Document:

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                                                                   EXHIBIT 10.40

LESSOR:                                                         MASTER EQUIPMENT
JULES AND ASSOCIATES, INC.                                       LEASE AGREEMENT
515 SOUTH FIGUEROA STREET
SUITE 1950
LOS ANGELES, CA  90071
                                            MASTER LEASE AGREEMENT NO. A09112000

                Lease Agreement made this 15th day of December, 2000 between
JULES AND ASSOCIATES, INC. ("Lessor") with a place of business located at 515
South Figueroa Street, Suite 1950, Los Angeles, California 90071 and Pharmchem,
Inc. ("Lessee") having its principal place of business located at 1505-A O`Brien
Drive, Menlo Park, CA 94025-1435.

        1. LEASE AGREEMENT. Lessor hereby leases to Lessee and Lessee hereby
leases from Lessor all of the personal property ("Equipment") described in
Equipment Lease Schedule(s), which are or may from time to time be executed by
Lessor and Lessee and attached hereto or incorporated herein by reference
("Schedules"), upon the terms and conditions set forth in this Lease, as
supplemented by the terms and conditions set forth in the appropriate
Schedule(s) identifying such items of Equipment. All terms and conditions of
this Lease shall govern the rights and obligations of Lessor and Lessee except
as specifically modified in writing. Whenever reference is made herein to the
"Lease", it shall be deemed to include each of the various Schedules identifying
all items of Equipment, all of which constitute one undivided Lease of the
Equipment and the terms and conditions of which are incorporated herein by
reference. Lessee's liability for Lessee's obligations under this Lease will
survive the expiration or earlier termination of this Lease.

        2. SELECTION OF EQUIPMENT; ACCEPTANCE. Lessee will select the type,
quantity and supplier of each item of Equipment designated in the appropriate
Schedule, and in reliance thereon such Equipment will then be ordered by Lessor
from such supplier or Lessor will accept an assignment of any existing purchase
order therefore. Lessor will have no liability for any delivery or failure by
the supplier to fill the purchase order or to meet the conditions thereof.
Lessee acknowledges that Lessor has not participated and will not participate in
any way in Lessee's selection of the Equipment or of the supplier. Lessee agrees
to inspect the Equipment and to execute an Acknowledgment and Acceptance of
Equipment by Lessee notice, as provided by Lessor, after the Equipment has been
delivered and after Lessee is satisfied that the Equipment is satisfactory in
every respect. Lessee hereby authorizes Lessor to insert in this Lease serial
numbers or other identifying data with respect to the Equipment.

        3. DISCLAIMER OF WARRANTIES AND CLAIMS; LIMITATION OF REMEDIES. LESSOR,
NOT BEING THE MANUFACTURER OF THE EQUIPMENT NOR THE MANUFACTURER'S AGENT, MAKES
NO EXPRESS OR IMPLIED WARRANTY OF ANY KIND WHATSOEVER WITH RESPECT TO THE
EQUIPMENT, INCLUDING, BUT NOT LIMITED TO, THE MERCHANTIBILITY OF THE EQUIPMENT
OR ITS FITNESS FOR ANY PARTICULAR PURPOSE; THE DESIGN OR CONDITION OF THE
EQUIPMENT; THE QUALITY OR CAPACITY OF THE EQUIPMENT; THE WORKMANSHIP IN THE
EQUIPMENT; COMPLIANCE OF THE EQUIPMENT WITH THE REQUIREMENT OF ANY LAW, RULE,
SPECIFICATION OR CONTRACT PERTAINING THERETO; PATENT INFRINGEMENT; OR LATENT
DEFECTS. LESSEE LEASES THE EQUIPMENT "AS IS" AND WITH ALL FAULTS. LESSEE
ACCORDINGLY AGREES NOT TO ASSERT ANY CLAIM WHATSOEVER AGAINST LESSOR FOR LOSS OF
ANTICIPATORY PROFITS OR CONSEQUENTIAL DAMAGES. LESSOR SHALL HAVE NO OBLIGATION
TO INSTALL, ERECT, TEST, SERVICE, OR MAINTAIN THE EQUIPMENT. LESSEE SHALL LOOK
TO THE MANUFACTURER AND/OR SELLER FOR ANY CLAIMS RELATED TO THE EQUIPMENT.

        IF THE EQUIPMENT IS NOT PROPERLY INSTALLED, DOES NOT OPERATE AS
REPRESENTED OR WARRANTED BY THE SUPPLIER OR MANUFACTURER, OR IS UNSATISFACTORY
FOR ANY REASON, REGARDLESS OF CAUSE OR CONSEQUENCE, LESSEE'S ONLY REMEDY, IF
ANY, SHALL BE AGAINST THE SUPPLIER OR MANUFACTURER OF THE EQUIPMENT AND NOT
AGAINST LESSOR.

        LESSOR HEREBY ACKNOWLEDGES THAT ANY MANUFACTURER'S AND/OR SELLER'S
WARRANTIES ARE FOR THE BENEFIT OF BOTH LESSOR AND LESSEE. NOTWITHSTANDING THE
FOREGOING, LESSEE'S OBLIGATIONS TO PAY THE RENTALS OR OTHERWISE UNDER THIS LEASE
SHALL BE AND ARE ABSOLUTE AND UNCONDITIONAL. TO THE EXTENT PERMITTED BY THE
MANUFACTURER OR SELLER, AND PROVIDED LESSEE IS NOT IN DEFAULT UNDER THIS LEASE,
LESSOR SHALL MAKE AVAILABLE TO LESSEE ALL MANUFACTURER AND/OR SELLER WARRANTIES
WITH RESPECT TO EQUIPMENT.

        LESSEE SPECIFICALLY ACKNOWLEDGES THAT THE EQUIPMENT IS LEASED TO LESSEE
SOLELY FOR COMMERCIAL OR BUSINESS PURPOSES AND NOT FOR PERSONAL, FAMILY,
HOUSEHOLD, OR AGRICULTURAL PURPOSES.

THE PARTIES HAVE SPECIFICALLY NEGOTIATED AND AGREED TO THE FOREGOING PARAGRAPH:
LESSEE INITIALS: /S/ DAL JB
                 ----------

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        4. STATUTORY FINANCE LEASE. Lessee agrees and acknowledges that it is
the intent of both parties to this Lease that it qualify as a statutory finance
lease under Article 2A of the Uniform Commercial Code. Lessee acknowledges and
agrees that Lessee has selected both: (1) the Equipment; and (2) the supplier
from whom Lessor is to purchase the Equipment. Lessee acknowledges that Lessor
has not participated in any way in Lessee's selection of the Equipment or of the
supplier, and Lessor has not selected, manufactured, or supplied the Equipment.

        LESSEE IS ADVISED THAT IT MAY HAVE RIGHTS UNDER THE CONTRACT EVIDENCING
THE LESSOR'S PURCHASE OF THE EQUIPMENT FROM THE SUPPLIER CHOSEN BY LESSEE AND
THAT LESSEE SHOULD CONTACT THE SUPPLIER OF THE EQUIPMENT FOR A DESCRIPTION OF
ANY SUCH RIGHTS.

        5. ASSIGNMENT BY LESSEE PROHIBITED. WITHOUT LESSOR'S PRIOR WRITTEN
CONSENT, LESSEE SHALL NOT ASSIGN THIS LEASE OR SUBLEASE THE EQUIPMENT OR ANY
INTEREST THEREIN, OR PLEDGE OR TRANSFER THIS LEASE, OR OTHERWISE DISPOSE OF THE
EQUIPMENT COVERED HEREBY.

        6. COMMENCEMENT; RENTAL PAYMENTS; INTERIM RENTALS. This Lease shall
commence upon the written acceptance hereof by Lessor and shall end upon full
performance and observance by Lessee of each and every term, condition and
covenant set forth in this Lease, any Schedules hereto and any extensions
hereof. The monthly rental payments shall be in advance and shall be in the
amounts and frequency as set forth on the face of this Lease or any Schedules
hereto. The first such rental payment shall be made on the first day of the
calendar quarter following the date on which the Equipment is accepted by the
Lessee. In addition to regular rentals, Lessee shall pay to Lessor interim rent,
which shall be a pro-rata portion of the monthly rental charges based on a daily
rental charge of one-thirtieth (1/30th) of the monthly rental calculated from
the date on which the Equipment is accepted by the Lessee to the end of the
calendar quarter, and shall be due and payable upon Lessee's receipt of invoice
from Lessor. The rental period under the Lease shall terminate following the
last day of the terms stated on the face hereof or in any Schedule hereto unless
such Lease or Schedule has been extended or otherwise modified. A calendar
quarter means a three-month period commencing on January 1, April 1, July 1, or
October 1 of any calendar year. Lessor shall have no obligation to Lessee under
this Lease if the Equipment, for whatever reason, is not delivered to Lessee
within ninety (90) days after Lessee signs this Lease. Lessor shall have no
obligation to Lessee under this Lease if Lessee fails to execute and deliver to
Lessor an Acknowledgment and Acceptance of Equipment by Lessee acknowledging its
acceptance of the Equipment within thirty (30) days after it is delivered to
Lessee, with respect to this Lease or any Schedule hereto.

        7. SECURITY DEPOSIT. As security for the prompt and full payment of
rent, and the faithful and timely performance of all provisions of this Lease,
and any extensions or renewals thereof, Lessee shall pledge and deposit with
Lessor the security amount set forth in the section shown as "Security Deposit"
on each respective Schedule. In the event any default shall be made in the
performance of any of Lessee's obligations under this Lease, Lessor shall have
the right, but shall not be obligated, to apply said security to the curing of
such default. Within 15 days after Lessor mails notice to Lessee that Lessor has
applied any portion of the Security Deposit to the curing of any default, Lessee
shall restore said Security Deposit to the full amount set forth in the
Schedules. On the expiration or earlier termination of each Schedule to this
Lease, or any extension or renewal thereof, provided Lessee has paid all of the
rent herein called for and fully performed all other provisions of this Lease
with respect to such Schedule, Lessor will return to Lessee any then remaining
balance of the security deposit with respect to such Schedule, without interest.
Said security deposit may be commingled with Lessor's other funds.

        8. LIMITED PREARRANGED AMENDMENTS. SPECIFIC POWER OF ATTORNEY; In the
event it is necessary to amend the terms of this Lease or the terms of any
Schedule to reflect a change in one or more of the following conditions:

        (1)     Lessor's actual cost of procuring the Equipment; or

        (2)     Lessor's actual cost of providing Equipment to Lessee; or

        (3)     A change in the Lease payments as a result of (1) and/or (2)
                above; or

        (4)     Description of the leased Equipment,

Lessee agrees that any such amendment shall be described in a letter from Lessor
to Lessee, and unless within 15 days after the date of such letter Lessee
objects thereto in a writing delivered to Lessor, this Lease and any affected
Schedules shall be deemed amended and such amendments shall be incorporated
herein/therein as if originally set forth herein/therein. Lessee grants to
Lessor a specific power of attorney for Lessor to use as follows: (1) Lessor may
sign and file on Lessee's behalf any document Lessor deems necessary to perfect
or protect Lessor's interest in the Equipment or pursuant to the Uniform
Commercial Code; and (2) Lessor may sign, endorse or negotiate for Lessor's
benefit any instrument representing proceeds from any policy of insurance
covering the Equipment.

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        9. LOCATION. The Equipment shall be kept at the location specified in
each Schedule or, if none is specified, at Lessee's address as set forth above,
and shall not be removed therefrom without Lessor's prior written consent.
Lessor shall have the right to inspect the Equipment and observe its use during
normal business hours, and Lessee will ensure Lessor's ability to enter into and
upon the premises where the Equipment may be located for such purpose.

        10. USE. Lessee shall use the Equipment in a careful manner, shall make
all necessary repairs at Lessee's expense, and shall comply with all laws
relating to its possession, use or maintenance, and shall not make any
alterations, additions or improvements to the Equipment without Lessor's prior
written consent. All additions, repairs or improvements made to the Equipment
shall belong to Lessor.

        11. OWNERSHIP; PERSONALITY. The Equipment is, and shall remain, the
property of Lessor, and Lessee shall have no right, title or interest therein or
thereto except as expressly set forth in this Lease. Should Lessee have an end
of term purchase option and Lessee does not give proper notice as agreed upon by
both parties, then, that purchase option shall be null and void and the terms
and conditions as set forth in this Agreement shall prevail after any extension
period. The Equipment shall remain personal property even though installed in or
attached to real property.

        12. SURRENDER. By this Lease, Lessee acquires no ownership rights in the
Equipment and has no option to purchase same. Upon the expiration or termination
of any Schedule or this Lease, or in the event of a default pursuant to
Paragraph 20 hereof, Lessee, at its expense, shall return the Equipment in good
repair, ordinary wear and tear resulting from proper use thereof alone excepted,
by delivering it, packed and ready for shipment, to such place or carrier as
Lessor may specify.

        13. RENEWAL. At the expiration of the term set forth in each Schedule,
Lessee shall return the Equipment subject to said Schedule in accordance with
Paragraph 12 hereof. At Lessor's option, this Lease, with respect to each
Schedule, may be continued on a month-to-month basis until 30 days after Lessee
returns the Equipment subject to the Schedule to Lessor. In the event that the
Lease, with respect to a Schedule, is so continued, Lessee shall pay to Lessor
rentals in the same periodic amounts as indicated under "Rental" on the
Schedule.

        14. LOSS AND DAMAGE. Lessee shall bear the entire risk of loss, theft,
damage or destruction of the Equipment from any cause whatsoever, and no loss,
theft, damage or destruction of the Equipment shall relieve Lessee of the
obligation to pay rent or to comply with any other obligation under this Lease.
In the event of damage to any item of Equipment, Lessee shall immediately place
the same in good repair at Lessee's expense. If Lessor determines that any item
of Equipment is lost, stolen, destroyed or damaged beyond repair, Lessee shall
at Lessee's option do one of the following:

        (a) Replace the same with like Equipment in good repair, acceptable to
Lessor; or

        (b) Pay Lessor in cash the following: (i) all amounts due by Lessee to
Lessor with respect to all affected Schedules up to the date of the loss; (ii)
the unpaid balance of the total rent for the remaining term of the affected
Schedules attributable to said item, reduced to present value at a discount rate
of 6% as of the date of the loss; and (iii) the Lessor's estimate as of the time
this Lease was entered into of Lessor's residual interest in the Equipment,
discounted to present value at a discount rate of 6% as of the date of the loss.
Upon Lessor's receipt of payment as set forth above, Lessee shall be entitled to
the Equipment, without any warranties. If insurance proceeds are used to fully
comply with this subparagraph, the balance of any such proceeds shall go to
Lessee to compensate for loss of use of the Equipment for the remaining term of
the Lease.

        15. INSURANCE; LIENS; TAXES. Lessee shall provide and maintain insurance
against loss, theft, damage or destruction of the Equipment in an amount not
less than the full replacement value of the Equipment, with loss payable to
Lessor. Lessee shall also provide and maintain comprehensive general all-risk
liability insurance, including but not limited to product liability coverage,
insuring Lessor and Lessee with a severability of interest endorsement or its
equivalent, against any and all loss or liability for damages either to persons
or property or otherwise, which might result from or happen in connection with
the condition, use or operation of the Equipment, with such limits and with an
insurer as are satisfactory to Lessor. Each policy shall expressly provide that
said insurance as to Lessor and its assigns shall not be invalidated by any act,
omission or neglect of Lessee and cannot be canceled without 30 days written
notice to Lessor. As to each policy, Lessee shall furnish to Lessor a
certificate of insurance from the insurer, which certificate shall evidence the
insurance coverage required by this Paragraph and shall designate Lessor as loss
payee and/or additional insured. Lessor shall have no obligation to ascertain
the existence or adequacy of insurance, or to provide any insurance coverage for
the Equipment or for Lessee's benefit.

        Lessee shall keep the Equipment free and clear of all levies, liens and
encumbrances. Lessee shall pay all charges and taxes (local, state and federal)
which may now or hereafter be imposed upon the ownership, leasing, rental, sale,
purchase, possession or use of the Equipment excluding, however, all taxes on or
measured by Lessor's net income.

        If Lessee fails to procure or maintain said insurance or to pay said
charges or taxes, Lessor shall have the right, but shall not be obligated, to
effect such insurance, or pay such charges or taxes. In that event, Lessor shall
notify Lessee of such payment and Lessee shall repay to Lessor the cost thereof
within 15 days after such notice is mailed to Lessee.

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        16. INDEMNITY. Lessee shall indemnify Lessor against any claims,
actions, damages or liabilities, including all attorney fees, arising out of or
connected with the Equipment, without limitation. Such indemnification shall
survive the expiration, cancellation or termination of this Lease. Lessee waives
any immunity Lessee may have under any industrial insurance act with regard to
indemnification of Lessor.

        17. ASSIGNMENT BY LESSOR. Any assignee of Lessor shall have all of the
rights but none of the obligations of Lessor under this Lease. Lessee shall
recognize and hereby consents to any assignment of this Lease by Lessor, and
Lessee shall not assert against the assignee any defense, counterclaim or
set-off that Lessee may have against Lessor. Subject to the foregoing, this
Lease inures to the benefit of and is binding upon the heirs, devisees, personal
representatives, survivors, successors in interest and assigns of the parties
hereto.

        18. SERVICE CHARGES; INTEREST. If Lessee shall fail to make any payment
required by this Lease within 10 days of the due date thereof, Lessee shall pay
to Lessor a service charge of 8% of the amount due, provided, however, that not
more than one such service charge shall be made on any delinquent payment
regardless of the length of the delinquency. In addition to the foregoing
service charge, Lessee shall pay to Lessor a $100 default fee with respect to
any payment which becomes thirty (30) days past due. In addition, Lessee shall
pay to Lessor any actual additional expenses incurred by Lessor in collection
efforts, including but not limited to long-distance telephone charges and travel
expenses. Further, Lessee shall pay to Lessor interest on any delinquent payment
or amount due under this Lease from the due date thereof until paid, at the
lesser of the maximum rate of interest allowed by law or 18% per annum.

        19. TIME OF ESSENCE. Time is of the essence of this Lease, and this
provision shall not be impliedly waived by the acceptance on occasion of late or
defective performance.

        20. DEFAULT. Lessee shall be in default of this Lease if:

        (a) Lessee shall fail to make any payment due under the terms of this
Lease for a period of 10 days from the due date thereof; or

        (b) Lessee shall fail to observe, keep or perform any other provision of
this Lease, and such failure shall continue for a period of 10 days; or

        (c) Lessee has made any misleading or false statement in connection with
application for or performance of this Lease; or

        (d) The Equipment or any part thereof shall be subject to any lien,
levy, seizure, assignment, transfer, bulk transfer, encumbrance, application,
attachment, execution, sublease, or sale without prior written consent of
Lessor, or if Lessee shall abandon the Equipment or permit any other entity or
person to use the Equipment without prior written consent of Lessor; or

        (e) Lessee dies or ceases to exist or ceases business activities; or (f)
Lessee defaults on any other agreement it has with Lessor; or

        (g) Lessee or any guarantor of this Lease defaults on any obligation to
Lessor, or any of the above-listed events of default occur with respect to
Lessee or any guarantor, or Lessee or any such guarantor files or has filed
against it a petition under the bankruptcy laws; or

        (h) Lessee undergoes a sale, buyout, change of control, or change in
ownership of any type, form or manner which, as judged solely by Lessor, results
in deterioration in Lessee's credit worthiness.

        21. REMEDIES. If Lessee is in default, Lessor, with or without notice to
Lessee, shall have the right to exercise any one or more of the following
remedies, concurrently or separately and without any election of remedies being
deemed to have been made:

        (a) Lessor may enter upon Lessee's premises and without any court order
or other process of law may repossess and remove the Equipment, or render the
Equipment unusable without removal, either with or without notice to Lessee.
Lessee hereby waives any trespass or right of action for damages by reason of
such entry, removal or disabling. Any such repossession shall not constitute a
termination of this Lease;

        (b) Lessor may require Lessee, at its expense, to return the Equipment
in good repair, ordinary wear and tear resulting from proper use thereof alone
excepted, by delivering it, packed and ready for shipment, to such place or
carrier as Lessor may specify;

        (c) Lessor may cancel or terminate this Lease and may retain any and all
prior payments paid by Lessee;

        (d) Lessor may declare all sums due and to become due under this Lease
immediately due and payable, including as to any or all items of Equipment,
without notice or demand to Lessee;

        (e) Lessor may re-lease the Equipment to any third party, without notice
to Lessee, upon such terms and conditions as Lessor alone shall determine, or
may sell the Equipment without notice to Lessee, at private or public sale, at
which sale Lessor may be the purchaser;

        (f) Lessor may sue for and recover from Lessee the sum of all unpaid
rents and other payments due under this Lease then accrued, plus all accelerated
future payments due under this Lease, reduced to their present value using a
discount rate of 6%, as of the date of default, plus Lessor's estimate at the
time this Lease was entered into of Lessor's residual interest in the Equipment,
reduced to present value at a discount rate of 6%, as of the date of default,
less the net proceeds of disposition, if any, of the Equipment;

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        (g) To pursue any other remedy available at law, by statute or in
equity. No right or remedy conferred upon or reserved to Lessor is exclusive of
any other right or remedy herein, or by law or by equity provided or permitted,
but each shall be cumulative of every other right or remedy given herein or now
or hereafter existing by law or equity or by statute or otherwise, and may be
enforced concurrently therewith or from time to time. No single or partial
exercise by Lessor of any right or remedy hereunder shall preclude any other or
further exercise of any other right or remedy.

        22. MULTIPLE LESSEES. Lessee and each of them are jointly and severally
responsible and liable to Lessor under this Lease. Lessor may, with the consent
of any one of the Lessees hereunder, modify, extend or change any of the terms
hereof without consent or knowledge of the others, without in any way releasing,
waiving or impairing any right granted to Lessor against the others.

        23. EXPENSE OF ENFORCEMENT. In the event of any legal action with
respect to this Lease, the prevailing party in any such action shall be entitled
to reasonable attorney fees, including attorney fees incurred at the trial
level, including action in bankruptcy court, on appeal or review, or incurred
without action, suits or proceedings, together with all costs and expenses
incurred in pursuit thereof.

        24. MISCELLANEOUS.

(1) LESSEE HEREBY ACKNOWLEDGES THAT THIS LEASE IS NONCANCELABLE FOR THE ORIGINAL
RENTAL TERM SET FORTH IN EACH SCHEDULE.

(2) LESSEE UNDERSTANDS AND ACKNOWLEDGES THAT NO BROKER OR SUPPLIER NOR ANY
SALESMAN, BROKER OR AGENT OF ANY BROKER OR SUPPLIER IS AN AGENT OF LESSOR. NO
BROKER OR SUPPLIER, NOR ANY SALESMAN, BROKER OR AGENT OF ANY BROKER OR SUPPLIER
IS AUTHORIZED TO WAIVE OR ALTER ANY TERM OR CONDITION OF THIS LEASE, AND NO
REPRESENTATION AS TO THE EQUIPMENT OR ANY OTHER MATTER BY A BROKER OR SUPPLIER
OR ANY SALESMAN, BROKER OR AGENT OF ANY BROKER OR SUPPLIER SHALL IN ANY WAY
AFFECT LESSEE'S DUTY TO PAY THE RENTALS AND TO PERFORM LESSEE'S OBLIGATIONS SET
FORTH IN THIS LEASE. LESSEE AUTHORIZES LESSOR TO INSERT ANY APPLICABLE DATES ON
THE LEASE OR ATTACHMENTS TO THE LEASE.

(3) LESSEE AGREES THAT LESSOR MAY USE LESSEE'S NAME IN ADVERTISING AND
PROMOTIONAL MATERIALS AND GENERAL TERMS OF THIS MASTER EQUIPMENT LEASE AND
SCHEDULES.

(4) LESSEE SHALL FURNISH LESSOR WITH (a) A FISCAL YEAR END FINANCIAL STATEMENT
INCLUDING BALANCE SHEET AND INCOME STATEMENT WITHIN ONE HUNDRED AND TWENTY DAYS
(120) DAYS OF THE CLOSE OF EACH FISCAL YEAR AND (b) SUCH OTHER FINANCIAL DATA OR
INFORMATION RELATIVE TO THIS LEASE AND THE EQUIPMENT AS LESSOR MAY FROM TIME TO
TIME REQUEST.

        25. SEVERABILITY. This Lease is intended to constitute a valid and
enforceable legal instrument. In the event any provision hereof is declared
invalid, such provision will be deemed severable from the remaining provisions
of this Lease, all of which will remain in full force and effect.

        26. ENTIRE AGREEMENT; WAIVER. This instrument and the Schedules executed
by Lessor and Lessee constitute the entire agreement between Lessor and Lessee
with respect to the Equipment and the subject matter of this Lease. Lessee
certifies and warrants that this Lease has been duly authorized, executed and
delivered by Lessee and constitutes the legal, valid and binding obligation and
that the person executing this Lease on behalf of the Lessee warrants that he or
she has been authorized to do so. No provision of this Lease shall be modified
unless in writing signed by an authorized representative of Lessor and Lessee.
Waiver by Lessor of any provision hereof in one instance shall not constitute a
waiver of any other instance. NO ORAL OR WRITTEN AGREEMENT, GUARANTY, PROMISE,
CONDITION, REPRESENTATION OR WARRANTY SHALL BE BINDING UNLESS MADE A PART OF
THIS LEASE BY DULY EXECUTED ADDENDUM. LESSEE INITIALS: /S/ DAL JB

        27. CHOICE OF LAW; JURISDICTION. THIS LEASE SHALL NOT BE EFFECTIVE UNTIL
SIGNED BY LESSOR AT ITS PRINCIPAL PLACE OF BUSINESS LISTED ABOVE. THIS LEASE
SHALL BE CONSIDERED TO HAVE BEEN MADE IN THE STATE OF LESSOR'S PRINCIPAL PLACE
OF BUSINESS AND SHALL BE INTERPRETED IN ACCORDANCE WITH THE LAWS AND REGULATIONS
OF THAT STATE.

        LESSEE AGREES TO JURISDICTION IN THE STATE OF LESSOR'S PRINCIPAL PLACE
OF BUSINESS IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS LEASE, AND
CONCEDES THAT IT, AND EACH OF THEM, TRANSACTED BUSINESS IN THE SAID STATE BY
ENTERING INTO THIS LEASE. IN THE EVENT OF LEGAL ACTION TO ENFORCE THIS LEASE,
LESSEE AGREES THAT VENUE MAY BE LAID IN COUNTY OF LESSOR'S PRINCIPAL PLACE OF
BUSINESS. LESSEE INITIALS: /S/ DAL JB

<TABLE>
<S>                                                 <C>
LESSEE: PHARMCHEM, INC.                             LESSOR: JULES AND ASSOCIATES, INC.

/s/ David A. Lattanzio           Date: 12/15/00     /s/ Jules Buenabenta                  Date  12/27/00
---------------------------                         -----------------------------------
David A. Lattanzio, CFO                             Jules Buenabenta, President
</TABLE>

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                                  ADDENDUM "A"

                                       TO

                        MASTER EQUIPMENT LEASE AGREEMENT

REFERENCE is made to the above referenced Master Equipment Lease Agreement
("Lease") dated the 15th of December, 2000, by and between Pharmchem, Inc. as
Lessee and Jules and Associates, Inc., as Lessor.

Notwithstanding the terms and conditions contained in the Master Equipment Lease
Agreement and to the limited extent hereof, this superceding anything to the
contrary, the parties hereto agree as follows:

        "AFTER THE FINAL RENTAL PAYMENT HAS BEEN MADE, PLUS ALL ACCRUED BUT
UNPAID LATE CHARGES, INTEREST, TAXES, PENALTIES AND/OR ALL OR ANY OTHER SUMS DUE
AND OWING UNDER THE LEASE AGREEMENT, AND NO EVENT OF DEFAULT, AS THE SAME IS
MORE FULLY DESCRIBED IN THE LEASE AGREEMENT, HAS OCCURRED OR IS CONTINUING,
LESSEE MAY PURCHASE ALL OF THE EQUIPMENT FOR $1.00 U.S. DOLLAR, FOR WHICH TITLE
SHALL PASS FROM LESSOR TO LESSEE."

In all other respects, the terms and conditions of the Master Equipment Lease
Agreement, as originally set forth, shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto, by their authorized signatories, have
executed this Addendum "A" at the date set forth below by their respective
signatures.

LESSEE: Pharmchem, Inc.                     LESSOR: Jules and Associates, Inc.

By:      /S/ David A. Lattanzio             By:      /S/ Jules Buenabenta
   ----------------------------------          ---------------------------------
Name:  David A. Lattanzio                   Name:  Jules Buenabenta

Title:   CFO                                Title:    President

Date:   December 15, 2000                   Date:     12/27/00

<PAGE>   7

                                  ADDENDUM "B"
                                       TO
                        MASTER EQUIPMENT LEASE AGREEMENT

REFERENCE is made to the above referenced Master Equipment Lease Agreement,
dated December 15, 2000, by and between Pharmchem, Inc. as Lessee and Jules and
Associates, Inc., as Lessor.

Notwithstanding the terms and conditions contained in the Master Equipment Lease
Agreement and to the limited extent hereof, this superceding anything to the
contrary, the parties hereto agree as follows:

SECTION 1. LEASE AGREEMENT. Line 2, after the word "Equipment", insert "or
Product" to be consistent with this change the word "Equipment" as it appears
throughout the Master Equipment Lease Agreement is revised to read "Equipment or
Product".

SECTION 6. COMMENCEMENT; RENTAL PAYMENTS; INTERIM RENTALS. Line 5, replace "The
first such rental payment .................. which the Equipment is accepted by
the Lessee" with "The first such rental payment shall be due and payable on the
day that the Equipment is accepted by the Lessee with successive rental payments
in the same amount due on the same day monthly thereafter. Line 6, delete, "In
addition to regular rentals ................... Lessee's receipt of invoice from
Lessor.".

SECTION 12. SURRENDER. At the end of the paragraph, insert "Superceded by the
attached Addendum "A" made a part hereof".

SECTION 13. RENEWAL. At the end of the paragraph, insert "Superceded by the
attached Addendum "A" made a part hereof".

SECTION 15. INSURANCE; LIENS; TAXES. Line 15, after the word "income" insert
"or/and gross revenues".

SECTION 20: DEFAULT: Replace subsection (a) with the following "Lessee shall
fail to make any payment due under the terms of this Lease for a period of ten
(10) days after written notice of such default from Lessor or its assigns."
Replace subsection (b) with the following, "Lessee shall fail to observe, keep
or perform any other provision of this Lease not involving payment of money, and
such failure shall continue for a period of thirty (30) days after written
notice of such default from Lessor or its assigns.". Subsection (h) delete "as
judged solely by Lessor".

SECTION 24. MISCELLANEOUS. At the end of this section insert the following "AS A
PRECAUTIONARY MATTER, IN THE EVENT THAT ANY COURT OF COMPETENT JURISDICTION
SHALL DETERMINE THAT THESE MASTER EQUIPMENT LEASE AGREEMENTS AND/OR ANY SCHEDULE
DOES NOT SO QUALIFY AS A LEASE, THEN LESSEE HEREBY GRANTS TO LESSOR A SECURITY
INTEREST IN ALL EQUIPMENT LEASED HEREUNDER AND THE PROCEEDS THEREOF (INCLUDING
EQUIPMENT, AND INSURANCE PROCEEDS) TO SECURE LESSEE'S OBLIGATIONS OWING TO
LESSOR HEREUNDER.

In all other respects, the terms and conditions of the Master Equipment Lease
Agreement, as originally set forth, shall remain in full force and effect.

In witness hereof, the parties hereto, by their authorized signatories, have
executed this Addendum "B" at the date set forth below by their respective
signatures.

LESSEE: Pharmchem, Inc.                     LESSOR: Jules and Associates, Inc.

By: /S/ David A. Lattanzio                  By:  /S/ Jules Buenabenta
   ------------------------------              ---------------------------------
Name: David A. Lattanzio                    Name: Jules Buenabenta

Title: CFO                                  Title:   President

Date: December 15, 2000                     Date:   12/27/00

<PAGE>   8

                                 ADDENDUM "C" TO
                        MASTER EQUIPMENT LEASE AGREEMENT
                     DATED December 15, 2000 By and BETWEEN
                          Pharmchem, Inc. AS LESSEE AND
                      JULES AND ASSOCIATES, INC. AS LESSOR

        1.      The Lessee shall have the right to prepay the indebtedness due
                under the Master Equipment Lease Agreement ("Agreement"), in
                whole, at any time after the first year of the lease term
                provided lessee is not in default as more fully explained in
                the Master Equipment Lease Agreement and subject to the
                following terms and conditions.

        2.      Lessee shall give Lessor at least thirty (30) days prior written
                notice of its intention to prepay.

        3.      In the Event Lessee elects to make prepayment, such prepayment
                shall consist of a sum equal to the total of the following:

                (a)     An amount equal to the present value of remaining rental
                        payments outstanding under the Agreement discounted at
                        8.94%; plus

                (b)     An amount equal to two percent (2%) of the above
                        calculated figure; plus

                (c)     Any and all other sums then due and owing and unpaid
                        under the Agreement, including but not limited to late
                        charges, taxes, penalties, if any.

Lessee: Pharmchem, Inc.                     Lessor: Jules and Associates, Inc.

By: /S/ David A. Lattanzio                  By:  /S/ Jules Buenabenta
   ------------------------------              ---------------------------------
Name: David A. Lattanzio, CFO               Name: Jules Buenabenta, President

Date: December 27, 2000                     Date:   12/27/00

<PAGE>   9

                                                                  LEASE SCHEDULE

                                              MASTER EQUIPMENT
                                              LEASE AGREEMENT NO. A09112000
                                              LEASE SCHEDULE NO. 1

BETWEEN JULES AND ASSOCIATES, INC. (LESSOR)

and Pharmchem, Inc. (LESSEE)

1.      DESCRIPTION OF EQUIPMENT

        Quantity       Item                          Model/Serial No.
        --------       ----                          ----------------

                "SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF"

2.      EQUIPMENT LOCATION

        The above Equipment is to be located and delivered to Lessee's premises
        at 1505-A O`Brien Drive, Menlo Park, CA 94025.

3.      RENTAL TERM: 48 months.

4.      RENTAL PAYMENT:

        The rental payment amount is $13,024.72 with successive rental payments
        in the same amount due on the same day monthly thereafter.

5.      NUMBER AND AMOUNT OF ADVANCE RENTAL PAYMENTS:

        NUMBER:   0                     $0.00

6.      SECURITY DEPOSIT: $0.00

7.      THIS SCHEDULE AND ITS TERMS AND CONDITIONS ARE HEREBY INCORPORATED BY
        REFERENCE IN THE ABOVE MASTER EQUIPMENT LEASE AGREEMENT. LESSEE PERMITS
        LESSOR TO INSERT MODEL AND SERIAL NUMBERS OF EQUIPMENT WHEN DETERMINED
        BY LESSOR.

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

LESSEE: Pharmchem, Inc.                     LESSOR: JULES AND ASSOCIATES, INC

(Must be signed by Authorized Corporate
    Officer, Partner, or Proprietor)

<TABLE>
<S>                                         <C>
                                            /S/ Jules Buenabenta,                President
                                            ----------------------------------------------
/s/ David A. Lattanzio                      Jules Buenabenta                      (Title)
--------------------------------            Accepted this 27th Day of December 2000
David A. Lattanzio, CFO                     At Los Angeles, CA
</TABLE>

<PAGE>   10

                                                                  LEASE SCHEDULE

                                              MASTER EQUIPMENT
                                              LEASE AGREEMENT NO. A09142000
                                              LEASE SCHEDULE NO. 1

BETWEEN JULES AND ASSOCIATES, INC. (LESSOR)

and Pharmchem, Inc. (LESSEE)

1.      DESCRIPTION OF EQUIPMENT

        Quantity      Item                      Model/Serial No.
        --------      ----                      ----------------

                "SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF"

2.      EQUIPMENT LOCATION

        The above Equipment is to be located and delivered to Lessee's premises
        at 1505-A O`Brien Drive, Menlo Park, CA 94025.

3.      RENTAL TERM: 36 months.

4.      RENTAL PAYMENT:

        The rental payment amount is $24,598.27 with successive rental payments
        in the same amount due on the same day monthly thereafter.

5.      NUMBER AND AMOUNT OF ADVANCE RENTAL PAYMENTS:

        NUMBER:   0                     $0.00

6.      SECURITY DEPOSIT: $0.00

7.      THIS SCHEDULE AND ITS TERMS AND CONDITIONS ARE HEREBY INCORPORATED BY
        REFERENCE IN THE ABOVE MASTER EQUIPMENT LEASE AGREEMENT. LESSEE PERMITS
        LESSOR TO INSERT MODEL AND SERIAL NUMBERS OF EQUIPMENT WHEN DETERMINED
        BY LESSOR.

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

LESSEE: Pharmchem, Inc.                     LESSOR: JULES AND ASSOCIATES, INC

(Must be signed by Authorized Corporate
    Officer, Partner, or Proprietor)

<TABLE>
<S>                                         <C>
                                            /S/ Jules Buenabenta,                President
                                            ----------------------------------------------
/s/ David A. Lattanzio                      Jules Buenabenta                      (Title)
--------------------------------            Accepted this 27th Day of December 2000
David A. Lattanzio, CFO                     At Los Angeles, CA
</TABLE>

<PAGE>   11

                                                                  LEASE SCHEDULE

                                              MASTER EQUIPMENT
                                              LEASE AGREEMENT NO. A09142000
                                              LEASE SCHEDULE NO. 2

BETWEEN JULES AND ASSOCIATES, INC. (LESSOR)

and Pharmchem, Inc. (LESSEE)

1.      DESCRIPTION OF EQUIPMENT

        Quantity         Item                        Model/Serial No.

                "SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF"

2.      EQUIPMENT LOCATION

        The above Equipment is to be located and delivered to Lessee's premises
        at 1505-A O`Brien Drive, Menlo Park, CA 94025.

3.      RENTAL TERM: 48 months.

4.      RENTAL PAYMENT:

        The rental payment amount is $26,028.22 with successive rental payments
        in the same amount due on the same day monthly thereafter.

5.      NUMBER AND AMOUNT OF ADVANCE RENTAL PAYMENTS:

        NUMBER:   0                     $0.00

6.      SECURITY DEPOSIT: $0.00

7.      THIS SCHEDULE AND ITS TERMS AND CONDITIONS ARE HEREBY INCORPORATED BY
        REFERENCE IN THE ABOVE MASTER EQUIPMENT LEASE AGREEMENT. LESSEE PERMITS
        LESSOR TO INSERT MODEL AND SERIAL NUMBERS OF EQUIPMENT WHEN DETERMINED
        BY LESSOR.

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

LESSEE: Pharmchem, Inc.                     LESSOR: JULES AND ASSOCIATES, INC

(Must be signed by Authorized Corporate
    Officer, Partner, or Proprietor)

<TABLE>
<S>                                         <C>
                                            /S/ Jules Buenabenta,                President
                                            ----------------------------------------------
/s/ David A. Lattanzio                      Jules Buenabenta                      (Title)
--------------------------------            Accepted this 27th Day of December 2000
David A. Lattanzio, CFO                     At Los Angeles, CA
</TABLE>

<PAGE>   12

                                   EXHIBIT "A"
                           JULES AND ASSOCIATES, INC.
                              LEASE SCHEDULE NO. 1

<TABLE>
<CAPTION>
               QUANTITY                     EQUIPMENT DESCRIPTION
               --------                     ---------------------
               <S>                          <C>
               VENDOR:                      NLFC, INCORPORATED

               1                            (INVOICE #079906)
                                            AGREEMENT 9901-A-PROJECT MANAGEMENT FOR
                                            AUGUST 1999

               1                            (INVOICE #079930)
                                            MODIFICATION SPECIFICATIONS FOR  THE LIS
                                            SYSTEM REVISIONS (DATED 06/29/99)

               1                            (INVOICE #089908)
                                            MODIFICATION SPECIFICATIONS FOR  THE LIS
                                            SYSTEM REVISIONS (DATED 06/29/99)

               1                            (INVOICE #109929A, 109929B)
                                            MODIFICATION SPECIFICATIONS FOR  THE LIS
                                            SYSTEM REVISIONS (DATED 06/29/99)
</TABLE>

Along with all additions, substitutions, attachments, replacements, and
accessions thereof, plus the proceeds of all the foregoing including amounts
payable under any insurance policy.

This Exhibit "A" is attached to and part of Jules and Associates, Inc. Lease
Schedule No. 1 and constitutes a true and accurate description of the equipment.

LESSEE: Pharmchem, Inc.

ACKNOWLEDGED & ACCEPTED BY:

By: /S/ David A. Lattanzio
   --------------------------------------
       David A. Lattanzio

TITLE: CFO<PAGE>   1
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                                                   EXHIBIT 10.30

                             CROSS-LICENSE AGREEMENT

      THIS CROSS-LICENSE AGREEMENT and all Exhibits attached hereto which are
hereby incorporated by reference (this "Agreement") is entered into as of March
12, 2001 (the "Effective Date") by and among ACLARA BIOSCIENCES, INC., a
Delaware corporation having its principal place of business at 1288 Pear Avenue,
Mountain View, California 94043 (collectively with all wholly-owned subsidiaries
of ACLARA BioSciences, Inc., "Aclara"), and CALIPER TECHNOLOGIES CORP., a
Delaware corporation having its principal place of business at 605 Fairchild
Drive, Mountain View, California 94043 (collectively with all wholly-owned
subsidiaries of Caliper Technologies Corp., "Caliper").

                                    RECITALS

      WHEREAS, Aclara and Caliper have entered into that certain Settlement
Agreement, dated as of even date herewith ("Settlement Agreement"), and that
certain Common Stock Issuance Agreement ("Common Stock Issuance Agreement"),
dated as of even date herewith, pursuant to which the Parties effectively
resolved various disputes between Aclara and Caliper;

      WHEREAS, pursuant to the Settlement Agreement, the Parties have agreed to
enter into a cross license agreement regarding certain patent rights;

      WHEREAS, Aclara wishes to grant to Caliper a license to certain Aclara
patents, subject to the terms and conditions set forth herein; and

      WHEREAS, Caliper wishes to grant to Aclara a license to certain patents
that Caliper has licensed from a third party, subject to the terms and
conditions set forth herein;

      NOW, THEREFORE, in consideration of the mutual covenants and consideration
herein expressed, the sufficiency of which is hereby acknowledged, Aclara and
Caliper agree as follows:

                                    AGREEMENT

1.    DEFINITIONS

      For purposes of this Agreement, the following terms shall have the
following meanings:

      1.1 "`022 PATENT FAMILY" shall mean (a) United States Patent No. [ * ]
(the "`022 Patent"); (b) any Patent that directly claims priority to the `022
Patent (e.g., as a continuation, in-whole or in-part, divisional, reexamination,
or reissue of the `022 Patent); and (c) any Patent that

                                       1.

<PAGE>   2

indirectly claims priority to the `022 Patent (e.g., any Patent claiming
priority to one or more Patents that directly or indirectly claim priority to
the `022 Patent), and any Foreign Counterparts of any of the foregoing. The `022
Patent Family includes, without limitation, United States Patent [ * ], and any
continuations, in whole or in part, divisions, reissues, reexamination,
renewals, substitutions, confirmations, registrations, revalidations, revisions,
extensions and Foreign Counterparts of the foregoing Patents.

      1.2 "ACLARA FIELD OF USE" shall mean any and all fields, except for [ * ]

      1.3 "ACLARA LICENSED INSTRUMENT" shall mean an [ * ] including those
specifically identified and described in Exhibit A (but excluding, in any event,
any microfluidic Chip, as defined in Section 1.4 below) (a) the manufacture, use
(in the manner intended) or sale of which, by Aclara or any third party, would
infringe a Valid Claim of a Patent in the Ramsey Patent Family in the country of
such manufacture, use or sale, absent a license, or (b) that is designed or used
(in the manner intended), by Aclara or any third party, to perform a method that
would infringe a Valid Claim of a Patent in the Ramsey Patent Family in the
country where such method is performed, absent a license.

      1.4 "ACLARA LICENSED LABCARD" shall mean a microfluidic chip or card,
regardless of its size or thickness ("Chip"), constructed from [ * ] including
but not limited to the types of Chips illustrated in Figures 1 and 2 on Exhibit
A, (a) the manufacture, use (in the manner intended) or sale of which, by Aclara
or any third party, would infringe a Valid Claim of a Patent in the Ramsey
Patent Family in the country of such manufacture, use or sale, absent a license,
or (b) that is designed or used (in the manner intended), by Aclara or any third
party, to perform a method that would infringe a Valid Claim of a Patent in the
Ramsey Patent Family in the country where such method is performed, absent a
license.

      1.5 "ACLARA LICENSED PRODUCT" shall mean an Aclara Licensed Instrument
and/or an Aclara Licensed LabCard, as applicable.

      1.6 "ACLARA PRODUCT" shall mean an Aclara Licensed Product:

            (a) that is (i) supplied commercially by Aclara to end users (or
otherwise used in connection with a service bureau, contract research or similar
business), either directly or through distributors, subdistributors or
commercial partners or collaborators and either manufactured by Aclara or on
Aclara's behalf by a third party, or (ii) a product for which Aclara receives
revenues [ * ] generated by and attributable to such product (which revenues
[ * ] shall exclude amounts attributable to separate products or components);
and

            (b) for which Aclara and Aclara's Controlled Subsidiaries
collectively provide [ * ] of the total (i) costs and expenditures (including
direct costs, reasonably allocable overhead and other indirect costs, except
when calculating costs and expenditures of third parties, in which case only the
contracted for costs and expenditures shall be taken into account), including,
without limitation research and development funding and costs of purchasing or
licensing rights for such product in development; or (ii) personnel time, in
each case, expended to research and develop such Aclara Licensed Product. For
clarification and not in expansion or limitation of the foregoing, such total
costs, expenditures and personnel time shall exclude amounts attributable to

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                       2.
<PAGE>   3

separate products or components and amounts attributable to the research and
development of core technology (including, without limitation, core
manufacturing technology) but shall include amounts attributable to the research
and development of technology specific to the applicable Aclara Licensed Product
(including, without limitation, manufacturing technology specific to such
product). For purposes of this Section 1.6(b), it shall be presumed that amounts
expended by a third party in connection with the research and development of an
Aclara Licensed Product or manufacturing technology therefor [ * ]

      For clarification and not in expansion or limitation of the foregoing,
subclause (a)(i) shall be met even if, and notwithstanding the fact that, Aclara
initially commercially supplies, either directly or through distributors,
subdistributors or commercial partners or collaborators, or manufactures itself
or has manufactured on its behalf by a third party, an Aclara Licensed Product
and then, because Aclara is unable to meet such supply or manufacturing
obligations despite its good faith efforts, such product is subsequently
supplied commercially or manufactured by a commercial partner or collaborator.

      1.7 "ACLARA SYSTEM" shall mean a product that includes at least one Aclara
Product and at least one other component or product which together perform one
or more functions, biochemical or chemical manipulations or series thereof or
other tasks or experiments.

      1.8 "ADR PROCEDURE" shall mean the alternative dispute resolution
procedures set forth in Sections 20 and 21 of the Settlement Agreement.

      1.9 "CALIPER LICENSED INSTRUMENT" shall mean an [ * ] (but excluding, in
any event, any microfluidic Chip) (a) the manufacture, use (in the manner
intended) or sale of which, by Caliper or any third party, would infringe a
Valid Claim of a Patent in the `022 Patent Family in the country of such
manufacture, use or sale, absent a license, or (b) that is designed or used (in
the manner intended), by Caliper or any third party, to perform a method that
would infringe a Valid Claim of a Patent in the `022 Patent Family in the
country where such method is performed, absent a license.

      1.10 "CALIPER LICENSED LABCHIP" shall mean a microfluidic Chip constructed
from [ * ] (a) the manufacture, use (in the manner intended) or sale of which,
by Caliper or any third party, would infringe a Valid Claim of a Patent in the
`022 Patent Family in the country of such manufacture, use or sale, absent a
license, or (b) that is designed or used (in the manner intended), by Caliper or
any third party, to perform a method that would infringe a Valid Claim of a
Patent in the `022 Patent Family in the country where such method is performed,
absent a license. Caliper Licensed LabChips include, without limitation, Chips
constructed from [ * ] but Caliper Licensed LabChips shall not include a Chip
wherein [ * ] or a Chip [ * ].

      1.11 "CALIPER LICENSED PRODUCT" shall mean a Caliper Licensed Instrument
and/or a Caliper Licensed LabChip, as applicable.

      1.12 "CALIPER PRODUCT" shall mean a Caliper Licensed Product:

            (a) that is (i) supplied commercially by Caliper to end users (or
otherwise used in connection with a service bureau, contract research or similar
business), either directly or

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                       3.
<PAGE>   4

through distributors, subdistributors or commercial partners or collaborators
and either manufactured by Caliper or on Caliper's behalf by a third party, or
(ii) a product for which Caliper receives revenues [ * ] generated by and
attributable to such product (which revenues [ * ] shall exclude amounts
attributable to separate products or components); and

            (b) for which Caliper and Caliper's Controlled Subsidiaries
collectively provide [ * ] of the total (i) costs and expenditures (including
direct costs, reasonably allocable overhead and other indirect costs, except
when calculating costs and expenditures of third parties, in which case only the
contracted for costs and expenditures shall be taken into account), including,
without limitation research and development funding and costs of purchasing or
licensing rights for such product in development; or (ii) personnel time, in
each case, expended to research and develop such Caliper Licensed Product. For
clarification and not in expansion or limitation of the foregoing, such total
costs, expenditures and personnel time shall exclude amounts attributable to
separate products or components and amounts attributable to the research and
development of core technology (including, without limitation, core
manufacturing technology) but shall include amounts attributable to the research
and development of technology specific to the applicable Caliper Licensed
Product (including, without limitation, manufacturing technology specific to
such product). For purposes of this Section 1.12(b), it shall be presumed that
amounts expended by a third party in connection with the research and
development of a Caliper Licensed Product or manufacturing technology therefor [
* ]

      For clarification and not in expansion or limitation of the foregoing,
subclause (a)(i) shall be met even if, and notwithstanding the fact that,
Caliper initially commercially supplies, either directly or through
distributors, subdistributors or commercial partners or collaborators, or
manufactures itself or has manufactured on its behalf by a third party, a
Caliper Licensed Product and then, because Caliper is unable to meet such supply
or manufacturing obligations despite its good faith efforts, such product is
subsequently supplied commercially or manufactured by a commercial partner or
collaborator.

      1.13 "CALIPER SYSTEM" shall mean a product that includes at least one
Caliper Product and at least one other component or product which together
perform one or more functions, biochemical or chemical manipulations or series
thereof or other tasks or experiments.

      1.14 "CHANGE IN CONTROL" shall mean, as to a Party, any acquisition of
securities, merger, consolidation, reorganization, proxy contest or other
transaction or event involving such Party's microfluidic systems line of
business or its securities (or any series of related transactions or events) as
a result of which any entity or person (or any group of related entities or
persons) that did not directly or indirectly Control such Party or such Party's
microfluidic systems line of business prior to the transaction or event (or
series of transactions or events) thereafter directly or indirectly Controls
such Party or such Party's microfluidic systems line of business. Change in
Control of a Party includes, without limitation, the acquisition by another
entity (whether directly or indirectly, and whether alone or in combination with
related entities) of (a) more than fifty percent (50%) of the voting securities
of such Party or of any entity that Controls such Party, or (b) of the right
(whether directly or indirectly, and whether alone or in combination with
related entities) or power to direct or cause the direction of management or
policies of the entity in question (whether through ownership of securities or
other ownership interests, by contract or otherwise).

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.
                                       4.
<PAGE>   5

      1.15 "CONTROL" (including, with correlative meanings, "Controlled,"
"Controls" and other forms) shall mean, (a) as to an entity, (i) direct or
indirect ownership of fifty percent (50%) or more of the voting securities or
other ownership interest in the entity in question; or (ii) possession, directly
or indirectly, of the power to direct or cause the direction of management or
policies of the entity in question (whether through ownership of securities or
other ownership interests, by contract or otherwise), and (b) as to a Party's
microfluidic systems line of business, ownership of all or substantially all of
the assets relating thereto.

      1.16 "CONTROLLED SUBSIDIARY" shall mean, as to a Party, an entity with
respect to which such Party directly owns more than fifty percent (50%) (or the
maximum ownership interest permitted by applicable law in the jurisdiction of
incorporation or, if not incorporated, of formation, if fifty percent (50%) or
less) of the voting securities or other ownership interest of the entity in
question.

      1.17 "COPIED CLAIM" shall mean a Patent claim copied from another Patent
claim so that it is the same as, or for substantially the same subject matter
as, the other Patent claim, as determined under Title 35 United States Code
Section 135(b).

      1.18 "[ * ]" shall have the meaning assigned to it in Section 1.20.

      1.19 "CURRENT ACLARA LICENSED INSTRUMENT" shall mean the first
commercially released version of any Aclara Licensed Instrument which is the
subject of an on-going development program of Aclara as of the Effective Date,
[ * ] Current Aclara Licensed Instruments will also include (a) any minor fixes
or improvements to, or optimizations of any of the foregoing, (b) add-on modules
to any of the foregoing in active development [ * ] and (c) add-on modules to
any of the foregoing which are priced at [ * ] of the retail price of the
Current Aclara Licensed Instrument to which such add-on module relates.

      1.20 "[ * ]" shall mean microfluidic channel structures that consist of
[ * ] including, without limitation, the structure(s) labeled "[ * ]" shown in
Exhibit B; a [ * ] is contrasted to and does not include [ * ] that consist of a
[ * ], including, without limitation, the structure(s) labeled "[ * ]" described
in Exhibit B (hereinafter the "[ * ]").

      1.21 "FOREIGN COUNTERPART" shall mean, as to a United States patent, any
foreign Patent filed outside the United States (a) that directly or indirectly
claims priority to an application that gave rise to such United States patent,
or (b) provides priority to such application.

      1.22 "FUTURE ACLARA LICENSED INSTRUMENT" shall mean all Aclara Licensed
Instruments other than Current Aclara Licensed Instruments, including, without
limitation, any substantially redesigned or re-engineered version of a Current
Aclara Licensed Instrument, or a version of an Aclara Licensed Instrument which
is identified to customers by the marketing Party as a separate and distinct
product from a Current Aclara Licensed Instrument.

      1.23 "INTERFERENCE" shall mean a proceeding in accordance with Title 35
United States Code Section 135 in which the United States Board of Patent
Appeals and Interferences determines

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                       5.
<PAGE>   6

questions of Priority of Invention between Patent claims in an issued United
States patent and/or one or more patent applications filed in the United States.

      1.24 "NET SALES" shall mean the gross amount billed or invoiced [ * ] for
Aclara Licensed Products, which gross amount is billed or invoiced by Aclara, a
Sublicensee of Aclara or a commercial partner or collaborator of Aclara
(provided that Net Sales shall not include amounts billed or invoiced (i) [ * ]
(ii) [ * ] (iii) for Aclara Licensed Products that would not meet the definition
of Aclara Licensed Products but for a modification or use of such products by
the end-user other than in the manner intended in good faith by Aclara), less
the following deductions: [ * ]"Net Sales" shall not include, to the extent
reasonable under the circumstances, [ * ] Furthermore, "Net Sales" shall not
include [ * ] In the event Aclara or a Sublicensee uses an Aclara Licensed
Product for revenue generating commercial purpose, e.g., in a service or
information business, Net Sales shall be set at [ * ] as mutually determined by
the Parties or in accordance with the ADR Procedure if the Parties are unable to
reach agreement [ * ].

      1.25 "OAK RIDGE AGREEMENTS" shall mean those certain Sole Commercial
Patent License Agreements, each dated as of September 1, 1995 (one regarding
patent rights within the United States and the other regarding patent rights
outside the United States), originally between Lockheed Martin Energy Systems,
Inc. and Caliper subsequently assigned from Lockheed Martin Energy Systems, Inc.
to UT-Battele, LLC, as subsequently amended, together with any attachments or
addenda thereto.

      1.26 "PARTY" shall mean either Aclara or Caliper, and "Parties" shall mean
Aclara and Caliper.

      1.27 "PATENT" shall mean all patents, inventor's certificates and patent
applications throughout the world, including any renewal, division, continuation
(in-whole or in-part), or continued prosecution application of any of such
certificates and applications, and any and all patents issuing thereon, and any
and all reissues, extensions, substitutions, confirmations, registrations,
revalidations, revisions, Foreign Counterparts and additions of or to any of the
foregoing.

      1.28 "PRIORITY OF INVENTION" shall mean priority of invention as
determined under 35 United States Code Section 102(g).

      1.29 "RAMSEY PATENT FAMILY" shall mean, to the extent of Caliper's rights
under the Oak Ridge Agreements to sublicense rights in, to, and under the
following, (a) United States Patent No. [ * ] (the "`229 Patent"); (b) any
Patent that directly claims priority to the `229 Patent (e.g., as a
continuation, in-whole or in-part, divisional, reexamination, or reissue of the
`229 Patent); and (c) any Patent that directly or indirectly claims priority to
the `229 Patent (e.g., any Patent claiming priority to one or more Patents that
directly or indirectly claim priority to the `229 Patent), and any Foreign
Counterparts to any of the foregoing. The Ramsey Patent Family shall include,
without limitation, United States Patent [ * ] and any continuations, in whole
or in part, divisions, reissues, reexamination, renewals, substitutions,
confirmations, registrations, revalidations, revisions, extensions and Foreign
Counterparts of any of the foregoing Patents. For clarification, a Patent shall
be deemed a Patent in the Ramsey Patent Family only to the

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                       6.
<PAGE>   7

extent and only so long as Caliper has rights under the Oak Ridge Agreements to
sublicense rights in, to and under the Ramsey Patent Family with respect to such
Patent.

      1.30 "SUBLICENSEE" shall mean any third party to whom Aclara or Caliper,
as the case may be, have sublicensed any or all of the rights licensed hereunder
pursuant to Section 2.1.2 or 2.2.2, as applicable, excluding third parties who
are sublicensed such rights solely pursuant to the last sentence of Section
2.1.2 or 2.2.2, as applicable.

      1.31 "VALID CLAIM" shall mean any claim of an issued and unexpired patent
which has not been (a) found or held unenforceable or invalid in any alternative
dispute resolution proceedings pursuant to the ADR Procedure, or by a court or
other governmental agency of competent jurisdiction, regardless of whether or
not such finding or holding has been appealed or is appealable, provided,
however, that if such finding or holding is subsequently overturned upon an
appeal (the "Appeal Decision"), such claim shall again be deemed a Valid Claim
as of the effective date of the Appeal Decision, or (b) abandoned, disclaimed or
admitted to be invalid or unenforceable through reissue, disclaimer or
otherwise.

      [ * ]

2.    LICENSES

      2.1 LICENSE GRANT BY ACLARA.

            2.1.1 Subject to the terms and conditions of this Agreement, Aclara
hereby grants to Caliper a [ * ] license under all of its right, title and
interest in, to and under the `022 Patent Family to make, use, sell, offer to
sell, and import Caliper Licensed Products.

            2.1.2 Subject to the terms and conditions of this Agreement, Caliper
may sublicense any or all of the rights granted to it by Aclara in Section 2.1.1
solely to third parties engaged with or by Caliper in the research, development,
manufacture or sale of a Caliper System, or any component thereof (it being
understood in the case of such components that Caliper and such third parties
need not be engaged in the research development, manufacture or sale of the
entire Caliper System itself, or any part thereof, other than such component),
provided that such sublicense is limited solely to the grant of rights to be
exercised (i) in connection with the research, development, manufacture or sale
of such Caliper System, or (ii) in connection with the research, development,
manufacture or sale of components of such Caliper System solely to the extent
that such components are researched, developed, manufactured or sold in
connection with or for use with such Caliper System. Caliper may also sublicense
the right to use Caliper Licensed Products granted to it by Aclara in Section
2.1.1 to end users of Caliper Licensed Products which are sold or supplied to
such end user within the scope of the licenses granted hereunder, to the extent
necessary to permit such end user to use such products in the manner intended.

            2.1.3 Subject to the terms and conditions of this Agreement, Aclara
hereby grants to Caliper a [ * ]worldwide [ * ] license under all of its right,
title and interest in, to and under the `022 Patent Family solely to make and
use (specifically excluding any rights to sell, offer to sell or import),
microfluidic Chips which [ * ] ("Caliper R&D Chips"), solely for the

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                       7.
<PAGE>   8

purpose of research and development of products and technologies to be
commercialized by Caliper itself, or in conjunction with others, but excluding
any research and development performed on behalf of, or for the benefit of,
other parties, including as part of a service business or contract research and
development business. Caliper may have the foregoing rights exercised on its
behalf by partners and collaborators participating with it in such permitted
research and development efforts, and may provide such partners and
collaborators with Caliper R&D Chips in connection with such efforts; provided,
however that Caliper has no right under this Section 2.1.3 to transfer Caliper
R&D Chips to any third party other than such partners and collaborators. Such
partners and collaborators have no rights under this Section 2.1.3 to transfer
such Caliper R&D Chips to any third parties. For clarification and not in
limitation or expansion of the rights granted under Section 2.1.1, Aclara agrees
and acknowledges that Caliper has the right under Section 2.1.1 to use Caliper
Licensed Instruments in connection with Caliper R&D Chips for purposes of
exercising the rights granted under this Section 2.1.3.

            2.1.4 In the event of a Change in Control of Caliper, regardless of
whether or not this Agreement is assigned in connection therewith under Section
11.2, the licenses granted in this Section 2.1 shall not cover or extend to any
pre-existing products (that is, products already on the market or in active
development immediately prior to the date of such Change in Control) of the
party or parties gaining Control of Caliper, except to the extent such party or
parties are Sublicensees of Caliper prior to such Change in Control.

      2.2 LICENSE GRANT BY CALIPER.

            2.2.1 Subject to the terms and conditions of this Agreement, Caliper
hereby grants to Aclara [ * ] license under all of its right, title and interest
in, to and under the Ramsey Patent Family to make, use, sell, offer to sell, and
import Aclara Licensed Products in the Aclara Field of Use.

            2.2.2 Subject to the terms and conditions of this Agreement, Aclara
may sublicense any or all of the rights granted to it by Caliper in Section
2.2.1 solely to third parties engaged with or by Aclara in the research,
development, manufacture or sale of an Aclara System, or any component thereof
(it being understood in the case of such components that Aclara and such third
parties need not be engaged in the research development, manufacture or sale of
the entire Aclara System itself, or any part thereof, other than such
component), provided that such sublicense is limited solely to the grant of
rights to be exercised (i) in connection with the research, development,
manufacture or sale of such Aclara System, or (ii) in connection with the
research, development, manufacture or sale of components of such Aclara System,
solely to the extent that such components are researched, developed,
manufactured or sold in connection with or for use with such Aclara System.
Aclara may also sublicense the right to use Aclara Licensed Products granted to
it by Caliper in Section 2.2.1 to end users of Aclara Licensed Products which
are sold or supplied to such end user within the scope of the licenses granted
hereunder, to the extent necessary to permit such end user to use such products
in the manner intended.

            2.2.3 Subject to the terms and conditions of this Agreement, Caliper
hereby grants to Aclara a [ * ], worldwide [ * ] license under all of its right,
title and interest in, to and under the Ramsey Patent Family solely to make and
use (specifically excluding any rights to sell,

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                       8.
<PAGE>   9

offer to sell or import), microfluidic Chips which [ * ] ("Aclara R&D Chips"),
solely for the purpose of research and development of products and technologies
to be commercialized by Aclara itself, or in conjunction with others, but
excluding any research and development performed on behalf of, or for the
benefit of, other parties, including as part of a service business or contract
research and development business. Aclara may have the foregoing rights
exercised on its behalf by partners and collaborators participating with it in
such permitted research and development efforts, and may provide such partners
and collaborators with Aclara R&D Chips in connection with such efforts;
provided, however that Aclara has no right under this Section 2.2.3 to transfer
Aclara R&D Chips to any third party other than such partners and collaborators.
Such partners and collaborators have no rights under this Section 2.2.3 to
transfer such Aclara R&D Chips to any third parties. For clarification and not
in limitation or expansion of the rights granted under Section 2.2.1, Caliper
agrees and acknowledges that Aclara has the right under Section 2.2.1 to use
Aclara Licensed Instruments in connection with Aclara R&D Chips for purposes of
exercising the rights granted under this Section 2.2.3.

            2.2.4 In the event of a Change in Control of Aclara, regardless of
whether or not this Agreement is assigned in connection therewith under Section
11.2, the licenses granted in this Section 2.2 and the corresponding royalty
obligations in Section 3 hereof shall not cover or extend to any pre-existing
products (that is, products already on the market or in active development
immediately prior to the date of such Change in Control) of the party or parties
gaining Control of Aclara, except to the extent such party or parties are
Sublicensees of Aclara prior to such Change in Control.

            2.2.5 Without prejudice to Sections 6.1(vi) and 6.3 below, Aclara
and its Sublicensees agree that the rights granted by Caliper under this Section
2.2 are subject to the applicable terms and conditions of the Oak Ridge
Agreements.

      2.3 EXPANSION OF LICENSE GRANTS. If either Party identifies any component
or product which would be an Aclara Licensed Instrument or a Caliper Licensed
Instrument, as the case may be, but for the fact that [ * ] as applicable, which
license shall otherwise have the same scope, and be subject to the same terms
and conditions as the licenses granted in Sections 2.1 and 2.2 hereof,
respectively.

      2.4 NO OTHER RIGHTS. Caliper acknowledges and agrees that Aclara shall
retain its rights in, to and under the `022 Patent Family, subject only to the
rights and licenses expressly granted herein. Except as expressly provided
herein, no right, title, or interest is granted by Aclara to Caliper in, to or
under the `022 Patent Family or any other Patents or rights. Aclara acknowledges
and agrees that Caliper shall retain its rights in, to and under the Ramsey
Patent Family, subject only to the rights and licenses expressly granted herein.
Except as expressly provided herein, no right, title, or interest is granted by
Caliper to Aclara in, to or under the Ramsey Patent Family or any other Patents
or rights.

      2.5 NO COVENANT NOT TO PRACTICE. Nothing in this Agreement shall be
construed as a covenant on the part of either Aclara or Caliper to refrain from
infringing (or contributorily infringing) any Patents in the Ramsey Patent
Family or the `022 Patent Family, respectively, or to refrain from practicing
any such Patent outside the scope of the licenses granted in Sections 2.1 and
2.2 hereof, respectively.

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                       9.
<PAGE>   10

3.      PAYMENTS AND RELATED OBLIGATIONS

      3.1 LICENSE FEE. The amount of five million dollars ($5,000,000.00)
payable to Caliper pursuant to Section 4(c) of the Settlement Agreement shall be
deemed to constitute partial consideration for the rights and licenses granted
pursuant to Section 2.2 above.

      3.2 ROYALTY PAYMENTS. In partial consideration of the rights and licenses
granted pursuant to Section 2.2 above and subject to any applicable credits
under Section 3.2.2:

            3.2.1 Aclara shall make running royalty payments on a quarterly
basis to Caliper, within [ * ] of the end of each calendar quarter, as follows:

                  3.2.1.1 For Aclara Licensed Instruments, Aclara shall pay to
Caliper a royalty of (a) [ * ] of Net Sales of Current Aclara Licensed
Instruments, (b) [ * ] of Net Sales of Future Aclara Licensed Instruments billed
or invoiced prior to the end of 2008, and (c) [ * ] of Net Sales of Future
Aclara Licensed Instruments billed or invoiced any time after the end of 2008.

                  3.2.1.2 For Aclara Licensed LabCards, Aclara shall pay to
Caliper a royalty of (a) [ * ] of Net Sales of Aclara Licensed LabCards [ * ],
and (b) [ * ] of Net Sales of other Aclara Licensed LabCards.

            3.2.2 Aclara shall pay to Caliper a minimum annual royalty payment
of [ * ], each such payment to be reduced by any royalty payments previously
made by Aclara pursuant to Section 3.2.1 with respect to such calendar year and
to be fully creditable (after any such reduction) against any accrued but unpaid
royalties otherwise owed by Aclara with respect to the remainder of such
calendar year. Aclara shall not be entitled to carry forward any excess royalty
payments made with respect to [ * ] to satisfy its minimum annual royalty
obligations for [ * ] or its other royalty obligations to Caliper for [ * ] or
thereafter (except with respect to the application of the [ * ] minimum annual
royalty to [ * ] royalties as provided above). No minimum royalty payment shall
be due from Aclara to Caliper after the end of [ * ].

            3.2.3 Royalties shall be calculated in accordance with the terms of
this Agreement and United States generally accepted accounting procedures,
consistently applied, to the extent such accounting procedures do not conflict
and are not inconsistent with the terms of this Agreement. Interest shall accrue
on any delinquent payment at an annual rate equal to the sum of (i) [ * ] and
(ii) [ * ], such accrual beginning on the date such payment was due under this
Agreement.

            3.2.4 For purposes of this Agreement, Aclara Licensed Products shall
be royalty bearing in accordance with Section 3, [ * ]

      3.3 COMBINATION PRODUCTS. If an Aclara Licensed Product is sold in
combination with another product or products where one or more of such products
are not Aclara Licensed Products (a "Combination Product") and could reasonably
be deemed to be separate product(s), Net Sales under such circumstances shall be
calculated by multiplying the Net Sales of the Combination Product (as defined
in the standard Net Sales definition) by the fraction, A/(A + B)

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                      10.
<PAGE>   11

where A is the average sale price of the Aclara Licensed Product when sold
separately and B is the average sale price of the other product(s) when sold
separately. When determining the average sale price of a product, the average
sale price shall be calculated using data arising from the twelve (12) months
preceding the calculation. In the event that the average sale price of the
products in a Combination Product cannot reasonably be so determined, then Net
Sales shall be calculated by multiplying the Net Sales of the Combination
Product by the fraction, A/(A+B) where A is the fair market value of the Aclara
Licensed Product and B is the fair market value of the other product(s). The
fair market value of a product shall be determined by taking all relevant
factors into account, including, without limitation, any method of allocation
used by Aclara and/or its commercial partners for its or their own financial
purposes. By way of example, for purposes of the first sentence of this Section
3.3 and without limiting the generality of such sentence, the Parties agree and
acknowledge that (a) [ * ], (b) [ * ], (c) [ * ], (d) [ * ], (e) [ * ], (f)
[ * ], (g) [ * ], (h) [ * ], (i) [ * ], (j) [ * ]; all ((a) through (j)) can
reasonably be deemed to be separate product(s). For purposes of this Section
3.3, [ * ] shall not be construed to include [ * ]

      3.4 ROYALTY TERM. Aclara's obligation to pay royalties to Caliper under
Section 3.2, if any, shall commence on the Effective Date and continue until the
expiration, abandonment or final determination of invalidity or unenforceability
of the last Valid Claim in the Ramsey Patent Family.

      3.5 PAYMENT TERMS.

            3.5.1 METHOD OF PAYMENT; CURRENCY. All payments made by Aclara under
this Agreement shall be made in United States dollars, and such payments shall
be made by check or wire transfer to one or more bank accounts to be designated
in writing by Caliper. In the event that Aclara Licensed Products are sold in
currencies other than United States dollars, Net Sales shall be calculated by
Aclara by conversion of foreign currency to United States dollars at the
conversion rate existing in the United States (referencing the "United States
dollar noon buying rates", or its equivalent, published in the Wall Street
Journal) on the last working day of each period during which royalties are
calculated, net of applicable exchange related charges, or otherwise in
accordance with generally accepted accounting principles consistently applied.

            3.5.2 TAXES. All applicable sales, use, excise, value added,
withholding and similar taxes levied on account of the royalties accruing or
made to Caliper pursuant to the terms and conditions of this Agreement, other
than taxes on Caliper's net income, shall be paid by Aclara. If provision is
made in law or regulation for withholding of taxes of any type, levies or other
charges with respect to any royalty due and payable under this Agreement by
Aclara to Caliper, Aclara shall be entitled to deduct such tax, levy or charge
from the royalty to be made by Aclara and pay such tax, levy or charge to the
proper taxing authority. Aclara shall provide Caliper with prompt notice of the
taking of any such deduction. Aclara shall deliver to Caliper a receipt of
payment of any such tax, levy or charge. At Caliper's request and at Aclara's
expense, Aclara shall provide reasonable assistance to Caliper in any effort by
Caliper in claiming any exemption from such deductions or withholdings under any
double taxation or similar agreement or treaty from time to time in force, and
in minimizing the amount required to be so withheld or deducted.

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                      11.
<PAGE>   12

            3.5.3 RECORDS. Aclara shall keep such books and records of Net Sales
as are reasonably necessary to determine the amounts payable to Caliper
hereunder for a period of [ * ] after the royalty payments to which such books
and records relate are due. Upon Caliper's written request and at least [ * ]
prior notice, but not more frequently than [ * ] per calendar year, Aclara shall
permit a mutually acceptable, independent accounting firm to examine, [ * ],
such records during Aclara's regular business hours for the purpose of and to
the extent necessary to verify any report required under this Agreement with
respect to Net Sales made not more than [ * ] prior to the date of such written
request from Caliper. [ * ], and shall execute a confidentiality agreement with
Aclara in a form reasonably acceptable to Aclara that prohibits the accounting
firm from disclosing information obtained in connection with such inspection
other than disclosure to Caliper of the amount of any underpayment or
overpayment and, only to the extent necessary to achieve the purposes hereof,
the basis for the calculation of such amount. Caliper shall maintain in
confidence and not use for any other purposes any information obtained in
connection with such inspection. If the amounts due to Caliper are determined to
have been underpaid, [ * ], without prejudice to additional rights Caliper may
have pursuant to Section 9.4, and [ * ]. If Aclara has overpaid any amount under
this Agreement, [ * ].

            3.5.4 REPORTS. [ * ] of the last day of each calendar quarter
occurring, in whole or in part, during the term of this Agreement, Aclara shall
deliver to Caliper a report setting forth in reasonable detail the calculation
of the total royalty payments due under this Section 3, if any, with respect to
Net Sales [ * ] during that quarter.

            3.5.5 LIMITATIONS ON ROYALTIES. No multiple royalties shall be due
or payable to Caliper because the manufacture, use, offer for sale, sale or
import of any royalty bearing product is or shall be covered by more than one
Valid Claim of the Ramsey Patent Family. Only one royalty payment shall be
payable hereunder with respect to a given amount of Net Sales of an Aclara
Licensed Product. In no event shall any royalty bearing product, or any amount
of Net Sales, be subject to more than one royalty payment obligation to Caliper
with respect to rights under the Ramsey Patent Family licensed hereunder.

4.    NO CHALLENGE OBLIGATIONS

      4.1 Caliper shall not participate, and shall obligate all of its
Sublicensees in the applicable sublicense not to participate, in any opposition
or challenge, to the validity or enforceability of any Patent in the `022 Patent
Family in any forum, e.g., in court or alternative dispute resolution, except in
any foreign jurisdiction outside the United States where such promise, agreement
or obligation is prohibited by law (including, without limitation, the European
Community and any member states thereof), and Caliper and its Sublicensees shall
not assist any third party in any such participation; provided, however, that if
Aclara or any third party asserts a Patent within the `022 Patent Family, or
makes an overt threat to assert a Patent in the `022 Patent Family that provides
a sufficient basis for an application for declaratory judgment, applying the
standards applicable in federal courts for declaratory judgments, against
Caliper or its Sublicensees, alleging that a product other than a Caliper
Licensed Product infringes or contributorily infringes such a Patent, then
Caliper or such Sublicensee may challenge such Patent, in whatever forum Aclara
or any third party has asserted such Patent, or, in the event of such an overt
threat, under the ADR Procedures or a forum of competent jurisdiction, as
applicable. [ * ] of this Section 4.1. Any breach by Caliper of this Section 4.1

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                      12.
<PAGE>   13

shall constitute a material breach of this Agreement, except to the limited
extent provided below in this Section 4.1. Any failure by Caliper to obligate
its Sublicensees (or include provisions in the sublicense agreement) as provided
for in this Section 4.1, and any violation of this Section 4.1, or the
corresponding section in the respective sublicense agreement, by a Sublicensee
shall not constitute a breach of this Agreement, or, unless otherwise provided
therein, of the respective sublicense agreement, but rather, as the sole and
exclusive remedy hereunder for any such failure or violation, shall be grounds
for termination of such sublicense rights to such Sublicensee if Caliper or such
Sublicensee, as the case may be, fails to cure such violation within ninety (90)
days following written notice thereof from Aclara to such Sublicensee or to
Caliper, which shall promptly communicate such notice, if any, to such
Sublicensee (and Caliper shall include applicable provisions to that effect in
all of its sublicense agreements with Sublicensees).

      4.2 Except to the extent permitted by Section 4.3, Aclara shall not
participate, and shall obligate all of its Sublicensees in the applicable
sublicense not to participate, in any opposition or challenge to the validity or
enforceability of any Patent in the Ramsey Patent Family in any forum, e.g., in
court or alternative dispute resolution, except in any foreign jurisdiction
outside the United States where such promise, agreement or obligation is
prohibited by law (including, without limitation, the European Community and any
member states thereof), and Aclara and its Sublicensees shall not assist any
third party in any such participation. [ * ] of this Section 4.2. Any breach by
Aclara of this Section 4.2 shall constitute a material breach of this Agreement,
except to the limited extent provided below in this Section 4.2. Any failure by
Aclara to obligate its Sublicensees (or include provisions in the sublicense
agreement) as provided for in this Section 4.2, and any violation of this
Section 4.2, or the corresponding section in the respective sublicense
agreement, by a Sublicensee shall not constitute a breach of this Agreement, or,
unless otherwise provided therein, of the respective sublicense agreement, but
rather, as the sole and exclusive remedy hereunder for any such failure or
violation, shall be grounds for termination of such sublicense rights to such
Sublicensee if Aclara or such Sublicensee, as the case may be, fails to cure
such violation within ninety (90) days following written notice thereof from
Caliper to such Sublicensee or to Aclara, which shall promptly communicate such
notice, if any, to such Sublicensee (and Aclara shall include applicable
provisions to that effect in all of its sublicense agreements with
Sublicensees).

      4.3 If Caliper, [ * ], or any other third party, asserts a Patent in the
Ramsey Patent Family, or makes an overt threat to assert a Patent in the Ramsey
Patent Family that provides a sufficient basis for an application for
declaratory judgment, applying the standards applicable in federal courts for
declaratory judgments, against Aclara, or any of its Sublicensees, alleging that
a product other than an Aclara Licensed Product infringes or contributorily
infringes such a patent, or that an Aclara Licensed Product is being made, used
or sold by Aclara or any of its Sublicensees outside of the Aclara Field of Use,
then Aclara or any such Sublicensee may challenge such Patent in the Ramsey
Patent Family asserted against it in whatever forum Caliper or any third party
has asserted such Patent, or, in the event of such an overt threat, under the
ADR Procedures or a forum of competent jurisdiction, as applicable.

      4.4 Aclara shall not challenge in any forum [ * ] on the grounds that
[ * ]; provided, however, that nothing contained herein shall prohibit Aclara
from challenging [ * ] on such grounds, provided that any such challenge shall
be made pursuant to the ADR Procedure. Except as expressly provided in this
Section 4, Aclara shall not be limited or restricted hereunder

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                      13.
<PAGE>   14

from challenging in any forum [ * ] on grounds other than the aforementioned
grounds, provided that any such challenge shall be made pursuant to the ADR
Procedure.

      4.5 Notwithstanding anything to the contrary in this Section 4:

            4.5.1 Except as provided in Section 4.5.2, each Party shall provide
[ * ] prior written notice to the other Party before knowingly (a) taking any
action pursuant to Section 4.1 or 4.2, as applicable, to terminate any rights to
a sublicense under Section 2.2.1 or 2.2.2, as applicable, of a party which is
[ * ] "Manufacturing Party"), (b) making a claim of infringement of the Patents
licensed out by such acting Party hereunder against such Manufacturing Party, or
(c) threatening or otherwise communicating to such Manufacturing Party its
intent or purported right to take any of the foregoing actions. The non-acting
Party shall have [ * ] from receipt of such notice to notify the acting Party
that it has determined in good faith that such Manufacturing Party is not
engaged in an activity that, absent a sublicense pursuant to Section 2.2.1 or
2.2.2, as applicable, would constitute direct or contributory infringement of
such acting Party's Patents licensed out by it hereunder. If the non-acting
Party fails timely to give such notice, the non-acting Party shall have [ * ] to
secure compliance, if necessary, with Section 4.1 or 4.2, as and if applicable,
with respect to such Manufacturing Party before the acting Party may take any of
the foregoing actions described in (a) through (c) above. If the non-acting
Party provides the foregoing notice of noninfringement to the acting Party, the
acting Party shall further refrain from taking any of the actions described in
(a) through (c) above, until [ * ] after such dispute shall have been resolved
in accordance with the ADR Procedures as a Non-Patent Dispute (as defined in the
Settlement Agreement) by a determination that such Manufacturing Party is in
fact engaged in an activity that, absent a sublicense pursuant to Section 2.2.1
or 2.2.2, as applicable, would constitute direct or contributory infringement of
such acting Party's intellectual property rights.

            4.5.2 Notwithstanding Section 4.5.1, in the event that a
Manufacturing Party participates or assists a third party in any challenge to
the validity or enforceability of any Patent in the `022 Patent Family or the
Ramsey Patent Family, as the case may be, in violation of Section 4.1 or 4.2, as
applicable, or the corresponding sections in the respective sublicense
agreement, if applicable, Aclara or Caliper, as the case may be, may immediately
terminate such Manufacturing Party's sublicense, if any, or take any of the
other actions otherwise restricted in subsections 4.5.1(a), (b) or (c) above.

5.    INTERFERENCE OBLIGATIONS

      5.1 RAMSEY PATENT FAMILY AND `022 PATENT FAMILY.

            5.1.1 Aclara will not seek to provoke or participate in an
Interference between a Patent in the Ramsey Patent Family and a Patent in the
`022 Patent Family. In addition, Aclara shall not assist or enable a third party
to provoke or participate in such an Interference, including by way of
transferring any rights to a Patent in the `022 Patent Family without this
restriction on Interferences.

            5.1.2 Caliper will not seek to provoke or participate in an
Interference between a Patent in the Ramsey Patent Family and a Patent in the
`022 Patent Family. In addition, Caliper

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                      14.
<PAGE>   15

shall not assist or enable a third party to provoke or participate in such an
Interference, including by way of transferring any rights to a Patent in the
Ramsey Patent Family without this restriction on Interferences.

      5.2 [ * ]

            5.2.1 Promptly after the Effective Date, [ * ] in pending Patent
applications [ * ] that are [ * ] of a Patent [ * ] which was issued or
published prior to [ * ].

            5.2.2 [ * ] in any existing or continuing Patent applications that
directly or indirectly claim priority to a Patent [ * ] and that are [ * ] of
any issued or published Patents [ * ].

            5.2.3 Promptly after the Effective Date, [ * ] in currently pending
Patent applications [ * ] that are [ * ] of an issued or published Patent [ * ].

            5.2.4 [ * ] in any existing or continuing Patent applications that
directly or indirectly claim priority to a Patent [ * ] and that are [ * ] of
any issued or published Patents [ * ].

      5.3 RESOLUTION OF INTERFERENCE PROCEEDINGS. In the event that the United
States Patent and Trademark Office ("USPTO") declares an Interference between a
Patent in the Ramsey Patent Family and [ * ], then the Parties shall resolve the
Interference pursuant to the [ * ] applicable thereto.

      5.4 THIRD PARTIES. Neither Caliper, nor Aclara will assist or enable any
third party to take any action that Caliper or Aclara, as applicable, would be
prohibited from taking under Section 5.1 or 5.2, including by transferring
rights in a Patent (including a patent application therein) involved in such
Interference to a third party without the attendant agreement to abide by
Sections 5.1 and 5.2 and the procedure referenced in Section 5.3; [ * ].

      5.5 COMPLIANCE WITH REQUIREMENTS. Notwithstanding anything else to the
contrary herein, nothing in this Agreement or the Settlement Agreement shall
limit or restrict either Party from complying with applicable mandatory
requirements of the rules and regulations of the USPTO or any patent office of
any foreign jurisdiction (such as, for example, Rule 56 and other obligations
not to commit inequitable conduct) and any applicable laws related thereto.

6.    REPRESENTATIONS, WARRANTIES AND COVENANTS

      6.1 REPRESENTATIONS, WARRANTIES AND COVENANTS OF EACH PARTY. Each Party
represents, warrants and covenants to the other that:

            (i) As of the Effective Date, the execution, delivery and
performance of this Agreement are within its corporate power, have been duly and
validly authorized by all necessary corporate action and do not contravene or
constitute a default under any provision of its articles of incorporation or
by-laws;

            (ii) As of the Effective Date, the execution, delivery and
performance of this Agreement by it does not conflict with, contravene or
constitute a default under any provision of applicable law or regulation or any
agreement, license, judgment, injunction, order, decree or

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                      15.
<PAGE>   16

other instrument binding on it, or otherwise relating to the Patents that it
licenses to the other Party hereunder or the inventions described and claimed
therein;

            (iii) As of the Effective Date and at all times during the term of
this Agreement, it has and shall have the right and power to grant on behalf of
itself the rights and licenses expressly granted herein;

            (iv) As of the Effective Date and at all times during the term of
this Agreement, the licenses set forth in Section 2 above will confer upon the
Party receiving the license immunity from suit for infringement of the
respective licensed Patents and all rights, benefits and immunities of a
non-exclusive licensee under such Patents to the full extent provided by Section
2;

            (v) As of the Effective Date, all licenses, consents, authorizations
and approvals, if any, required for its execution, delivery and performance of
this Agreement have been obtained and are in full force and effect and all
conditions thereof have been complied with;

            (vi) Except as mutually agreed otherwise, during the term of this
Agreement, except as expressly contemplated by Section 6.3.3, each Party shall
take all steps necessary to maintain in force all licenses, consents,
authorizations and approvals, if any, required to give effect to all license and
sublicense grants to the other Party set forth in this Agreement to the full
extent such license and sublicense grants are in force as of the Effective Date.
[ * ]

            (vii) As of the Effective Date, no action by or in respect of, or
filing with, any governmental body, agency or official or any other person or
entity is required in connection with its execution, delivery and performance of
this Agreement, except as may be required by the court in connection with
settlement of the proceedings covered by the Settlement Agreement;

            (viii) As of the Effective Date, other than the disputes to be
settled by the Parties in accordance with the Settlement Agreement, there is no
action, suit or proceeding pending against or, to the best of its knowledge,
threatened against or affecting it before any court, arbitrator, mediator or any
other body, agency or official in which there is a reasonable possibility of a
decision which could adversely affect the grant of the rights and licenses
described herein or which could in any manner draw into question the validity,
legality or enforceability of this Agreement or impair in any way its ability to
perform its obligations hereunder; and

            (ix) As of the Effective Date, this Agreement constitutes a valid
and binding agreement, enforceable against it in accordance with its terms
subject to the effects of bankruptcy, insolvency or other laws of general
application affecting the enforcement of creditor rights and judicial principles
affecting the availability of specific performance and general principles of
equity, whether enforceability is considered a proceeding at law or equity.

      6.2 ADDITIONAL REPRESENTATIONS AND WARRANTIES OF ACLARA.

            6.2.1 Aclara hereby represents and warrants that, other than United
States Patent Nos. [ * ] (including all Patents relating to the foregoing
patents), United States Patent

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                      16.
<PAGE>   17

Application No. [ * ] (including all Patents relating to such patent
application), is the only Patent in, to or under which [ * ] that both claims a
priority date before [ * ] and has [ * ].

            6.2.2 Aclara represents and warrants that (i) [ * ].

      6.3 ADDITIONAL REPRESENTATIONS, WARRANTIES AND COVENANTS OF CALIPER.

            6.3.1 Caliper hereby represents and warrants that (i) [ * ]; (ii)
the documents provided to Aclara as of the Effective Date under a separate cover
letter titled "Oak Ridge Agreements" which includes a specific reference to this
Agreement and this Section 6.3 constitute a complete and accurate copy of the
Oak Ridge Agreements (including all amendments, addenda and attachments thereto)
as of the Effective Date, except for the redaction of certain confidential terms
and conditions; and (iii) the terms and conditions so redacted do not in any
manner materially adversely affect the rights granted to Aclara hereunder and
such redactions do not relate directly to sublicensees under such Oak Ridge
Agreements (for example, such redactions do not relate to termination or
survival of sublicense rights or to circumstances under which sublicensees take
rights directly from UT Battele or assume obligations in connection therewith).

            6.3.2 Except as permitted by Section 6.3.3, during the term of this
Agreement, Caliper shall not take or omit the taking of any action pursuant to,
or with respect to, the Oak Ridge Agreements (including with respect to any
Patents in the Ramsey Patent Family licensed thereunder) that modifies, limits
or eliminates the rights granted to Aclara hereunder with respect to the Ramsey
Patent Family to the full extent granted under this Agreement as of the
Effective Date, or otherwise materially adversely affect Aclara as a sublicensee
under such Oak Ridge Agreements (such as, for example, modifying, adding or
deleting provisions related to termination or survival of sublicense rights or
related to circumstances under which sublicensees take rights directly from UT
Battele or assume obligations in connection therewith in a manner that is
materially adverse to Aclara as a sublicensee), without the prior written
consent of Aclara.

            6.3.3 Notwithstanding Section 6.3.2 above, during the term of this
Agreement, Caliper may elect to [ * ] Patent(s) in the Ramsey Patent Family at
any time and for any reason; provided, however, that, if rights granted to
Caliper under the Oak Ridge Agreements with respect to such Patent(s) [ * ]:

                  (i) Caliper shall provide Aclara with [ * ] prior written
notice of its election to [ * ] such Patent(s); and

                  (ii) If, within [ * ] of receipt of such notice, Aclara
notifies Caliper that it desires to [ * ], Caliper shall, within [ * ] after
receiving the preceding notice from Aclara that Aclara desires to [ * ], notify
Aclara that Caliper shall, and Caliper shall, either: (a) continue to [ * ] such
Patent(s), or (b) [ * ].

      With respect to option (ii)(b) above of this Section 6.3.3, each Party
shall provide the other with any reasonable assistance required to [ * ].

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                      17.
<PAGE>   18

      6.4 SURVIVAL. The representations, warranties and covenants contained in
this Section 6 shall survive the execution, delivery and performance of this
Agreement by the Parties hereto.

      6.5 DISCLAIMER. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, EACH
PARTY HEREBY DISCLAIMS ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS OR
IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY,
NONINFRINGEMENT, OR FITNESS FOR A PARTICULAR PURPOSE.

7.    INDEMNIFICATION

      Each Party (the "Indemnifying Party") shall defend, at its expense, the
other Party (the "Indemnified Party"), its directors, officers, employees, and
agents, against all third party claims, demands, damages, liabilities, losses,
costs and expenses, including without limitation attorney's fees (collectively,
"Claims") resulting from or arising out of a [ * ] in any judgment, award or
settlement, or reasonably required [ * ] and [ * ], attributable to such Claim.
The Indemnifying Party shall not be obligated under this Section 7 unless (and
only to the extent) the Indemnified Party (a) provides to the Indemnifying Party
prompt notice of the commencement of the Claim for which indemnification is
sought, (b) provides cooperation to the Indemnifying Party, and (c) allows the
Indemnifying Party to control the defense, provided that the Indemnifying Party
may not settle a claim in a manner that materially adversely affects the
Indemnified Party without approval of the Indemnified Party, which approval
shall not be unreasonably withheld or delayed.

8.    LIMITATION OF LIABILITY

      SUBJECT TO SECTION 7, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE
OTHER FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY
KIND, INCLUDING, BUT NOT LIMITED TO, LOSS OF BUSINESS, LOSS OF USE, LOSS OF
PROFITS, OR INTERRUPTION OF BUSINESS, ARISING FROM OR RELATING TO THIS AGREEMENT
OR THE SUBJECT MATTER HEREOF, INCLUDING THE BREACH HEREOF, EVEN IF SUCH PARTY
HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, HOWEVER CAUSED.

9.    TERM AND TERMINATION; EFFECT OF BREACH

      9.1 TERM. This Agreement shall commence on the Effective Date and, unless
sooner terminated solely in accordance with the provisions of this Section 9,
[ * ] The licenses granted to Caliper under Section 2.1 shall terminate upon the
[ * ]. The licenses granted to Aclara under Section 2.2 shall terminate upon the
[ * ].

      9.2 TERMINATION OF LICENSES.

            9.2.1 TERMINATION BY ACLARA. Aclara may terminate the license grant
to Caliper under Section 2.1 if, the Arbitration Panel (as defined in the
Settlement Agreement) or, in the event of an appeal, the Appeal Panel (as
defined in the Settlement Agreement), determines in accordance with the ADR
Procedure that Caliper has materially breached this Agreement by

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                      18.
<PAGE>   19

materially breaching any of [ * ] of this Agreement and failed to cure such
breach (including, without limitation, any breach of [ * ]) within [ * ] after
Aclara has provided Caliper with written notice of such breach. In the event
that Aclara [ * ].

            9.2.2 TERMINATION BY CALIPER. Caliper may terminate the license
grant to Aclara under Section 2.2 if the Arbitration Panel (as defined in the
Settlement Agreement) or, in the event of an appeal, the Appeal Panel (as
defined in the Settlement Agreement), determines in accordance with the ADR
Procedure that Aclara has materially breached this Agreement by materially
breaching any of [ * ] of this Agreement and failed to cure such breach
(including, without limitation, any breach of [ * ]) within [ * ] after Caliper
has provided Aclara with written notice of such breach.

            9.2.3 EFFECT OF TERMINATION OF LICENSE. For the removal of doubt, in
the event the licenses granted to Aclara or Caliper, as the case may be, under
Section 2 hereunder terminate for any reason, no Chip, instrument, add-on
module, software, hardware, component or other product shall be deemed an Aclara
Licensed Product or a Caliper Licensed Product as applicable (or a corresponding
Aclara Licensed Instrument, Aclara Licensed LabCard, Caliper Licensed Instrument
or Caliper Licensed LabChip as applicable), for purposes of this Agreement.

      9.3 TERMINATION OF AGREEMENT BY MUTUAL AGREEMENT. The Parties may
terminate this Agreement by mutual written agreement.

      9.4 EFFECT OF BREACH OF PAYMENT PROVISIONS BY ACLARA. If Aclara fails to
pay royalties due and owing to Caliper (which itself shall not constitute a
breach of this Agreement unless such failure is not cured within [ * ] after
Caliper has provided Aclara with written notice of non-payment), then Caliper
may not terminate the license grant set forth in Section 2.2 but, if such
failure to pay is not cured within [ * ] after Caliper has provided Aclara with
written notice of non-payment and an ADR Procedure is necessary to collect such
payment, [ * ] of the unpaid royalties as determined by the Arbitration Panel
(as defined in the Settlement Agreement) or, in the event of an appeal, the
Appeal Panel (as defined in the Settlement Agreement), in accordance with the
ADR Procedure ([ * ]).

      9.5 EFFECT OF OTHER BREACHES OF THIS AGREEMENT. The Parties agree that the
material breach of this Agreement by a Party may cause severe and irreparable
damage to the other Party that may not be adequately compensated by monetary
damages. In the event of such a material breach, the breaching Party agrees that
the non-breaching Party may seek to obtain from the Arbitration Panel injunctive
relief, or relief by specific performance, as applicable, as well as any other
relief permitted by applicable law.

      9.6 EFFECT OF BREACH OF OTHER AGREEMENTS. This Agreement shall survive
termination of the Settlement Agreement and the Common Stock Issuance Agreement.
No breach of the Settlement Agreement or the Common Stock Issuance Agreement
shall, by itself, constitute a breach of this Agreement, unless such breach is
itself a breach of this Agreement.

      9.7 SURVIVAL OF OBLIGATIONS. The following provisions shall survive
termination or expiration of this Agreement: [ * ].

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                      19.
<PAGE>   20

10.   ALTERNATIVE DISPUTE RESOLUTION

      All disputes, controversies, or claims of any nature between or among the
Parties under this Agreement shall be resolved in accordance with the applicable
ADR Procedure, which is hereby incorporated by reference.

11.   GENERAL PROVISIONS

      11.1 NOTICES. Any notice, request, demand, or other communication required
or permitted hereunder shall be in writing, shall reference this Agreement and
shall be deemed to be properly given: (a) when delivered personally; (b) when
sent by facsimile, with written confirmation of receipt; (c) five (5) business
days after having been sent by registered or certified mail, return receipt
requested, postage prepaid; or (d) two (2) business days after deposit with a
private industry express courier, with written confirmation of receipt. All
notices shall be sent to the address set forth below (or to such other address
as may be designated by a Party by giving written notice to the other Party
pursuant to this Section 11.1):

<TABLE>
<CAPTION>
        IF TO ACLARA:                             IF TO CALIPER:
        -------------                             --------------
<S>                                    <C>
Aclara BioSciences, Inc.               All royalty payments and reports provided
1288 Pear Ave                          pursuant to Section 3.5.4:
Mountain View, CA 94043
Attn: President                        Caliper Technologies Corp.
                                       605 Fairchild Drive
with a copy to:                        Mountain View, CA 94043-2234
                                       Attn: Chief Accounting Officers
Aclara BioSciences, Inc.
1288 Pear Ave                          with a copy to:
Mountain View, CA 94043
Attn: V.P., Legal Affairs              Caliper Technologies Corp.
                                       605 Fairchild Drive
and with a copy to:                    Mountain View, CA 94043-2234
                                       Attn: Sr. Director of Legal Affairs
David Doyle, Esq.
Morrison & Foerster                    All other notices, requests, demands, or
3811 Valley Center Drive, Suite 500    other communications:
San Diego, CA 92130

                                       Caliper Technologies Corp.
                                       605 Fairchild Drive
                                       Mountain View, CA 94043-2234
                                       Attn: Sr. Director of Legal Affairs

                                       with a copy to:

                                       Sonya Winner, Esq.
                                       Covington & Burling
                                       601 California Street, 19th Floor
</TABLE>

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                      20.
<PAGE>   21

<TABLE>
        IF TO ACLARA:                             IF TO CALIPER:
        -------------                             --------------
<S>                                    <C>
                                       San Francisco, CA 94108
</TABLE>

      11.2 ASSIGNMENT. This Agreement, and its accompanying rights and
obligations, may not be sold, transferred, assigned, delegated, pledged, or
otherwise disposed of, in whole or part, whether voluntarily, by operation of
law or otherwise, by any Party without the prior written consent of the other
Party, except that either Party may assign this Agreement, without the other
Party's consent, in connection with a Change in Control of the assigning Party,
or of such Party's microfluidic systems line of business, or a transfer of such
Party's microfluidic systems line of business to an entity that such Party
Controls (subject to Sections 2.1.4 and 2.2.4, if applicable), including,
without limitation any merger of such assigning Party into a successor entity
which such Party Controls. Subject to the preceding sentence, the rights and
liabilities of the Parties hereto will bind, and inure to the benefit of, their
respective and permitted assignees and successors and is binding on the Parties
and their successors and permitted assigns. Any attempted assignment other than
in accordance with this Section 11.2 shall be null and void. This Agreement
shall be binding upon all successors in interest to all or some of the `022
Patent Family and the Ramsey Patent Family, as the case may be.

      11.3 GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of California, United States, without
reference to or application of its conflicts of law provisions.

      11.4 CONSTRUCTION. This Agreement has been negotiated by the Parties and
their respective counsel, and counsel for the Parties have participated in the
drafting of this Agreement. This Agreement will be interpreted fairly in
accordance with its terms and without any construction in favor of or against
either Party.

      11.5 WAIVER. The waiver by either Party of a breach of or a default under
any provision of this Agreement, shall not be effective unless in writing and
shall not be construed as a waiver of any subsequent breach of or default under
the same or any other provision of this Agreement, nor shall any delay or
omission on the part of either Party to exercise or avail itself of any right or
remedy that it has or may have hereunder operate as a waiver of any right or
remedy.

      11.6 SEVERABILITY. If the application of any provision of this Agreement
or any promise hereunder to any particular facts or circumstances shall be held
to be invalid, unenforceable, prohibited or illegal by an arbitration panel, a
court or any other governmental or supranational authority (including, without
limitation, the European Commission) of competent jurisdiction, then the
validity and enforceability of such provision or promise as applied to any other
particular facts or circumstances and the validity of other provisions of this
Agreement or promises hereunder shall not in any way be affected or impaired
thereby.

      11.7 RELATIONSHIP OF THE PARTIES. Nothing contained in this Agreement
shall be deemed or construed as creating a joint venture, partnership, agency,
employment or fiduciary relationship between the Parties. Neither Party nor its
agents have any authority of any kind to bind the other Party in any respect
whatsoever, and the relationship of the Parties is, and at all times shall
continue to be, that of independent contractors.

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                      21.
<PAGE>   22

      11.8 CAPTIONS AND SECTION HEADINGS. The captions and section and paragraph
headings used in this Agreement are inserted for convenience only and shall not
affect the meaning or interpretation of this Agreement.

      11.9 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, with the same effect as if the Parties had signed the same
document. Each counterpart so executed shall be deemed to be an original, and
all such counterparts shall be construed together and shall constitute one
Agreement.

      11.10 FORCE MAJEURE. Neither Party shall be deemed to be in default of, or
to have breached, any provision of this Agreement as the result of delay or
failure in performance resulting directly or indirectly from circumstances
beyond the Party's reasonable control, including without limitation, acts of
God, acts of civil or military authority, civil disturbance, war, strikes or
other labor disputes, fires, transportation contingencies, laws, regulations,
acts or orders of any government agency or official thereof, or other
catastrophes. The non-performing Party shall notify, to the extent reasonably
practicable, the other Party of such force majeure within three (3) days after
such occurrence by giving notice to the other party stating the nature of the
event, its anticipated duration, and any action being taken to avoid or minimize
its effect. The suspension of performance shall be of no greater scope and no
longer duration than is necessary and the non-performing Party shall use
commercially reasonable efforts to remedy its inability to perform.

      11.11 FURTHER ASSURANCES. Each Party agrees to take or cause to be taken
such further actions, and to execute, deliver and file or cause to be executed,
delivered and filed such further documents and instruments, and to obtain such
consents, as may be reasonably required or requested in order to effectuate
fully the purposes, terms and conditions of this Agreement.

      11.12 ENTIRE AGREEMENT. This Agreement together with the exhibits hereto,
and to the extent provided herein, the Settlement Agreement and the Common Stock
Issuance Agreement constitute the entire agreement and understanding between the
Parties concerning the subject matter hereof and supersede all prior or
contemporaneous representations, discussions, proposals, negotiations,
conditions, agreements and communications, whether oral or written, between the
Parties relating to the subject matter of this Agreement and all past courses of
dealing or industry custom. No amendment or modification of any provision of
this Agreement shall be effective unless in writing and signed by a duly
authorized signatory of the Party against which enforcement of the amendment or
modification is sought.

      11.13 SECTION 365(n) OF THE BANKRUPTCY CODE. All rights and licenses
granted under or pursuant to any section of this Agreement are and shall
otherwise be deemed to be for purposes of Section 365(n) of the Bankruptcy Code
licenses of rights of "intellectual property" as defined in Section 101(35A) of
the Bankruptcy Code. The parties shall retain and may fully exercise all of
their respective rights and elections under the Bankruptcy Code.

      IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed
by duly authorized representatives of the Parties as of the Effective Date.

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                      22.
<PAGE>   23

ACLARA BIOSCIENCES, INC.                    CALIPER TECHNOLOGIES CORP.

ACLARA BIOSCIENCES, INC.                    CALIPER TECHNOLOGIES CORP.

By: /s/ Joseph M. Limber                    By: /s/ James L. Knighton
    --------------------------------            --------------------------------
               Signature                                  Signature

Name: Joseph M. Limber                      Name: James L. Knighton
      ------------------------------              ------------------------------
              Print or Type                              Print or Type

Title: President, CEO                       Title: CFO
       -----------------------------               -----------------------------

Date:  March 12, 2001                       Date:  March 12, 2001
      ------------------------------              ------------------------------

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

                                      23.
<PAGE>   24

                                    EXHIBIT A

                   LICENSED INSTRUMENTS, LABCARDS AND LABCHIPS

                                      [ * ]

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

<PAGE>   25

                                    EXHIBIT B

                                      [ * ]

                                      [ * ]

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

<PAGE>   26

                                    EXHIBIT C

                                      [ * ]

               [ * ]                                      [ * ]

------------------------------------       -------------------------------------
  [ * ]                                      [ * ]

  [ * ]                                      [ * ]

  [ * ]                                      [ * ]

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

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