                                       15
<PAGE>   16

3.19     CUSTOMER ASSISTANCE - BCI shall be the first interface in responding to
         inquiries from its direct customers regarding the specifications and
         performance of the Products. BCI may, from time to time, call upon
         Cellomics and seek its expertise and knowledge of the Products in
         formulating answers for such BCI customer questions. Cellomics shall
         provide such assistance to BCI. Cellomics shall, at the request of BCI,
         communicate directly with BCI's customers having questions about or
         problems with the Products.

3.20     PROGRAM MANAGER - Each party shall appoint a program manager (each a
         "Program Manager") who, except for notices under Article 10.0, shall be
         the source of all communications from, and the addressee of all
         communications to, such party relative to the actions, rights,
         obligations, duties and objectives of such party under this Agreement.
         The Program Managers shall meet from time to time, not less than each
         calendar quarter, to discuss each party's performance under this
         Agreement, consult and agree on the joint decisions required under this
         Agreement and to the extent possible resolve any differences between
         the parties.

3.21     HOLD HARMLESS - Subject to the next sentence, Cellomics agrees to and
         shall defend, indemnify and hold BCI, its employees, agents and
         officers harmless, including professional fees necessary to consider,
         advise and defend, from and against any suit or proceeding alleging
         injury to persons, including death, or property and any liability,
         damages or penalties awarded or agreed to therein and resulting from or
         arising out of the possession or use of the Products. Notwithstanding
         the foregoing, in the event a court, mediator, arbitrator or mutual
         agreement between BCI and Cellomics in a final decision from which no
         appeal has or can be taken determines that a portion of such liability,
         damages or penalties as relate to injuries to property or persons,
         including death, are caused by the negligence, or willful misconduct of
         BCI, its employees, agents or officers BCI shall reimburse Cellomics
         for that portion of the cost of attorneys engaged by Cellomics to
         defend BCI and Cellomics and for that portion of the damages awarded
         which are attributed by the determination to BCI's negligence or
         willful misconduct. Until such determination Cellomics shall defend BCI
         with counsel chosen by Cellomics, but reasonably acceptable to BCI and
         Cellomics shall control the

                                       16
<PAGE>   17

         course and conduct of such litigation; provided that Cellomics shall
         not settle or otherwise compromise any litigation wherein BCI is a
         named defendant without the prior written consent of BCI which consent
         shall not be unreasonably withheld.

         3.21.1   Cellomics represents and warrants that there are no pending
                  lawsuits, and that it is not aware of any threats of lawsuits
                  against Cellomics, alleging, inter alia, product liability,
                  breach of warranty, patent infringement or theft of trade
                  secret relative to its manufacture, sale or use of the
                  Products being sold or under development as of the Effective
                  Date.

3.22     INSURANCE - Cellomics shall, at all times during the term of this
         Agreement, purchase and maintain, comprehensive general liability
         insurance including products liability, contractual liability and broad
         form property damage and excluding patent infringement coverage. The
         combined single limits of insurance shall be not less than Five Million
         Dollars ($5,000,000).

         Such insurance shall also require thirty (30) days prior written notice
         of cancellation or material change in coverage. Such insurance shall
         provide that it is primary without right of contribution from any other
         insurance which might otherwise be available to the insured party and
         provide that in the event of loss payment under a policy the insurer
         shall waive any set-off or counterclaim or any other deduction whether
         by attachment or otherwise as respects the activities under this
         Agreement unless attributed to BCI's negligence or willful misconduct
         under Paragraph 3.21.

         3.22.1   Cellomics shall, at all times during the term of this
                  Agreement, purchase and maintain commercially reasonable
                  Property and Business Interruption insurance in an amount not
                  less than $5,000,000. The proceeds received on a claim filed
                  against such insurance shall be used by Cellomics to
                  reestablish Cellomics' business in the event of any covered
                  interruption. Cellomics represents and warrants that in the
                  event of any covered interruption, it shall use its reasonable
                  efforts to reestablish its business and resume shipment of
                  Products to BCI as quickly as possible.

                                       17
<PAGE>   18

3.23     THIRD PARTY PATENTS - Cellomics agrees to and shall defend, indemnify
         and hold BCI and its customers harmless, including attorneys' fees
         necessary to consider, advise and defend, from and against any suit,
         proceeding, claim or loss and any damages or penalties awarded or
         agreed to therein so far as such suit or proceeding is based upon an
         assertion that the use or sale of Products purchased under this
         Agreement constitutes an infringement of any Letters Patent or the
         unauthorized use of any third party trade secret. If any Products are,
         in such suit or proceeding, held to infringe or use such trade secret
         and their further use or sale is enjoined, Cellomics shall, at it sole
         cost and expense use reasonable efforts to, at its sole option either:
         (1) procure for BCI and its direct and indirect customers, the right to
         continue using and selling such Products, (2) replace the same with a
         non-infringing equivalent, (3) modify such Products so that they become
         non-infringing or do not use the unauthorized trade secret, or (4)
         accept return of the Product and grant customer a refund thereon based
         on the price actually paid less a reasonable allowance for use, damage
         or obsolescence. Cellomics shall defend any such litigation wherein BCI
         is a named defendant with counsel of its choosing, provided that such
         counsel is acceptable to BCI in its reasonable discretion. Cellomics
         shall direct the course and conduct of any such litigation, including
         the settlement thereof, provided that Cellomics shall not settle or
         otherwise compromise any such litigation wherein BCI is a named
         defendant without the prior written approval of BCI which approval
         shall not be unreasonably withheld.

                                       18
<PAGE>   19

3.24     HIRING OF EMPLOYEES - BCI may, with Cellomics prior written approval at
         any time after the Instrument Appointment Date, offer employment to and
         employ any Cellomics field technical support or sales or service
         person. No consideration or compensation shall be provided to Cellomics
         by reason of such offer of employment or employment. Cellomics may,
         with BCI's prior written approval, at any time after the Instrument
         Appointment Date, offer employment to and employ any BCI field
         technical support or sales or service person. No consideration or
         compensation shall be provided to BCI by reason of such offer of
         employment or employment.

3.25     SERVICE AGREEMENTS - BCI shall, promptly after the Instrument
         Appointment Date, offer service agreements to each third party who has
         acquired an ArrayScan II reader from Cellomics prior to such date or
         who acquires a Cellomics Instrument from BCI after such date. Such
         agreements shall be offered under the same terms and conditions and at
         the same rates as BCI then offers to its customers of BCI products. BCI
         may, from time to time, change the terms, conditions and rates for
         servicing Cellomics Instruments so long as the new terms, conditions
         and rates are the same as those then being offered to acquirors of BCI
         products. Cellomics shall, as contemporaneously with the Instrument
         Appointment Date as is reasonable under the circumstances, provide BCI
         with the names and addresses of each third party who has, to that date,
         acquired an ArrayScan II reader including the name of the principal
         contact at such third party who should be the addressee of BCI's offer
         of a service agreement.

                     4.0 TERM AND TERMINATION OF AGREEMENT

4.1      TERM - Subject to the remainder of this Paragraph, the term of this
         Agreement shall begin on the Effective Date and, subject to the next
         sentence hereof, unless terminated in accordance with Paragraph 4.2 or
         4.3, shall terminate on the tenth (10th) anniversary thereof (the
         "Initial Term"). Notwithstanding the preceding sentence, this Agreement
         shall automatically, without action or notice of the parties be
         automatically renewed from year to year after the Initial Term unless
         at least six (6) months prior to such tenth (10th) anniversary or any
         anniversary thereafter either party gives the other

                                       19
<PAGE>   20

         party written notice of its intent to terminate effective as of such
         tenth (10th) or subsequent anniversary.

         4.1.1    Notwithstanding anything in Paragraph 4.1 or this Agreement to
                  the contrary, Cellomics shall (a) continue to sell and deliver
                  to BCI customers Cellomics Kits and Cellomics Reagents, and
                  (b) shall sell and deliver to BCI (i) spare parts for the
                  Cellomics Instruments ordered or otherwise placed by BCI under
                  this Agreement and (ii)such components of the Cell Chip System
                  sold to BCI under the agreement negotiated and signed in
                  accordance with Paragraph 9.4.1, in each case, as BCI may
                  order for five (5) years after the last in time to occur of
                  (x) the purchase by BCI under this Agreement of a Cellomics
                  Instrument or (y) the purchase by BCI of such components of a
                  Cell Chip System. The prices for the spare parts for the
                  Cellomics Instruments shall be those set forth in Paragraph
                  3.9.1 of this Agreement and the prices for the components of
                  the Cell Chip System shall be those set forth in the agreement
                  negotiated in accordance with Paragraph 9.4.1. The obligations
                  of this Paragraph 4.1.1 shall survive the term and any
                  termination of this Agreement as if they were contained in
                  independent agreements having the term of the first sentence
                  hereof.

4.2      TERM OF EXCLUSIVITY - Attached hereto as Exhibit 4.2 is a table
         specifying the target number of Cellomics Instruments the parties agree
         BCI must acquire in each of the first two (2) years (each an "Agreement
         Year") commencing with the Instrument Appointment Date to maintain the
         designation as the sole and exclusive distributor of the Products in
         the countries specified in Paragraph 2.4. The parties shall meet not
         later than thirty (30) days after the end of each calendar quarter to
         assess sales of Cellomics Instruments. The parties agree that Cellomics
         shall participate in BCI sales and planning meetings as they relate to
         sales of Cellomics Instruments. Subject to the proviso hereafter, the
         target number of Cellomics Instruments to be acquired in years three
         (3), four (4) and five (5) to maintain the right in BCI to be the sole
         and exclusive distributor of the Products in the countries designated
         in Paragraph 2.4 will be determined by mutual agreement of the parties
         not later than the second anniversary of the Instrument Appointment
         Date and reviewed annually prior to each subsequent

                                       20
<PAGE>   21

         anniversary of the Instrument Appointment Date. If BCI acquires at
         least the target number of Cellomics Instruments specified for an
         Agreement Year, then BCI shall continue as the sole and exclusive
         distributor of the Products for the next Agreement Year. If BCI does
         not acquire at least the target number of Cellomics Instruments
         specified for an Agreement Year, then Cellomics may, at its option,
         terminate BCI's right to acquire Cellomics Products from Cellomics on
         twelve (12) months prior written notice. Cellomics shall exercise such
         option not later than thirty (30) days after the end of an Agreement
         year wherein BCI did not acquire the target number of Cellomics
         Instruments. During such twelve (12) month period BCI shall be a
         co-exclusive distributor of the Cellomics Products and Cellomics may
         distribute the Cellomics Products on its own or through its nominee. If
         Cellomics fails to exercise such option within such thirty (30) days,
         then such option for such Agreement Year shall terminate and BCI shall
         continue as the sole and exclusive distributor of the Products.
         Termination of BCI's right to acquire Cellomics Instruments shall be
         Cellomics sole and exclusive remedy under this Agreement for such
         shortfall. For the avoidance of doubt, in the event Cellomics elects to
         terminate BCI's right to acquire Cellomics Instruments in accordance
         with this Paragraph, Cellomics shall continue to supply BCI, under the
         terms of this Agreement with spare parts for the Cellomics Instruments
         for not less than the term of Paragraph 4.1.1 and this Agreement shall
         otherwise remain in full force and effect.

         4.2.1    Not later than the fourth anniversary of the Instrument
                  Appointment Date and on each subsequent annual anniversary
                  thereof, the parties shall agree on the number of Cellomics
                  Instruments which BCI must acquire in each of the five (5)
                  years commencing with the fifth anniversary of such Instrument
                  Appointment Date in order for BCI to maintain the designation
                  as the sole and exclusive distributor of the Products. If BCI
                  has either acquired the target quantity of Cellomics
                  Instruments in each of the ten (10) years beginning with the
                  Instrument Appointment Date or Cellomics has elected not to
                  exercise its rights in any year or years where there is a
                  shortfall, then BCI may, at its option, remain as the sole and
                  exclusive distributor of the Products for the remainder of the
                  term of this Agreement.

                                       21
<PAGE>   22

4.3      TERMINATION BY BCI -Subject to the remainder of this Paragraph 4.3, BCI
         may terminate its distribution of the Cellomics Instruments at any time
         during the Initial Term by twelve (12) months prior written notice to
         Cellomics ( the "BCI Notice"). . For the twelve (12) months after the
         sending of the BCI Notice, BCI shall be a co-exclusive distributor with
         Cellomics of the Cellomics Products and Cellomics may also sell such
         Products on its own or through its nominee. Termination of BCI's right
         to acquire and distribute Cellomics Instruments shall not terminate
         BCI's right to acquire from Cellomics and resell spare parts for
         Cellomics Instruments at the prices of Paragraph 3.9.1 for the term of
         Paragraph 4.1.1 and this Agreement shall otherwise remain in full force
         and effect.

4.4      Subject to Paragraph 8.3, either party to this Agreement may
         immediately terminate this Agreement in the event the other party
         commits a material breach of the terms hereof or fails to make payments
         to the other party or fails to make contributions of property to
         Centers of Excellence when required and such material breach, failure
         to pay or failure to contribute has not been cured within ninety (90)
         days of receiving written notice from the other party of such material
         breach or failure to pay or contribute.

                            5.0 LOAN OF INSTRUMENTS

5.1      LOAN OF INSTRUMENT - BCI shall, promptly after the Effective Date loan
         Cellomics a Biomek 2K pipettor-diluter instrument. BCI shall, promptly
         after the Instrument Appointment Date, loan Cellomics, at BCI's option,
         either a Biomek FX pipettor-diluter instrument or a Core System
         automation platform. Cellomics shall, promptly after the Instrument
         Appointment Date loan to BCI an ArrayScan Kinetics reader and
         prototypes of each of the other components of the Cell Chip Program as
         such prototype components become available. The Biomek 2K, Biomek FX,
         Core System, ArrayScan Kinetics reader and other components are the
         "Loaned Instruments". At the option of the party owning each Loaned
         Instrument, such Loaned Instruments may be new or used.

                                       22
<PAGE>   23

5.2      TRAINING - The party owning the Loaned Instruments will provide
         training on the Loaned Instrument at no cost to the other party for up
         to two (2) operators of such other party. Such other party shall pay
         for the transportation, room, board and other travel related expenses
         of its designated operators.

5.3      INSURANCE FOR LOANED INSTRUMENTS - The party borrowing each Loaned
         Instrument shall, at its cost, insure such Loaned Instruments for their
         full replacement value against all risks of loss or damage. The policy
         shall (a) name the party owning the Loaned Instrument as the payee in
         the event of loss or damage to the Loaned Instrument, (b) require
         thirty (30) days prior written notice to such owning party of
         cancellation or material change in coverage, (c) provide that such
         insurance is primary without right of contribution from any other
         insurance which might otherwise be available to the owning party, and
         (d) provide that in the event of any loss payment the insurer waives
         any right of subrogation and any set-off, counter-claim or any other
         deduction whether by attachment or otherwise as respects the activities
         under this or any other agreement between the parties.

5.4      SERVICE - The party borrowing the Loaned Instrument shall, at it sole
         cost, be responsible for the maintenance, repair and service of the
         Loaned Instruments. Concurrently with the signing of this Agreement and
         on each anniversary thereof, Cellomics shall enter into an exclusive
         service contract with BCI, at BCI's then prevailing prices and terms,
         for the maintenance, service and repair of the Loaned Instruments
         loaned to Cellomics.

5.5      USE OF LOANED INSTRUMENTS - Cellomics represents and warrants that it
         shall use the Loaned Instruments in its possession solely for methods
         and application development of Cellomics Instruments and Cellomics Kits
         under this Agreement and for the development of products intended by
         mutual agreement of the parties to be included within this Agreement.
         BCI represents and warrants that it shall use the Loaned Instruments in
         its possession solely for development of automation of the Cell Chip
         Program. Each party borrowing a Loaned Instrument further represents
         and warrants that the Loaned Instruments shall not be moved from such
         party's

                                       23
<PAGE>   24

         above identified facility without the express written approval of the
         party owning the Loaned Instrument. Each party borrowing a Loan
         Instrument shall maintain the Loaned Instruments in good operating
         condition and shall use them only in accordance with the owning party's
         published procedures and recommendations. Except as may be necessary to
         accomplish automation of the Cell Chip Program in accordance with
         Paragraph 9.2.1, the party borrowing a Loaned Instrument shall not make
         any alterations or modifications to such Loaned Instruments.

5.6      PROPERTY IN LOANED INSTRUMENTS - Each party borrowing a Loaned
         Instrument agrees that the Loaned Instruments shall at all times be and
         remain the sole and exclusive property of the lending party; provided
         that the borrowing party hereunder shall have the sole right during the
         term of this Agreement to the use and possession of the Loaned
         Instrument for the limited purpose of Paragraph 5.5. Each party shall,
         at the request of the owner thereof, fix and maintain labels indicating
         such ownership of the Loaned Instrument. The party borrowing a Loaned
         Instrument shall also assist the owner thereof in the preparation,
         signing and filing of UCC-1 forms and other documents such owner may
         reasonably request to establish and give notice of such ownership of
         the Loaned Instrument. The party borrowing the Loaned Instrument shall
         not mortgage or pledge the Loaned Instrument nor permit any third party
         to attach or maintain a lien thereon.

5.7      RETURN OF LOANED INSTRUMENTS - On termination of this Agreement, or
         such other date as the parties may agree, the party borrowing the
         Loaned Instrument shall deliver such Loaned Instrument to its owner, at
         such borrowing party's facility. The Loaned Instrument at delivery to
         its owner will be in the same condition it was when received by the
         borrowing party, reasonable wear and tear excepted. The borrowing party
         shall also permit access to such facility to the owner's employees or
         agents to crate the Loaned Instrument and effect its removal.

                                       24
<PAGE>   25

5.8      REPRESENTATIONS AND WARRANTIES - Other than warranty of title and good
         working order, the owner of a Loaned Instrument makes no
         representations or warranties, express or implied, with respect to such
         Loaned Instrument and none shall be created whether under the Uniform
         Commercial Code, custom, practice or the course of dealings between the
         parties.

5.9      HOLD HARMLESS - Subject to the next sentence hereof, each party
         borrowing a Loaned Instrument agrees to and shall defend and hold the
         owner harmless (including attorneys' fees to consider, advise and
         defend the owner, court costs and any award of damages) from and
         against any claim, liability or suit alleging injury to persons,
         including death, or property and arising out of the borrowing party's
         possession or use of the Loaned Instruments. Notwithstanding the
         preceding sentence, in the event a claim, liability or suit alleging
         injury to property or persons, including death, which a court,
         mediator, arbitrator or mutual agreement between BCI and Cellomics in a
         final decision from which no appeal has or can be taken determines that
         a portion of such liability, damages or penalties as relate to injuries
         to property or persons, including death, are caused by the negligence,
         or willful misconduct of the owning party, its employees, agents or
         officers, the owning party shall reimburse the borrowing party for that
         portion of the cost of attorneys engaged by the borrowing party to
         defend the owning party and borrowing party and for that portion of the
         damages awarded which are attributed by the determination to the owning
         party's negligence or willful misconduct. Until such determination the
         borrowing party shall defend the owning party with counsel chosen by
         the borrowing party, but reasonably acceptable to the owning party, and
         the borrowing party shall control the course and conduct of such
         litigation; provided that the borrowing party shall not settle or
         otherwise compromise any litigation wherein the owning party is a named
         defendant without the prior written consent of the owning party which
         consent shall not be unreasonably withheld.

                                       25
<PAGE>   26

5.10     LICENSE TO COMPUTER SOFTWARE - All computer software and/or programs,
         (meter boards) and accessories (regardless of storage media) provided
         with or in the Loaned Instruments and/or provided by the owner of the
         Loaned Instrument from time to time during the term of this Agreement
         (jointly and severally the "Software") and all copies of the Software
         shall at all times be and remain the sole and exclusive property of
         such owner. The owner grants the borrowing party a limited
         non-exclusive license to use the Software only in the operation of the
         Loaned Instruments. The party borrowing the Loaned Instrument, by the
         signature of its duly authorized representative below, acknowledges
         that: (i) it shall use the Software only in accordance with the limited
         license granted by the owner of the Loaned Instrument, (ii) it shall
         not copy nor knowingly permit others to copy the Software, except as
         may be necessary under Paragraph 9.2; (iii) it shall not decompose,
         reverse engineer, create derivatives or otherwise modify the Software;
         and (iv) it shall return the Software to such owner on receipt from
         such owner of any improved, enhanced or replacement Software and upon
         termination of this Agreement.

                       6.0 CELLOMICS DISPLAY INSTRUMENTS

6.1      DEMONSTRATION UNITS - BCI shall identify the BCI facilities and vision
         centers ("BCI Locations") at which BCI regularly displays and
         demonstrates BCI products for its customers. BCI shall permit Cellomics
         to display one or more Cellomics Instruments at such BCI Locations
         (each such Cellomics Instrument is a "Display Instrument"). Cellomics
         shall provide and maintain the Display Instruments at such BCI
         Locations without cost or expense to BCI and at Cellomics' sole risk.
         BCI shall, upon reasonable advance notice, permit Cellomics
         representatives and customers access to such BCI Locations to
         demonstrate such Display Instruments.

                                       26
<PAGE>   27

6.2      HOLD HARMLESS - Subject to the next sentence, Cellomics agrees to and
         shall defend, indemnify and hold BCI harmless including professional
         fees to consider, advise and defend from and against any suit or
         proceedings alleging injury to persons, including death, or property
         and any liability, damages or penalties awarded or agreed to therein
         and resulting from or arising out of the presence on a BCI Location of
         a Display Instrument or a Cellomics employee or customer.
         Notwithstanding the preceding sentence, in the event a court, mediator,
         arbitrator or mutual agreement between BCI and Cellomics in a final
         decision from which no appeal has or can be taken determines that a
         portion of such liability, damages or penalties as relate to injuries
         to property or persons, including death, are caused by the negligence,
         or willful misconduct of BCI, its employees, agents or officers BCI
         shall reimburse Cellomics for that portion of the cost of attorneys
         engaged by Cellomics to defend BCI and Cellomics and for that portion
         of the damages awarded which are attributed by the determination to
         BCI's negligence or willful misconduct. Until such determination
         Cellomics shall defend BCI with counsel chosen by Cellomics, but
         reasonably acceptable to BCI, and Cellomics may control the course and
         conduct of such litigation; provided that Cellomics shall not settle or
         otherwise compromise any litigation wherein BCI is a named defendant
         without the prior written consent of BCI which shall not be
         unreasonably withheld.

                             7.0 CELLOMICS SOFTWARE

7.1      OPTION TO BCI - The parties understand, acknowledge and agree that
         Cellomics may develop with and for Carl Zeiss Jena GmbH ("Zeiss") a
         High Throughput Screening version of the Cellomics Store and Screen
         Software (respectively the "HTSSS Software" and the "Zeiss Project").
         Subject to the right of Cellomics to continue the Zeiss Project and for
         Cellomics to continue to utilize HTSSS Software for its own internal
         research, development and data generation, Cellomics hereby grants to
         BCI and BCI accepts an exclusive non-cancelable right and option to
         acquire an exclusive, world-wide, royalty-bearing right and license to
         the HTSSS Software for the field of High Throughput Screening (the
         "Field"). The term of such option shall be six (6) months from the
         Effective Date.

                                       27
<PAGE>   28

         7.1.1    BCI shall, by written notice to Cellomics, transmitted in
                  accordance with Article 17.0 at any time during the foregoing
                  option period, automatically have an exclusive, world-wide,
                  perpetual right and license to the HTSSS Software for the
                  Field. For the avoidance of doubt, the foregoing license to
                  BCI shall survive the term or any termination of this
                  Agreement as if it were the subject of a separate and
                  independent agreement with a perpetual term. The license shall
                  permit BCI only in the Field to add to the HTSSS Software new
                  or additional software only by making thereto additions which
                  adapt the HTSSS Software in the Field and which do not require
                  BCI to have access to the HTSSS Software source code. Except
                  as expressly permitted by the preceding sentence, BCI agrees
                  not to create derivatives of or otherwise modify the HTSSS
                  Software. BCI further agrees not to decompile or reverse
                  engineer the HTSSS Software.

7.2      CONVERSION OF HTSSS SOFTWARE TO THE FIELD - BCI may request Cellomics
         to develop the HTSSS Software for use in the Field at the sole cost and
         expense of BCI. Cellomics shall, upon receipt of such request, promptly
         prepare a detailed scope of work, including critical milestones, a
         schedule for time to completion of each of the critical milestones and
         the entire scope of work, and the cost to BCI for such completion. The
         parties agree to and shall negotiate in good faith such scope of work,
         milestones, schedule, the cost to BCI for completion of such scope of
         work in accordance with such schedule and other terms and conditions
         for the performance of such work. If BCI elects to nominate Cellomics
         as the developer of the HTSSS Software for the Field and the parties
         sign an agreement to that effect, Cellomics will use reasonable
         commercial efforts to complete the agreed scope of work in the agreed
         time for the agreed amount. Cellomics shall not supply to any other
         party nor use for its own internal purposes nor use on behalf of any
         third party the HTSSS Software developed for BCI.

7.3      ROYALTY TO CELLOMICS - If BCI exercises the option for the license to
         the HTSSS Software in accordance with Paragraph 7.1.1 and develops the
         HTSSS Software for use in the Field, BCI shall pay to Cellomics a
         running royalty for each copy of the

                                       28
<PAGE>   29

         HTSSS Software sold, leased, rented or otherwise distributed by BCI in
         the Field on terms and conditions to be mutually agreed by the parties.

7.4      MAINTENANCE AGREEMENT - If at BCI's request Cellomics develops the
         HTSSS Software for the Field, Cellomics agrees to and shall, without
         further consideration other than the royalty payments of Paragraph 7.3,
         promptly and regularly provide to BCI copies of all modification,
         improvements, refinements and new versions of the HTSSS Software
         ("Improvements"). The Improvements shall be automatically included in
         the license granted to BCI under Paragraph 7.1.1.

                            8.0 COMPETITIVE PRODUCTS

8.1      CELLOMICS NONCOMPETITION- Attached hereto as Exhibit 8.1 is a list of
         manufactured systems and components presently being distributed by
         Cellomics and the list prices thereof. Cellomics represents the
         products in Exhibit 8.1 are the only third party products, goods and
         services being sold, distributed or otherwise represented or promoted
         by Cellomics as of the Effective Date. Cellomics warrants that, except
         for the Cell Chip System it shall not, as long as BCI is the sole and
         exclusive distributor of the Products, sell, distribute or otherwise
         represent or promote any products, goods or services of third parties
         which compete with Cellomics Products other than those in Exhibit 8.1 .
         In addition, if and only if BCI has accepted the appointment under
         Paragraph 3.1, then until termination of BCI's appointment to sell
         Cellomics Products by the earlier in time of (a) expiration of this
         Agreement or (b) termination of BCI's right to distribute the Cellomics
         Products under either Paragraph 4.2 or 4.3 , or (c) subject to the
         limitations imposed in Paragraph 8.3, either party terminating this
         Agreement for material breach in accordance with Paragraph 4.4,
         Cellomics agrees that it shall not manufacture, sell, distribute or
         service any product made by Cellomics or any other party which competes
         with the BCI Biomek, Biomek FX or Core System existing on the date of
         such termination. In the event the parties agree to joint research in
         the field of Flow Cytometry pursuant to the terms of Paragraph 11.3,
         then for purposes of this Paragraph 8.1, Cellomics further agrees that
         it will not manufacture, sell, distribute or service any product made
         by Cellomics or any other party which competes with BCI Flow Cytometry
         systems for the same period described in the preceding sentence.

                                       29
<PAGE>   30

8.2      BCI NONCOMPETITION- Subject to the remainder of this Article 8.0, and
         if and only if BCI has accepted the appointment under Paragraph 3.1,
         then until termination of BCI's appointment to sell Cellomics Products
         by the earlier in time of (a) expiration of this Agreement or (b)
         termination of BCI's right to distribute the Cellomics Products under
         either Paragraph 4.2 or 4.3 , or (c) subject to the limitations imposed
         by Paragraph 8.3, either party terminating this Agreement for material
         breach in accordance with Paragraph 4.4, BCI agrees that it shall not
         manufacture, sell, distribute or service any product made by BCI or any
         other party which is substantially the same as the Cellomics Products
         existing on the date of such termination.

8.3      ARBITRATION OF DISPUTED CLAIMS OF BREACH- In the event either party (a
         "First Party") sends the other party a notice of material breach which
         the other party disputes or in the event the other party believes that
         it has cured any material breach alleged by the First Party and such
         First Party disputes such cure then the parties agree to (a) submit the
         disputed issues to arbitration in accordance with Paragraph 19.2 hereof
         solely for the purposes of determining whether a material breach has
         occurred and/or whether a material breach has been cured, and (b) to
         continue in all other respects to honor and comply with all of their
         obligations under this Agreement until the arbitrator makes his final
         determination. In the event that BCI is the party alleged to have
         materially breached this Agreement and the decision of the arbitrator
         confirms that BCI was in material breach for the reasons originally
         alleged by Cellomics in its notice to BCI then BCI agrees that it will
         not, for a period of nine (9) months beginning with the final decision
         of the arbitrator, manufacture, sell, distribute or service any product
         which is substantially the same as a Cellomics Products. Not
         withstanding the foregoing, all other issues arising under this
         paragraph 8.3 will be either litigated or arbitrated in accordance with
         the provisions of article 19 hereof.

8.4      EXCEPTION TO NONCOMPETITION- Notwithstanding anything in this Article
         8.0 or in this Agreement to the contrary, Cellomics expressly agrees
         that any product manufactured or used or sold or distributed by BCI
         which utilizes, incorporates or embodies the [*] or any system or
         instrument that utilizes or incorporates such a product or such
         technology, in whole or in part, does not compete and will not compete
         with and is not substantially the same as any of the Cellomics Products
         or the Cellomics Kits or the Cellomics Reagents or the Cell Chip
         Program or the Cell Chip System or the cell chips or the cell chip
         plates, complete cassettes, cells reagents or the methods for the Cell
         Chip System or any component used in any of the foregoing and BCI may
         manufacture, have manufactured, use, sell, distribute and import any
         such product, instrument, system or component at any time during the
         term of this Agreement and thereafter. [*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       30
<PAGE>   31

[*]

[*]

                             9.0 CELL CHIP PROGRAM

9.1      CELL CHIP PROGRAM - Cellomics is presently developing, in conjunction
         with Aclara Biosciences, Inc. ("Aclara"), the microfluidic, cell chip
         based system defined in attached Exhibit 9.1 (the "Cell Chip Program").
         Cellomics shall, promptly after the Full Definition Date (defined in
         Paragraph 9.2 below) provide BCI with a written summary of the
         aggregate external and internal spending by Cellomics, Aclara and any
         other third parties contributing to the Cell Chip Program and who will
         share in the revenues received by Cellomics under the TAP Program
         ("Aggregate Chip Program Expenditures"). Promptly after each calendar
         quarter following the Full Definition Date Cellomics will provide BCI
         with an update of the Aggregate Chip Program Expenditures.

9.2      AUTOMATION AND COMMERCIALIZATION OF THE CELL CHIP - Cellomics shall,
         commencing with promptly after the Effective Date and not less than
         once each calendar quarter thereafter provide the BCI Program Manager
         with a written report of the current state

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       31
<PAGE>   32

         of the design and development of the Cell Chip Program. BCI commits to
         begin on the Effective Date to participate in the specification and
         scoping of the automation required by the Cell Chip Program. Cellomics
         and BCI agree to use commercially reasonable efforts to define,
         evaluate and if appropriate, incorporate any changes to the Cell Chip
         Program suggested by the BCI Program Manager related to automation.
         Cellomics shall promptly after completion of the design and development
         stages of the Cell Chip Program demonstrate to BCI the technical
         feasibility of the Cell Chip Program. Cellomics and BCI shall, promptly
         after such demonstration discuss and mutually agree on answers to the
         following questions: (a) whether or not the parties should actively
         support and cooperate in the development of an automated version of the
         Cell Chip Program (the "Cell Chip System"), (b) whether or not the
         parties should actively support and cooperate in the commercialization
         of the resultant Cell Chip System, (c) if the answer to each of the
         foregoing questions is in the affirmative, in what markets such Cell
         Chip System should be sold, (d) what shall be the definition of types
         of cell chip consumables channels to market and the responsibilities of
         each party, and (e) what the terms and conditions shall be of the Cell
         Chip System distribution arrangement. The point in time at which the
         preceding questions shall have been answered is expected by the parties
         to occur not more than [*] and shall be known as the "Full Definition
         Date." If the parties mutually agree to actively pursue development of
         the Cell Chip System and the sale of such Cell Chip System in markets
         which are of commercial interest to BCI then BCI shall be the developer
         of the automation for such Cell Chip System and, subject to Paragraph
         9.4, shall be the sole and exclusive world-wide distributor of the Cell
         Chip System in all markets.

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       32
<PAGE>   33

         9.2.1    BCI shall, beginning with the Full Definition Date, use
                  reasonable commercial efforts to automate and form a unitary
                  system comprising, the cell chips, the instrument components
                  and processes that comprise the Cell Chip Program. Cellomics
                  shall, promptly after the Full Definition Date and as soon as
                  it becomes available loan BCI a prototype cell chip reader and
                  each of the other components of the Cell Chip Program to be
                  used in or which will form part of the Cell Chip System.
                  Cellomics agrees that it will use reasonable commercial
                  efforts to support BCI's development of such automation and,
                  if milestones acceptable to both parties are being met by BCI,
                  Cellomics will not, independently develop automation
                  instruments, tools, equipment, processes or software for the
                  Cell Chip Program nor will it directly or indirectly, engage,
                  contract with, authorize, work with, cooperate with or
                  encourage any third party to provide automation instruments,
                  tools, equipment, processes or software for the Cell Chip
                  Program.

         9.2.2    If Cellomics desires to automate the Cell Chip Program but BCI
                  elects not to participate and be the developer of the
                  automation for the Cell Chip System then Cellomics may pursue
                  such development with any third party and BCI shall have no
                  further rights under this Agreement to either the Cell Chip
                  Program or any automated version thereof.

         9.2.3    If BCI desires to automate the Cell Chip Program but Cellomics
                  does not desire to pursue such automation or if the parties
                  cannot agree on the market in which to commercialize a Cell
                  Chip System, then [*] (b) BCI may pursue an automated cell
                  chip either on its own or with a third party.

9.3      REPORTS - Each calendar quarter the BCI Program Manager shall provide
         the Cellomics Program Manager with a report of BCI's Cell Chip System
         development

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       33
<PAGE>   34

         activities in the preceding quarter and its plans for the next two
         calendar quarters. Such report shall also include a summary of the
         external and internal spending by BCI on the Cell Chip System to the
         date of such report.

9.4      DISTRIBUTION OF CELL CHIP SYSTEM - If BCI is the sole and exclusive
         distributor of Cellomics Instruments and BCI is the developer of the
         automation for the Cell Chip System, BCI shall be the manufacturer of
         the automation system for the Cell Chip System and the sole and
         exclusive world-wide distributor of the Cell Chip Reader, automation
         and control software and Cell Chip version of the Cellomics Store and
         Screen Software. For the avoidance of doubt, the Cell Chip System to be
         distributed by BCI will include any licenses or rights required
         thereunder from such parties for BCI to make, have made, use and sell
         the Cell Chip System and for BCI's direct and indirect customers to use
         such System, and the automation, instruments, equipment, tools,
         software, and the Cell Chip version of the Cellomics Store and Screen
         processes and methods developed by BCI for the foregoing for and during
         the balance of the term of this Agreement.

         9.4.1    CELL CHIP SYSTEM DISTRIBUTION IN CLINICAL RESEARCH AND IN
                  VITRO DIAGNOSTICS - If BCI is the sole and exclusive
                  distributor of Cellomics Instruments and if BCI is the
                  developer of the automation for the Cell Chip System and if
                  BCI is a distributor of the Cell Chip Reader, automation and
                  control software and Cell Chip version of the Cellomics Store
                  and Screen Software, then in the fields of clinical research
                  and In Vitro Diagnostics, BCI shall have a co-exclusive
                  worldwide right (with Cellomics) to distribute (a) cell chips,
                  cell chip plates, complete cassettes, cell reagents or any
                  other consumable used on or with the Cell Chip System and, (b)
                  any methods for the Cell Chip System, for and during the
                  balance of the term of this Agreement.

         9.4.2    Cellomics and BCI shall, contemporaneously with the Full
                  Definition Date or as soon thereafter as the parties agree is
                  practicable, negotiate in good faith to establish the transfer
                  prices and other terms and conditions for the purchase by BCI
                  of those portions of the Cell Chip Systems which Cellomics

                                       34
<PAGE>   35

                  either manufactures or Cellomics has, through its agreements
                  with Aclara and any other third party, the right to sell. BCI
                  and Cellomics shall sign agreements embodying such prices,
                  terms and conditions at the conclusion of such negotiations.
                  Cellomics further agrees to use its reasonable efforts to
                  assist BCI in establishing relationships with Aclara and any
                  other third party for those portions of the Cell Chip System
                  which Cellomics does not manufacture or have the right to sell
                  and in negotiating agreements and licenses with such parties
                  for such portions.

         9.4.3    Cellomics agrees to and shall grant BCI a [*] licenses under
                  any patents, trade secrets and copyrights owned or Controlled
                  By Cellomics needed to sell the Cell Chip Reader, automation,
                  control software, and Cell Chip System version of the
                  Cellomics Store and Screen Software, including the right and
                  license to grant purchasers of the Cell Chip System from BCI
                  [*] under any intellectual property owned or Controlled By
                  Cellomics and required by users thereof. Cellomics agrees to
                  and shall use its reasonable efforts to assist BCI in
                  obtaining similar rights from [*] and any other party having
                  intellectual property required by said users. The foregoing
                  rights and licenses shall have a term independent of the term
                  of this Agreement. The term "Controlled By" shall mean the
                  right in Cellomics to grant licenses, rights or immunities
                  from suit under the controlled material without regard to
                  whether Cellomics must as a result of such grant report the
                  use of the controlled material by BCI or its customers to a
                  third party or pay consideration to a third party for such use
                  of the controlled material by BCI or its customers.

         9.4.4    Subject to Article 8.0 and Paragraph 9.4.1, Cellomics itself
                  or through agents or other parties shall be the sole developer
                  and distributor of cell chip plates, complete cassettes, cells
                  reagents and methods for the Cell Chip System.

                                10.0 TAP PROGRAM

10.1     TAP PROGRAM - Cellomics is presently developing a marketing plan which
         will enable a limited group of [*] pharmaceutical, independent research
         and other companies to have access to, use of and participation in the
         Cell Chip Program as beta sites for such Program, i.e., prior to
         commercial introduction; the pharmaceutical, independent research and
         other companies will pay Cellomics a licensing fee for such access and
         use and the right to suggest alternatives, improvements and
         modification to the Cell Chip Program (the "TAP Program").

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       35
<PAGE>   36

10.2     [*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       36
<PAGE>   37

                      11.0 CELL BIOLOGY TECHNOLOGY EXCHANGE

11.1     LICENSES TO CELLOMICS - BCI agrees to and shall grant to Cellomics
         licenses under BCI patents and applications for patent nominated by BCI
         in an Exhibit to be added to this Agreement within sixty (60) days of
         the Effective Date, which patents and applications shall be limited to
         that which are owned or controlled by BCI, (i.e., BCI has the right to
         grant licenses and sublicenses thereunder) and are in existence as of
         the Effective Date. The licenses will be at royalty rates, license fees
         and under such other terms and conditions as may be hereafter
         negotiated and agreed by the parties.

11.2     LICENSES TO BCI - Cellomics agrees to and shall grant to BCI licenses
         under Cellomics patents and applications for patent nominated by
         Cellomics in an Exhibit to be added to this Agreement within sixty (60)
         days of the Effective Date , which patents and applications shall be
         limited to that which are owned or controlled by Cellomics (i.e., under
         which Cellomics has the right to grant licenses or sublicenses) and are
         in existence as of the Effective Date.. The licenses will be at royalty
         rates, license fees and under such other terms and conditions as may be
         hereafter negotiated and agreed by the parties.

11.3     JOINT RESEARCH - The parties shall, within six (6) months after the
         Effective Date, agree on a joint program to define and test the
         applicability of each other's intellectual property in the fields of
         high content drug screening and flow cytometry. Each party shall
         appoint a Program Manager for this effort. The Program managers shall
         be responsible for defining the scope of the joint program, the
         parties' activities under such program and the specific resources of
         each party that will be engaged.

                           12.0 CENTERS OF EXCELLENCE

12.1     ESTABLISHMENT - The parties have agreed to work together to establish
         and contribute to "Cell Technology Centers of Excellence" at
         universities and other not-for-profit research institutions who will
         investigate the cell and cell-based analysis. The parties have further
         agreed to jointly select up to [*] such Centers on which to concentrate
         their joint attention [*] Promptly after the Effective Date the parties
         shall agree on (a) the identity of up to [*] (b) [*] and (c) on the
         charter and research focus for each such Center. Cellomics shall, with
         the advice, guidance and concurrence of BCI, negotiate with each such
         Center on the charter and activities of such Center. Cellomics shall
         use its best efforts to obtain rights for the parties, to be shared
         equally by the parties, to the inventions and discoveries of each such
         Center. Each party may contribute separately to each such Center and in
         its own name.

12.2     INITIAL CONTRIBUTION - Promptly after the selection of the Centers,
         each party shall contribute a combined total of One Million Dollars
         ($1,000,000) to the up to [*].

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       37
<PAGE>   38

         The percentage of each party's total contribution of such One Million
         Dollars ($1,000,000) to be given to a particular Center shall be
         jointly agreed by the parties. [*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       38
<PAGE>   39

         12.2.1   Cellomics may, at its option, make its contributions to one or
                  more of the Centers in the form of consulting services
                  performed by Cellomics employees or the loan of Cellomics
                  employees to one or more of the Centers to be valued at the
                  fully absorbed cost to Cellomics of the services or employees
                  involved.

         12.2.2   BCI will also contribute a Biomek pipettor-diluter instrument
                  to each of the Centers. At BCI's option, the Biomek instrument
                  may be new or used.

12.3     SUBSEQUENT CONTRIBUTION - BCI shall, between the first and second
         anniversary of the Effective Date, contribute, at BCI's option, a
         Biomek FX pipettor-diluter instrument or a Core System to each of the
         Centers of Excellence. At BCI's option, the contributed instrument or
         Core System may be new or used. Cellomics shall, promptly after the
         Instrument Appointment Date contribute an ArrayScan Kinetics reader to
         each of the Centers of Excellence. At Cellomics' option, the ArrayScan
         Kinetic reader may be new or used.

                               13.0 KNOWLEDGE BASE

13.1     KNOWLEDGE BASE - Cellomics is gathering a body of knowledge, data and
         information relating to, among other things cells, cellular processes
         and cell interactions with various chemical compounds and mixtures (the
         "Knowledge Base"). [*] Cellomics further acknowledges it intends to
         license access to the Knowledge Base or portions thereof to third
         parties for consideration.

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       39
<PAGE>   40

13.2     ACCESS TO THE KNOWLEDGE BASE - Subject to the remainder of this
         Paragraph and Paragraph 13.2.1, Cellomics agrees to and shall, upon
         receipt of a written request from BCI, grant BCI a non-exclusive
         license to use the Knowledge Base in the field of in vitro diagnostics
         [*].  Such license shall have a term independent of the term of this
         Agreement.  [*]

         13.2.1   [*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       40
<PAGE>   41

                        ARTICLE 14.0 EXERCISE OF RIGHTS

The failure by one of the parties under this Agreement to assert its rights for
any breach of this Agreement shall not be deemed a waiver of such rights. The
rights and remedies specified herein, except those specified as exclusive, are
in addition to and shall not restrict any right or remedy either party may have
at law or in equity for any breach of this Agreement. An actual waiver of rights
in a particular instance of a breach shall not be deemed to be a waiver of such
rights upon a subsequent occurrence of the same or a similar instance of breach.

                            ARTICLE 15.0 ASSIGNMENT

Neither party may, without the prior written permission of the other party,
assign this Agreement or any of its rights, duties or obligations under this
Agreement to any third party.

                              16.0 CONFIDENTIALITY

16.1     CONFIDENTIALITY - Each party shall maintain in confidence any
         information received from the other party during the term of this
         Agreement, and shall neither publish, disseminate nor disclose such
         information to any third party nor use such information except for the
         furtherance of the purposes of this Agreement without the prior express
         written permission of such other party. Subject to the next sentence,
         the foregoing obligations of confidentiality and non-use shall continue
         for three (3) years after the expiration of this Agreement. The
         obligation of the first sentence shall not apply to any information
         which is:

         (a)      now or hereafter comes into the public domain, or (b) which is
                  already in the possession of the receiving party other than as
                  a result of having received it from the disclosing party and
                  as shown by written records, or (c) is brought to the
                  receiving party by a third party who does not require that it
                  be maintained in confidence, (d) is independently developed by
                  the receiving party without use of or access to the
                  information of the disclosing party, or (e) is required to be
                  disclosed pursuant to a subpoena,

                                       41
<PAGE>   42

                  civil investigative demand or similar legal process, provided
                  that (I) the disclosing party is promptly notified by the
                  receiving party before any disclosure pursuant to such legal
                  process, (II) the receiving party gives the disclosing party
                  sufficient time and opportunity to object to or contest the
                  legal process or to limit its scope or to obtain a protective
                  order or confidential treatment for the material to be
                  disclosed, and (III) the receiving party discloses only so
                  much of the information as its counsel advises it in writing
                  is required in order to comply with such legal process. Upon
                  termination of this Agreement, each party shall, at the other
                  party's request, destroy or return to such other party all
                  copies of such information; provided that counsel for each
                  receiving party may retain one (1) copy of such information
                  solely for the purpose of monitoring such party's obligation
                  of confidentiality under this Agreement.

16.2     OBLIGATIONS OF RECEIVING PARTY - Each party agrees that it shall, at
         its sole cost, take all reasonable measures (including but not limited
         to court proceedings) to restrain its officers, employees, directors
         and agents from unauthorized use or disclosure of the disclosing
         party's information.

16.3     INJUNCTION - Each party, acknowledges and agrees that money damages
         would not be a sufficient remedy for its breach of this Article 16.0
         and that the disclosing party shall be entitled to equitable relief
         including injunction and specific performance as a remedy for any such
         breach. Such remedies shall not be deemed the exclusive remedy for the
         receiving party's breach but shall be in addition to all other remedies
         available to the disclosing party. Article 19.0 (Law Governing and
         Construction) shall not be a limitation on the remedies available to
         the disclosing party for a breach by the receiving party of this
         Article 16.0.

                                       42
<PAGE>   43

                              ARTICLE 17.0 NOTICES

All notice and payments required or permitted to be given hereunder shall be in
writing and shall be deemed delivered (a) on the date of delivery if delivered
in person (b) on the date of transmission if sent by facsimile with receipt in
good order requested and received, (c) on the second business day after delivery
to a recognized overnight delivery service (FedEx, UPS, DHL, Airborne), or on
the third business day following delivery to the United States Postal Service,
in each of the foregoing cases addressed to the respective parties as follows:

         If to Cellomics:           Cellomics, Inc.
                                    635 William Pitt Way
                                    Pittsburgh, Pennsylvania 15238
                                    Attention: President

         With a copy to:            Metz Schermer & Lewis
                                    The Westinghouse Building-18th floor
                                    11 Stanwix Street
                                    Pittsburgh, Pennsylvania 15222
                                    Attention: LeRoy L. Metz II, Esq.

         If to BCI:                 Beckman Coulter, Inc.
                                    4300 North Harbor Boulevard
                                    Fullerton, California 92834-3100
                                    Attention: President

         With a copy to:            Beckman Coulter, Inc.
                                    4300 North Harbor Boulevard
                                    Fullerton, California 92834-3100
                                    Attention: General Counsel

or such other addresses as may be designated by the respective parties in
writing.

                                       43
<PAGE>   44

                          ARTICLE 18.0 SECTION HEADINGS

Section headings are for convenience only and shall not be construed to limit or
extend the meaning of any portion of this Agreement.

                      19.0 LAW GOVERNING AND CONSTRUCTIONS

19.1     DISPUTE RESOLUTIONS - The parties agree that with respect to any
         dispute or claim which does not exceed [*] the parties shall follow the
         procedures described in Paragraph 19.2. All claims or disputes in
         excess of [*] may be arbitrated pursuant to Paragraph 19.2 upon the
         mutual agreement of the parties.

19.2     MEDIATION AND ARBITRATION - Except for any actual or threatened breach
         of Article 16.0 to which the parties may refer to the State or Federal
         Courts of California or Pennsylvania for relief, any controversy or
         conflict involving this Agreement, its interpretation or the respective
         rights or obligations of the parties shall first be submitted to their
         respective General Managers for amicable resolution. If the parties
         cannot agree, the controversy shall be submitted to mediation to be
         held in a mutually agreeable neutral place. The parties shall mediate
         in good faith and use their best efforts to resolve the controversy or
         conflict by mediation. If the parties still cannot settle the
         controversy or reach an accommodation, the matter shall be submitted to
         binding arbitration to be conducted in a city other than Pittsburgh or
         Fullerton in accordance with the following rules:

         (a)      If a party intends to begin an arbitration to resolve a
                  dispute, such party shall provide written notice to the other
                  party informing the other party of such intention and the
                  issues to be resolved, the date of which notice shall be
                  referred to as the "Notice Date". Within ten (10) business
                  days after the receipt of such notice, the other party may, by
                  written notice to the party initiating arbitration, add
                  additional issues to be resolved. Within twenty (20) business
                  days following the Notice Date a list of not less than ten
                  (10) neutrals shall be provided to the parties by
                  then-President

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       44
<PAGE>   45

                  of the Center for Public Resources ("CPR"), 680 Fifth Ave.,
                  New York, New York 10019, or its successor organization. The
                  list shall include the experience and qualifications of each
                  person identified thereon. The neutral shall be an individual
                  who shall preside in resolution of any disputes between the
                  parties. Each of the neutrals identified on the list shall not
                  be an employee, consultant, independent contractor, director
                  or shareholder of either a party or of an Affiliate of either
                  party, and shall be a lawyer licensed to practice in the state
                  which is the site of the arbitration. The parties shall have
                  ten (10) business days from the date the list is provided to
                  agree on a neutral. If the parties cannot agree, each party
                  shall have twenty (20) business days from the date the list is
                  provided to the parties by CPR to object in good faith to four
                  (4) of the persons on the list. The then-President of the CPR
                  shall, as soon as possible thereafter, select the neutral from
                  the persons remaining on the list. This selection shall be
                  final.

         (b)      No later than one hundred twenty (120) business days after
                  selection the neutral shall hold a hearing to resolve each of
                  the issues identified by the parties.

         (c)      Within thirty (30) days of the Notice Date, representatives of
                  the parties shall meet in an attempt in good faith to agree on
                  procedures for the expeditious exchange of information that
                  may be needed to prepare for the arbitration. If the parties
                  cannot agree on the exchange of documents or other
                  information, the neutral may require exchange of documents,
                  upon showing by the requesting party that it will be
                  prejudiced and not otherwise able to prepare for or put on its
                  case without access to and use of the requested documents or
                  information. Any documents required to be produced shall be
                  produced no less than sixty (60) days prior to the hearing.

         (d)      At least forty-five (45) business days prior to the hearing,
                  each party shall submit to the other party and the neutral a
                  list of all documents on which such party intends to rely in
                  any oral or written presentation

                                       45
<PAGE>   46

                  to the neutral and a list of all witnesses, including expert
                  witnesses, if any, such party intends to call at such hearing.
                  Such lists will be accompanied by: (i) one true and correct
                  copy of each of the documents on the above-referenced list;
                  and (ii) a summary of the anticipated testimony of each of
                  such party's witnesses. Except as expressly set forth herein,
                  the neutral shall not require nor shall there be any discovery
                  by any means, including depositions, interrogatories or
                  production of documents.

         (e)      After the exchange of the documents and information required
                  by Paragraph (d) above, each party may, at its option, take
                  depositions. In any event neither party shall take more than
                  sixteen (16) total hours of depositions, as calculated by the
                  court reporter, of more than four (4) persons; plus, a
                  deposition of each expert witness listed by the other party
                  which expert deposition shall not exceed four (4) hours. Such
                  depositions shall be taken between the receipt of the lists
                  called for by Paragraph (d) above and fifteen (15) days before
                  the hearing. Each party shall cooperate in making its
                  witnesses available at a convenient place and time for such
                  deposition. No party shall instruct a witness at a deposition
                  not to answer a question except on grounds of attorney client
                  privilege or work product doctrine.

         (f)      A party may request an extension and the neutral shall grant
                  an extension of the time for a hearing if the neutral finds
                  that the other party failed to comply with or delayed in
                  complying with discovery permitted under this Agreement. The
                  extension shall be commensurate with the delay found by the
                  neutral but in no event greater than thirty (30) days.

         (g)      Each party may file with the neutral a prehearing memorandum,
                  not exceeding fifty (50) pages, setting forth applicable law,
                  facts, arguments, and other relevant information.

         (h)      At least ten (10) business days prior to the hearing, each
                  party must submit to the neutral and serve on the other party
                  a proposed ruling on each issue

                                       46
<PAGE>   47

                  to be resolved. Such writing shall be limited to a statement
                  of the proposed rulings, shall contain no argument on or
                  analysis of the facts or issues, and shall be limited to not
                  more than twenty (20) pages.

         (i)      Each party shall be entitled to no more than ten (10) hours of
                  hearing to present testimony or documentary evidence and
                  argument. The testimony presented by both parties shall be
                  presented during the same calendar day or on consecutive days.
                  Such time limitation shall include any direct, cross or
                  rebuttal testimony, but such time limitation shall only be
                  charged against the party conducting such direct, cross or
                  rebuttal testimony. It shall be the responsibility of the
                  neutral to determine whether the parties have had the ten (10)
                  hours to which they are entitled.

         (j)      Each party may file a post-hearing memorandum not exceeding
                  three (3) pages.

         (k)      Each party shall have the right to be represented by counsel.
                  The neutral shall have sole discretion with regard to the
                  admissibility of any evidence; however, no prior drafts of any
                  of the agreements between the parties shall be shown to the
                  neutral or be admissible in evidence.

         (l)      The neutral shall rule on each disputed issue within ten (10)
                  days following the completion of the testimony of both
                  parties. Such ruling shall adopt the proposed ruling of one of
                  the parties on each disputed issue. The neutral shall have
                  authority to award complete legal and equitable relief to the
                  maximum extent a court of law and equity could award in
                  accordance with applicable law.

         (m)      All applicable common law or statutory privileges such as
                  attorney-client or attorney work product shall be applicable
                  to the arbitration proceedings.

                                       47
<PAGE>   48

         (n)      Either party may, at its option, use prepared testimony as
                  long as the witness whose testimony is so presented is
                  available to the other party for cross-examination.

         (o)      All cost incurred for the neutral, the hearing room and the
                  court reporter shall be shared equally between the parties.
                  The parties shall otherwise bear their own expenses.

         (p)      The neutral shall be given a copy of these provisions at the
                  time of selection.

         (q)      All arbitration proceedings and the outcome of such
                  proceedings shall be treated as confidential by the parties
                  and the neutral.

         (r)      The parties agree to be bound by the results of the
                  arbitration, and judgment upon the award so rendered may be
                  rendered and enforced in any court of competent jurisdiction.

19.3     MUTUALITY - This Agreement has been drafted after considerable
         negotiation and compromise on the basis of mutual understanding and
         neither party shall be prejudiced as being the drafter thereof.

                           ARTICLE 20.0 MISCELLANEOUS

20.1     Nothing in this Agreement shall be construed as conferring any right to
         use in advertising, publicity, or other promotional activities any
         name, trade name, trademark, or other designation of either party
         hereto without the express written approval of the other party.

20.2     The parties will retain the terms of this Agreement in strict
         confidence, except as may be required by regulatory agencies or courts,
         and will then use all reasonable precautions to maintain the terms of
         this Agreement confidential.

                                       48
<PAGE>   49

20.3     In the event that any provision of this Agreement is held invalid or
         unenforceable for any reason, such unenforceability shall not affect
         the enforceability of the remaining provisions of this Agreement, and
         all provisions of this Agreement shall be construed so as to preserve
         the enforceability hereof.

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

20.5     Neither party shall issue, author or authorize a press release or make
         any public announcement concerning this Agreement or the relationship
         between the parties without the express written permission of the other
         party.

               ARTICLE 21.0 ENTIRE AGREEMENT, MODIFICATIONS, ETC.

This instrument contains the entire and only agreement between the parties
relative to the subject matter hereof and supersedes all previous negotiations,
representations, undertakings and agreements both written and oral heretofore
made between the parties as to the subject matter. Any representation, promise
or condition in connection herewith not specifically incorporated herein shall
not be binding upon either party.

No modification, renewal, extension, waiver, cancellation or termination of this
Agreement or of any of the provisions herein contained shall be valid until and
unless made in writing and signed on behalf of the respective parties by duly
authorized officers thereof.

              IN WITNESS WHEREOF, the parties have respectively caused this
Agreement to be executed on the dates hereinafter indicated.

Beckman Coulter, Inc.                   Cellomics, Inc.

By: [ILLEGIBLE]                         By: /s/ D. LANSING TAYLOR
   ---------------------------------       ---------------------------------

Title:                                  Title: President and CEO
      ------------------------------          ------------------------------

Date:                                   Date: June 14, 2000
     -------------------------------         -------------------------------

                                       49
<PAGE>   50

        EXHIBIT 1.4 CELLOMICS INSTRUMENTS, ATTENDANT INSTRUMENT SOFTWARE

               AND INFORMATICS SOFTWARE FOR CELLOMICS INSTRUMENTS

ARRAYSCAN II-S - SCREENING SYSTEM

Consisting of:
     o    Advanced Microplate Scanning System
     o    High Resolution 1317 X 1035 Pixel Cooled CCD Camera
     o    10X Long Distance Objective Lens Compatible with Plastic Bottom
          Microplates
     o    Four Channel Fluorescence Filters (470 nm, 520 nm, 600 nm, 700 nm)
     o    Six Channel Measurement (Combination of Spectral and/or Spatial
          Channels)
     o    Long-life Mercury Arc Illumination System
     o    Laser Scanning Barcode Reader
     o    Twister(R) Universal Microplate Handler (Robot)

Attendant Software for Scanning and Performing Quantitative Cell Analysis in
Microplates:
     o    Cellomics Data View Software - imaging and computation software
o    General Screening Application (GSA).
o    General Purpose Assay Development Tool (GPADT)
o    Kinetic Measurement Tool

Attendant Software Applications
o    Multiparameter Apoptosis Screening Application (including Mitochondrial
     Mass, Mitochondrial Potential, Actin Cytoskeletal Organization and Nuclear
     Morphology) and Single-Instrument Screening License

o    Nuclear Translocation Screening Application (e.g. Transcription Factor and
     Kinase Activations) and Single-Instrument Screening License

o    Receptor Internalization and Trafficking Screening Application and
     Single-Instrument Screening License

o    Cell Viability Screening Application and Single-Instrument Screening
     License

o    Mitotic Index Screening Application and Single-Instrument Screening License

Computer System:
     o    Intel Based PC with: Pentium Series Processor, 192 MB RAM, 18 GB Hard
          Drive, Modem, and Microsoft(R)Windows NT Operating System
     o    Microsoft(R) Office Professional
     o    Remote Access Software
     o    Color Ink Jet Printer
     o    17" High Resolution Color Monitor

Installation and Support:
o    On-Site System Installation and Training (1 Day)
o    Six Months of Free Software Upgrades
o    Six Months of Central Technical Support (Software Support Via Telephone,
     Fax, Internet; Hardware Support Via Remote Modem Diagnostics)

ARRAYSCAN II-C - SCREENING SYSTEM

Consisting of:
     o    Advanced Microplate Scanning System
     o    High Resolution 1317 X 1035 Pixel Cooled CCD Camera
     o    10X Long Distance Objective Lens Compatible with Plastic Bottom
          Microplates
     o    Four Channel Fluorescence Filters (470 nm, 520 nm, 600 nm, 700 nm)
o    Six Channel Measurement (Combination of Spectral and/or Spatial Channels)
     o    Long-life Mercury Arc Illumination System
     o    Laser Scanning Barcode Reader
     o    Twister(R) Universal Microplate Handler (Robot)

                                       50
<PAGE>   51

Attendant Software for Scanning and Performing Quantitative Cell Analysis in
Microplates:
     o    Cellomics Data View Software - imaging and computation software
     o    General Screening Application (GSA).
     o    General Purpose Assay Development Tool (GPADT)
     o    Kinetic Measurement Tool

                                       51
<PAGE>   52

                             EXHIBIT 1.4 (CONTINUED)

Computer System:
     o    Intel Based PC with: Pentium Series Processor, 192 MB RAM, 18 GB Hard
          Drive, Modem, and Microsoft(R)Windows NT Operating System
     o    Microsoft(R) Office Professional
     o    Remote Access Software
     o    Color Ink Jet Printer
     o    17" High Resolution Color Monitor

Installation and Support:
o    On-Site System Installation and Training (1 Day)
o    Six Months of Free Software Upgrades
o    Six Months of Central Technical Support (Software Support Via Telephone,
     Fax, Internet; Hardware Support Via Remote Modem Diagnostics)

ARRAYSCAN(R) KINETICS READER

The ArrayScan(R) Kinetics Reader process requires an automated, high precision
         imaging plate reader optimized for imaging fluorescence from cells
         growing on the bottom of a microplate well.

Uses an 820nm laser diode for "through the lens" focusing. Senses the interface
         between the plate bottom and the water in the well.; Requires an 800nm
         short pass dichroic mirror between the objective and the dichroic
         wheel.; Compatible with standard 96, 384, and higher density plates.;
         Compatible with plastic bottom and glass bottom plates; Fast response
         time [less than] 1s to adjust focus within range of sensor, Longer
         times to move to within range: Control possibilities by direct feedback
         control of focus drive, or ; Control/readout of position through
         computer interface.; Autofocus by image analysis and focus position
         control by the ArrayScan Kinetics Reader computer will be possible.;
         One camera port ; Motorized turret with support for 6 objectives.; User
         standard exchangeable microscope objectives.; Available magnifications
         of 63x, 40x, 20x, 10x and 5x; Optional magnifications of 2.5x, 1.25x.;
         Optics are available with sufficient working distance and correction
         for plastic bottom plates.; Optional optics optimized for thin and/or
         glass bottom plates are available.; Air immersion for ease of scanning
         plates.; Maximum available NA for sensitivity

Illumination Source(s): Mercury arc lamp, optimized for 20x air immersion
objective; Optional Xenon Arc Lamp; Long life bulbs, about 1000 hours; Simple
lamp replacement. Pre-aligned bulb with no adjustment required. ; Diode to read
out relative lamp intensity.; Lamp switched on by computer control.

ArrayScan Kinetics Reader computer directly controls all the reader component
functions, including image readout.; Internal parallel, multitasking operation
for speed and efficiency. Filters and X-Y-Z positioning move concurrently.;
Compatible with standard 96, 384, and higher density plates.; Motorized X-Y
stage; Range: accommodates whole plate area (120x80 mm)); Resolution: [less
than] 2um; Speed: [more than] 10 mm/sec ([less than] or ~ 1 sec to move well to
well); Insert for microplates with positive positioning mechanism.; Motorized
focus drive; Resolution: [less than] 1um; Speed: [more than] or ~ 1mm/sec.;
Motorized dichroic reflector/emission filter wheel; User replaceable filter
cubes on wheel, hold excitation, emission filters plus dichroic; Speed: ~ 1 sec.
between adjacent positions; Positions: 4; Motorized illumination filter wheel;
Filter Positions 8; Speed: ~ 250ms. between adjacent positions.;
Electro-mechanical illumination shutter; Speed: required: ~ 10ms to open/close;
Motorized emission filter wheel; Filter Positions 8; Speed: ~250ms between
adjacent positions; Optional analyzers for emission filter wheel. Indexed for
ease of orthogonal alignment.

Detector (CCD camera): The system uses a standard mechanical interface, a
C-mount, and has adequate space to accommodate a reasonable number of camera
housing designs. This will allow some flexibility in camera choice, and
therefore sensor selection, from among off-the-shelf systems. Camera detector is
projected to be Quantix with KAF 1400 chip.

Environmental Chamber: For live cell assays, maintains a tissue culture
incubator environment around the plate.

                                       52
<PAGE>   53

This will be accomplished by using a
commercial incubator system to circulate air through the ArrayScan Kinetics
Reader plate chamber. Supplementary heating will be provided in the chamber to
compensate for heat loss during circulation. Completely self contained within
unit; Same controls for stacker and plate on reader; User selectable
temperature, 25 - 40(Degree)C (+/- 0.5(Degree)C regulation); Required: manual
settings, with computer control or readout; User selectable for 0-5% CO(2),
regulated via sensor.

Optional on-board fluidics for multi-well delivery to the plate on the reader
will allow groups of wells to be treated, and then read successively for the
required duration including: Fluid delivery will allow for simultaneous delivery
from 1 to 8 wells; Volume range of 1-200uL; Pipetting from source plate, such as
a compound library plate; Include space for 1 source plate per plate read; Uses
a Cavro pipettor system; Tip wash station; Bulk reagent station.

                                       53
<PAGE>   54

                             EXHIBIT 1.4 (CONTINUED)

CELLOMICS(R) STORE - DATA MANAGEMENT SOFTWARE

         Base Configuration: Includes connection to one ArrayScan(TM)System and
         two Client Access Licenses using the Cellomics Data Viewer

FEATURES

o    Automated data transfer from all of the managed instruments to the
     Cellomics(TM) Store server

o    A centralized database for all of a customer's screening results

o    On-line access to over 100 gigabytes of detailed experimental results (e.g.
     individual cellular measurements and image files)

o    Data visualization, analysis and reporting from two remote Windows desktop
     computers (including the ArrayScan(TM) Kinetics Workstation).

o    Automated backup of all data

o    Automated space management with user-definable settings for on-line versus
     off-line data archive

BASE SOFTWARE CONFIGURATION - CELLOMICS(TM) STORE SERVER

Cellomics(TM) Store software

Windows/NT Server Version 4.0 running Service Pack 4 or higher

Microsoft SQL Server Version 7.0 (5 user licenses)

Veritas Backup Exec for Window NT Server Version 7.3

BASE SOFTWARE CONFIGURATION - CELLOMICS(TM) DATA VIEWER (CLIENT APPLICATION)

Cellomics(TM) Data Viewer softwaRE

WINDOWS/NT WORKSTATION VERSION 4.0 RUNNING SERVICE PACK 4 OR HIGHER

CELLOMICS(R) SCREEN

BIOINFORMATICS FOR MICROPLATE OR ARRAY FORMAT CELL-BASED AND HOMOGENEOUS ASSAY
SCREENING SYSTEMS

OVERVIEW                   Cellomics Screen(TM) is an environment for bioassay
                           scientists and chemists to create and manage
                           homogeneous and cell-based assay screening
                           activities. Built specifically for the data
                           management needs of High Content Screening (HCS) and
                           Ultra High Throughput (UHTS) studies, the
                           Cellomics(TM) Screen platform combines technologies
                           in knowledge discovery, data mining, pattern
                           recognition, and visualization with public and
                           private substance databases to delivers a robust and
                           scalable enterprise solution for drug discovery.

CORE FUNCTIONALITY         Cellomics Screen(TM)application functions:

o    Screen Management System for homogeneous and cellular assays and screens.
o    Provide researchers an active assay notebook in which the user can enter
     structured and unstructured objectives, descriptions, protocols, results,
     comments, etc.
o    Management of Assays, Screens, Targets, Compounds, Agents, Reagents, Cells,
     and other object pertaining to cell-based screening.
o    Perform multi-assay and multi-screen comparisons to generate models of
     cellular mechanisms and signal pathways.
o    Integrated visualization capabilities provide direct-manipulation,
     drill-down enabled presentation of screen analytics.
o    Collaborates with private and public Molecular Biology Databases (MBDs) to
     retrieve gene, protein and chemical information.

                                       54
<PAGE>   55

o    Collaboration with the Cellomics Database(TM) (our subscription knowledge
     discovery database) allows researchers to perform virtual screens and
     cross-system comparisons.

ARCHITECTURE
o    Open platform allows third party and user-developed analytics to be
     integrated.
o    Implemented as distributed object services and resource managers on a CORBA
     or DCOM backbone.
o    Multi-platform, multi-language API.
Thin-client Web user interface allows for ease of access by geographically
distributed users.

o

                                       55
<PAGE>   56

                     EXHIBIT 1.5 CELLOMICS KITS AND REAGENTS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                       HitKit*                            ARRAYSCAN(R) II APPLICATION         US LIST PRICE       CATALOG NO.
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                    <C>                                    <C>                 <C>
BASIC SIGNALING
----------------------------------------------------------------------------------------------------------------------------------
Nuclear Factor (kappa)B Activation**                   Cytoplasm to Nucleus Translocation         $450            K01-0001-1
----------------------------------------------------------------------------------------------------------------------------------
STAT1 Activation**                                     Cytoplasm to Nucleus Translocation         $450            K01-0002-1
----------------------------------------------------------------------------------------------------------------------------------
STAT2 Activation**                                     Cytoplasm to Nucleus Translocation         $450            K01-0005-1
----------------------------------------------------------------------------------------------------------------------------------
STAT3 Activation**                                     Cytoplasm to Nucleus Translocation         $450            K01-0008-1
----------------------------------------------------------------------------------------------------------------------------------
STAT5 Activation**                                     Cytoplasm to Nucleus Translocation         $450            K01-0009-1
----------------------------------------------------------------------------------------------------------------------------------
c-jun Activation**                                     Cytoplasm to Nucleus Translocation         $450            K01-0003-1
----------------------------------------------------------------------------------------------------------------------------------
ERK (MAPK) Activation**                                Cytoplasm to Nucleus Translocation         $650            K07-0007-1
----------------------------------------------------------------------------------------------------------------------------------
p38 MAPK (HOG1) Activation**                           Cytoplasm to Nucleus Translocation         $650            K01-0004-1
----------------------------------------------------------------------------------------------------------------------------------
JNK/SAPK Activation**                                  Cytoplasm to Nucleus Translocation         $650            K01-0006-1
----------------------------------------------------------------------------------------------------------------------------------

                                                                     TOXICITY
----------------------------------------------------------------------------------------------------------------------------------
Cell Viability                                                   Cell Viability                   $450            K02-0001-1
----------------------------------------------------------------------------------------------------------------------------------
Multiparameter Toxicity 1 (Nuclear morphology,
Lysosomal mass, Cell membrane permeability,                 Multiparameter Toxicity 1              TBD               TBD
Mitochondral potential)
----------------------------------------------------------------------------------------------------------------------------------
Micronucleus Content                                              Micronucleus                     TBD               TBD
----------------------------------------------------------------------------------------------------------------------------------
Cytochrome P450 Activation                                       P450 Activation                   TBD               TBD
----------------------------------------------------------------------------------------------------------------------------------

APOPTOSIS
----------------------------------------------------------------------------------------------------------------------------------
Multiparameter Apoptosis 1 (Mitochondrial
mass/potential, Cytoskeleton, Nuclear morphology)          Multiparameter Apoptosis 1             $650            K04-0001-1
----------------------------------------------------------------------------------------------------------------------------------
Multiparameter Apoptosis 2 (Caspase activation,
Nuclear morphology, Mitochondrial mass/potential)           Multiparameter Apoptosis 2             TBD                TBD
----------------------------------------------------------------------------------------------------------------------------------

RECEPTOR ACTIVATION
----------------------------------------------------------------------------------------------------------------------------------
Transferrin Receptor                                Receptor Internalization and Trafficking      $450            K03-0001-1
----------------------------------------------------------------------------------------------------------------------------------
Multiparameter GPCR 1 (Bradykinin,
(beta)2-Adrenergic)                                 Receptor Internalization and Trafficking       TBD               TBD
----------------------------------------------------------------------------------------------------------------------------------

CELL CYCLE
----------------------------------------------------------------------------------------------------------------------------------
Mitotic Index                                              Cell Proliferation/Cycling             $650            K05-0001-1
----------------------------------------------------------------------------------------------------------------------------------

CELL MOTILITY/MORPHOLOGY
----------------------------------------------------------------------------------------------------------------------------------
Cell Spreading**                                                 Cell Spreading                    TBD               TBD
----------------------------------------------------------------------------------------------------------------------------------
Cell Hypertrophy**                                               Cell Spreading                    TBD               TBD
----------------------------------------------------------------------------------------------------------------------------------
Directed Cell Movement                                           Cell Motility 1                   TBD               TBD
----------------------------------------------------------------------------------------------------------------------------------
Neurite Outgrowth                                               Neurite Outgrowth                  TBD               TBD
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

               NOTE: PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.
            CELLOMICS KIT PRODUCTS ARE AVAILABLE IN ACCORDANCE WITH
                SPECIFICATIONS INCLUDED IN THE PRODUCT INSERTS.

                                       56
<PAGE>   57

                                EXHIBIT 2.2 [*]

[*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       57
<PAGE>   58

                                EXHIBIT 2.3 [*]

[*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       58
<PAGE>   59

                                EXHIBIT 2.4 [*]

[*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       59
<PAGE>   60

                                EXHIBIT 2.6 [*]

[*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       60
<PAGE>   61

          EXHIBIT 3.3A CELLOMICS KIT AND CELLOMICS REAGENTS LIST PRICES

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                       HITKIT*                            ARRAYSCAN(R) II APPLICATION        US LIST PRICE          CATALOG NO.
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                    <C>                                   <C>                  <C>
BASIC SIGNALING
----------------------------------------------------------------------------------------------------------------------------------
Nuclear Factor (kappa)B Activation**                   Cytoplasm to Nucleus Translocation         $450            K01-0001-1
----------------------------------------------------------------------------------------------------------------------------------
STAT1 Activation**                                     Cytoplasm to Nucleus Translocation         $450            K01-0002-1
----------------------------------------------------------------------------------------------------------------------------------
STAT2 Activation**                                     Cytoplasm to Nucleus Translocation         $450            K01-0005-1
----------------------------------------------------------------------------------------------------------------------------------
STAT3 Activation**                                     Cytoplasm to Nucleus Translocation         $450            K01-0008-1
----------------------------------------------------------------------------------------------------------------------------------
STAT5 Activation**                                     Cytoplasm to Nucleus Translocation         $450            K01-0009-1
----------------------------------------------------------------------------------------------------------------------------------
c-jun Activation**                                     Cytoplasm to Nucleus Translocation         $450            K01-0003-1
----------------------------------------------------------------------------------------------------------------------------------
ERK (MAPK) Activation**                                Cytoplasm to Nucleus Translocation         $650            K07-0007-1
----------------------------------------------------------------------------------------------------------------------------------
p38 MAPK (HOG1) Activation**                           Cytoplasm to Nucleus Translocation         $650            K01-0004-1
----------------------------------------------------------------------------------------------------------------------------------
JNK/SAPK Activation**                                  Cytoplasm to Nucleus Translocation         $650            K01-0006-1
----------------------------------------------------------------------------------------------------------------------------------

                                                             TOXICITY
----------------------------------------------------------------------------------------------------------------------------------
Cell Viability                                                   Cell Viability                   $450            K02-0001-1
----------------------------------------------------------------------------------------------------------------------------------
Multiparameter Toxicity 1 (Nuclear morphology,
Lysosomal mass, Cell membrane permeability,                 Multiparameter Toxicity 1              TBD               TBD
Mitochondral potential)
----------------------------------------------------------------------------------------------------------------------------------
Micronucleus Content                                              Micronucleus                     TBD               TBD
----------------------------------------------------------------------------------------------------------------------------------
Cytochrome P450 Activation                                       P450 Activation                   TBD               TBD
----------------------------------------------------------------------------------------------------------------------------------

APOPTOSIS
----------------------------------------------------------------------------------------------------------------------------------
Multiparameter Apoptosis 1 (Mitochondrial
mass/potential, Cytoskeleton, Nuclear morphology)          Multiparameter Apoptosis 1             $650            K04-0001-1
----------------------------------------------------------------------------------------------------------------------------------
Multiparameter Apoptosis 2 (Caspase activation,
Nuclear morphology, Mitochondrial mass/potential)           Multiparameter Apoptosis 2             TBD                TBD
----------------------------------------------------------------------------------------------------------------------------------

RECEPTOR ACTIVATION
----------------------------------------------------------------------------------------------------------------------------------
Transferrin Receptor                                Receptor Internalization and Trafficking      $450            K03-0001-1
----------------------------------------------------------------------------------------------------------------------------------
Multiparameter GPCR 1 (Bradykinin,
(beta)2-Adrenergic)                                 Receptor Internalization and Trafficking       TBD               TBD
----------------------------------------------------------------------------------------------------------------------------------

CELL CYCLE
----------------------------------------------------------------------------------------------------------------------------------
Mitotic Index                                              Cell Proliferation/Cycling             $650            K05-0001-1
----------------------------------------------------------------------------------------------------------------------------------

CELL MOTILITY/MORPHOLOGY
----------------------------------------------------------------------------------------------------------------------------------
Cell Spreading**                                                 Cell Spreading                    TBD               TBD
----------------------------------------------------------------------------------------------------------------------------------
Cell Hypertrophy**                                               Cell Spreading                    TBD               TBD
----------------------------------------------------------------------------------------------------------------------------------
Directed Cell Movement                                           Cell Motility 1                   TBD               TBD
----------------------------------------------------------------------------------------------------------------------------------
Neurite Outgrowth                                               Neurite Outgrowth                  TBD               TBD
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

               Note: Prices are subject to change without notice.

                                       61
<PAGE>   62

                                   EXHIBIT 3.7

                                PRODUCT WARRANTY

Subject to the exceptions and upon the conditions stated below, Cellomics
warrants that the Products shall be free from defects in workmanship and
materials for one year after delivery of the Products to the BCI customer and if
any such Product should prove to have a defect in workmanship or material within
such one year period, Cellomics agrees, at its option, to correct such defective
Product either by repair or by replacement.

Items not intended or expected to be durable are not warranted beyond initial
condition. Examples of such items are light bulbs, plastic tubing, ink ribbons,
floppy disks, etc.

Cellomics makes no warranty with respect to components or accessories not
manufactured by it. Such components or accessories will be subject to the
warranties, if any, of their respective manufacturers.

The above warranties do not apply to conditions resulting from (a) improper use,
(b) use in a manner not in accordance with the instructions contained in the
user's manual, (c) negligence, (d) operation with incompatible solvents or
samples in the system, (e) unsupported configurations, (f) external causes, (g)
modifications, service, moving or installation not performed by Cellomics or its
authorized service providers, (h) performance of improper or inadequate
maintenance by the user, (i) operation outside the environmental parameters
specified for the Product, (j) use of non-Cellomics software, accessories,
media, supplies, consumables, or such items not designed for use with the
Product, or (k) in whole or in part, fire or explosion of any origin, riot,
civil commotion, aircraft, war, electrical surges, or any act of God, including,
but not limited to, lightning, windstorm, hail, flood or earthquake .

Cellomics does not warrant that the operation of any Product will be
uninterrupted or error free.

If the Product is a reagent or the like, Cellomics expressly warrants that the
Product conforms to the specifications set forth in the Product labeling and
accompanying instructions including use, performance, storage, and expiration
dating. Cellomics' Products are warranted to meet Product specifications in
effect at the time of shipment. Notice of nonconforming Products must be made to
Cellomics within 30 days of receipt of the Product. This Product warranty limits
Cellomics' liability to the replacement of the Product only. If Cellomics
determines that the Product does not conform to said specifications, Cellomics
will replace the Product at no additional cost to customer. This limited
warranty shall not extend to anyone other than the original purchaser of the
product.

                                       62
<PAGE>   63

THE REMEDIES PROVIDED ABOVE ARE THE SOLE AND EXCLUSIVE REMEDIES. IN NO EVENT
WILL CELLOMICS BE LIABLE FOR ANY DAMAGES RESULTING FROM THE LOSS OF USE, LOSS OF
RESEARCH OR DEVELOPMENT, LOSS OF DATA, LOST PROFITS OR OTHER ECONOMIC LOSS, OR
ANY PUNITIVE, SPECIAL, INCIDENTAL, CONSEQUENTIAL, DIRECT OR INDIRECT DAMAGES
WHETHER BASED ON WARRANTY, CONTRACT, TORT, OR ANY OTHER LEGAL THEORY, EVEN
THOUGH CELLOMICS MAY HAVE BEEN ADVISED OR MAY OTHERWISE KNOW OF THE POSSIBILITY
OF SUCH DAMAGES.

                                       63
<PAGE>   64

                                   EXHIBIT 3.7

                          PRODUCT WARRANTY (CONTINUED)

Representations and warranties made by any person, including dealers and
representatives of Cellomics, which are inconsistent or in conflict with the
terms of this warranty, shall not be binding upon Cellomics unless reduced to
writing and signed by an expressly authorized officer of Cellomics.

THIS WARRANTY IS THE SOLE AND EXCLUSIVE WARRANTY AS TO THE PRODUCTS AND IS IN
LIEU OF ANY OTHER EXPRESS OR IMPLIED WARRANTIES, INCLUDING, WITHOUT LIMITATION,
ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND
OF ANY OTHER OBLIGATION ON THE PART OF CELLOMICS.

                                       64
<PAGE>   65

                             EXHIBIT 3.9A [*]

[*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       65
<PAGE>   66

                     EXHIBIT 3.9B [*]

[*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       66
<PAGE>   67

                                                                [CELLOMICS LOGO]
                                EXHIBIT 3.13 [*]

[*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       67
<PAGE>   68

                                EXHIBIT 4.2 [*]

[*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       68
<PAGE>   69

                                 EXHIBIT 8 [*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       69
<PAGE>   70

                                EXHIBIT 9.1 [*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       70
<PAGE>   71

                  [*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                       71

<PAGE>   72

BECKMAN
COULTER
[LOGO]

                                 June 16, 2000

Cellomics, Inc.
635 William Pitt Way
Pittsburgh, PA 15238

Gentlemen:

This letter, with the signature below of an authorized representative of
Cellomics, Inc. ("Cellomics"), will constitute the first amendment to the
Strategic Relationship Agreement between Cellomics and Beckman Coulter, Inc.
effective on June 10, 2000 (the "Agreement"). We have agreed as follows:

1.  Paragraph 4.1, line 3 - delete "Paragraphs 4.2 or 4.3" and substitute in
    its place "the provisions of this Agreement".

2.  In all other respects the Agreement remains unchanged and in full force
    and effect.

If the foregoing properly sets forth our understanding, please have an officer
of Cellomics sign both copies of this letter in the space below and return
one (1) copy to me; the second copy is for your files.

                                             Sincerely,

                                             Beckman Coulter, Inc.

                                             By: /s/ [Illegible]
                                                 ------------------------------

                                             Title: Chairman, President and CEO
                                                    ---------------------------

Accepted and Agreed:

Cellomics, Inc.

by /s/ D. LANSING TAYLOR
   --------------------------------

title President & CEO
      -----------------------------

date      6/23/00
     -------------------------------

K:\bjg\docs-4\4808

Beckman Coulter, Inc.                  Telephone: (714) 871-4848
Office of the General Counsel          Facsimile: (714) 773-7936
4300 N. Harbor Boulevard               Internet:  www.beckmancoulter.com
P.O. Box 3100
Fullerton, CA 92834-3100

<PAGE>   73
BECKMAN
COULTER
 [LOGO]

                                October 18, 2000

Cellomics, Inc.
635 William Pitt Way
Pittsburgh, PA 15238

Gentlemen:

This letter with the signature below of an authorized representative of
Cellomics, Inc. ("Cellomics") will constitute the second amendment to our
Strategic Relationship Agreement effective June 14, 2000 (the "Agreement"). We
have agreed as follows:

1.   Paragraph 3.7, second sentence - Change "Exhibit 3.7A" to "Exhibit 3.7".

2.   Paragraph 3.7 - Delete last sentence in its entirety and substitute
     therefore the following:

          "Cellomics shall also reimburse BCI at BCI's then standard
          rates (which the parties understand and agree may be
          increased from time to time by BCI) for the time spent
          and expenses incurred by BCI service personnel
          in performing such warranty repairs and preventive
          maintenance on Cellomics Instruments and in traveling
          to and from the service personnel's home office
          to the customer requesting or requiring such warranty
          service on preventive maintenance; a schedule showing
          BCI's standard rates in effect as of the Effective Date
          is attached hereto as Exhibit 3.7A."

3.   Paragraph 11.1 - Delete the first sentence in its entirety and substitute
     therefore the following:

          "BCI agrees to and shall grant to Cellomics licenses
          under BCI patents and applications for patent nominated
          by BCI in an Exhibit to be added to this Agreement
          by November 30, 2000, which patents and applications
          shall be limited to those which are owned or controlled by
          BCI (i.e., BCI has the right to grant licenses and sublicenses
          thereunder) and are in existence as of the Effective Date."

                                      -1-
--------------------------------------------------------------------------------

Beckman Coulter, Inc.                  Telephone: (714) 871-4848
Office of the General Counsel          Facsimile: (714) 773-7936
4300 N. Harbor Boulevard               Internet:  www.beckmancoulter.com
P.O. Box 3100
Fullerton, CA 92834-3100

<PAGE>   74
4.   Paragraph 11.2 - Delete the first sentence in its entirety and substitute
     therefore the following:

          "Cellomics agrees to and shall grant to BCI licenses under
          Cellomics patents and applications for patent nominated
          by Cellomics in an Exhibit to be added to this Agreement
          by November 30, 2000, which patents and applications
          shall be limited to those which are owned or controlled by
          Cellomics (i.e., under which Cellomics has the right to grant
          licenses or sublicenses) and are in existence as of the
          Effective Date."

5.   Exhibit 2.3, under the heading "Beginning with the Effective Date." -
     Delete the second bullet in its entirety and substitute therefore the
     following:

         [*]

6.   Exhibit 3.3A - Delete in its entirety and substitute therefore the
     following:

         [*]

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                      -2-
<PAGE>   75
                CELLOMICS KIT AND CELLOMICS REAGENTS LIST PRICES
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                      HitKit(R)                                   ArrayScan(R) II Application       U.S. List Price  Catalog No.
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>                                   <C>              <C>
BASIC SIGNALING
--------------------------------------------------------------------------------------------------------------------------------
Nuclear Factor kB Activation**                                Cytoplasm to Nucleus Translocation           $450      K01-0001-1
--------------------------------------------------------------------------------------------------------------------------------
STAT1 Activation**                                            Cytoplasm to Nucleus Translocation           $450      K01-0002-1
--------------------------------------------------------------------------------------------------------------------------------
STAT2 Activation**                                            Cytoplasm to Nucleus Translocation           $450      K01-0005-1
--------------------------------------------------------------------------------------------------------------------------------
STAT3 Activation**                                            Cytoplasm to Nucleus Translocation           $450      K01-0008-1
--------------------------------------------------------------------------------------------------------------------------------
STAT5 Activation**                                            Cytoplasm to Nucleus Translocation           $450      K01-0009-1
--------------------------------------------------------------------------------------------------------------------------------
c-jun Activation**                                            Cytoplasm to Nucleus Translocation           $450      K01-0003-1
--------------------------------------------------------------------------------------------------------------------------------
ERK (MAPK) Activation**                                       Cytoplasm to Nucleus Translocation           $650      K07-0007-1
--------------------------------------------------------------------------------------------------------------------------------
p38 MAPK (HOGI) Activation**                                  Cytoplasm to Nucleus Translocation           $650      K01-0004-1
--------------------------------------------------------------------------------------------------------------------------------
JNK/SAPK Activation                                           Cytoplasm to Nucleus Translocation           $650      K01-0006-1
--------------------------------------------------------------------------------------------------------------------------------
                                                            TOXICITY
--------------------------------------------------------------------------------------------------------------------------------
Cell Viability                                                          Cell Viability                     $450      K02-0001-1
--------------------------------------------------------------------------------------------------------------------------------
Multiparameter Toxicity 1 (Nuclear morphology, Lysosomal           Multiparameter Toxicity 1               TBD         TBD
mass, Cell membrane permeability, Mitochondral potential)
--------------------------------------------------------------------------------------------------------------------------------
Micronucleus Content                                                    Micronuceleus                      TBD         TBD
--------------------------------------------------------------------------------------------------------------------------------
Cytochrome P450 Activation                                             P450 Activation                     TBD         TBD
--------------------------------------------------------------------------------------------------------------------------------
APOPTOSIS
--------------------------------------------------------------------------------------------------------------------------------
Multiparameter Apoptosis 1 (Mitochondrial mass/potential,          Multiparameter Apoptosis 1              $650      K04-0001-1
Cytoskeleton, Nuclear morphology
--------------------------------------------------------------------------------------------------------------------------------
Multiparameter Apoptosis 2 (Caspase activation, Nuclear            Multiparameter Apoptosis 2              TBD         TBD
morphology, Mitochondrial mass/potential)
--------------------------------------------------------------------------------------------------------------------------------
RECEPTOR ACTIVATION
--------------------------------------------------------------------------------------------------------------------------------
Transferrin Receptor                                       Receptor Internalization and Trafficking        $450      K03-0001-1
--------------------------------------------------------------------------------------------------------------------------------
Multiparameter GPCR 1 (Bradykinin, B2-Adrenergic)          Receptor Internalization and Trafficking        TBD         TBD
--------------------------------------------------------------------------------------------------------------------------------
CELL CYCLE
--------------------------------------------------------------------------------------------------------------------------------
Mitotic Index                                                      Cell Proliferation/Cycling              $650      K05-0001-1
--------------------------------------------------------------------------------------------------------------------------------
CELL MOBILITY/MORPHOLOGY
--------------------------------------------------------------------------------------------------------------------------------
Cell Spreading**                                                        Cell Spreading                     TBD         TBD
--------------------------------------------------------------------------------------------------------------------------------
Cell Hypertrophy**                                                      Cell Spreading                     TBD         TBD*
--------------------------------------------------------------------------------------------------------------------------------
Directed Cell Movement                                                  Cell Mobility 1                    TBD         TBD
--------------------------------------------------------------------------------------------------------------------------------
Neunte Outgrowth                                                        Neurite Outgrowth                  TBD         TBD
--------------------------------------------------------------------------------------------------------------------------------
          Note: Prices are subject to change without notice.
</TABLE>

                                      -3-
<PAGE>   76
7.   Add the following as Exhibit 3.7A:

                         "Exhibit 3.7A

         [*]

8.   In all other respects the Agreement remains unchanged and in full force and
     effect.

If the foregoing properly sets forth our understanding, please sign both copies
of this second amendment in the space indicated below and return one copy to
Arnold Grant at the above address; the second copy is for your files.

                                        Sincerely,

                                        Beckman Coulter, Inc.

                                        By:        [Illegible]
                                           ---------------------------------
                                        Title: VP Bioresearch
                                              ------------------------------
                                        Date: 10/25/00
                                              ------------------------------

Accepted and Agreed:

Cellomics, Inc.

by       [Illegible]
  ------------------------------
Title Chief Business Officer
     ---------------------------
date 10/27/2000
     ---------------------------

     "CONFIDENTIAL [*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT
OF 1933, AS AMENDED."

                                      -4-<PAGE>   1
                                                                   Exhibit 10.20

                            SERIES C PREFERRED STOCK
                               PURCHASE AGREEMENT

                                  BY AND AMONG

                    THE PURCHASERS LISTED ON EXHIBIT A HERETO

                                       AND

                                 CELLOMICS, INC.

                         DATED AS OF SEPTEMBER 27, 2000

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                              Page No.
                                                                                                              --------

<S>               <C>                                                                                        <C>
SECTION 1  AUTHORIZATION, PURCHASE AND SALE OF SHARES AND WARRANTS................................................1
         1.1      AUTHORIZATION OF THE SHARES.....................................................................1
         1.2      SALE AND PURCHASE OF THE SHARES.................................................................1
         1.3      CERTAIN DEFINED TERMS...........................................................................1

SECTION 2  CLOSING, PAYMENT AND DELIVERY..........................................................................2
         2.1      CLOSING DATE....................................................................................2
         2.2      PLACE OF CLOSING................................................................................2
         2.3      CLOSING PAYMENT AND DELIVERY....................................................................2

SECTION 3  REPRESENTATIONS AND WARRANTIES OF THE COMPANY..........................................................2
         3.1      ORGANIZATION AND STANDING; ARTICLES AND BY-LAWS.................................................2
         3.2      CORPORATE POWER.................................................................................3
         3.3      SUBSIDIARIES....................................................................................3
         3.4      CAPITALIZATION..................................................................................3
         3.5      AUTHORIZATION...................................................................................4
         3.6      CONTRACTS; INSURANCE............................................................................4
         3.7      FINANCIAL INFORMATION...........................................................................6
         3.8      ABSENCE OF UNDISCLOSED LIABILITIES..............................................................6
         3.9      ABSENCE OF CERTAIN CHANGES......................................................................6
         3.10     TAXES...........................................................................................7
         3.11     TRANSACTIONS WITH AFFILIATES....................................................................7
         3.12     LITIGATION......................................................................................8
         3.13     CONSENTS........................................................................................8
         3.14     TITLE TO PROPERTIES; LIENS AND ENCUMBRANCES.....................................................8
         3.15     LEASES..........................................................................................8
         3.16     FRANCHISES, LICENSES, TRADEMARKS, PATENTS AND OTHER RIGHTS......................................9
         3.17     ISSUANCE TAXES.................................................................................10
         3.18     OFFERING.......................................................................................10
         3.19     COMPLIANCE WITH OTHER INSTRUMENTS..............................................................10
         3.20     EMPLOYEES......................................................................................10
         3.21     BUSINESS OF THE COMPANY........................................................................12
         3.22     USE OF PROCEEDS................................................................................12
         3.23     APPLICABILITY OF, AND COMPLIANCE WITH, OTHER LAWS..............................................12
         3.24     INDEBTEDNESS...................................................................................14
         3.25     CONDITION OF PROPERTIES........................................................................14
         3.26     INSURANCE COVERAGE.............................................................................14
         3.27     REGISTRATION RIGHTS............................................................................15
         3.28     SEC REPORTS..........................................................ERROR! BOOKMARK NOT DEFINED.
         3.29     ILLEGAL OR UNAUTHORIZED PAYMENTS; POLITICAL CONTRIBUTIONS......................................15
</TABLE>

                                      -i-

<PAGE>   3

<TABLE>
<CAPTION>
                                                                                                              Page No.
                                                                                                              --------
<S>               <C>                                                                                         <C>
         3.30     QUALIFIED SMALL BUSINESS STOCK.................................................................15
         3.31     EFFECTIVENESS OF MERGER........................................................................16
         3.32     DISCLOSURE.....................................................................................16

SECTION 4 Representations and Warranties of Purchasers...........................................................16
         4.1      REPRESENTATION AND WARRANTIES OF THE PURCHASERS................................................16

SECTION 5  CONDITIONS TO CLOSING OF PURCHASERS...................................................................18
         5.1      REPRESENTATIONS AND WARRANTIES CORRECT.........................................................18
         5.2      PERFORMANCE....................................................................................18
         5.3      COMPLIANCE CERTIFICATE.........................................................................18
         5.4      OPINION OF COMPANY'S COUNSEL...................................................................18
         5.5      GOOD STANDING CERTIFICATES.....................................................................18
         5.6      LEGAL INVESTMENT...............................................................................19
         5.7      QUALIFICATIONS.................................................................................19
         5.8      FILING OF AMENDED AND RESTATED CERTIFICATE.....................................................19
         5.9      PROCEEDINGS AND DOCUMENTS......................................................................19
         5.10     PROVISIONS OF BY-LAWS..........................................................................19
         5.11     SHAREHOLDERS' AGREEMENT........................................................................19
         5.12     MANAGEMENT RIGHTS LETTERS......................................................................20
         5.13     BOARD OF DIRECTORS; INDEMNIFICATION............................................................20
         5.14     APPROVAL OF COMPANY BOARD OF DIRECTORS AND STOCKHOLDERS........................................20

SECTION 6  CONDITIONS TO CLOSING OF COMPANY......................................................................20
         6.1      REPRESENTATIONS................................................................................20
         6.2      PERFORMANCE....................................................................................20
         6.3      LEGAL INVESTMENT...............................................................................20
         6.4      AMENDED AND RESTATED CERTIFICATE...............................................................21
         6.5      SHAREHOLDERS' AGREEMENT........................................................................21
         6.6      SECOND AMENDED AND RESTATED CERTIFICATE AND AMENDED AND RESTATED BYLAWS........................21

SECTION 7  COVENANTS OF THE COMPANY..............................................................................21
         7.1      BASIC FINANCIAL INFORMATION....................................................................21
         7.2      ADDITIONAL INFORMATION AND RIGHTS..............................................................23
         7.3      PROMPT PAYMENT OF TAXES, ETC...................................................................23
         7.4      MAINTENANCE OF PROPERTIES AND LEASES...........................................................23
         7.5      INSURANCE......................................................................................24
         7.6      ACCOUNTS AND RECORDS...........................................................................24
         7.7      COMPLIANCE WITH REQUIREMENTS OF GOVERNMENTAL AUTHORITIES.......................................24
         7.8      MAINTENANCE OF CORPORATE EXISTENCE, ETC........................................................25
         7.9      AVAILABILITY OF COMMON STOCK FOR CONVERSION OF SERIES C PREFERRED..............................25
         7.10     PROPRIETARY INFORMATION AGREEMENT AND KEY EMPLOYEE AGREEMENT...................................25
         7.11     QUALIFIED SMALL BUSINESS STOCK.................................................................25
         7.12     USE OF PROCEEDS................................................................................25
</TABLE>

                                      -ii-

<PAGE>   4

<TABLE>
<CAPTION>
                                                                                                              Page No.
                                                                                                              --------
<S>               <C>                                                                                         <C>
         7.13     SECURITIES LAW FILINGS.........................................................................26
         7.14     COMPLIANCE BY SUBSIDIARIES.....................................................................26

SECTION 8  NEGATIVE COVENANTS....................................................................................26
         8.1      CHANGES IN TYPE OF BUSINESS....................................................................26
         8.2      CONFLICTING AGREEMENTS.........................................................................26
         8.3      EMPLOYEE STOCK PLANS...........................................................................26
         8.4      RELATED PARTY TRANSACTIONS.....................................................................27

SECTION 9  RESTRICTIONS ON TRANSFERABILITY OF SECURITIES;
                  COMPLIANCE WITH SECURITIES ACT; REGISTRATION RIGHTS............................................27
         9.1      RESTRICTIONS ON TRANSFERABILITY................................................................27
         9.2      CERTAIN DEFINITIONS............................................................................27
         9.3      RESTRICTIVE LEGEND.............................................................................28
         9.4      NOTICE OF PROPOSED TRANSFERS AND SECURITIES ACT COMPLIANCE.....................................29
         9.5      REQUESTED REGISTRATION.........................................................................30
         9.6      COMPANY REGISTRATION...........................................................................32
         9.7      REGISTRATION ON FORM S-3.......................................................................33
         9.8      EXPENSES OF REGISTRATION.......................................................................34
         9.9      REGISTRATION PROCEDURES........................................................................34
         9.10     INDEMNIFICATION AND CONTRIBUTION...............................................................35
         9.11     INFORMATION BY HOLDER..........................................................................37
         9.12     LIMITATIONS ON REGISTRATION OF ISSUES OF SECURITIES............................................37
         9.13     RULE 144 REPORTING.............................................................................38
         9.14     TRANSFER OF REGISTRATION RIGHTS................................................................38
         9.15     "MARKET STAND-OFF" AGREEMENT...................................................................38

SECTION 10  DEFINITIONS..........................................................................................39

SECTION 11  MISCELLANEOUS........................................................................................43
         11.1     GOVERNING LAW..................................................................................43
         11.2     SURVIVAL.......................................................................................43
         11.3     SUCCESSORS AND ASSIGNS.........................................................................44
         11.4     ENTIRE AGREEMENT...............................................................................44
         11.5     NOTICES, ETC...................................................................................44
         11.6     DELAYS OR OMISSIONS............................................................................45
         11.7     RIGHTS; SEPARABILITY...........................................................................45
         11.8     AGENT'S FEES AND SERVICES......................................................................45
         11.9     LEGAL FEES AND EXPENSES........................................................................46
         11.10    TITLES AND SUBTITLES...........................................................................46
         11.11    COUNTERPARTS...................................................................................46
         11.12    AGGREGATION OF STOCK...........................................................................46
</TABLE>

                                     -iii-

<PAGE>   5

                                LIST OF EXHIBITS

EXHIBIT A         -        Schedule of Purchasers

EXHIBIT B         -        Amended and Restated Certificate of Incorporation

EXHIBIT C         -        Schedule of Exceptions

EXHIBIT D         -        Form of Proprietary Information Agreement

EXHIBIT E         -        Form of Opinion of Counsel

EXHIBIT F         -        Amended and Restated Shareholders' Agreement

EXHIBIT G         -        Form of Management Rights Letter

EXHIBIT H         -        Form of Key Employee Agreement

                                      -iv-

<PAGE>   6

                            SERIES C PREFERRED STOCK

                               PURCHASE AGREEMENT

         THIS SERIES C PREFERRED STOCK PURCHASE AGREEMENT (this "Agreement") is
made and entered into as of the 27th day of September, 2000, by and among
CELLOMICS, INC. (the "Company"), a Delaware corporation having offices at 635
William Pitt Way, Pittsburgh, Pennsylvania 15238, and EACH OF THE PARTIES LISTED
ON THE SCHEDULE OF PURCHASERS ATTACHED HERETO AS EXHIBIT A (the "Schedule of
Purchasers"). The parties listed on the Schedule of Purchasers are hereinafter
referred to collectively as the "Purchasers."

         WHEREAS, the Company desires to issue and sell, and the Purchasers
desire to purchase, certain securities of the Company;

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants and conditions herein contained, the Company and the Purchasers,
severally and not jointly, hereby agree as follows:

                                   SECTION 1

             AUTHORIZATION, PURCHASE AND SALE OF SHARES AND WARRANTS

         1.1 AUTHORIZATION OF THE SHARES.

         The Company has, or before the Closing (as defined in Section 2.1
hereof) will have, authorized the issuance and sale of up to One Million Six
Hundred Forty-Five Thousand Six Hundred Thirty Nine (1,645,639) shares of Series
C Preferred Stock, par value $.01 per share of the Company (the "Series C
Preferred"), having the rights, restrictions, privileges and preferences as set
forth in the Amended and Restated Certificate of Incorporation of the Company
(the "Amended and Restated Certificate"), the form of which is attached to this
Agreement as Exhibit B.

         1.2 SALE AND PURCHASE OF THE SHARES.

         Upon and subject to the terms and conditions of this Agreement and in
reliance upon the representations, warranties and agreements contained herein,
at the Closing the Company will issue and sell to each Purchaser, and each
Purchaser will purchase from the Company at the Closing, that number of shares
of Series C Preferred set forth opposite such Purchaser's name on the Schedule
of Purchasers for the Closing (all such shares being collectively referred to as
the "Shares").

         1.3 CERTAIN DEFINED TERMS.

         Certain capitalized terms used in this Agreement shall have the
respective meanings ascribed to them in Section 10 hereof.

<PAGE>   7

                                   SECTION 2

                          CLOSING, PAYMENT AND DELIVERY

         2.1 CLOSING DATE.

         Subject to the terms and provisions of this Agreement, the closing (the
"Closing") of the purchase and sale of Shares hereunder shall be in the amounts
set forth on the Schedule of Purchasers. The Closing shall be by and among the
Company and the Purchasers specified on the Schedule of Purchasers and shall be
held on the date (the "Closing Date") of, and immediately following, (a) the
final execution and delivery of at least one counterpart of this Agreement by
the Company and each of the Purchasers and (b) the satisfaction or waiver of all
conditions to the obligations of the parties to consummate the transactions
contemplated hereby, or such other date as shall have been agreed to by the
Company and the Purchasers.

         2.2 PLACE OF CLOSING.

         The place of the Closing (including the place of delivery to the
Purchasers by the Company of the certificates evidencing all Shares being
purchased at the Closing and the place of payment to the Company by the
Purchasers of the purchase price therefor) shall be at the offices of Metz
Schermer & Lewis, L.L.C., The Westinghouse Building - 18th Floor, 11 Stanwix
Street, Pittsburgh, PA 15222, or such other place as shall have been agreed to
by the Company and the Purchasers.

         2.3 CLOSING PAYMENT AND DELIVERY.

         At the Closing, each Purchaser will pay to the Company by wire transfer
as set forth on the Schedule of Purchasers, the amount set forth opposite such
Purchaser's name under the column labeled "Total Investment" on the Schedule of
Purchasers; and the Company will deliver to each Purchaser a certificate or
certificates registered in the Purchaser's name (or in such name or names as
otherwise designated by such Purchaser) representing the number of Shares to be
purchased at the Closing as set forth opposite such Purchaser's name under the
column labeled "Series C Preferred Shares" on the Schedule of Purchasers.

                                   SECTION 3

                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         Except as expressly set forth (with reference to a paragraph in this
Section 3) on the Schedule of Exceptions attached hereto as Exhibit C (the
"Schedule of Exceptions"), the Company hereby represents and warrants to the
Purchasers as follows:

         3.1 ORGANIZATION AND STANDING; ARTICLES AND BY-LAWS.

             (a) The Company is a corporation duly organized, validly existing
         and in good standing under the laws of the State of Delaware and is
         qualified, licensed or domesticated as a foreign corporation in each
         jurisdiction wherein the nature of its

                                       -2-
<PAGE>   8

         activities or properties owned or leased by it makes such
         qualification, licensing or domestication necessary. The Schedule of
         Exceptions sets forth the jurisdictions in which the Company is
         qualified, licensed or domesticated as a foreign corporation. The
         Company has all requisite power, governmental licenses, authorization,
         consents and approvals to own the properties owned by it and to
         conduct the business as it is being conducted by it and as
         contemplated by the Company's Confidential Private Placement
         Memorandum, dated June 2000 (the "Memorandum"), a true and correct
         copy of which has been given to the Purchasers. The Schedule of
         Exceptions sets forth all jurisdictions in which the Company owns or
         leases property or engages in material activity.

             (b) Prior to the Closing, the Company shall have properly filed and
         recorded the Amended and Restated Certificate with the Secretary of the
         State of Delaware. The Company is not in breach of any of the
         provisions of the Amended and Restated Certificate or its By-Laws.

         3.2 CORPORATE POWER.

         The Company has all requisite corporate power to enter into this
Agreement and each of the Financing Documents and will have on the Closing Date
all requisite corporate power to sell the Shares to be sold on the Closing Date
and to carry out and perform its obligations under the terms of this Agreement
and each of the Financing Documents.

         3.3 SUBSIDIARIES.

         The Company has no Subsidiaries and, except as set forth in the
Schedule of Exceptions, does not own of record or beneficially any capital stock
or equity interest or investment in any corporation, partnership, association or
business entity.

         3.4 CAPITALIZATION.

         The Schedule of Exceptions contains a true and correct list of all
securities of the Company (including the amounts thereof) outstanding
immediately prior to the Closing, and the holders of any interest in such
securities. Immediately prior to the Closing, the Company's authorized capital
stock will consist of (a) Eight Million (8,000,000) shares of Common Stock, par
value $.01 per share of the Company (the "Common Stock"), of which One Million
Three Hundred Thirty Eight Thousand Five Hundred Seventy Five (1,338,575) shares
will be issued and outstanding, (b) Two Million Twenty-Four Thousand Five
Hundred (2,024,500) shares of Series A Preferred Stock, par value $.01 per share
of the Company (the "Series A Preferred"), of which One Million Nine Hundred
Sixty-Six Thousand Six Hundred Eighteen (1,966,618) shares will be issued and
outstanding, (c) Seven Hundred Thousand (700,000) shares of Series B Preferred,
par value $.01 per share of the Company (the "Series B Preferred"), of which Six
Hundred Ninety-Three Thousand Six Hundred Seventy-Five (693,675) shares will be
issued and outstanding, and (d) One Million Six Hundred Fifty Thousand
(1,650,000) shares of Series C Preferred, none of which will be issued and
outstanding. Upon consummation of the Closing, all issued and outstanding shares
of capital stock of the Company will have been duly authorized and validly
issued, will be fully paid and nonassessable, will be owned of record and
beneficially by the shareholders and in the amounts set forth in the Schedule of
Exceptions, and will have

                                      -3-
<PAGE>   9

been offered, issued, sold and delivered by the Company in compliance with
applicable federal and state securities laws. Except as set forth in the
Schedule of Exceptions, the Amended and Restated Certificate and the
Shareholders' Agreement, there are no outstanding pre-emptive or other
preferential rights, conversion rights or other rights, options, warrants or
agreements granted or issued by or binding upon the Company for the purchase or
acquisition of any shares of its capital stock. No holder of Common Stock,
Series A Preferred or Series B Preferred has granted (to the best of the
Company's belief) any option or other right to purchase from such shareholder
any interest in any share of Common Stock, Series A Preferred or Series B
Preferred. The Company holds no shares of its capital stock in its treasury.

         3.5 AUTHORIZATION.

         All action on the part of the Company and its directors and
shareholders necessary for the authorization, execution, delivery and
performance by the Company of this Agreement and each of the Financing Documents
and for the consummation of the transactions contemplated herein and therein,
and for the authorization, issuance and delivery of the Shares and the
Conversion Shares has been taken or will be taken prior to the Closing. This
Agreement and each of the Financing Documents is, or upon execution will be, a
valid and binding obligation of the Company, enforceable in accordance with
their respective terms, subject to applicable bankruptcy, insolvency,
reorganization and moratorium laws and other laws of general application
affecting enforcement of creditors' rights generally. The execution and delivery
by the Company of this Agreement and each of the Financing Documents, and
compliance herewith and therewith, and the offer, issuance and sale of the
Shares and the Conversion Shares will not, with or without notice or the passage
of time or both, result in any violation of and will not conflict with, or
result in a breach of any of the terms of, or constitute a default under any
provision of, (i) any state or federal law to which the Company is subject, (ii)
the Amended and Restated Certificate or By-Laws, as amended, or (iii) any
mortgage, indenture, agreement, instrument, judgment, decree, order, rule or
regulation or other restriction to which the Company is a party or by which it
or any of its property is bound, or may be affected, or result in the creation
of any mortgage, pledge, lien, encumbrance or charge upon any of the properties
or assets of the Company pursuant to any such term or give any other person or
entity the right to accelerate the time for performance of any obligation of the
Company, except, with respect to clause (iii) only, for any such violations,
conflicts, breaches, defaults or other occurrences which would not have a
material adverse effect upon the condition, financial or otherwise, or the
operations of the Company. No shareholder has any pre-emptive rights or rights
of first refusal by reason of or in connection with the issuance of the Shares
or the Conversion Shares. The Shares, when issued in compliance with the
provisions of this Agreement, will be validly issued, fully paid and
nonassessable, and will be free of any liens or encumbrances. The Conversion
Shares have been duly and validly reserved (and are in addition to any other
shares reserved for any other purpose) and are not subject to any pre-emptive
rights or rights of first refusal and, upon issuance, will be validly issued,
fully paid and nonassessable.

         3.6 CONTRACTS; INSURANCE.

         The Schedule of Exceptions sets forth a true and correct list of all
contracts, obligations, commitments, agreements, plans and the like, whether
written or oral, and all administrative,

                                      -4-
<PAGE>   10

judicial and similar orders to which the Company is a party or by which it or
any of its properties is bound, including, without limitation, the following:

             (a) Any employment, bonus or consulting agreement, pension, profit
         sharing, deferred compensation, stock bonus, retirement, stock option,
         stock purchase, phantom stock or similar plan, or agreement evidencing
         rights to purchase securities or phantom stock of the Company or any
         agreement among shareholders of the Company;

             (b) Any loan or other agreement, note, indenture or instrument
         relating to, or evidencing, indebtedness for borrowed money, or
         mortgaging, pledging or granting or creating a lien or security
         interest or other encumbrance on any property of the Company or any
         agreement or instrument evidencing any guaranty by the Company of
         payment or performance by any other party;

             (c) Any agreement with any dealer, sales representative, broker or
         other distributor, jobber, advertiser or sales agency;

             (d) Any agreement with any labor union or collective bargaining
         organization or any other labor agreement;

             (e) Any contract for the furnishing, purchase or lease of
         machinery, equipment, goods or services (including, without limitation,
         any agreement with processors and subcontractors);

             (f) Any indenture, agreement or other document (including private
         placement brochures) relating to the future sale or repurchase of
         securities, excluding, however, this Agreement and the Financing
         Documents;

             (g) Any agreement to register under the Securities Act any of the
         securities of the Company;

             (h) Any joint venture contract or arrangement or other agreement
         involving a sharing of profits or expenses;

             (i) Any agreement (other than distributorship agreements or similar
         agreements providing for the distribution of Company's products with
         dealers, distributors and sales representatives of the Company)
         limiting the freedom of the Company to compete in any line of business
         or in any geographic area or with any party; and

             (j) Any agreement providing for disposition of any line of
         business, assets or securities of the Company, or any agreement with
         respect to the acquisition of any line of business, assets or shares of
         any other business, any agreement of merger or consolidation or letter
         of intent with respect to the foregoing.

         Notwithstanding anything to the contrary herein, the Schedule of
Exceptions may exclude any contract which (i) the Company and/or each Subsidiary
has entered into in the ordinary course of business and (ii) either (1)
obligates the Company and/or each Subsidiary to make

                                      -5-
<PAGE>   11

payments only, which payments in the aggregate do not exceed $100,000 or (2)
relates only to the non-disclosure of confidential information. The Company has
complied with all material provisions of each such contract and commitment. No
event has occurred and no condition exists which with notice or the passage of
time or both would constitute a default by the Company or, to the Company's
knowledge, by any other party thereto, under any such contract or commitment. To
the Company's knowledge, no party to such contract or commitment has threatened
to terminate or has any intention of terminating its obligations thereunder.

         3.7 FINANCIAL INFORMATION.

         Copies of the audited balance sheets of the Company dated December 31,
1998, December 31, 1999 and March 31, 2000 contained in the Memorandum and
copies of the unaudited balance sheet of the Company dated June 30, 2000 (the
unaudited balance sheet dated June 30, 2000 being referred to herein as the
"Balance Sheet") and the related statements of operations and accumulated
deficit and cash flows for the periods then ended (collectively, the "Financial
Statements") present fairly, in all material respects, the financial position of
the Company as of such dates, have been prepared in accordance with U.S.
generally accepted accounting principles, consistently applied, except for those
changes promulgated and required by accounting authority, and show all material
liabilities, absolute or contingent, of the Company required to be recorded
thereon in accordance with U.S. generally accepted accounting principles as of
the dates thereof.

         3.8 ABSENCE OF UNDISCLOSED LIABILITIES.

         The Company does not have, and does not know of, any liabilities (fixed
or contingent, including without limitation any tax liabilities due or to become
due), which, either individually or in the aggregate, are material and not
disclosed on the Balance Sheet.

         3.9 ABSENCE OF CERTAIN CHANGES.

         Since the date of the Balance Sheet, there has not been:

             (a) Any change in the condition, assets, liabilities, prospects or
         business of the Company from that shown on the Balance Sheet or as
         described in the Memorandum which, either individually or in the
         aggregate, has been or is reasonably likely to be a material adverse
         change;

             (b) Any damage to, or destruction or loss of, any of the properties
         or assets of the Company (whether or not covered by insurance)
         materially adversely affecting the business or plans of the Company or
         the Technology;

             (c) Any declaration, setting aside or payment or other distribution
         in respect of any of the Company's capital stock, or any direct or
         indirect redemption, purchase or other acquisition of any of such stock
         (or any warrant, option or other right with respect to such stock) by
         the Company or any repayment of Company debt held by any Related Party
         or by an Affiliate;

                                      -6-
<PAGE>   12

             (d) Any labor organizational activity, collective bargaining
         activity, labor dispute or labor trouble;

             (e) Any event or condition of any character, which, either
         individually or in the aggregate, materially adversely affects the
         business, operations or plans of the Company;

             (f) Any action taken or entered into by the Company involving any
         transaction other than in the usual and ordinary course of business,
         except this Agreement;

             (g) Any disclosure to any person of any material trade secrets,
         except for disclosures made to persons subject to valid and enforceable
         confidentiality agreements; or

             (h) Any disposition of assets, except for sales of inventory in the
         ordinary course of business.

         3.10 TAXES.

         The Company has filed or will file within the time prescribed by law
(including extensions of time approved by any appropriate taxing authority) all
tax returns and reports required to be filed with the United States Internal
Revenue Service and with the Commonwealth of Pennsylvania, and (except to the
extent that the failure to file would not have a material adverse effect on the
condition or operations of the Company) with all other jurisdictions where such
filing is required by law; and the Company has paid, or made adequate provision
in the Balance Sheet for the payment of, all taxes, interest, penalties,
assessments or deficiencies due in connection therewith. The Company has never
had any tax deficiency proposed or assessed against it and the Company has
executed no waiver of any statute of limitations on the assessment or collection
of any tax or governmental charge. None of the Company's federal income tax
returns nor any state income, sales or franchise tax returns has ever been
audited by governmental authorities. No tax audit, action, suit, proceeding,
investigation or claim is now pending nor, to the best of the Company's
knowledge, threatened against the Company, and no issue or question has been
raised (and is currently pending) by any taxing authority in connection with any
of the Company's tax returns or reports.

         The Company has withheld or collected from each payment made to each of
its employees, the amount of all taxes (including, but not limited to, federal
income taxes, Federal Insurance Contribution Act taxes and Federal Unemployment
Tax Act taxes) required to be withheld or collected therefrom, and has paid the
same to the proper tax receiving officers or authorized depositories.

         3.11 TRANSACTIONS WITH AFFILIATES.

         Except as set forth in the Schedule of Exceptions, there is no loan,
lease or other continuing transaction between the Company, any Related Party
and/or any Affiliate.

                                      -7-
<PAGE>   13

         3.12 LITIGATION.

         There is neither pending nor, to the Company's knowledge and belief,
threatened any action, suit, proceeding or claim, whether or not purportedly on
behalf of the Company, to which the Company or any employee of the Company, in
such capacity, is or may be named as a party or to which the Company's property
is or may be subject. To the best of the Company's knowledge and belief, there
is no basis for any such action, suit, proceeding or claim, in which an
unfavorable outcome, ruling or finding in any such matter or for all such
matters, taken as a whole, might have a material adverse effect on the
condition, financial or otherwise, operations or prospects of the Company or on
the Technology. The Company has no knowledge of any unasserted claim, the
assertion of which is likely and which, if asserted, will seek damages, an
injunction or other legal, equitable, monetary or nonmonetary relief which if
granted would have a material adverse effect on the condition, financial or
otherwise, operations or prospects of the Company.

         3.13 CONSENTS.

         Except as set forth in the Schedule of Exceptions, no consent, approval
or authorization of, or designation, declaration or filing with, any
governmental authority on the part of the Company, including qualification under
applicable state securities laws of the offer and sale of the Shares and of the
issuance of the Conversion Shares is required in connection with the valid
execution and delivery of this Agreement, the offer, sale or issuance of the
Shares, the conversion of the Shares into Common Stock or the issuance of the
Conversion Shares, or the consummation of any other transaction contemplated on
the Closing Date by this Agreement or any of the Financing Documents, except the
filing of the Amended and Restated Certificate with the Secretary of the State
of Delaware, which filing has been made and is effective as of the date hereof.
Any such consent, approval, authorization, declaration or filing set forth in
the Schedule of Exceptions has been obtained or made and is effective as of the
Closing Date.

         3.14 TITLE TO PROPERTIES; LIENS AND ENCUMBRANCES.

         The Company has good and marketable title to all its properties and
assets, free from all mortgages, pledges, liens, security interests, conditional
sale agreements, encumbrances or charges.

         3.15 LEASES.

         Set forth on the Schedule of Exceptions is a correct and complete list
of all leases (including, with respect to each lease, the material provisions of
such lease, including the term, the amount of rent called for and a description
of the leased property) under which the Company is a lessee, other than personal
property requiring rental payments of less than $25,000 per year. The Company
enjoys peaceful and undisturbed possession under all such leases, all of such
leases are valid and subsisting and none of them is in default in any respect,
and no event has occurred and no condition exists which with notice or the
passage of time or both would constitute such a default.

                                      -8-
<PAGE>   14

         3.16 FRANCHISES, LICENSES, TRADEMARKS, PATENTS AND OTHER RIGHTS.

             (a) All (i) franchises, permits, licenses and other similar
         authority, (ii) patents, patent applications, patent rights, service
         marks, trademarks, trademark applications, trademark rights, trade
         names, trade name rights and copyrights (whether registered or not),
         and (iii) know-how, technology and trade secrets, which are or may be
         usable now or in the future for the conduct of the Company's business
         as now conducted or as planned to be conducted are owned by the Company
         or the Company has all rights to use such technology set forth in (i),
         (ii) or (iii) above. The documents and instruments evidencing such
         ownership and rights are listed in the Schedule of Exceptions.

             (b) The Company has all franchises, permits, licenses and other
         similar authority, necessary for the conduct of its business as now
         being conducted by it and believes it can obtain any similar authority
         necessary for the conduct of its business as planned to be conducted,
         and it is not in violation, nor will the transactions contemplated by
         this Agreement cause a violation of the terms or provisions of any such
         franchise, permit, license or other similar authority.

             (c) Section 3.16(c) of the Schedule of Exceptions lists all
         patents, patent applications, patent rights, trademarks, trademark
         applications, trademark rights, trade names, trade name rights, service
         marks and copyrights (whether registered or not) owned or possessed by
         the Company (collectively, the "Listed Rights"). The Listed Rights
         comprise all the patents, patent applications, patent rights,
         trademarks, trademark applications, trademark rights, trade names,
         trade name rights, service marks and copyrights (whether registered or
         not) necessary to the conduct of the Company's business as now being
         conducted, and the Company believes that the Company can obtain any
         such rights necessary for the conduct of its business as planned to be
         conducted. The Company has and possesses the know-how, technology and
         trade secrets not included in the Listed Rights (such know-how,
         technology and trade secrets being collectively called the
         "Intellectual Property") which they believe to be necessary (i) to
         conduct the Company's business as now being conducted and (ii) with
         additional know-how, technology and trade secrets which the Company
         plans to develop, for the conduct of its business as planned to be
         conducted. (The Listed Rights and the Intellectual Property
         collectively constitute the "Technology".) There is neither pending,
         nor, to the best of the Company's knowledge and belief, threatened, any
         claim or litigation against the Company contesting the validity or
         right to use any of the Listed Rights or any of the Intellectual
         Property, nor is the Company aware of any basis therefor, and the
         Company has not received any notice of infringement upon or conflict
         with any asserted right of others. To the best of the Company's
         knowledge and belief, no person, corporation or other entity is
         infringing or violating the Listed Rights or any of the Intellectual
         Property. Except as described in the Schedule of Exceptions, the
         Company does not have any obligation to compensate others for the use
         of any Listed Right or any Intellectual Property, nor has the Company
         granted any license or other right to use, in any manner, any of the
         Listed Rights or Intellectual Property, whether or not requiring the
         payment of royalties.

                                      -9-
<PAGE>   15

         3.17 ISSUANCE TAXES.

         All taxes imposed by any state in connection with the issuance, sale
and delivery of the Shares shall have been fully paid, and all laws imposing
such taxes shall have been fully complied with, prior to the Closing Date.

         3.18 OFFERING.

         Other than in connection with the sale of the Series C Preferred and as
set forth on the Schedule of Exceptions, within the past six (6) months, the
Company has not, either directly or through any agent, offered any of the Shares
or any security or securities similar to the Shares for sale to, or solicited
any offers to buy the Shares or any part thereof or any such similar security or
securities from, or otherwise approached or negotiated in respect thereof with,
any party or parties other than the Purchasers Each offer described on the
Schedule of Exceptions with respect to this Section 3.18 was an offer relating
to a private sale for investment, and such offers do not, individually or
collectively, affect the exemption of the offer, sale and issuance of the Shares
and the Conversion Shares from the registration requirements of the Securities
Act and all state securities laws. Although the Company filed a registration
statement on Form S-1 with the Commission in connection with a proposed initial
public offering of its Common Stock during the past six (6) months, the Company
has not solicited any offers to buy Common Stock of the Company with or without
the prospectus underlying such registration statement, and the Company may
terminate the registration statement.

         Subject in part to the truth and accuracy of the Purchasers'
representations set forth in this Agreement, the offer, sale and issuance of the
Shares and the Conversion Shares as contemplated by this Agreement are exempt
from the registration requirements of the Securities Act, and all applicable
state securities laws, and neither the Company nor anyone acting on its behalf
will take any action hereafter that would cause the loss of such exemption.

         3.19 COMPLIANCE WITH OTHER INSTRUMENTS.

         The Company is not in violation of any term of the Amended and Restated
Certificate or By-Laws. Neither the Company nor any of its property is in
violation of any term of any mortgage, indenture, contract, agreement,
instrument, judgment, decree, order, statute, rule or regulation to which the
Company or any of such property is subject, a violation of which would
materially adversely affect the Company's condition, financial or otherwise, or
operations or the Technology.

         3.20 EMPLOYEES.

             (a) No employee of the Company and no Related Party is, or is now
         expected to be, in violation of any term of any employment contract,
         patent disclosure agreement, non-competition agreement, or any other
         contract or agreement with any prior employer or any other person,
         corporation, or other entity or any restrictive covenant in such an
         agreement, or any obligation imposed by common law or otherwise,
         relating to the right of any such employee or Related Party to be
         employed by the Company because of the nature of the business conducted
         or to be conducted by the Company or relating to the use of trade
         secrets or proprietary information of others because of the nature of
         the

                                      -10-
<PAGE>   16

         business conducted or to be conducted by the Company, and the
         continued employment of the Company's employees and/or Related Parties
         does not subject the Company or the Purchasers to any liability for
         any such violation.

             (b) Each of the Company's present or former employees who has had
         access to proprietary information of the Company has executed a
         Proprietary Information and Property Agreement substantially in the
         form attached as Exhibit D hereto (each a "Proprietary Information
         Agreement"). To the best of the Company's knowledge and belief, no
         employee or former employee of the Company is, or to the best of the
         Company's knowledge and belief now is expected to be, in violation of
         the terms of the Proprietary Information Agreement entered into by such
         employee or former employee, or of any other obligation relating to the
         use of confidential or proprietary information of the Company. Each of
         such Proprietary Information Agreements remains in full force and
         effect.

             (c) Section 3.20(c) of the Schedule of Exceptions describes all
         employment agreements to which the Company is a party. Each of such
         employment agreements remains in full force and effect.

             (d) To the best knowledge of the Company, no officer or key
         employee of the Company has any present intent of terminating such
         officer's or key employee's employment with the Company.

             (e) The Company is in material compliance with all laws regarding
         employment, wages, hours, equal opportunity, collective bargaining and
         payment of Social Security and other taxes. The Company is in material
         compliance with all applicable foreign, federal, state and local laws
         and regulations regarding occupational safety and health standards and
         has received no complaints from any foreign, federal, state or local
         agency or regulatory body alleging violations of any such laws and
         regulations.

             (f) Except as set forth on the Schedule of Exceptions hereto, the
         employment of all persons and officers employed by the Company is
         terminable at will without any penalty or severance obligation of any
         kind on the part of the employer. All sums due for employee
         compensation and benefits and all vacation time owing to any employees
         of the Company have been duly and adequately accrued on the accounting
         records of the Company. All employees of the Company are either United
         States citizens or resident aliens specifically authorized to engage in
         employment in the United States in accordance with all applicable laws.

             (g) The Company has not experienced, nor does it know of any basis
         for, any strike, labor troubles or strife, work stoppages or slow
         downs. The Company has not experienced, nor does it know or have
         reasonable grounds to know of, any union or collective bargaining
         organization efforts or negotiations, or requests for negotiations, for
         any representation or any labor contract relating to any employees of
         the Company.

                                      -11-
<PAGE>   17

         3.21 BUSINESS OF THE COMPANY.

         The Company has no knowledge and does not believe that (i) there is
pending or threatened any claim or litigation against or affecting the Company
contesting its right to manufacture, sell or use any product or service
presently manufactured, sold or used or planned to be manufactured, sold or used
by the Company, (ii) there exists, or there is pending or planned, any statute,
rule, law, regulation, standard or code which would materially adversely affect
the condition, financial or otherwise, or the operations of the Company, or
(iii) there is any other existing fact which in the future could reasonably be
expected to materially adversely affect the Company's condition, financial or
otherwise, or operations. The Company currently intends to engage in the
business of the general type described in the Memorandum (the "Business").

         3.22 USE OF PROCEEDS.

         The Company will use the proceeds of the offering as set forth in the
Memorandum. The Company will not use the proceeds of the offering for any other
purpose. None of the transactions contemplated in this Agreement (including,
without limitation, the use of the proceeds from the sale of the Shares or the
Conversion Shares) will violate or result in a violation of Section 7 of the
Exchange Act, including, without limitation, Regulations G, T and X of the Board
of Governors of the Federal Reserve System, 12 C.F.R., Chapter 11. The Company
does not own or intend to carry or purchase any "margin security" within the
meaning of said Regulation G, including margin securities originally issued by
it. None of the proceeds from the sale of the Shares or the Conversion Shares
will be used to purchase or carry (or refinance any borrowing the proceeds of
which were used to purchase or carry) any "security" within the meaning of the
Securities Act.

         3.23 APPLICABILITY OF, AND COMPLIANCE WITH, OTHER LAWS.

             (a) The Company does not have or make contributions to any pension
         plans, defined benefit plans or defined contribution plans for its
         employees which are subject to the Employee Retirement Income Security
         Act of 1974, as amended ("ERISA"). With respect to such plans, if any,
         listed on the Schedule of Exceptions, the Company is in compliance with
         the applicable provisions of ERISA. The Company has not incurred any
         unremedied accumulated funding deficiency within the meaning of ERISA
         or any unsatisfied liability to the Pension Benefit Guaranty
         Corporation established under ERISA in connection with any employee
         pension plan established or maintained by the Company under the
         jurisdiction of ERISA. No Reportable Event or Prohibited Transaction
         (as defined in Section 4043 of ERISA) has occurred with respect to any
         plan administered by the Company.

             (b) The Company's employment practices and policies are in full
         compliance with (i) all applicable laws of the United States and each
         applicable jurisdiction relating to equal employment opportunity, and
         any rules, regulations, administrative orders and Executive Orders
         relating thereto; and (ii) the applicable terms, relating to equal
         opportunity, of any contract, agreement or grant the Company has with,
         from or relating (by way of subcontract or otherwise) to any other
         contract, agreement or grant of, any

                                      -12-
<PAGE>   18

         federal or state governmental unit, except, with respect to each of
         clause (i) and (ii), for any failures to be in compliance which would
         not have a material adverse effect on the condition, financial or
         otherwise, or the operations of the Company. The Company has not been
         the subject of any charge of unfair labor practices, employment
         discrimination made against it by the National Labor Relations Board,
         the United States Equal Employment Opportunity Commission or any other
         governmental unit, nor is it presently subject to any formal or
         informal proceedings before, or investigations by, such Commission or
         governmental unit. To the Company's knowledge, neither the Company, nor
         any employees of the Company, nor any Related Parties are presently
         under investigation by any commission or governmental agency for
         purposes of security clearance or otherwise.

             (c) Neither the Company nor any property owned or occupied by the
         Company is in violation of any Federal or State Environmental Law of
         any sort or in violation of any Federal or State "OSHA" law, except for
         such violations which, either individually or in the aggregate, would
         not have a material adverse effect on the condition, financial or
         otherwise, or the operations of the Company. The Schedule of Exceptions
         contains a list of all environmental permits held by the Company.
         Without limiting the generality of the foregoing:

             (i)    ENVIRONMENTAL PERMITS. The Company has obtained all
                    environmental, health and safety permits and governmental
                    authorizations (collectively, the "Environmental Permits")
                    necessary for the construction of their facilities or the
                    conduct of their operations, and all such Environmental
                    Permits are in good standing and the Company is in
                    compliance with all terms and conditions of the
                    Environmental Permits, except for such failures to be in
                    compliance which, either individually or in the aggregate,
                    would not have a material adverse effect on the condition,
                    financial or otherwise, or the operations of the Company. No
                    notice to, approval of or authorization or consent from any
                    governmental or regulatory authority is necessary for the
                    transfer of or modification to any Environmental Permit and
                    the consummation of the transactions contemplated by this
                    Agreement will not violate, alter, impair or invalidate, in
                    any respect, any Environmental Permit.

             (ii)   ENVIRONMENTAL CLAIMS. There is no Environmental Claim
                    pending, threatened or, to the best of the Company's
                    knowledge, likely to be threatened (i) against the Company,
                    (ii) against any person or entity whose liability for any
                    Environmental Claim the Company has or may have retained or
                    assumed either contractually or by operation of law, or
                    (iii) against any real or personal property or operations
                    which are now or have been previously owned, leased,
                    operated or managed, in whole or in part, by the Company.

             (iii)  RELEASES. There have been no Releases of any Hazardous
                    Materials that would be likely to form the basis of any
                    Environmental Claim against the Company or against any
                    person or entity whose liability for any Environmental Claim
                    the Company has or may have retained or assumed either
                    contractually or by operation of law.

                                      -13-
<PAGE>   19

             (iv)   ENVIRONMENTAL ASSESSMENTS. There are no environmental
                    reports, audits, investigations or assessments of the
                    Company, or any real or personal property or operations
                    which are now or have been previously owned, leased,
                    operated or managed, in whole or in part, by the Company.

             (v)    ENVIRONMENTAL DISCLOSURE. To the best knowledge of the
                    Company upon diligent review, the Company has disclosed to
                    the Purchasers all relevant facts with respect to potential
                    or actual environmental liabilities of the Company.

             (d) The Company has not violated any law or any governmental law,
         rule, order or regulation or requirement which violation through the
         date hereof has had or would reasonably be expected to have a material
         adverse effect upon the financial condition, operating results, assets,
         operations or business prospects of the Company or the Technology and
         the Company has not received notice of any such violation.

         3.24 INDEBTEDNESS.

         The Schedule of Exceptions contains a true and complete list, including
the names of the parties thereto and summary description of the terms thereof,
of all debt instruments, loan agreements, indentures or guaranties, whether
written or oral, other than obligations which may be terminated without payment
or penalty by the Company upon not more than thirty (30) days' notice and
obligations which are otherwise disclosed in this Agreement. All of the
aforesaid items were entered into in the ordinary course of business, are valid
and binding, in full force and effect and are enforceable in accordance with
their respective terms and there exists no breach or default, or any event which
with notice or lapse of time or both, would constitute a breach or default by
any party thereto, except for such breaches or defaults which, either
individually or in the aggregate, would not have a material adverse effect on
the condition, financial or otherwise, or the operations of the Company. All of
the Company's Indebtedness is disclosed on the Balance Sheet.

         3.25 CONDITION OF PROPERTIES.

         All facilities, machinery, equipment, fixtures, vehicles and other
properties owned, leased or used by the Company are in good operating condition
and repair, are reasonably fit and usable for the purposes for which they are
being used, are adequate and sufficient for the Company's business and conform
in all material respects with all applicable ordinances, regulations and laws.

         3.26 INSURANCE COVERAGE.

         The Company has not been refused any insurance coverage sought or
applied for, and the Company has no reason to believe that it will be unable to
obtain one or more policies of insurance issued by insurers of recognized
responsibility, insuring the Company and its properties and business against
such losses and risks, and in such amounts, as are customary in

                                      -14-
<PAGE>   20

the case of corporations of established reputation engaged in the same or
similar business and similarly situated. The Schedule of Exceptions sets forth
each insurance policy (specifying the insurer, the amount of coverage, the type
of insurance, the policy number, the expiration date, the annual premium, loss
payees and any pending claims thereunder) maintained by the Company relating to
its respective properties, assets, business or personnel (which policies include
directors' and officers' liability insurance in the amount of at least
$1,000,000), and each inspection report or recommendation, if any, during the
last three years as to the conditions of the properties and assets owned,
leased, occupied or operated by it or the conduct of its business. The Company
is not in default with respect to any provision contained in any insurance
policy, and the Company has not failed to give any notice or present any
presently existing claims under any insurance policy in due and timely fashion,
except for such defaults or failures to give notice as would not result in
termination or denial of coverage under such policy.

         3.27 REGISTRATION RIGHTS.

         Other than under this Agreement or as listed in the Schedule of
Exceptions or described in the Memorandum, the Company has not agreed to
register under the Securities Act any of its authorized or outstanding
securities.

         3.28 [INTENTIONALLY OMITTED]

         3.29 ILLEGAL OR UNAUTHORIZED PAYMENTS; POLITICAL CONTRIBUTIONS.

         Neither the Company, nor, to the best knowledge and belief of the
Company, any of its respective officers, directors, employees, agents or other
representatives of the Company or any other business entity or enterprise with
which the Company is or has been affiliated or associated, has, directly or
indirectly, made or authorized any payment, contribution or gift of money,
property, or services, whether or not in contravention of applicable law, (a) as
a kickback or bribe to any person or (b) to any political organization, or the
holder of or any aspirant to any elective or appointive public office except for
personal political contributions not involving the direct or indirect use of
funds of the Company.

         3.30 QUALIFIED SMALL BUSINESS STOCK.

         The Company qualifies as a "Qualified Small Business" within the
meaning of Section 1202(d) of Internal Revenue Code of 1986, as amended (the
"Code"). Upon issuance, the Shares will qualify as "qualified small business
stock" within the meaning of Section 1202 of the Code. Without limiting the
generality of the foregoing: (i) the Company is a domestic C corporation, (ii)
the Company has not made any purchases of its own stock described in Code
Section 1202(c)(3)(B), and (iii) the Company's (or any predecessor's) aggregate
gross assets, as defined by Code Section 1202(d)(2), at no time between August
10, 1993 and through the Closing have exceeded or will exceed $50,000,000,
taking into account the assets of any corporation required to be aggregated with
the Company in accordance with Code Section 1202(d)(3).

                                      -15-
<PAGE>   21

         3.31 EFFECTIVENESS OF MERGER.

         The merger of BioDx, Inc., a Pennsylvania corporation and the
predecessor-in-interest to the Company ("BioDx"), with and into the Company (the
"Reincorporation Merger") was duly and validly authorized by all requisite
corporate action and has been validly effected in accordance with applicable
law. The Company has succeeded to all of BioDx's rights and obligations pursuant
to the provisions of applicable law as a result of the Reincorporation Merger.
Without limiting the generality of the foregoing, the Company has succeeded to
all of BioDx's rights as against third parties under the contracts to which
BioDx was a party at the time of the Reincorporation Merger, and the
Reincorporation Merger has not, and will not, with or without notice or the
passage of time or both, result in any violation of, conflict with, breach any
terms of, constitute a default under, or give any third party any right to
terminate or modify, any such contract.

         3.32 DISCLOSURE.

         This Agreement, the Schedule of Exceptions, the Balance Sheet, the
Financial Statements, the factual statements contained in the Memorandum, and
any other written statement furnished to the Purchasers or their counsel in
connection with the offer and sale of the Shares, taken as a whole, do not
contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements contained therein or herein not
misleading in the light of the circumstances under which they were made. There
is no fact which the Company has not disclosed to the Purchasers in writing that
materially adversely affects or, so far as the Company can now reasonably
foresee, will materially adversely affect the properties, business, prospects,
profits or condition (financial or otherwise) of the Company or the ability of
the Company to perform this Agreement and the Financing Documents or the other
actions contemplated hereby. The forward-looking matters furnished to the
Purchasers (including those set forth in the Memorandum) were prepared on the
basis of the Company's best estimates, which include certain assumptions. The
Company does not have any reason to believe that any assumptions or statements
of opinion contained in such forward-looking matters are unreasonable or false.

                                   SECTION 4

                  REPRESENTATIONS AND WARRANTIES OF PURCHASERS

         4.1 REPRESENTATION AND WARRANTIES OF THE PURCHASERS.

         Each of the Purchasers represents and warrants to the Company, as to
itself only, as follows:

             (a) AUTHORIZATION. It has full power and authority to enter into
         this Agreement, the Financing Documents and all other documents and
         instruments executed by it in connection with the transactions
         contemplated hereby and thereby, and each such agreement, document or
         instrument constitutes its valid and legally binding obligation,
         enforceable against it in accordance with its terms, subject to
         applicable bankruptcy, insolvency, reorganization and moratorium laws
         and other laws of general application affecting enforcement of
         creditors' rights generally.

                                      -16-
<PAGE>   22

             (b) QUALIFIED INSTITUTIONAL BUYER. It is a "Qualified Institutional
         Buyer" within the meaning of Commission Rule 144A, as presently in
         effect.

             (c) EXPERIENCE. It is experienced in evaluating and investing in
         companies such as the Company.

             (d) INVESTMENT. It is acquiring the Shares for investment for its
         own account and not with the view to, or for resale in connection with,
         any distribution thereof. It understands that the Shares and the
         Conversion Shares have not been registered under the Securities Act by
         reason of an exemption from the registration provisions of the
         Securities Act which depends upon, among other things, the bona fide
         nature of its investment intent as expressed herein.

             (e) RULE 144. It understands that the Shares it is purchasing are
         characterized as "restricted securities" under the federal securities
         laws inasmuch as they are being acquired from the Company in a
         transaction not involving a public offering and that under such laws
         and applicable regulations such securities may be resold without
         registration under the Securities Act only in certain limited
         circumstances. It acknowledges that the Shares and the Conversion
         Shares must be held indefinitely unless they are subsequently
         registered under the Securities Act or an exemption from such
         registration is available. It has been advised or is aware of the
         provisions of Rule 144 promulgated under the Securities Act, which
         permits limited resale of shares purchased in a private placement
         subject to the satisfaction of certain conditions (which conditions
         cannot presently be satisfied). The foregoing, however, does not limit
         or modify the representations and warranties of the Company in Section
         3 of this Agreement or the right of Purchasers to rely thereon.

             (f) ACCESS TO DATA. It has had an opportunity to discuss the
         Company's business, management and financial affairs with the Company's
         management, and it has been furnished with copies of documents which it
         has requested.

             (g) NO RELIANCE ON CERTAIN TYPES OF ADVICE. It is not relying on
         the Company for advice with respect to tax considerations, the
         suitability of his, her or its investment in the Company or legal or
         economic considerations.

             (h) NO REVIEW OF REGISTRATION STATEMENT. It has not seen, reviewed
         or relied upon the registration statement filed under the Securities
         Act by the Company on March 3, 2000, or amendment no. 1 to such
         registration statement, with respect to its proposed initial public
         offering.

             (i) MARKETABILITY. It understands that the Company is closely held
         and that there is no public market for resale of the Shares. It
         understands that it is possible that a market for the Shares will not
         ever develop. As a consequence, it understands that it may not be able
         to liquidate its investment in the Shares, even in the event of an
         emergency. It also understands that, for the foregoing reasons, the
         Shares may not be readily accepted as collateral for a loan.

                                      -17-
<PAGE>   23

             (j) ADDRESSES. The address set forth in Exhibit A attached hereto
         is the Purchaser's true and correct residence and/or principal place of
         business as of the date hereof.

                                   SECTION 5

                       CONDITIONS TO CLOSING OF PURCHASERS

         The obligation of the Purchasers to purchase the Shares to be purchased
by them at the Closing is subject to the fulfillment to their satisfaction on or
prior to the Closing Date of each of the following conditions:

         5.1 REPRESENTATIONS AND WARRANTIES CORRECT.

         The representations and warranties made by the Company in Section 3
hereof shall be true and correct in all respects when made, and shall be true
and correct in all respects on the Closing Date and with respect thereto, after
giving effect to the sale and issuance of the Shares at the Closing.

         5.2 PERFORMANCE.

         All covenants, agreements and conditions contained in this Agreement
(including those in Section 2.1) to be performed or complied with by the Company
on or prior to the Closing Date shall have been so performed or complied with in
all material respects.

         5.3 COMPLIANCE CERTIFICATE.

         The Company shall have executed and delivered to the Purchasers a
certificate of the President of the Company, dated the Closing Date, certifying
to the fulfillment of the conditions specified in Sections 5.1 and 5.2 of this
Agreement and such other matters as the Purchasers may reasonably request.

         5.4 OPINION OF COMPANY'S COUNSEL.

         The Purchasers shall have received an opinion of counsel from Buchanan
Ingersoll Professional Corporation, special counsel to the Company, and a
supplementary opinion from Metz, Schermer & Lewis L.L.C., counsel to the
Company, addressed to them, dated the Closing Date, to the effect and in
substantially the form set forth in Exhibit E.

         5.5 GOOD STANDING CERTIFICATES.

         The Company shall have delivered to the Purchasers a certificate of
recent date from the Secretary of State of the State of Delaware with respect to
the Company's due incorporation, good standing, legal corporate existence, due
authorization to conduct business and the payment

                                      -18-
<PAGE>   24

of all franchise taxes, and, certificates from the Secretary of State in each
jurisdiction in which the Company is required to be qualified to do business
with respect to the Company's good standing and due authorization to conduct
business therein and payment of all qualification fees.

         5.6 LEGAL INVESTMENT.

         At the time of the Closing, the purchase of the Shares to be purchased
by the Purchasers hereunder shall be legally permitted by all laws and
regulations to which it and the Company are subject.

         5.7 QUALIFICATIONS.

         All authorizations, approvals, or permits of any governmental authority
or regulatory body that are required in connection with the lawful issuance and
sale of the Shares pursuant to this Agreement, the conversion of the Shares into
Common Stock and the issuance of such Common Stock upon such conversion shall
have been duly obtained and shall be effective on and as of the Closing Date,
including, if necessary, permits from applicable state securities authorities,
qualifying the offer and sale of the Shares and the Conversion Shares.

         5.8 FILING OF AMENDED AND RESTATED CERTIFICATE.

         The Amended and Restated Certificate shall have been filed with the
Secretary of the State of Delaware, duly amending the Certificate of
Incorporation of the Company.

         5.9 PROCEEDINGS AND DOCUMENTS.

         All corporate and other proceedings in connection with the transactions
contemplated hereby and all documents and instruments incident to such
transactions shall be reasonably satisfactory in substance and form to the
Purchasers and special counsel for the Purchasers.

         5.10 PROVISIONS OF BY-LAWS.

         The By-Laws of the Company shall provide that (a) a majority of the
Directors constituting the Board shall constitute a quorum for the transaction
of any business at a meeting of the Board, and (b) the Board of Directors shall
meet at least four (4) times per year.

         5.11 SHAREHOLDERS' AGREEMENT.

         The Company, the Purchasers, the holders of a majority of the Company's
shares of Common Stock (the "Common Shareholders"), the holders of the Company's
shares of Series A Preferred (the "Series A Preferred Shareholders"), the
holders of the Company's shares of Series B Preferred (the "Series B Preferred
Shareholders") and the other parties named therein shall have executed and
delivered an Amended and Restated Shareholders' Agreement (as further amended
from time to time, the "Shareholders' Agreement") to the effect and in
substantially the form set forth in Exhibit F hereto.

                                      -19-
<PAGE>   25

         5.12 MANAGEMENT RIGHTS LETTERS.

         The Company shall have executed and delivered to each Purchaser who
requests the same a Management Rights Letter (collectively, the "Management
Rights Letters") to the effect and in substantially the form set forth in
Exhibit G hereto.

         5.13 BOARD OF DIRECTORS; INDEMNIFICATION.

         Alan Mendelson, Dr. Arnold Oronsky, Dr. Lansing Taylor, John Boles,
Barclay A. Phillips and James Sharp shall have been elected to the Board of
Directors, and the Company shall have agreed and obligated itself, either in the
Amended and Restated Certificate or in the Company's Bylaws, to indemnify its
officers and directors to the fullest extent permitted by Delaware law.

         5.14 APPROVAL OF COMPANY BOARD OF DIRECTORS AND STOCKHOLDERS.

         The Company shall have delivered to the Purchaser certified copies of
the resolutions of the Common Shareholders, Series A Preferred Shareholders and
Series B Preferred Shareholders and the Company's Board of Directors approving
the transactions contemplated by this Agreement.

                                   SECTION 6

                        CONDITIONS TO CLOSING OF COMPANY

         The Company's obligation to sell the Shares to be purchased at the
Closing is subject to the fulfillment to its satisfaction on or prior to the
Closing Date of each of the following conditions:

         6.1 REPRESENTATIONS.

         The representations made by the Purchasers pursuant to Section 4.1
hereof shall be true and correct when made and shall be true and correct on the
Closing Date.

         6.2 PERFORMANCE.

         All covenants, agreements and conditions contained in this Agreement to
be performed or complied with by each and every Purchaser on or prior to the
Closing Date shall have been so performed or complied with in all material
respects.

         6.3 LEGAL INVESTMENT.

         At the time of the Closing, the conditions set forth in Sections 5.6
and 5.7 shall have occurred and the purchase of the Shares to be purchased by
the Purchasers hereunder shall be legally permitted by all laws and regulations
to which the Purchasers and the Company are subject.

                                      -20-
<PAGE>   26

         6.4 AMENDED AND RESTATED CERTIFICATE.

         The Amended and Restated Certificate shall have been accepted for
filing by the Secretary of State of the State of Delaware.

         6.5 SHAREHOLDERS' AGREEMENT.

         The Company, the Purchasers, the Common Shareholders, the Series A
Preferred Shareholders, the Series B Preferred Shareholders and the other
parties named therein shall have executed and delivered the Shareholders'
Agreement.

         6.6 SECOND AMENDED AND RESTATED CERTIFICATE AND AMENDED AND RESTATED
BYLAWS.

         The Company shall have received, in form and substance acceptable to
the Company, the consent of those Shareholders necessary to approve, adopt and
authorize the filing of the Amended and Restated Certificate of Incorporation
and the Amended and Restated Bylaws of the Company in the forms attached hereto
as Exhibits 6.6(a) and 6.6(b) respectively, upon the closing of a firm
commitment underwritten public offering of the Company's Common Stock.

                                   SECTION 7

                            COVENANTS OF THE COMPANY

         The Company hereby covenants and agrees, so long as any Shares or any
Conversion Shares remain outstanding, or as otherwise provided in this Article
7:

         7.1 BASIC FINANCIAL INFORMATION.

         The Company will furnish the following reports to each Purchaser who
holds at least 200,000 Shares or Conversion Shares:

             (a) As soon as practicable after the end of each fiscal year of the
         Company, and in any event within ninety (90) days thereafter, a
         consolidated (and consolidating) balance sheet of the Company and its
         Subsidiaries, if any, as at the end of such fiscal year, and
         consolidated (and consolidating) statements of operations, accumulated
         earnings and cash flows of the Company and its Subsidiaries, if any,
         for such year, prepared in accordance with generally accepted
         accounting principles consistently applied and setting forth in each
         case in comparative form the figures for the previous fiscal year, all
         in reasonable detail audited (without scope limitations imposed by the
         Company) and certified by independent public accountants of recognized
         national standing selected by the Company and satisfactory to the
         Purchasers.

             (b) As soon as practicable after the end of the first, second and
         third quarterly accounting periods in each fiscal year of the Company,
         and in any event within forty-five (45) days thereafter, a consolidated

                                      -21-
<PAGE>   27

         (and consolidating) balance sheet of the Company and its Subsidiaries,
         if any, as of the end of each such quarterly period, and consolidated
         (and consolidating) statements of operations, accumulated earnings and
         cash flows of the Company and its Subsidiaries, if any, for such period
         and for the current fiscal year to date, prepared in accordance with
         generally accepted accounting principles consistently applied and
         setting forth in comparative form the figures for the corresponding
         periods of the previous fiscal year, subject to changes resulting from
         year-end audit adjustments, and setting forth any events which could
         reasonably be expected to have an adverse effect upon the Company's or
         any Subsidiary's finances or the results of its operations, all in
         reasonable detail and certified by the principal financial or
         accounting officer of the Company.

             (c) As soon as practicable after the end of each fiscal month and
         in any event within thirty (30) days thereafter, a consolidated balance
         sheet of the Company and its Subsidiaries, if any, as at the end of
         such month, and consolidated statements of operations, accumulated
         earnings and cash flows of the Company and its Subsidiaries, if any,
         for each month, prepared in accordance with generally accepted
         accounting principals consistently applied, together with comparison of
         such statements to the Annual Plan then in effect and to the financial
         statements for the comparable period in the prior fiscal year, and
         certified, subject to changes resulting from year-end audit
         adjustments, by the principal financial or accounting officer of the
         Company;

             (d) Each set of financial statements delivered to the Purchasers
         pursuant to this Section 7.1 will be accompanied by a certificate of
         the Chief Financial Officer of the Company setting forth:

             (i)    Covenant Compliance - any information required in order to
                    establish whether the Company and its Subsidiaries were in
                    compliance with the requirements of this Section 7 during
                    the period covered by the income statement then being
                    furnished; and

             (ii)   Event of Default - that the signers have reviewed the
                    relevant terms of this Agreement and have made, or caused to
                    be made, under their supervision, a review of the
                    transactions and conditions of the Company and its
                    Subsidiaries, if any, from the beginning of the accounting
                    period covered by the income statements being delivered
                    therewith to the date of the certificate and that such
                    review has not disclosed the existence during such period of
                    any condition or event which constitutes a breach or default
                    under this Agreement, the Amended and Restated Certificate
                    or any of the Financing Documents or, if any such condition
                    or event existed or exists, specifying the nature and period
                    of existence thereof and what action the Company has taken
                    or proposes to take with respect thereto.

             (e) As soon as available (but in any event thirty (30) days or more
         before the commencement of each fiscal year) the Company's budget and
         its operating plan for such fiscal year (the "Annual Plan") as approved
         by the Board indicating, among other things, quarterly income
         statements, balance sheets and cash flow statements for the next fiscal
         year, plans for incurring indebtedness and projections regarding other
         sources of funds; any material changes in such financial plan shall be
         submitted as promptly as practicable after such changes have been
         approved by the Board.

                                      -22-
<PAGE>   28

         7.2 ADDITIONAL INFORMATION AND RIGHTS.

             (a) The Company, for any Purchaser who (together with members of
         such Purchaser's Group) holds 200,000 or more Shares (such amount to be
         adjusted for stock splits, combinations and other similar events
         affecting the Series C Preferred), will Permit such Purchaser (or its
         designated representative), at its own expense, to visit and inspect
         any of the properties of the Company, including its books of account,
         and to discuss its affairs, finances and accounts with the Company's
         officers and its independent public accountants, all at such reasonable
         times and as often as any such party may reasonably request. Any such
         Purchaser shall give not less than two (2) business days' notice of any
         such visitation or inspection and such visitation or inspection shall
         be performed in a reasonable manner and with due regard to the
         proprietary and confidential nature of any information received by it.

             (b) The Company's obligations under Section 7.1 and this Section
         7.2 shall terminate at such time as a Qualified Public Offering has
         closed and any agreement of the type described in Section 9.15 hereof
         is no longer in effect with respect to any Purchaser or when the
         Company first becomes subject to the periodic reporting requirements of
         the Exchange Act, whichever event shall first occur.

         7.3 PROMPT PAYMENT OF TAXES, ETC.

         The Company will promptly pay and discharge, or cause to be paid and
discharged, when due and payable, all lawful taxes, assessments and governmental
charges or levies imposed upon the income, profits, property or business of the
Company, provided, however, that any such tax, assessment, charge or levy need
not be paid if the validity thereof shall at the time be contested in good faith
by appropriate proceedings, and provided, further, that unless otherwise
approved by the Board, the Company will pay all such taxes, assessments, charges
or levies forthwith upon the commencement of proceedings to foreclose any lien
which may have attached as security therefor. Unless otherwise approved by the
Board, the Company will promptly pay or cause to be paid when due, or in
conformance with customary trade terms, all other obligations incident to its
operations.

         7.4 MAINTENANCE OF PROPERTIES AND LEASES.

         The Company will keep its properties in good repair, working order and
condition, reasonable wear and tear excepted, and from time to time make all
needful and proper, or legally required, repairs, renewals, replacements,
additions and improvements thereto; and the Company will at all times comply
with each provision of all leases to which it is a party or under which it
occupies, or has possession of, property if the breach of such provision might
have a material adverse effect on the condition, financial or otherwise, or
operations of the Company.

                                      -23-
<PAGE>   29

         7.5 INSURANCE.

         The Company will keep its assets which are of an insurable character
insured by financially sound and reputable insurers against loss or damage by
fire, extended coverage and explosion in amounts sufficient to prevent the
Company from becoming a co-insurer and not in any event less than 80% of the
insurable value of the property insured. The Company will maintain for itself,
with financially sound and reputable insurers, insurance against other hazards
and risks and liability to persons and property to the extent and in the manner
customary for companies in similar businesses similarly situated. After the
Closing Date, the Company will continue to maintain directors' and officers'
liability insurance in the amount of at least $1,000,000, if such coverage is
available at commercially reasonable rates, at all times after the Closing Date.
After the Closing Date, the Company will continue to maintain insurance on the
life of Dr. Lansing Taylor in the amount of $2,000,000, naming the Company as
the owner and beneficiary thereof, at all times after the Closing Date. The
Company shall give immediate written notice to insurers of loss or damage to the
property and shall promptly file proof of loss with insurers.

         7.6 ACCOUNTS AND RECORDS.

         The Company will keep true records and books of account in which full,
true and correct entries will be made of all dealings or transactions in
relation to its business and affairs in accordance with generally accepted
accounting principles applied on a consistent basis.

         7.7 COMPLIANCE WITH REQUIREMENTS OF GOVERNMENTAL AUTHORITIES.

         The Company shall duly observe and conform to all valid requirements of
governmental authorities relating to the conduct of its businesses or to its
property or assets. Without limiting the generality of the foregoing, the
Company will:

             (a) Comply with all minimum funding requirements applicable to any
         pension plans, employee benefit plans or employee contribution plans
         which are subject to ERISA or to the Code, and comply in all other
         respects with the provisions of ERISA and the provisions of the Code
         applicable to such plans;

             (b) Comply with all applicable material laws of the United States
         and of each applicable jurisdiction relating to equal employment
         opportunity, any rules, regulations, administrative orders and
         Executive Orders relating thereto and the applicable material terms,
         relating to equal employment opportunity, of any contract, agreement or
         grant the Company has with, from or relating (by way of subcontract or
         otherwise) to any other contract, agreement or grant of, any federal or
         state governmental unit; and keep all records required to be kept, and
         file all reports, affirmative action plans and forms required to be
         filed, pursuant to any such applicable law or the terms of any such
         government contract; and

             (c) So conduct its business that neither the Company nor any
         property owned or occupied by the Company is in violation of any
         Federal or State Environmental Law of any sort or in violation of any
         Federal or State "OSHA" Law.

                                      -24-
<PAGE>   30

         7.8 MAINTENANCE OF CORPORATE EXISTENCE, ETC.

         The Company shall maintain in full force and effect its corporate
existence, rights, government approvals and franchises and all licenses and
other rights to use patents, processes, licenses, trademarks, trade names or
copyrights owned or possessed by it and deemed by the Company to be necessary to
the conduct of its business.

         7.9 AVAILABILITY OF COMMON STOCK FOR CONVERSION OF SERIES C PREFERRED.

         The Company will, from time to time, in accordance with the laws of the
state of its incorporation, increase the authorized amount of Common Stock if at
any time the number of shares of Common Stock remaining unissued and available
for issuance shall be insufficient to permit the payment of dividends on the
Series C Preferred for a period of five (5) years in the form of Common Stock
and the conversion to Common Stock of all the then outstanding Shares.

         7.10 PROPRIETARY INFORMATION AGREEMENT AND KEY EMPLOYEE AGREEMENT.

             (a) The Company and each person hereafter employed by it with
         access to confidential information will enter into a Proprietary
         Information Agreement to the effect and in substantially the form of
         Exhibit D hereto or as otherwise approved by the Board.

             (b) The Company will require all persons now or hereafter employed
         by the Company and designated as a "key person" by the Company's Board
         of Directors to execute an Employment Agreement in favor of the Company
         to the effect and in substantially the form of Exhibit H hereto or as
         otherwise approved by the Board, as a condition precedent to the
         employment of such individuals.

             (c) The Company will cause all technological developments,
         inventions, discoveries or improvements made by employees of the
         Company to be fully documented in engineering notebooks in accordance
         with the prevailing industrial professional standards, and where
         possible and appropriate, cause all employees to file and prosecute
         United States and foreign patent applications relating to and
         protecting such developments.

         7.11 QUALIFIED SMALL BUSINESS STOCK.

         So long as any Shares or Conversion Shares are held by any Purchaser or
any transferee who is not a corporation, the Company will use its best efforts
to cause the Shares and, upon issuance, the Conversion Shares to qualify as
qualified small business stock within the meaning of Section 1202 of the Code,
provided that this Section 7.11 shall not require the Company to limit its gross
assets (within the meanings of Code Section 1202(d)(3)) to an amount that does
not exceed $50,000,000.

         7.12 USE OF PROCEEDS.

         The Company will use the proceeds from the sale of the Shares and the
Conversion Shares for the purposes described in Section 3.22 hereof.

                                      -25-
<PAGE>   31

         7.13 SECURITIES LAW FILINGS.

         The Company will make any filings necessary to perfect in a timely
fashion exemptions from (i) the registration and prospectus delivery
requirements of the Securities Act and (ii) the registration or qualification
requirements of all applicable securities or blue sky laws of any state or other
jurisdiction, for the issuance of the Shares and the Conversion Shares to the
Purchasers.

         7.14 COMPLIANCE BY SUBSIDIARIES.

         The Company will cause any Subsidiary which it may now have and/or
which it may organize or acquire in the future and which the Company controls to
comply fully with all the terms and provisions of Sections 7.3, 7.4, 7.6,
7.7,and 7.10 to the same extent as if such Subsidiary or Subsidiaries were the
"Company" herein.

                                   SECTION 8

                               NEGATIVE COVENANTS

         The Company agrees that, so long as any Shares remain outstanding, the
Company (and each of its Subsidiaries, if any, unless the context otherwise
requires) will not do any of the following after the Closing Date without the
approval of a majority of the Board the approval of the holders of a majority of
the Series C Preferred outstanding):

         8.1 CHANGES IN TYPE OF BUSINESS.

         Make any substantial change in the character of its business.

         8.2 CONFLICTING AGREEMENTS.

         Become subject to, or permit any of its Subsidiaries which it controls
to become subject to, any agreement or instrument, which by its terms would
(under any circumstances) restrict the Company's right to perform any of its
obligations pursuant to the terms of this Agreement or any agreement
contemplated hereby, the Amended and Restated Certificate, the Financing
Documents, or the Company's By-laws (including, without limitation, all
obligations relating to payment of dividends on and making redemptions of the
Series C Preferred and conversions of the Series C Preferred).

         8.3 EMPLOYEE STOCK PLANS.

         Hereafter issue, sell, grant or award any Equity Security or any option
to acquire any Equity Security to directors, officers, employees, consultants or
advisors to the Company, except for Equity Securities which are "Reserved
Employee Shares" within the meaning of Section 3(d)(i)(5)(C) of Article III,
Part B of the Amended and Restated Certificate.

                                      -26-
<PAGE>   32

         8.4 RELATED PARTY TRANSACTIONS.

         Enter into, or permit any Subsidiary which it controls to enter into,
any transaction with any Related Party or any of its or any Subsidiary's
Affiliates, except as otherwise expressly contemplated by this Agreement or
referred to in Section 3.11 hereto.

                                   SECTION 9

                 RESTRICTIONS ON TRANSFERABILITY OF SECURITIES;
               COMPLIANCE WITH SECURITIES ACT; REGISTRATION RIGHTS

         9.1 RESTRICTIONS ON TRANSFERABILITY.

         Neither the Shares nor the Conversion Shares shall be transferable,
except upon the conditions specified in this Section 9, which conditions are
intended to insure compliance with the provisions of the Securities Act or, in
the case of Section 9.15 hereof, to assist in an orderly distribution of the
Company's securities. Each Purchaser will cause any proposed transferee of
Shares or Conversion Shares held by such Purchaser to agree to take and hold
those securities subject to the provisions and upon the conditions specified in
this Section 9.

         9.2 CERTAIN DEFINITIONS.

         As used in this Section 9, the following terms shall have the following
respective meanings:

         "RESTRICTED SECURITIES" shall mean the securities of the Company
required to bear or bearing the legend set forth in Section 9.3 hereof.

         "REGISTRABLE SECURITIES" shall mean, from time to time, (i) the
Conversion Shares, less any Conversion Shares theretofore sold to the public,
and (ii) any shares of Common Stock issued as dividends on the Shares.

         The terms "REGISTER," "REGISTERED" and "REGISTRATION" shall refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act and applicable rules and regulations
thereunder, and the effectiveness of such registration statement.

         "REGISTRATION EXPENSES" shall mean all expenses incurred by the Company
in compliance with Sections 9.5, 9.6 and 9.7 hereof, including, without
limitation, all registration and filing fees, printing expenses, fees and
disbursements of counsel for the Company, fees and expenses (not to exceed
$20,000) of one special counsel for all Holders chosen by the Holders of a
majority of the securities included in such registration, blue sky fees and
expenses, and the expense of any special audits incident to or required by any
such registration (but excluding the compensation of regular employees of the
Company, which shall be paid in any event by the Company).

         "SELLING EXPENSES" shall mean all underwriting discounts and selling
commissions applicable to the sale of Registrable Securities, and all fees and
disbursements of counsel for any Holder (other than the fees and expenses of one
special counsel for all Holders included within the definition of Registration
Expenses).

                                      -27-
<PAGE>   33

         "HOLDER" shall mean any holder of outstanding Shares, Conversion Shares
or Registrable Securities which have not been sold to the public.

         "INITIATING HOLDERS" shall mean any Purchaser (or their assignees under
Section 9.14 hereof) who in the aggregate are Holders of more than fifty percent
(50%) of the Registrable Securities, and, after any other Holder or Holders have
joined in a request by Initiating Holders, shall include such other Holder or
Holders.

         "TERMINATION DATE" shall mean, as to all Holders, the date that is five
(5) years after the closing of an Initial Public Offering, provided that as of
such date the Company is subject to and is in compliance with the periodic
reporting requirements of the Exchange Act and shares of the Common Stock are
actively traded on the Nasdaq National Market or other national securities
exchange. In addition, "Termination Date" as to a particular Holder shall mean
such date as of which (i) the Company is subject to and in compliance with the
periodic reporting requirements of the Exchange Act, (ii) shares of the Common
Stock are traded as described above, and (iii) such Holder is able, within the
ninety (90) day period immediately following such date, to transfer all of such
Holder's Registrable Securities in compliance with Rule 144 promulgated by the
Commission under the Securities Act.

         "OTHER SHAREHOLDERS" shall have the meaning set forth in Section
9.5(b).

         9.3 RESTRICTIVE LEGEND.

         Each certificate representing (i) the Shares, or (ii) the Conversion
Shares, or (iii) any other securities issued in respect of the Shares or the
Conversion Shares upon any stock split, stock dividend, recapitalization,
merger, consolidation or similar event, shall (unless otherwise permitted or
unless the securities evidenced by such certificate shall have been registered
under the Securities Act) be stamped or otherwise imprinted with a legend
substantially in the following form (in addition to any legend required under
applicable state securities laws):

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         l933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD OR
         OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
         AS TO THE SECURITIES UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES
         LAW OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER SAID
         ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

         Upon request of a holder of such a certificate, the Company shall
remove the foregoing legend from the certificate or issue to such holder a new
certificate therefor free of any transfer legend, if with such request, the
Company shall have received either the opinion referred to in Section 9.4(a)(i)
or the "no-action" letter referred to in Section 9.4(a)(ii), to the effect that
any transfer by such holder of the securities evidenced by such certificate will
not violate the Securities Act and applicable state securities laws.

                                      -28-
<PAGE>   34

         9.4 NOTICE OF PROPOSED TRANSFERS AND SECURITIES ACT COMPLIANCE.

             (a) The holder of Restricted Securities by acceptance thereof
         agrees to comply in all respects with the provisions of this Section
         9.4. Prior to any proposed transfer of any Restricted Securities (other
         than under circumstances described in Sections 9.5, 9.6 and 9.7 hereof
         and other than to a member of such holder's Group, as defined below),
         the holder thereof shall give written notice (or oral notice in the
         case of transactions in compliance with Rule 144) to the Company of
         such holder's intention to effect such transfer. Each such notice shall
         describe the manner and circumstances of the proposed transfer in
         sufficient detail, and shall be accompanied (except in transactions in
         compliance with Rule 144) by either:

             (i)    a written opinion of Buchanan Ingersoll Professional
                    Corporation or other legal counsel (including counsel for
                    the holder who also may be an employee of the holder) who
                    shall be reasonably satisfactory to the Company, addressed
                    to the Company and reasonably satisfactory in form and
                    substance to the Company's counsel, to the effect that the
                    proposed transfer of the Restricted Securities may be
                    effected without registration under the Securities Act and
                    applicable state securities laws, or

             (ii)   a "no-action" letter from the Commission to the effect that
                    the distribution of such securities without registration
                    will not result in a recommendation by the staff of the
                    Commission that action be taken with respect thereto,
                    provided, that in the case of a transfer of Restricted
                    Securities to a member of a holder's Group (as such term is
                    defined in the Shareholders' Agreement), no such opinion of
                    counsel or no-action letter shall be necessary, provided
                    that the transferee agrees in writing to be subject to the
                    restrictions on transfer of the Restricted Securities to the
                    same extent as if such transferee were originally a party
                    signatory to this Agreement. Upon receipt by the Company of
                    such notices and accompanying opinion or "no-action" letter,
                    if required, the holder of such Restricted Securities shall
                    be entitled to transfer such Restricted Securities in
                    accordance with the terms of the notice delivered by the
                    holder to the Company. Each certificate evidencing the
                    Restricted Securities transferred as above provided shall
                    bear the appropriate restrictive legend set forth in Section
                    9.3 above, except that such certificate need not bear such
                    restrictive legend if such legend is no longer required if
                    the opinion of counsel or "no-action" letter referred to
                    above is to the further effect that such legend is not
                    required in order to establish compliance with any
                    provisions of the Securities Act or applicable state
                    securities laws or if the transaction is made, to the
                    Company's reasonable satisfaction, in compliance with Rule
                    144. Notwithstanding anything to the contrary contained in
                    this Section (a), no holder of Restricted Securities will
                    transfer any of such Restricted Securities to any member of
                    such holder's Group that is not a Qualified Institutional
                    Buyer at the time of such transfer, except under the
                    circumstances described in Sections 9.5, 9.6 and 9.7 hereof
                    and except in transactions in compliance with Rule 144.

                                      -29-
<PAGE>   35

             (b) With a view to making available the benefits of certain rules
         and regulations of the Commission and applicable state securities laws
         which may permit the sale of the Restricted Securities without
         registration, the Company agrees to (i) make available to the holder of
         Restricted Securities and any proposed transferee current financial and
         other information about the Company and an adequate opportunity for the
         proposed transferee to visit the Company's offices and discuss its
         affairs with management and (ii) use its best efforts to otherwise
         cooperate with such holder and such transferee, all as may be
         reasonably required by such holder or proposed transferee.

         9.5 REQUESTED REGISTRATION.

             (a) REQUEST FOR REGISTRATION. If at any time after January 1, 2001,
         the Company shall receive from Initiating Holders a written request
         that the Company effect a registration with respect to all or a part of
         the Registrable Securities, the Company will, without limiting any
         other rights under this Section 9:

             (i)    promptly give written notice of the proposed registration to
                    all other Holders; and

             (ii)   as soon as practicable, use its diligent best efforts to
                    effect such registration (including, without limitation, the
                    execution of an undertaking to file post-effective
                    amendments, appropriate qualification under applicable blue
                    sky or other state securities laws and appropriate
                    compliance with applicable regulations issued under the
                    Securities Act) as may be so requested and as would permit
                    or facilitate the sale and distribution of all or such
                    portion of such Registrable Securities as are specified in
                    such request, together with all or such portion of the
                    Registrable Securities of any Holder or Holders joining in
                    such request as are specified in a written request given by
                    such Holder or Holders within fifteen (15) days after
                    receipt of such written notice from the Company; provided
                    that the Company shall not be obligated to effect, or to
                    take any action to effect, any such registration pursuant to
                    this 9.5:

                              (A) after the Company has effected one (1) such
                    registration pursuant to this Section 9.5(a) and such
                    registration has been declared or ordered effective and the
                    sales of such Registrable Securities shall have closed; or

                              (B) if the request for registration does not
                    request the registration of Registrable Securities with a
                    proposed public offering price of $10,000,000 or more.

         Subject to Section 9.5(a)(ii), the Company shall file a registration
statement covering the Registrable Securities so requested to be registered as
soon as practicable after receipt of the request or requests of the Initiating
Holders.

         The registration statement filed pursuant to the request of the
Initiating Holders may, subject to the provisions of Section 9.5(b) below,
include other securities of the Company which

                                      -30-
<PAGE>   36

are held by officers or directors of the Company or which are held by parties
who, by virtue of agreements with the Company, are entitled to include their
securities in any such registration.

             (b) UNDERWRITING. If the Initiating Holders intend to distribute
         the Registrable Securities covered by their request by means of an
         underwriting, they shall so advise the Company as a part of their
         request made pursuant to this Section 9.5 and the Company shall include
         such information in the written notice referred to in subsection 9.5
         (a)(a)(i) above. The right of any Holder to registration pursuant to
         this Section 9.5 shall be conditioned upon such Holder's participation
         in such underwriting and the inclusion of such Holder's Registrable
         Securities in the underwriting (unless otherwise mutually agreed by a
         majority in interest of the Initiating Holders and such Holder) to the
         extent provided herein.

             If officers or directors of the Company holding other securities of
         the Company shall request inclusion in any registration pursuant to
         this Section 9.5, or if holders of securities of the Company who are
         entitled, by contract with the Company, to have securities included in
         such registration (the "Other Shareholders") request such inclusion,
         the Initiating Holders shall, on behalf of all Holders, offer to
         include the securities of such officers, directors and Other
         Shareholders in the underwriting and may condition such offer on their
         acceptance of all applicable provisions of this Section 9. The Company
         shall (together with all Holders, officers, directors and Other
         Shareholders proposing to distribute their securities through such
         underwriting) enter into an underwriting agreement in customary form
         with the representative of the underwriter or underwriters selected for
         such underwriting by a majority in interest of the Initiating Holders
         and reasonably acceptable to the Company.

             Notwithstanding any other provision of this Section 9.5, if the
         representative of the underwriter or underwriters advises the
         Initiating Holders in writing that marketing factors make it advisable
         to impose a limitation on the number of shares to be underwritten, the
         securities of the Company (other than Registrable Securities) held by
         officers or directors of the Company and by Other Shareholders shall be
         excluded from such registration to the extent so required by such
         limitation and if a limitation of the number of shares is still
         required, the Initiating Holders shall so advise all Holders of
         Registrable Securities requesting registration, and the number of
         shares of Registrable Securities that may be included in the
         registration and underwriting on behalf of such Holders shall be
         reduced as required, such reduction to be allocated among such Holders
         in proportion, as nearly as practicable, to the respective amounts of
         Registrable Securities held by such persons at the time of filing the
         Registration Statement.

             If any Holder of Registrable Securities, officer, director or Other
         Shareholder above disapproves of the terms of the underwriting, such
         party may elect to withdraw therefrom by written notice to the Company,
         the underwriter and the Initiating Holders. The securities so withdrawn
         shall also be withdrawn from registration.

             If the underwriter has not limited the number of Registrable
         Securities or other securities to be underwritten, the Company may
         include its securities for its own account in such registration if the
         underwriter so agrees and if the number of Registrable Securities and
         other securities which would otherwise have been included in such
         registration and underwriting will not thereby be limited.

                                      -31-
<PAGE>   37

             (c) TERMINATION. The Company's obligations under this Section 9.5
         shall terminate, as to any Holder, on the first Termination Date
         applicable to such Holder.

         9.6 COMPANY REGISTRATION.

             (a) NOTICE OF REGISTRATION. If the Company shall determine to
         register any of its securities either for its own account or the
         account of a security holder or holders exercising their respective
         demand registration rights, other than a registration relating solely
         to employee benefit plans, or a registration relating solely to a
         Commission Rule 145 transaction, or a registration on any registration
         form which does not permit secondary sales, the Company will:

             (i)    promptly give to each Holder written notice thereof (which
                    shall include a list of the jurisdictions in which the
                    Company intends to attempt to qualify such securities under
                    the applicable blue sky or other state securities laws); and

             (ii)   include in such registration (and any related qualification
                    under blue sky laws or other compliance), and in any
                    underwriting involved therein, all the Registrable
                    Securities specified in a written request or requests, made
                    by any Holder within fifteen (15) days after receipt of the
                    written notice from the Company described in clause (i)
                    above, except as set forth in subsection 9.6(b) below.

             (b) UNDERWRITING. If the registration of which the Company gives
         notice is for a registered public offering involving an underwriting,
         the Company shall so advise the Holders as part of the written notice
         given pursuant to subsection 9.6(a)(i). In such event, the right of any
         Holder to registration pursuant to Section 9.6 shall be conditioned
         upon such Holder's participation in such underwriting and the inclusion
         of such Holder's Registrable Securities in the underwriting to the
         extent provided herein. All Holders proposing to distribute their
         securities through such underwriting shall (together with the Company,
         directors and officers and the Other Shareholders distributing their
         securities through such underwriting) enter into an underwriting
         agreement in customary form with the underwriter or underwriters
         selected for underwriting by the Company.

         Notwithstanding any other provision of this Section 9.6, if the
underwriter determines that marketing factors require a limitation on the number
of shares to be underwritten, the underwriter may (subject to the allocation
priority set forth below) exclude from such registration and underwriting some
or all of the Registrable Securities which would otherwise be underwritten
pursuant hereto. The Company shall so advise all holders of securities
requesting registration, and the number of shares of securities that are
entitled to be included in the registration and underwriting shall be allocated
in the following manner: (i) securities (other than Registrable Securities) held
by officers or directors of the Company and by Other Shareholders shall be
excluded from such registration to the extent so required by such

                                      -32-
<PAGE>   38

limitation, and (ii) if a limitation of the number of shares to be underwritten
is still required, the Company shall so advise all Holders of Registrable
Securities requesting registration, and the number of shares of Registrable
Securities that may be included in the registration and underwriting on behalf
of such Holders shall be reduced as required, such reduction to be allocated
among such Holders in proportion, as nearly as practicable, to the respective
amounts of Registrable Securities held by such persons at the time of filing the
registration statement.

         If any Holder of Registrable Securities or any officer, director or
Other Shareholder disapproves of the terms of any such underwriting, such party
may elect to withdraw therefrom by written notice to the Company and the
underwriter. Any Registrable Securities or other securities excluded or
withdrawn from such underwriting shall be withdrawn from such registration.

             (c) TERMINATION. The Company's obligations under this Section 9.6
         shall terminate, as to any Holder, on the first Termination Date
         applicable to such Holder.

         9.7 REGISTRATION ON FORM S-3.

         The Company shall use its reasonable best efforts to qualify for the
use of Form S-3 or any comparable or successor form or forms of the Commission;
and to that end the Company shall register (whether or not required by law to do
so) the Common Stock under the Exchange Act, in accordance with the provisions
of the Exchange Act following the effective date of the first registration, if
any, of any securities of the Company on Form S-1. After the Company has
qualified for the use of Form S-3, in addition to the rights contained in the
foregoing provisions of this Section 9, the Holders of Registrable Securities
shall have the right to request registrations on Form S-3 (by written request
stating the number of shares of Registrable Securities to be disposed of and the
intended method of disposition of such shares by such Holder or Holders),
subject only to the following:

             (i)    No request made under this Section 9.7 shall require a
                    registration statement requested therein to become effective
                    (a) prior to ninety (90) days after the effective date of a
                    registration statement filed by the Company covering a firm
                    commitment underwritten public offering of Common Stock or
                    (b) prior to the effective date of a registration statement
                    referred to in (a) above if the Company shall theretofore
                    have given written notice of such registration statement to
                    the Holders of Registrable Securities pursuant to subsection
                    9.5(a) or 9.6(a) and shall have thereafter pursued the
                    preparation, filing and effectiveness of such registration
                    statement with diligence;

             (ii)   The Company shall not be required to effect a registration
                    pursuant to this Section 9.7 unless the Registrable
                    Securities requested to be registered pursuant to this
                    Section 9.7 have a proposed public offering price of
                    $500,000 or more; and

             (iii)  The Company shall not be required to effect more than two
                    (2) registrations pursuant to this Section 9.7.

                                      -33-
<PAGE>   39

         The Company shall give notice to all Holders of Registrable Securities
of the receipt of a request for registration pursuant to this Section 9.7 and
shall provide a reasonable opportunity for other Holders to participate in the
registration, and, if the intended method of disposition specified as aforesaid
is an underwritten public offering, participation by the Company and other
holders of Common Stock shall be on the basis set forth in Section 9.5(b) above.
Subject to the foregoing, the Company will use its best efforts to effect
promptly the registration of all shares of Registrable Securities on Form S-3 to
the extent requested by the Holder or Holders thereof for purposes of
disposition.

         The Company's Obligations under this Section 9.7 shall terminate, as to
any Holder, on the first Termination Date applicable to such Holder.

         9.8 EXPENSES OF REGISTRATION.

         The Company shall bear all Registration Expenses incurred in connection
with any registration, qualification and compliance by the Company pursuant to
Sections 9.5, 9.6 and 9.7 hereof. Notwithstanding the foregoing, the Company
shall not be required to pay for any expenses of any registration proceeding
begun pursuant to Section 9.5 if the registration request is subsequently
withdrawn at the request of the Holders of a majority of the Registrable
Securities to be registered (in which case all participating holders shall bear
such expenses pro rata on the basis of the number of their shares so
registered); provided, however, that (i) the Company shall be required to pay
for any expenses of any registration proceeding begun pursuant to Section 9.5 if
the registration request is subsequently withdrawn at the request of the Holders
of a majority of the Registrable Securities to be registered, if at or prior to
the time of such withdrawal, the Holders shall have learned of a material
adverse change in the condition, business, or prospects of the Company that was
not known to the Holders at the time of their request and have withdrawn the
request with reasonable promptness following disclosure to the Holders by the
Company of such material adverse change, and (ii) in addition to its obligations
under clause (i) of this provision, the Company shall be required to pay for the
expenses of not more than one additional registration proceeding begun pursuant
to Section 9.5 if the registration request is subsequently withdrawn, at the
request of the Holders of a majority of the Registrable Securities to be
registered, for any other reason. All Selling Expenses shall be borne by the
holders of the securities so registered pro rata on the basis of the number of
their shares so registered.

         9.9 REGISTRATION PROCEDURES.

         In the case of each registration effected by the Company pursuant to
this Section 9, the Company will keep each Holder advised in writing as to the
initiation of each registration and as to the completion thereof. Except as
provided in Section 9.7, at its expense, the Company will:

             (a) keep such registration effective for a period of one hundred
         twenty (120) days or until the Holder or Holders have completed the
         distribution described in the registration statement relating thereto,
         whichever first occurs, provided, however, that such one hundred twenty
         (120) day period shall be extended for a period of time equal to the
         period the Holder refrains from selling any securities included in such
         registration or otherwise at the request of the Company;

                                      -34-
<PAGE>   40

             (b) furnish such number of prospectuses and other documents
         incident thereto as a Holder from time to time may reasonably request;

             (c) use its best efforts to register or qualify the Registrable
         Securities under the securities or blue-sky laws of such jurisdictions
         as any Holder may request; provided, however, that the Company shall
         not be obligated to register or qualify such Registrable Securities in
         any particular jurisdiction in which the Company would be required to
         execute a general consent to service of process in order to effect such
         registration, qualification or compliance, unless the Company is
         already subject to service in such jurisdiction and except as may be
         required by the Securities Act or applicable rules or regulations
         thereunder; and

             (d) use its best efforts to cause the Common Stock to be listed on
         a national securities exchange or the Nasdaq National Market.

         9.10 INDEMNIFICATION AND CONTRIBUTION.

             (a) The Company, with respect to each registration, qualification
         and compliance effected pursuant to this Section 9, will indemnify and
         hold harmless each Holder, each of its officers, directors and
         partners, and each party controlling such Holder, and each underwriter,
         if any, and each party who controls any underwriter, against all
         claims, losses, damages and liabilities (or actions in respect thereof)
         arising out of or based on any untrue statement (or alleged untrue
         statement) of a material fact contained in any prospectus, offering
         circular or other document (including any related registration
         statement, notification or the like) incident to any such registration,
         qualification or compliance, or based on any omission (or alleged
         omission) to state therein a material fact required to be stated
         therein or necessary to make the statements therein not misleading, or
         any violation by the Company of the Securities Act or any rule or
         regulation thereunder applicable to the Company and relating to action
         or inaction required of the Company in connection with any such
         registration, qualification or compliance, and will reimburse each such
         Holder, each of its officers, directors and partners, and each party
         controlling such Holder, each such underwriter and each party who
         controls any such underwriter, for any legal and any other expenses
         incurred in connection with investigating or defending any such claim,
         loss, damage, liability or action, provided that the Company will not
         be liable in any such case to the extent that any such claim, loss,
         damage, liability or expense arises out of or is based on any untrue
         statement or omission based solely upon written information furnished
         to the Company by such Holder or underwriter, as the case may be, and
         stated to be specifically for use therein.

             (b) Each Holder and Other Shareholder will, if Registrable
         Securities held by such party are included in the securities as to
         which such registration, qualification or compliance is being effected,
         indemnify and hold harmless the Company, each of its directors and
         officers and each underwriter, if any, of the Company's securities
         covered by such a registration statement, each party who controls the
         Company or such underwriter, each other such Holder and Other
         Shareholder and each of their respective officers, directors and
         partners, and each party controlling such Holder or Other

                                      -35-
<PAGE>   41

         Shareholder, against all claims, losses, damages and liabilities (or
         actions in respect thereof) arising out of or based on any untrue
         statement (or alleged untrue statement) of a material fact contained in
         any such registration statement, prospectus, offering circular or other
         document, or any omission (or alleged omission) to state therein a
         material fact required to be stated therein or necessary to make the
         statements therein not misleading, and will reimburse the Company and
         such Holders, Other Shareholders, directors, officers, partners,
         parties, underwriters or control persons for any legal or any other
         expenses reasonably incurred in connection with investigating or
         defending any such claim, loss, damage, liability or action, in each
         case to the extent, but only to the extent, that such untrue statement
         (or alleged untrue statement) or omission (or alleged omission) is made
         in such registration statement, prospectus, offering circular or other
         document solely in reliance upon and in conformity with written
         information furnished to the Company by such Holder or Other
         Shareholder and stated to be specifically for use therein; provided,
         however, that the obligations of such Holders and Other Shareholders
         hereunder shall be limited to an amount equal to the net proceeds to
         each such Holder or Other Shareholder of securities sold as
         contemplated herein, provided further that the indemnification
         obligations of each Holder and Other Shareholders hereunder who are
         affiliated entities or persons shall be joint and several.

             (c) Each party entitled to indemnification under this Section 9.10
         (the "Indemnified Party") shall give notice to the party required to
         provide indemnification (the "Indemnifying Party") promptly after such
         Indemnified Party has actual knowledge of any claim as to which
         indemnity may be sought, and shall permit the Indemnifying Party to
         assume the defense of any such claim or any litigation resulting
         therefrom, provided that counsel for the Indemnifying Party, who shall
         conduct the defense of such claim or any litigation resulting
         therefrom, shall be approved by the Indemnified Party (whose approval
         shall not unreasonably be withheld), and the Indemnified Party may
         participate in such defense at such party's expense (unless the
         Indemnified Party shall have been advised by counsel that actual or
         potential differing interests or defenses exist or may exist between
         the Indemnifying Party and the Indemnified Party, in which case such
         expense shall be paid by the Indemnifying Party), and provided further
         that the failure of any Indemnified Party to give notice as provided
         herein shall not relieve the Indemnifying Party of its obligations
         under this Section 9. No Indemnifying Party, in the defense of any such
         claim or litigation, shall, except with the consent of each Indemnified
         Party, consent to entry of any judgment or enter into any settlement
         which (i) does not include as an unconditional term thereof the giving
         by the claimant or plaintiff to such Indemnified Party of a release
         from all liability in respect to such claim or litigation, (ii)
         includes equitable or other non-monetary relief, (iii) involves
         admission of criminal or quasi-criminal activity, or (iv) any admission
         or implication of bad faith, unfair dealing, self-dealing, dishonesty
         or any similar claim which could reasonably be expected to be
         detrimental to or injure such Indemnified Party's reputation or future
         business prospects.

             (d) In order to provide for just and equitable contribution to
         joint liability under the Securities Act in any case in which either
         (i) any holder of Restricted Securities exercising rights under this
         Agreement, or any controlling person of any such holder, makes a claim
         for indemnification pursuant to this Section 9.10 but it is judicially
         determined (by the entry of a final judgment or decree by a court of
         competent

                                      -36-
<PAGE>   42

         jurisdiction and the expiration of time to appeal or the denial of the
         last right of appeal) that such indemnification may not be enforced in
         such case notwithstanding the fact that this Section 9.10 provides for
         indemnification in such case, or (ii) contribution under the Securities
         Act may be required on the part of any such selling holder or any such
         controlling person in circumstances for which indemnification is
         provided under this Section 9.10; then, and in each such case, the
         Company and such holder will contribute to the aggregate losses,
         claims, damages or liabilities to which they may be subject (after
         contribution from others) in such proportion so that such holder is
         responsible for the portion represented by the percentage that the
         public offering price of its Restricted Securities offered by the
         registration statement bears to the public offering price of all
         securities offered by such registration statement, and the Company is
         responsible for the remaining portion; provided, however, that, in any
         such case, (A) no such holder will be required to contribute any amount
         in excess of the public offering price of all such Restricted
         Securities offered by it pursuant to such registration statement; and
         (B) no person or entity guilty of fraudulent misrepresentation (within
         the meaning of Section 11(f) of the Securities Act) will be entitled to
         contribution from any person or entity who was not guilty of such
         fraudulent misrepresentation.

         9.11 INFORMATION BY HOLDER.

         Each Holder of Registrable Securities, and each Other Shareholder
holding securities included in any registration, shall furnish to the Company
such information regarding such Holder or Other Shareholder as the Company may
reasonably request in writing and as shall be reasonably required in connection
with any registration, qualification or compliance referred to in this Section
9.

         9.12 LIMITATIONS ON REGISTRATION OF ISSUES OF SECURITIES.

         From and after the date of this Agreement, the Company shall not enter
into any agreement, or amend any existing agreement, with any holder or
prospective holder of any securities of the Company giving such holder or
prospective holder the right to require the Company to initiate any registration
of any securities of the Company; provided that this Section 9.12 shall not
limit the right of the Company to enter into any agreements, or amend any
existing agreement, with any holder or prospective holder of any securities of
the Company giving such holder or prospective holder the right to require the
Company, upon any registration of any of its securities, to include, among the
securities which the Company is then registering, securities owned by such
holder and provided further that the Board may waive the requirement that the
Company not enter into any agreement, or amend any existing agreement, giving a
holder of any securities of the Company the right to require the Company to
initiate registration of any securities of the Company, provided that, if such
registration rights are more favorable than those granted to the Holders
pursuant to this Section 9, then the terms of this Section 9 shall
simultaneously be amended so as to include herein for the benefit of the Holders
such more favorable terms. In addition, any right given by the Company to any
holder or prospective holder of the Company's securities in connection with the
registration of securities shall be conditioned such that it shall be (i)
consistent with the provisions of this Section 9 and with the rights of the
Holders provided in this Agreement, and (ii) require the inclusion of
Registrable Securities (within the meaning of this Agreement) in any
registration required by any such holder or prospective holder on the same basis
as securities of Other Shareholders are required to be included in registrations
effected pursuant to Sections 9.5 and 9.6 of this Agreement.

                                      -37-
<PAGE>   43

         9.13 RULE 144 REPORTING.

         With a view to making available the benefits of certain rules and
regulations of the Commission which may permit the sale of the Restricted
Securities to the public without registration, the Company agrees to:

             (a) Make and keep public information available, as those terms are
         understood and defined in Rule 144 under the Securities Act, at all
         times from and after ninety (90) days following the effective date of
         the first registration under the Securities Act filed by the Company
         for an offering of its securities to the general public;

             (b) Use its best efforts to file with the Commission in a timely
         manner all reports and other documents required of the Company under
         the Securities Act and the Exchange Act at any time after it has become
         subject to such reporting requirements; and

             (c) So long as a Purchaser owns any Restricted Securities, furnish
         to the Purchasers forthwith upon request a written statement by the
         Company as to its compliance with the reporting requirements of Rule
         144 (at any time from and after ninety (90) days following the
         effective date of the first registration statement in connection with
         an offering of its Securities to the general public), and of the
         Securities Act and the Exchange Act (at any time after it has become
         subject to such reporting requirements), a copy of the most recent
         annual or quarterly report of the Company, and such other reports and
         documents so filed as a Purchaser may reasonably request in availing
         itself of any rule or regulation of the Commission allowing a Purchaser
         to sell any such securities without registration.

         9.14 TRANSFER OF REGISTRATION RIGHTS.

         The rights to cause the Company to register securities granted by the
Company under this Section 9 may be assigned by any Holder to a transferee or
assignee of at least 50,000 shares of Registrable Securities (as adjusted for
stock splits, combinations and other similar events affecting the Registrable
Securities), provided that the Company is given written notice at the time of or
within a reasonable time after said transfer, stating the name and address of
said transferee or assignee and identifying the securities with respect to which
such registration rights are being assigned, and provided further that the
transferee or assignee of such rights agrees to be bound by the provision of
this Section 9. No Holder of Registrable Securities shall have any rights under
this Section 9 unless such Holder shall have executed this Agreement or an
instrument in which it agrees to be bound by the terms of this Section 9.

         9.15 "MARKET STAND-OFF" AGREEMENT.

         Each Purchaser agrees, if requested by the Company and an underwriter
of the Company's Common Stock (or other securities), not to sell or otherwise
transfer or dispose of any Common Stock (or other securities) of the Company
held by it during such period as the Company specifies in its request not to
exceed one hundred eighty (180) days with respect to

                                      -38-
<PAGE>   44

only the Company's firm commitment initial public offering; such agreement not
to sell or otherwise dispose of the Common Stock (or other securities of the
Company) shall not apply to any securities of the Company acquired in the
Company's initial public offering or on the open market thereafter. Each
Purchaser further agrees, if requested by the Company and an underwriter of the
Company's Common Stock (or other securities), to enter into a "lock-up"
agreement if all directors, officers and Holders of at least 1% of the Company's
outstanding capital stock of the Company enter into similar agreements.

         Such agreement shall be in writing in a form satisfactory to the
Company and such underwriter. The Company may impose stop-transfer instructions
with respect to the shares (or other securities) held by the Purchaser subject
to the foregoing restriction until the end of said periods.

                                   SECTION 10

                                   DEFINITIONS

         As used in this Agreement or in the Financing Documents, capitalized
terms shall have the respective meanings set forth in this Agreement (including,
without limitation, in Section 9.2 hereof) or set forth below or in the Section
of this Agreement referred to below:

         AFFILIATE shall mean, as to any entity or person, any natural person,
corporation, business trust, association, company, partnership, joint venture or
other entity or government agency or political subdivision which directly or
indirectly controls, is controlled by or is under common control with such
entity or person.

         AMENDED AND RESTATED CERTIFICATE - Section 1.1.

         ANNUAL PLAN - Section 7.1(e).

         BALANCE SHEET - Section 3.7.

         BUSINESS - Section 3.21.

         BOARD shall mean the entire Board of Directors of the Company.

         CLOSING - Section 2.1.

         CLOSING DATE - Section 2.1.

         CODE - Section 3.30.

         COMMISSION shall mean the Securities and Exchange Commission or any
other federal agency at the time administering the Securities Act.

         COMMON SHAREHOLDERS - Section 5.11.

                                      -39-
<PAGE>   45

         COMMON STOCK - Section 3.4.

         CONVERSION SHARES shall mean at any time, shares of Common Stock (i)
issued and then outstanding upon the conversion of the Series C Preferred
purchased under this Agreement, (ii) issuable upon the conversion of the Series
C Preferred purchased under this Agreement, and (iii) issued and then
outstanding or issuable in respect of the Common Stock referred to in clause (i)
of this definition upon any stock split, stock dividend, recapitalization or
similar event.

         EMPLOYMENT AGREEMENT - Section 3.20.

         ENVIRONMENTAL CLAIM shall mean any and all administrative, regulatory
or judicial actions, suits, demands, demand letters, directives, claims, liens,
investigations, proceedings or notices of compliance or violation (written or
oral) by any person or entity (including any governmental authority) alleging
potential liability (including, without limitation, potential liability for
enforcement, investigatory costs, cleanup costs, governmental response costs,
removal costs, remedial costs, natural resources damages, property damages,
personal injuries, or penalties) arising out of, based on or resulting from (a)
the presence, or Release or threatened Release into the environment, of any
Hazardous Material at any location, whether owned, operated, leased or managed
by the Company or its Subsidiaries; or (b) circumstances forming the basis of
any violation, or alleged violation, of any Environmental Law; or (c) any and
all claims by any third party seeking damages, contribution, indemnification,
cost recovery, compensation or injunctive relief resulting from the presence or
Release of any Hazardous Materials.

         ENVIRONMENTAL LAWS shall mean all laws or orders relating to the
regulation or protection of human health, safety or the environment (including,
without limitation, ambient air, soil, surface water, ground water, wetlands,
land or subsurface strata), including, without limitation, laws and regulations
relating to Releases or threatened Releases of Hazardous Materials, or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport, recycling or handling of Hazardous Materials.

         ENVIRONMENTAL PERMITS - Section 3.23.

         EQUITY SECURITIES shall mean any stock or similar security, including
without limitation securities containing equity features and securities
containing profit participation features, or any security convertible or
exchangeable, with or without consideration, into any stock or similar security,
or any security carrying any warrant or right to subscribe to or purchase any
stock or similar security, or any such warrant or right.

         ERISA - Section 3.23.

         EXCHANGE ACT shall mean the Securities Exchange Act of 1934, as
amended, and any regulations issued pursuant thereto.

         FINANCING DOCUMENTS shall mean collectively, the Shareholders'
Agreement, the Management Rights Letters and all other documents set forth in
any other schedules or exhibits hereto, under which, upon its execution thereof,
the Company or any Subsidiary shall have an obligation to any Purchaser, all in
the respective forms thereof as executed and as amended from time to time.

                                      -40-
<PAGE>   46

         FINANCIAL STATEMENTS - Section 3.7.

         GROUP shall mean:

             (i)    in the case of any Purchaser who is an individual, such
                    Purchaser or any Affiliate of such Purchaser;

             (ii)   in the case of any Purchaser which is a pass-through entity,
                    (A) such pass-through entity and any of its partners,
                    members or other equity owners, (B) any corporation or other
                    business organization to which such pass-through entity
                    shall sell all or substantially all of its assets or with
                    which it shall be merged or consolidated and (C) any
                    Affiliate of such pass-through entity; and

             (iii)  in the case of any Purchaser which is a corporation, (A) any
                    such corporation, its parent and any of such corporation's
                    or parent's subsidiaries, (B) any corporation or other
                    business organization to which such corporation shall sell
                    all or substantially all of its assets or with which it
                    shall be merged, and (C) any Affiliate of such corporation.

         HAZARDOUS MATERIALS shall mean (a) any petroleum or petroleum products,
radioactive materials, asbestos in any form that is or could become friable,
above ground or underground storage tanks and compressors or other equipment
that contain polychlorinated biphenyls ("PCBs"); and (b) any chemicals,
materials or substances which are now defined as or included in the definition
of "hazardous substances," "hazardous wastes," "hazardous materials," "extremely
hazardous wastes," "restricted hazardous wastes," "toxic substances," "toxic
pollutants," "pollutants," "contaminants" or words of similar import, under any
Environmental Law; and (c) any other chemical, material, substance or waste,
exposure to which is now prohibited, limited or regulated under any
Environmental Law.

         HOLDER - Section 9.2.

         INDEBTEDNESS shall mean any obligation of the Company, contingent or
otherwise, which under generally accepted accounting principles is required to
be shown on the balance sheet of the Company as a liability. Any obligation
secured by a lien or security interest on, or payable out of the proceeds of or
production from, property of the Company shall be deemed to be Indebtedness even
though such obligation is not assumed by the Company.

         INITIAL PUBLIC OFFERING shall mean the first underwritten public
offering pursuant to an effective registration statement under the Securities
Act covering the offering and sale of Common Stock for the account of the
Company, on a firm commitment basis.

         MANAGEMENT RIGHTS LETTERS - Section 5.12.

         MEMORANDUM - Section 3.1.

                                      -41-
<PAGE>   47

         PERSON shall include all natural persons, corporations, business
trusts, associations, companies, partnerships, joint ventures and other entities
and governments and agencies and political subdivisions.

         PROPRIETARY INFORMATION AGREEMENT - Section 3.20.

         QUALIFIED INSTITUTIONAL BUYER - A "qualified institutional buyer" as
defined in Commission Rule 144A.

         QUALIFIED PUBLIC OFFERING - shall mean the first underwritten public
offering following the date hereof pursuant to an effective registration
statement under the Securities Act covering the offering and sale of Common
Stock for the account of the Company, on a firm commitment basis in which (i)
the aggregate gross proceeds to Company equal or exceed Twenty Million Dollars
($20,000,000), and (ii) the public offering price per share of Common Stock
equals or exceeds an amount equal to $36.46.

         PLACEMENT AGENT - shall mean Prudential Vector Healthcare Group.

         REINCORPORATION MERGER - Section 3.31.

         RELATED PARTY shall mean any officer, director, employee or consultant
of the Company or any Subsidiary or any holder of 5% or more of any class of
capital stock of the Company or any Subsidiary or any member of the immediate
family of any such officer, director, employee, consultant or shareholder or any
entity controlled by any such officer, director, employee, consultant or
shareholder or a member of the immediate family of any such officer, director,
employee, consultant or shareholder.

         RELEASE shall mean any release, spill, emission, leaking, injection,
deposit, disposal, discharge, dispersal, leaching or migration into the
atmosphere, soil, surface water, ground water or property.

         RESTRICTED SECURITIES - Section 9.2.

         SECURITIES ACT shall mean the Securities Act of 1933, as amended, and
regulations issued pursuant thereto.

         SERIES A PREFERRED - Section 3.4.

         SERIES A PREFERRED SHAREHOLDERS - Section 5.11.

         SERIES A PURCHASE AGREEMENT shall mean the Series A Preferred Stock and
Warrant Purchase Agreement dated as of January 21, 1998 by and among the Company
and each of the parties listed on the Schedule of Purchasers attached thereto.

         SERIES B PREFERRED - Section 3.4.

                                      -42-
<PAGE>   48

         SERIES B PURCHASE AGREEMENT shall mean the Series B Preferred Stock
Purchase Agreement dated as of February 23, 2000 by and among the Company and
each of the parties listed on the Schedule of Purchasers attached thereto.

         SERIES C PREFERRED - Section 1.1.

         SHAREHOLDERS' AGREEMENT - Section 5.11.

         SHARES - Section 1.2.

         SUBSIDIARY shall mean any corporation, partnership, joint venture,
association or other business entity at least 50% of the outstanding voting
stock or voting interests of which is at the time owned or controlled, directly
or indirectly, by the Company or by one or more of such Subsidiary entities or
both.

         TECHNOLOGY - Section 3.16.

                                   SECTION 11

                                  MISCELLANEOUS

         11.1 GOVERNING LAW.

         This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of Delaware.

         11.2 SURVIVAL.

         The representations, warranties, covenants and agreements made herein
shall survive any investigation made by any Purchaser and shall survive the
Closing for the periods set forth in this Section 11.2. The covenants and
agreements made herein and all claims and causes of actions with respect thereto
shall survive forever. The representations and warranties made herein and all
claims and causes of action with respect thereto shall terminate upon the
earlier to occur of (a) the three (3) year anniversary of the Closing Date and
(b) the one (1) year anniversary of the date the Company completes a Qualified
Public Offering; provided that the representations and warranties of the Company
set forth in Section 3.1 (Organization and Standing; Articles and By-Laws),
Section 3.23.2 (Corporate Power), Section 3.4 (Capitalization), Section 3.5
(Authorization), Section 3.18 (Offering), 3.19 (Compliance with other
Instruments), Section 3.27 (Registration Rights) and Section 11.8 and the
representations and warranties of each Purchaser set forth in Section 4.1 shall
survive forever; it being understood that in the event notice of any claim for
breach of any representation or warranty shall have been given within the
applicable survival period, the representations and warranties that are the
subject of such claim shall survive until the time as such claim is finally
resolved.

                                      -43-
<PAGE>   49

         11.3 SUCCESSORS AND ASSIGNS.

         Except as otherwise expressly provided herein, the provisions hereof
shall inure to the benefit of, and be binding upon, the successors, assigns,
heirs, executors and administrators of the parties hereto; provided, however,
that the Company may not assign its rights hereunder. Without limiting the
generality of the foregoing, all representations, covenants and agreements
benefiting the Purchasers shall inure to the benefit of any and all subsequent
holders from time to time of the Shares or the Conversion Shares.

         11.4 ENTIRE AGREEMENT.

         This Agreement (including the Schedules and Exhibits hereto, which are
an integral part of this Agreement) and the other documents delivered pursuant
hereto constitute the full and entire understanding and agreement between the
parties with regard to the subjects hereof and thereof. Except as otherwise
expressly provided herein, neither this Agreement nor any term hereof may be
amended, waived, discharged or terminated, except by a written instrument signed
by the Company and the holders of greater than fifty percent (50%) of the
Conversion Shares which have not been sold to the public, but in no event shall
this paragraph be amended without the approval of the holders of at least
seventy-five percent (75%) of such Conversion Shares, nor shall any other
provision of this Agreement that specifies a requirement for a consent, vote or
approval of the Purchasers or of the holders of Shares or Conversion Shares be
amended without the approval of the percentage of Purchasers or holders
specified in such provision, or the obligation of any Purchaser hereunder
increased except upon the written consent of such Purchaser.

         11.5 NOTICES, ETC.

             (a) All notices and other communications required or permitted
         hereunder shall be in writing and shall be mailed by first-class,
         registered or certified mail, postage prepaid, or delivered either by
         hand or by messenger, or sent via telex, telecopier, computer mail or
         other electronic means, addressed (a) if to a Purchaser, at the address
         shown on the Schedule of Purchasers, or at such other address as such
         Purchaser shall have furnished to the Company in writing, or (b) if to
         any other holder of any Shares or any Conversion Shares at such address
         as such holder shall have furnished to the Company in writing, or,
         until any such holder so furnishes an address to the Company, then to
         and at the address of the last holder thereof who has so furnished an
         address to the Company, or (c) if to the Company, 635 William Pitt Way,
         Pittsburgh, Pennsylvania 15328, Attn: President or at such other
         address as the Company shall have furnished to the Purchasers and each
         such other holder in writing.

             (b) Any notice or other communications so addressed and mailed,
         postage prepaid, by registered or certified mail (in each case, with
         return receipt requested) shall be deemed to be given four (4) business
         days after so mailed. Any notice so addressed and otherwise delivered
         shall be deemed to be given when actually received by the addressee.

                                      -44-
<PAGE>   50

         11.6 DELAYS OR OMISSIONS.

         No delay or omission to exercise any right, power or remedy accruing to
any of the parties hereto, upon any breach or default of any of the other
parties hereto under this Agreement, shall impair any such right, power or
remedy of such party nor shall it be construed to be a waiver of any such breach
or default, or an acquiescence therein, or of or in any similar breach or
default thereafter occurring; nor shall any waiver of any single breach or
default be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any party hereto of any breach or default under this
Agreement, or any waiver on the part of any party hereto of any provisions or
conditions of this Agreement must be made in writing and shall be effective only
to the extent specifically set forth in such writing. All remedies, either under
this Agreement or by law or otherwise afforded to any party hereto, shall be
cumulative and not alternative.

         11.7 RIGHTS; SEPARABILITY.

         In case any provision of this Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

         11.8 AGENT'S FEES AND SERVICES.

             (a) The Company represents and warrants that, except for the
         Placement Agents, it has retained no finder or broker or other person
         or firm in connection with the transactions contemplated by this
         Agreement. The Company accepts sole responsibility for and agrees to
         pay all agent's fees to the Placement Agents and any broker, finder or
         other person or firm in connection with the transactions contemplated
         herein, other than those which a Purchaser has agreed to pay pursuant
         to Section 11.8(b). In addition, the Company hereby agrees to indemnify
         and to hold the Purchasers harmless of and from any liability for any
         commission or compensation in the nature of an agent's fee to any
         broker, finder or other person or firm (and the costs and expenses of
         defending against such liability or asserted liability) arising from
         any act by the Company or any of its employees or representatives.

             (b) Each Purchaser represents and warrants as to itself only that
         it has retained no finder or broker in connection with the transactions
         contemplated by this Agreement. Each Purchaser accepts sole
         responsibility for and agrees to pay all agent's fees to any broker,
         finder or other person or firm hired by such Purchaser in connection
         with the transactions contemplated herein, other than those which the
         Company has agreed to pay pursuant to Section 11.8(a). In addition,
         each Purchaser hereby agrees to indemnify and to hold the Company
         harmless of and from any liability for any commission or compensation
         in the nature of an agent's fee to any broker, finder or other person
         or firm (and the costs and expenses of defending against such liability
         or asserted liability) arising from any act by such Purchaser or any of
         its employees or representatives, other than those which the Company
         has agreed to pay pursuant to Section 11.8(a).

                                      -45-
<PAGE>   51

         11.9 LEGAL FEES AND EXPENSES.

         The Company shall bear its own expenses and legal fees incurred on its
behalf with respect to this Agreement and the transactions contemplated hereby.
The Purchasers shall bear their own expenses and legal fees incurred on their
behalf with respect to this Agreement and the transactions contemplated hereby;
notwithstanding the foregoing the Company shall pay on behalf of the Purchasers
up to $25,000 of the actual legal fees and expenses of one (1) counsel,
Buchalter, Nemer, Fields & Younger, with respect to this Agreement and the
transactions contemplated hereby.

         11.10 TITLES AND SUBTITLES.

         The titles of the Sections and subsections of this Agreement are for
convenience or reference only and are not to be considered in construing this
Agreement.

         11.11 COUNTERPARTS.

         This Agreement may be executed in counterparts, each of which when so
executed and delivered shall constitute a complete and original instrument but
all of which together shall constitute one and the same agreement, and it shall
not be necessary when making proof of this Agreement or any counterpart thereof
to account for any other counterpart.

         11.12 AGGREGATION OF STOCK.

         All shares of Series C Preferred Stock held or acquired by affiliated
entities or persons shall be aggregated for purposes of determining any rights
under Sections 7.1 or 7.2 of this Agreement.

            [The remainder of this page is intentionally left blank;
                            signature page follows.]

                                      -46-
<PAGE>   52

         IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed and delivered by their proper and duly authorized officers as of the
day and year first written above.

                                   CELLOMICS, INC.

                                   By: /s/ D. LANSING TAYLOR
                                   ----------------------------------
                                   Name: D. Lansing Taylor
                                   Title:

                                   AMERINDO INTERNET FUND PLC

                                   BY: AMERINDO INVESTMENT ADVISORS, INC.,
                                       ITS MANAGER

                                   By: /s/ GARY DANAKA
                                   -----------------------------------
                                   Name: Gary Danaka
                                   Title: Executive Vice President

                                   AMERINDO TECHNOLOGY GROWTH FUND II INC.

                                   By:  /s/ GARY DANAKA
                                   -----------------------------------
                                   Name: Gary Danaka
                                   Title: Director

                                   EMERGING TECHNOLOGY PORTFOLIO

                                   By:  /s/ GARY DANAKA
                                   -----------------------------------
                                   Name: Gary Danaka
                                   Title: Attorney-in-Fact

                                   LITTON MASTER TRUST

                                   By:  /s/ GARY DANAKA
                                   -----------------------------------
                                   Name: Gary Danaka
                                   Title: Attorney-in-Fact

                                      -47-
<PAGE>   53

                                    VECTOR LATER-STAGE EQUITY FUND II, LP

                                    By: Vector Fund Management II, LLC
                                        General Partner

                                    By:  /s/ BARCLAY A. PHILLIPS
                                    --------------------------------------
                                    Name: Barclay A. Phillips
                                    Title Managing Director

                                    VECTOR LATER-STAGE EQUITY FUND II (QP), LP

                                    By: Vector Fund Management II, LLC
                                        General Partner

                                    By:  /s/ BARCLAY A. PHILLIPS
                                    --------------------------------------
                                    Name: Barclay A. Phillips
                                    Title Managing Director

                                    INTERWEST PARTNERS, VI, LP
                                    By: Interwest Management Partners VI, LLC

                                    By:  /s/ ROBERT R. MORRISON
                                    --------------------------------------
                                    Name: Robert R. Morrison
                                    Title Managing Director

                                      -48-
<PAGE>   54

                                    INVESCO GLOBAL HEALTH SCIENCES FUND

                                    By: [ILLEGIBLE]
                                    ---------------------------------
                                    Name:
                                    Title:

                                    ALTA CALIFORNIA PARTNERS II, L.P.

                                    BY: ALTA CALIFORNIA MANAGEMENT
                                        PARTNERS II, LLC, Its GENERAL
                                        PARTNER

                                    By: [ILLEGIBLE]
                                    ---------------------------------
                                    Name:
                                    Title: Member

                                    ALTA EMBARCADERO PARTNERS II, LLC

                                    BY: /s/ ELAINE WALKER
                                    ---------------------------------
                                    Name: Elaine Walker
                                    Title: Under Power of Attorney

                                    BAYSTAR CAPITAL, LP

                                    By:_____________________________
                                    Name:
                                    Title:

                                    BAYSTAR INTERNATIONAL LIMITED

                                    By:_____________________________
                                    Name:
                                    Title:

                                    BURRILL BIOTECHNOLOGY CAPITAL FUND LP

                                    By:_____________________________
                                    Name:
                                    Title:

                                      -49-
<PAGE>   55

                                    ARIANE HEALTH LIMITED, LDC

                                    By: /s/ KEN SORENSEN
                                    --------------------------------
                                    Name: Ken Sorensen, Ph.D.
                                    Title: Director, Portfolio Management

                                    CYRIL GESTION (BIOSPHERE)

                                    By: /s/ JULIEN LAFERRIERE
                                    --------------------------------
                                    Name: Julien Laferriere
                                    Title Fund Manager

                                    LCF ROTHSCHILD ASSET MANAGEMENT
                                    (FCPR CROISSANCE DISCOVERY)

                                    By: /s/ [ILLEGIBLE]
                                    -------------------------------
                                    Name: [Illegible]
                                    Title Director

                                      -50-
<PAGE>   56

                                                                       EXHIBIT A

                             SCHEDULE OF PURCHASERS

<TABLE>
<CAPTION>
                                                                 TOTAL                    SERIES C
NAME AND ADDRESS                                              INVESTMENT              PREFERRED SHARES
----------------                                              ----------              ----------------
<S>                                                          <C>                      <C>
Alta California Partners II, L.P.                             4,999,996.79                 274,273
One Embarcadero Center, Suite 4050
San Francisco, CA 94111

Amerindo Internet Fund PLC                                    1,833,336.41                 100,567
c/o Amerindo Investment Advisors, Inc.
399 Park Avenue, 22nd Floor
New York, NY 10022

Amerindo Technology Growth Fund II Inc.                       1,833,354.64                 100,568
c/o Amerindo Investment Advisors, Inc.
399 Park Avenue, 22nd Floor
New York, NY 10022

Ariane Health Limited, LDC                                    1,000,006.65                  54,855
450 Park Avenue, Suite 1804
New York, NY 10022

BayStar Capital, LP                                           1,333,342.20                  73,140
50 California Street, Suite 3325
San Francisco, CA 94111

BayStar International Limited                                   666,671.10                  36,570
50 California Street, Suite 3325
San Francisco, CA 94111

Burrill Biotechnology Capital Fund LP                         3,000,001.72                 164,564
120 Montgomery Street, Suite 1370
San Francisco, CA 94104

Cyril Gestion (Biosphere)                                        99,991.55                   5,485
2 Rue des Italiens
75009 Paris, France

Emerging Technology Portfolio                                 1,833,336.41                 100,567
c/o Amerindo Investment Advisors Inc.
399 Park Avenue, 22nd Floor
New York, NY 10022

Interwest Partners, VI, LP                                    1,500,000.86                  82,282
3000 Sand Hill Road
Building 3, Suite 255
Menlo Park, CA 94025
</TABLE>

                                      -51-
<PAGE>   57

<TABLE>
<CAPTION>
                                                                     TOTAL                    SERIES C
NAME AND ADDRESS                                                   INVESTMENT              PREFERRED SHARES
----------------                                                   ----------              ----------------
<S>                                                             <C>                      <C>
Invesco Global Health Sciences Fund                               6,999,991.86                   383,982
7800 E-Union Avenue
Mail Stop 1102
Denver, CO 80237

LCF Rothschild Asset Management                                     400,002.66                    21,942
(FCPR Croissance Discovery)
47 Rue du Faubourg Saint Honore
75008 Paris, France

Litton Master Trust                                               1,499,964.40                    82,280
c/o Amerindo Investment Advisors Inc.
399 Park Avenue, 22nd Floor
New York, NY 10022

Vector Later-Stage Equity Fund II (QP), LP                        2,250,001.29                   123,423
1751 Lake Cook Road
Deerfield, IL 60015

Vector Later-Stage Equity Fund II, LP                               750,000.43                    41,141
1751 Lake Cook Road
Deerfield, IL 60015

TOTAL                                                            29,999,998.87                 1,645,639
</TABLE>

<PAGE>   58

                                                                       EXHIBIT B

                AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

<PAGE>   59

                                                                       EXHIBIT C

                             SCHEDULE OF EXCEPTIONS

         The Section references in this Schedule are to Sections in the Series C
Preferred Stock Purchase Agreement to which this Schedule is attached.

<PAGE>   60

                                                                       EXHIBIT D

                    FORM OF PROPRIETARY INFORMATION AGREEMENT

<PAGE>   61

                                                                       EXHIBIT E

                           FORM OF OPINION OF COUNSEL

<PAGE>   62

                                                                       EXHIBIT F

              FORM OF AMENDED AND RESTATED SHAREHOLDERS' AGREEMENT

<PAGE>   63

                                                                       EXHIBIT G

                        FORM OF MANAGEMENT RIGHTS LETTER

<PAGE>   64

                                                                       EXHIBIT H

                         FORM OF KEY EMPLOYEE AGREEMENT

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