Document:

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                                                                   EXHIBIT 10.33

          CONFIDENTIAL PORTIONS HAVE BEEN OMITTED BASED UPON A REQUEST
            FOR CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 OF THE
         SECURITIES EXCHANGE ACT OF 1934 AND HAVE BEEN SEPARATELY FILED
                              WITH THE COMMISSION.

                                                                  EXECUTION COPY

                  EXCLUSIVE DISTRIBUTION AND LICENSE AGREEMENT

        THIS EXCLUSIVE DISTRIBUTION AND LICENSE AGREEMENT is made and entered
into as of the 25th day of July 2002 (this "Agreement"), between EPOCH
BIOSCIENCES, INC., a Delaware corporation ("Epoch"), and AMERSHAM BIOSCIENCES
CORP., a Delaware corporation ( "Amersham").

                                 R E C I T A L S

        A. Amersham develops, manufactures, markets, distributes and sells
proprietary instruments and reagents used to perform genomic analysis.

        B. Epoch wishes to appoint Amersham as its exclusive distributor of
Products (as defined below) on the terms and subject to the conditions set forth
in this Agreement, and Amersham is willing to accept such appointment.

                                A G R E E M E N T

        NOW, THEREFORE, in consideration of the foregoing, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, on the terms and subject to the conditions set forth herein, the
parties hereby agree as follows:

1. DEFINITIONS. When used herein, the following capitalized terms shall have the
following meanings:

        "AFFILIATE" means, in respect of any specified Person, any other Person
which, directly or indirectly, controls, is controlled by, or is under common
control with, such specified Person. The term "control" means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of a Person, through the ownership of voting securities
or other equity interests, and the terms "controlled" and "common control" have
correlative meanings.

        "AGREEMENT" has the meaning set forth in the preamble.

        "AMERSHAM" has the meaning set forth in the preamble.

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        [*]

        "CHANGE IN CONTROL" means a change in ownership or control of Epoch
effected through (i) the acquisition, directly or indirectly, by any Person or
related group of Persons, of beneficial ownership of securities possessing more
than fifty percent (50%) of the total combined voting power of Epoch's
outstanding securities, or (ii) a merger or consolidation in which securities
possessing more than fifty percent (50%) of the total combined voting power of
Epoch's outstanding securities are transferred to a Person or Persons different
from the persons holding those securities immediately prior to such transaction;
or (iii) the sale, transfer or other disposition of all or substantially all of
Epoch's assets in complete liquidation or dissolution of Epoch.

        "CATALOGUE PROBE SET" means one or more MGB Eclipse Probes for a
specific target, designed by Epoch, pre-validated with synthetic or genomic DNA,
and supplied pre-diluted, with the probe, primers and hybridisation buffer in
separate containers (but Catalogue Probe Set shall not include any [*]).

        "CONFIDENTIAL INFORMATION" has the meaning set forth in Section 11.1.

        "CUSTOM PROBE SET" means one or more MGB Eclipse Probes, with a probe
sequence specified by the customer (which may be determined using the MGB
Eclipse Software), and supplied pre-diluted, with the probe, primers and
hybridisation buffer in separate containers.

        "EPOCH" has the meaning set forth in the preamble.

        "EPOCH MARKS" means any and all trademarks, trade names, service marks,
service names, logos and similar proprietary rights owned, controlled or
licensed, or adopted from time to time, by Epoch and used in connection with the
marketing, distribution and sale of the Products.

        "FIELD" means the use of oligonucleotide probes for research use only,
and specifically excluding: (i) any human or animal diagnostic uses (including
any use of the results of any testing performed with any Product for patient
management), (ii) any industrial (including food industry) testing, (iii) any
forensic testing, and (iv) any environmental testing (including bio-terrorism
and bio-warfare).

        "FOREIGN LIST PRICE" has the meaning set forth in Section 4.1.

        "FTE" OR "FULL-TIME EQUIVALENT" means the services of a person suitably
qualified for the designated task for a period of one thousand eight-hundred and
fifty (1,850) hours on an annualized basis.

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        "KEY CUSTOMERS" shall mean significant customers or potential customers
for Catalogue Probe Sets and/or Custom Probe Sets in the Field, who the parties
hereto reasonably expect will order a minimum of [*]units of such Products per
year.

        "LIST PRICE" has the meaning set forth in Section 4.1.

        "MGB ECLIPSE PROBE" shall mean an oligonucleotide hybridization probe
containing a minor groove binder proprietary to Epoch and a quencher proprietary
to Epoch at the [*] end of the oligonucleotide and a fluorescent dye at the [*]
end of the oligonucleotide.

        "MGB ECLIPSE SOFTWARE" means Epoch's computer software which provides a
means to choose oligonucleotides for DNA and RNA based laboratory methods, as
more fully described in the MGB Eclipse Software License.

        "MGB ECLIPSE SOFTWARE LICENSE" shall have the meaning set forth in
Section 5.1.

        "ON SITE TECHNICAL SALES AND SUPPORT SERVICES" means the provision of
personnel at customer locations to (i) provide technical assistance in
conjunction with the activities of sales representatives to develop customer use
of the Products, and (ii) provide more advanced technical assistance to
customers of the Products in the use of the Products than can be provided as
part of the Primary Product Support Services.

        "PERSON" means any natural person or any corporation, partnership,
limited liability company, business association, joint venture or other entity.

        "PRIMARY PRODUCT TECHNICAL SERVICES" means the provision of personnel to
provide assistance to customers of the Products seeking technical assistance in
the use of the Products, via telephone, email or similar remote means.

        "PRODUCTS" means Custom Probe Sets and Catalogue Probe Sets and shall
exclude [*].

         "SOFTWARE TECHNICAL SERVICES" means the provision of personnel to
provide assistance to customers of the Products seeking technical assistance in
use of the MGB Eclipse Software, via telephone, email or similar remote means.

        "SUPPORT SERVICES AGREEMENT" shall have the meaning set forth in Section
7.1.

        "TERRITORY" means the entire world.

        "U.S. LIST PRICE" has the meaning set forth in Section 4.1.

2. DISTRIBUTION AND LICENSE RIGHTS.

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        2.1 APPOINTMENT AS EXCLUSIVE DISTRIBUTOR. Epoch hereby appoints Amersham
as Epoch's exclusive (subject to Section 2.2) distributor to market, distribute
and sell the Products in the Field in the Territory.

        2.2 RESERVED RIGHTS OF EPOCH.

               (a) As an exception to Amersham's exclusive rights, Epoch shall
have a limited right to manufacture MGB Eclipse Probes for a third party for [*]
only. The third party may market, promote, sell and distribute under its label
Custom Probe Sets on a limited basis and Catalogue Probe Sets on a repeat basis.
Nothing herein shall limit Amersham's right to market Products for [*].

               (b) As a further exception to Amersham's exclusive rights, Epoch
may sell Products to [*] in the Field in the Territory, for use only by [*] and
its Affiliates and not for resale by [*]. Amersham agrees that during the term
of this Agreement it shall not sell or otherwise provide Products to [*]. Epoch
may also sell Products to customers of [*] who order such Products directly or
indirectly through [*] website ("[*] Web Customers"). To the extent permitted
under confidentiality agreements with [*] and/or [*] Web Customers, Epoch shall
report all sales of Products to [*] Web Customers to Amersham, on a quarterly
basis, not more than forty five (45) days after the end of each calendar
quarter. Epoch agrees that Amersham may thereafter pursue sales to such
identified [*] Web Customers.

               (c) Amersham agrees and acknowledges that it has no rights with
respect to [*] and that Epoch may sell such probes, directly or indirectly to
customers.

        2.3 TECHNOLOGY LICENSE. During the term and only for the purpose, of
this Agreement, Epoch grants Amersham a non-exclusive, non-assignable,
non-sublicensable (except to end-user customers of Amersham) and limited license
under Epoch's intellectual property rights, including patent rights, to market,
promote, sell, import, export and distribute the Products for use in the Field
in the Territory, subject to the restrictions and limitations herein.

        2.4 FIELD LIMITATION. Amersham shall not (i) sell or transfer the
Products to any Person for use outside the Field, or (ii) sell the Products to
any Person which Amersham knows or has reason to know will use, or further sell
or transfer for use, outside the Field. In the event that Amersham learns of any
use outside the Field of the Products sold hereunder by any Person, it shall (i)
promptly notify such Person that such use is in violation of Epoch's
intellectual property rights, (ii) cease providing Products to such Person, and
(iii) notify Epoch of its actions. All labeling of the Products and all
instructions for use of the Products will conform to the requirements of Section
2.5 below.

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        2.5 LABEL REQUIREMENTS. All labeling for the Products will contain the
Epoch and Amersham names and logos in equal prominence, designating Epoch as the
manufacturer and Amersham as the distributor. All advertising and catalogue
entries with respect to the Products shall include, in a manner that is
reasonably prominent, the name "Epoch MGB Eclipse," or other mutually agreed
upon designation, and an acknowledgement that Epoch is the manufacturer of such
Product. Amersham may only resell Products that contain a label that clearly and
conspicuously states and includes the following: (a) that the Products are for
research purposes only, and may not be used for any other commercial, clinical,
diagnostic or any other use, and (b) that more information regarding the
foregoing can be found in the product insert accompanying such Product.

        2.6 PRODUCT INSERTS. Each Product shall include a product insert that
clearly and conspicuously includes:

               (a) all instructions for the use of the Product provided by Epoch
to Amersham for inclusion on such product insert; and

               (b) the following information:

                      (i) that the Products are for research purposes only, and
may not be used for any other commercial, clinical, diagnostic or any other use,
including, without limitation any: (A) human or animal diagnostic uses
(including any use of the results of any testing performed with any Product for
patient management), (B) industrial (including food industry) testing, (C)
forensic testing, and (D) environmental testing (including bio-terrorism and
bio-warfare); and

                      (ii) that the Products or portions thereof are subject to
proprietary rights of Epoch and are made and sold under license from Epoch under
the patents and patent applications as may be designated by Epoch from time to
time set forth; and

                      (iii) that there is no implied license for any other use
with respect to the Products; and

                      (iv) that a license must be obtained directly from Epoch
with respect to any other proposed use of the Products.

        2.7 EXPANSION OF FIELD AND PRODUCTS. The parties agree that they may
discuss expansion of the Field and expansion of the definition of Products in
connection with additional consideration from Amersham to Epoch, [*]. However,
both parties shall have the right to accept or reject any proposal from the
other party regarding expansion of the Field and/or the Products.

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        2.8 TRADEMARK LICENSE. Epoch hereby grants to Amersham a non-exclusive,
royalty-free right and license to use the Epoch Marks in connection with the
marketing, promotion, distribution, sale, technical assistance and support of
the Products. Amersham agrees not to alter or remove any Epoch Marks displayed
on any Product or its packaging. Except as provided in this Agreement, nothing
herein shall grant to Amersham any right, title or interest in Epoch Marks.

        2.9 INSPECTION RIGHTS. During the term of this Agreement, Amersham will
have the right, at its sole cost and expense, during normal business hours and
upon reasonable notice, but not more than two (2) times each calendar year, to
have a representative inspect the relevant portions of Epoch's facilities where
the Products are manufactured in order to ensure that the manufacturing quality
control procedures with respect to the Products are in accordance with the terms
of this Agreement, provided, that Amersham's representative will not
unreasonably interfere with operations at such facilities. Such representative
shall at all times comply with the applicable safety and security rules of Epoch
as well as any applicable restrictions on the disclosure or use of confidential
information belonging to Epoch. Epoch may have a representative of Epoch
accompany the Amersham's representative at all times.

        2.10 NO OTHER RIGHTS. Except as expressly provided in this Agreement, no
other right, title, or interest is granted by Epoch to Amersham hereunder. Epoch
may distribute products other than Products within the Territory, either
directly or indirectly through distributors, and no right, title or interest is
granted by Epoch to Amersham relating to such products.

3. SUPPLY, FORECASTS, ORDERS.

        3.1 SUPPLY AND PURCHASE OBLIGATIONS. During the term of this Agreement,
Epoch shall supply the Products to Amersham for resale during the term of this
Agreement, subject to the terms, conditions, and restrictions herein, including
without limitation, the restrictions on the Field. Amersham shall purchase
Catalogue Probe Sets under this Agreement to the extent set forth in written
purchase orders provided to Epoch by Amersham and accepted by Epoch, subject to
the minimum commitments and binding forecasts set forth below. Amersham shall
purchase Custom Probe Sets utilizing the order placement function of the MGB
Eclipse Software, and each electronic submission of such an order shall
constitute a purchase order placed by Amersham with Epoch. In the event that a
Key Customer has installed the MGB Eclipse Software on a computer server owned
or controlled by such Key Customer, the Key Customer may place orders for Custom
Probe Sets utilizing the order placement function of the MGB Eclipse Software,
and the electronic submission of each such order shall constitute a purchase
order placed by Amersham with Epoch on behalf of such Key Customer; provided,
however, that Epoch shall promptly notify Amersham of each such order, and
Amersham shall be responsible for collection, payment and all other obligations
associated with such order in Amersham's capacity as a distributor as if
Amersham had itself placed the order, such order having been sent electronically
to Epoch by the Key Customer via the MGB Eclipse Software for the purpose of
convenience only. Amersham shall purchase all of its requirements of Products
from Epoch.

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        3.2 MINIMUM STOCKING ORDERS. Within ten (10) days of the date hereof,
Amersham shall place a purchase order for at least [*] of each Catalogue Probe
Set listed in Epoch's current catalogue, as set forth on Exhibit A. Upon
development of any additional Catalogue Probe Sets, Amersham shall place a
purchase order for at least [*] units of such additional Catalogue Probe Set.

        3.3 FORECASTS. Within six (6) months of the date hereof, and thereafter
not less than forty-five (45) days prior to the first day of each calendar
quarter Amersham shall provide Epoch with a written, good faith forecast of the
quantities of Catalogue Probe Sets that Amersham expects to purchase during each
quarter of the next four (4) calendar quarters. The quantities of the Catalogue
Probe Sets specified for each of the first calendar quarter of such forecast
shall be binding on Amersham, and Epoch shall require Amersham to take delivery
and pay for such amount of the Catalogue Probe Sets. Amounts for additional
quarters beyond the first quarter of each forecast shall be considered a
non-binding forecast. During any calendar quarter, Epoch shall not be required
to fill any order or series of orders in excess of one hundred (100%) of the
quantities forecasted for such quarter pursuant to the binding portion of the
forecast under this Section 3.3. In the event that Amersham shall provide Epoch
with orders in excess of such quantities, Epoch shall use commercially
reasonable efforts, but is not required to, supply additional Catalogue Probe
Sets.

        3.4 MINIMUM BATCH SIZES. Unless otherwise agreed by Epoch, all orders
for Catalogue Probe Sets placed by Amersham shall be in batches of not less than
[*] units of a particular Catalogue Probe Set.

        3.5 ORDERS. Amersham shall issue to Epoch from time to time purchase
orders which shall confirm quantities and shipping arrangements for Products.
Each such purchase order shall be in writing in a form reasonably acceptable to
Epoch (or submitted electronically using the MGB Eclipse Software, as
contemplated in Section 3.1), and shall specify the description of the
Product(s) ordered, the quantity ordered and the shipping arrangements. Such
purchase orders shall be issued no later than [*] days in advance of the
specified date of delivery. In the event of a conflict between the terms and
conditions of any purchase order (or terms included by the party placing an
order using the MGB Eclipse Software) and this Agreement, the terms and
conditions of this Agreement shall prevail.

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        3.6 DELIVERY AND ACCEPTANCE.

               (a) DELIVERY. All Products supplied under this Agreement shall be
delivered by Epoch at its place of manufacture, and Amersham shall purchase such
Products, Exworks (EXW-INCOTERMS 2000), Epoch's place of manufacture. Amersham
shall have the right to designate shipping arrangements upon advance notice to
Epoch; provided, however, that if Amersham fails to designate a carrier, Epoch
shall arrange shipping on Amersham's behalf at Amersham's expense, to such
location as designated by Amersham in the applicable purchase order. Amersham
shall pay all freight, insurance charges, taxes, import and export duties,
inspection fees and other charges applicable to the sale and transport of
Products purchased by Amersham hereunder. Title and risk of loss and damages to
Products purchased by Amersham hereunder shall pass to Amersham upon delivery to
the carrier. Epoch shall provide for each lot of Product shipped hereunder, a
Certificate of Analysis (in substantially the form of Exhibit H attached hereto)
evidencing such lot's conformity with the specifications for such Product.

               (b) REJECTION. If a shipment of Products or any portion thereof
does not contain those Products actually ordered by Amersham pursuant to the
applicable purchase order, then Amersham shall have the right to reject such
portion of the shipment of Products. Amersham shall give written notice to Epoch
of its rejection hereunder, within ten (10) days after Amersham's receipt of
such shipment, specifying the grounds for such rejection. In the event that
Amersham refuses acceptance, Epoch, upon its confirmation of the reasons for
refusal of the Products, shall either replace the defective Product or refund
the purchase price, as Epoch may elect, and the nonconforming portion of the
shipment of Products shall be held for Epoch's disposition, or shall be returned
to Epoch, in each case at Epoch's expense, and as directed by Epoch. If Epoch
and Amersham do not agree on the refusal or rejection of the Products, then
either party may refer the matter for final analysis to a specialized laboratory
of national reputation acceptable to both parties for the purpose of determining
the results. Any determination by such laboratory shall be final and binding
upon the parties hereto. The party in error shall bear all the expenses of such
specialized laboratory testing.

4. PRICE AND PAYMENT TERMS.

        4.1 PRICES. Epoch shall establish list prices for all Products (the
"List Prices"). List Prices for current Products to be distributed in the U.S.,
or any territory other than Japan, Europe or the U.K. (the "U.S. List Price")
are to be established by Epoch and are attached hereto as Exhibit A. Separate
List Prices for current Products to be distributed in each of Europe, Japan or
the U.K. (the "Foreign List Price") shall be determined by Epoch in good faith
based on market conditions in each such territory, within thirty (30) days of
the date hereof, subject to Amersham's reasonable and good faith approval of the
methodology for determining such prices in relation to the corresponding U.S.
List Price for the same Product. List Prices for any new Products shall be
determined Solely by Epoch upon their introduction. Epoch may adjust List
Prices[*], at the end

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of each [*], based upon (i) market conditions, or (ii) other reasons as
determined by Epoch, provided that increases pursuant to this subsection (ii)
shall be implemented no more often than[*], and shall not result in an [*] List
Price increase pursuant to subsection (ii) in excess of [*] of the increase
indicated by the U.S. Department of Labor Consumer Price Index in the prior
year.

               (a) CATALOGUE PROBE SETS. Foreign List Prices for Catalogue Probe
Sets shall be provided to Amersham in U.S. Dollars based upon a conversion of
the applicable Foreign List Price determined by Epoch as described in Section
4.1 above, into U.S. Dollars based upon the trailing twelve (12) month average
exchange rate with respect to Yen, Euros or Pounds Sterling, as applicable
(based on the published exchanges rate in the U.S. edition of the Wall Street
Journal). In addition to the List Price Adjustments permitted pursuant to
Section 4.1 above, Epoch may adjust List Prices for Catalogue Probe Sets
semi-annually (within 15 days following June 30 and December 31 of each year)
based upon currency exchange rate fluctuations. Amersham shall pay to Epoch in
U.S. Dollars for each Catalogue Probe Set purchased hereunder, [*] percent
([*]%) of the U.S. List Price for such Catalogue Probe Set, subject to
reconciliation as described in Section 4.4. Notwithstanding the foregoing,
during the period that Epoch is providing On Site Technical Sales and Support
Services at its expense under Section 9.2(d) below Amersham shall pay to Epoch
for each Catalogue Probe Set purchased hereunder, [*] percent ([*]%) of the List
Price for such Catalogue Probe Set. All payments to Epoch shall be in U.S.
Dollars. Amersham may sell the Catalogue Probe Sets to its customers at any
price or for any consideration it desires.

               (b) CUSTOM PROBE SETS. Foreign List Prices for Custom Probe Sets
shall be provided to Amersham in local currency. All payments to Epoch shall be
in U.S. Dollars, based on the published exchange rate in the U.S. edition of the
Wall Street Journal based on the date of the applicable order. Amersham shall
pay to Epoch for each Custom Probe Set purchased hereunder, [*] percent ([*]%)
of the List Price for such Custom Probe Set. Notwithstanding the foregoing,
during the period that Epoch is providing On Site Technical Sales and Support
Services at its expense under Section 9.2(d) below Amersham shall pay to Epoch
for each Custom Probe Set purchased hereunder, [*] percent ([*]%) of the List
Price for such Custom Probe Set. Amersham may sell the Custom Probe Sets to its
customers at any price or for any consideration it desires.

        4.2 CREDIT FOR VOLUME DISCOUNTS.

               (a) Epoch acknowledges that Amersham may provide discounts to
customers for volume purchases. To the extent that Amersham actually grants such
discounts, and to the extent the discounted amount does not exceed the
creditable discount amount set forth on Exhibit B, then Epoch will grant to
Amersham a credit equal to [*] percent ([*]%) of such creditable discount
amount. For example, if the List Price for a Product is $[*] and the applicable
creditable discount amount set forth on Exhibit B is [*]%, and if Amersham
actually grants such volume

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discount so that the sale price is $[*], then Epoch will grant Amersham a credit
for [*]% of the $[*]discounted amount, or $[*]. Epoch will provide a credit of
[*]% only to the extent of the creditable discount amount set forth in Exhibit B
and any other discount shall be at Amersham's sole expense. The creditable
discount amount shall only apply to volume purchases under a single purchase
order or multiple releases under a standing purchase order only, and shall not
apply in the event of successive purchase orders from a customer which
ultimately aggregate enough units to otherwise qualify for the creditable
discount amount.

               (b) On a quarterly basis, not more than fifteen (15) days after
the end of each calendar quarter, Amersham shall provide Epoch with a report of
such discounts actually granted (along with such documentation that Epoch
reasonably requests), which information may be incorporated into the report
described in Section 4.4 below. If any such discount was granted in a currency
other that U.S. dollars, it shall be converted to U.S. dollars based on the
average exchange rate during the quarter in which such discount was effected,
based on the exchange rates published in the U.S. edition of the Wall Street
Journal.

               (c) Notwithstanding the foregoing, during the period that Epoch
is providing On Site Technical Sales and Support Services at its expense under
Section 9.2(d) below Amersham shall not be entitled to receive any credits from
Epoch for volume discounts it may grant its customers, whether or not in
conformity with Exhibit B.

        4.3 PAYMENT TERMS. Upon shipment of Products to Amersham, Epoch shall
submit invoices therefor to Amersham. Payment for all Products shipped shall be
net [*] days from the date of invoice. All payment shall be made in U.S.
Dollars. To the extent the terms of any invoice submitted by Epoch conflict with
the terms of this Agreement, the terms of this Agreement shall control and be
binding upon the parties. Any amounts due under this Agreement which are more
than [*] days delinquent shall bear interest at a rate equal to the lesser of
one and one-half percent (1.5%) per month or the maximum rate permitted by
applicable law. Epoch reserves the right to discontinue all services and/or
withhold shipment of Products during any period in which Amersham has any
amounts outstanding and past due.

        4.4 RECONCILIATION OF PAYMENTS. On a semi-annual basis, not more than
fifteen (15) days following June 30 and December 31 of each calendar year,
Amersham shall provide Epoch with a report of revenues for such six-month
period, setting forth in reasonable detail in a form acceptable to Epoch, (a)
the number of Products sold (identifying the specific Product, whether it is a
Catalogue Probe Set or Custom Probe Set), (b) the country or territory in which
each Catalogue Probe Set was sold, (c) the sale price of such Catalogue Probe
Set, (d) the applicable transportation costs, packing and shipping charges, and
taxes (including sales, use, turnover value-added and excise taxes) for each
such Catalogue Probe Set, (e) the volume discount provided with respect to such
Catalogue Probe Set, if any, in accordance with the reporting obligations under
Section 4.2, and (f) a reconciliation with respect to the difference between the
U.S. List Price paid by Amersham to Epoch for each Catalogue Probe Set and the
dollar-denominated Foreign List Price applicable to each such Catalogue Probe
Set for resale in the territory in which they were actually sold to customers.
Concurrently with such report, Amersham shall remit payment to Epoch in the
event that amounts are due to Epoch pursuant to subsection (f), and shall
request a credit in the event that amounts are due to Amersham pursuant

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to subsection (f). By way of example, if 100 Catalogue Probe Sets sold to
Amersham based upon a U.S. List Price (in accordance to Section 4.1) are sold by
Amersham to a customer in the European territory, then Amersham shall remit to
Epoch the difference (or request a credit for the difference, as the case may
be) between the applicable percentage ([*]% or [*]%, pursuant to Section 4.1) of
the U.S. List Price that Amersham paid to Epoch upon the purchase of such 100
Catalogue Probe Sets, versus the dollar-denominated Foreign List Price for
Europe established by Epoch pursuant to Section 4.1 that is applicable to the
same Catalogue Probe Sets for purchase by Amersham for resale in Europe.

        4.5 AUDIT RIGHTS. During the Term of this Agreement, Amersham shall
maintain complete and accurate records sufficient to enable Epoch to determine,
monitor and confirm the accuracy, for the three (3) prior years, of (a) such
discounts actually granted by Amersham with respect to the Products as described
in Section 4.2, and (b) the reports and payments or credits described in Section
4.4. No more than quarterly, unless otherwise agreed in writing, at the request
and the expense of Epoch, upon at least ten (10) days' prior notice, Amersham
shall permit Epoch to examine these records solely to the extent necessary to
verify the accuracy of (i) such discounts actually granted by Amersham to
customers with respect to the Products as described in Section 4.2, and (ii) the
reports described in Section 4.4. If such examination correctly concludes there
were credits issued to Amersham by Epoch with respect to discounts in excess of
the credits that should have been issued based on the discounts actually granted
pursuant to Section 4.2, or that Epoch was underpaid due to the inaccuracy of
any report pursuant to Section 4.4, then Amersham shall, within thirty (30) days
of notice from Epoch of such error, remit to Epoch the cash value of such
credits issued to Amersham or the amount of such underpayment, and if the
credits actually issued were in excess of ten percent (10%) of the amount of
credits that should have been issued, or if the underpayment was in excess of
ten percent (10%) of the amount that should have been paid to Epoch during such
quarter, then Amersham shall pay all costs of such examination, as well as
interest on such amount due to Epoch, at a rate of 1.5% per month, or the
highest rate permissible under applicable law, whichever is higher. This Section
4.5 shall survive the termination of this Agreement for a period of three (3)
years.

5.      MGB ECLIPSE SOFTWARE.

        5.1 LICENSE TO MGB ECLIPSE SOFTWARE. Concurrent with the execution of
this Agreement, Amersham and Epoch shall execute a software license agreement,
in the form attached as Exhibit C (the "MGB Eclipse Software License") granting
Amersham the right to install the MGB Eclipse Software on a computer server to
enable customers of Amersham to access the MGB Eclipse Software via a web site
owned and operated by or on behalf of Amersham, for the purpose of designing and
ordering Custom Probe Sets. Additionally, Epoch shall make available to Key
Customers the MGB Eclipse Software upon terms substantially similar to the terms
set forth in the MGB Eclipse Software License.

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<PAGE>
                                                                         Page 12

        5.2 OBLIGATION TO INSTALL MGB ECLIPSE SOFTWARE. Amersham shall, within
thirty (30) days of the date hereof, with reasonable assistance from Epoch,
install and make operational on a web site owned and operated by or on behalf of
Amersham, the MGB Eclipse Software.

        5.3 INSTALLATION OF MGB ECLIPSE SOFTWARE AT CUSTOMER SITES. In the event
that Amersham requests that Epoch install the MGB Eclipse Software at a customer
site, Epoch shall use its commercially reasonable efforts to effect such
installation, and Amersham shall reimburse Epoch for the actual cost of such
installation within thirty (30) days of Epoch's invoice reflecting such charges.
Epoch shall not otherwise be entitled to any amounts Amersham may charge its
customers for such installations.

        5.4 CUSTOMIZATION OF MGB ECLIPSE SOFTWARE. In the event that Amersham
requests any modifications or customizations of the MGB Eclipse Software
("Software Modifications") reasonably necessary to effect the implementation of
the MGB Eclipse Software in accordance with the terms of this Agreement (or if
Amersham requests other Software Modifications which Epoch agrees in its sole
discretion to undertake), Epoch shall use its commercially reasonable efforts to
effect such Software Modifications, and Amersham shall reimburse Epoch for the
actual cost of such Software Modifications within thirty (30) days of Epoch's
invoice reflecting such charges. All right, title and interest in and to the MGB
Eclipse Software, the Software Modifications, and any intellectual property or
proprietary rights of any kind in connection with the MGB Eclipse Software, the
Software Modifications shall reside in and remain vested in Epoch.

6. JOINT RESEARCH EFFORTS.

        6.1 MODIFICATION OF PRODUCTS. Amersham may submit to Epoch a request for
certain modifications or improvements to the Products, and Epoch shall review
and discuss such request with Amersham. Upon mutual agreement by Epoch and
Amersham, Epoch shall undertake the necessary research and development
activities to implement such modifications or improvements. Amersham will
reimburse Epoch all costs associated with such research and development
activities, including personnel costs at an hourly rate of [*] dollars ($[*])
per hour. Payment for such services shall be net thirty (30) days from the date
of Epoch's invoice, which shall include an accounting of the hours spent on such
requested modifications or improvements. All payment shall be made in U.S.
Dollars. "Inventions" shall mean all discoveries, concepts, ideas and other
intellectual property or proprietary rights, whether patentable or not, which
arise from or are directly related to the development activities described in
this Section 6.1, including but not limited to articles, processes, compounds,
methods, formulae, systems and techniques, as well as improvements thereof and
relating to the Products. Any Inventions arising out of the development
activities described in this Section 6.1 for which Amersham has reimbursed Epoch
in full, and which are directly related to modifications or improvements to the
Products, will be jointly owned

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<PAGE>
                                                                         Page 13

by the Parties. As used herein, the terms "inventor" and "Invention" are defined
to be consistent with those definitions established and set forth in Title 35
U.S.C. and case law pertaining thereto.

7. ADDITIONAL OBLIGATIONS OF AMERSHAM.

        7.1 SUPPORT SERVICES. Within ninety (90) days of the date hereof,
Amersham and Epoch shall negotiate and execute a Support Services Agreement
which, subject to approval by Amersham's Vice President of Manufacturing (which
consent shall not be unreasonably withheld), shall obligate Amersham, at Epoch's
option, to (i) lease facilities to Epoch, (ii) provide employees to Epoch and
(iii) provide materials and services to Epoch, all in connection with Epoch's
manufacture of Custom Probe Sets in Europe and Japan, on the terms and
conditions in the Support Services Agreement. When completed, the Support
Services Agreement shall be appended to this Agreement as Exhibit D.

        7.2 REGISTRATIONS, LICENSES AND PERMITS. Amersham shall comply in all
material respects with all laws, rules and regulations applicable to the
marketing, promotion, distribution and sale of Products within the Territory. If
and as required from time to time under the laws of any country within the
Territory, Amersham shall apply for and use its commercially reasonable efforts
to obtain all registrations, licenses and permits that are necessary to market,
distribute and sell the Products within such country. Epoch shall reasonably
cooperate with Amersham in connection with Amersham's efforts to obtain such
registrations, licenses and permits.

        7.3 PROMOTION OF PRODUCTS; ADVERTISING; LAUNCH AND MARKETING PLAN.

               (a) Amersham shall use its best efforts to promote the sale of
the Products within the Territory. Amersham shall advertise, promote and market
the Products in a commercially reasonable manner and furnish appropriate Product
information and promotional materials to its customers. Such efforts shall
include, but not be limited to, at Amersham's expense, preparing promotional
materials in appropriate languages for the Territory, advertising the Products
in appropriate trade publications and journals, participating in appropriate
trade shows (at a minimum the major international meeting trade shows that
relate to the Products and the Field), promoting the Products on Amersham's web
site, providing customer training where required, creating a sales force
sufficient to promote the Products, and directly soliciting orders from
customers for the Products.

               (b) Amersham shall expend, out-of-pocket, for promotion and
advertising of the Products, a minimum, [*]dollars ($[*]) in 2002, [*] dollars
($[*]) in 2003, [*] dollars ($[*]) in 2004, and [*] dollars ($[*]) in 2005. For
purposes of the foregoing sentence, such promotion and advertising expenditures
shall include the actual out of pocket costs of printing, mailing, advertising
placement, seminars and trade shows, and shall exclude all internal costs and
costs related to marketing, such as market surveys and the costs of designing
sales literature and

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<PAGE>
                                                                         Page 14

advertising. To the extent any such expenditures relate to Amersham products
other than the Products, such expenditure shall be pro rated to reflect the
relative exposure given to the Products compared to such other Amersham
Products.

               (c) Within sixty (60) days of the date hereof, Amersham shall
provide to Epoch a detailed plan and budget for the launch and subsequent
marketing of the Products by Amersham for discussion. Such plan and budget will
set out the activities and strategies to be undertaken by Amersham as generally
outlined in Section 7.3(a) above, and the use of the annual minimum amounts set
forth in Section 7.3(b) above. Within thirty (30) days after receipt of such
plan and budget, Epoch shall supply any comments thereon to Amersham and, to the
extent commercially reasonable, Amersham shall include any changes requested by
Epoch.

               (d) Amersham may indicate to the public that is an "Authorized
Distributor" of the Products in the Territory, and may indicate on its printed
materials and web site that it is an "Authorized Distributor" of Products and,
subject to Epoch's prior approval, may have Epoch Marks included thereon.

        7.4 MINIMUM PURCHASES. Amersham shall purchase the amounts of Products
pursuant to the binding forecasts set forth in Section 3.3 above.

        7.5 MINIMUM ANNUAL SALES. In the event that Amersham's revenue from
sales of Products to its non-Affiliate customers do not exceed the amounts set
forth below:

<TABLE>
<CAPTION>
               Calendar Year                       Annual Minimum Revenue
               -------------                       ----------------------
               <S>                                 <C>
               2002                                $[*]
               2003                                $[*]
               2004                                $[*]
               2005                                $[*]
</TABLE>

Epoch shall have the right to convert Amersham's rights under this Agreement to
non-exclusive. For purposes of this Section 7.5, Amersham's revenue shall mean
the amount actually received in a given period by Amersham or its Affiliates
from un-Affiliated Third Parties for purchases of Products, but excluding
transportation costs, packing and shipping charges, and taxes (including sales,
use, turnover value-added and excise taxes) and net of returns, rebates,
adjustments and discounts. Revenue received in currency other than U.S. dollars
shall be converted into U.S. dollars for such calculation on a quarterly basis,
based on the average exchange rate during the applicable quarter, according to
the exchange rates published in the U.S. edition of the Wall Street Journal.

Within thirty (30) days of the end of each calendar year, Amersham shall provide
Epoch with a report of revenues for such year. In the event that such sales do
not exceed the amount set forth above, Epoch may, within sixty (60) days of
receipt of such report, convert Amersham's rights under this Agreement to
non-exclusive, for the balance of the term.

        7.6 AUDIT RIGHTS. During the Term of this Agreement, Amersham shall
maintain complete and accurate records sufficient to enable Epoch to determine,
monitor and confirm the

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<PAGE>
                                                                         Page 15

accuracy of the report described in Section 7.5 above, for the three (3) prior
years. No more than annually, unless otherwise agreed in writing, at the request
and the expense of Epoch, upon at least ten (10) days' prior notice, Amersham
shall permit Epoch to examine these records solely to the extent necessary to
verify the accuracy of the report described in Section 7.5 above. If such
examination determines that Amersham did not meet the targets set forth in
Section 7.5, then Epoch may immediately terminate this Agreement or convert
Amersham's rights to non-exclusive.

        7.7 DISTRIBUTION ACTIVITIES. Amersham shall be responsible, at is own
expense, for all order entry, distribution, fulfillment, inventory management,
billing, collection of receivables, and processing of returns for the Products
in the Territory.

        7.8 TERMS AND CONDITIONS FOR RESALE OF PRODUCTS. Amersham shall sell all
Products to customers in accordance with terms and conditions of sale which are
in all material respects consistent with Amersham's standard terms and
conditions of sale, including, without limitation, those limited warranty and
limitation of liability provisions attached hereto as Exhibit G (the "Damage
Limitation Provisions"), which Damage Limitation Provisions shall include
Amersham's suppliers and Product manufacturers as parties with respect to whom
claims for such damages are to be limited in nature.

8. ADDITIONAL OBLIGATIONS OF EPOCH.

        8.1 MARKETING ASSISTANCE.

               (a) PROMOTIONAL MATERIALS. Epoch shall, at Epoch's expense,
design and furnish to Amersham, in electronic format, template Product sales
literature, advertising and promotional materials, as well as supporting Product
technical literature and materials, in all cases in the English language only.
In addition, Epoch shall cooperate with Amersham in preparing promotional
materials for use in the Territory.

               (b) PRODUCT POSITIONING AND PRICING. Epoch shall determine the
specific gene or SNP targets with respect to the Catalogue Probe Sets. Epoch
shall determine the List Price for Products as set forth in Section 4.1.

               (c) TRADE SHOWS. Amersham may request that Epoch provide a
representative to attend major international meeting trade shows that relate to
the Products and the Field. Subject to acceptance by Epoch of such request,
Amersham shall reimburse Epoch one hundred percent (100%) of its fully-burdened
personnel costs and expenses incurred in providing such Epoch representative.

<PAGE>
                                                                         Page 16

9.      TRAINING, TECHNICAL SALES AND SUPPORT.

        9.1 INITIAL LAUNCH TRAINING. Epoch agrees to provide an initial training
session of two or three days in duration for up to [*] ([*]) of Amersham's
product managers and technical sales personnel to train such Amersham personnel
to launch the Products, to promote the sale of Products and to perform technical
assistance and support for its customers. Such initial training session will be
conducted one time within three (3) months of the date of this Agreement at
Epoch's facilities in Bothell, Washington or, at Amersham's election and upon
agreement by and under the guidance of Epoch, at Amersham's facilities in
Piscataway, New Jersey. Amersham shall reimburse Epoch for its costs as set
forth below, including the reasonable travel and lodging expenses of Epoch
personnel in the event that such training is conducted at Amersham's facilities
in Piscataway, New Jersey. In all cases Amersham shall bear the cost of travel
and lodging for its own personnel). In addition, Epoch will provide Product
updates and service bulletins as they become available.

        9.2 NORTH AMERICAN TECHNICAL SUPPORT AND SALES ASSISTANCE.

               (a) GEOGRAPHIC COVERAGE. The provisions of this Section 9.2 shall
apply to activities in the United States and Canada.

               (b) SOFTWARE TECHNICAL SERVICES. For a period of three (3) months
from the date of this Agreement, Epoch will (i) provide Software Technical
Services to customers of Amersham, and (ii) train Amersham's internal technical
service personnel on the provision of Software Technical Services to customers.
Amersham shall reimburse Epoch one hundred percent (100%) of its fully-burdened
personnel costs and expenses incurred in provided such services and training,
such costs not to exceed $[*] per man hour (as adjusted annually at the end of
each calendar year based upon the increase indicated by the U.S. Department of
Labor Consumer Price Index in the prior year).

               (c) PRIMARY PRODUCT TECHNICAL SERVICES. For a period of three (3)
months from the date of this Agreement, Epoch will (i) provide Primary Product
Technical Services to customers of Amersham, and (ii) train Amersham's internal
technical service personnel on the provision of Primary Product Technical
Services to customers. In the event that after such three (3) month period,
Amersham continues to require Epoch to provide Primary Product Technical
Services, then Epoch shall use commercially reasonable efforts to do so, and
Amersham shall reimburse Epoch one hundred percent (100%) of its fully-burdened
personnel costs and expenses incurred in provided such services and training,
such costs not to exceed $[*] per man hour (as adjusted annually at the end of
each calendar year based upon the increase indicated by the U.S. Department of
Labor Consumer Price Index in the prior year).

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<PAGE>
                                                                         Page 17

               (d) ON SITE TECHNICAL SALES AND SUPPORT SERVICES. For a period of
up to one (1) year from the date of this Agreement, Epoch will provide at least
[*] ([*]) FTEs for On Site Technical Sales and Support Services to Key
Customers, and other important customers to the extent reasonably requested by
Amersham. During such period the special pricing provision in Section 4.1 shall
apply and Amersham shall not be entitled to any credits for volume discounts
under Section 4.2. However, if at the end of such period, (i) the additional
amounts paid by Amersham to Epoch because of the special pricing provisions and
the abatement of credits for volume discounts do not exceed (ii) the aggregate
number of hours expended by Epoch personnel for such services, times [*] dollars
($[*]) (as adjusted annually at the end of each calendar year following the date
hereof based upon the increase indicated by the U.S. Department of Labor
Consumer Price Index in the prior year), then Amersham shall reimburse Epoch for
such shortfall within thirty (30) days of receipt from Epoch of a report setting
out the amount of such shortfall, accompanied by such information in support
thereof as reasonably required by Amersham.

                      If during or at the end of such one (1) year period,
Amersham has at least [*] qualified FTE's providing On Site Technical Sales and
Support Services to the reasonable satisfaction of Epoch, then Epoch shall cease
providing such services and the special pricing provision in Section 4.1 shall
no longer apply and Amersham shall be entitled to credits for volume discounts
under Section 4.2.

                      If during or at the end of such one (1) year period,
Amersham does not have at least [*] qualified FTE's providing On Site Technical
Sales and Support Services to the reasonable satisfaction of Epoch, then Epoch
may continue to provide such services and (i) Amersham shall reimburse Epoch one
hundred percent (100%) of its fully-burdened personnel costs and expenses
incurred in provided such services, and (ii) the special pricing provision in
Section 4.1 shall no longer apply and Amersham shall be entitled to credits for
volume discounts under Section 4.2.

               (e) ADDITIONAL TRAINING. Additional training may be provided upon
request by Amersham and agreement by Epoch, provided that Amersham reimburses
Epoch one hundred percent (100%) of its fully-burdened personnel costs and
expenses, such costs not to exceed $[*] per man hour (as adjusted annually at
the end of each calendar year based upon the increase indicated by the U.S.
Department of Labor Consumer Price Index in the prior year).

               (f) REPORTS AND REIMBURSEMENT. Epoch shall periodically provide
Amersham a reasonably detailed accounting of its costs and expenses under
Sections 9.2 (b), (c), (d) and (e) and Amersham shall pay to Epoch the amounts
listed therein within thirty (30) days of receipt of such accounting.

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<PAGE>
                                                                         Page 18

        9.3 REST OF WORLD TECHNICAL SUPPORT AND SALES ASSISTANCE.

               (a) GEOGRAPHIC COVERAGE. The provisions of this Section 9.2 shall
apply to activities outside of the United States and Canada.

               (b) ADDITIONAL TERMS. Within ninety (90) days of the date hereof,
the parties shall negotiate in good faith technical support and sales assistance
for the Territory outside of the United States and Canada. The scope and
operational and financial responsibilities of parties shall be comparable in
scope to that set forth in Sections 9.2(b) through (g) above. When complete, the
parties agreement on such matters shall be appended to this Agreement as Exhibit
E.

               (c) FAILURE TO AGREE. In the event the parties do not come to
agreement as set forth in Section 9.3 (b) above, Epoch may provide such services
and Amersham shall reimburse Epoch one hundred percent (100%) of its
fully-burdened personnel costs and expenses. Epoch shall periodically provide
Amersham a reasonably detailed accounting of its costs and expenses in providing
such services and Amersham shall pay to Epoch the amounts listed therein within
thirty (30) days of receipt of such accounting.

10. REPRESENTATIONS AND WARRANTIES.

        10.1 EPOCH. Epoch represents and warrants to Amersham that (i) Epoch has
all necessary corporate power and authority to enter into this Agreement and to
perform all of its obligations hereunder, (ii) this Agreement has been duly
authorized, executed and delivered by Epoch, (iii) the execution, delivery and
performance by Epoch of this Agreement, and the consummation of the transactions
contemplated hereby, do not violate or conflict with the charter or bylaws of
Epoch, any material contract, agreement or instrument to which Epoch is a party
or by which it or its properties are bound, or any judgment, decree, order or
award of any court, governmental body or arbitrator by which Epoch is bound, or
any law, rule or regulation applicable to Epoch, (iv) to the best of Epoch's
actual knowledge, without investigation, the manufacture, distribution or sale
of the Products, and any parts thereof, does not constitute an infringement of
any patent, copyright, trademark, trade secret or other proprietary rights of a
third party under the laws of the country of destination and (v) there is no
pending or, to its best knowledge, there is no pending or threatened claim,
action, suit or proceeding involving a claim that the manufacture, distribution
or sale of any Products infringes or violates the intellectual, proprietary or
other rights of any other Person.

               (a) LIMITED PRODUCT WARRANTY. Epoch warrants to Amersham that,
upon delivery of any Products to Amersham, and for a period of [*] ([*]) months
thereafter, if stored by Amersham and its customers in accordance with the
Product storage and handling requirements

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<PAGE>
                                                                         Page 19

set forth on Exhibit F hereto, such Products will be free from defects in
material and workmanship, and will substantially meet the general MGB Eclipse
Probe specifications set forth on Exhibit F hereto and the Product
specifications described in the Certificate of Analysis with respect to such
Product. Epoch's sole liability and Amersham's and its customers' sole remedy in
the event of a Product failing to meet the foregoing limited warranty will be,
at Epoch's option, either to (i) replace such deficient Product in a timely
manner at its own expense or (ii) refund to Amersham all costs associated with
the purchase and shipping of such deficient Product.

               (b) NO OTHER WARRANTY. EXCEPT AS EXPRESSLY SET FORTH HEREIN,
EPOCH MAKES NO WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE PRODUCTS
INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, NONINFRINGEMENT
OR WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE.

        10.2 AMERSHAM. Amersham represents and warrants to Epoch that (a)
Amersham has all necessary corporate power and authority to enter into this
Agreement and to perform all of its obligations hereunder, (b) this Agreement
has been duly authorized, executed and delivered by Epoch, and (c) the
execution, delivery and performance by Amersham of this Agreement, and the
consummation of the transactions contemplated hereby, do not violate or conflict
with the Certificate of Incorporation or Bylaws of Amersham, any material
contract, agreement or instrument to which Amersham is a party or by which it or
its properties are bound, or any judgment, decree, order or award of any court,
governmental body or arbitrator by which Amersham is bound, or any law, rule or
regulation applicable to Amersham.

11. CONFIDENTIALITY.

        11.1 CONFIDENTIALITY. Each party acknowledges that, in the course of
performing its duties and obligations under this Agreement, certain information
that is confidential or proprietary to such party ("Confidential Information")
will be furnished by the other party or such other party's representatives. Each
party agrees that any Confidential Information furnished by the other party or
such other party's representatives will not be used by it or its representatives
except in connection with, and for the purposes of, the promotion, marketing,
distribution and sale or Products under this Agreement and, except as provided
herein, will not be disclosed by it or its representatives without the prior
written consent of the other party. Notwithstanding the foregoing, the parties
agree that all Confidential Information shall be clearly marked "CONFIDENTIAL"
or, if in furnished in oral form, shall be stated to be confidential by the
party disclosing such information at the time of such disclosure and reduced to
a writing by the party disclosing such information which is furnished to the
other party or such other party's representatives within forty-five (45) days
after such disclosure.

        11.2 EXCEPTIONS. The confidentiality obligations of each party under
Section 11.1 do not extend to any Confidential Information furnished by the
other party or such other party's representatives that (a) is or becomes
generally available to the public other than as a result of a disclosure by such
party or its representatives, (b) was available to such party or its
representatives on a non-confidential basis prior to its disclosure thereto by
the other party or such other party's representatives, (c) was independently
developed without the use of the other party's

<PAGE>
                                                                         Page 20

Confidential Information by representatives of such party who did not have
access to the other party's Confidential Information, as established by
contemporaneous written records, or (d) becomes available to such party or its
representatives on an non-confidential basis from a source other than the other
party or such other party's representatives; provided, however, that such source
is not bound by a confidentiality agreement with the other party or such other
party's representatives.

        11.3 COMPELLED DISCLOSURE. In the event that either party or its
representatives are requested or become legally compelled (by oral questions,
interrogatories, requests for information or document subpoena, civil
investigative demand or similar process) to disclose any Confidential
Information furnished by the other party or such other party's representatives
or the fact that such Confidential Information has been made available to it,
such party agrees that it or its representatives, as the case may be, will
provide the other party with prompt written notice of such request(s) so that
the other party may seek a protective order or other appropriate remedy and/or
waive compliance with the provisions of this Agreement. In the event that such
protective order or other remedy is not obtained, or that the other party waives
compliance with the provisions of this Agreement, such party agrees that it will
furnish only that portion of such Confidential Information that is legally
required and will exercise its best efforts to obtain reliable assurance that
confidential treatment will be accorded to that portion of such Confidential
Information and other information being disclosed.

        11.4 SURVIVAL. The obligations of the parties under this Section 11
shall survive the expiration or earlier termination of this Agreement for a
period of [*] years.

12. INDEMNIFICATION; INSURANCE.

        12.1 EPOCH INDEMNITY. Epoch agrees to indemnify, defend and hold
harmless Amersham and its Affiliates from and against any claims, losses,
damages, liabilities, causes of action, suits, costs and expenses, including all
reasonable attorneys' fees and disbursements of counsel and expenses of
investigation, incurred by Amersham or such Affiliates arising out any third
party claim relating to:

               (a) any breach by Epoch of its material representations,
warranties, covenants and agreements under this Agreement;

               (b) any claim, action, suit or proceeding brought, or threatened
to be brought, against Amersham or its Affiliates by[*], alleging that the use
of any Product, when used in accordance with the instructions for use provided
by Epoch pursuant to Section 2.6 hereof, violates the terms of that certain
license agreement by and between Epoch and [*]dated as of [*].

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<PAGE>
                                                                         Page 21

               (c) Amersham's purchase, use or possession of the Products, or
its customers' purchase, use, possession or disposal of the Products provided
under this Agreement (in all cases, only when used in accordance with the
instructions for use provided by Epoch pursuant to Section 2.6 hereof, in the
Field and in accordance with the terms of this Agreement); except where arising
from breach of this Agreement by Amersham or the bad faith, negligence or
willful default of Amersham, its Affiliates or its customers.

               (d) any third party claim, action, suit or proceeding brought, or
threatened to be brought, against Amersham or any of their Affiliates alleging
that the marketing, distribution, use or sale of any Products (in all cases,
only when used in accordance with the instructions for use provided by Epoch
pursuant to Section 2.6 hereof, in the Field and in accordance with the terms of
this Agreement) infringes or violates any U.S. or European patent or trademark
of any third party (except where such infringement arose as a result of Epoch
having followed a design or instruction furnished by Amersham or its Affiliates
or as a result of the independent negligence of Amersham, its Affiliates or its
customers, or unless Epoch to the best of its knowledge did not know of such
infringement).

        In the event that the use of a Product (when used in accordance with the
instructions for use provided by Epoch pursuant to Section 2.6 hereof) is
enjoined as infringing against any third party U.S. or European patent or
trademark (except where such infringement arose as a result of Epoch having
followed a design or instruction furnished by Amersham or its Affiliates or as a
result of the independent negligence of Amersham, its Affiliates or its
customers, or unless Epoch to the best of its knowledge did not know of such
infringement), Epoch shall, as soon as practicable, at its own option and
expense, either: (i) procure the right for the Amersham to continue to sell the
infringing Product, (ii) replace the infringing Product with a suitable
non-infringing Product, or (iii) refund amounts paid by Amersham to Epoch for
such infringing Products sold to customers and unused as of such date, accept
the return of any such unsold infringing Products from Amersham, and compensate
Amersham for any costs or expenses directly attributable to refunds made to
Amersham's customers upon return of an affected Product. Epoch's indemnification
obligations pursuant to Section 12.1(c) and 12.1(d) hereof with respect to a
particular Product or third party claim shall be contingent upon Amersham
meeting its obligations pursuant to Section 7.8 hereof with respect to such
Product and such third party to which such claim relates.

        12.2 AMERSHAM INDEMNITY. Amersham agrees to indemnify, defend and hold
harmless Epoch and its Affiliates from and against any claims, losses, damages,
liabilities, causes of action, suits, costs and expenses, including all
reasonable attorneys' fees and disbursements of counsel and expenses of
investigation, incurred by Epoch or such Affiliates arising out of a third party
claim relating to any breach by Amersham of its material representations,
warranties, covenants and agreements under this Agreement.

        12.3 CLAIMS FOR INDEMNIFICATION. Whenever any indemnification claim
arises under this Agreement, the party seeking indemnification (the "Indemnified
Party") shall promptly notify the other party (the "Indemnifying Party") of the
claim and, when known, the facts constituting the basis of such claim; provided,
however, that failure to give such notice shall not relieve the Indemnifying
Party of its obligation hereunder unless and to the extent that such failure

<PAGE>
                                                                         Page 22

substantially prejudices the Indemnifying Party. The Indemnifying Party may,
upon prior written notice to the Indemnified Party, assume the defense of such
claim with counsel reasonably satisfactory to the Indemnified Party, and shall
thereafter be liable for all expenses incurred in connection with defense
thereof, including attorneys' fees and expenses; provided, however, that if the
Indemnifying Party assumes the defense of any such claim, the Indemnified Party
may participate in such defense at its own expense and with counsel of its
choice; provided further, however, that if there are one or more legal defenses
available to the Indemnified Party that conflict with those available to the
Indemnifying Party or there exists any other conflict of interest, the
Indemnifying Party shall not have the right to assume the defense of such claim
but the Indemnified Party shall have the right to employ separate counsel at the
expense of the Indemnifying Party and to participate in the defense thereof. If
the Indemnifying Party elects to control the defense of such claim, it shall do
so diligently and shall have the right to settle any claim for monetary damages,
provided such settlement includes a complete and absolute release of the
Indemnified Party. Notwithstanding anything to the contrary, the Indemnifying
Party may not settle any claims for fines, penalties or the like without the
prior written consent of the Indemnified Party.

        12.4 THIRD PARTY INFRINGEMENT. In the case of any infringement or
violation by any third party of any distribution or other rights granted to
Amersham hereunder, Epoch shall have the right, but not the obligation, at
Epoch's expense, to cause such third party to cease such infringement and to
otherwise enforce such rights. Each party shall promptly notify the other of any
such infringement or violation and Epoch shall keep Amersham informed as to the
prosecution of any action for such enforcement. Amersham shall assist Epoch as
reasonably requested in taking any such actions against any such infringer and
may join with Epoch to recover lost profits in any action, suit or proceeding
commenced, or claim made, by Epoch against such infringer. If Epoch fails to
bring an action or proceeding with respect the foregoing within: (a) sixty (60)
business days following the notice of alleged infringement or violation or (b)
ten (10) days before the time limit, if any, set forth in the appropriate laws
and regulations for the filing of such actions, whichever comes first, Amersham
shall have the right to bring and control any such action, by counsel of its own
choice, at Amersham's own expense. In such event, Epoch shall assist Amersham as
reasonably requested in taking any such actions against any such infringer and
may join with Amersham to recover lost profits in any action, suit or proceeding
commenced, or claim made, by Amersham against such infringer. Any amounts
recovered as a result of any such action, suit, proceeding or claim shall be
applied, first, to reimburse Epoch and Amersham for their out-of-pocket costs
and expenses incurred in connection therewith, and, second, to compensate Epoch
and Amersham for any lost profits resulting from such infringement as may be
agreed upon by the parties.

        12.5 LIMITATION ON LIABILITY. IN NO EVENT SHALL EITHER PARTY BE LIABLE
TO THE OTHER PARTY HERETO OR ITS AFFILIATES FOR ANY INDIRECT, SPECIAL,
CONSEQUENTIAL OR INCIDENTAL DAMAGES, HOWEVER CAUSED AND BASED ON ANY THEORY OF
LIABILITY, ARISING OUT OF THIS AGREEMENT, THE PERFORMANCE BY SUCH PARTY OF ITS
OBLIGATIONS HEREUNDER OR THE MARKETING, DISTRIBUTION OR SALE OF PRODUCTS, AND
WHETHER OR NOT THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
THIS

<PAGE>
                                                                         Page 23

LIMITATION SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY
LIMITED REMEDY PROVIDED FOR HEREIN.

13. TERM AND TERMINATION.

        13.1 TERM. The term of this Agreement shall commence on the date hereof
and shall continue until December 31, 2005, unless earlier terminated pursuant
to Section 13.2. This term of this Agreement may be extended and renewed for
successive one (1) year periods prior to the expiration of this Agreement by
mutual agreement of the parties.

        13.2 TERMINATION OF AGREEMENT. This Agreement may be terminated as
follows:

               (a) The parties may terminate this Agreement upon their mutual
written agreement.

               (b) Epoch may terminate this Agreement if Amersham breaches any
of its material representations, warranties, covenants or obligations under this
Agreement and such breach continues for a period of thirty (30) days following
Amersham's receipt of written notice from Epoch setting forth the nature of such
breach; provided, however, that in the event such breach is not cured within
such thirty (30) day period, Epoch may not terminate this Agreement if Amersham
promptly commences to cure such breach within such thirty (30)day period and
thereafter diligently pursues such cure to completion; provided further,
however, that the cure period for any such breach shall not exceed sixty (60)
days from the date of Amersham's receipt of written notice from Epoch.

               (c) Amersham may terminate this Agreement if Epoch breaches any
of its material representations, warranties, covenants or obligations under this
Agreement and such breach continues for a period of thirty (30) days following
Epoch's receipt of written notice from Amersham setting forth the nature of such
breach; provided, however, that in the event such breach is not cured within
such thirty (30) day period, Amersham may not terminate this Agreement if Epoch
promptly commences to cure such breach within such thirty (30) day period and
thereafter diligently pursues such cure to completion; provided further,
however, that the cure period for any such breach shall not exceed sixty (60)
days from the date of Epoch's receipt of written notice from Amersham.

               (d) Either party may terminate immediately this Agreement by
written notice upon the occurrence of any of the following events: (i) the other
party is or becomes insolvent or unable to pay its debts as they become due
within the meaning of the United States Bankruptcy Code (or any successor
statute or foreign equivalent); or (ii) the other party appoints or has
appointed a receiver for all or substantially all of its assets, or makes an
assignment for the benefit of its creditors; or (iii) the other party files a
voluntary petition under the United States Bankruptcy Code (or any successor
statute or foreign equivalent); or (iv) the other party has filed against it an
involuntary petition under the United States Bankruptcy Code (or any successor
statute or foreign equivalent), and such petition is not dismissed within ninety
(90) days.

        13.3 CHANGE IN CONTROL. In the event of a Change in Control of Epoch and
the surviving or controlling entity desires to distribute Products in any
country in the Territory, then

<PAGE>
                                                                         Page 24

Epoch shall have the right to terminate this Agreement with Amersham, with
respect to such country or countries, in accordance with the following terms:

               (a) Epoch shall provide Amersham with a written notice of
termination of this Agreement (the "CIC Notice"), to become effective one
hundred eighty (180) days from the date of the notice (the "Notice Period");

               (b) Upon issuance of the CIC Notice, Epoch will accept the return
of any unused Products for such country or countries, in its original packaging,
for credit at the original price paid by Amersham for such Products; and

               (c) Provided that as of the effective date of termination,
Amersham's distribution rights have not been converted to non-exclusive pursuant
to the terms of this Agreement, Epoch shall pay to Amersham a "Termination Fee."
The Termination Fee shall be calculated based upon the following percentages of
Amersham's revenue from sales of Products to its non-Affiliate customers in the
country or countries in which Epoch has terminated Amersham's distribution
rights (excluding transportation costs, packing and shipping charges, and taxes
(including sales, use, turnover value-added and excise taxes) and net of
returns, rebates, adjustments and discounts) ("Net Revenue"). Net Revenue
received in currency other than U.S. dollars shall be converted into U.S.
dollars for such calculation on a quarterly basis, based on the average exchange
rate during the applicable quarter, according to the exchange rates published in
the U.S. edition of the Wall Street Journal:

<TABLE>
<CAPTION>
                                             Amount Payable as a % of Net Revenues in 12
                                                           Months Preceding
                                             Effective Date of Termination in Applicable
          Effective Date of Termination                  Country or Countries
          -----------------------------      -------------------------------------------
        <S>                                  <C>
                      2002                                       [*]%
                      2003                                       [*]%
                      2004                                       [*]%
        January 1, 2005 -- June 30, 2005                         [*]%
        July 1, 2005 -- December 31, 2005                        [*]%
</TABLE>

               Notwithstanding any of the foregoing, in no event shall the
Termination Fee exceed [*] percent ([*]%) of the consideration received by Epoch
or its stockholders pursuant to the Change in Control transaction, as calculated
as of the closing date of such transaction.

               The Termination Fee shall be payable to Amersham by Epoch or
Epoch's successor within thirty (30) days following termination of this
Agreement. Amersham shall provide Epoch with a report evidencing Amersham's Net
Revenues for the applicable period and maintain complete and accurate records
sufficient to enable Epoch to determine and confirm the

----------

* CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH COMMISSION.

<PAGE>
                                                                         Page 25

accuracy of such report, and at the request and the expense of Epoch, upon at
least ten (10) days' prior notice, Amersham shall permit Epoch to examine these
records solely to the extent necessary to verify the accuracy of the report
above.

        13.4 EFFECT OF TERMINATION. The expiration or earlier termination of
this Agreement shall not relieve any party of any of its rights or liabilities
arising prior to or upon such expiration or earlier termination. In addition,
the provisions of Sections 10.1 and 10.1(b), and Articles 11 and 12 shall
survive any expiration and termination. Within ten (10) business days following
the effective date of the expiration or earlier termination of this Agreement,
Amersham shall provide to Epoch a complete inventory of Products in Amersham's
possession, in transit between Amersham's authorized locations or in transit to
Amersham from Epoch or otherwise in Amersham's control. Within twenty (20) days
following the effective date of expiration or earlier termination, Epoch may
repurchase all or part of Amersham's then-existing inventory at a price equal to
the price actually paid by Amersham (plus all taxes, duties, freight and
insurance expenses); provided, however, that Amersham may, at its election,
continue to sell Products within the Territory after the expiration or earlier
termination of this Agreement for ninety (90) days following the effective date
of expiration or earlier termination.

14. GENERAL PROVISIONS.

        14.1 FORCE MAJEURE. Neither party shall be liable to the other party for
non-performance of or delay in performing its obligations hereunder (other than
the payment of money) to the extent that performance is rendered impossible by
strike, riot, war, acts of God, earthquake, fire, flood, governmental acts or
orders or restrictions, failure of Epoch's suppliers or vendors to the extent
beyond the reasonable control of Epoch, or any other reason to the extent that
the failure to perform is beyond the reasonable control of the non-performing
party.

        14.2 INDEPENDENT CONTRACTORS. The relationship of Epoch and Amersham
established by this Agreement is that of independent contractors, and nothing
shall be deemed to create or imply any employer/employee, principal/agent,
partner/partner or co-venturer relationship, or that the parties are
participants in a common undertaking. Neither party shall have the right to
direct or control the activities of the other party or incur or assume any
obligation on behalf of the other party or bind such other party to any
obligation for any purpose whatsoever.

        14.3 GOVERNING LAW. This Agreement and all acts and transactions
pursuant hereto and the rights and obligations of the parties hereto shall be
governed, construed and interpreted in accordance with the laws of the State of
Washington, without reference to rules of conflicts or choice of laws.

        14.4 ENTIRE AGREEMENT. This Agreement, including the Exhibits, set forth
the entire agreement and understanding of the parties relating to the subject
matter hereof and supersedes all prior oral and written, and all contemporary
oral, negotiations, agreements and understandings with respect to the same.

        14.5 NOTICES. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given (and shall be
deemed to have been duly given upon receipt) by delivery in person, by cable,
telegram, facsimile or telex, or by registered or

<PAGE>
                                                                         Page 26

certified mail (postage prepaid, return receipt requested), to the other party
at the following address (or at such other address for which such party gives
notice hereunder):

        If to Amersham, to:           AMERSHAM BIOSCIENCES CORP.
                                      800 Centennial Avenue PO Box 1327
                                      Piscataway, New Jersey 08855
                                      Attention:  General Counsel
                                      Telephone:  [*]
                                      Telecopier: [*]

        If to Epoch, to:              EPOCH BIOSCIENCES, INC.
                                      21720 23rd Drive, S.E., Suite 150
                                      Bothell, Washington  98021
                                      Attention:  Chief Executive Officer
                                      Telephone:  [*]
                                      Telecopier: [*]

        14.6 ASSIGNMENT AND BINDING EFFECT. Except as otherwise provided in this
Agreement, neither party may, directly or indirectly, assign its rights or
delegate its duties under this Agreement without the prior written consent of
the other party, provided however, this Agreement may be assigned by Epoch in
connection with any sale or transfer of the business to which it relates. No
permitted assignment of rights or delegation of duties under this Agreement
shall relieve the assigning or delegating party of its liabilities hereunder.
This Agreement is binding upon, and inures to the benefit of, the parties and
their respective successors and permitted assigns.

        14.7 PARTIAL INVALIDITY. If any provision of this Agreement is held to
be invalid by a court of competent jurisdiction, then the remaining provisions
shall remain, nevertheless, in full force and effect. The parties agree to
renegotiate in good faith any term held invalid and to be bound by the mutually
agreed substitute provision in order to give the most approximate effect
intended by the parties.

14.8 NO WAIVER; AMENDMENT. No waiver of any term or condition of this Agreement
shall be valid or binding on any party unless agreed to in writing by the party
to be charged. The failure of either party to enforce at any time any of the
provisions of the Agreement, or the failure to require at any time performance
by the other party of any of the provisions of this Agreement, shall in no way
be construed to be a present or future waiver of such provisions, nor in any way

----------

* CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH COMMISSION.

<PAGE>
                                                                         Page 27

affect the validity of either party to enforce each and every such provision
thereafter. This Agreement may not be amended or modified except by the written
agreement of the parties.

        14.9 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which, taken
together, shall constitute one instrument.

        14.10 CONSTRUCTION; INTERPRETATION. The headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. Any article, section, recital,
exhibit, schedule and party references are to this Agreement unless otherwise
stated. No party, nor its counsel, shall be deemed the drafter of this Agreement
for purposes of construing the provisions of this Agreement, and all provisions
of this Agreement shall be construed in accordance with their fair meaning, and
not strictly for or against any party.

        14.11 FURTHER ASSURANCES. Each party agrees to cooperate fully with the
other and execute such instruments, documents and agreements and take such
further actions to carry out the intents and purposes of this Agreement.

        14.12 PRESS RELEASES AND ANNOUNCEMENTS. Except as may be contemplated
hereunder, neither party may issue any press release or make any public
announcement concerning the transactions contemplated by this Agreement without
the prior consent of the other party, except for any releases or announcements
which may be required by or, in such party's discretion, reasonably necessary
under applicable law, in which case the party proposing to make such release or
announcement will allow the other party a reasonable opportunity to review and
comment on such release or announcement in advance of such issuance or making.

        14.13 ATTORNEYS' FEES. In the event of any action, suit or proceeding,
the prevailing party shall be entitled, in addition to any other rights and
remedies it may have, to reimbursement for its expenses, including court costs
and reasonable fees of attorneys and other professionals.

        14.14 ALTERNATIVE DISPUTE RESOLUTION. The parties shall initially
attempt in good faith to resolve any significant controversy, claim, allegation
of breach or dispute arising out of or relating to this Agreement (hereinafter
collectively referred to as a "Dispute") through negotiations between senior
executives of Amersham and Epoch. If the Dispute is not resolved within thirty
(30) days (or such other period of time mutually agreed upon by the parties) of
notice of the Dispute (the "Executive Resolution Period"), then the parties
agree to submit the Dispute to arbitration as provided herein. Unless otherwise
mutually agreed by the parties, only if the Dispute is not resolved through
negotiations as set forth herein, may a party resort to arbitration.

               (a) Any controversy, dispute or claim arising out of or relating
to this Agreement (or the breach hereof) that cannot be resolved by good faith
negotiation between or among the parties shall be finally submitted to the
American Arbitration Association ("AAA") for final and binding arbitration
pursuant to the Commercial Arbitration Rules of the AAA. Such arbitration shall
be held in Seattle, Washington, before a single arbitrator who shall be a
retired federal or Washington state judge. The arbitrator may enter a default
decision against any party who fails to participate in the arbitration
proceedings. The decision of the arbitrator shall be final,

<PAGE>
                                                                         Page 28

unappealable and binding, and judgment on the award rendered by the arbitrator
may be entered in any court having jurisdiction thereof. The arbitrator shall be
authorized to award any relief, whether legal or equitable, to the party so
entitled to such relief.

               (b) In respect of any suit, action or other proceeding relating
to the enforcement of any award rendered by the arbitrator, each party
irrevocably submits to the non-exclusive jurisdiction of any state or federal
court located in the City of Seattle, State of Washington.

               (c) The arbitrator shall be authorized to apportion its fees and
expenses and the reasonable attorney's fees and expenses of the parties as the
arbitrator deems appropriate. In the absence of any such apportionment, the
prevailing party in any arbitration or other proceeding shall be entitled, in
addition to any other rights and remedies it may have, to reimbursement for its
expenses, including court costs and reasonable fees of attorneys and other
professionals.

               (d) The parties agree that this Section 14.14 has been included
to resolve rapidly and inexpensively any claims or disputes between them with
respect to this Agreement, and that this Section 14.14 shall be grounds for
dismissal of any action commenced by any party in any court with respect to any
controversy, dispute or claim arising out of or relating to this Agreement (or
the breach hereof).

<PAGE>
                                                                         Page 29

        IN WITNESS WHEREOF, each of the undersigned has caused this Exclusive
Distribution and License Agreement to be duly executed as of the date first
written above.

                                     AMERSHAM BIOSCIENCES CORP.
                                     a Delaware corporation

                                     By: /s/ MARTIN TRICARICO
                                        ---------------------------------------

                                     Name: Martin Tricarico
                                          --------------------------------------

                                     Title: Vice President, Business Development
                                           -------------------------------------

                                     EPOCH BIOSCIENCES, INC.,
                                     a Delaware corporation

                                     By:  /s/ WILLIAM G. GERBER
                                        ----------------------------------------

                                     Name:  William G. Gerber
                                          --------------------------------------

                                     Title: President & Chief Executive Officer
                                           -------------------------------------

<PAGE>
                                                                         Page 30

                                    EXHIBIT C

                          MGB ECLIPSE SOFTWARE LICENSE

                     MGB ECLIPSE SOFTWARE LICENSE AGREEMENT

This MGB Eclipse Software License Agreement ("Agreement") is made on July 25th,
2002 (the "Effective Date") between Epoch Biosciences, Inc. ("Licensor"), a
Delaware corporation, and Amersham Biosciences Corp., (the "Licensee"), a
Delaware corporation.

                                    RECITALS

A. Licensor has certain rights and interests in certain computer software which
provides a means to choose oligonucleotides for DNA and RNA based laboratory
methods.

B. Licensee is engaged in the business of providing products and technologies
for analyzing genetic variations.

C. Licensor and Licensee are parties to that certain Distribution and License
Agreement (the "Distribution Agreement"), of even date herewith, pursuant to
which Licensor has appointed Licensee as its exclusive distributor of certain of
its Products in a designated Field (each as defined in the Distribution
Agreement), and Licensee has accepted such appointment.

D. Licensor desires to license to Licensee certain of its computer software on a
limited basis in order to enable Licensee to use such software in the manner
contemplated herein, and Licensee desires to accept such license on the terms
set forth herein.

NOW THEREFORE, in consideration of the terms and conditions of this Agreement,
the parties agree as follows:

1. Grant of License and Use of Product.

(a) Subject to the terms, conditions and restrictions set forth herein, Licensor
grants to Licensee a limited, revocable, non-exclusive, non-sublicensable and
nontransferable license to (i) install and execute a single copy of the software
described on Appendix A hereto in binary executable form only (the "Software"),
on computers or servers owned and operated by or on behalf of Licensee which
host web site(s) owned and operated by or on behalf of Licensee (which web
site(s) are accessible via the Internet using an industry standard web browser),
to enable customers of Licensee to access and use the Software via such web
site(s) to choose oligonucleotides for DNA and RNA based laboratory methods,
(ii) utilize the ordering function of the Software to place orders with Licensor
for Licensor's custom oligonucleotide hybridization probes, subject to the terms
of the Distribution Agreement, and (iii) to use any accompanying documentation
provided to Licensee by Licensor in connection with the license granted in
subsection (i) above. Licensee may make one copy of the Software for backup or
archival purposes; provided that such copy is subject to this Agreement and
contains all proprietary notices. Licensee may not make any other copies of the
Software or any part thereof without the prior permission of Licensor.

(b) Without limiting the foregoing, Licensee may not, and may not permit or
cause others to:

                                    Page 30
<PAGE>
                                                                         Page 31

(i) alter or modify, or create derivative works from the Software or any
accompanying documentation;

(ii) copy any portion of the code that constitutes the Software;

(iii) copy or use any of the parameters or algorithms within the Software for
any purpose;

(iv) publish, rent, sell, loan, lease, distribute, redistribute, transmit,
license, sublicense or otherwise transfer or assign the Software or any
accompanying documentation whether by operation of law or otherwise, with or
without consideration, and through any means including without limitation the
Internet or other electronic means (except as expressly set forth in Section
1(a)(i));

(v) translate, decipher, reverse assemble, reverse compile or reverse engineer
the Software, or otherwise attempt to discover any source code or underlying
Proprietary Information (as that term is defined below);

(vi) publish or provide any results of any tests run, accounts or other
information regarding the Software to any third party without Licensor's prior
written consent or permit any third party to perform such tests; or

(vii) delete, remove or obscure any proprietary notices of Licensor on the
Software or any accompanying documentation.

2. Ownership. Title to, ownership of and intellectual property rights in the
Software, any accompanying documentation, Proprietary Information (as defined
below) and all copies thereof shall, as between Licensor and Licensee, be and at
all times remain with Licensor or its designees, as applicable. All rights not
expressly licensed herein are reserved to Licensor. Any corrections, bug fixes,
enhancements, updates, modifications (including custom modifications),
materials, information, ideas, concepts or know-how to the Software or any
accompanying documentation, provided by Licensee or otherwise, shall be owned by
Licensor, as applicable. Licensee hereby acknowledges that this Agreement is a
license agreement and not an agreement for sale.

3. Consideration. The rights granted to Licensee hereunder are in consideration
of the mutual promises and obligations of the parties pursuant to the
Distribution Agreement. This Agreement does not grant to Licensee the right to
any maintenance or support services, except as provided for in the Distribution
Agreement, or to any enhancement or updates of the Software, other than updates
to the Probeity For Eclipse version of the Software developed by Epoch.

4. Acknowledgments. Licensee expressly acknowledges that Licensee is solely
responsible for any use of the Software, and such use will be entirely at
Licensee's own risk. Licensee agrees that the Software shall not be used for or
in connection with any illegal purpose (including but not limited to
intellectual property infringement, fraud or defamation).

5. Nondisclosure. Licensee acknowledges that, in the course of using the
Software pursuant to this Agreement, Licensee may obtain confidential or
proprietary information relating to the Software, any accompanying documentation
or Licensor, including without limitation all technical, know-how, parameters,
settings, algorithms and specifications ("Proprietary Information"). Such
Proprietary Information shall belong solely to Licensor. Proprietary Information
shall not include information that is or becomes publicly known through no
wrongful act of Licensee or other licensees of the Software. Licensee shall not
use or disclose

                                    Page 31
<PAGE>
                                                                         Page 32

Proprietary Information to third parties without the written consent of
Licensor, and Licensee agrees to undertake reasonable measures to maintain the
Proprietary Information in confidence. Licensee agrees to report immediately to
Licensor any unauthorized use or disclosure of Proprietary Information of which
Licensee has actual knowledge.

6. Warranty Disclaimer. Licensor has no control over the conditions under which
Licensee uses the Software and does not and cannot warrant the results obtained
or not obtained by such use.

LICENSOR HEREBY EXPRESSLY DISCLAIMS ANY WARRANTY THAT LICENSEE'S USE OF THE
SOFTWARE WILL BE UNINTERRUPTED OR THAT THE OPERATION OF THE SOFTWARE WILL BE
ERROR-FREE OR SECURE. LICENSOR FURTHER DISCLAIMS ALL WARRANTIES, EXPRESS OR
IMPLIED, RELATING TO THE SOFTWARE INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES
AGAINST INFRINGEMENT OF THIRD PARTY RIGHTS, MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE. LICENSEE ACKNOWLEDGES THAT THE SOFTWARE IS PROVIDED "AS IS"
AND MAY NOT BE FUNCTIONAL ON ANY MACHINE OR IN ANY ENVIRONMENT. LICENSEE ASSUMES
ALL RISK OF THE USE, QUALITY, AND PERFORMANCE OF THE SOFTWARE.

7. Limitation of Remedies and Damages. IN NO EVENT SHALL LICENSOR OR ITS
AFFILIATES, OR ANY OF THEIR DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS BE
RESPONSIBLE OR LIABLE FOR ANY LOST PROFITS, LOSS OF GOODWILL, WORK STOPPAGE,
COMPUTER FAILURE, LOSS OF INFORMATION, LOSS OF DATA, OR ANY DIRECT, INDIRECT,
INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY, PUNITIVE OR OTHER DAMAGES (EVEN
IF LICENSOR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES) UNDER ANY
CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY ARISING OUT OF OR
RELATING IN ANY WAY TO THE SOFTWARE OR ANY OTHER SUBJECT MATTER OF THIS
AGREEMENT. LICENSOR SHALL NOT BE LIABLE FOR ANY LOSS OR DAMAGE CAUSED BY DELAY
IN FURNISHING THE SOFTWARE OR ANY OTHER PERFORMANCE UNDER THIS AGREEMENT.
LICENSEE'S SOLE REMEDY FOR DISSATISFACTION WITH THE SOFTWARE IS TO TERMINATE
THIS AGREEMENT PURSUANT TO SECTION 14 BELOW. IN NO EVENT SHALL LICENSOR'S
LIABILITY EXCEED THE AMOUNT, IF ANY, THAT LICENSEE HAS ACTUALLY PAID TO LICENSOR
FOR THE RIGHT TO USE THE SOFTWARE. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION
OR LIMITATION OF WARRANTY OR LIABILITY, SO THE FOREGOING EXCLUSIONS AND
LIMITATIONS MAY NOT APPLY TO LICENSEE.

8. Indemnification. Licensee shall defend, indemnify and hold Licensor harmless
against any and all claims, damages, losses, costs or other expenses (including
reasonable attorneys' fees) that arise directly or indirectly out of or from
Licensee's breach of this Agreement or the use of the Software by Licensee or by
others to whom Licensee has provided access to the Software.

9. Nonassignability. Neither Licensee's rights nor Licensee's obligations
arising under this Agreement are assignable or otherwise transferable by
Licensee (whether voluntarily or by operation of law) without the express
written consent of Licensor, and any such prohibited assignment or transfer
shall be void and without effect. If Licensor should so consent in writing, the
assignee shall be bound by all of the terms and conditions of this Agreement.
Licensor may assign any or all of its rights or obligations hereunder without
the consent of Licensee. Subject to

                                    Page 32
<PAGE>
                                                                         Page 33

the provisions of this Section 9, this Agreement shall inure to the benefit of
and be binding upon each of the parties hereto and their respective permitted
successors and assigns.

10. Government Licensee. If Licensee is licensing the Software on behalf of any
unit or agency of the United States Government, the following applies: The
Software and any Proprietary Information is provided with RESTRICTED RIGHTS.
Use, duplication or disclosure by the Government is subject to restrictions as
set forth in Subparagraphs (a) through (d) of the Commercial Computer-Restricted
Rights clause at FAR 52.227-19 when applicable, or in Subparagraph 252.227-7013
(c)(1)(ii) of the Rights in Technical Data and Computer Software at DFARS, and
in similar clauses in the NASA FAR Supplement. Contractor/manufacturer is Epoch
Biosciences, Inc. at 21720 -- 23rd Drive SE, #150, Bothell, Washington 98021.

11. Applicable Law and Forum. This Agreement is entered into in the State of
Washington and shall be governed by and construed in accordance with the laws of
the State of Washington, exclusive of its choice of law rules. Each party to
this Agreement hereby submits to the exclusive jurisdiction of the state and
federal courts sitting in King County in the State of Washington for the purpose
of resolving any dispute arising under or relating to this Agreement, and each
party hereby waives any jurisdictional, venue or inconvenient forum objections
to such courts. In any action to enforce this Agreement, the prevailing party
will be entitled to costs and attorneys' fees.

12. Entire Agreement. The parties intend that the terms of this Agreement shall
be the final expression of their agreement with respect to the subject matter
hereof and may not be contradicted by evidence of any prior or contemporaneous
agreement. The parties further intend that this Agreement shall constitute the
complete and exclusive statement of its terms and that no extrinsic evidence
whatsoever may be introduced in any judicial, administrative, or other legal
proceeding involving this Agreement. Any modifications of this Agreement must be
in writing and signed by both parties hereto. In the event that any of the
provisions of this Agreement shall be held by a court or other tribunal of
competent jurisdiction to be unenforceable, such provisions shall be limited or
eliminated to the minimum extent necessary so that this Agreement shall
otherwise remain in full force and effect and enforceable. No waiver of any
breach of this Agreement shall be effective unless made in writing and signed by
an authorized representative of the waiving party.

13. Equitable Relief. Licensee acknowledges and agrees that, due to the unique
nature of the Software and Proprietary Information, there can be no adequate
remedy at law for any breach of its obligations hereunder, that any such breach
may allow Licensee or third parties to unfairly compete with Licensor resulting
in irreparable harm to, and therefore, that, upon any such breach or threat
thereof, Licensor shall be entitled to injunctions and other appropriate
equitable relief in addition to whatever remedies they may have at law.

14. Termination. This Agreement shall be effective upon the Effective Date, and
shall terminate concurrently with the termination of the Distribution Agreement.
This Agreement may also be terminated by Licensor immediately upon notice to
Licensee in the event of any breach by Licensee of the terms of this Agreement
or upon Licensee's insolvency, bankruptcy, suspension of business, assignment of
assets for the benefit of creditors, voluntary dissolution, or appointment of a
trustee for all or any substantial portion of Licensee's assets. In the event
that this Agreement is terminated for any reason, Licensee shall not be entitled
to any refund or credit

                                    Page 33
<PAGE>
                                                                         Page 34

of fees paid or payable hereunder. The following provisions shall survive
expiration or termination of this Agreement: Section 2 and Sections 4 through
19, inclusive.

Upon expiration or termination of this Agreement, Licensee will immediately
destroy or erase all copies of the Software and any Proprietary Information and,
upon Licensor's request, promptly confirm destruction of same by signing and
returning to Licensor an "affidavit of destruction" acceptable to Licensor.

15. Export Controls. Licensee acknowledges that none of the Software or
Proprietary Information may be downloaded, transferred or otherwise exported or
re-exported (i) into (or to a national or resident of) Cuba, Iran, Iraq, Libya,
North Korea, Sudan, Syria or any other country to which the United States has
embargoed goods; or (ii) to anyone on the U.S. Treasury Department's list of
Specially Designated Nationals or the U.S. Commerce Department's Table of Denial
Orders. Licensee represents and warrants that he/she/it is not located in, under
the control of, or a national or resident of any such country or on any such
list.

16. Taxes. Licensee will pay all federal, state and local sales, personal
property, ad valorem and any other taxes (but not including Licensor's income
taxes) arising as a result of this Agreement.

17. Relationship of Parties. The parties to this Agreement are independent
contractors. No joint venture, agency or partnership, express or implied, is
granted under this Agreement.

18. Headings. The headings used in this Agreement are for convenience only and
shall not be considered in construing or interpreting this Agreement.

19. Notices. Unless herein provided otherwise, any notices required or permitted
under this Agreement to either party shall be sent to by registered or certified
mail or by express, overnight delivery, to the addresses set forth below each
parties name on the signature page to this Agreement (or at such other address
of which a party may from time to time notify the other party).

                                    Page 34
<PAGE>
                                                                         Page 35

 IN WITNESS WHEREOF, the parties have executed this MGB Eclipse Software License
Agreement as of the Effective Date.

LICENSOR                                     LICENSEE
EPOCH BIOSCIENCES, INC.                      AMERSHAM BIOSCIENCES CORP.

By:  /s/ WILLIAM G. GERBER                   By:  /s/ MARTIN TRICARICO
    ------------------------------------         -------------------------------

Print Name:  William G. Gerber               Print Name:  Martin Tricarico
            ----------------------------                 -----------------------

Its: President & Chief Executive             Its: Vice President, Business
     Officer                                      Development
     -----------------------------------          ------------------------------

                                    Page 35
<PAGE>
                                                                         Page 36

                                   APPENDIX A
                                LICENSED SOFTWARE

1.      Licensed Software:
[*]

----------

* CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH COMMISSION.

                                    Page 36<PAGE>

                                                                  EXHIBIT 10.145

                            ASSET PURCHASE AGREEMENT

         THIS ASSET PURCHASE AGREEMENT, dated as of November 1, 2002, is entered
into by and among Associated Staffing Resources, Inc., a California corporation
which is a wholly owned subsidiary of OptimumCare Corporation ("Buyer"), and
Social Work Services, Inc., a California corporation ("Seller") and Kyle
Menichetti Krogh, the owner of all of the capital stock of Seller
("Shareholder"). Certain capitalized terms used herein are defined in Section
10.13 hereof.

         A.       Seller wishes to sell to Buyer, and Buyer wishes to purchase
from Seller, all of the Assets (as defined in Section 1.1 below) of Seller used
in the Seller's social worker staffing business (the "Business").

         B.       The parties hereto wish to make certain representations,
warranties, covenants and agreements in connection with the purchase of the
Assets and also to prescribe various conditions to such transaction.

         Accordingly, and in consideration of the representations, warranties,
covenants, agreements and conditions herein contained, the parties hereto agree
as follows:

         1. PURCHASE AND SALE OF ASSETS

                  1.1      Assets to be Acquired. Upon the terms and subject to
the conditions of this Agreement, Seller will sell, transfer, convey, assign and
deliver to Buyer, and Buyer will purchase from Seller, at the Closing, the
assets of Seller ("Assets"), wherever located and whether or not carried or
reflected on the books and records of Seller, including, without limitation the
following assets but not including the excluded assets set forth in Section 1.2
of this Agreement:

                           (a)      all prepayments, prepaid expenses and all
interests in insurance policies (including, without limitation, life insurance
policies but specifically excluding any employee benefit plans maintained
pursuant to insurance policies);

                           (b)      all equipment, fixtures, leasehold
improvements, trade fixtures, computers and related software and documentation,
and other tangible personal property;

                           (c)      all furniture;

                           (d)      all office and production supplies, spare
parts, other miscellaneous supplies and other tangible property of any kind
wherever located;

                           (e)      all of the proprietary and intellectual
rights (including, without limitation, the Proprietary Rights) and all of
Seller's other intangible property;
<PAGE>
                           (f)      all rights and obligations under (i) the
Standard Multi-Tenant Office Lease - Gross dated May 25, 2001 for the real
property located at 330 Main Street, Seal Beach, California (the "Real Property
Lease"), (ii) the Equipment Lease Agreement dated June 6, 2001 for a Savin 9922
copier (the "Copier Lease"), and (iii) any agreements for the utilization or
maintenance of telephone services or utilities services presently servicing the
premises covered by the Real Property Lease (the "Utilities Contracts"), as
described on the Disclosure Schedule attached hereto;

                           (g)      all rights and obligations under contracts,
agreements, licenses, leases (for both real and personal property), and other
legally binding arrangements, whether oral or written, other than those
described in 1.1 (f), that are listed or described on the Disclosure Schedule
attached hereto and all rights under commitments and orders for services
(including customers ("Facility Contracts"), professionals, advertising,
maintenance and other incidental services) relating to the Business
(collectively, the "Contracts"); provided that, rights and obligations under the
Contracts shall be included in the Business Assets if and only if so elected by
Buyer in its sole discretion which contracts shall be referred to as the
"Assumed Contracts". Notwithstanding anything else set forth in this Agreement,
the Assumed Contracts shall include the Facility Contracts, Real Property Lease,
the Copier Lease and the Utilities Contracts.

                           (h)      all lists and records pertaining to
customers, employees, suppliers, distributors, personnel and agents and all
other books, ledgers, files, documents, pricing schedules, employee and
contractor lists, manuals, correspondence, drawings and specifications, computer
programs, software; telephone numbers; and business records of every kind and
nature;

                           (i)      all creative materials (including, without
limitation, photographs, films, art work, color separations and the like),
recruiting processes, advertising and promotional materials and all other
printed or written materials;

                           (j)      all claims, refunds, credits, causes of
action, chooses in action, rights of recovery and rights of set-off of every
kind and nature which arise following the Closing;

                           (k)      the right to use the name "Social Work
Services"; and

                           (l)      all goodwill as a going concern of Seller,
all goodwill associated with the items in clauses (e) and (i) above and all
other intangible property of Seller, free and clear of all Liens.

                  1.2      Excluded Assets. Buyer has not agreed to purchase and
will not acquire the assets of Seller listed on Exhibit 1.2 to this Agreement
which shall be referred to as the "Excluded Assets".

                  1.3      No Liabilities Assumed. Except for the Assumed
Contracts, Buyer has not agreed to pay, will not be required to assume and will
have no liability or obligation, direct or indirect, absolute or contingent, for
the liabilities of Seller or any respective affiliates or associates, which
liabilities will, as between Seller, on the one hand, and Buyer, on the other
hand, remain the sole responsibility of, and will be satisfied by, Seller,
including without limitation:

                                       2
<PAGE>
                           (a)      any debt, liability or obligation of Seller
or any affiliates or associates, direct or indirect, known or unknown, fixed,
contingent or otherwise, that (i) is unrelated to the Assets; or (ii) relates to
the Assets and is based upon or arises from any act, omission, transaction,
circumstance, sale of goods or services, state of facts or other condition
occurring or existing on or before the Closing Date (as defined below), whether
or not then known, due or payable;

                           (b)      any obligation for Taxes related to any of
the Assets for any tax period or portion thereof ending on or before the
Effective Date (including the sales tax liability relating to or arising from
the transfer of Assets) and any obligation for other Taxes of Seller; and

                           (c)      any debt, liability or obligation, direct or
indirect, known or unknown, fixed, contingent or otherwise, based upon or
arising from any act, omission, transaction, circumstance, state of facts or
other condition occurring or existing on or before the Closing Date and relating
to any employee benefit plan, policy, practice or agreement to which Seller is a
party or under which Seller's employees or former employees is covered.

                  1.4      Purchase Price. Provided the contingent revenue goals
are met, the total consideration to be paid by Buyer to Seller for the Assets
(the "Purchase Price") will be two and one half (2 1/2) times the Weighted
Average of the "Adjusted EBITDA". For purposes of this Agreement, Adjusted
EBITDA will mean, for each of the three (3) periods identified below, the
reported net income, plus the corresponding interest expense, finance charges,
taxes, depreciation expense, amortization expense, auto expenses, mobile
telephone and officer's salary.

                           (a)      The 2002 Annualised Adjusted EBITDA period
will be calculated through October 31, 2002, divided by ten (10) months and
multiplied by twelve (12) months. For example, a $20,000 year to date Adjusted
EBITDA as of October 31, 2002 would equate to a $24,000 annualised Adjusted
EBITDA ($20,000 divided by 10 months equals $2,000, which multiplied by 12
equals an annualised Adjusted EBITDA of $24,000).

                           (b)      The 2001 Adjusted EBITDA will include the
twelve (12) months ended December 31, 2001.

                           (c)      The 2000 Adjusted EBITDA will include the
twelve (12) months ended December 31, 2000.

The Weighted Average of the Adjusted EBITDA for the 2002, 2001 and 2000 periods
will be calculated by taking three (3) times the 2002 Annualised Adjusted
EBITDA, plus two (2) times the 2001 Adjusted EBITDA, plus one (1) times the 2000
Adjusted EBITDA. The total of these three (3) amounts will then be divided by
six (6) to determine the Weighted Average Adjusted EBITDA. The calculated amount
of the Purchase Price will be set forth on the Purchase Price Calculation
Schedule attached hereto as Exhibit 1.4 and initialled by Buyer and Seller on
the Closing Date.

                  1.5      Payment of Purchase Price; Contingencies. Buyer will
pay the Purchase Price to Seller as follows:

                                       3
<PAGE>
                           (a)      Twenty-five percent (25%) of the Purchase
Price will be paid by Buyer to Seller or for the benefit of Seller in
immediately available funds on the Closing Date.

                           (b)      Provided Revenues (as hereinafter defined)
for the six (6) full six month period ending on October 31, 2003 are no less
than the Target Revenue Amount (as hereinafter defined), then twenty-five
percent (25%) of the Purchase Price will be payable by Buyer to Seller on
November 30, 2003. If Revenues for the specified period are less than the Target
Revenue Amount, then twelve and one half percent (12 1/2%) of the Purchase Price
will be payable by Buyer to Seller on or before November 30, 2003. For purposes
of this Agreement, the term Target Revenue Amount shall mean forty-five percent
(45%) of the 2002 Annualised Revenues. The Target Revenue Amount shall be set
forth in Exhibit 1.4 and initialled by Buyer and Seller on the Closing Date. For
purposes of this Agreement, the term 2002 Annualised Revenues shall mean
Seller's Net Sales for the period from January 1, 2002 through October 31, 2002
multiplied by 1.2.

                           (c)      Provided Revenues for the six (6) full month
period ending on April 30, 2004 are no less than the Target Revenue Amount, then
twenty-five percent (25%) of the Purchase Price will be payable by Buyer to
Seller on May 31, 2004. If Revenues for the specified period are less than the
Target Revenue Amount, then twelve and one half percent (12 1/2%) of the
Purchase Price will be payable by Buyer to Seller on or before May 31, 2004.

                           (d)      Provided Revenues for the six (6) full month
period ending on October 31, 2004 are no less than the Target Revenue Amount (as
hereinafter defined), then twenty-five percent (25%) of the Purchase Price will
be payable by Buyer to Seller on November 30, 2004. If Revenues for the
specified period are less than the Target Revenue Amount, then twelve and one
half percent (12 1/2%) of the Purchase Price will be payable by Buyer to Seller
on or before November 30, 2004.

For purposes of Section 1.5 of this Agreement, "Revenues" shall mean:

                                    (i)      one hundred percent (100%) of
post-Closing revenues from customers from which Seller has received revenues
prior to the Effective Date but from which Buyer (or its predecessors) have not
received revenue since January 1, 2001 ("Seller Customers"); plus

                                    (ii)     fifty percent (50%) of post-Closing
revenues from customers from which Seller and Buyer (or its predecessors) have
received revenue since January 1, 2001 but for which neither Seller nor Buyer
provided social work staffing on the Effective Date ("Joint Inactive Customers")
as set forth on Exhibit 1.5; plus

                                    (iii)    for customers for which both Seller
and Buyer provided social work services on the Effective Date ("Joint Active
Customers") as set forth on Exhibit 1.5, one hundred percent (100%) of
post-Closing revenues generated by an employee of Seller transferred to Buyer
from a customer for which that employee provided social work services on October
31, 2002 and for which that employee continues to provided social work services
thereafter ("Joint Active Customers") as set forth on Exhibit 1.5; plus

                                       4
<PAGE>
                                    (iv)     except as set forth in subparagraph
(iii), fifty percent (50%) of post-Closing revenues from Joint Active Customers;
plus

                                    (v)      one hundred percent (100%) of
revenues from customers which have not previously been serviced by Seller which
provide services other than in or through a hospital or medical clinic including
but not limited to foster family services, alternative schooling services or
residential treatment services.

Revenues shall be determined on an accrual basis but net of any discounts,
allowances or uncollectible amounts. Any invoice which has not been paid within
six (6) months following the invoice date shall be deemed uncollectible and
shall be offset against revenues. Buyer shall provide detailed monthly reports
of revenues to Shareholder reflecting the above breakdown and calculations
within thirty (30) days following the end of each calendar month.

                  1.6      Allocation of Purchase Price. The Purchase Price will
be allocated among the Assets in the manner required by Section 1060 of the
Internal Revenue Code. In making such allocation, the allocations set forth in
Exhibit 1.6 attached hereto will apply. In preparing Exhibit 1.6, Buyer and
Seller have negotiated in good faith the values of the Assets and the resulting
allocation of the Purchase Price among the various Assets; it being understood
that such determination will be binding on Buyer only for the purposes of U.S.
Federal, state and local taxation. Buyer will file all Tax Returns and tax
reports (including IRS Form 8594) in accordance with and based upon such
allocation and will take no position in any Tax Return, tax proceeding or tax
audit which is inconsistent with such allocation.

                  1.7      Closing. A closing (the "Closing") will be held on
November 8, 2002 or at such other time as the parties may agree upon (the
"Closing Date"); provided, in no event will the Closing occur later than
November 30, 2002 (the "Termination Date"). The Closing will be held at Buyer's
counsel's offices in Newport Beach, California or such other place as the
parties may agree, at such time as the parties may agree, at which time and
place the documents and instruments necessary or appropriate to effect the
transactions contemplated herein will be exchanged by the parties.

                  1.8      Effective Date; Operation of Business After Effective
Date. Buyer and Seller agree that the effective date of the purchase and sale of
the Assets shall be November 1, 2001 at 12:01 a.m. ("Effective Date"). Buyer
shall be treated as having acquired the Assets at midnight on the Effective Date
and shall begin operating its business using the Assets for Buyer's benefit on
the day following the Effective Date. Buyer shall be responsible for the payment
of services performed by any social work employees of Seller after the Effective
Date. Buyer shall be entitled to revenues generated by the Assets after the
Effective Date.

                  1.9      Instruments of Transfer to Buyer.

                           (a)      At the Closing, Seller will deliver to Buyer
such bills of sale, endorsements, assignments, and other good and sufficient
instruments of conveyance and transfer, in form and substance reasonably
satisfactory to Buyer and its counsel, as will be required to vest in Buyer
title to the Assets, including without limitation:

                                       5
<PAGE>
                                    (i)      bills of sale executed by Seller
vesting in Buyer good and marketable title to all of the Assets as of the
Closing Date;

                                    (ii)     appropriate endorsements and
assignments of the contracts, licenses, agreements, permits, plans, commitments
and other binding arrangements included in the Assets, if any, as of the Closing
Date; and

                                    (iii)    all data maintained by Seller
relating to the Assets.

                           (b)      Seller will take all other actions necessary
to put Buyer in actual possession and operating control of the Assets as of the
Closing Date.

         2. REPRESENTATIONS AND WARRANTIES OF SELLER AND SHAREHOLDER

         Seller and Shareholder hereby, jointly and severally, represent and
warrant to the Buyer as follows, which representations and warranties shall be
true and correct as of the Effective Date and the Closing Date:

                  2.1      Disclosure Schedule. The disclosure schedule attached
as Exhibit 2 hereto (the "Disclosure Schedule") is divided into sections which
correspond to the sections of this Article 2. The Disclosure Schedule is
accurate and complete. Nothing in the Disclosure Schedule shall be deemed
adequate to disclose an exception to a representation or warranty made herein,
unless the Disclosure Schedule identifies the exception with reasonable
particularity and describes the relevant facts in reasonable detail. Without
limiting the generality of the foregoing, the mere listing (or inclusion of a
copy) of a document or other item shall not be deemed adequate to disclose an
exception to a representation or warranty made herein (unless the representation
or warranty has to do with the existence of the document or other item itself).
Disclosures in any subsection of the Disclosure Schedule shall not constitute
disclosure for purposes of any other subsection and other section of this
Agreement or any exhibit to or other writing which is designated herein as being
part of this Agreement.

                  2.2      Organization, etc. Seller is a corporation duly
organized, validly existing and in good standing under the laws of the State of
California with requisite power and authority to carry on its business as it is
now being conducted and to own, operate and lease its properties and assets.
Seller is duly qualified or licensed to do business as a foreign corporation in
good standing in every other jurisdiction in which the character or location of
the properties and assets owned, leased or operated by it or the conduct of its
business requires such qualification or licensing, except in such jurisdictions
in which the failure to be so qualified or licensed and in good standing would
not have a Material Adverse Effect on Seller. The Disclosure Schedule contains a
list of all jurisdictions in which Seller is qualified or licensed to do
business and includes complete and correct copies of Seller's articles of
incorporation and bylaws. Seller does not own or control any capital stock of
any corporation or any interest in any partnership, limited liability company,
joint venture or other entity.

                  2.3      Seller Authorization. Seller has all necessary power
and authority to enter into this Agreement and all other documents executed and
delivered in connection herewith, including but not limited to those instruments
of transfer described in Section 1.9 (collectively, "Documents") and to carry
out the transactions contemplated hereby (including, without

                                       6
<PAGE>
limitation, the power to sell, transfer and convey the Assets). All action on
the part of Seller and its shareholders necessary for the authorization,
execution, delivery and performance of the each of the Documents has been taken
and no further action or other authorization is required to consummate the
transactions provided for in the Documents. When executed and delivered by
Seller, the Documents shall constitute the valid and binding legal obligation of
Seller enforceable in accordance with their respective terms subject to the laws
on insolvency and equitable remedies.

                  2.4      Shareholder Authorization. Shareholder has all
requisite power and authority to enter into this Agreement and the other
documents contemplated hereby to which Shareholder is a party, and to perform
Shareholder's obligations hereunder and thereunder. This Agreement and the other
documents contemplated hereby to which Shareholder is a party have been duly
executed and delivered by Shareholder and constitute the valid and binding
agreements of Shareholder, enforceable in accordance with their terms.

                  2.5      Capitalization. The Disclosure Schedule accurately
sets forth the authorized and outstanding capital stock of Seller and the name
and number of shares of capital stock held by each shareholder of Seller. All of
the issued and outstanding shares of Seller's capital stock have been duly
authorized, are validly issued, fully paid and nonassessable, are not subject
to, nor were they issued in violation of, any preemptive rights, and are owned
of record by Shareholder. There are no outstanding or authorized options,
warrants, rights, contracts, calls, puts, rights to subscribe, conversion rights
or other agreements or commitments to which Seller or Shareholder is a party or
which are binding upon Seller or Shareholder providing for the issuance,
disposition or acquisition of any of Seller's capital stock. There are no voting
trusts, proxies or any other agreements or understandings with respect to the
voting of the capital stock of Seller. Seller is not subject to any obligation
(contingent or otherwise) to repurchase or otherwise acquire or retire any
shares of its capital stock.

                  2.6      Non-Contravention. Except as set forth in the
Disclosure Schedule, neither the execution, delivery and performance of this
Agreement nor the consummation of the transactions contemplated herein will: (i)
violate or be in conflict with any provision of the certificate or articles of
incorporation or bylaws of Seller; (ii) be in conflict with, or constitute a
default, however defined (or an event which, with the giving of due notice or
lapse of time, or both, would constitute such a default), under, or cause or
permit the acceleration of the maturity of, or give rise to any right of
termination, cancellation, imposition of fees or penalties under any debt, note,
bond, lease, mortgage, indenture, license, obligation, contract, commitment,
franchise, permit, instrument or other agreement or obligation to which Seller
is a party or by which Seller or any of Seller's properties or assets is or may
be bound or result in the creation or imposition of any pledges, liens, security
interests, restrictions, claims or charges of any kind upon any property or
assets of Seller under any debt, obligation, contract, agreement or commitment
to which Seller is a party or by which Seller or any of Sellers' assets or
properties are bound; or (iii) violate any Law of any Authority.

                  2.7      Consents and Approvals. Except as set forth in the
Disclosure Schedule, no Consent from any individual or entity, including without
limitation any Authority, is required in connection with the execution, delivery
or performance of this Agreement by Seller or the consummation by Seller of the
transactions contemplated herein except for Consents that shall be

                                       7
<PAGE>
obtained by Seller on or prior to Closing, except for consent to the assignment
of the Real Property Lease and the Capital Copier Lease, which Seller shall not
be required to obtain.

                  2.8      Assets. Except as set forth in the Disclosure
Schedule,

                           (a)      Seller has good and marketable title to all
of the Assets, free and clear of any Lien, other than Liens for current taxes
not yet due and payable and Liens that Seller shall obtain the release of on or
prior to Closing.

                           (b)      Seller has full right and power to, and at
the Closing will, deliver to Buyer good title to all of the Assets, free and
clear of any Lien, other than Permitted Liens.

                           (c)      The machinery, equipment and other personal
property used by Seller in the Business are in good operating condition and
repair, normal wear and tear excepted, and fit for the intended purposes
thereof, and no material maintenance, replacement or repair has been deferred or
neglected.

                           (d)      The Assets constitute all of the property
and assets, real, personal and mixed, tangible and intangible, presently used to
carry on the Business, and the Assets are adequate to carry on the Business as
presently conducted.

                           (e)      Seller owns no real properties.

                           (f)      Seller is not a foreign person and is not
controlled by a foreign person, as the term foreign person is defined in Section
1445(f)(3) of the Code.

                  2.9      Receivables and Payables.

                           (a)      The Disclosure Schedule contains a listing
of all of the account receivables and note receivables, if any, of the Seller
(the "Receivables"). Although Buyer is not acquiring the Receivable, Buyer may
collect the Receivables for the benefit of Seller.

                           (b)      The Disclosure Schedule contains a listing
of all trade accounts payable and notes payable of Seller. Except as set forth
in the Disclosure Schedule, no such account payable or note payable is
delinquent by more than 30 days in its payment. Seller will retain the
obligation to pay all trade accounts payable and notes payable and shall pay
them in the ordinary course.

                  2.10      Contracts and Commitments; No Default.

                           (a)      The Disclosure Schedule contains an accurate
and complete list and brief description of:

                                    (i)      All real property owned by Seller
included in the Assets or in which Seller has a leasehold or other interest and
which is included in the Assets or which is used by Seller in connection with
the operation of its business, together with a description of each lease,
sublease, license, or any other instrument under which Seller claims or holds
such leasehold or other interest or right to the use thereof or pursuant to
which Seller has assigned,

                                       8
<PAGE>
sublet or granted any rights therein, identifying the parties thereto, the
rental or other payment terms, expiration date and cancellation and renewal
terms thereof.

                                    (ii)     All machinery, tools, equipment and
other tangible personal property (other than inventory and supplies), owned,
leased or used by Seller and included in the Assets. Seller has provided Buyer
with either a copy of or a summary description of all leases and Liens relating
thereto, identifying the parties thereto, the rental or other payment terms,
expiration date and cancellation and renewal terms thereof.

                                    (iii)    All contracts, agreements and
commitments, whether or not fully performed, in respect of the issuance, sale or
transfer of capital stock of Seller or pursuant to which Seller has acquired any
substantial portion of its business or assets.

                                    (iv)     All contracts, agreements,
commitments or understandings that restrict Seller from carrying on its
businesses or any part thereof anywhere in the world or from competing in any
line of business with any person or entity.

                                    (v)      All purchase or sale contracts or
agreements that call for aggregate purchases or sales in excess over the course
of such contract or agreement of $2,500 or which continues for a period of more
than twelve months (including without limitation periods covered by any option
to renew or extend by either party) which is not terminable on 60 days' or less
notice without cost or other liability at or any time after the Closing.

                                    (vi)     The names and current annual salary
rates of all employees of and consultants to Seller, showing separately for each
such person the amounts paid or payable as salary, bonus payments and any
indirect compensation for the year ended December 31, 2001.

                                    (vii)    All employment and consulting
agreements, executive compensation plans, bonus plans, deferred compensation
agreements, employee option or purchase plans, other employee arrangements or
commitments, whether or not legally binding, including without limitation,
holiday, vacation and other bonus practices, to which Seller is a party or is
bound or which relates to the operation of the Business.

                           (b)      The Assumed Contracts shall be listed on
Exhibit 2.10 (b). The Assumed Contracts and all other contracts, agreements,
leases, licenses and commitments required to be listed on the Disclosure
Schedule (other than those which have been fully performed), are valid and
binding, enforceable in accordance with their respective terms in all material
respects, except as enforcement might be limited by bankruptcy and other laws
related to creditors' rights and principles of equity, and are in full force and
effect. In the event assignment of the Assumed Contracts requires the consent of
the other parties to the Assumed Contracts, Buyer will assist Seller in
obtaining the required consent or obtaining a replacement contract in a manner
in which Buyer will be entitled to the full benefits thereof. Except as
disclosed in the Disclosure Schedule, none of the payments required to be made
under any Assumed Contract has been prepaid more than 30 days prior to the due
date of such payment thereunder. Except as set forth in the Disclosure Schedule,
Seller is not in material breach, violation or default, however defined, in the
performance of any of its obligations under any

                                       9
<PAGE>
Assumed Contract or any other contract, agreement, lease, license or commitment
required to be listed on the Disclosure Schedule, and no facts and circumstances
exist which, whether with the giving of due notice, lapse of time, or both,
would constitute such a material breach, violation or default thereunder or
thereof. None of the Assumed Contracts is, either when considered singly or in
the aggregate with others, materially adverse, unduly burdensome, or onerous to
the Seller's business, properties, assets, earnings or prospects or likely,
either before or after the Closing, to result in any material loss or liability.
Except as set forth in the Disclosure Schedule, none of the Assumed Contracts is
subject to renegotiation with any government body. True and complete copies of
all of the Assumed Contracts (together with any and all amendments thereto) have
been delivered to Buyer and identified with a reference to this Section of this
Agreement.

                  2.11     Proprietary Rights. All patented and registered
Proprietary Rights owned by Seller and all pending patent applications and
applications for the registration of other Proprietary Rights owned by Seller
are listed in the Disclosure Schedule. The Disclosure Schedule also contains a
complete and accurate list of all trade names and unregistered trademarks and
service marks owned by Seller; all computer software owned and/or used by Seller
and all licenses granted by Seller to any third party with respect to
Proprietary Rights and all such licenses granted by any third party to Seller.
Seller has delivered to Buyer correct and complete copies of all documents
embodying such licenses. Except as set forth in the Disclosure Schedule, (A)
Seller owns and possess all rights, title and interest in and to, or has a valid
and enforceable written license to use, all of the Proprietary Rights necessary
for the operation of the Business as presently conducted; (B) Seller is not in
breach of any license or other grant of rights with respect to Proprietary
Rights; (C) Seller has received no written notice of any claim by any third
party contesting the validity, enforceability, use or ownership of any
Proprietary Rights owned or used by Seller; (D) Seller has not received any
information as to any infringement or misappropriation by, or conflict with, any
third party with respect to the Proprietary Rights of Seller, nor has Seller
received any claims alleging infringement or misappropriation, or other conflict
with, any Proprietary Rights of any third party; (E) Seller has not infringed,
misappropriated or otherwise conflicted with any Proprietary Rights of any third
party, nor will continued conduct of the Business as currently conducted or as
proposed to be conducted infringe, misappropriate or otherwise conflict with the
Proprietary Rights of any third party; and (F) all Proprietary Rights owned or
used by Seller immediately prior to the Closing will be owned or available for
use by Buyer on identical terms and conditions immediately subsequent to the
Closing. The Proprietary Rights comprise all of the proprietary or intellectual
property rights used in the operation of the Business as currently conducted and
as proposed to be conducted. The Proprietary Rights owned or used by Seller
immediately prior to the Closing hereunder will be transferred to Buyer for use
on identical terms and conditions immediately subsequent to the Closing
hereunder.

                  2.12     Financial Statements. Except as set forth in the
Disclosure Schedules, Seller's balance sheets as of December 31, 2001 and 2000
and October 31, 2002 and statements of income for the years ended December 31,
2001 and 2000 and the ten months ended October 31, 2002, attached as Exhibit
2.12 (collectively the "Financial Statements") (i) are in accordance with the
books and records of Seller; and (ii) are true, complete and accurate in all
material respects and fairly present the financial position of Seller as of the
respective dates thereof, and the income or loss for the periods then ended. The
balance sheet as of October 31, 2002 is

                                       10
<PAGE>
hereinafter referred to as the "Most Recent Balance Sheet" and the statement of
income for the period ending October, 2002 is hereinafter referred to as the
"Most Recent Income Statement".

                  2.13     Absence of Undisclosed Liabilities. Except as and to
the extent (i) reflected and reserved against in the Most Recent Balance Sheet,
(ii) set forth on the Disclosure Schedule or (iii) incurred in the ordinary
course of business after the date of the Most Recent Balance Sheet and not
material in amount, either individually or in the aggregate, Seller does not
have any debt, liability or obligation, known or unknown, secured or unsecured,
whether accrued, absolute, contingent, unasserted or otherwise, of any nature
whatsoever, including without limitation any foreign or domestic tax liabilities
or deferred tax liabilities incurred in respect of or measured by Seller's
income, or any other debts, liabilities or obligations relating to or arising
out of any act, omission, transaction, circumstance, sale of goods or services,
state of facts or other condition which occurred or existed on or before the
date hereof, whether or not known, due or payable. Seller is not subject to any
obligation or requirement to provide funds to or make any investment (in the
form of a loan, capital contribution or otherwise) in any person or entity.

                  2.14     Absence of Certain Changes. Except as set forth in
the Disclosure Schedule, since the date of the Most Recent Balance Sheet, Seller
has owned and operated its assets, properties and business in the ordinary
course of business and consistent with past practice. Without limiting the
generality of the foregoing, as of the Closing Date, except as set forth on the
Disclosure Schedule:

                           (a)     Seller has not experienced any change which
has had a Material Adverse Effect or experienced any event or failed to take any
action which reasonably could be expected to result in a Material Adverse
Effect;

                           (b)     Seller has not suffered any loss, damage,
destruction of property or assets or other casualty to property or assets
(whether or not covered by insurance) which reasonably could be expected to
result in a Material Adverse Effect; and

                           (c)     Seller has not suffered any loss of
employees, independent contractors or customers which reasonably could be
expected to result in a Material Adverse Effect on Seller.

                  2.15     Litigation. Except as set forth in the Disclosure
Schedule, there is no legal, administrative, arbitration, or other proceeding,
suit, claim or action of any nature or investigation, review or audit of any
kind, judgment, decree, decision, injunction, writ or order pending, noticed,
scheduled or threatened by or against or involving Assets, whether at law or in
equity, before or by any person or entity or Authority, or which questions or
challenges the validity of this Agreement or any action taken or to be taken by
the parties hereto pursuant to this Agreement or in connection with the
transactions contemplated herein.

                  2.16     Benefit Plans. Except as set forth in the Disclosure
Schedule, neither Seller nor any affiliate of Seller sponsors, maintains,
contributes to or is required to contribute to any pension, welfare, incentive,
perquisite, paid time off, severance or other benefit plan, policy, practice or
agreement subject to the Employee Retirement Income Security Act of 1974, as

                                       11
<PAGE>
amended ("ERISA"). There are no facts or circumstances which could, directly or
indirectly, subject Buyer or any of its affiliates to any Liability of any
nature with respect to any pension, welfare, incentive, perquisite, paid time
off, severance or other benefit plan, policy, practice or agreement sponsored,
maintained or contributed to by Seller or any affiliate, to which Seller or any
affiliate is a party or with respect to which Seller or any affiliate could have
any liability.

                  2.17     Labor Matters. Except as set forth in the Disclosure
Schedule,

                           (a)     Seller is and has been in compliance in all
material respects with all applicable Laws respecting employment and employment
practices, terms and conditions of employment and wages and hours, including
without limitation any such Laws respecting employment discrimination and
occupational safety and health requirements, and has not and is not engaged in
any unfair labor practice;

                           (b)     there is no unfair labor practice complaint
against Seller pending or threatened before the National Labor Relations Board
or any other comparable Authority;

                           (c)     Seller is not delinquent in payments to any
persons for any wages, salaries, commissions, bonuses or other direct or
indirect compensation for any services performed by them or amounts required to
be reimbursed to such persons, including without limitation any amounts due
under any pension plan, welfare plan or compensation plan; and

                           (d)     Neither Buyer nor any subsidiary or affiliate
of Buyer will, by reason of the termination of the employment of any person by
Seller prior to or as of the Effective Date, on or after the Closing Date be
liable to any of such persons for so-called "severance pay" or any other
payments.

                  2.18     Tax Matters. Except as set forth in the Disclosure
Schedule,

                           (a)     Seller shall be responsible for and shall pay
all Taxes attributable to or arising from the business and operations of Seller
and shall be responsible for its own income and franchise Taxes, if any, arising
from the transactions contemplated by this Agreement.

                           (b)     There have been properly completed and duly
filed on a timely basis (subject to any valid extensions filed by Seller) and in
form that is, in all material respects, correct, all Tax Returns required to be
filed on or prior to the date hereof by Seller with respect to Taxes of Seller
(or relating to the business and operation of Seller). As of the time of filing,
the foregoing Tax Returns correctly reflected, in all material respects, the
facts regarding the income, business, assets, operations, activities, status or
other matters of Seller or any other information required to be shown thereon.
There is no material omission, deficiency, error, misstatement or
misrepresentation, whether innocent, intentional or fraudulent, in any Tax
Return filed by Seller for any period. Any Tax Returns filed after the date
hereof, but including periods through the Closing Date, will conform with the
provisions of this subsection 2.14(b).

                           (c)     With respect to all amounts of Taxes imposed
upon Seller, or for which Seller is or could be liable with respect to all
taxable periods or portions of periods ending on or before or including the
Closing Date, all applicable Tax Laws have been or will be

                                       12
<PAGE>
complied with, in all material respects and all such amounts of Taxes required
to be paid by Seller on or before the date hereof have been duly paid or will be
paid on or before the Closing Date. There are no Liens for such Taxes upon any
property or assets of Seller. Seller has withheld and remitted all amounts
required to be withheld and remitted by it in respect of Taxes.

                           (d)     For purposes of computing Taxes and the
filing of Tax Returns, Seller has not failed to treat as "employees" any
individual providing services to Seller who would be classified as an "employee"
under the applicable rules or regulations of any Authority with respect to such
classification.

                  2.19     Compliance with Law. Except as set forth in the
Disclosure Schedule, Seller is not currently failing to materially comply with
any applicable Laws relating to the Assets or the operation of the Assets,
including without limitation, any import, export and immigration laws. There are
no proceedings and no proceedings are pending or to Seller's knowledge
threatened, nor has Seller received any written notice regarding any violation
of any Law by Seller, including, without limitation, any requirement of any
Authority, relating to the Assets.

                  2.20     Environmental and Safety Matters. Neither Seller, any
subsidiary or former subsidiary of Seller, nor, to the best of Seller's
knowledge, any previous owner, tenant, occupant or user of any property owned or
leased by or to Seller or by or to any subsidiary or former subsidiary (the
"Properties") contain any: (i) asbestos (other than asbestos contained in floor
tile) or (ii) equipment using PCBs. No claims or settlements relating to or
arising out of Environmental and Occupational Safety and Health Laws or
Environmentally Regulated Materials, have been made or, to the knowledge of
Seller, been threatened by any third party, including any Authority, nor, to the
knowledge of Seller, does there exist any basis for any such claim (any such
enforcement, investigation, cleanup, removal, remediation or response, other
governmental or regulatory action, claim or settlement is herein referred to as
an "Environmental Claim") against Company or any subsidiary or former
subsidiaries with respect to the Properties or operations conducted thereon.

                  2.21     Insurance. The Disclosure Schedule contains a listing
of all policies of fire and other casualty, general liability, theft, life,
workers' compensation, health, directors and officers, business interruption and
other forms of insurance owned or held by Seller, specifying the insurer, the
policy number, the risk insured against, the term of the coverage, the limits of
coverage, the deductible amount (if any), the premium rate, the date through
which coverage will continue by virtue of premiums already paid and, in the case
of any "claims made" coverage, the same information as to predecessor policies
for the previous five years. All present policies are in full force and effect
and all premiums with respect thereto have been paid. Seller has not been denied
any form of insurance and no policy of insurance has been revoked or rescinded
during the past five years, except as described on the Disclosure Schedule.

                  2.22     Affiliate Transactions. Except as set forth in the
Disclosure Schedule, no officer, director, stockholder or employee of Seller or
any person related by blood or marriage to any such person in which any such
person owns any beneficial interest (collectively, "Insiders"), is a party to
any agreement, contract, commitment or transaction with Seller or which pertains
to

                                       13
<PAGE>
Seller or has any interest in any property, whether real, personal or mixed, or
tangible or intangible, relating to Seller or the Business.

                  2.23     Business Generally. Except as set forth in the
Disclosure Schedule, there has been no event, transaction or information which
has come to the attention of Seller which, as it relates directly to the
business of Seller, would, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

                  2.24     Brokers. Neither Seller nor any of its directors,
officers or employees has employed any other broker, finder, or financial
advisor or incurred any liability for any other brokerage fee or commission,
finder's fee or financial advisory fee, in connection with the transactions
contemplated hereby, nor is there any basis known to Seller for any such fee or
commission to be claimed by any other person or entity.

                  2.25     Accuracy of Information. No representation or
warranty made by Seller in this Agreement or in any of the Documents contains
any untrue statement of material fact or omits to state a material fact
necessary in order to make the statements herein or therein not misleading in
light of the circumstances in which they are made. The representations and
warranties contained in this Article 2 or elsewhere in this Agreement or any
other Document delivered pursuant hereto shall not be affected or deemed waived
by reason of the fact that Buyer or its representatives knew or should have
known that any such representation or warranty is or might be inaccurate in any
respect.

         3. Representations and Warranties of Buyer

         Buyer represents and warrants to Seller as follows:

                  3.1      Organization. Buyer is a corporation duly organized,
validly existing and in good standing under the laws of the State of California.

                  3.2      Authorization. Buyer has all necessary power and
authority to enter into this Agreement and to carry out the transactions
contemplated herein. Buyer has taken all action required by Law, its article of
incorporation or otherwise to authorize the execution, delivery and performance
of this Agreement and the consummation of the transactions contemplated herein
and no action of the member of the Buyer is required. This Agreement is the
valid and binding legal obligation of the Buyer enforceable against the Buyer in
accordance with its terms subject to the laws on insolvency and equitable
remedies.

                  3.3      Non-Contravention. Neither the execution, delivery
and performance of this Agreement nor the consummation of the transactions
contemplated herein will: (i) violate any provision of the articles of
incorporation or bylaws of Buyer; or (ii) except for such violations, conflicts,
defaults, accelerations, terminations, cancellations, impositions of fees or
penalties, mortgages, pledges, and Liens which would not, individually or in the
aggregate, have a Material Adverse Effect on Buyer, (A) violate, be in conflict
with, or constitute a default, however defined (or an event which, with the
giving of due notice or lapse of time, or both, would constitute such a
default), under, or cause or permit the acceleration of the maturity of, or give
rise to, any right of termination, cancellation, imposition of fees or penalties
under, any debt, note, bond, lease, mortgage, indenture, license, obligation,
contract, commitment,

                                       14
<PAGE>
franchise, permit, instrument or other agreement or obligation to which Buyer is
a party or by which Buyer or any of its respective properties or assets is or
may be bound (unless with respect to which defaults or other rights, requisite
waivers or consents shall have been obtained at or prior to the Closing) or (B)
result in the creation or imposition of any Lien, except Permitted Liens, upon
any property or assets of Buyer under any debt, obligation, contract, agreement
or commitment to which Buyer is a party or by which the Buyer or any of its
respective assets or properties is or may be bound; or (iii) violate any Law.

                  3.4      Consents and Approvals. No Consent is required by any
person or entity, including without limitation any Authority, in connection with
the execution, delivery and performance by Buyer of this Agreement, or the
consummation of the transactions contemplated herein, other than any Consent
which, if not made or obtained, will not, individually or in the aggregate, have
a Material Adverse Effect on the business of Buyer taken as a whole.

         4. COVENANTS OF THE PARTIES

                  4.1      Conduct of Business. Prior to the Closing, except as
otherwise expressly provided herein, Seller will:

                           (a)      conduct the Business (including, without
limitation, its cash management practices, the collection of receivables,
payment of payables and commitment to capital expenditures) only in the usual
and ordinary course of business in accordance with past custom and practice and
keep its organization and properties intact, including its present business
operations, physical facilities, working conditions and employees and its
present contracts and relationships with lessors, licensors and customers;

                           (b)      use its best efforts to preserve present
business relationships with all material customers of Seller, to the extent such
relationships are beneficial to the Business;

                           (c)      maintain its books, accounts and records in
accordance with past custom and practice as used in the preparation of the
Financial Statements;

                           (d)      maintain in full force and effect the
existence of all Proprietary Rights;

                           (e)      encourage Seller's professionals and other
employees to continue their employment with Seller before the Effective Date and
with Buyer after the Effective Date and the Closing;

                           (f)      comply with all legal requirements and
contractual obligations applicable to the operations of the Business and pay all
applicable Taxes;

                           (g)      promptly inform Buyer in writing of any
variances from the representations and warranties contained anywhere in this
Agreement or any breach of any covenant hereunder by any of Seller of
Shareholder;

                           (h)      cooperate with Buyer and use best efforts to
cause the conditions to Buyer's obligation to close to be satisfied and execute
and deliver such further instruments of

                                       15
<PAGE>
conveyance and transfer and take such additional action as Buyer may reasonably
request to effect, consummate, confirm or evidence the transactions contemplated
by this Agreement; and

                           (i)      use its best efforts to support Buyer's
efforts to retain the Business' professionals and customers including, without
limitation, requiring its directors, officers and key employees to attend
meetings and participate in discussions with Buyer and the Business' customers
to retain such customers and professionals.

                  4.2      Negative Covenants of Seller and Shareholders. Prior
to the Closing, without Buyer's prior written consent, the Shareholder will not
permit Seller to, and Seller will not:

                           (a)      sell, lease, license or otherwise dispose
of any interest in any of the Assets, other than in the ordinary course of
business consistent with past practice, or permit, allow or suffer any of the
Assets to be subjected to any Lien;

                           (b)      terminate or modify any of the Assumed
Contracts or any other material contract or any government license, permit or
other authorization, outside the ordinary course of business;

                           (c)      enter into any new, or amend any existing,
material contracts, agreements or commitments, outside the ordinary course of
business;

                           (d)      institute any material change in the conduct
of its business, or any change in its methods of purchase, sale, lease,
management, marketing, operation or accounting; or

                           (e)      take or omit to take any action, outside the
ordinary course of business, which could be reasonably anticipated to cause a
material adverse change prior to Closing in the Business, Assets or financial
condition of Seller.

                  4.3      Full Access to Assets. Throughout the period prior
to the Closing, Seller will afford to Buyer and officers, employees, counsel,
accountants, investment advisors and other authorized representatives and
agents, access to the Assets and the books and records of Seller pertaining to
the Assets in order that Buyer may have full opportunity to make such
investigations as it desires to make. Any investigation by Buyer shall not
affect or otherwise diminish or obviate in any respect any of the
representations and warranties of Seller herein.

                  4.4      No Solicitation of Alternate Transaction. Prior to
the Closing or termination of this Agreement, Seller, its directors, officers
and employees, independent contractors, consultants, counsel, accountants,
investment advisors and other representatives and agents will not, directly or
indirectly, solicit or entertain offers from, negotiate with, provide any
information to, enter into any agreement with, or in any manner encourage,
discuss, accept or consider any proposal of, any third party relating to the
acquisition of Seller, its assets or business, in whole or in part.

                  4.5      Filings; Consents; Removal of Objections. Subject to
the terms and conditions herein provided, the parties hereto will use
commercially reasonable efforts to take or

                                       16
<PAGE>
cause to be taken all actions and do or cause to be done all things necessary,
proper or advisable under applicable Laws to consummate and make effective, as
soon as reasonably practicable, the transactions contemplated hereby, including
without limitation obtaining all Consents of any person or entity, whether
private or governmental, required in connection with the consummation of the
transactions contemplated herein. In furtherance, and not in limitation of the
foregoing, it is the intent of the parties to consummate the transactions
contemplated herein at the earliest practicable time and they respectively agree
to exert commercially reasonable efforts to that end, including without
limitation: (i) the removal or satisfaction, if possible, of any objections to
the validity or legality of the transactions contemplated herein; and (ii) the
satisfaction of the conditions to consummation of the transactions contemplated
hereby.

                  4.6      Payment of Sales Tax. Seller shall be responsible for
payment of all sales Taxes due with respect to the sale of the Assets pursuant
to this Agreement.

                  4.7      Further Assurances; Cooperation; Notification.

                           (a)      Each party hereto will, before, at and after
Closing, execute and deliver such instruments and take such other actions as the
other party or parties, as the case may be, may reasonably require in order to
carry out the intent of this Agreement. Without limiting the generality of the
foregoing, at any time after the Closing, at the request of Buyer and without
further consideration, Seller will execute and deliver such instruments of sale,
transfer, conveyance, assignment and confirmation and take such action as Buyer
may reasonably deem necessary or desirable in order to more effectively
consummate the transactions contemplated hereby and to vest in the Buyer good
and marketable title to the Assets without further cost or expense to the
Seller.

                           (b)      At all times from the date hereof until the
Closing, each party will promptly notify the other in writing of the occurrence
of any event which it reasonably believes will or may result in a failure by
such party to satisfy the conditions specified in this Article 4.

                  4.8      Disclosure of Developments. During the period prior
to Closing, Seller will promptly notify the Buyer of any event or development
which, if existing or occurring at or prior to the date of this Agreement, which
is necessary to correct any representation and warranty of Seller which has been
rendered inaccurate by reason of such event or development.

                  4.9      Press Releases and Announcements. None of the parties
hereto shall make any public announcement with respect to the transactions
contemplated herein without the prior written consent of the other party, which
consent shall not be unreasonably withheld or delayed; provided, however, that
any of the parties hereto may at any time make any announcements which are
required by applicable Law so long as the party so required to make an
announcement promptly upon learning of such requirement notifies the other party
of such requirement and discusses with the other party in good faith the exact
proposed wording of any such announcement.

                  4.10     Employee and Related Matters.

                           (a)      Buyer will have the obligation to employ or
offer employment to each employee of Seller at each employee's current salary or
pay rate on an at-will basis only in

                                       17
<PAGE>
connection with the transactions contemplated hereby. Seller hereby authorizes
Buyer to enter into discussions with any of its employees concerning the future
employment of such individual by Buyer; provided, however, that (i) such
discussions will not be commenced prior to the giving of notice by Seller to the
employees of Seller of the transactions contemplated by this Agreement; and (ii)
all such discussions will be conducted in such a manner as not to interfere
unreasonably with the business operations of Seller. The terms and conditions of
such employment will be established by Buyer in its sole discretion.

                           (b)      Buyer will not be obligated under, and
hereby specifically disclaims any assumption or liability with respect to, any
pension plan, welfare plan or compensation plan. Seller will indemnify, defend
and hold harmless Buyer and its affiliates from and against any liability,
expense, cost, tax or obligation of any nature with respect to such current or
former employee or other individual arising in connection with group health plan
coverage.

                           (c)      Buyer shall have no liability whatsoever and
Seller shall retain, bear and discharge all liabilities and obligations (whether
absolute, contingent or otherwise) relating to workers' compensation claims made
by (i) any employee filed or presented before the Effective Date, (ii) any
employee filed or presented before or after the Closing Date but relating to
claims and/or injuries first arising before the Effective Date and (iii) any
employee or former employee of Seller who does not become an employee of Buyer.

                  4.11     Seller's Name. Seller agrees that, on or before
ninety (90) days following the Closing Date, it will take all action required to
change its name to one that does not include the words "Social Work Services."

                  4.12     Additional Post-Closing Obligations of the Seller.
Effective as of the Closing, Seller appoints Buyer and its successor and
assigns, the true and lawful attorney or attorneys of Seller, with full power of
substitution, in the name of Seller but on behalf and for the benefit of and at
the expense of Buyer:

                           (a)     to collect in the name of Seller for the
account of Buyer items included in the Assets, if any, to be sold and
transferred to Buyer as provided herein;

                           (b)     to institute and prosecute, in the name of
Seller or otherwise, all proceedings which Buyer may deem necessary or desirable
in order to collect, assert or enforce any claim, right or title of any kind
included in the Assets;

                           (c)     to defend and compromise any and all actions,
suits or proceedings in respect of the Assets to the extent liability therefore
has been assumed by Buyer hereunder; and

                           (d)     to do all such acts and things in relation to
the foregoing as is reasonably necessary to exercise such powers, as Buyer may
deem advisable.

The foregoing power is coupled with an interest and will be irrevocable by
Seller or by its dissolution in any manner or for any reason. Buyer will retain
for its own account any amounts collected pursuant to the foregoing power,
including any sums payable as interest in respect

                                       18
<PAGE>
thereof, and Seller will pay to Buyer, when received, any amounts which will be
received by Seller in respect of any assets or properties related to the Assets.

         5. CONDITIONS TO THE BUYER'S OBLIGATIONS

         Notwithstanding any other provision of this Agreement to the contrary,
the obligation of Buyer to effect the transactions contemplated herein will be
subject to the satisfaction at or prior to the Closing of each of the following
conditions:

                  5.1      Representations and Warranties True. The
representations and warranties of Seller contained in this Agreement will be in
all material respects true, complete and accurate as of the date when made and
at and as of the Effective Date and the Closing Date as though such
representations and warranties were made at and as of such time, except insofar
as the representations and warranties relate expressly and solely to a
particular date or period, in which case they shall be true and correct in all
material respects at the Closing with respect to such date or period.

                  5.2      Performance. Seller will have performed and complied
in all material respects with all agreements, covenants, obligations and
conditions required by this Agreement to be performed or complied with by Seller
on or prior to the Closing.

                  5.3      Required Approvals and Consents. All action required
by Law and otherwise to be taken by Seller to authorize the execution, delivery
and performance of this Agreement and the consummation of the transactions
contemplated hereby will have been duly and validly taken. All Consents of or
from all Authorities required hereunder, if any, to consummate the transactions
contemplated herein, other than Consent to the assignment of the Real Property
Lease, Copier Lease or Utilities Contracts, will have been delivered, made or
obtained, and the Buyer will have received copies thereof.

                  5.4      Adverse Changes. No change shall have occurred in the
Assets or the Business which shall have a Material Adverse Effect on the Assets
or the Business.

                  5.5      No Proceeding or Litigation. No suit, action,
investigation, inquiry or other proceeding by any Authority or other person or
entity will have been instituted or threatened which delays or questions the
validity or legality of the transactions contemplated hereby or which, if
successfully asserted, would individually or in the aggregate, otherwise have a
Material Adverse Effect on the Assets.

                  5.6      Legislation. No Law shall have been enacted which
prohibits, restricts or delays the consummation of the transactions contemplated
hereby or any of the conditions to the consummation of such transaction.

                  5.7      Acceptance by Buyer. The form and substance of all
documents to be delivered at Closing hereunder will be reasonably acceptable to
Buyer.

                  5.8      Certificates. Buyer will have received such
certificates of Seller, in a form and substance reasonably satisfactory to
Buyer, dated the Closing Date, to evidence compliance

                                       19
<PAGE>
with the conditions set forth in this Article 5 and such other matters as may be
reasonably requested by Buyer.

                  5.9      Board Resolutions. Buyer will have received certified
copies of the resolutions of Seller's board of directors and shareholders
approving the transactions contemplated by this Agreement.

                  5.10     Due Diligence. Buyer will have received all
information reasonable requested by it pursuant to Section 4.3 of this
Agreement.

                  5.11     Appropriate Documentation. Buyer shall have received,
in a form and substance reasonably satisfactory to Buyer, dated the Closing
Date, all bills of sale, deeds, assignments and other conveyance and transfer
documentation consistent with the negotiated provisions of this Agreement and
necessary to vest title in the Assets to Buyer.

                  5.12     Non-Compete Agreement. Buyer and Shareholder shall
have entered into the Non-Compete Agreement in the form of Exhibit 5.12 to this
Agreement.

                  5.13     Employment Agreement. Buyer and Shareholder shall
have entered into the Employment Agreement in the form of Exhibit 5.13 to this
Agreement.

         6. CONDITIONS TO OBLIGATIONS OF SELLER

         Notwithstanding anything in this Agreement to the contrary, the
obligations of Seller to effect the transactions contemplated herein will be
subject to the satisfaction at or prior to the Closing of each of the following
conditions:

                  6.1      Representations and Warranties True. The
representations and warranties of Buyer contained in this Agreement will be in
all material respects true, complete and accurate as of the date when made and
at and as of the Closing, as though such representations and warranties were
made at and as of such time, except for changes permitted or contemplated in
this Agreement, and except insofar as the representations and warranties relate
expressly and solely to a particular date or period, in which case they will be
true and correct in all material respects at the Closing with respect to such
date or period.

                  6.2      Performance. Buyer will have performed and complied
in all material respects with all agreements, covenants, obligations and
conditions required by this Agreement to be performed or complied with by Buyer
at or prior to the Closing.

                  6.3      Approvals. All action required to be taken by the
Buyer to authorize the execution, delivery and performance of this Agreement by
the Buyer and the consummation of the transactions contemplated hereby will have
been duly and validly taken.

                  6.4      No Proceeding or Litigation. No suit, action,
investigation, inquiry or other proceeding by any Authority or other person or
entity will have been instituted or threatened which delays or questions the
validity or legality of the transactions contemplated hereby.

                                       20
<PAGE>
                  6.5      Acceptance by Seller. The form and substance of all
documents to be delivered to Seller at Closing hereunder will be reasonably
acceptable to Seller and its legal counsel.

                  6.6      Certificates. Buyer will have furnished to Seller
such certificates and other documents, instruments and writings to evidence the
fulfillment of the conditions set forth in this Article 6 as Seller may
reasonably request.

                  6.7      Payment of Purchase Price. Buyer shall have delivered
the portion of the Purchase Price to be payable on the Closing Date as follows:
(i) first, in the amount necessary to pay off Seller's line of credit (Loan No.
90-10-2702-3) with Farmer's and Merchant's Bank and to obtain the release of the
bank's security interest in certain of the Assets and (ii) then, balance to
Seller.

         7. TERMINATION AND ABANDONMENT

                  7.1      Termination by Mutual Consent. This Agreement may be
terminated at any time prior to the Closing by the written consent of Seller and
Buyer.

                  7.2      Termination by Either Seller or Buyer. This Agreement
may be terminated by either Seller or Buyer if:

                           (a)      the Closing has not been consummated by
5:00 p.m. (Pacific Time) on November 15, 2002 (provided that the right to
terminate this Agreement under this Section 7.2(a) will not be available to any
party whose failure to fulfill any obligation under this Agreement has been the
cause of or resulted in the failure of the Closing to occur on or before such
date), or

                           (b)      any court of competent jurisdiction in the
United States or some other governmental body or regulatory authority will have
issued an order, decree or ruling or taken any other action permanently
restraining, enjoining or otherwise prohibiting the Closing or permitting
consummation of the Closing only subject to a condition or restriction
unacceptable to Buyer and such order, decree, ruling or other action will have
become final and nonappealable.

                  7.3      Procedure and Effect of Termination. In the event of
termination of this Agreement and abandonment of the transactions contemplated
hereby by Seller or Buyer pursuant to this Article 7, written notice must be
given to the other party and this Agreement will terminate (other than Sections
4.7, 10.2 and 10.9) and the transactions contemplated hereby will be abandoned,
without further action by any of the parties hereto. If this Agreement is
terminated as provided herein:

                           (a)      Upon request therefore, each of the parties
hereto will redeliver all documents, work papers and other material of the other
parties relating to the transactions contemplated hereby, whether obtained
before or after the execution hereof, to the party furnishing the same;

                           (b)      No party will have any further obligation to
the other party to this Agreement pursuant to this Agreement except for
liability of any breach of this Agreement; and

                                       21
<PAGE>
                           (c)      All filings, applications and other
submissions made pursuant to the terms of this Agreement will, to the extent
practicable, be withdrawn from the agency or other person to which made.

                  7.4      Termination After Effective Date. In the event this
Agreement is terminated following the Effective Date, Buyer shall cease using
the Assets of Seller and shall cooperate with Seller in re-transferring any
social work employees of Seller to Seller.

         8. SURVIVAL; INDEMNIFICATION; RELEASE

                  8.1      Survival of Representations, Warranties and
Covenants; Investigation. All representations, warranties and covenants of the
parties contained in this Agreement will survive the Closing Date without
limitation as to time. The right to indemnification or any other remedy based on
representations, warranties, covenants and obligations in this Agreement will
not be affected by any investigation conducted with respect to, or any knowledge
acquired (or capable of being acquired) at any time, whether before or after the
execution and delivery of this Agreement or the Closing Date, with respect to
the accuracy or inaccuracy of or compliance with, any such representation,
warranty, covenant or obligation. The waiver of any condition based on the
accuracy of any representation or warranty, or on the performance of or
compliance with any covenant or obligation, will not affect the right to
indemnification or any other remedy based on such representations, warranties,
covenants and obligations.

                  8.2      Indemnification by Buyer. Buyer agrees to indemnify,
defend and hold Seller harmless from and against any and all losses,
liabilities, obligations, demands, judgments, settlements, damages (but
excluding claims for consequential damages, lost profits or punitive damages) or
reasonable expense (including but not limited to interest, penalties, fees and
reasonable professional fees and expenses) and against all claims in respect
thereof (including, without limitation, amounts paid in settlement and
reasonable costs of investigation) whether or not involving a third-party claim
(collectively as "Seller's Loss" or "Seller's Losses") to which Seller may
suffer or incur, directly or indirectly, as a result from or in connection with:

                           (a)      any untrue representation of, or breach of
warranty by, Buyer in any part of this Agreement;

                           (b)      the breach of or nonfulfillment of any
covenant, agreement or undertaking of Buyer in this Agreement; and

                           (c)      the use of the Assets after the Effective
Date.

                  8.3      Indemnification by Seller. Seller agrees to indemnify
Buyer and its subsidiaries and affiliates and each of their respective
shareholders, officers and directors (collectively the "Buyer Indemnified
Parties") against all losses, liabilities, obligations, demands, judgments,
settlements, damages (but excluding any claims for consequential damages, lost
profits or punitive damages suffered directly by Buyer as opposed to
consequential damages, lost profits or punitive damages paid by Buyer to a third
party), or reasonable expenses (including, but not limited to, interest,
penalties, fees, and reasonable professional fees and expenses) and against all
claims in respect thereof (including, without limitation, amounts paid in
settlement and reasonable costs of investigation), whether or not involving a
third-party claim (herein

                                       22
<PAGE>
referred to collectively as "Buyer's Losses" or individually as a "Buyer's
Loss") to which the Buyer Indemnified Parties may suffer or incur, directly or
indirectly, as a result from or in connection with:

                           (a)      any untrue representation of or breach of
warranty, by Seller in any part of this Agreement;

                           (b)      the breach of or nonfulfillment of any
covenant, agreement or undertaking of Seller in this Agreement; and

                           (c)      the use of the Assets on or before the
Effective Date.

Notwithstanding the foregoing, Seller's obligations pursuant to this Agreement,
including but not limited to Section 8.3, will be limited to the amount, if any,
which Seller receives from Buyer pursuant to Section 1.5(b) through (d) of this
Agreement.

                  8.4      Right of Set-Off. Upon at least ten (10) business
days prior written notice to the Seller, specifying in reasonable detail the
basis therefore, Buyer may set-off any amount to which it may be entitled under
this Article 8 against the payments to be made by Buyer of the Purchase Price
payable to Seller pursuant to Section 1.5(b) though (d) of this Agreement. The
exercise of such right of set-off by Buyer shall not constitute an event of
default or a breach under this Agreement. Neither the exercise of, nor the
failure to exercise, such right of set-off shall constitute an election of
remedies nor limit Buyer in any manner in the enforcement of any other remedies
that may be available to it. If Seller objects to the set off by written notice
to Buyer prior to the payment date, Buyer shall place the amount in dispute in
escrow with a mutually acceptable escrow agent. Such amount may be withdrawn
only upon mutual written agreement of the parties or pursuant to an award of the
arbitral tribunal in accordance with Section 10.8.

                  8.5      Claims for Indemnification.

                           (a)      General. The parties intend that all
indemnification claims be made as promptly as practicable by the party seeking
indemnification (the "Indemnified Party") and prior to the expiration of the
applicable representation, warranty or covenant. Whenever any claim shall arise
for indemnification hereunder the Indemnified Party shall promptly notify the
party from whom indemnification is sought (the "Indemnifying Party") of the
claim and, when known, the facts constituting the basis for such claim (the
"Notice"). The failure to notify the Indemnifying Party shall not relieve the
Indemnifying Party of any liability that it may have to the Indemnified Party
except to the extent the Indemnifying Party is prejudiced thereby, such delay
shall not modify the time requirements for the filing of a claim as set forth in
Section 9.1. For purposes of this Agreement, the date which is three business
days after the Notice is first mailed or otherwise released for dispatch to the
Indemnifying Party is hereinafter referred to as the "Notice Delivery Date."

                           (b)      Claims by Third Parties. With respect to
claims made by third parties, the Indemnifying Party shall be entitled to assume
control of the defense of such action or claim with counsel reasonably
satisfactory to the Indemnified Party; provided, however, that:

                                       23
<PAGE>
                                    (i)      the Indemnified Party shall be
entitled to participate in the defense of such claim and to employ counsel at
its own expense to assist in the handling of such claim;

                                    (ii)     no Indemnifying Party shall
consent to (A) the entry of any judgment or enter into any settlement that does
not include as an unconditional term thereof the giving by each claimant or
plaintiff to each Indemnified Party of a release from all liability in respect
of such claim or (B) if, pursuant to or as a result of such consent or
settlement, injunctive or other equitable relief would be imposed against the
Indemnified Party or such judgment or settlement could materially interfere with
the business, operations or assets of the Indemnified Party; and

                                    (iii)    if the Indemnifying Party does not
assume control of the defense of such claim in accordance with the foregoing
provisions within ten (10) business days after the Notice Delivery Date, the
Indemnified Party shall have the right to defend such claim in such manner as
it may deem appropriate at the cost and expense of the Indemnifying Party, and
the Indemnifying Party will promptly reimburse the Indemnified Party therefore
in accordance with this Article 9; provided that the Indemnified Party shall
not be entitled to consent to the entry of any judgment or enter into any
settlement of such claim that does not include as an unconditional term thereof
the giving by each claimant or plaintiff to each Indemnifying Party of a
release from all liability in respect of such claim and provided that
Indemnified Party shall not be entitled without the prior written consent of
the Indemnifying Party to enter into a consent or settlement if injunctive or
other equitable relief would be imposed against the Indemnifying Party or such
judgment or settlement could materially interfere with the business, operations
or assets of the Indemnifying Party.

                           (c)      Remedies Cumulative. The remedies provided
herein shall be cumulative and shall not preclude assertion by any party of any
rights or the seeking of any other remedies against any other party.

                           (d)      Payment of Buyer's Losses. Subject to the
limitations described above, all Buyer's Losses hereunder shall be paid on a
dollar for dollar basis.

         9. SELLER'S ACCOUNT RECEIVABLES

                  Seller shall notify Buyer of all payments received by Seller
after the Closing Date from any third party in connection with or arising out of
any of the Receivables. All payments received by Buyer after the Closing Date
from any third party in connection with or arising out of any of the Receivables
shall be held by Buyer in trust for the benefit of Seller. Promptly following
receipt by Buyer of such a payment, Buyer shall deposit said payment and pay, or
cause to be paid, over to Seller, the amount of such payment or reimbursement
without right of setoff. In the event a payment is received which does not
specify whether it is applicable to an invoice for Receivables or for
receivables generated by Buyer following the Effective Date, Buyer shall first
apply the payment to any unpaid Receivables of the payor.

                                       24
<PAGE>
         10. MISCELLANEOUS PROVISIONS

                  10.1     Expenses. Buyer and Seller will each bear their own
costs and expenses relating to the transactions contemplated hereby, including
without limitation, fees and expenses of legal counsel, accountants, investment
bankers, brokers or finders, printers, copiers, consultants or other
representatives for the services used, hired or connected with the transactions
contemplated hereby.

                  10.2     Amendment and Modification. Subject to applicable
Law, this Agreement may be amended or modified by the parties hereto at any time
prior to the Closing with respect to any of the terms contained herein;
provided, however, that all such amendments and modifications must be in writing
duly executed by all of the parties hereto.

                  10.3     Waiver of Compliance; Consents. Any failure of a
party to comply with any obligation, covenant, agreement or condition herein may
be expressly waived in writing by the party entitled hereby to such compliance,
but such waiver or failure to insist upon strict compliance with such
obligation, covenant, agreement or condition shall not operate as a waiver of,
or estoppel with respect to, any subsequent or other failure. No single or
partial exercise of a right or remedy will preclude any other or further
exercise thereof or of any other right or remedy hereunder. Whenever this
Agreement requires or permits the consent by or on behalf of a party, such
consent will be given in writing in the same manner as for waivers of
compliance.

                  10.4     No Third Party Beneficiaries. Nothing in this
Agreement will entitle any person or entity (other than a party hereto and his,
her or its respective successors and assigns permitted hereby) to any claim,
cause of action, remedy or right of any kind.

                  10.5     Notices. All notices, requests, demands and other
communications required or permitted hereunder must be made in writing and will
be deemed to have been duly given and effective: (i) on the date of delivery, if
delivered personally; (ii) on the earlier of the fourth (4th) day after mailing
or the date of the return receipt acknowledgment, if mailed, postage prepaid, by
certified or registered mail, return receipt requested; or (iii) on the date of
transmission, if sent by facsimile, telecopy, telegraph, telex or other similar
telegraphic communications equipment:

                  if to Seller:

                           Kyle Menichetti Krogh
                           4430 Pennsylvania Avenue
                           Fair Oaks, CA 95628

                           facsimile

or to such other person or address as Seller furnishes to the Buyer in writing
in accordance with this subsection.

                                       25
<PAGE>
                  If to Buyer:

                           Associated Staffing Resources
                           c/o OptimumCare Corporation
                           5850 Hannum Avenue
                           Culver City, CA 90230
                           Attn: Chief Executive Officer
                           Facsimile (310) 410-5148

or to such other person or address as Buyer furnishes to the other parties
hereto in writing in accordance with this subsection.

                  10.6     Assignment. This Agreement and all of the provisions
hereof will be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns, but neither this Agreement
nor any of the rights, interests or obligations hereunder will be assigned
(whether voluntarily, involuntarily, by operation of law or otherwise) by any of
the parties hereto without the prior written consent of the other parties,
provided, however, that the Buyer may assign its rights (but not its
obligations) under this Agreement, in whole or in any part, and from time to
time, to a wholly owned, direct or indirect, subsidiary of Buyer.

                  10.7     Governing Law. This Agreement and the legal relations
among the parties hereto will be governed by and construed in accordance with
the internal substantive laws of the State of California (without regard to the
laws of conflict that might otherwise apply) as to all matters, including
without limitation matters of validity, construction, effect, performance and
remedies.

                  10.8     Arbitration.

                           (a)     The parties agree that any dispute arising
out of or relating to this Agreement or the formation, breach, termination or
validity thereof, except for injunctive relief contemplated by Section 10.12 (a
"Dispute") will be resolved as follows. If the Dispute cannot be settled through
direct discussions, the parties will first try to settle the Dispute in an
amicable manner by mediation under the Commercial Mediation Rules of the
American Arbitration Association, before resorting to arbitration. Any Dispute
that has not been resolved within 60 days of the initiation of the mediation
procedure (the "Mediation Deadline") will be settled by binding arbitration in
Los Angeles, California by a panel of three (3) arbitrators, selected in
accordance with subsection (b) below, in accordance with the Commercial
Arbitration Rules of the American Arbitration Association (the "American
Arbitration Rules"). The arbitrators in any such arbitration will have the
discretion to order a pre-hearing exchange of information by the parties,
including, without limitation, production of requested documents, exchange of
summaries of testimony and proposed witnesses, and examination by deposition of
parties. The arbitrators are not empowered to award damages in excess of
compensatory damages, as limited by this Agreement, and each party hereby
irrevocably waives any damages in excess of compensatory damages. Judgment upon
any arbitration award may be entered in any court having jurisdiction thereof
and the parties consent to the jurisdiction of the courts of the State of
California for this purpose. The parties agree that service of process and of
any notices required

                                       26
<PAGE>
in connection with any arbitration hereunder or any related court proceedings
may be given in the manner provided for the giving of notices under this
Agreement as set forth in Section 10.5.

                           (b)     Within twenty (20) days of the Mediation
Deadline, Buyer will nominate one arbitrator and Seller will nominate one
arbitrator. Within thirty (30) days of the nomination and appointment of the two
arbitrators, the two arbitrators shall select a third arbitrator, and if they
fail to do so, a neutral arbitrator shall be chosen in accordance with the
American Arbitration Rules.

                  10.9     Counterparts. This Agreement may be executed
simultaneously in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

                  10.10    Headings. The headings of the sections and
subsections of this Agreement are inserted for convenience only and shall not
constitute a part hereof.

                  10.11    Entire Agreement. This Agreement and the exhibits and
other writings referred to in this Agreement or any such exhibit or other
writing are part of this Agreement, together they embody the entire agreement
and understanding of the parties hereto in respect of the transactions
contemplated by this Agreement and together they are referred to as this
"Agreement" or the "Agreement". There are no restrictions, promises, warranties,
agreements, covenants or undertakings, other than those expressly set forth or
referred to in this Agreement. This Agreement supersedes all prior agreements
and understandings between the parties with respect to the transaction or
transactions contemplated by this Agreement. Provisions of this Agreement will
be interpreted to be valid and enforceable under applicable Law to the extent
that such interpretation does not materially alter this Agreement; provided,
however, that if any such provision shall become invalid or unenforceable under
applicable Law such provision will be stricken to the extent necessary and the
remainder of such provisions and the remainder of this Agreement will continue
in full force and effect.

                  10.12    Injunctive Relief. It is expressly agreed among the
parties hereto that monetary damages would be inadequate to compensate a party
hereto for any breach by any other party of its covenants and agreements hereof.
Accordingly, the parties agree and acknowledge that any such violation or
threatened violation will cause irreparable injury to the other and that, in
addition to any other remedies which may be available, such party will be
entitled to injunctive relief against the threatened breach hereof or the
continuation of any such breach without the necessity or proving actual damages
and may seek to specifically enforce the terms thereof.

                  10.13    Certain Definitions. For purposes of this Agreement,
the term:

                           (a)     "Authority" or "Authorities" means any
foreign, federal, state or local governmental or quasi-governmental,
administrative, regulatory or judicial court, department, commission, agency,
board, bureau, instrumentality or other authority.

                           (b)     "Consent" means any consent, approval, order
or authorization of or from, or registration, notification, declaration or
filing with any individual or entity, including without limitation any
Authority.

                                       27
<PAGE>
                           (c)     "Environmental and Occupational Safety and
Health Law" means any common law or duty, case law or other law, that (i)
regulates, creates standards for or imposes liability or standards of conduct
concerning any element, compound, pollutant, contaminant, or toxic or hazardous
substance, material or waste, or any mixture thereof, or relates in any way to
emissions or releases into the environment or ambient environmental conditions,
or conduct affecting such matters, or (ii) is designed to provide safe and
healthful working conditions or reduce occupational safety and health hazards.

                           (d)     "Environmentally Regulated Materials" means
any element, compound, pollutant, contaminant, substance, material or waste, or
any mixture thereof, designated, listed, referenced, regulated or identified
pursuant to any Environmental and Occupational Safety and Health Law.

                           (e)     "Laws" means any statute, treaty, law,
judgment, writ, injunction, decision, decree, order, regulation, ordinance or
other similar authoritative matters.

                           (f)     "Liens" means any mortgage, pledge, lien,
security interest, conditional or installment sales agreement, encumbrance,
claim, easement, right of way, tenancy, covenant, encroachment, restriction or
charge of any kind or nature (whether or not of record).

                           (g)     "Material Adverse Effect" means an individual
or cumulative material adverse change in the Assets or the value of the Assets
or effect on the business, customers, customer relations, operations or
properties of Company which is reasonably expected to be materially adverse to
the business, financial condition or assets of Company or would prevent Company
or Seller from consummating the transactions contemplated hereby.

                           (h)     "Proprietary Rights" shall mean all patents,
patent applications and patent disclosures; all inventions (whether or not
patentable and whether or not reduced to practice); all trademarks, service
marks, trade dress, trade names and corporate names and all the goodwill
associated therewith; all registered and unregistered statutory and common law
copyrights; all registrations, applications and renewals for any of the
foregoing; and all trade secrets, confidential information, ideas, know-how,
technology, research information, drawings, specifications, designs,
improvements, technical and computer data, documentation and software, financial
business and marketing plans and materials, customer and supplier lists and
related information and all the goodwill associated therewith;, and all other
proprietary rights.

                           (i)     "Taxes" means all federal, state, local,
foreign and other net income, gross income, gross receipts, sales, use, ad
valorem, transfer, franchise, profits, license, lease, service, service use,
withholding, payroll, employment, excise, severance, stamp, occupation, premium,
real or personal property, windfall profits, customs, duties or other taxes,
fees, assessments, charges or levies of any kind whatever, together with any
interest and any penalties, additions to tax or additional amounts with respect
thereto, and the term "Tax" means any one of the foregoing Taxes.

                           (j)     "Tax Returns" means all returns,
declarations, reports, statements and other documents required to be filed with
any Authority in respect of Taxes, and the term "Tax Return" means any one of
the foregoing Tax Returns.

                                       28
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

                                         "Seller"

                                         SOCIAL WORK SERVICES, INC.

                                         By:____________________________________
                                            Kyle Menichetti Krogh, President and
                                            Secretary

                                         "Buyer"

                                         ASSOCIATED STAFFING RESOURCES, INC.

                                         By:____________________________________
                                            Edward A. Johnson, Chief
                                            Executive Officer

                                         "Shareholder"

                                         _______________________________________
                                         KYLE MENICHETTI KROGH

                                       29
<PAGE>
                                   Exhibit 1.2

                                 Excluded Assets

a.  Cash in bank accounts
b.  Accounts and other receivables
c.  Employee Loan
d.  Subaru Outback 2002
e.  Pictures on walls and personal photos
f.  Metal and glass bookcase in large office
g.  Three white mesh storage cabinets in large office
h.  Desk chair in large office
i.  Two black large lateral file cabinets in copy room

                                       30
<PAGE>
                                   Exhibit 1.4

                       Purchase Price Calculation Schedule

              Attached on the Closing Date, as of October 31, 2002

                              Target Revenue Amount

              Provided on the Closing Date, as of October 31, 2002

                                                           Seller Initials_____

                                                           Buyer Initials _____

                                       31
<PAGE>
                                   Exhibit 1.5

                            Joint Inactive Customers

AltaMed Health Services
Daniel Freeman Marina
Daniel Freeman Memorial
Good Samaritan Hospital
Healthy Solutions ADHC
Loma Linda University Medical Center
Long Beach Memorial Medical Center
Memorial Psychiatric Health Services - Pacific Hospital of Long Beach
SCAN - MSSP
Sherman Oaks Hospital
St. Francis Medical Center
White Memorial Medical Center

                             Joint Active Customers

                                      None

                                       32
<PAGE>
                                   Exhibit 1.6

                          Allocation of Purchase Price

              Provided on the Closing Date, as of October 31, 2002

                                       33
<PAGE>
                                Exhibit 2.10 (b)

                                Assumed Contracts

       Schedule of Facility Contracts, attached on the Closing Date, as of
                                October 31, 2002

                                       34
<PAGE>
                                  Exhibit 2.12

                              Financial Statements

              Attached on the Closing Date, as of October 31, 2002

                                       35
<PAGE>
                                  Exhibit 5.12

                              Non-Compete Agreement

                  Attached and to be signed on the Closing Date

                                       36
<PAGE>
                                  Exhibit 5.13

                              Employment Agreement

                  Attached and to be signed on the Closing Date

                                       37

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