Document:

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                                                                  Exhibit 10.18

                                CONTRACT OF SALE

                                 by and between

                            BEST PROPERTY FUND, L.P.,
                                    as Seller

                                       and

                      PRAECIS PHARMACEUTICALS INCORPORATED,
                                  as Purchaser

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

                                    Property:

                                830 Winter Street

                             Waltham, Massachusetts

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                                TABLE OF CONTENTS

                                                                        PAGE

Property..................................................................1

Purchase Price............................................................1

Condition of Property; Title..............................................3

Time and Place of Closing.................................................4

Conditions to Closing.....................................................4

Seller's Representations and Agreements..................................12

Purchaser's Representation and Agreements................................20

Apportionments...........................................................22

Closing Matters..........................................................24

Title Examination........................................................24

Risk of Loss.............................................................26

Brokerage................................................................28

Remedies.................................................................28

Notices .................................................................29

Foreign Investment In Real Property Tax Act..............................31

Choice of Law............................................................31

Exhibit A - LEGAL DESCRIPTION OF LAND....................................39

Exhibit B - SELLER'S WORK................................................40

EXHIBIT B - PUNCH LIST ITEMS.............................................47

Exhibit C - PERMITTED TITLE EXCEPTIONS...................................48

                                        i

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Exhibit D - CONTRACTS AND AGREEMENTS.....................................49

Exhibit E - LIST OF PERMITS..............................................50

                                       ii

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                                CONTRACT OF SALE

         AGREEMENT, made on this 14th day of January, 2000, by and between BEST
PROPERTY FUND, L.P., a Delaware limited partnership, ("SELLER") and PRAECIS
PHARMACEUTICALS INCORPORATED, a Delaware corporation, ("PURCHASER").

                              W I T N E S S E T H:

         In consideration of the mutual covenants and provisions herein
contained, including without limitation Purchaser's payment to Seller of TWO
HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($250,000.00) in the event Purchaser
terminates this Agreement pursuant to SECTION 5(c), and other good and valuable
consideration, the receipt and sufficiency of which hereby are acknowledged, the
parties hereby covenant and agree as follows:

         1. PROPERTY. Seller hereby agrees to sell and Purchaser agrees to
purchase, upon the terms and conditions set forth in this Agreement, the
property ("PROPERTY") consisting of (a) those certain plots, pieces or parcels
of land located in Waltham, Massachusetts, having a street address at 830 Winter
Street, and all more particularly described in EXHIBIT A hereto ("LAND"), (b)
all buildings and all other structures, facilities or improvements presently
located or hereafter located in or on the Land ("IMPROVEMENTS"), (c) all
fixtures, machinery, systems, equipment, warranties, guaranties, indemnities,
claims against third parties relating to the Land or Improvements, licenses,
permits, approvals, documents, plans, specifications, drawings, items of
personal property owned by Seller attached or appurtenant to, located on and
used in connection with the ownership, use, operation or maintenance of the Land
or the Improvements (collectively, the "PERSONAL PROPERTY"), and (d) all strips,
gores, easements, privileges, licenses, rights and appurtenances relating to any
of the foregoing.

         2. PURCHASE PRICE. (a) The purchase price for the Property is FORTY-ONE
MILLION FIVE HUNDRED THOUSAND 00/100 DOLLARS ($41,500,000.00) ("PURCHASE
PRICE").

         (b)      The Purchase Price shall be payable as follows:

                  (i) Upon the execution of this Agreement, ONE MILLION TWO
         HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($1,250,000.00)

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         ("INITIAL DOWNPAYMENT"), by Purchaser's check, evidencing good funds,
         subject to collection, payable to the order of "Brown, Rudnick, Freed &
         Gesmer, P.C., as escrow agent" ("ESCROW AGENT") or by wire transfer of
         immediately available federal funds to an account or accounts to be
         designated in writing by Escrow Agent.

                  (ii) Unless on or before April 6, 2000, Purchaser has
         delivered to Seller a copy of a Financing Commitment (hereinafter
         defined), then on April 7, 2000, Purchaser shall deliver to Escrow
         Agent SEVEN HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($750,000.00)
         ("ADDITIONAL DOWNPAYMENT") by Purchaser's check, evidencing good funds,
         subject to collection, payable to the order of Escrow Agent, or by wire
         transfer of immediately available federal funds to an account or
         accounts to be designated in writing by Escrow Agent following the
         written request of Purchaser. Notwithstanding the foregoing, Seller and
         Purchaser agree and acknowledge that Purchaser's purchase of the
         Property is not subject to, or conditioned upon, Purchaser obtaining
         financing for such purchase, including, without limitation, Purchaser
         obtaining a Financing Commitment or the ultimate funding of a Financing
         Commitment. Seller and Purchaser further agree and acknowledge that the
         provisions of this Agreement related to the Financing Commitment are
         made a part of this Agreement so as to enable Seller to evaluate
         Purchaser's ability to consummate the purchase of the Property.

                           For purposes of this Agreement, the term "FINANCING
         COMMITMENT" shall mean a bona fide commitment from an institutional
         third party lender, which is unaffiliated with Purchaser, to finance
         not less than seventy percent (70.0%) of the Purchase Price, on
         prevailing commercial terms, which, together with replacements or
         extensions thereof, shall remain in effect until the Closing
         (hereinafter defined).

                  (iii) If Purchaser terminates this Agreement pursuant to
         SECTION 5(c), then $250,000.00 of the Initial Downpayment shall be paid
         to Seller and the remainder of the Initial Downpayment, together with
         all accrued interest thereon, shall be paid to Purchaser. If Purchaser
         does not terminate this Agreement pursuant to SECTION 5(c) and the
         Closing (hereinafter defined) occurs, then the Initial Downpayment,
         together with the Additional Downpayment, if applicable, and all
         accrued interest thereon (the "INTEREST"), shall be paid by Escrow
         Agent to Seller. The Initial Downpayment, the Additional Downpayment,
         if applicable, and the Interest shall be credited against the Purchase
         Price. If Purchaser does not terminate this Agreement pursuant to
         SECTION 5(c) but the Closing does not occur, then the Initial

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         Downpayment, together with the Additional Downpayment, if applicable,
         and the Interest shall be paid by Escrow Agent in accordance with the
         terms of SECTION 13 of this Agreement. Escrow Agent shall have no
         liability in connection with the Initial Downpayment, the Additional
         Downpayment or the Interest, except for its own gross negligence or
         willful misconduct. The Initial Downpayment and the Additional
         Downpayment, if applicable, are referred to herein collectively as the
         "DOWNPAYMENT." The Downpayment shall be invested by Escrow Agent in a
         money market fund.

                  (iv) At the Closing, an amount, subject to adjustment pursuant
         to the terms of this Agreement, equal to the difference between the
         Purchase Price and the total of the amount of the Downpayment received
         by Escrow Agent plus the Interest shall be paid by good, unendorsed
         cashier's or official bank check payable to the order of Seller (or
         Seller's designee or designees) or by wire transfer of immediately
         available federal funds to an account or accounts to be designated in
         writing by Seller at or prior to the Closing.

         (c) Escrow and title insurance costs, fees and expenses shall be paid
in accordance with SECTION 9 (a) hereof.

         3. CONDITION OF PROPERTY; TITLE. (a) Subject to the terms of this
Agreement, Purchaser agrees to purchase the Property on the Closing Date (as
hereinafter defined) in its then "AS IS" condition; Seller acknowledging that
Seller is required to achieve Final Completion (as defined in EXHIBIT B) of the
Seller's Work (hereinafter defined) in accordance with the terms of EXHIBIT B.
Purchaser further agrees that from and after the Closing Seller shall not be
liable for any latent or patent defects in the Property. Except as set forth in
this Agreement, Seller has not made any repre sentations as to the physical
condition or any other matter or thing affecting or related to the Property,
and, except as set forth in EXHIBIT B hereto, Seller shall have no obligation to
improve the Property.

         (b) Purchaser shall accept title to the Property subject to the matters
set forth on EXHIBIT C hereto and any matter arising out of any action taken by
Purchaser or its agents (collectively, the "PERMITTED TITLE EXCEPTIONS"). If
Seller shall so request, Purchaser will allow Seller to pay from the balance of
the Purchase Price as much thereof as may be necessary to satisfy any lien(s) or
encumbrance(s) which Seller is obligated or elects to cure hereunder and will
provide Seller at the Closing with separate certified and/or official bank
checks or effect such additional wire transfers, payable as directed in writing
by Seller, for such purposes.

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         (c) The parties acknowledge that Seller will be constructing certain
improvements ("SELLER'S WORK") at the Property in accordance with EXHIBIT B.
Seller shall use commercially diligent efforts to complete the construction of
the Seller's Work and deliver the Property on or before September 1, 2000
("TARGET COMPLETION DATE"). If, despite such commercially diligent efforts,
Seller has been unable to complete such Seller's Work and deliver the Property
on or before the Target Completion Date, Purchaser's remedies for such failure
shall be as set forth in EXHIBIT B.

         (d) If prior to the Closing, Purchaser delivers to Seller an
environmental report from a Licensed Site Professional concluding that there is
a reasonable likelihood that the environmental condition of the Property is
adversely different than it was on the date of this Agreement, then Seller
either shall remediate such condition, and deliver reasonable evidence thereof
to Purchaser, or deliver to Purchaser reasonably acceptable evidence that the
environmental condition of Property is not adversely different than it was on
the date of this Agreement.

         4. TIME AND PLACE OF CLOSING. (a) The closing of the transactions
contemplated hereby ("CLOSING") shall take place at 10:00 a.m. on the fifteenth
(15th) Business Day (hereinafter defined) after Seller notifies Purchaser
("CLOSING NOTICE") of the Final Completion of Seller's Work or on such other
date as may be permitted by the terms of this Agreement ("CLOSING DATE"). If the
Final Completion of the Seller's Work does not occur by December 31, 2000 (as
such date shall be extended by the number of days that Final Completion of the
Seller's Work was delayed because of Purchaser Initiated Change Orders), then
Purchaser may terminate this Agreement by written notice to Seller, given no
later than five (5) Business Days after such date, whereupon the Downpayment,
plus the Interest, shall be paid to Purchaser. As used herein, the term
"BUSINESS DAY" shall mean any day other than a Saturday, Sunday or national
holiday. The Closing shall take place at the offices of Brown, Rudnick, Freed &
Gesmer, One Financial Center, 18th Floor, Boston, Massachusetts 02111, or at
such time and place to which Seller and Purchaser may mutually agree.

         5. CONDITIONS TO CLOSING. (a) PURCHASER'S CONDITIONS. Purchaser's
obligation to pay the Purchase Price, to accept title to the Property and
otherwise to consummate the transactions contemplated hereby shall be subject
to the satisfaction of the following conditions precedent on and as of the
Closing Date:

                  (i) Seller shall deliver to Purchaser on or before the Closing
Date the following documents ("SELLER'S CLOSING DOCUMENTS"):

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                           (1)      a quitclaim deed ("DEED") conveying Seller's
                                    fee simple interest in the Land and the
                                    Improvements to Purchaser (which fee simple
                                    interest shall be the same fee simple
                                    interest Seller had in the Land and the
                                    Improvements on January 3, 2000, subject to
                                    the Permitted Title Exceptions) in proper
                                    statutory form for recording, duly executed
                                    and acknowledged by Seller;

                           (2)      a bill of sale, conveying Seller's right,
                                    title and interest in the Personal Property
                                    to Purchaser, free of any liens and
                                    encumbrances, in form and substance
                                    reasonably acceptable to Seller and
                                    Purchaser ("BILL OF SALE"), duly executed
                                    and acknowledged by Seller;

                           (3)      an assignment by Seller and assumption by
                                    Purchaser, in form and substance reasonably
                                    acceptable to Seller and Purchaser ("GENERAL
                                    ASSIGNMENT"), duly executed and acknowledged
                                    by Seller and by Purchaser, of all of
                                    Seller's (or Bren Schreiber Properties,
                                    Inc.'s or Seller's agent's) obligations,
                                    right, title and interest in, to and under:

                                    (A)      the contracts and agreements and
                                             the amendments, modifications and
                                             supplements thereto set forth on
                                             EXHIBIT D attached hereto
                                             (collectively, "CONTRACTS");

                                    (B)      the Permits (as defined in SECTION
                                             5(a)(i)(5) hereof);

                                    (C)      (x) all guaranties and warranties
                                             arising under the Construction
                                             Contract (as defined in EXHIBIT B)
                                             as it exists on the date hereof;
                                             (y) all guaranties and warranties
                                             arising under the Design Contract
                                             (as defined in EXHIBIT B) as it
                                             exists on the date hereof and (z)
                                             all other guaranties and
                                             warranties then in effect with
                                             respect to the Improvements and the
                                             Personal Property (collectively,
                                             the "GUARANTIES"); and

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                                    (D)      All existing claims and recourse of
                                             any nature whatsoever benefiting
                                             Seller and arising under the
                                             Contracts and/or the Guaranties.

                                    Notwithstanding the foregoing, with respect
                                    to that certain Mutual Covenants agreement
                                    dated March 25, 1999 between Seller and
                                    Polaroid Corporation, filed with the South
                                    Registry District of Middlesex County as
                                    Document No. 1101667 ("MUTUAL COVENANTS"),
                                    which is one of the Contracts, the General
                                    Assignment shall provide: (v) that at the
                                    Closing, Purchaser shall deliver to Polaroid
                                    bonds with respect to the water pipeline and
                                    traffic signalization matters described in
                                    the Mutual Covenants (which bonds shall be
                                    in the amount equal to the remaining
                                    obligations of Seller with respect to such
                                    matters, which shall not exceed $150,000 as
                                    to each such matter) in replacement of the
                                    bonds which were delivered under the Mutual
                                    Covenants by Seller (or otherwise make
                                    arrangements, reasonably acceptable to
                                    Seller, for the release of such bonds), (w)
                                    that Seller and Purchaser shall cooperate to
                                    obtain the release by Polaroid Corporation
                                    of the bonds which were so delivered by
                                    Seller, (x) that Purchaser shall assume all
                                    obligations of Seller set forth in the
                                    Mutual Covenants with respect to traffic
                                    signalization under the Mutual Covenants,
                                    (y) that if Seller has expended any funds
                                    which were credited or are creditable
                                    against Seller's obligations with respect to
                                    traffic signalization under the Mutual
                                    Covenants, then at the Closing, Purchaser
                                    shall reimburse Seller for the amounts so
                                    expended by Seller, and (z) that if as of
                                    the Closing, Seller has not satisfied its
                                    obligations under the Mutual Covenants with
                                    respect to the water pipeline, as evidenced
                                    by an acknowledgement of satisfaction
                                    executed by Polaroid Corporation, or its
                                    successors), Purchaser will assume such
                                    obligations but Seller will pay to
                                    Purchaser, at the Closing, an amount equal
                                    to the difference between $150,000.00 and
                                    the amount of any funds expended by Seller
                                    which were credited or are creditable
                                    against Seller's obligations with respect to
                                    said water pipeline;

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                           (4)      to the extent the same are in Seller's
                                    possession, original, fully executed copies
                                    of the Contracts, and originals, certified
                                    by Seller, as correct and complete, of the
                                    Construction Contract and the Design
                                    Contract;

                           (5)      Original mechanical, electrical and plumbing
                                    plans and specifications (together with
                                    as-built plans therefor prepared by the
                                    subcontractors performing such work),
                                    surveys, fire underwriter certificates for
                                    the Property, and other certificates,
                                    licenses and permits for the Property
                                    (including all amendments, modifications,
                                    supplements and extensions thereof)
                                    ("PERMITS"), except to the extent the same
                                    are required to be, and are, affixed at the
                                    Property;

                           (6)      Originals of all Guaranties (other than
                                    those guaranties and warranties set forth in
                                    the Construction Contract or the Design
                                    Contract which are otherwise assigned to
                                    Purchaser) and a full copy of the Record
                                    Drawings (as defined in EXHIBIT B) certified
                                    by Architect (as defined in EXHIBIT B) to be
                                    correct and complete;

                           (7)      a certificate of Seller dated as of the
                                    Closing Date, to the effect that (A) this
                                    Agreement and Seller's Closing Documents
                                    executed by Seller have been duly
                                    authorized, executed and delivered by Seller
                                    pursuant to all necessary resolutions or
                                    consents of the general partner of Seller
                                    and that said resolutions or consents remain
                                    in full force and effect, (B) appearing on
                                    said certificate is the signature of persons
                                    authorized to act on behalf of Seller's
                                    general partner who have executed this
                                    Agreement and who will execute all
                                    agreements to be delivered by Seller
                                    hereunder; (C) the executing persons acting
                                    on behalf of Seller's general partner are
                                    fully authorized to act on behalf of
                                    Seller's general partner and that such
                                    general partner is fully authorized to act
                                    on behalf of Seller and (D) Seller's
                                    representations set forth in this Agreement
                                    remain true as of the Closing, or if not
                                    true, the specific manner in which they are
                                    not true;

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                           (8)      a letter by Seller to the other parties to
                                    the Contracts, the Construction Contract and
                                    the Design Contract informing them of the
                                    change in ownership of the Property;

                           (9)      an affidavit, duly executed and acknowledged
                                    by Seller, in the standard form required by
                                    the Title Company (as hereinafter defined),
                                    relative to mechanics liens and parties in
                                    possession;

                           (10)     Certificates for the benefit of Seller and
                                    Purchaser from the Architect and the
                                    contractor under the Construction Contract
                                    stating that all sums due under said
                                    agreements have been paid in full by Seller
                                    and that Seller has completely performed its
                                    obligations thereunder; and

                           (11)     Such certificates of legal existence and
                                    corporate good standing and affidavits of
                                    Seller, Seller's general partner and
                                    Schreiber Developments, LLC as the Title
                                    Company reasonably may request; provided
                                    that such certificates do not materially
                                    increase Seller's liability under this
                                    Agreement.

                  (ii) Subject to SECTION 6(e) hereof, the representations and
         warranties of Seller contained in this Agreement shall be true and
         complete in all material respects at and as of the Closing Date as if
         such representations and warranties were made at and as of the Closing
         Date and Seller shall have performed and complied with, in all material
         respects, all covenants, agreements, conditions, terms and provisions
         of this Agreement required to be performed or complied with by Seller
         prior to or at the Closing, in each case subject only to exceptions
         permitted by this Agreement.

                  (iii) Seller shall have Finally Completed Seller's Work.

                  (iv) The environmental condition of the Property shall not be
         adversely different than it is in on the date of this Agreement,
         subject to Seller's right to remediate pursuant to SECTION 3(d).

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         (b) SELLER'S CONDITIONS. Seller's obligation to deliver title to the
Property and otherwise to consummate the transactions contemplated hereby shall
be subject to compliance by Purchaser with the following conditions precedent on
and as of the Closing Date:

                  (i) Purchaser shall deliver to Seller on the Closing Date the
         balance of the Purchase Price due pursuant to SECTION 2(b) hereof and
         such other amounts as are due Seller hereunder, subject to adjustment
         of such amount pursuant to SECTION 8 hereof;

                  (ii) Purchaser shall deliver to Seller on the Closing Date the
         following, each of which shall be in form and substance reasonably
         satisfactory to Seller ("PURCHASER'S CLOSING DOCUMENTS"):

                           (1)      a certificate of Purchaser, dated the
                                    Closing Date, to the effect that (A) this
                                    Agreement and Purchaser's Closing Documents
                                    executed by Purchaser have been duly
                                    authorized, executed and delivered by
                                    Purchaser pursuant to all necessary
                                    resolutions or consents of the Board of
                                    Directors of Purchaser, and that said
                                    resolutions and consents remain in full
                                    force and effect, (B) appearing on said
                                    certificate is the true signature of the
                                    officer or officers of Purchaser who have
                                    executed this Agreement and who will execute
                                    all agreements and instruments to be
                                    delivered by Purchaser hereunder, (C) the
                                    executing officer or officers of Purchaser
                                    are fully authorized to act on behalf of
                                    Purchaser and (D) Purchaser's
                                    representations set forth in this Agreement
                                    remain true as of the Closing, or if not
                                    true, the specific manner in which they are
                                    not true;

                           (2)      duly executed and acknowledged counterparts
                                    of the General Assignment described in
                                    SECTION 5(a)(i)(3) hereof; and

                           (3)      sufficient funds to the Title Company to
                                    satisfy all amounts payable by Purchaser
                                    under SECTION 9(a)(i) hereof;

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                  (iii) Purchaser shall, at the reasonable request of Seller,
         from time to time after April 7, 2000, furnish to Seller updated
         financial information regarding Purchaser.

                  (iv) The representations and warranties of Purchaser contained
         in this Agreement shall be true and complete in all material respects
         at and as of the Closing Date as if such representations and warranties
         were made at and as of the Closing Date and Purchaser shall have
         performed and complied with, in all material respects, all covenants,
         agreements, conditions, terms and provisions of this Agreement required
         to be performed or complied with by Purchaser prior to or at the
         Closing, in each case subject only to exceptions permitted by this
         Agreement.

         (c) DUE DILIGENCE PERIOD. (i) Purchaser has commenced its due diligence
review ("DUE DILIGENCE REVIEW"), which shall include, without limitation, the
matters listed in (1), (2) and (3) of this SECTION 5(c)(i), on the date of this
Agreement. Purchaser shall complete the Due Diligence Review no later than
February 7, 2000 (the "DUE DILIGENCE PERIOD"). During the Due Diligence Period,
Seller shall:

                  (1)      cooperate in providing Purchaser and its
                           representatives, agents and designees with access to
                           the Property at reasonable times, upon reasonable
                           prior notice and, to conduct, at Purchaser's sole
                           cost and expense, such physical, economic,
                           environmental, pest control and other investigations
                           and such other tests and studies as Purchaser may
                           elect to perform with respect to the Property;
                           provided, however, that Purchaser shall not conduct
                           any so-called "Phase II" environmental investigation
                           at the Property without the prior written consent of
                           Seller, which consent may be granted, withheld or
                           conditionally granted, in Seller's sole discretion;

                  (2)      deliver to Purchaser correct and complete copies of
                           all contracts affecting the Property in Seller's
                           possession or control; and

                  (3)      deliver to Purchaser correct and complete copies of
                           the following written materials pertaining to the
                           Property, to the extent the same are in Seller's
                           possession or control and to the extent Seller has
                           not provided such materials to Purchaser prior to the
                           date of this Agreement:

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                           (A)      a survey and existing title report with
                                    respect to the Property;

                           (B)      copies of the tax bills for the Property;

                           (C)      all existing drawings, plans and
                                    specifications and contracts relating to
                                    Seller's Work;

                           (D)      all existing building permits relating to
                                    the Property; and

                           (E)      any other existing written contracts that
                                    would be binding on Purchaser following the
                                    Closing.

                  (ii) If Purchaser is unsatisfied, in Purchaser's sole and
         absolute discretion, with the results of the Due Diligence Review or
         any other matter regarding the Property, Purchaser may terminate this
         Agreement by so notifying Seller on or before the last day of the Due
         Diligence Period. If Purchaser so notifies Seller, this Agreement shall
         terminate and $1,000,000.00 of the Downpayment, plus the Interest,
         shall be returned to Purchaser, and the remainder of the Downpayment,
         $250,000.00, shall be released to Seller in consideration for Seller
         entering into this Agreement. In the event that Purchaser does not so
         notify Seller, this Agreement shall continue in full force and effect.

                  (iii) Intentionally omitted.

                  (iv) Purchaser shall repair and/or replace any property
         damaged at the Property to the same condition and quality as existed
         prior to such damage if such damage is caused by or arises out of or in
         connection with the Due Diligence Review. Purchaser shall indemnify
         Seller against any liability and damages, including, without
         limitation, any damage, death or injury to any person or property which
         occurs as a result of the negligence or misconduct of Purchaser or its
         agents in connection with the Due Diligence Review; provided, however,
         that Purchaser shall have no liability resulting from the mere
         discovery of existing conditions at or affecting the Property.

                  (v) Purchaser acknowledges and agrees that if as a result of
         the Due Diligence Review, Purchaser or its agents have actual knowledge
         of any matter or state of facts inconsistent with the Information
         (hereinafter defined) or the representations and warranties of Seller
         set forth in this Agreement

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         then the Information and the representations and warranties of Seller
         set forth in this Agreement shall be deemed modified to conform to the
         matters and state of facts actually known by Purchaser or its agents as
         a result of the Due Diligence Review.

                  (vi) The information and data (collectively, "INFORMATION")
         which has been or will be made available to Purchaser with respect to
         the Property in connection with the Due Diligence Review is
         confidential and shall be governed by the terms of that certain
         Confidentiality Agreement dated as of December 23, 1999 between Seller
         and Purchaser ("CONFIDENTIALITY AGREEMENT"). In the event that this
         Agreement is terminated pursuant to the provisions of this SECTION
         5(c), all written Information shall be returned promptly to Seller.

                  (vii) The provisions of SECTIONS 5(c)(iv) AND 5(c)(vi) shall
         survive the Closing or earlier termination of this Agreement, as the
         case may be.

         (d) CONDITIONS GENERALLY. The foregoing conditions are for the benefit
only of the party for whom they are specified to be conditions precedent and
such party may, in its sole discretion, waive any or all of such conditions and
close title under this Agreement without any increase in, abatement of or credit
against the Purchase Price.

         6.  SELLER'S REPRESENTATIONS AND AGREEMENTS

         (a) REPRESENTATIONS. Seller represents and warrants to Purchaser as
follows (for purposes of this SECTION 6(a), Seller's knowledge shall be deemed
to be the actual knowledge of David S. Hall, without any independent
investigation):

                  (i)      AS TO SELLER'S ORGANIZATION, POWER AND AUTHORITY.

                           (1)      Seller is a limited partnership that has
                                    been duly organized and is validly existing
                                    under the laws of the State of Delaware and
                                    as of the Closing shall be duly qualified
                                    to do business in the Commonwealth of
                                    Massachusetts;

                           (2)      Seller has full power and right to enter
                                    into and perform its obligations under this
                                    Agreement and the other agreements
                                    contemplated herein to be executed and

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                                    performed by it, including, without being
                                    limited to, conveying the Property as herein
                                    provided;

                           (3)      Neither Seller nor any general partner in
                                    Seller is in the hands of a receiver, nor is
                                    an application for a receiver pending, nor
                                    has Seller or any general partner in Seller
                                    made an assignment for the benefit of
                                    creditors, nor has Seller or any general
                                    partner in Seller filed, or had filed
                                    against it, any petition in bankruptcy;

                           (4)      The execution and delivery of this Agreement
                                    and the consummation of the transactions
                                    contemplated hereby on the part of Seller
                                    (A) have been duly authorized by all
                                    necessary partnership acts on the part of
                                    Seller and any general partner in Seller,
                                    and (B) do not and will not (v) require any
                                    governmental or other consent, (w) violate
                                    or conflict with any judgment, decree or
                                    order of any court applicable to or
                                    affecting Seller or any general partner in
                                    Seller, (x) violate or conflict with any law
                                    or governmental regulation applicable to
                                    Seller or any general partner in Seller, (y)
                                    violate or conflict with the organizational
                                    documents of Seller or any general partner
                                    in Seller and (z) do not and will not result
                                    in the breach of, or constitute a default
                                    under, any agreement, contract, indenture or
                                    other instrument or other obligation to
                                    which Seller is a party or is otherwise
                                    bound. Upon the assumption that this
                                    Agreement constitutes the legal, valid and
                                    binding obligation of Purchaser, this
                                    Agreement constitutes the legal, valid and
                                    binding obligation of Seller;

                           (5)      Seller is not a "foreign person", as defined
                                    in Section 1445 of the United States
                                    Internal Revenue Code of 1986, as amended,
                                    and the regulations issued thereunder
                                    ("CODE"); and

                           (6)      There are no actions, suits or proceedings
                                    (including, but not limited to bankruptcy)
                                    pending or, to the knowledge of Seller,
                                    threatened, against Seller or, to Seller's
                                    knowledge, affecting Seller which if
                                    determined adversely to Seller, would
                                    adversely affect the

                                       13

<PAGE>

                                    Property or Seller's ability to perform its
                                    obligations hereunder.

                  (ii)     AS TO THE PROPERTY.

                           (1)      Prior to the date of this Agreement, Seller
                                    has not received written notice of any
                                    pending or threatened condemnation of all or
                                    any part of the Property;

                           (2)      Except as set forth in the Permitted Title
                                    Exceptions, there are no occupancy rights,
                                    leases or tenancies presently affecting the
                                    Property;

                           (3)      (A) The Contracts are all of the material
                                    service, maintenance, supply and management
                                    contracts and agreements presently
                                    affecting the Property to which Seller is a
                                    party and which will be binding on Purchaser
                                    or the Property following the Closing and
                                    there are no other contracts which will be
                                    binding on Purchaser or the Property
                                    following the Closing; (B) Seller has
                                    heretofore delivered to Purchaser true and
                                    complete copies of each of the Contracts;
                                    and (C) the Contracts have not been modified
                                    or amended, except as indicated on EXHIBIT
                                    D hereto;

                           (4)      Seller's obligation to Polaroid Corporation
                                    and any other parties under the Mutual
                                    Covenants with respect to the water pipeline
                                    described therein shall not exceed
                                    $150,000.00 in the aggregate and with
                                    respect to traffic signalization described
                                    therein shall not exceed $150,000 in the
                                    aggregate;

                           (5)      Seller has no knowledge of any legal action
                                    commenced or threatened against Seller or
                                    Seller's interest in the Property which
                                    could materially and adversely affect the
                                    Property;

                           (6)      Seller has not received any written notice
                                    of any violation of any zoning, building,
                                    subdivision, land sales, securities, land
                                    use, ecology or environmental protection
                                    laws, ordinances, rules and regulations of
                                    govern-

                                       14

<PAGE>

                                    ment authorities including those of any and
                                    all regulatory agencies and administrative
                                    officials having or asserting jurisdiction
                                    over the Property or any portion of the
                                    Property, pertaining to the Property or any
                                    portion of the Property which has not been
                                    complied with, nor does Seller have any
                                    knowledge of any violation thereof. Seller
                                    has received no written notice prior to the
                                    date of this Agreement from any governmental
                                    authority of, nor has any knowledge of, any
                                    proposed or pending proceeding to change or
                                    redefine the zoning classification of all or
                                    any portion of the Property;

                           (7)      Seller has not received any written notice
                                    from any insurance company insuring the
                                    Property of any defects or inadequacies in
                                    the Property or any part thereof which would
                                    materially adversely affect the insurability
                                    of the Property or the premiums for the
                                    insurance thereof;

                           (8)      Seller has not received any written notice
                                    prior to the date of this Agreement from any
                                    governmental agency or official to the
                                    effect that any condemnation proceeding is
                                    contemplated in connection with the
                                    Property;

                           (9)      Intentionally omitted;

                           (10)     Except as set forth in the Permitted Title
                                    Exceptions, Seller has not granted, nor does
                                    Seller have knowledge of, any option
                                    agreements or rights of first refusal with
                                    respect to the purchase, lease or occupancy
                                    of the Property or any rights in favor of
                                    third persons to purchase or otherwise
                                    acquire the Property or any interest in the
                                    Property;

                           (11)     Seller has delivered to Purchaser true and
                                    complete copies of all Contracts (including
                                    all amendments or supplements thereto) and,
                                    to the best of Seller's knowledge, all
                                    other contracts and agreements which affect
                                    the use or operation of the Property. Seller
                                    has not received any written notice of any
                                    default under any Contract that has not been
                                    cured or waived;

                                       15

<PAGE>

                           (12)     There are no employment contracts entered
                                    into by Seller which will be binding after
                                    Closing on Purchaser as owner of the
                                    Property. Seller has no employees with
                                    respect to whom Purchaser shall bear any
                                    responsibility or continued employment
                                    after Closing or for payment of wages,
                                    benefits or the like which accrue prior to
                                    Closing;

                           (13)     As of the Closing, all contractors,
                                    subcontractors, suppliers, architects,
                                    engineers and others who have performed
                                    services, labor or supplied material during
                                    the period of Seller's ownership of the
                                    Property shall have been paid in full, and
                                    all liens arising therefrom (or claims which
                                    with the passage of time or notice or both,
                                    could mature into liens) shall have been
                                    bonded over or satisfied and released;

                           (14)     Except for the Permits, Seller has not
                                    entered into any unrecorded commitments or
                                    agreements with any governmental agencies
                                    or authorities affecting the Property;

                           (15)     To Seller's knowledge, as of the date of
                                    this Agreement, no abatement proceedings are
                                    pending with reference to any real estate
                                    taxes assessed against the Property and
                                    Seller shall not institute any such
                                    proceeding without Purchaser's prior written
                                    consent. As of the date of this Agreement,
                                    there are no betterment assessments or other
                                    special assessments presently pending or, to
                                    Seller's knowledge, proposed by any
                                    governmental authority with respect to any
                                    portion of the Property; and

                           (16)     EXHIBIT E lists all licenses, permits,
                                    authorizations, consents and approvals from
                                    any governmental authorities received by
                                    Seller in connection with the Property as of
                                    the date of this Agreement, which EXHIBIT E
                                    shall be updated at the Closing.

         (b) MISCELLANEOUS AGREEMENTS. Seller, during the term of this
Agreement, (i) will not, without Purchaser's consent, which consent Purchaser
agrees not to

                                       16

<PAGE>

unreasonably withhold or delay unless the same shall materially affect
Purchaser's rights or interests, extend or otherwise modify any Contract, (ii)
will not lease or sublease any of the Property, and (iii) will not commit to,
enter into or make any brokerage agreement related to the Property without
Purchaser's consent.

         (c) ACCESS. Purchaser or Purchaser's representative may attend all job
meetings for Seller's Work. Purchaser may, upon reasonable notice, inspect all
of Seller's records regarding Seller's Work. Seller shall, during normal
business hours upon reasonable prior notice, allow Purchaser or its
representatives access to the Property, so long as Purchaser and Purchaser's
representatives do not unreasonably interfere with the operation of the Property
or the construction activities being performed at the Property; PROVIDED,
HOWEVER, that Purchaser will indemnify Seller against any liability or damages
in connection with or arising out of any negligent or improper act of Purchaser
or its representatives as a result of their access or inspection of the
Property. Said indemnification provisions shall survive the Closing or earlier
termination of this Agreement, as the case may be.

         (d) SURVIVAL. The only representations, warranties and agreements of
Seller hereunder that shall survive the Closing are those specifically stated
herein to survive. The representations and warranties of Seller contained in
SECTION 6(A) shall survive the Closing for a period of one (1) year.

         (e) CERTAIN LIMITATIONS ON SELLER'S REPRESENTATIONS AND WARRANTIES. The
representations and warranties of Seller set forth in SECTION 6(a) are subject
to the following express limitations:

                  (i) Seller does not represent or warrant that the parties,
         other than Seller, to the Contracts, will not be in default under their
         respective Contracts.

         (f) NO OTHER REPRESENTATIONS OR WARRANTIES. Purchaser represents,
warrants and agrees that (i) as of the expiration of the Due Diligence Period
Purchaser shall have examined the Property and be familiar with the physical
condition thereof and shall have conducted such investigation of the affairs of
the Property as Purchaser has considered appropriate, (ii) neither Seller nor
any of the employees, agents or attorneys of Seller have made any verbal or
written representations, warranties, promises or guaranties whatsoever to
Purchaser, whether express or implied, and, in particular, that no such
representations, warranties, promises or guaranties have been made with respect
to the physical condition or operation of the Property, the actual or projected
revenue and expenses of the Property, the zoning and other laws, regulations and
rules applicable to the Property or the compliance of

                                       17

<PAGE>

the Property therewith, the quantity, quality or condition of the articles of
personal property and fixtures included in the transactions contemplated hereby,
the use or occupancy of the Property or any part thereof or any other matter or
thing affecting or related to the Property or the transactions contemplated
hereby, except as, and solely to the extent, herein specifically set forth, and
(iii) Purchaser has not relied upon any such representations, warranties,
promises or guaranties (other than those expressly set forth in this Agreement)
or upon any statements made in any informational brochure with respect to the
Property and has entered into this Agreement knowing that it must rely solely on
its own independent investigation, inspection, analysis, appraisal, examination
and evaluation of the facts and circumstances. `

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, AND EXCEPT FOR SELLER'S
REPRESENTATIONS AND WARRANTIES IN SECTION 6(a), OR CONTAINED IN ANY OF TITLE
CLOSING DOCUMENTS REQUIRED TO BE DELIVERED BY SELLER AT THE CLOSING PURSUANT TO
THIS AGREEMENT (COLLECTIVELY, "SELLER'S WARRANTIES"), THIS SALE IS MADE AND WILL
BE MADE WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND (WHETHER EXPRESS,
IMPLIED, OR, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, STATUTORY) BY
SELLER. AS A MATERIAL PART OF THE CONSIDERATION OF THIS AGREEMENT, BUT WITHOUT
LIMITING SELLER'S OBLIGATION TO ACHIEVE FINAL COMPLETION OF THE SELLER'S WORK IN
ACCORDANCE WITH EXHIBIT B OR THE SATISFACTION OF THE PURCHASER'S CONDITIONS SET
FORTH IN SECTION 5(a) OR SELLER'S OBLIGATIONS UNDER SECTION 10, PURCHASER AGREES
TO ACCEPT THE PROPERTY ON AN "AS IS" AND "WHERE IS" BASIS, WITH ALL FAULTS, AND
WITHOUT ANY REPRESENTATION OR WARRANTY BY SELLER OR ANYONE ACTING OR CLAIMING
TO ACT BY, THROUGH OR UNDER OR ON SELLER'S BEHALF, ALL OF WHICH SELLER HEREBY
DISCLAIMS, EXCEPT FOR SELLER'S WARRANTIES. EXCEPT FOR SELLER'S WARRANTIES, NO
WARRANTY OR REPRESENTATION IS MADE BY SELLER AS TO FITNESS FOR ANY PARTICULAR
PURPOSE, MERCHANTABILITY, DESIGN, QUALITY, CONDITION, OPERATION OR INCOME,
COMPLIANCE WITH DRAWINGS OR SPECIFICATIONS, ABSENCE OF DEFECTS, ABSENCE OF
HAZARDOUS OR TOXIC SUBSTANCES, ABSENCE OF FAULTS, FLOODING OR COMPLIANCE WITH
LAWS AND REGULATIONS INCLUDING, WITHOUT LIMITATION, THOSE RELATING TO HEALTH,
SAFETY AND THE ENVIRONMENT (INCLUDING, WITHOUT LIMITATION, THE AMERICANS WITH
DISABILITY ACT AND COMPARABLE STATE LAWS). PURCHASER ACKNOWLEDGES THAT PURCHASER
HAS ENTERED INTO THIS AGREEMENT WITH THE INTENTION OF MAKING AND RELYING

                                       18

<PAGE>

UPON ITS OWN INVESTIGATION OF THE PHYSICAL, ENVIRONMENTAL, ECONOMIC USE,
COMPLIANCE AND LEGAL CONDITION OF THE PROPERTY, SELLER'S WARRANTIES AND THE
COVENANTS TO BE PERFORMED BY SELLER PRIOR TO THE CLOSING AS EXPRESSLY SET FORTH
IN THIS AGREEMENT, AND THAT PURCHASER IS NOT NOW RELYING, AND WILL NOT LATER
RELY, UPON ANY REPRESENTATIONS AND WARRANTIES MADE BY SELLER OR ANYONE ACTING OR
CLAIMING TO ACT, BY, THROUGH OR UNDER OR ON SELLER'S BEHALF CONCERNING THE
PROPERTY, EXCEPT FOR SELLER'S WARRANTIES AND THE CLOSING DOCUMENTS REQUIRED TO
BE DELIVERED BY SELLER AT THE CLOSING PURSUANT TO THIS AGREEMENT. ADDITIONALLY,
PURCHASER AND SELLER HEREBY AGREE THAT EXCEPT FOR SELLER'S WARRANTIES, THE
COVENANTS TO BE PERFORMED BY SELLER PRIOR TO THE CLOSING AS EXPRESSLY SET FORTH
IN THIS AGREEMENT, THE SATISFACTION OF THE PURCHASER'S CONDITIONS TO THE CLOSING
SET FORTH IN SECTION 5(a), (1) PURCHASER IS TAKING THE PROPERTY "AS IS" WITH ALL
LATENT AND PATENT DEFECTS AND THERE IS NO WARRANTY BY SELLER THAT THE PROPERTY
IS FIT FOR A PARTICULAR PURPOSE, (2) PURCHASER IS SOLELY RELYING UPON ITS
EXAMINATION OF THE PROPERTY, AND (3) PURCHASER TAKES THE PROPERTY UNDER THIS
AGREEMENT UNDER THE EXPRESS UNDERSTANDING THAT THERE ARE NO EXPRESS OR IMPLIED
WARRANTIES BY SELLER OR ANYONE ACTING OR CLAIMING TO ACT BY, THROUGH OR UNDER OR
ON SELLER'S BEHALF. FOR PURPOSES OF THIS PARAGRAPH, THE CONSTRUCTION, DESIGN AND
ENGINEERING PROFESSIONALS PERFORMING THE SELLER'S WORK SHALL NOT BE DEEMED TO BE
ACTING OR CLAIMING TO ACT BY, THROUGH OR UNDER OR ON SELLER'S BEHALF

WITH RESPECT TO THE FOLLOWING, PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT,
EXCEPT AS SET FORTH IN THE SELLER WARRANTIES, SELLER SHALL NOT HAVE ANY
LIABILITY, OBLIGATION OR RESPONSIBILITY OF ANY KIND AND THAT SELLER HAS MADE NO
REPRESENTATIONS OR WARRANTIES OF ANY KIND.

A.       THE CONTENT OR ACCURACY OF ANY REPORT, STUDY, OPINION OR CONCLUSION OF
         ANY SOILS, TOXIC, ENVIRONMENTAL OR OTHER ENGINEER OR OTHER PERSON OR
         ENTITY WHO HAS EXAMINED THE PROPERTY OR ANY ASPECT THEREOF;

                                       19

<PAGE>

B.       THE CONTENT OR ACCURACY OF ANY OF THE ITEMS (INCLUDING, WITHOUT
         LIMITATION, THE PROPERTY INFORMATION) DELIVERED TO PURCHASER PURSUANT
         TO PURCHASER'S REVIEW OF THE CONDITION OF THE PROPERTY; OR

C.       THE CONTENT OR ACCURACY OF ANY PROJECTION, FINANCIAL OR MARKETING
         ANALYSIS OR OTHER INFORMATION GIVEN TO PURCHASER BY SELLER OR REVIEWED
         BY PURCHASER WITH RESPECT TO THE PROPERTY.

D.       PURCHASER HAS RECEIVED THE ADVICE OF SOPHISTICATED REAL ESTATE
         PROFESSIONALS IN CONNECTION WITH THE TRANSACTION CONTEMPLATED BY THIS
         AGREEMENT AND IS, OR AS OF THE CLOSING, WILL BE, FAMILIAR WITH THE
         PROPERTY AND ITS SUITABILITY FOR PURCHASER'S INTENDED USE. THE
         PROVISIONS OF THIS SECTION 6(f) SHALL SURVIVE INDEFINITELY ANY CLOSING
         OR TERMINATION OF THIS AGREEMENT AND SHALL NOT BE MERGED INTO THE
         DOCUMENTS EXECUTED AT THE CLOSING.

         7.  PURCHASER'S REPRESENTATION AND AGREEMENTS.

         (a) REPRESENTATIONS. Purchaser represents, warrants and covenants with
Seller as follows:

                  (i) Purchaser is a corporation that has been duly organized
         and is validly existing under the laws of Delaware and is duly
         qualified to do business in the Commonwealth of Massachusetts;

                  (ii) Purchaser has full power and right to enter into and
         perform its obligations under this Agreement and the other agreements
         contemplated herein to be executed and performed by it;

                  (iii) Purchaser is not in the hands of a receiver, nor is
         application for a receiver pending, nor has Purchaser made an
         assignment for the benefit of creditors, nor has Purchaser filed, or
         had filed against it, any petition in bankruptcy; and

                  (iv) The execution and delivery of this Agreement and the
         consummation of the transactions contemplated hereby on the part of
         Purchaser (1) have been duly authorized by all necessary corporate acts
         on the part of

                                       20

<PAGE>

         Purchaser, and (2) do not and will not (A) require any governmental or
         other consent, (B) violate or conflict with any judgment, decree or
         order of any court applicable to or affecting Purchaser, (C) violate or
         conflict with any law or governmental regulation applicable to
         Purchaser, (D) violate or conflict with the organization documents of
         Purchaser and (E) do not and will not result in the breach of, or
         constitute a default under, any agreement, contract, indenture or other
         instrument or other obligation to which Purchaser is a party or is
         otherwise bound. Upon the assumption that this Agreement constitutes
         the legal, valid and binding obligation of Seller, this Agreement
         constitutes the legal, valid and binding obligation of Purchaser.

         (b) MISCELLANEOUS AGREEMENTS. In the event the Closing does not occur
and this Agreement is terminated, Purchaser shall promptly return to Seller all
copies of Information without retaining any copy thereof or extract therefrom.

         (c) ERISA. Purchaser is not purchasing any of the Property with "plan
assets" of an Employee Benefit Plan subject to Title 1 of the Employee
Retirement Income Security Act of 1974 (as amended from time to time, the "ACT,"
and together with any regulation, rule or judicial or administrative case, order
or pronouncement arising under or connected with the Act, "ERISA") or of a plan
subject to Section 4975 of the Code. Purchaser shall take all actions reasonably
requested by Seller for the purpose of ensuring, to Seller's satisfaction, that
the transactions contemplated herein will comply with ERISA and not result in an
imposition of an excise tax under Section 4975 of the Code; such actions shall
include, without limitation, the making of such further representations and
warranties as Seller's counsel reasonably deems necessary to ensure that neither
this Agreement not any of the transactions contemplated herein will violate
ERISA or result in the imposition of an excise tax under Section 4975 of the
Code.

         (d) SURVIVAL. The representations, warranties and covenants set forth
in SECTION 7, as applicable at the Closing Date, shall survive the Closing for a
period of one (1) year.

         8. APPORTIONMENTS. (a) The following items shall be apportioned at the
Closing as of the midnight on the day immediately preceding the Closing Date:

                  (i) Real estate taxes, assessments, other than special
         assessments made against the Property, based on the rates and assessed
         valuation applicable in the fiscal year for which assessed;

                  (ii) Water rates and charges;

                                       21

<PAGE>

                  (iii) Sewer and vault taxes and rents;

                  (iv) Annual license, permit and inspection fees except for
         those relating to construction of the Improvements, which shall be
         Seller's obligation in their entirety;

                  (v)  Intentionally omitted;

                  (vi) All charges and payments for water and sewer services
         supplied to the Property, provided, however, that if there is not meter
         or if the current bill for any of such utilities has not been issued
         prior to the Closing Date, the charges therefor shall be adjusted at
         the Closing on the basis of the charges for the prior period for which
         bills were issued and shall be further adjusted when the bills for the
         current period are issued; and

                  (vii) Amounts paid or outstanding for the water pipeline and
         traffic signalization under the Mutual Covenants in accordance with
         SECTION 5(a)(i)(3).

If any of the foregoing cannot be apportioned at the Closing because of the
unavailability of the amounts which are to be apportioned, such items shall be
apportioned as soon as practicable after the Closing Date.

         (b) The amount of any unpaid real property taxes and assessments, water
rates and charges and sewer taxes and rents which Seller is obligated to pay and
discharge may, at the option of Seller, be credited to Purchaser out of the cash
balance of the Purchase Price, provided that official bills therefor, indicating
the interest and penalties, if any, thereon, are furnished by Seller at the
Closing.

         (c) If any refunds of real property taxes or assessments, water rates
and charges or sewer taxes and rents shall be made after the Closing, the same
shall be held in trust by Seller or Purchaser, as the case may be, and shall
first be applied to the unreimbursed costs incurred in obtaining the same, then
paid to any tenant at the Property who is entitled to the same and the balance,
if any, shall be paid to Seller (for the period prior to the Closing Date) and
to Purchaser (for the period commencing with the Closing Date).

         (d) If at the Closing Date the Property or any part thereof shall be or
shall have been affected by any general assessment or assessments or real
property taxes which are or may become payable in installments of which any
installment is then a charge or lien and has become payable, Seller shall pay or
cause to be paid the

                                       22

<PAGE>

unpaid installments of such assessments due prior to the Closing Date and
Purchaser shall pay or cause to be paid all installments which are due on or
after the Closing Date. The current installments shall be apportioned at the
Closing. Any special assessment made against the Property prior to the Closing
shall be paid by Seller prior to the Closing whether or not the payments
therefor are due and payable prior to the Closing.

         (e) If, on the Closing Date, there are any Purchaser Initiated Change
Orders (as defined in EXHIBIT B) which have not been fully paid for by
Purchaser, then the additional costs due to such Purchaser Initiated Change
Orders shall be paid by Purchaser at the Closing.

         (f) In the event the apportionments hereinabove provided which are to
be made at the Closing result in a credit balance (i) to Purchaser, such sum
shall be paid at the Closing, by giving Purchaser a credit against the balance
of the Purchase Price in the amount of such credit balance or (ii) to Seller,
Purchaser shall pay the amount thereof to Seller at the Closing by wire transfer
of immediately available funds to the account or accounts designated by Seller
in writing for the balance of the Purchase Price.

         (g) Seller shall be responsible for the payment of amounts due pursuant
to clause (ii) of the last paragraph of Section 2.3 of the Reciprocal Easement
Agreement dated as of March 25, 1999 between Seller and Polaroid Corporation,
filed with the South Registry District of Middlesex County as Document No.
1101666, and all other amounts due under the Contracts prior to the Closing
Date. Purchaser shall be responsible for all other amounts which arise under the
Contracts which are not due until on or after the Closing Date.

         (h) No insurance policies of Seller are to be transferred to Purchaser,
and no apportionment of the premiums therefor shall be made. Purchaser
acknowledges that it shall be responsible for securing its own insurance for the
Property as of the Closing Date.

         (i) The obligations of the parties hereto under this SECTION 8 shall
survive the Closing.

         9. CLOSING MATTERS The following items shall be provided for at the
Closing:

         (a)      PAYMENT OF RECORDING, TITLE AND OTHER FEES.

                                       23

<PAGE>

                           (i) RECORDING FEES. Seller shall pay the fee for
                  documentary deed stamps due in connection with the
                  consummation of the transactions contemplated by this
                  Agreement. Purchaser shall pay at the Closing all state, city,
                  county, municipal and other governmental recording fees in
                  connection with the conveyance of the Property.

                           (ii) TITLE FEES. Purchaser shall pay all charges and
                  fees and premiums of the Title Company in connection with the
                  examination of title. Purchaser shall pay all premiums of the
                  Title Company in connection with the title insurance policy,
                  if any, to be obtained by Purchaser.

                           (iii) OTHER CHARGES. Other charges, if any, shall be
                  paid in the manner in which purchasers and sellers of real
                  property in Middlesex County, Massachusetts customarily divide
                  such charges.

         (b) UTILITY DEPOSITS. Seller shall be entitled to any deposits made by
Seller with utility companies servicing the Property, and, if the same are not
refundable to Seller without replacement by Purchaser, Purchaser shall either:
(i) deliver the requisite replacement deposit to the utility company on or prior
to the Closing Date or (ii) pay to Seller at the Closing the amount of such
deposit, against reasonable evidence of such deposit and a good and sufficient
transfer by Seller to Purchaser of all interest of Seller in the deposit.

         (c) SURVIVAL. The obligations of Seller and Purchaser under this
SECTION 9 shall survive the Closing.

         10. TITLE EXAMINATION. (a) Purchaser shall obtain from a title company
licensed to do business in the Commonwealth of Massachusetts ("TITLE COMPANY") a
commitment for a title insurance policy and, in connection therewith, shall
cause title to the Property to be searched and examined by the Title Company,
and shall request that the Title Company deliver directly to Seller's counsel
copies of the Title Company's report, the tax and departmental searches and the
survey reading and any updates or continuations thereof and any supplements
thereto. No later than February 7, 2000, Purchaser shall deliver to Seller a
written statement setting forth any liens or encumbrances affecting, or other
defects in or objections to, title to the Property disclosed by such materials
other than Permitted Title Exceptions ("ADDITIONAL EXCEPTIONS"). The failure by
Purchaser to deliver any statement required by the immediately preceding
sentence within the time period specified therefor, or to include any matter in
any such statement which was delivered by Purchaser within the time period
specified therefor, shall constitute a waiver by Purchaser of any and

                                       24

<PAGE>

all Additional Exceptions which may be, or should have been, disclosed by the
materials to be covered by such statement and such Additional Exceptions shall
be deemed Permitted Title Exceptions as if fully set forth in EXHIBIT C hereto.
Notwithstanding any of the foregoing to the contrary, (i) Seller shall be
required to discharge prior to the Closing (or deliver at the Closing
instruments sufficient, upon filing with the Land Court, to discharge such
matters from title to the Property)_ all title encumbrances evidencing monetary
indebtedness of Seller, including without limitation a mortgage, assignment of
leases and rents and uniform commercial code financing statements from Seller in
favor of Pacific Life Insurance Company ("FINANCIAL ENCUMBRANCES"), and (ii)
Seller shall exercise reasonable efforts to discharge prior to the Closing all
other title encumbrances which do not constitute Permitted Title Exceptions,
provided however that with respect to the discharge of matters referenced in
this clause (ii), Seller's "reasonable efforts" shall not be deemed to require
Seller to bring any legal action or proceeding or otherwise incur expenses in
excess of $250,000. All such matters described in clauses (i) and (ii) of the
preceding sentence which first became record title matters after January 2,
2000, also shall constitute "ADDITIONAL EXCEPTIONS."

         (b) Seller shall be entitled to reasonable adjournments of the Closing
during which Seller shall attempt to remove Additional Exceptions in accordance
with SECTION 10(a). If for any reason, despite Seller's efforts consistent with
the preceding sentence, Seller is unable, despite the exercise of reasonable
efforts, to remove any Additional Exception (other than Financial Encumbrances
or Additional Exceptions voluntarily entered into by Seller in violation of this
Agreement, which Seller shall remove), as of the Closing Date, as such date may
be adjourned pursuant to this SECTION 10(b), Seller shall so notify Purchaser.
If such notice is given by Seller, Purchaser shall elect (i) to terminate this
Agreement by giving notice to Seller, in which event the provisions of SECTION
13(b) shall apply or (ii) to perform all of Purchaser's obligations hereunder
and accept title to the Property subject to such uncured Additional Exceptions
without any abatement of the Purchase Price or liability on the part of Seller.
Purchaser shall make its election between clauses (i) and (ii) of the
immediately preceding sentence by written notice to Seller given not later than
5:00 P.M. on the fifth Business Day after the giving of the notice by Seller of
its inability or unwillingness to remove such Additional Exceptions. If
Purchaser shall fail or refuse to give such written notice as aforesaid, it
shall be deemed to have elected clause (ii) above and the Closing shall take
place on the Closing Date.

         (c) At Purchaser's reasonable request, Seller agrees to exercise
reasonable efforts (which shall not require the expenditure of any funds other
than minimal legal or consultants' fees) during the pendency of this Agreement
to obtain (i) from Polaroid Corporation and MMS Winter Street, L.L.C. an
acknowledgement or

                                       25

<PAGE>

release to the effect that there are no ongoing obligations on the part of
Seller (or, following the Closing, Purchaser) with respect to the Polaroid
Utility Easement, Polaroid Driveway Easement and Common Drainage Easement
encumbering Lots 8 and 10 as shown on the "Survey of Lot 9 in Waltham,
Massachusetts" prepared by Martinage Engineering Associates, Inc. for Bren
Schreiber Properties, Inc. dated March 11, 1999 and (ii) certificates from the
other parties to the contracts regarding any outstanding obligation of Seller.

         11. RISK OF LOSS. (a) If a part of the Property is destroyed or damaged
by fire or other casualty, Seller shall promptly notify Purchaser of such fact.
Seller shall have the right to terminate this Agreement by giving notice to
Purchaser not later than ten (10) days after the giving of Seller's notice if,
despite Seller's best efforts, Seller's existing mortgagee refuses to release
casualty proceeds in accordance with the terms of its mortgage encumbering the
Property and the part of the Property damaged or destroyed has a value, as
reasonably determined by Seller, in excess of One Million and 00/100 Dollars
($1,000,000.00). Seller also shall have the right to terminate this Agreement if
such casualty occurs after Seller delivers the Closing Notice but prior to the
Closing Date by giving notice to Purchaser not later than ten (10) days after
the giving of Seller's notice if the part of the Property damaged or destroyed
has a value, as reasonably determined by Seller, in excess of Seven Million Five
Hundred Thousand and 00/100 Dollars ($7,500,000.00). Purchaser shall have the
right to terminate this Agreement if such casualty occurs after Seller delivers
the Closing Notice but prior to the Closing Date by giving notice to Seller not
later than ten (10) days after the giving of Seller's notice if the part of the
Property damaged or destroyed has a value, as reasonably determined by Seller,
in excess of Five Hundred Thousand and 00/00 Dollars ($500,000.00). If either
party elects to terminate this Agreement as aforesaid, this Agreement shall
terminate and be of no further force and effect and neither party shall have any
liability to the other hereunder, except that Seller shall be obligated to
return to Purchaser the Downpayment. If neither Seller nor Purchaser elects to
terminate this Agreement as aforesaid, or if there is damage to or destruction
of an "immaterial part" (i.e., anything other than a material part) of the
Property by fire or other casualty, then the sale of the Property shall be
consummated as herein provided at the Purchase Price (without abatement) and
Seller shall assign to Purchaser (without recourse) at the Closing the rights of
Seller to the proceeds, if any, under Seller's insurance policies covering the
Property with respect to such damage or destruction, and Purchaser shall be
entitled to receive and keep any moneys received from such insurance policies.
Seller shall cause the Property to be insured until the Closing with insurance
at not less than the limits at which the Property currently is insured, as
evidenced by insurance certificates or binders previously delivered to
Purchaser.

                                       26

<PAGE>

         (b) If all or any significant portion of the Property is taken by
eminent domain (or is the subject of a pending taking which has not yet been
consummated), Seller shall notify Purchaser of such fact promptly after
obtaining knowledge thereof and either Purchaser or Seller shall have the right
to terminate this Agreement by giving notice to the other not later than ten
(10) days after the giving of Seller's notice. For the purposes hereof, a
"significant portion" of the Property shall mean such a portion of the Property
as shall negatively impact the value of the Property by an amount, as reasonably
determined by Seller, in excess of Five Hundred Thousand and 00/00 Dollars
($500,000.00), or otherwise negatively affects zoning, parking or access. If
either party elects to terminate this Agreement as aforesaid, this Agreement
shall terminate and be of no further force and effect and neither party shall
have any liability to the other hereunder, except that Seller shall be obligated
to return to Purchaser the Downpayment. If neither Seller nor Purchaser elects
to terminate this Agreement as aforesaid, or if an "insignificant portion"
(I.E., anything other than a significant portion) of the Property is taken by
eminent domain (or becomes the subject of a pending taking), then the sale of
the Property shall be consummated as herein provided at the Purchase Price
(without abatement) and Seller shall assign to Purchaser (without recourse) at
the Closing all of Seller's right, title and interest in and to all awards, if
any, for the taking, and Purchaser shall be entitled to receive and keep all
awards for the taking of the Property or such portions thereof.

         (c) The parties' obligations, if any, under this SECTION 11 shall
survive the Closing.

         12. BROKERAGE. Each of Purchaser and Seller represents and warrants to
the other that it has not hired, retained or dealt with any broker, consultant,
intermediary or finder in connection with the negotiation, execution or delivery
of this Agreement or the consummation of the transactions contemplated hereby to
whom a commission is or will be owed other than Grubb & Ellis and McCall & Almy,
Inc. Seller and Purchaser each covenant and agree to indemnify the other against
liability arising out of any breach or inaccuracy of the aforesaid
representation or warranty. Seller shall be solely responsible for the brokerage
commission due to Grubb & Ellis and for $800,000.00 of the brokerage commission
due to McCall & Almy, Inc. in connection with the transactions contemplated by
this Agreement, but only if, as and when the Deed is delivered to Purchaser and
recorded and the full Purchase Price is paid to Seller. Purchaser shall be
responsible for any other brokerage commission due to McCall & Almy, Inc. in
connection with the transactions contemplated by this Agreement. The provisions
of this SECTION 12 shall survive the Closing.

         13. REMEDIES. (a) The parties hereto agree that in the event Purchaser
defaults in its obligation to deliver the Purchase Price at the Closing or
otherwise

                                       27

<PAGE>

perform its obligations at the Closing, Seller may terminate this Agreement by
written notice to Purchaser and receive Two Million and 00/100 Dollars
($2,000,000.00) (plus any Interest on the Downpayment) as liquidated damages,
and Purchaser thereafter shall not have any further liability or obligation to
Seller at law or in equity. The Downpayment (plus any Interest on the
Downpayment) shall be released to Seller to satisfy (if Purchaser delivered the
Additional Downpayment) or partially to satisfy (if Purchaser did not deliver
the Additional Downpayment) the liquidated damages to be paid to Seller. If
Purchaser did not deliver the Additional Downpayment, then upon such termination
of this Agreement, Purchaser immediately shall deliver to Seller the amount of
Seven Hundred Fifty Thousand and 00/100 Dollars ($750,000.00), which, together
with the Initial Downpayment and any interest accrued on the Initial
Downpayment, shall be paid to Seller as liquidated damages. Purchaser's
obligation to deliver such liquidated damages to Seller, including without
limitation such $750,000.00, shall survive the termination of this Agreement.
Seller and Purchaser agree and acknowledge that Seller's actual damages in the
event of default by Purchaser would be extremely difficult or impossible to
ascertain and that the amount of liquidated damages provided herein is
reasonable in light of anticipated loss caused by such a default and the
difficulties of proof of loss.

         (b) In the event that on the Closing Date, Seller shall be unable,
despite the exercise of commercially diligent efforts, to perform its
obligations or to satisfy any condition applicable to Seller hereunder in
accordance with the provisions of this Agreement or to cause the title to the
Property to comply with this Agreement and this Agreement shall be terminated in
accordance with its terms as a result thereof, the sole liability of Seller
shall be to return the Downpayment, together with the Interest, to Purchaser,
and upon such return, this Agreement shall be deemed terminated and Seller shall
not have any further liability or obligations to Purchaser hereunder nor shall
Purchaser have any further liability or obligation to Seller hereunder, except
for such liabilities or obligations as are specifically stated to survive the
termination of this Agreement.

         (c) In the event that Seller willfully defaults in its obligation to
transfer the Property in accordance with this Agreement, Purchaser shall be
entitled to such remedies against Seller as are available at law or in equity,
including the rights to damages and specific performance of this Agreement.

         14. NOTICES. All notices and other communications required or permitted
hereby shall be in writing and shall be deemed to have been duly and
sufficiently given if personally delivered with proof of delivery thereof (any
notice or communication so delivered being deemed to have been received at the
time so delivered), or

                                       28

<PAGE>

sent by United States registered or certified mail, postage prepaid, at a post
office regularly maintained by the United States Postal Service (any notice or
communication so sent being deemed to have been received two (2) Business Days
after mailing in the United States), or by electronic facsimile transfer (any
notice or communication so sent being deemed to have been received at the time
indicated on the sender's receipt of transfer) addressed to the respective
parties as follows:

         (a)  if to Seller:

                  Best Property Fund, L.P.
                  c/o Bren Schreiber Properties, Inc.
                  125 Summer Street, Suite 1640
                  Boston, Massachusetts 02110
                  Attention:  David S. Hall
                  Fax:  (617) 345-9200

                  with a copy to:

                  Edward S. Hershfield, Esq.
                  Brown, Rudnick, Freed & Gesmer, P.C.
                  One Financial Center
                  Boston, Massachusetts 02111

                  Fax: (617) 856-8201

         (b)      if to Purchaser:

                  Praecis Pharmaceuticals Incorporated
                  One Hampshire Street
                  Cambridge, Massachusetts 02139
                  Attention: Kevin F. McLaughlin, Chief Financial Officer
                  Fax: (617) 494-8414

                  with a copy to:

                  Michael H. Glazer, Esquire
                  Goodwin, Proctor & Hoar LLP
                  Exchange Place
                  Boston, Massachusetts 02109-2881
                  Fax:  (617) 227-8591

                  and with a copy to:

                                       29

<PAGE>

                  Mary L. Lentz
                  McCall & Almay, Inc.
                  One Post Office Square
                  Boston, Massachusetts 02109
                  Fax:  (617) 542-4499

Either party may, by notice given as aforesaid, change the person or persons
and/or address or addresses, or designate an additional person or persons or an
additional address or addresses, for its notices, PROVIDED, HOWEVER, that notice
of change of address or addresses shall only be effective upon receipt. All
notices from Seller to Purchaser or from Purchaser to Seller pursuant to this
Agreement will be effective if executed by their respective attorneys (including
facsimile transfer).

         15. FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT. At the Closing, Seller
shall deliver to Purchaser an affidavit in the form required by Section 1445 at
the Code, to the effect that Seller is not a "foreign person" as defined in
Section 1445 of the Code.

         16. CHOICE OF LAW. The interpretation, enforcement and performance of
this Agreement shall be governed by the laws of the Commonwealth of
Massachusetts applicable to agreements made and to be performed wholly within
such Commonwealth.

         17. MISCELLANEOUS. (a) ENTIRE AGREEMENT; EXHIBITS. The Confidentiality
Agreement and this Agreement, together with the exhibits hereto, constitutes the
entire agreement of the parties hereto regarding the subject matter of this
Agreement and all other prior or contemporaneous agreements, understandings,
representations and statements, oral or written, hereby are merged herein. All
exhibits attached hereto are hereby incorporated herein and made a part hereof
by reference as fully as though set forth herein. Without limiting the
generality of the foregoing, that certain Letter of Intent dated December 23,
1999 between Seller and Purchaser is of no further force and effect, it having
been superceded by the terms of this Agreement.

         (b) AMENDMENTS. This Agreement may not be modified, amended, altered,
supplemented or cancelled except pursuant to the terms hereof or an instrument
in writing signed by the parties hereto.

         (c) ACCEPTANCE OF THE DEED. The acceptance of the Deed to the Property
by Purchaser shall be deemed an acknowledgment by Purchaser that Seller has
fully complied with all of its obligations hereunder and that Seller is
discharged therefrom and that Seller shall have no further obligation or
liability with respect to any of the

                                       30

<PAGE>

agreements made by Seller in this Agreement, except for those provisions of this
Agreement which expressly provide that any obligations of Seller shall survive
the Closing.

         (d) INDEMNIFICATION GENERALLY. Wherever it is provided in this
Agreement or in any agreement or document delivered pursuant hereto that a party
shall indemnify another party hereunder against liability or damages, such
phrase and words of similar import shall mean that the indemnifying party hereby
agrees to and does indemnify, defend and hold harmless the indemnified party and
such party's direct and indirect shareholders, partners and/or members and their
respective past, present and future officers, directors, employees and agents
from and against any and all costs, claims, demands, suits, judgments,
interests, damages, losses, liabilities and expenses (including without
limitation reasonable attorneys' fees and disbursements) to which they or any of
them may become subject or which may be incurred by or asserted against any or
all of them attributable to, arising out of or in connection with the matters
provided for in such provision. The provisions of this SECTION 17(d) shall
survive the Closing or earlier termination of this Agreement.

         (e) BINDING EFFECT. This Agreement does not constitute an offer to sell
or purchase and shall not bind Seller or Purchaser unless and until Seller and
Purchaser elect to be bound hereby by executing and delivering to one another an
executed original counterpart hereof and Seller receives the Initial Downpayment
in accordance with the terms of this Agreement and such funds have cleared.

         (f) PARTIAL INVALIDITY. If any term or provision of this Agreement or
the application thereof to any persons or circumstances shall, to any extent, be
invalid or unenforceable, the remainder of this Agreement or the application of
such term or provision to persons or circumstances other than those as to which
it is held invalid or unenforceable shall not be affected thereby, and each term
and provision of this Agreement shall be valid and enforceable to the fullest
extent permitted by law.

         (g) RECORDATION OF AGREEMENT. Neither Seller nor Purchaser may record
this Agreement or any notice of this Agreement. To the extent that any such
filing is made by Purchaser in violation of this Agreement, Purchaser shall
indemnify Seller against any damages incurred by Seller in connection therewith.
The provisions of this SECTION 17(g) shall survive the termination of this
Agreement.

         (h) FURTHER ASSURANCES. The parties mutually agree to execute and
deliver to each other, at the Closing, such other and further documents as may
be reasonably required by counsel for the parties to carry into effect the
purposes and intents of this Agreement, provided such documents are customarily
delivered in real estate

                                       31

<PAGE>

transactions in Massachusetts and do not impose any material obligations upon
any party hereunder which are inconsistent with the terms of this Agreement.

         (i) NONIMPUTATION. Neither party to this Agreement nor any other
corporation or entity referred to herein shall have imputed to it the knowledge
of any agent, officer, servant or employee thereof unless and until such agent,
officer, servant or employee has actual knowledge of the relevant event, notice,
condition, occurrence, fact or situation or has reasonable cause to know, or
should reasonably be aware thereof and then only if such event, notice,
condition, occurrence, fact or situation is related to matters as to which such
agent, officer, servant or employee is entrusted and with which has authority to
deal.

         (j) PREVAILING PARTY COSTS. In the event any dispute between the
parties hereto results in litigation, the prevailing party shall be reimbursed
and indemnified by the party not prevailing in such dispute for all costs and
expenses reasonably incurred by the prevailing party in enforcing or
establishing its rights hereunder, including without limitation court costs and
reasonable attorneys' fees and disbursements. The prevailing party shall be
determined by the court based upon an assessment of which party's major
arguments or positions taken in the proceedings could fairly be said to have
prevailed over the other party's major arguments or positions on major disputed
issues. The provisions of this SECTION 17(j) shall survive the Closing or
earlier termination of this Agreement.

         (k) HEADINGS; SECTION AND EXHIBIT REFERENCES. The section headings used
herein are for reference purposes only and do not control or affect the meaning
or interpretation of any term or provision hereof and shall not be deemed in any
manner to modify, explain, qualify or restate any of the provisions of this
Agreement. All references in this Agreement to sections and exhibits are to the
sections hereof and the exhibits attached hereto, respectively.

         (l) COUNTERPARTS. This Agreement may be executed in any number of
counterparts with the same effect as if all parties hereto had executed the same
document. All such counterparts shall be construed together and shall constitute
one instrument.

         (m) ASSIGNMENT. Neither party hereto may assign its respective rights
and obligations hereunder, in whole or in part, without the prior written
consent of the other party hereto. Any assignment without such prior written
consent shall be deemed null and void. Subject to and without limiting the
preceding two sentences, this Agreement shall bind and inure to the benefit of
the respective heirs, executors, administrators, personal representatives,
successors and assigns of the parties hereto.

                                       32

<PAGE>

Notwithstanding the foregoing, immediately prior to the Closing, Purchaser may
assign its rights under this Agreement, following written notice to Seller, to
any affiliated entity or to an entity with which Purchaser shall perform a
sale/leaseback transaction, a synthetic lease transaction or another similar
transaction provided that any such assignment shall not result in a violation of
ERISA.

         (n) NO WAIVER. The failure of any party hereto to enforce at any time
any of the provisions of this Agreement shall in no way be construed as a waiver
of any of such provisions, or the right of any party thereafter to enforce each
and every such provision. No waiver of any breach of this Agreement shall be
held to be a waiver of any other or subsequent breach.

         (o) NO OTHER PARTIES. The representations, warranties and agreements of
the parties contained herein are intended solely for the benefit of the parties
to whom such representation, warranties or agreements are made, shall confer no
rights hereunder, whether legal or equitable, in any other party, and no other
party shall be entitled to rely thereon.

         (p) CONSTRUCTION. This Agreement shall not be construed more strictly
against one party than against the other, merely by virtue of the fact that it
may have been drafted or prepared by counsel for one of the parties, it being
recognized that both Seller and Purchaser have contributed substantially and
materially to the preparation of this Agreement.

         (q) DUE AUTHORIZATION. Each party represents and warrants that the
individual and/or entity executing this Agreement on behalf of such party has
the capacity set forth on the signature pages hereof with full power and
authority to bind the party on whose behalf such individual and/or entity is
executing this Agreement to the terms hereof.

         (r) TIME OF THE ESSENCE. Time is of the essence in the performance of
and compliance with each of the provisions and conditions of this Agreement.

         (s) NO PARTNERSHIP. Notwithstanding anything to the contrary contained
herein, this Agreement shall not be deemed or construed to make the parties
hereto partners or joint venturers, or to render either party liable for any
debts or obligations of the other, it being the intention of the parties merely
to create the relationship of seller and purchaser with respect to the Property
to be conveyed as contemplated hereby.

         (t) CONFIDENTIALITY. Without limiting the provisions of the
Confidential-

                                       33

<PAGE>

ity Agreement, each of Seller and Purchaser agrees that it shall keep the
contents of this Agreement and the transactions contemplated hereby confidential
until February 7, 2000. Notwithstanding the foregoing, Seller and Purchaser may
disclose the contents of this Agreement and the transactions contemplated hereby
to their respective agents, representatives, employees, consultants and legal
counsel, and Purchaser also may disclose the contents of this Agreement and the
transactions contemplated hereby to (i) potential lenders, (ii) potential
parties who may participate in the ownership of the Property with Purchaser,
and (iii) potential parties who may participate in a lease, sale/leaseback or
sublease transaction of the Property with Purchaser.

         (u) RELEASE. By proceeding with this transaction following the
expiration of the Due Diligence Period and Closing the transaction, Purchaser
shall be deemed to have made its own independent investigation of the Property,
the Information and the presence of Hazardous Materials (hereinafter defined) on
the Property as Purchaser deems appropriate. Accordingly, subject to Seller's
Warranties, the covenants to be performed by Seller prior to the Closing as
expressly set forth in this Agreement and the satisfaction of Purchaser's
conditions to the Closing set forth in SECTION 5(a), Purchaser, on behalf of
itself and all of its officers, directors, shareholders, employees,
representatives and affiliated entities (collectively, the "RELEASORS") as of
the Closing, shall be deemed to, and shall have expressly waived and
relinquished any and all rights and remedies Releasors may now or hereafter have
against Seller, its successors and assigns, partners, shareholders, officer
and/or directors (the "SELLER PARTIES"), whether known or unknown, which may
arise from or be related to (i) the physical condition, quality, quantity and
state of repair of the Property and the prior management and operation of the
Property, (ii) the Information, (iii) the Property's compliance or lack of
compliance with any federal, state or local laws or regulations, and (iv) any
past, present or future presence or existence of Hazardous Materials on, under
or about the Property or with respect to any past, present or future violation
of any rules, regulations or laws, now or hereafter enacted, regulating or
governing the use, handling, storage or disposal of Hazardous Materials,
including, without limitation, (i) any and all rights and remedies Releasors may
now or hereafter have under the Comprehensive Environmental Response
Compensation and Liability Act of 1980 ("CERCLA"), the Superfund Amendments and
Reauthorization Act of 1986, the Resource Conservation and Recovery Act, the
Toxic Substance Control Act, Massachusetts General Laws, Chapter 21C and
Massachusetts General Laws, Chapter 21E, all as amended, and any similar state,
local or federal environmental law, rule or regulation, and (ii) any and all
claims, whether known or unknown, now or hereafter existing, with respect to the
Property under Section 107 of CERCLA (42 U.S.C.A. Section 9607). As used herein,
the teRM "HAZARDOUS MATERIAl(s)" includes, without limitation, any hazardous or
toxic materials substances or wastes, such as (1)

                                       34

<PAGE>

any materials, substances or wastes which are toxic, ignitable, corrosive or
reactive and which are regulated by any state or local governmental authority,
or any agency of the United States government, (2) any other material,
substance, or waste which is defined or regulated as a hazardous material,
extremely hazardous material, hazardous waste or toxic substance pursuant to
any laws, rules, regulations or orders of the United States government, or any
state or local governmental body, (3) asbestos, (4) petroleum and petroleum
based products, (5) formaldehyde, (6) polychlorinated biphenyls (PCBs), and (7)
freon and other chlorofluorocarbons. The provisions of this SECTION 17(u) shall
survive the Closing.

                  (v) Section 1031 Exchange. Seller may consummate the sale of
the Property as part of a so-called like kind exchange (the "EXCHANGE") pursuant
to Section 1031 of the Code, provided that any such exchange transaction, and
the related documentation, shall: (i) be at the sole cost and expense of Seller,
(ii) not require Purchaser to execute any contract, make any commitment, or
incur any obligations, contingent or otherwise, to third parties, (iii) not
cause Purchaser to be liable or potentially liable for any environmental
conditions affecting property other than the Property, (iv) not delay the
closing of the transaction contemplated by this Agreement, (v) not include
Purchaser's acquiring title to any property other than the Property or otherwise
becoming involved in a transaction with third party, and (vi) not otherwise be
contrary to or inconsistent with the terms of this Agreement. Notwithstanding
anything to the contrary contained herein, Purchaser is not to incur any, and
Seller shall reimburse, indemnify and hold Purchaser harmless from, any and all
costs, expenses and liabilities incurred solely from Purchaser's accommodation
of such tax deferred exchange, including, without limitation, reasonable
attorneys' fees, and any title or escrow fees or expenses. The obligations of
Seller and Purchaser under this SECTION 17(v) shall survive the Closing and
shall not be merged therein.

                  (w) WAIVER OF JURY TRIAL. To the extent permitted by
applicable law, the parties hereby waive any right to trial by jury in any legal
proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby.

                  (x) NO PERSONAL LIABILITY. Notwithstanding anything stated to
the contrary herein, Seller's liability under this Agreement shall be limited to
Seller's interest in the Property and the proceeds therefrom and neither Seller,
Seller's asset manager, nor Seller's partners, nor any member, director,
employee, or agent of any of the foregoing shall have any personal liability
hereunder. The provisions of this SECTION 17(x) shall survive the Closing or
earlier termination of this Agreement.

                                       35

<PAGE>

                  (y) REPORTING. Seller shall satisfy any reporting requirements
arising under Section 6405 of the Code. The provisions of this Section 17(y)
shall survive the Closing.

                          [SEE SIGNATURES ON NEXT PAGE]

                                       36

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed under seal as of the day and year first above written.

                                   SELLER:

                                   BEST PROPERTY FUND, L.P., a Delaware
                                   limited partnership

                                   By: BBS INVESTORS II, a Delaware general
                                       partnership, its general partner

                                   By: SCHREIBER DEVELOPMENTS, LLC,
                                       a California limited liability company, a
                                       general partner

                                       By: /s/ Charles J. Schreiber, Jr.
                                           ------------------------------
                                           Charles J. Schreiber, Jr.,
                                           Manager

                                       PURCHASER:

                                       PRAECIS PHARMACEUTICALS IN
                                       CORPORATED

                                       By: /s/ Malcolm L. Gefter
                                           ------------------------------
                                           Name:
                                           Title:

                                       37

<PAGE>

         Escrow Agent hereby acknowledges receipt of the Initial Downpayment,
subject to collection, and agrees to serve as escrow agent in accordance with
the provisions of this Agreement.

                                            OWN RUDNICK FREED & GESMER, P.C.

                                            By:  /s/ Edward S. Hershfield
                                                 ----------------------------
                                                 Edward S. Hershfield, Member

                                       38

<PAGE>

                      EXHIBIT A - LEGAL DESCRIPTION OF LAND

                                       39

<PAGE>

                                    EXHIBIT A

A certain parcel of land off Winter Street, in Waltham, Middlesex County,
Massachusetts, shown as Lot 9 on Land Court Plan No. 30618E, a copy of a portion
of which is filed with the Middlesex South Registry District of the Land Court
with Certificate of Title No. 214324 in Registration Book 1201, Page 174.

Together with the benefit of rights reserved in Easement dated July 14, 1997,
filed as Document No. 1036276, and recorded in Book 27478, Page 136; as affected
by Utility Easement from owners of Lots 2 and 3 on Land Court Plan #30618C and
Lots 2, 3, B and C on Plan #669 of 1997, to Boston Edison Company and New
England Telephone and Telegraph Company, d/b/a Bell Atlantic, dated August 27,
1998, filed as Document No. 1078157; as further affected by Reciprocal Access
and Utility Easement dated March 25, 1999, filed as Document No. 1101665 and
recorded March 26, 1999, as Instrument No. 503.

Together with the benefit of grant and reservation recited in Reciprocal Access
and Utility Easement with the owner of Lots 5 and 6 on Land Court Plan No.
30618D dated March 31, 1998, filed as Document No. 1061070, and recorded in Book
28405, Page 421, affecting areas shown as "Reserved Easement Area" on a plan
entitled "Easement Plan of Land in Waltham, Massachusetts," dated March 30,
1998, recorded therewith; as affected by First Amendment to Reciprocal Access
and Utility Easement and to Reciprocal Easement Agreement dated September 10,
1998, filed as Document No. 1079645, and recorded in Book 29108, Page 346; as
further affected by Reciprocal Access and Utility Easement dated March 25, 1999,
filed as Document No. 1101665 and recorded March 26, 1999, as Instrument No.
503, and by Reciprocal Easement Agreement dated March 25, 1999, filed as
Document No. 1101666.

Together with the benefit of Reciprocal Easement Agreement with the owner of
Lots 5 and 6 on Land Court Plan No. 30618D dated March 31, 1998, filed as
Document No. 1061071, and recorded in Book 28405, Page 443, affecting areas
shown on a plan entitled "Easement Plan of Land in Waltham, Massachusetts,"
dated March 30, 1998, recorded therewith; as affected by First Amendment to
Reciprocal Access and Utility Easement and to Reciprocal Easement Agreement
dated September 10, 1998, filed as Document No. 1079645, and recorded in Book
29108, Page 346; as further affected by Reciprocal Easement Agreement dated
March 25, 1999, filed as Document No. 1101666.

Together with the benefit of Reciprocal Easement Agreement with the owner of Lot
8 on Land Court Plan No. 30618E dated March 10, 1999, filed as Document
No. 1099963.

Together with the benefit of Reciprocal Access and Utility Easement Agreement
with the owner of Lot 8 on Land Court Plan No. 30618E dated March 10, 1999,
filed as Document No. 1099964, and recorded March 10, 1999, as Instrument No.
1121; as further affected by Reciprocal Access

                                       40

<PAGE>

                                EXHIBIT A (CONT.)

and Utility Easement dated March 25, 1999, filed as Document No. 1101665 and
recorded March 26, 1999, as Instrument No. 503.

Together with the benefit of Reciprocal Access and Utility Easement dated March
25, 1999, filed as Document No. 1101665 and recorded March 26, 1999, as
Instrument No. 503.

Together with the benefit of Reciprocal Easement Agreement dated March 25, 1999,
filed as Document No. 1101666.

Together with the benefit of Mutual Covenants agreement dated March 25, 1999,
filed as Document No. 1101667.

Together with the benefit of Landscape License Agreement dated March 25, 1999,
filed as Document No. 1101668.

                                       41

<PAGE>

                            EXHIBIT B - SELLER'S WORK

I.       DEFINITIONS

         The following terms shall have the meanings specified in this Section
when used in this EXHIBIT B (the meanings specified are applicable to both the
singular and plural):

         APPLICABLE LAWS" shall mean all applicable federal, state and local
laws, codes, ordinances, rules, regulations, standards or orders of any public
authority having jurisdiction over the Property, including building, health,
labor, safety, licensing, environmental or zoning laws, codes, ordinances,
rules, regulations, standards or orders of any such public authority.

         ARCHITECT" shall mean Jung/Brannen Associates, Inc., who shall be
responsible for the design of the Seller's Work on behalf of Seller, pursuant
to the Design Contract (as hereinafter defined).

         "CONSTRUCTION CONTRACT" shall mean the construction contract dated as
of April 13, 1999 by and between Seller or its affiliates or agents and the
Contractor for the construction of the Seller's Work, as such construction
contract may be amended from time to time; provided, however, that no such
amendment shall affect Contractor's warranties set forth therein.

         "CONTRACTOR" shall mean John Moriarty & Associates, Inc., the general
contractor who will be responsible for constructing the Seller's Work on behalf
of Seller pursuant to the Construction Contract.

         "DESIGN CONTRACT" shall mean the design contract entered into by and
between Seller or its affiliates or agents and the Architect for the design of
the Seller's Work, as such design contract may be amended; provided, however,
that no such amendment shall affect Architect's warranties set forth therein.

         "EVENT OF FORCE MAJEURE" shall mean labor disputes, fire, unusual
delays in deliveries, unavoidable conditions or other causes beyond the
Contractor's control, or other causes which the Architect determines may justify
delay. "PLANS AND SPECIFICATIONS" shall mean the drawings, plans and written
requirements prepared by the Architect or engineers or other consultants which
describe improvements to be constructed at the Property and which have been
delivered to Purchaser prior to the date of this Agreement, and which are listed
on SCHEDULE 1 hereto.

                                       42

<PAGE>

         "RECORD DRAWINGS" shall mean, collectively, the Plans and
Specifications, together with all Addenda (hereinafter defined) approved by
Seller, all Seller Initiated Change Orders (hereinafter defined) approved by
Seller and all Purchaser Initiated Change Orders (hereinafter defined) approved
by Seller.

         "SELLER'S WORK" shall mean all labor, materials, equipment and
services, or any portion thereof, that are indicated on or are reasonably
inferable from the Record Drawings, or that are required in accordance with any
Applicable Law now in effect including, but not limited to, all types and
quantities of components, items, systems, materials and methods of construction.

         "SUBCONTRACTOR" shall mean any subcontractor or supplier in privity
with the Contractor at any tier.

II.      SELLER'S DUTIES AND RESPONSIBILITIES

         Seller shall be responsible for the following duties and
responsibilities:

         1.       Seller shall oversee the Contractor who shall cause the
                  Seller's Work to be constructed in accordance with the Record
                  Drawings.

         2.       Seller shall provide construction and design administration
                  services and coordinate all portions of the Seller's Work
                  (provided that Seller shall not have responsibility for or
                  have control over the construction means, methods, techniques,
                  sequences and procedures affecting the Seller's Work).

         3.       Seller shall take all other actions reasonably necessary to
                  perform its obligations as set forth in this EXHIBIT B.

         4.       Seller shall oversee the efforts of the Contractor who shall
                  establish and implement adequate procedures for processing and
                  approval of shop drawings, product data, samples and other
                  submittals.

         5.       Seller shall oversee the efforts of the Contractor who shall
                  maintain appropriate record copies of all subcontracts,
                  drawings, specifications, Addenda, Seller Initiated Change
                  Orders, Purchaser Initiated Change Orders and other
                  modifications in good order. Seller shall monitor the efforts
                  of the Contractor who shall mark-up the Plans and
                  Specifications to reflect changes as they occur which shall be
                  turned over to Seller upon completion of the Seller's Work.

                                       43

<PAGE>

         6.       Seller shall monitor the Contractor's management of the
                  performance of Subcontractors.

         7.       Seller shall coordinate inspections by the Architect with the
                  Contractor.

         8.       Seller shall coordinate the efforts of Purchaser, the
                  Architect and the Contractor in Punch List compilation. Seller
                  shall monitor the efforts of the Contractor in the completion
                  of the Punch List items.

         9.       Seller shall secure from the Contractor all warranties and
                  guaranties for the benefit of Purchaser, manuals, Record
                  Drawings and keys upon final completion.

III.     INSPECTION AND ENTRY

         From and after the date of this Agreement, Purchaser and its agents
         shall have the right to enter onto the Property from time to time
         during construction to observe and inspect the Seller's Work; provided
         such entry shall be at the sole risk of Purchaser and that Seller shall
         not be liable in any way for any injury, loss or damage which may occur
         to any of the installations made or to property placed therein or for
         any delay in the delivery of the Property or the completion of the
         Seller's Work caused by such entry and installations. Purchaser shall
         cooperate with Seller in all respects and shall not interfere with
         construction activities of the Contractor in connection with the
         completion of the Seller's Work, and Purchaser shall immediately comply
         with any directive of Seller with respect to activities at the
         Property.

IV.      CHANGES IN THE WORK

         1.       ADDENDA AND SELLER INITIATED CHANGE ORDERS

         Seller may approve addenda and minor changes and substitutions, such as
         field changes to the Plans and Specifications (collectively, "ADDENDA")
         and may approve change orders to the Plans and Specifications proposed
         by Seller, Architect and/or Contractor ("SELLER INITIATED CHANGE
         ORDERS"); provided, however, that the same (A) do not modify the Plans
         and Specifications in any material respect, unless Purchaser has
         granted (or has been deemed to have granted) its prior written
         approval, which may be granted or withheld in Purchaser's sole
         discretion; (B) do not reduce the scope, quality, quantity, function or
         intent of Seller's Work as specified in the Plans and

                                       44

<PAGE>

         Specifications, unless Purchaser has granted its prior written
         approval, which may be granted or withheld in Purchaser's sole
         discretion; and (C) do not otherwise change the quality of the Seller's
         Work, unless Purchaser has granted (or has been deemed to have granted)
         its prior written approval, which approval shall not be unreasonably
         withheld or delayed. If Seller requests Purchaser's written approval
         pursuant to this SECTION (IV)(1), Purchaser shall respond to any such
         request within seven (7) days. If such response is a refusal to grant
         approval, it shall contain Purchaser's reasons for refusing to grant
         the requested approval. If Purchaser fails to respond to any such
         request for written approval within such seven (7) days period, as a
         result of such failure, Purchaser shall be deemed to have granted its
         prior written approval as requested by Seller.

         2.       PURCHASER INITIATED CHANGE ORDERS

         A.       Purchaser acknowledges that the Plans and Specifications do
                  not include tenant improvements, amenity spaces, signs,
                  directories, decorations, fixtures or other upgrades. Except
                  as otherwise provided herein, no extra work (including,
                  without limitation, increases in the scope of the Seller's
                  Work) or changes in the Seller's Work requested by Purchaser (
                  "PURCHASER'S INITIATED CHANGE") shall be made except in
                  accordance with a duly issued written change order authorizing
                  such Purchaser Initiated Change ("PURCHASER INITIATED CHANGE
                  ORDER"), notwithstanding the course of dealing between, or the
                  course of performance of, the parties or industry standards.
                  No work under a Purchaser Initiated Change Order shall be
                  carried out unless Seller has received funds from Purchaser to
                  fund any such Purchaser Initiated Change Order. Any such funds
                  shall be conclusively deemed to be fully earned when the work
                  to be performed pursuant to such Purchaser Initiated Change
                  Order is completed, and shall not be subject to refund or
                  offset under any other circumstances, unless Seller defaults
                  in its obligations under this Agreement. All Purchaser
                  Initiated Change Orders shall be executed in writing by
                  Purchaser and Seller and Seller may elect to execute or not
                  execute any such Purchaser Initiated Change Order, in Seller's
                  sole discretion, except that Seller shall not unreasonably
                  refuse to execute any such Purchaser Initiated Change Order
                  which (i) improves the Improvements; (ii) does not delay the
                  performance of the Seller's Work or require new licenses,
                  permits or approvals or resubmission or modification of
                  existing licenses, permits or approvals; and (iii) does not
                  require the

                                       45

<PAGE>

                  removal of any of the components of the Seller's Work in the
                  event the Improvements are used as an office building.

         B.       In connection with any Purchaser Initiated Change, Seller
                  shall submit, in writing, to Purchaser, a proposed Purchaser
                  Initiated Change Order for accomplishing such Purchaser
                  Initiated Change, which proposed Purchaser Initiated Change
                  Order shall reflect the change in the amount due to the
                  Contractor pursuant to the Construction Contract and in
                  addition shall indicate the additional construction time, if
                  any, due to such proposed Purchaser Initiated Change.
                  Purchaser shall respond to such proposed Purchaser Initiated
                  Change Order within five (5) days following receipt.

         V.       CHANGES IN SCHEDULE

                  1.       SCHEDULE

                  Seller has provided Purchaser with a construction schedule,
                  prepared by the Contractor, detailing the scheduling and
                  timing of the Seller's Work, and indicating a Final Completion
                  date prior to September 1, 2000 ( "SCHEDULE"), it being
                  understood that the Schedule shall be updated by Seller from
                  time to time to reflect the actual progress of construction.

         2.       SUBSTANTIAL COMPLETION

                  Seller shall provide Purchaser not less than sixty (60) days
                  prior written notice of the anticipated date of Final
                  Completion (hereinafter defined). When Seller has achieved
                  Substantial Completion (as defined in the Construction
                  Contract) of the Seller's Work, Seller shall cause the
                  Architect to issue a certificate of Substantial Completion
                  with a copy to Purchaser. No later than two (2) Business Days
                  following Purchaser's receipt of such certificate of
                  Substantial Completion, Purchaser and Seller shall jointly
                  inspect the Seller's Work with the Architect. No later than
                  three (3) Business Days after such inspection, the Architect
                  shall prepare a list of all purported nondeminimus
                  discrepancies between the Record Drawings and the Seller's
                  Work as constructed ( "PUNCH LIST"), and shall deliver such
                  list to Seller and Purchaser. If Seller or Purchaser contest
                  the inclusion of any item in, or the omission of any item
                  from, the Punch List, then during the next four (4) Business
                  Day period, Seller, Purchaser

                                       46

<PAGE>

                  and the Architect shall cooperate in good faith to finalize
                  the Punch List. In the event that despite such cooperation,
                  Seller, Purchaser and the Architect are unable to finalize the
                  Punch List, then any disputes regarding the inclusion of any
                  item in, or the omission of any item from, the Punch List
                  shall be determined as follows: (A) Disputes involving items
                  having a cumulative value, as estimated by the Architect, not
                  in excess of $25,000, shall be determined by the Architect
                  within five (5) Business Days following such four (4) Business
                  Day period. (B) Disputes involving items having a cumulative
                  value as estimated by the Architect, in excess of $25,000,
                  shall be determined within five (5) Business Days following
                  such four (4) Business Day period by Peter Barber, presently
                  of Northland Development Corporation ("INITIAL ARBITRATOR")
                  or Robert M. Keeley, presently of Diversified Project
                  Management ("SECONDARY ARBITRATOR"), if the Initial Arbitrator
                  is not available. The Architect shall submit matters to the
                  Initial Arbitrator or the Secondary Arbitrator. All decisions
                  of the Architect, Initial Arbitrator and Secondary Arbitrator
                  pursuant to this SECTION V(2) shall be binding and conclusive.
                  After the Punch List is finalized pursuant to this SECTION
                  V(2), Seller shall proceed to cause the Punch List to be
                  completed as soon as reasonably practicable after Substantial
                  Completion All costs and expenses incurred with respect to the
                  Initial Arbitrator or the Secondary Arbitrator shall be shared
                  equally between Seller and Buyer.

         3.       FINAL COMPLETION

                  Final completion of the Seller's Work shall mean the date on
                  which the last of the following shall have occurred:

                  (a)      The completion of the Punch List, as certified by the
                           Architect.

                  (b)      The submission to Purchaser by the Seller of the
                           Record Drawings for the Seller's Work, along with all
                           warranties and guaranties, manuals and keys.

                  (c)      The submission to Purchaser by the Seller of final
                           lien releases and waivers from the Contractor and, if
                           available, all major Subcontractors, which releases
                           and waivers may be conditioned on receipt of amounts
                           due from Seller upon final completion of the
                           Seller's Work.

                                       47

<PAGE>

                  (d)      The removal from the Property by Seller of temporary
                           facilities, tools and similar items.

                  (e)      The issuance by the City of Waltham of a core and
                           shell certificate of occupancy for the Seller's
                           Work.

         Upon Final Completion, Seller shall notify Purchaser of the Closing
         Date in accordance with Section 4 of the Agreement.

         VI.      FINAL COMPLETION DATE

                  A.       The Seller agrees to use commercially diligent
                           efforts to cause Final Completion of the Seller's
                           Work to be achieved on or before September 1, 2000,
                           subject to Events of Force Majeure and Purchaser
                           Initiated Change Orders.

                  B.       If Final Completion is not achieved on or before
                           September 1, 2000 (which date shall be extended for
                           up to sixty (60) days for each day that the
                           construction of the Seller's Work was delayed because
                           of an Event of Force Majeure which date also shall be
                           extended by one day for each day that the
                           construction of the Seller's Work was delayed due to
                           Purchaser Initiated Change Orders), then, as
                           Purchaser's sole remedy on account of such delay
                           (other than Purchaser's termination right set forth
                           in SECTION 4 of this Agreement) for each day
                           thereafter until Final Completion is achieved, the
                           Purchase Price shall be reduced by $5,000 per day,
                           provided, however, that if Purchaser shall elect not
                           to exercise its right to terminate this Agreement as
                           of December 31, 2000 (or such later date as Purchaser
                           shall have the right to terminate this Agreement on
                           account of Purchaser Initiated Change Orders), all as
                           described in Section 4 of this Agreement, then the
                           $5,000 per day reduction in the Purchase Price shall
                           be tolled for thirty (30) days following Purchaser's
                           election (or deemed election) not so to terminate
                           this Agreement. Purchaser shall not lose the benefit
                           of any Purchase Price reduction that already shall
                           have accrued, and the $5,000 per day reduction shall
                           recommence to accrue following such thirty (30) day
                           period if Seller shall not then have achieved Final
                           Completion of the Seller's Work.

                                       48

<PAGE>

                                  SCHEDULE 1 -

                            PLANS AND SPECIFICATIONS

                                       49

<PAGE>

                  PROJECT BULLETINS/CHANGES AND CLARIFICATIONS
                       TO PROJECT PLANS AND SPECIFICATIONS

<TABLE>
<CAPTION>

                BULLETIN
                 NUMBER    DATE              TO                           FROM                     REFERENCES AND ATTACHMENTS
                --------------------------------------------------------------------------------------------------------------------
<S>             <C>       <C>       <C>                           <C>                        <C>

SPECIFICATIONS

                          08/05/99                                John G.  Crowe Associates  Specifications - Base Building - Shell
                                                                                                & Core Only Vol.  1
                          08/05/99                                John G.  Crowe Associates  Specifications - Base Building - Shell
                                                                                                & Core Only Vol.  2
                          08/20/99                                John G.  Crowe Associates  Site Preparation Binder
                          08/23/99                                John G.  Crowe Associates  CD Set L1 - L10 (L6 revised 10/26/99)
ARCHITECTURAL

                    1     08/31/99  John Moriarty & Associates    Jung Brannen Associates    SKA - 2R (revised)
                    2     08/31/99  John Moriarty & Associates    Jung Brannen Associates    SKA - 3A, 3B, 3C, 3D
                    3     08/31/99  John Moriarty & Associates    Jung Brannen Associates    SKA - 4A, 4B, 4C
                    4     09/03/99  John Moriarty & Associates    Jung Brannen Associates    SKA - 5A, 5B, 5C
                    5     09/03/99  John Moriarty & Associates    Jung Brannen Associates    Faxed sketch from JMA
                    8     10/07/99  John Moriarty & Associates    Jung Brannen Associates    SKA - 8
                    9     10/22/99  John Moriarty & Associates    Jung Brannen Associates    None
                   10     10/25/99  John Moriarty & Associates    Jung Brannen Associates    SKS - 101499 - 1, 2, 3
                   11     10/27/99  John Moriarty & Associates    Jung Brannen Associates    SKA - 9; AHA Sketch dated 10/26/99
                   12     10/27/99  John Moriarty & Associates    Jung Brannen Associates    Superceded by bulletin #17
                   13     11/02/99  John Moriarty & Associates    Jung Brannen Associates    SKA - 11
                   14     11/22/99  John Moriarty & Associates    Jung Brannen Associates    None
                   15     12/01/99  John Moriarty & Associates    Jung Brannen Associates    P - 3 and P - 4 revision 2; 11/23/99
                   16     12/01/99  John Moriarty & Associates    Jung Brannen Associates    None
                   17     12/08/99  John Moriarty & Associates    Jung Brannen Associates    SKA - 10; SKE - 6 - 9 incl.;
                                                                                               SKH - 2 - 4 incl.; SKFP - 1 & 2
                 None     09/29/99                                Jung Brannen Associates    SKA - 7
ENGINEERS

                          10/18/99  Jung Brannen Associates       McNamara/Salvia            Sketches for canopy

                          11/05/99  Jung Brannen Associates/      McNamara/Salvia            Marked up plan showing corrected
                                      John Moriarty & Associates                               dimensions for the second floor
                                                                                               opening.
OTHER

                    A     09/09/99  John Moriarty & Associates    John G. Crowe Associates   SKL - 1 - 5
                    B     09/13/99  John Moriarty & Associates    John G. Crowe Associates   SKL - 6 - 9
                    C     09/13/99  John Moriarty & Associates    John G. Crowe Associates   SKL - 10 - 11
                    D     09/30/99  John Moriarty & Associates    John G. Crowe Associates   SKL - 12, 13
                    E     10/05/99  John Moriarty & Associates    John G. Crowe Associates   SKL - 14 - 19
                    F     10/05/99  John Moriarty & Associates    John G. Crowe Associates   SKL - 20 - 21
                    G     10/05/99  John Moriarty & Associates    John G. Crowe Associates   SKL - 22
                    H     11/10/99  John Moriarty & Associates    John G. Crowe Associates   SKL - 23 - 27
                    I     12/02/99  John Moriarty & Associates    John G. Crowe Associates   SKL - 28
                    J     01/05/00  John Moriarty & Associates    John G. Crowe Associates   SKL - 29 - 31

</TABLE>

                                      50

<PAGE>

<TABLE>
<CAPTION>

DWG            TITLE                                      DATED       REC'D       ISSUED BY             COMMENTS

<S>            <C>                                        <C>         <C>         <C>                   <C>
CIVIL
C-1            Title Sheet                                2-Apr-98    23-Aug-99   John G. Crowe
L-1            Existing Conditions Plan                   2-Apr-98    23-Aug-99   John G. Crowe
L-2            Existing Conditions Plan                   2-Apr-98    23-Aug-99   John G. Crowe
L-3            Proposed Grading & Material Plan           2-Apr-98    23-Aug-99   John G. Crowe
L-4            Proposed Drainage & Utility Plan           2-Apr-98    23-Aug-99   John G. Crowe
L-5            Proposed Layout Plan                       2-Apr-98    23-Aug-99   John G. Crowe
L-6            Site Planting Plan                         2-Apr-98    23-Aug-99   John G. Crowe
L-7            Site Details                               2-Apr-98    23-Aug-99   John G. Crowe
L-8            Site Details                               2-Apr-98    23-Aug-99   John G. Crowe
L-9            Site Details                               2-Apr-98    23-Aug-99   John G. Crowe
L-10           Site Details                               2-Apr-98    23-Aug-99   John G. Crowe
GENERAL NOTES:

               First set
               Second Set:  19-Jul-99
               Third Set:  23-Aug-99

ARCHITECTURAL

A-001          Drawing list, Abbreviations, Desig's,      27-May-99   5-Aug-99    Jung/Brannen
                 Notes, Symbols & Code Sum
A-100          Basement Plan                              27-May-99   5-Aug-99    Jung/Brannen
A-101          First Floor Plan                           27-May-99   5-Aug-99    Jung/Brannen
A-102          Second Floor Plan                          27-May-99   5-Aug-99    Jung/Brannen
A-103          Third Floor Key Plan                       27-May-99   5-Aug-99    Jung/Brannen
A-104          Roof Plan                                  27-May-99   5-Aug-99    Jung/Brannen
A-201          Building Elevations                        27-May-99   5-Aug-99    Jung/Brannen
A-202          Typ. Enlarged Building Elevation           27-May-99   5-Aug-99    Jung/Brannen
A-203          Enlarged Atypical building & Entrance      4-Jun-99    5-Aug-99    Jung/Brannen
                 Elevation
A-211          Building Sections                          27-May-99   4-Aug-99    Jung/Brannen          Not updated
A-301          Wall Sections                              27-May-99   5-Aug-99    Jung/Brannen
A-302          Wall Sections                              4-Jun-99    5-Aug-99    Jung/Brannen
A-401          Egress Stairs & Corridors:  Plans &        4-Jun-99    5-Aug-99    Jung/Brannen
                 Sections
A-402          Egress Stair Plans:  Sections & Details    4-Jun-99    5-Aug-99    Jung/Brannen
A-411          Elevator Core. Cabs & Machine Rm:          4-Jun-99    5-Aug-99    Jung/Brannen
                 Plans, Sections & Details

A-421          First Floor Bathrooms & Locker Rooms:      27-May-99   5-Aug-99    Jung/Brannen
                 Plans, RCP's & Elevations
A-422          Second & Third Floor Bathrooms:  RCP's     4-Jun-99    5-Aug-99    Jung/Brannen
                 & Elevations
A-431          Atrium/Lobby:  First Floor Plan            4-Jun-99    5-Aug-99    Jung/Brannen
A-432          Atrium/Lobby:  Second & Third Floor Plan   4-Jun-99    5-Aug-99    Jung/Brannen
A-433          Atrium/Lobby:  First Floor Reflected       4-Jun-99    5-Aug-99    Jung/Brannen
                 Ceiling Plan
A-434          Atrium/Lobby:  Second & Third Floor RCP    4-Jun-99    5-Aug-99    Jung/Brannen
A-435          Atrium/Lobby:  Skylight Plan & Section     4-Jun-99    5-Aug-99    Jung/Brannen
A-436          Atrium/Lobby:  Section/Elevation           4-Jun-99    5-Aug-99    Jung/Brannen
A-437          Atrium/Lobby:  Section/Elevation           16-Jul-99   5-Aug-99    Jung/Brannen
A-438          Atrium/Lobby:  Elevations                  16-Jul-99   5-Aug-99    Jung/Brannen
A-439          Atrium/Lobby:  Elevations                  16-Jul-99   16-Jul-99   Jung/Brannen          Not updated
A-441          Rear Entrance & Corridor                   4-Jun-99    5-Aug-99    Jung/Brannen
A-451          Building Conference & Cafe                 16-Jul-99   5-Aug-99    Jung/Brannen
A-501          Exterior Details                           27-May-99   5-Aug-99    Jung/Brannen
A-502          Exterior Details                           4-Jun-99    5-Aug-99    Jung/Brannen
A-503          Exterior Details                           5-Aug-99    5-Aug-99    Jung/Brannen
A-504          Exterior Details                           5-Aug-99    5-Aug-99    Jung/Brannen
A-601          Door & Hardware Schedule:  Door Frame      4-Jun-99    5-Aug-99    Jung/Brannen
                 types: Details

A-801          Finish Schedule                            4-Jun-99    5-Aug-99    Jung/Brannen
A-901          Interior/Exterior - Details                4-Jun-99    5-Aug-99    Jung/Brannen
A-902          Atrium/Lobby - Details                     16-Jul-99   5-Aug-99    Jung/Brannen
A-903          Interior/Exterior - Details                16-Jul-99   5-Aug-99    Jung/Brannen
A-904          Interior/Exterior - Details                16-Jul-99   5-Aug-99    Jung/Brannen
</TABLE>

                                       51

<PAGE>

<TABLE>
<CAPTION>

DWG            TITLE                                      DATED       REC'D       ISSUED BY             COMMENTS

<S>            <C>                                        <C>         <C>         <C>                   <C>
A-905          Atrium/Lobby - Details                     5-Aug-99    5-Aug-99    Jung/Brannen

STRUCTURAL

S-100          General Notes I                            27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-101          General Notes II                           27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-200          Basement Foundation Plan                   27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-201          First Floor Plan                           27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-202          Second Floor Plan                          27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-203          Third Floor Plan                           27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-204          Roof Plan                                  27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-300          Column Schedule                            27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-301          Brace Frame Elevations                     27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-400          Concrete Details I                         27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-401          Concrete Details II                        27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-402          Concrete Details III                       27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-403          Concrete Details IV                        27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-500          Steel Details I                            27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-501          Steel Details II                           27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-502          Steel Details III                          27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-503          Steel Details IV                           27-May-99   5-Aug-99    Jung/Brannen/MC/Sal
S-504          Steel Details V                            4-Jun-99    5-Aug-99    Jung/Brannen/MC/Sal

FIRE PROTECTION

FP-1           Fire Alarm System Legend Riser & Notes     4-Jun-99    5-Aug-99    AHA Consulting Eng.
FP-2           Fire Alarm Basement Plan                   4-Jun-99    5-Aug-99    AHA Consulting Eng.   5-Aug-99
FP-3           Fire Alarm First Floor Plan                4-Jun-99    5-Aug-99    AHA Consulting Eng.   5-Aug-99
FP-4           Fire Alarm Second Floor Plan               4-Jun-99    5-Aug-99    AHA Consulting Eng.
FP-5           Fire Alarm Third Floor Plan                4-Jun-99    5-Aug-99    AHA Consulting Eng.
FP-6           Enlarged Reflected Ceiling Plan            16-Jul-99   5-Aug-99    AHA Consulting Eng.

PLUMBING

P-1            Legends, Schedules & Diagrams              4-Jun-99    2-Sep-99    AHA Consulting Eng.   5-Aug-99
P-2            Buried Piping Plan                         4-Jun-99    2-Sep-99    AHA Consulting Eng.   5-Aug-99
P-3            Basement Plan                              4-Jun-99    2-Sep-99    AHA Consulting Eng.   5-Aug-99
P-4            First Floor Plan                           4-Jun-99    2-Sep-99    AHA Consulting Eng.   5-Aug-99
P-5            Second Floor Plan                          4-Jun-99    2-Sep-99    AHA Consulting Eng.   5-Aug-99
P-6            Third Floor Plan                           16-Jul-99   2-Sep-99    AHA Consulting Eng.   5-Aug-99
P-7            Roof  Plan                                 16-Jul-99   2-Sep-99    AHA Consulting Eng.   5-Aug-99
P-8            Riser Diagram                              16-Jul-99   2-Sep-99    AHA Consulting Eng.   5-Aug-99

GENERAL NOTES:
First set      4-Jun-99
Second Set     5-Aug-99

HVAC

H-1            HVAC Schedules, Notes and Legends          4-Jun-99    5-Aug-99    AHA Consulting Eng.
H-2            HVAC Details                               4-Jun-99    5-Aug-99    AHA Consulting Eng.
H-3            HVAC Basement Plan                         4-Jun-99    2-Sep-99    AHA Consulting Eng.
H-4            HVAC First Floor Plan                      4-Jun-99    5-Aug-99    AHA Consulting Eng.
H-5            HVAC Second Floor Plan                     4-Jun-99    5-Aug-99    AHA Consulting Eng.
H-6            HVAC Third Floor Plan                      4-Jun-99    5-Aug-99    AHA Consulting Eng.
H-7            HVAC Roof  Plan                            4-Jun-99    5-Aug-99    AHA Consulting Eng.

ELECTRICAL

E-1            Notes and Legands                          4-Jun-99    5-Aug-99    AHA Consulting Eng.
E-2            Lighting Fixture Schedule & Detail         4-Jun-99    5-Aug-99    AHA Consulting Eng.
E-3            Site Plan & Details                        4-Jun-99    5-Aug-99    AHA Consulting Eng.

</TABLE>

                                       52

<PAGE>

<TABLE>
<CAPTION>

DWG            TITLE                                      DATED       REC'D       ISSUED BY             COMMENTS

<S>            <C>                                        <C>         <C>         <C>                   <C>
E-4            Basement Lighting Plan                     4-Jun-99    9-Sep-99    AHA Consulting Eng.   5-Aug-99
E-5            Basement Power Plan                        4-Jun-99    2-Sep-99    AHA Consulting Eng.   5-Aug-99
E-6            First Floor Lighting Plan                  4-Jun-99    5-Aug-99    AHA Consulting Eng.
E-7            First Floor Power Plan                     4-Jun-99    5-Aug-99    AHA Consulting Eng.
E-8            Second Floor Lighting Plan                 4-Jun-99    5-Aug-99    AHA Consulting Eng.
E-9            Second Floor Power Plan                    4-Jun-99    4-Aug-99    AHA Consulting Eng.
E-10           Third Floor Lighting Plan                  4-Jun-99    5-Aug-99    AHA Consulting Eng.
E-11           Third Floor Power Plan                     4-Jun-99    5-Aug-99    AHA Consulting Eng.
E-12           Power Riser Diagram                        4-Jun-99    2-Sep-99    AHA Consulting Eng.   4-Jun-99
E-13           Electrical Schedules                       4-Jun-99    5-Aug-99    AHA Consulting Eng.
E-14           Electrical Schedules & Details             16-Jul-99   5-Aug-99    AHA Consulting Eng.

Specifications:

</TABLE>

                                       53

<PAGE>

                      EXHIBIT C -PERMITTED TITLE EXCEPTIONS

                  (a) Any and all present and future laws, regulations,
         restrictions, requirements, ordinances, resolutions and orders
         (including, without being limited to, any of the foregoing relating to
         zoning, building and environmental protection) as to the use,
         occupancy, subdivision or improvement of the Property adopted or
         imposed by any bureau, board, commission, legislature, department or
         other governmental body.

                  (b) The Contracts.

                  (c) Any state of facts existing as of the date of this
         Agreement which a personal inspection of the Property might disclose.

                  (d) Taxes, water charges, sewer rents and assessments, subject
         to adjustment as provided in this Agreement.

                  (e) Any lien or encumbrance encumbering the Property as to
         which Seller shall deliver to Purchaser, or Purchaser's title company,
         if any, at or prior to the Closing (or after the Closing in accordance
         with customary conveyancing practices), proper instruments, in
         recordable form, canceling such lien or encumbrance, together with any
         other instruments necessary thereto and the cost of recording and
         canceling the same.

                  (f) Variations between the tax lot lines and the record lines.

                  (g) Any Additional Exceptions that, pursuant to the terms of
         SECTION 10 of this Agreement, shall be or be deemed to be Permitted
         Title Exceptions.

                  (h) All matters set forth in First American Title Insurance
         Company Policy No. 20344472 other than those evidencing Financial
         Encumbrances.

                  (i) Proposed Easement and Maintenance Agreement between Seller
         and Massachusetts Wellness & Fitness, L.L.C.

                                        54

<PAGE>

                      EXHIBIT D - CONTRACTS AND AGREEMENTS

1.       Reciprocal Access and Utility Easement dated March 25, 1999 between
         Seller and Polaroid Corporation, filed with the South Registry District
         of Middlesex County as Document No. 1101665 and recorded with the
         Middlesex South District Registry of Deeds on March 26, 1999 as
         Instrument No. 503.

2.       Reciprocal Easement Agreement dated March 25, 1999 between Seller and
         Polaroid Corporation, filed with the South Registry District of
         Middlesex County as Document No. 1101666.

3.       Mutual Covenants agreement dated March 25, 1999 between Seller and
         Polaroid Corporation, filed with the South Registry District of
         Middlesex County as Document No. 1101667.

4.       Landscape License Agreement dated March 25, 1999 between Seller and
         Polaroid Corporation, filed with the South Registry District of
         Middlesex County as Document No. 1101668.

5.       Agreement regarding the apportionment of real estate taxes between
         Polaroid Corporation and Seller, a copy of which has been delivered to
         Purchaser.

                                       55

<PAGE>

                           EXHIBIT E - LIST OF PERMITS

                                       56

<PAGE>

/ /  Form A Approval - plans approved by City of Waltham Board of Survey and
     Planning 3/4/99

/ /  MEPA confirmation that no review is required - see advisory opinion from
     EOEA/MEPA office dated 3/5/99

/ /  DEP Division of Watershed Management - Negative Determination relative to
     the applicability of the NPDES program (i.e. proposed development does not
     constitute a storm water discharge within the ORW) - see letter dated
     7/2/99

/ /  Waltham Conservation Commission (Ch. 131) Negative Determination of
     Applicability - executed 7/6/99

/ /  DEP - Notification Prior to Construction or Demolition (7/16/99)

/ / City of Waltham Permit to Build - Site Preparation (7/12/99)

/ / City of Waltham Sewer Connection Permit

/ / City of Waltham Permit to Build - Construction of Office Building (8/25/99)

                                       57

<PAGE>

[Receipt of deposit of $1,000,000.00 into account of Brown, Rudnick, Freed &
Gesmer.

Photocopy of check in the amount of $1,000,000.00 from PRAECIS PHARMACEUTICALS
INCORPORATED to Brown, Rudnick, Freed & Gesmer signed by Malcolm L. Gefter and
Kevin F. McLaughlin.]

                                       58

<PAGE>

                            BEST PROPERTY FUND, L.P.
                         Bren Schreiber Properties, Inc.
                          125 Summer Street, Suite 1640
                                Boston, MA 02110

                                     January 14, 2000

PRAECIS PHARMACEUTICALS INCORPORATED
One Hampshire Street
Cambridge, MA  02139

Attention:  Mr. Kevin F. McLaughlin, Chief Financial Officer

RE:    LETTER AGREEMENT PURSUANT TO PROPERTY LOCATED AT 830 WINTER STREET,
       WALTHAM MA (THE "PROPERTY")

Dear Mr. McLaughlin:

                  Praecis Pharmaceuticals Incorporated ("Praecis") and Best
Property Fund, L.P. ("Best") have executed that certain Contract of Sale dated
January 14, 2000 (the "Contract") regarding the Property. Praecis and Best
mutually acknowledge the desirability of entering into a supplemental agreement
with respect to construction change orders by Praecis pursuant to current
construction being undertaken by Best at the Property.

                  The letter ("Letter Agreement") shall constitute an agreement
between Praecis and Best to proceed with reasonable diligence and good faith to
negotiate and execute a binding agreement pursuant to change orders (the "Change
Order Agreement") by February 7, 2000 ("Target Date"). The Change Order
Agreement may be a separate agreement or an amendment to the Contract as
determined by the parties. In no event shall failure of the parties to agree on
or enter into the Change Order Agreement serve to nullify, change, modify or
otherwise affect in any way the agreement between the parties in the Contract.

                                       BREN SCHREIBER PROPERTIES, INC., as agent
                                       for BEST PROPERTY FUND, L.P.

                                       By: /s/ D.S. Hall
                                           -------------------------------------
                                           Name:   David S. Hall
                                           Title:  Development Manager

                                       PRAECIS PHARMACEUTICALS, INCORPORATED

                                       By: /s/ Kevin McLaughlin
                                           -------------------------------------
                                            Name:   Kevin McLaughlin
                                            Title:  Senior Vice President &
                                                    Chief Financial Officer

CC:
E. Hershfield, Esq.
M. Glazer P.C.
L. Owens
M. Lentz
J. Kerrigan

<PAGE>

                       FIRST AMENDMENT TO CONTRACT OF SALE

         This first amendment ("FIRST AMENDMENT") is made as of February 7,
2000, by and among Best Property Fund, L.P., a Delaware limited partnership
("SELLER"); and Praecis Pharmaceuticals Incorporated, a Delaware corporation
("BUYER").

                               W I T N E S S E T H

         WHEREAS, Seller and Buyer have duly executed that certain Contract of
Sale dated as of January 14, 2000 in connection with certain property commonly
known as 830 Winter Street, Waltham, Massachusetts ("AGREEMENT"); and

         WHEREAS, Seller and Buyer desire to amend and modify the Agreement in
the manner set forth herein.

         NOW, THEREFORE, in consideration of the foregoing premises, and other
good and valuable consideration, the receipt and sufficiency of which hereby are
acknowledged, Seller and Buyer agree that the Agreement shall be and hereby is
amended as follows:

1.       EXHIBIT B of the Agreement is hereby deleted in its entirety and the
         "EXHIBIT B" attached hereto shall be substituted in its stead.

2.       Except as herein amended, the Agreement and all covenants, agreements,
         terms and conditions thereof shall remain and continue in full force
         and effect and hereby are in all respects ratified and confirmed.

3.       The covenants, agreements, terms and conditions of the First Amendment
         shall bind and inure to the benefit of the parties hereto and their
         respective successors and assigns.

4.       This First Amendment shall not be changed orally, but only by writing
         signed by the party against whom enforcement thereof is sought.

5.       This First Amendment may be executed in one or more counterparts, which
         collectively will constitute only one instrument.

                          [SEE SIGNATURES ON NEXT PAGE]

                                        2

<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed this instrument under
seal as of the date first above written.

                                       SELLER:

                                       BEST PROPERTY FUND, L.P., a Delaware
                                       limited partnership

                                       By: BBS INVESTORS II,  a Delaware general
                                           partnership, its general partner

                                       By: SCHREIBER
                                           DEVELOPMENTS, LLC, a California
                                           limited liability company, a
                                           general partner

                                           By: /s/ C.J. Schreiber
                                               ---------------------------------
                                               Charles J. Schreiber, Jr.
                                               Manager

                                       PURCHASER:

                                       PRAECIS PHARMACEUTICALS
                                       INCORPORATED

                                       By: /s/ Kevin F. Mclaughlin
                                           -------------------------------------
                                           Name:  Kevin F. McLaughlin
                                           Title:  Sr. V.P. and C.F.O.

                                        3

<PAGE>

                                    EXHIBIT B

                                  SELLER'S WORK

I.       DEFINITIONS

         The following terms shall have the meanings specified in this Section
when used in this EXHIBIT B (the meanings specified are applicable to both the
singular and plural):

         "APPLICABLE LAWS" shall mean all applicable federal, state and local
laws, codes, ordinances, rules, regulations, standards or orders of any public
authority having jurisdiction over the Property, including building, health,
labor, safety, licensing, environmental or zoning laws, codes, ordinances,
rules, regulations, standards or orders of any such public authority.

         "ARCHITECT" shall mean Jung/Brannen Associates, Inc., who shall be
responsible for the design of the Seller's Work on behalf of Seller, pursuant to
the Design Contract (as hereinafter defined).

         "CONSTRUCTION CONTRACT" shall mean the construction contract dated as
of April 13, 1999 by and between Seller or its affiliates or agents and the
Contractor for the construction of the Seller's Work, as such construction
contract may be amended from time to time; provided, however, that no such
amendment shall affect Contractor's warranties set forth therein.

         "CONTRACTOR" shall mean John Moriaty & Associates, Inc., the general
contractor who will be responsible for constructing the Seller"s Work on behalf
of Seller pursuant to the Construction Contract.

         "CORRECTION COSTS" shall mean all costs and expenses, including without
limitation, all hard costs; construction management fees, remobilization fees
and other soft costs; and lost rent (calculated on an assumed rental of $400,000
per month) that Seller reasonably estimates would be incurred or suffered by
Seller if a Major Purchaser Initiated Change (hereinafter defined) is carried
out, Purchaser then does not purchase the Property and Seller then must
reconstitute the Improvements as an office building in accordance with the Plans
and Specifications. Such costs and expenses shall include, without limitation,
Seller's reasonable estimate of (i) all costs and expenses which would result
from the required removal of certain non-reusable components of the Improvements
which were added as a result of the Major Purchaser Initiated Change; (ii) all
costs and expenses which would result from the reincorporation into the
Improvements of certain components of the work set forth in the Plans and
Specifications which were deleted from the

                                       4

<PAGE>

Seller's Work as a result of the Major Purchaser Initiated Change; and (iii) all
lost rent Seller would suffer, at an assumed rate of $400,000 per month from (x)
the date which is sixty (60) days after the date on which Seller reasonably
estimates the Seller's Work would have been Finally Completed (as hereinafter
defined) if no Purchaser Initiated Change Orders (hereinafter defined) had been
executed and (y) the date on which Seller reasonably estimates the
reconstitution of the Improvements as an office building in accordance with the
Plans and Specifications would be Finally Complete (assuming that such
reconstitution would not begin until the day after the date of the Closing set
forth in this Agreement). Notwithstanding the foregoing, the portion of any such
delay which also is the subject of a Letter of Credit shall not be included in
the calculation of Correction Costs.

         "DESIGN CONTRACT" shall mean the design contract entered into by and
between Seller or its affiliates or agents and the Architect for the design of
the Seller's Work, as such design contract may be amended; provided, however,
that no such amendment shall affect Architect's warranties set forth therein.

         "EVENT OF FORCE MAJEURE" shall mean labor disputes, fire, unusual
delays in deliveries, unavoidable conditions or other causes beyond the
Contractor's control which the Architect determines may justify delay.

         "LETTER OF CREDIT" shall mean a letter of credit on terms and from an
issuing bank(s) acceptable to Seller and which otherwise satisfies the
requirements set forth herein.

         If the Letter of Credit is being issued in connection with a Time
Extending Purchaser Initiated Change (hereinafter defined), and the Time
Extending Purchaser Initiated Change, together with any then executed Purchaser
Initiated Change Orders, would, in Seller's reasonable estimation, result in a
cumulative delay in the Final Completion of the Seller's Work of more than sixty
(60) days from the date on which Seller reasonably estimates the Seller's Work
would have been Finally Completed if no Purchaser Initiated Change Orders had
been executed, then the Letter of Credit shall be in an amount equal to the
product of $13,333.00 multiplied by the number of days that Seller reasonably
estimates the Final Completion of the Seller's Work would be so delayed beyond
such sixty (60) day period.

         If the Letter of Credit is being issued in connection with a Major
Purchaser Initiated Change, then the Letter of Credit shall be in an amount
equal to the Correction Costs; plus, if the Major Purchaser Initiated Change,
together with any then executed Purchaser Initiated Change Orders, would, in
Seller's reasonable estimation, result in a cumulative delay in the Final
Completion of the Seller's Work of more than sixty (60) days from the date on
which Seller reasonably estimates the Seller's Work would have been Finally
Completed if no Purchaser

                                       5

<PAGE>

Initiated Change Orders had been executed, then the amount of the Letter of
Credit shall be increased by an amount equal to the product of $13,333.00
multiplied by the number of days that Seller reasonably estimates that the Final
Completion of the Seller's Work would be so delayed beyond such sixty (60) day
period.

         If the Closing occurs in accordance with the terms of this Agreement,
each such Letter of Credit shall be returned to Purchaser. If Purchaser defaults
in its obligations to purchase the Property under this Agreement, which default
would entitle Seller to retain the Deposit as liquidated damages, then Seller
may draw upon each Letter of Credit, and any funds drawn thereunder shall not be
part of the Deposit or applied against any liquidated damages to be paid to
Seller, shall be conclusively deemed to be fully earned by Seller and shall not
be subject to refund or offset under any circumstances. Seller may not draw upon
any Letter of Credit except as set forth in the preceding sentence.

         "PLANS AND SPECIFICATIONS" shall mean the drawings, plans and written
requirements prepared by the Architect or engineers or other consultants which
describe improvements to be constructed at the Property and which have been
delivered to Purchaser prior to the date of this Agreement, and which are listed
on SCHEDULE 1 hereto.

         "RECORD DRAWINGS" shall mean, collectively, the Plans and
Specifications, together with all Addenda (hereinafter defined) approved by
Seller, all Seller Initiated Change Orders (hereinafter defined) approved by
Seller and all Purchaser Initiated Change Orders (hereinafter defined) approved
by Seller.

         "SELLER'S WORK" shall mean all labor, materials, equipment and
services, or any portion thereof, that are indicated on or are reasonably
inferable from the Record Drawings, or that are required in accordance with any
Applicable Law now in effect including, but not limited to, all types and
quantities of components, items, systems, materials and methods of construction.

         "SUBCONTRACTOR" shall mean any subcontractor or supplier in privity
with the contractor at any tier.

II.      SELLER'S DUTIES AND RESPONSIBILITIES

         Seller shall be responsible for the following duties and
responsibilities:

         1.       Seller shall oversee the Contractor who shall cause the
                  Seller's Work to be constructed in accordance with the Record
                  Drawings.

                                       6

<PAGE>

         2.       Seller shall provide construction and design administration
                  services and coordinate all portions of the Seller's Work
                  (provided that Seller shall not have responsibility for or
                  have control over the construction means, methods, techniques,
                  sequences and procedures affecting the Seller's Work).

         3.       Seller shall take all other actions reasonably necessary to
                  perform its obligations as set forth in this EXHIBIT B.

         4.       Seller shall oversee the efforts of the Contractor who shall
                  establish and implement adequate procedures for processing
                  and approval of shop drawings, product data, samples and other
                  submittals.

         5.       Seller shall oversee the efforts of the Contractor who shall
                  maintain appropriate record copies of all subcontracts,
                  drawings, specifications, Addenda, Seller Initiated Change
                  Orders, Purchaser Initiated Change Orders and other
                  modifications in good order. Seller shall monitor the efforts
                  of the Contractor who shall mark-up the Plans and
                  Specifications to reflect changes as they occur which shall be
                  turned over to Seller upon completion of the Seller's Work.

         6.       Seller shall monitor the Contractor's management of the
                  performance of Subcontractors.

         7.       Seller shall coordinate inspections by the Architect with the
                  Contractor.

         8.       Seller shall coordinate the efforts of Purchaser, the
                  Architect and the contractor in Punch List compilation. Seller
                  shall monitor the efforts of the Contractor in the completion
                  of the Punch List items.

         9.       Seller shall secure from the Contractor all warranties and
                  guaranties for the benefit of Purchaser, manuals, Record
                  Drawings and keys upon final completion.

III.     INSPECTION AND ENTRY

         From and after the date of this Agreement, Purchaser and its agents
shall have the right to enter onto the Property from time to time during
construction to observe and inspect the Seller's Work; provided such entry shall
be at the sole risk of Purchaser and that Seller shall not be liable in any way
for any injury, loss or damage which may occur to any of the installations made
or to property placed therein or for any delay in the delivery of the Property
or the completion of the Seller's Work caused by such entry and installations.
Purchaser shall cooperate with Seller in all

                                       7

<PAGE>

respects and shall not interfere with construction activities of the Contractor
in connection with the completion of the Seller's Work, and Purchaser shall
immediately comply with any directive of Seller with respect to activities at
the Property.

IV.      CHANGES IN THE WORK

         1.       ADDENDA AND SELLER INITIATED CHANGE ORDERS

         Seller may approve addenda and minor changes and substitutions, such as
field changes to the Plans and Specifications proposed by Seller, Architect
and/or Contractor (collectively, "ADDENDA") and may approve change orders to the
Plans and Specifications proposed by Seller, Architect and/or Contractor
("SELLER INITIATED CHANGE ORDERS"); provided, however, that the same (A) do not
modify the Plans and Specifications in any material respect, unless Purchaser
has granted (or has been deemed to have granted) its prior written approval,
which may be granted or withheld in Purchaser's sole discretion; (B) do not
reduce the scope, quality, quantity, function or intent of Seller's Work as
specified in the Plans and Specifications, unless Purchaser has granted (or has
been deemed to have granted) its prior written approval, which may be granted or
withheld in Purchaser's sole discretion; and (C) do not otherwise change the
quality of the Seller's Work, unless Purchaser has granted (or has been deemed
to have granted) its prior written approval, which approval shall not be
unreasonably withheld or delayed. If Seller requests Purchaser's written
approval pursuant to this SECTION (IV)(1), Purchaser shall respond to any such
request within seven (7) days. If such response is a refusal to grant approval,
it shall contain Purchaser's reasons for refusing to grant the requested
approval. If Purchaser fails to respond to any such request for written approval
within seven (7) days period, as a result of such failure, Purchaser shall be
deemed to have granted its prior written approval as requested by Seller.

         2.       PURCHASER INITIATED CHANGE ORDERS

                  A.       Purchaser acknowledges that the Plans and
                           Specifications do not include tenant improvements,
                           amenity spaces, signs, directories, decorations,
                           fixtures or other upgrades. Except as otherwise
                           provided herein, no extra work (including, without
                           limitation, increases in the scope of the Seller's
                           Work) or changes in the Seller's Work requested by
                           Purchaser ("PURCHASER INITIATED CHANGE") shall be
                           made except in accordance with a duly issued written
                           change order executed by Seller and Purchase
                           authorizing such Purchaser Initiated Change
                           ("PURCHASER INITIATED CHANGE ORDER"), notwithstanding
                           the course of dealing between, or the course of
                           performance of, the parties or industry standards.

                                       8

<PAGE>

                  B.       If Purchaser, from time to time, requests a Purchaser
                           Initiated Change, Purchaser shall send Seller a
                           written notice, setting forth, in reasonable detail,
                           the changes in the Plans and Specifications, and the
                           changes in the scope of the Seller's Work, which
                           would be required by the Purchaser Initiated Change
                           (each, a "PURCHASER INITIATED CHANGE NOTICE").

                  C.       Within ten (10) business days after Seller receives a
                           purchaser Initiated Change Notice, Seller shall send
                           Purchaser a written notice (each a "SELLER PIC
                           RESPONSE NOTICE") specifying whether, in Seller's
                           reasonable determination, the Purchaser Initiated
                           Change described in the Purchaser Initiated Change
                           Notice is a "MINOR PURCHASER INITIATED CHANGE"
                           (hereinafter defined), a "MAJOR PURCHASER INITIATED
                           CHANGE" or a "TIME EXTENDING PURCHASER INITIATED
                           CHANGE." Each Seller PIC Response Notice shall
                           specify the reasons for Seller's determination.

                           A "Minor Purchaser Initiated Change" shall mean a
                           Purchaser Initiated Change which Seller determines,
                           in its reasonable discretion, (i) will not involve
                           the incorporation into the Seller's Work of any
                           components which will have to be removed in the event
                           the Property is not purchased by Purchaser in order
                           to reconstitute the Improvements as an office
                           building in accordance with the Plans and
                           Specifications; (ii) will not delay the Final
                           Completion of the Seller's Work; (iii) will not
                           require new licenses, permits or approvals or the
                           resubmission or modification of existing licenses,
                           permits or approvals; and (iv) will not involve the
                           removal of any component of the work set forth in the
                           Plans and Specifications which will need to be
                           reincorporated into the Improvements in the event the
                           Property is not purchased by Purchaser.

                           A "Major Purchaser Initiated Change" shall mean a
                           Purchaser Initiated Change which Seller determines,
                           in its reasonable discretion, (i) will involve the
                           incorporation into the Seller's Work of any component
                           which will have to be removed in the event the
                           Property is not purchased by Purchaser in order to
                           reconstitute the Improvements as an office building
                           in accordance with the Plans and Specifications; or
                           (ii) will delay the Final Completion of the Seller's
                           Work; or (iii) will require new licenses, permits or
                           approvals or the resubmission or modification of
                           existing licenses, permits or approvals; or (iv) will
                           involve the removal of any component of the work set
                           forth in the Plans and Specifications which will need
                           to be

                                       9

<PAGE>

                           reincorporated into the Improvements in the event the
                           Property is not purchased by Purchaser.

                           A "Time Extending Purchaser Initiated Change" shall
                           mean a Purchaser Initiated Change which Seller
                           determines, in its reasonable discretion, will delay
                           the Final Completion of the Seller's Work, but (i)
                           will not involve the incorporation into the Seller's
                           Work of any component which will have to be removed
                           in the event the Property is not purchased by
                           Purchaser in order to reconstitute the Improvements
                           as an office building in accordance with the Plans
                           and Specifications; (ii) will not require new
                           licenses, permits or approvals or the resubmission or
                           modification of existing licenses, permits or
                           approvals; and (iii) will not involve the removal of
                           any component of the work set forth in the Plans and
                           Specifications which will need to be reincorporated
                           into the Improvements in the event the Property is
                           not purchased by Purchaser.

                  D.       If a Seller PIC Response Notice indicates that a
                           Purchaser Initiated Change is a Minor Purchaser
                           Initiated Change, then said Seller PIC Response
                           Notice shall be accompanied by a proposed Purchaser
                           Initiated Change Order, which shall reflect (i) any
                           change (positive or negative) in the amount due to
                           the Contractor pursuant to the Construction Contract
                           as a result of the Minor Purchaser Initiated Change;
                           and (ii) any additional funds to be paid by Purchaser
                           in connection with such Minor Purchaser Initiated
                           Change, including, without limitation, all increased
                           construction management fees and other soft costs to
                           be incurred by Seller in connection with such Minor
                           Purchaser Initiated Change.

                           If Purchaser receives such a proposed Purchaser
                           Initiated Change Order, then Purchaser may elect
                           either (i) to cause Seller to carry out the changes
                           in the Seller's Work authorized in such proposed
                           Purchaser Initiated Change Order by executing such
                           proposed Purchaser Initiated Change order and
                           returning it to Seller within five (5) business days
                           after receipt, together with good funds equal to the
                           total of any positive change in the amount due to the
                           Contractor on account of such Purchaser Initiated
                           Change Order and any additional funds to be paid to
                           Seller, or (ii) to withdraw the applicable Minor
                           Purchaser Initiated Change.

                           If Purchaser does not so execute and deliver the
                           Purchaser Initiated Change Order and said funds, then
                           Purchaser shall be deemed to have

                                       10

<PAGE>

                           withdrawn the applicable Minor Purchaser Initiated
                           Change. If Purchaser does so execute and deliver the
                           Purchaser Initiated Change Order and said funds,
                           then, upon receipt (y) Seller shall execute the
                           Purchaser Initiated Change Order, whereupon it shall
                           become effective, and (z) any funds paid to Seller
                           shall not be part of the Deposit or applied against
                           any liquidated damages to be paid to Seller, shall be
                           conclusively deemed to be fully earned by Seller when
                           the work to be performed pursuant to such Purchaser
                           Initiated Change Order is completed, and shall not be
                           subject to refund or offset under any other
                           circumstances, unless Seller defaults in its
                           obligations under this Agreement. If such Purchaser
                           Initiated Change Order indicates any negative change
                           in the amount due to the Contractor, then, at the
                           Closing, Purchase shall receive a credit against the
                           Purchase Price equal to such amount.

                  E.       If a Seller PIC Response Notice indicates that a
                           Purchaser Initiated Change is a Time Extending
                           Purchaser Initiated Change, then said Seller PIC
                           Response Notice either shall indicate that Seller has
                           elected, in its Sole discretion, not to carry out the
                           changes in the Seller's Work which would be required
                           by the Time Extending Purchaser Initiated Change or
                           shall be accompanied by a proposed Purchaser
                           Initiated Change Order. Any such proposed Purchaser
                           Initiated Change Order shall reflect (i) any change
                           (positive or negative) in the amount due to the
                           Contractor pursuant to the Construction Contract as a
                           result of the Time Extending Purchase Initiated
                           Change; (ii) any additional funds to be paid by
                           Purchaser in connection with such Time Extending
                           Purchaser Initiated Change, including, without
                           limitation, all increased construction management
                           fees and other soft costs to be incurred by Seller in
                           connection with such Time Extending Purchaser
                           Initiated Change; (iii) the delay in the Final
                           Completion of the Seller's Work which Seller
                           reasonably estimates will result from the Time
                           Extending Purchaser Initiated Change; and (iv)
                           whether a Letter of Credit must be provided in
                           connection with the Time Extending Purchaser
                           Initiated Change, and, if so, the amount of such
                           Letter of Credit. If Seller elects not to carry out
                           the Time Extending Purchaser Initiated Change, it
                           shall not be carried out.

                           If Purchaser receives such a proposed Purchaser
                           Initiated Change Order, then Purchaser may elect
                           either (i) to cause Seller to carry out the changes
                           in the Seller's work authorized in such proposed
                           Purchaser Initiated Change Order by executing such
                           proposed Purchaser Initiated Change

                                       11

<PAGE>

                           Order and returning it to Seller within five (5)
                           business days after receipt, together with good funds
                           equal to the total of any positive change in the
                           amount due to the Contractor on account of such
                           Purchaser Initiated Change Order and any additional
                           funds to be paid to Seller, and together with any
                           Letter of Credit to be provided in connection with
                           the Purchaser Initiated Change Order, or (ii) to
                           withdraw the applicable Time Extending Purchaser
                           Initiated Change.

                           If Purchaser does not so execute and deliver the
                           Purchaser Initiated Change Order, said funds and any
                           applicable Letter of Credit, then Purchaser shall be
                           deemed to have withdrawn the applicable Time
                           Extending Purchaser Initiated Change. If Purchaser
                           does so execute and deliver the Purchaser Initiated
                           Change Order, said funds and any applicable Letter of
                           Credit, then, upon receipt (x) Seller shall execute
                           the Purchaser Initiated Change Order, whereupon it
                           shall become effective, (y) any funds paid to Seller
                           shall not be part of the Deposit or applied against
                           any liquidated damages to be paid to Seller, shall be
                           conclusively deemed to be fully earned by Seller when
                           the work to be performed pursuant to such Purchaser
                           Initiated Change Order is completed, and shall not be
                           subject to refund or offset under any other
                           circumstances, unless Seller default in its
                           obligations under this Agreement, and (z) any Letter
                           of Credit and any funds resulting therefrom shall be
                           retained by Seller in accordance with the provisions
                           set forth in the definition of "Letter of Credit" in
                           this EXHIBIT B. If such Purchaser Initiated Change
                           Order indicates any negative change in the amount
                           due to the Contractor, then, at the Closing,
                           Purchaser shall receive a credit against the Purchase
                           Price equal to such amount.

                  F.       If a Seller PIC Response Notice indicates that a
                           Purchaser Initiated Change is a Major Purchaser
                           Initiated Change, then said Seller PIC Response
                           Notice either shall indicate that Seller has elected,
                           in its sole discretion, not to carry out the changes
                           in the Seller's Work which would be required by the
                           Major Purchaser Initiated Change (provided, however,
                           that this option to not carry out such changes only
                           shall be available to Seller if Seller determines, in
                           its reasonable discretion, that the Major Purchaser
                           Initiated Change will delay the Final Completion of
                           the Seller's Work or will require new licenses,
                           permits or approvals or the resubmission or
                           modification of existing licenses, permits or
                           approvals) or shall be accompanied by a proposed
                           Purchaser Initiated Change Order. If

                                       12

<PAGE>

                           Seller elects not to carry out the Major Purchase
                           Initiated Change Order, it shall not be carried out.
                           Any such Proposed Purchaser Initiated Change Order
                           shall reflect (i) any change (positive or negative)
                           in the amount due to the Contractor pursuant to the
                           Construction Contract as a result of the Major
                           Purchaser Initiated Change; (ii) any additional funds
                           to be paid by Purchaser in connection with such Major
                           Purchaser Initiated Change, including, without
                           limitation, all increased construction management
                           fees and other soft costs incurred by Seller in
                           connection with such Major Purchaser Initiated
                           Change; (iii) the delay, if any, in the Final
                           Completion of the Seller's Work which Seller
                           reasonably estimates will result from the Major
                           Purchaser Initiated Change; and (v) the amount of the
                           Letter of Credit to be provided in connection with
                           the Major Purchaser Initiated Change.

                           If Purchaser receives such a proposed Purchaser
                           Initiated Change Order, then Purchaser may elect
                           either (i) to cause Seller to carry out the changes
                           in the Seller's Work authorized in such proposed
                           Purchaser Initiated Change Order and returning it to
                           Seller within five (5) business days after receipt,
                           together with good funds equal to the total of any
                           positive change in the amount due to the Contractor
                           on account of such Purchaser Initiated Change Order
                           and any additional funds to be paid to Seller, and
                           together with the Letter of Credit to be provided in
                           connection with the Purchaser Initiated Change Order
                           or (ii) to withdraw the applicable Major Purchaser
                           Initiated Change.

                           If Purchaser does not execute and deliver the
                           Purchaser Initiated Change Order, said funds and the
                           applicable Letter of Credit, then Purchaser shall be
                           deemed to have withdrawn the applicable Major
                           Purchaser Initiated Change. If Purchaser does so
                           execute and deliver the Purchaser Initiated Change
                           Order, said funds and the applicable Letter of
                           Credit, then, upon receipt, (x) Seller shall execute
                           the Purchaser Initiated Change Order, whereupon it
                           shall become effective, (y) any funds paid to Seller
                           shall not be part of the Deposit or applied against
                           any liquidated damages to be paid to Seller, shall be
                           conclusively deemed to be fully earned by Seller when
                           the work to be performed pursuant to such Purchaser
                           Initiated Change Order is completed, and shall not be
                           subject to refund or offset under any other
                           circumstances, unless Seller defaults in its
                           obligations under this Agreement, and (z) the Letter
                           of Credit and any funds resulting therefrom, shall be
                           retained by Seller in accordance with the provisions
                           set forth in

                                       13

<PAGE>

                           the definition of "Letter of Credit" in this EXHIBIT
                           B. If such Purchaser Initiated Change Order indicates
                           any negative change in the amount due to the
                           Contractor, then, at the Closing, Purchaser shall
                           receive a credit against the Purchase Price equal to
                           such amount.

V.       CHANGES IN SCHEDULE

         1.       SCHEDULE

         Seller has provided Purchaser with a construction schedule, prepared by
the Contractor, detailing the scheduling and timing of the Seller's Work, and
indicting a Final Completion date prior to September 1, 2000 ("SCHEDULE"), it
being understood that the Schedule shall be updated by Seller from time to time
to reflect the actual progress of constructions.

         2.       SUBSTANTIAL COMPLETION

         Seller shall provide Purchaser not less than sixty (60) days prior
written notice of the anticipated date of Final Completion (herein defined).
When Seller has achieved Substantial Completion (as defined in the Construction
Contract) of the Seller's Work, Seller shall cause the Architect to issue a
certificate of Substantial Completion with a copy to Purchaser. No later than
two (2) Business Days following Purchaser's receipt of such certificate of
Substantial Completion, Purchaser and Seller shall jointly inspect the Seller's
Work with the Architect. No later than three (3) Business Days after such
inspection, the Architect shall prepare a list of all purported non-deminimus
discrepancies between the Record Drawings and the Seller's Work as constructed
("PUNCH LIST"), and shall deliver such list to Seller and Purchaser. If Seller
or Purchaser contest the inclusion of any item in, or the omission of any item
from, the Punch list, then during the next four (4) Business Day period, Seller,
Purchaser and the Architect shall cooperate in good faith to finalize the Punch
list. In the event that despite such cooperation, Seller, Purchaser and the
Architect are unable to finalize the Punch List, then any disputes regarding the
inclusion of any item in, or the omission of any item from, the Punch List shall
be determined as follows: (A) disputes involving items having a cumulative
value, as estimated by the Architect, not in excess of $25,000, shall be
determined by architect within five (5) Business Days following such four (4)
Business Day period. (B) Disputes involving items having a cumulative value as
estimated by the Architect, in excess of $25,000, shall be determined within
five (5) Business Days following such four (4) Business Day period by Peter
Barber, presently of Northland Development Corporation ("INITIAL ARBITRATOR")
or Robert M. Keeley, presently of Diversified Project Management ("SECONDARY
ARBITRATOR"), if the Initial Arbitrator is not available. The architect shall
submit matters to the Initial Arbitrator and Secondary Arbitrator. All decisions
of the Architect, Initial Arbitrator and Secondary Arbitrator pursuant to this
SECTION V(2) shall be

                                       14

<PAGE>

binding and conclusive. After the Punch List is finalized pursuant to this
SECTION V(2), Seller shall proceed to cause the Punch List to be completed as
soon as reasonably practicable after Substantial Completion. All costs and
expenses incurred with respect to the Initial Arbitrator or the Secondary
Arbitrator shall be shared equally between Seller and Buyer.

         3.       FINAL COMPLETION

         "Final Completion" (and derivations thereof) of the Seller's Work shall
mean the date on which the last of the following shall have occurred:

         (a)      The completion of the Punch List, as certified by the
                  Architect.

         (b)      The submission to Purchaser by the Seller of the Record
                  Drawings for the Seller's Work, along with all warranties and
                  guaranties, manuals and keys.

         (c)      The submission to Purchaser by the Seller of final lien
                  releases and waivers from the Contractor and, if available,
                  all major Subcontractors, which releases and waivers may be
                  conditioned on receipt of amounts due from Seller upon final
                  completion of the Seller's Work.

         (d)      The removal from the Property by Seller of temporary
                  facilities, tools and similar items.

         (e)      The issuance by the City of Waltham of a core and shell
                  certificate of occupancy for the Seller's Work.

         Upon Final Completion, Seller shall notify Purchaser of the Closing
Date in accordance with SECTION 4 of the Agreement.

VI.      FINAL COMPLETION DATE

                  A.       The Seller agrees to use commercially diligent
                           efforts to cause Final Completion of the Seller's
                           Work to be achieved on or before September 1, 2000,
                           subject to Events of Force Majeure and Purchaser
                           Initiated Change Orders.

                  B.       If Final Completion is not achieved on or before
                           September 1, 2000 (which date shall be extended for
                           up to sixty (60) days for each day that the
                           construction of the Seller's Work was delayed because
                           of an Event of

                                       15

<PAGE>

                           Force Majeure and which date also shall be extended
                           by one day for each day that the construction of the
                           Seller's Work was delayed due to Pur chaser Initiated
                           Orders), then, as Purchaser's sole remedy on account
                           of such delay (other than Purchaser's termination
                           right set forth in SECTION 4 of this Agreement) for
                           each day thereafter until Final Completion is
                           achieved, the Purchase Price shall be reduced by
                           $5,000 per day, provided, however, that if Purchaser
                           shall elect not to exercise its right to terminate
                           this Agreement as of December 31, 2000 (or such later
                           date as Purchaser shall have the right to terminate
                           this Agreement on account of Purchaser Initiated
                           Change Orders), all as described in SECTION 4 of this
                           Agreement, then the $5,000 per day reduction in the
                           Purchase Price shall be tolled for thirty (30) days
                           following Purchaser's election (or deemed election)
                           not so to terminate this Agreement. Purchaser shall
                           not lose the benefit of any Purchase Price reduction
                           that already shall have accrued, and the $5,000 per
                           day reduction shall recommence to accrue following
                           such thirty (30) day period if Seller shall not then
                           have achieved Final Completion of the Seller's Work.<PAGE>

                                                                EXHIBIT 10.1

                          AGREEMENT AND PLAN OF MERGER

                                      AMONG

                             VEECO INSTRUMENTS INC.,

                             VEECO ACQUISITION CORP.

                                       AND

                                    CVC, INC.

                                FEBRUARY 29, 2000

                                        1

<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

                                                                                   PAGE
                                                                                   ----
<S>                                                                                  <C>
I.       DEFINITIONS..................................................................1
         1.01 Certain Definitions.....................................................1

II.      THE MERGER..................................................................11
         2.01 The Merger.............................................................11
         2.02 Effective Time of the Merger...........................................11
         2.03 Closing of the Merger..................................................11
         2.04 Effects of the Merger..................................................12
         2.05 Conversion of Shares...................................................12
         2.06 Closing of the Company's Transfer Books................................13
         2.07 Exchange of Certificates...............................................14
         2.08 Tax Consequences.......................................................15
         2.09 Accounting Consequences................................................15
         2.10 Further Action.........................................................16
         2.11 Subsequent Action......................................................16

III.     REPRESENTATIONS AND WARRANTIES OF THE COMPANY...............................16
         3.01 Due Organization; Subsidiaries; Etc....................................16
         3.02 Capitalization.........................................................17
         3.03 Authorization..........................................................17
         3.04 Reports................................................................18
         3.05 No Undisclosed Liabilities.............................................18
         3.06 Compliance with Law; Governmental Authorizations.......................18
         3.07 No Conflicts...........................................................19
         3.08 Contracts..............................................................19
         3.09 Litigation.............................................................21
         3.10 Taxes..................................................................21
         3.11 Absence of Certain Changes.............................................22
         3.12 Employee Benefit Plans.................................................23
         3.13 Intellectual Property..................................................26
         3.14 Environmental Matters..................................................29
         3.15 Labor Relations........................................................30
         3.16 Brokers and Finders....................................................31
         3.17 Accuracy of Representations and Warranties.............................31
         3.18 Pooling of Interests; Reorganization...................................31
         3.19 Board of Recommendation................................................31
         3.20 Fairness Opinion.......................................................31
         3.21 State Antitakeover Statutes............................................31
</TABLE>

                                       ii

<PAGE>
<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                                 <C>
IV.      REPRESENTATIONS AND WARRANTIES OF VEECO AND ACQUISITION.....................32
         4.01 Organization of Veeco and Acquisition..................................32
         4.02 Capitalization.........................................................33
         4.03 Non-Contravention......................................................33
         4.04 Reports................................................................34
         4.05 Absence of Certain Changes.............................................34
         4.06 No Undisclosed Liabilities.............................................35
         4.07 Litigation.............................................................35
         4.08 Restrictions on Business Activities....................................35
         4.09 Governmental Authorization.............................................35
         4.10 Taxes..................................................................35
         4.11 Pooling of Interests; Reorganization...................................36
         4.12 Brokers and Finders....................................................36
         4.13 Accuracy of Representations and Warranties.............................36
         4.14 Board Recommendation...................................................36
         4.15 Fairness Opinion.......................................................37
         4.16 Compliance With Laws...................................................37
         4.17 Environmental Matters..................................................37
         4.18 Intellectual Property Rights...........................................38

V.       COVENANTS...................................................................40
         5.01 Access.................................................................40
         5.02 Conduct of the Business of the Parties Pending the Closing Date........40
         5.03 Conduct of Business of the Company and Veeco...........................41
                          (a) Charter Documents......................................41
                          (b) Dividends; Changes in Capital Stock....................41
                          (c) Pooling; Reorganization................................42
                          (d). Other.................................................42
         5.04 Consents...............................................................42
         5.05 Stock Options..........................................................43
         5.06 Employee Benefits......................................................44
         5.07 Indemnification of Officers and Directors..............................44
         5.08 Pooling of Interests...................................................45
         5.09 Environmental Transfer Laws............................................45
         5.10 Tax Matters............................................................45
         5.11 Letters of the Parties' Accountants....................................46
         5.12 Listing................................................................46
         5.13 Board of Directors; Whitman Employment Agreement.......................47
         5.14 Notice of Breach; Disclosure...........................................47
         5.15 Payment of Indebtedness by Affiliates..................................47
         5.16 No Solicitation -- Company.............................................47
         5.17 No Solicitation -- Veeco...............................................49
</TABLE>

                                       iii

<PAGE>
<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----

<S>                                                                                  <C>
         5.18 Blue Sky Laws..........................................................50
         5.19 Additional Agreements..................................................50
         5.20 Disclosure.............................................................50
         5.21 Affiliate Agreements...................................................51
         5.22 Registration Statement; Joint Proxy Statement..........................51
         5.23 Company Stockholders' Meeting..........................................52
         5.24 Veeco Stockholders' Meeting............................................53

VI.      CONDITIONS PRECEDENT TO THE OBLIGATIONS OF THE PARTIES .....................54

VII.     CONDITIONS PRECEDENT TO VEECO'S AND ACQUISITION'S
         OBLIGATIONS.................................................................55
         7.01 Representations and Warranties.........................................55
         7.02 Performance of Covenants...............................................55
         7.03 Consents...............................................................55
         7.04 Agreements and Documents...............................................55
         7.05 Material Adverse Effect................................................56
         7.06 Registration Rights Agreement..........................................56

VIII.    CONDITIONS PRECEDENT TO OBLIGATIONS OF THE COMPANY..........................56
         8.01 Representations and Warranties.........................................56
         8.02 Performance of Covenants...............................................57
         8.03 Consents and Approvals.................................................57
         8.04 Material Adverse Effect................................................57
         8.05 Documents..............................................................57

IX.      TERMINATION.................................................................57
         9.01 Termination............................................................57
         9.02 Effect of Termination..................................................59
         9.03 Expenses; Termination Fees.............................................59

X.       MISCELLANEOUS...............................................................61
         10.01 Successors............................................................61
         10.02 Amendment.............................................................61
         10.03 Waiver................................................................61
         10.04 No Survival of Representations and Warranties; Survival of Tax
         Comments....................................................................61
         10.05 Entire Agreement; Counterparts........................................62
         10.06 Governing Law.........................................................62
         10.07 Disclosure Schedules..................................................62
         10.08 Attorneys' Fees.......................................................62
         10.09 Assignment............................................................62
         10.10 Notices...............................................................62
         10.11 Headings..............................................................63
</TABLE>

                                       iv

<PAGE>
<TABLE>
<CAPTION>

                                                                            PAGE
                                                                            ----

<S>                                                                                <C>
         10.12 Exhibits and Schedules...............................................63
         10.13 Severability.........................................................64
         10.14 No Third-Party Beneficiaries.........................................64

EXHIBITS
--------

Exhibit A      Company Stockholder Voting Agreement
Exhibit B      Veeco Stockholder Voting Agreement
Exhibit C      Certificate of Merger
Exhibit D      Whitman Employment Agreement
Exhibit E      Form of Company Affiliate Agreement
Exhibit F      Form of Veeco Affiliate Agreement

SCHEDULES
---------

Schedule A     Company Stockholders Subject to Company Stockholder Voting Agreement
Schedule B     Veeco Stockholders Subject to Veeco Stockholder Voting Agreement
Schedule C     Company Affiliates
Schedule D     Veeco Affiliates
Schedule E     Officers of Acquisition Immediately Prior to the Effective Time
</TABLE>

                                        v

<PAGE>

                          AGREEMENT AND PLAN OF MERGER

     This AGREEMENT AND PLAN OF MERGER (this "MERGER AGREEMENT"), is made as of
February 29, 2000, by and among Veeco Instruments Inc., a Delaware corporation
("VEECO"), Veeco Acquisition Corp., a Delaware corporation and a newly-formed
wholly-owned first tier subsidiary of Veeco ("ACQUISITION"), and CVC, Inc., a
Delaware corporation (the "COMPANY").

     WHEREAS, The Boards of Directors of the Company, Acquisition and Veeco have
determined that it is advisable and in the best interests of their respective
stockholders for Acquisition to merge with and into the Company, with the result
that the Company shall be the surviving corporation and shall become a
wholly-owned subsidiary of Veeco (the "MERGER"), all upon the terms and
conditions set forth herein and in accordance with the provisions of the
Delaware General Corporation Law (the "DGCL").

     WHEREAS, Veeco has entered into that certain Voting Agreement in the form
attached hereto as EXHIBIT A (the "COMPANY STOCKHOLDER VOTING AGREEMENT"), dated
as of the date hereof, with the stockholders of the Company listed on SCHEDULE A
to this Merger Agreement. Pursuant to the Company Stockholder Voting Agreement,
such stockholders of the Company have granted to Veeco irrevocable proxies to
vote the shares of Company Common Stock (as defined) held by them in favor of
approving this Merger Agreement, the Merger and the other transactions
contemplated hereby, and against any action, any failure to act, or agreement
that would result in a breach of any covenant, representation or agreement of
the Company under this Merger Agreement.

     WHEREAS, the Company has entered into that certain Voting Agreement in the
form attached hereto as EXHIBIT B (the "VEECO STOCKHOLDER VOTING AGREEMENT"),
dated as of the date hereof, with the stockholders of Veeco listed on SCHEDULE B
to this Merger Agreement. Pursuant to the Veeco Stockholder Voting Agreement,
such stockholders of Veeco have granted to the Company irrevocable proxies to
vote the Veeco Shares (as defined) held by them in favor of approving this
Merger Agreement, the Merger and the other transactions contemplated hereby, and
against any action, any failure to act, or agreement that would result in a
breach of any covenant, representation or agreement of Veeco under this Merger
Agreement.

     WHEREAS, the Merger is intended to qualify as a reorganization, as
described in Section 368(a) of the Code (as defined below).

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

I. DEFINITIONS.

     1.01 CERTAIN DEFINITIONS. For purposes of this Merger Agreement, the
following terms shall have the following meanings:

<PAGE>
     "ACQUIRED CORPORATIONS" shall mean the Company, together with each of its
Subsidiaries.

     "ACQUISITION" shall have the meaning set forth in the introductory
paragraph of this Merger Agreement.

     "AFFILIATE" of any Person shall mean a Person which, directly or indirectly
through one or more intermediaries, controls, or is controlled by, or is under
common control with, such Person.

     "BENEFIT PLANS" shall have the meaning set forth in Section 3.12(a).

     "CERTIFICATE OF MERGER" shall have the meaning set forth in Section 2.02.

     "CLOSING" shall have the meaning set forth in Section 2.03.

     "CLOSING DATE" shall have the meaning set forth in Section 2.03.

     "CLOSING PRICE PER SHARE" shall mean the closing price per Veeco Share as
reported by the NASDAQ on the trading day immediately preceding the Closing
Date.

     "COBRA" shall have the meaning set forth in Section 3.12(g).

     "CODE" shall mean the Internal Revenue Code of 1986, as amended, and the
rules and regulations promulgated thereunder.

     "COMPANY" shall have the meaning set forth in the introductory paragraph to
this Merger Agreement.

     "COMPANY ACQUISITION PROPOSAL" shall mean any offer, proposal, inquiry or
indication of interest (other than an offer, proposal, inquiry or indication of
interest by Veeco) contemplating or otherwise relating to any Company
Acquisition Transaction.

     "COMPANY ACQUISITION TRANSACTION" shall mean any transaction or series of
transactions involving:

     (a) any merger, consolidation, share exchange, business combination,
issuance of securities, acquisition of securities, tender offer, exchange offer
or other similar transaction (i) in which such the Company or any other Acquired
Corporation is a constituent corporation, (ii) in which a Person or "group" (as
defined in the Exchange Act and the rules promulgated thereunder) of Persons
directly or indirectly acquires beneficial or record ownership of securities
representing more than 20% of the outstanding securities of any class of voting
securities of the Company or another Acquired Corporation, or (iii) in which the
Company or an Acquired Corporation issues

                                        2

<PAGE>

securities representing more than 20% of the outstanding securities of any class
of voting securities of the Company or such Acquired Corporation;

     (b) any sale, lease, exchange, transfer, license, acquisition or
disposition of any business or businesses or assets that constitute or account
for 20% or more of the consolidated net revenues, net income or assets of the
Company or any other Acquired Corporation; or

     (c) any liquidation or dissolution of the Company or any other Acquired
Corporation.

     "COMPANY AFFILIATE" shall have the meaning set forth in Section 5.21(a).

     "COMPANY AFFILIATE AGREEMENT" shall have the meaning set forth in Section
5.21(a).

     "COMPANY AGENT" shall have the meaning set forth in Section 3.13(h).

     "COMPANY BOARD RECOMMENDATION" shall have the meaning set forth in Sec-
tion 5.23(b).

     "COMPANY BROKER" shall have the meaning set forth in Section 3.16.

     "COMPANY COMMON STOCK" shall mean the common stock of the Company, par
value $0.01 per share.

     "COMPANY DISCLOSURE SCHEDULE" shall mean the disclosure schedule that has
been prepared by the Company in accordance with the requirements of Section 9.07
hereof and that has been delivered by the Company to Veeco on the date of this
Merger Agreement and signed by the President of the Company.

     "COMPANY FINANCIAL STATEMENTS" shall have the meaning set forth in Section
3.04.

     "COMPANY INTELLECTUAL PROPERTY" shall have the meaning set forth in
Section 3.13(a).

     "COMPANY-OWNED IP" shall have the meaning set forth in Section 3.13(g).

     "COMPANY-OWNED IP REGISTRATIONS" shall have the meaning set forth in

Section 3.13(e).

     "COMPANY SEC DOCUMENTS" shall mean each statement, report, registration
statement (including the related prospectus in the form filed pursuant to Rule
424(b) of the Securities Act) and definitive proxy statement, and all other
filings filed with the SEC by the Company since November 12, 1999 and prior to
the Effective Time.

                                        3

<PAGE>

     "COMPANY STOCK CERTIFICATE shall have the meaning set forth in Section
2.06.

     "COMPANY STOCKHOLDER'S MEETING" shall have the meaning set forth in Sec-
tion 5.23(a).

     "COMPANY STOCKHOLDER VOTING AGREEMENT" shall have the meaning set forth in
the second WHEREAS clause to this Merger Agreement.

     "COMPANY TRIGGERING EVENT" shall be deemed to have occurred if: (i) the
Board of Directors of the Company shall have failed to recommend that the
Company's stockholders vote to adopt this Merger Agreement, or shall have
withdrawn or modified in a manner adverse to Veeco the Company Board
Recommendation; (ii) the Company shall have failed to include in the Joint Proxy
Statement, the Company Board Recommendation or a statement to the effect that
the Board of Directors of the Company has determined and believes that the
Merger is in the best interests of the Company's stockholders; (iii) the Board
of Directors of the Company shall have approved, endorsed or recommended any
Company Acquisition Proposal; (iv) the Company shall have entered into any
letter of intent or similar document or any Contract relating to any Company
Acquisition Proposal; (v) the Company shall have failed to hold the Company
Stockholders' Meeting as promptly as practicable and in any event within 45 days
after the Form S-4 Registration Statement is declared effective under the
Securities Act, unless a stop order shall have been issued by the SEC with
respect to the S-4 Registration Statement or an injunction shall have been
issued by a court of competent jurisdiction or other appropriate Governmental
Authority to restrain or prohibit the consummation of the Merger; or (vi) any of
the Acquired Corporations or any Representative of any of the Acquired
Corporations shall have violated in a material manner any of the restrictions
set forth in Section 5.16.

     "CONFIDENTIAL COMPANY IP INFORMATION" shall have the meaning set forth in
Section 3.13(k).

     "CONSENT" shall mean any approval, consent, ratification, permission,
waiver or authorization (including any License or governmental authorization).

     "CONSTITUENT CORPORATIONS" shall have the meaning set forth in Section
2.01.

     "CONTINUING EMPLOYEES" shall have the meaning set forth in Section 5.06.

     "CONTRACT" shall mean any agreement, arrangement, commitment, indemnity,
indenture, instrument or lease, including any and all amendments, supplements,
and modifications (whether oral or written) thereto, whether or not in writing.

     "DGCL" shall have the meaning set forth in the first WHEREAS clause to this
Merger Agreement.

     "EFFECTIVE TIME" shall have the meaning set forth in Section 2.02.

                                        4

<PAGE>

     "ENVIRONMENT" shall mean the soil, land surface or subsurface strata,
surface waters (including navigable waters, ocean waters, streams, ponds,
drainage basins and wetlands), groundwaters, drinking water supply, stream
sediments; ambient air (including indoor air), plant and animal life, and any
other environmental medium or natural resource.

     "ENVIRONMENTAL LAWS" shall mean any state, federal or local laws,
ordinances, codes, regulations, statutes, orders, judgments, decrees, permits or
licenses relating to pollution, natural resources, protection of the Environment
or public health and safety, including, without limitation, laws and regulations
relating to the use, treatment, storage, release, disposal or transportation of
Hazardous Substances or the handling and disposal of medical and biological
waste.

     "EQUITY SECURITIES" shall mean any (i) capital stock or any securities
representing any other equity interest or (ii) any securities convertible into
or exchangeable for capital stock or any other equity interest, or any other
rights, warrants or options to acquire any of the foregoing securities.

     "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended.

     "ERISA AFFILIATE" shall mean, with respect to any Person, (i) any
corporation which is a member of a controlled group of corporations, within the
meaning of Section 414(b) of the Code, of which that Person is a member, (ii)
any trade or business (whether or not incorporated) which is a member of a group
of trades or businesses under common control, within the meaning of Section
414(c) of the Code, of which that Person is a member and (iii) any member of an
affiliated service group, within the meaning of Section 414(m) and (o) of the
Code, of which that Person or any Person described in clause (i) or (ii) is a
member.

     "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as amended.

     "EXCHANGE AGENT" shall have the meaning set forth in Section 2.07(a).

     "EXCHANGE FUND" shall have the meaning set forth in Section 2.07(a).

     "EXCHANGE RATIO" shall have the meaning set forth in Section 2.05(a).

     "EXISTING POLICY" shall have the meaning set forth in Section 5.07(b).

     "FORM S-4 REGISTRATION STATEMENT" shall mean the registration statement on
Form S-4 to be filed with the SEC by Veeco in connection with issuance of Veeco
Shares in the Merger, as said registration statement may be amended prior to the
time it is declared effective by the SEC.

     "GAAP" shall mean United States generally accepted accounting principles.

                                        5

<PAGE>

     "GOVERNMENTAL AUTHORITY" shall mean any government or any agency, bureau,
board, commission, court, department, official, political subdivision, tribunal
or other instrumentality of any government, whether federal, state or local,
domestic or foreign.

     "HAZARDOUS SUBSTANCES" shall mean (i) any hazardous or toxic waste,
substance or material defined as such in (or for the purposes of) any
Environmental Law, (ii) asbestos-containing material, (iii) medical and
biological waste, (iv) polychlorinated biphenyls, (v) petroleum products,
including gasoline, fuel oil, crude oil and other various constituents of such
products and (vi) any other chemicals, materials or substances, exposure of any
living organism to which is prohibited, limited, or regulated by any
Environmental Laws.

     "HIPAA" shall have the meaning set forth in Section 3.12(g).

     "HSR ACT" shall mean the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended.

     "INCURABLE MATERIAL ADVERSE EFFECT" shall have the meaning set forth in the
paragraph following Section 9.01(k).

     "INDEMNIFIED PERSONS" shall have the meaning set forth in Section 5.07(a).

     "INFORMATION TECHNOLOGY" shall mean computer software, computer firmware,
computer hardware (whether general or specific purpose) and other similar or
related items of automated, computerized and/or software systems developed by or
for any Acquired Corporation.

     "IRS" shall mean the Internal Revenue Service of the United States or any
successor agency, and, to the extent relevant, the United States Department of
the Treasury.

     "JOINT PROXY STATEMENT" shall mean the joint proxy statement/prospectus to
be sent to the Company's stockholders in connection with the Company
Stockholders' Meeting and to Veeco's stockholders in connection with the Veeco
Stockholders' Meeting.

     "KNOWLEDGE" shall mean, (i) with respect to an individual, the actual
knowledge of such individual and (ii) with respect to any Person other than an
individual, the actual knowledge of the officers and directors of a corporate
entity or other Persons performing similar functions for any other type of
non-individual Person.

     "LAW" shall mean any constitutional provision or any statute or other law,
rule or regulation of any Governmental Authority and any decree, injunction,
judgment, order, ruling, assessment or writ.

     "LEGAL PROCEEDING" shall mean any action, suit, litigation, arbitration,
proceeding (including any civil, criminal, administrative, investigative or
appellate proceeding), hearing, inquiry, audit, examination or investigation
commenced, brought, conducted or heard by or before,

                                        6

<PAGE>

or otherwise involving, any court or other Governmental Authority or any
arbitrator or arbitration panel.

     "LICENSED-IN AGREEMENTS" shall have the meaning set forth in Section
3.13(f)(i).

     "LICENSES" shall have the meaning set forth in Section 3.06(b).

     "LIEN" shall mean any lien, pledge, mortgage, deed of trust, security
interest, claim, lease, charge, option, right of first refusal, easement,
servitude, encroachment or other survey defect, transfer restriction or other
encumbrance of any nature whatsoever, except for liens for Taxes not yet due or
delinquent.

     "MATERIAL ADVERSE EFFECT" shall mean, with respect to the Company or Veeco
(as applicable), a material adverse effect in the business, financial condition
or results of operations of the Company or Veeco (as applicable) and their
respective Subsidiaries, taken as a whole, PROVIDED, that a Material Adverse
Effect shall not be deemed to have occurred primarily as a result of
fluctuations in (i) Veeco's or the Company's (as applicable) order rate,
revenues or net income for any fiscal period prior to the consummation of the
Merger or (ii) the number of full-time employees of Veeco or the Company (as
applicable).

     "MATERIAL CONTRACT" shall mean any Contract required to be listed on
SCHEDULE 3.08(A) of the Company Disclosure Schedule.

     "MERGER" shall have the meaning set forth in the first WHEREAS clause to
this Merger Agreement.

     "MERGER AGREEMENT" shall mean this Agreement and Plan of Merger, as
amended, supplemented or otherwise modified from time to time.

     "MERGER CONSIDERATION" shall have the meaning set forth in Section 2.05(a).

     "MULTIEMPLOYER PLAN" shall have the meaning set forth in Section 3.12(a).

     "NASDAQ" shall mean The NASDAQ Stock Market, Inc.

     "PBGC" shall mean the Pension Benefit Guaranty Corporation, or any
successor thereto.

     "PERSON" shall mean any individual, corporation, limited liability company,
partnership, firm, joint venture, association, joint-stock company, trust,
unincorporated organization, or other entity or organization, whether or not a
legal entity, and including, without limitation, any Governmental Authority.

                                        7

<PAGE>

     "REGISTRATION RIGHTS AGREEMENT" shall mean that certain Amended and
Restated Registration Rights Agreement, dated as of May 10, 1999, among the
Company and certain holders of its capital stock.

     "RELEASE" shall mean any spilling, leaking, emitting, discharging,
depositing, escaping, leaching, dumping, or other releasing, whether intentional
or unintentional.

     "REPRESENTATIVES" shall mean officers, directors, employees, agents,
attorneys, accountants, advisors and other representatives.

     "REQUIRED COMPANY STOCKHOLDER VOTE" shall mean the affirmative vote of the
holders of a majority of the shares of Company Common Stock outstanding on the
record date for the Company Stockholders Meeting.

     "REQUIRED VEECO STOCKHOLDER VOTE" shall mean the affirmative vote of the
holders of more than a majority of the Veeco Shares present and voting at the
Veeco Stockholders Meeting.

     "SEC" shall mean the United States Securities and Exchange Commission.

     "SECURITIES ACT" shall mean the Securities Act of 1933, as amended.

     "SUBSIDIARY" A Person shall be deemed to be a "Subsidiary" of another
Person if such Person directly or indirectly owns, beneficially or of record,
(a) an amount of voting securities or other interests in such Person that is
sufficient to enable such Person to elect at least a majority of the members of
such Person's Board of Directors or other governing body, or (b) at least 50% of
the outstanding entity or financial interests of such Person.

     "SUPERIOR COMPANY PROPOSAL" shall mean an unsolicited, BONA FIDE written
offer made by a third party to purchase all outstanding Company Common Stock on
terms that the Board of Directors of the Company determines to be more favorable
to the Company's stockholders than the terms of the Merger, in its reasonable
judgment, after having taken into account, among other relevant considerations,
a written opinion of an independent financial advisor of nationally recognized
reputation; PROVIDED, HOWEVER, that any such offer shall not be deemed to be a
"Superior Proposal" if any financing required to consummate the transaction
contemplated by such offer is not committed and is not reasonably capable of
being obtained by such third party.

     "SUPERIOR VEECO PROPOSAL" shall mean an unsolicited, BONA FIDE, written
offer made by a third party to purchase all outstanding Veeco Shares on terms
that the Board of Directors of Veeco determines make it more favorable to the
stockholders of Veeco for Veeco to consummate such Veeco Acquisition
Transaction, than for Veeco to consummate the Merger, in its reasonable
judgement, after having taken into account, among other relevant considerations,
a written opinion of an independent financial advisor of nationally recognized
reputation.

     "SURVIVING CORPORATION" shall have the meaning set forth in Section 2.01.

                                        8

<PAGE>

     "TAX" or "TAXES" shall mean any and all taxes (whether Federal, state,
local or municipal, and whether domestic or foreign), including, without
limitation, income, profits, franchise, gross receipts, payroll, sales,
employment, use, property, withholding, excise, occupation, value added, ad
valorem, transfer and other taxes, duties or assessments of any nature
whatsoever, together with any interest, penalties or additions to tax imposed
with respect thereto.

     "TAX RETURNS" shall mean any returns (including any information returns),
reports and forms required to be filed with any Governmental Authority in
connection with the determination, assessment, collection or payment of any
Taxes or in connection with the administration, implementation or enforcement of
or compliance with any Law relating to any Tax.

     "THREATENED" A claim, proceeding, dispute, action or other matter will be
deemed to have been "Threatened" if any demand or statement has been made
(orally or in writing) or any notice has been given (orally or in writing) that
would lead a prudent Person to conclude that such a claim, proceeding dispute,
action or other matter is likely to be asserted, commenced, taken or otherwise
pursued in the future.

     "VEECO" shall have the meaning set forth in the introductory paragraph of
this Merger Agreement.

     "VEECO AFFILIATE" has the meaning set forth in Section 5.21(b).

     "VEECO AFFILIATE AGREEMENT" has the meaning set forth in Section 5.21(b).

     "VEECO ACQUISITION PROPOSAL" shall mean any offer, proposal, inquiry or
indication of interest contemplating or otherwise relating to any Veeco
Acquisition Transaction.

     "VEECO ACQUISITION TRANSACTION" shall mean any transaction or series of
transactions involving:

     (a) any merger, consolidation, share exchange, business combination,
issuance of securities, acquisition of securities, tender offer, exchange offer
or other similar transaction (i) in which Veeco is a constituent corporation,
(ii) in which a Person or "group" (as defined in the Exchange Act and the rules
promulgated thereunder) of Persons directly or indirectly acquires beneficial or
record ownership of securities representing more than 20% of the outstanding
securities of any class of voting securities of Veeco or a Subsidiary thereof,
or (iii) in which Veeco issues securities representing more than 20% of the
outstanding securities of any class of voting securities of Veeco or a
Subsidiary thereof;

     (b) any sale, lease, exchange, transfer, license, acquisition or
disposition of any business or businesses or assets that constitute or account
for 20% or more of the consolidated net revenues, net income or assets of Veeco;
or

     (c) any liquidation or dissolution of Veeco.

                                        9

<PAGE>

     "VEECO AUTHORIZATIONS" shall have the meaning set forth in Section 4.09.

     "VEECO BALANCE SHEET" shall have the meaning set forth in Section 4.06.

     "VEECO BALANCE SHEET DATE" shall have the meaning set forth in Section
4.06.

     "VEECO BOARD RECOMMENDATION" shall have the meaning set forth in Sec-
tion 5.24(b).

     "VEECO CONFIDENTIAL IP INFORMATION" shall have the meaning set forth in
Section 4.18(g).

     "VEECO DISCLOSURE SCHEDULE" shall mean the disclosure schedule that has
been prepared by Veeco in accordance with the requirements of Section 9.07
hereof and that has been delivered by Veeco to the Company on the date of this
Merger Agreement and signed by the President of Veeco.

     "VEECO FINANCIAL STATEMENTS" shall have the meaning set forth in Section
4.04.

     "VEECO INTELLECTUAL PROPERTY" shall have the meaning set forth in Section
4.18(a).

     "VEECO OPTIONS" shall have the meaning set forth in Section 4.02(b).

     "VEECO-OWNED IP" shall have the meaning set forth in Section 4.18(e).

     "VEECO-OWNED IP REGISTRATIONS" shall have the meaning set forth in
Section 4.18(c).

     "VEECO SEC DOCUMENTS" shall mean each statement, report, registration
statement (including the related prospectus in the form filed pursuant to Rule
424(b) of the Securities Act) and definitive proxy statement, and other filings
filed with the SEC by Veeco since January 1, 1996 and prior to the Effective
Time.

     "VEECO SHARES" shall mean the common stock, $.01 par value per share, of
Veeco.

     "VEECO STOCKHOLDERS' MEETING" shall have the meaning set forth in Section
5.24(a).

     "VEECO STOCKHOLDER VOTING AGREEMENT" shall have the meaning set forth in
the third WHEREAS clause to this Merger Agreement.

     "VEECO TRIGGERING EVENT" shall be deemed to have occurred if: (i) the Board
of Directors of Veeco shall have failed to recommend that Veeco's stockholders
vote to adopt this Merger Agreement, or shall have withdrawn or modified in a
manner adverse to the Company the Veeco Board Recommendation; (ii) Veeco shall
have failed to include in the Joint Proxy Statement

                                       10

<PAGE>

the Veeco Board Recommendation or a statement to the effect that the Board of
Directors of Veeco has determined and believes that the Merger is in the best
interests of Veeco's stockholders; (iii) the Board of Directors of Veeco shall
have approved, endorsed or recommended any Veeco Acquisition Proposal; (iv)
Veeco shall have entered into any letter of intent or similar document or any
Contract relating to a Veeco Acquisition Proposal; (v) Veeco shall have failed
to hold the Veeco Stockholders Meeting on the date of the Company Stockholders
Meeting or as promptly as practicable thereafter and, in any event, within five
days after the date of the Company Stockholders Meeting; or (vi) Veeco or any
Representative of Veeco shall have violated in a material manner any of the
restrictions set forth in Section 5.17.

     "VEECO'S BROKER" shall have the meaning set forth in Section 4.12.

     "WHITMAN EMPLOYMENT AGREEMENT" shall have the meaning set forth in Sec-
tion 5.13.

     1.02 The words "hereof," "herein," "hereby" and "hereunder," and words of
like import, refer to this Merger Agreement as a whole and not to any particular
Section hereof. References herein to any Section, Schedule or Exhibit refer to
such Section of, or such Schedule or Exhibit to, this Merger Agreement, unless
the context otherwise requires. All pronouns and any variations thereof refer to
the masculine, feminine or neuter gender, singular or plural, as the context may
require. The word "including," when used herein, means "including, without
limitation."

II. THE MERGER.

     2.01 THE MERGER. At the Effective Time of the Merger, Acquisition shall be
merged with and into the Company. The separate existence of Acquisition shall
thereupon cease and the Company shall continue its corporate existence as the
surviving corporation (the "SURVIVING CORPORATION") under the DGCL Laws of the
State of Delaware under its present name. The Company and Acquisition are
sometimes referred to collectively herein as the "CONSTITUENT CORPORATIONS."

     2.02 EFFECTIVE TIME OF THE MERGER. At the Closing, the parties hereto shall
cause a certificate of merger substantially in the form of EXHIBIT C annexed
hereto (the "CERTIFICATE OF MERGER") to be executed and filed with the Secretary
of State of the State of Delaware, as provided in Section 252 of the DGCL, and
shall take all such other and further actions as may be required by Law to make
the Merger effective. The Merger shall become effective as of the date and time
of the filing of the Certificate of Merger. The date and time of such
effectiveness are referred to herein as the "EFFECTIVE TIME."

     2.03 CLOSING OF THE MERGER. (a) Unless this Merger Agreement shall
theretofore have been terminated pursuant to the provisions of Section 9.01
hereof, the closing of the Merger (the "CLOSING") shall take place as promptly
as practicable, but no later than the second business day, following the day on
which the last of the conditions (other than conditions which, by their nature,
are to be satisfied at Closing, but subject to those conditions) set forth in
Articles VI, VII and

                                       11

<PAGE>

VIII hereof are fulfilled or waived (by the relevant party or parties), subject
to applicable Laws (the "CLOSING DATE"), at the offices of Kaye, Scholer,
Fierman, Hays & Handler, LLP, 425 Park Avenue, New York, New York 10022, unless
another time, date or place is agreed to in writing by the parties hereto.

          (b) Subject to the provisions of this Merger Agreement, Veeco,
Acquisition and the Company shall cause to be executed and filed at the
Closing the Certificate of Merger, and shall cause the Certificate of
Merger to be recorded in accordance with the provisions of the DGCL and
shall take any and all other lawful actions and do any and all other lawful
things to cause the Merger to become effective.

     2.04 EFFECTS OF THE MERGER. At the Effective Time of the Merger:

          (a) the separate existence of Acquisition shall cease and Acquisition
     shall be merged with and into the Company, which shall be the Surviving
     Corporation;

          (b) the Certificate of Incorporation and By-Laws of the Company as in
     effect immediately prior to the Effective Time shall be the Certificate of
     Incorporation and By-Laws of the Surviving Corporation, until each shall
     thereafter be amended in accordance with each of their terms and as
     provided by Law;

          (c) the directors and officers of the Surviving Corporation
     immediately after the Effective Time shall be the respective individuals
     who are directors and officers of Acquisition immediately prior to the
     Effective Time;

          (d) the Surviving Corporation shall possess all the rights,
     privileges, immunities and franchises, of a public as well as of a private
     nature, of each of the Constituent Corporations, and all property, real,
     personal, and mixed, and all debts due on whatever account, and all other
     choses in action, and all and every other interest of or belonging to or
     due to each of the Constituent Corporations shall be taken and deemed to be
     transferred to and vested in the Surviving Corporation without further act
     or deed; and

          (e) the Surviving Corporation shall thenceforth be responsible and
     liable for all liabilities and obligations of each of the Constituent
     Corporations, and any claim existing or action or proceeding pending by or
     against either of the Constituent Corporations may be prosecuted as if the
     Merger had not taken place or the Surviving Corporation may be substituted
     in its place. Neither the rights of creditors nor Liens upon the property
     of either of the Constituent Corporations shall be impaired by the Merger.

     2.05 CONVERSION OF SHARES. As of the Effective Time, by virtue of the
Merger and without any further action on the part of Veeco, Acquisition, the
Company or any holder of any Equity Securities of the Constituent Corporations:

                                       12

<PAGE>

          (a) Each share of Company Common Stock issued and outstanding
immediately prior to the Effective Time shall be converted into the right
to receive 0.43 Veeco Shares (the "MERGER CONSIDERATION"). Accordingly,
0.43 is hereinafter referred to as the "EXCHANGE RATIO."

          (b) Each share of common stock, par value $0.01 per share, of
Acquisition issued and outstanding immediately prior to the Effective Time
shall be converted into and exchanged for one validly issued, fully paid
and nonassessable share of common stock, par value $0.01 per share, of the
Surviving Corporation.

          (c) The Merger Consideration shall be adjusted to reflect fully the
effect of any stock split, reverse split, stock dividend (including any
dividend or distribution of securities convertible into Veeco Shares or
Company Common Stock), reorganization, recapitalization or other like
change with respect to Veeco Shares or Company Common Stock occurring after
the date of this Merger Agreement and prior to the Effective Time or after
the Effective Time if the record date with respect thereto is set after the
date of this Merger Agreement and prior to the Effective Time.

          (d) No fraction of a Veeco Share will be issued in exchange for
surrendered shares of Company Common Stock, but in lieu thereof each holder
of shares of Company Common Stock who would otherwise be entitled to a
fraction of a Veeco Share (after aggregating all fractional shares of Veeco
Shares to be received by such holder) shall receive from Veeco an amount of
cash (rounded to the nearest whole cent) equal to the product of (i) such
fraction, multiplied by (ii) the Closing Price Per Share.

          (e) All Company Common Stock, by virtue of the Merger and without any
action on the part of the holders thereof, shall no longer be outstanding
and shall be canceled and retired and shall cease to exist, and each holder
of a Company Stock Certificate shall thereafter cease to have any rights
with respect to the shares of Company Common Stock represented thereby,
except the right to receive the Merger Consideration for such Company
Common Stock upon the surrender of such Company Stock Certificate in
accordance with this Section and Section 2.07 hereof.

          (f) If any shares of Company Common Stock outstanding immediately
prior to the Effective Time are unvested or are subject to a repurchase
option, risk of forfeiture or other condition under any applicable
restricted stock purchase agreement or other agreement with the Company or
any other Acquired Corporation or under which the Company or any other
Acquired Corporation has any rights, then the Veeco Shares issued in
exchange for such shares of Company Common Stock will also be unvested and
subject to the same repurchase option, risk of forfeiture or other
condition, and the certificates representing such Veeco Shares may
accordingly be marked with appropriate legends. The Company shall take all
action that may be necessary to ensure that, from and after the Effective
Time, Veeco is entitled to exercise any such repurchase option or other
right set forth in any such restricted stock purchase agreement or other
agreement.

     2.06 CLOSING OF THE COMPANY'S TRANSFER BOOKS. At the Effective Time, the
stock transfer books of the Company shall be closed with respect to all shares
of Company Common Stock

                                       13

<PAGE>

outstanding immediately prior to the Effective Time. No further transfer of any
such shares of Company Common Stock shall be made on such stock transfer books
after the Effective Time. If, after the Effective Time, a valid certificate
previously representing any shares of Company Common Stock (a "COMPANY STOCK
CERTIFICATE") is presented to the Exchange Agent or to the Surviving Corporation
or Veeco, such Company Stock Certificate shall be canceled, and shall be
exchanged as provided in Section 2.07 hereof.

     2.07 EXCHANGE OF CERTIFICATES.

          (a) On or prior to the Closing Date, Veeco shall select a reputable
bank or trust company to act as exchange agent in the Merger (the "EXCHANGE
AGENT"). Promptly after the Effective Time, Veeco shall deposit with the
Exchange Agent (i) certificates representing the Veeco Shares issuable
pursuant to this Article II and (ii) cash sufficient to make payments in
lieu of fractional shares in accordance with Section 2.05(d) hereof. The
Veeco Shares and cash amounts so deposited with the Exchange Agent,
together with any dividends or distributions received by the Exchange Agent
with respect to such shares, are referred to herein collectively as the
"EXCHANGE FUND."

          (b) As soon as reasonably practicable after the Effective Time, the
Exchange Agent will mail to the record holders of Company Stock Certificates:
(i) a letter of transmittal in customary form and containing such provisions as
Veeco may reasonably specify (including a provision confirming that delivery of
Company Stock Certificates shall be effected, and risk of loss and title to
Company Stock Certificates shall pass, only upon delivery of such Company Stock
Certificates to the Exchange Agent), and (ii) instructions for use in effecting
the surrender of Company Stock Certificates in exchange for certificates
representing Veeco Shares as contemplated by this Article II. Upon surrender of
a Company Stock Certificate to the Exchange Agent for exchange, together with a
duly executed letter of transmittal and such other documents as may be
reasonably required by the Exchange Agent or Veeco, (1) the holder of such
Company Stock Certificate shall be entitled to receive in exchange therefor a
certificate representing the number of whole Veeco Shares that such holder has
the right to receive pursuant to the provisions of Section 2.05 hereof (and an
appropriate amount of cash in lieu of any fractional Veeco Share otherwise
issuable), and (2) the Company Stock Certificate so surrendered shall be
canceled. Until surrendered as contemplated by this Section 2.07, each Company
Stock Certificate shall be deemed, from and after the Effective Time, to
represent only the right to receive Veeco Shares (and an appropriate amount of
cash in lieu of any fractional Veeco Share otherwise issuable) as contemplated
by this Article II. If any Company Stock Certificate shall have been lost,
stolen or destroyed, Veeco may, in its discretion and as a condition precedent
to the issuance of any certificate representing Veeco Shares hereunder, require
the owner of such lost, stolen or destroyed Company Stock Certificate to provide
an appropriate affidavit and to deliver a bond (in such sum as Veeco may
reasonably direct) as indemnity against any claim that may be made against the
Exchange Agent, Veeco or the Surviving Corporation with respect to such Company
Stock Certificate.

          (c) No certificates representing Veeco Shares shall be issued in
exchange for any Company Stock Certificate to any Person who may be a
Company Affiliate until such Person

                                       14

<PAGE>

shall have delivered to Veeco and the Company a duly executed Company Affiliate
Agreement or Veeco Affiliate Agreement (as applicable), as contemplated by
Section 5.21 hereof.

          (d) No dividends or other distributions declared or made with respect
to Veeco Shares with a record date after the Effective Time shall be paid
to the holder of any unsurrendered Company Stock Certificate with respect
to the Veeco Shares that such holder has the right to receive in the Merger
until such holder surrenders such Company Stock Certificate in accordance
with this Section 2.07 (at which time such holder shall be entitled,
subject to the effect of applicable escheat or similar Laws, to receive all
such dividends and distributions, without interest).

          (e) Any portion of the Exchange Fund that remains undistributed to
holders of Company Stock Certificates as of the date that is 180 days after the
Effective Time shall be delivered to Veeco upon demand, and any holders of
Company Stock Certificates who have not theretofore surrendered their Company
Stock Certificates in accordance with this Section 2.07 shall thereafter look
only to Veeco for satisfaction of their claims for Veeco Shares, cash in lieu of
fractional Veeco Shares and any dividends or distributions with respect to Veeco
Shares Common Stock.

          (f) Each of the Exchange Agent, Veeco and the Surviving Corporation
shall be entitled to deduct and withhold from any consideration payable or
otherwise deliverable pursuant to this Merger Agreement to any holder or former
holder of Company Common Stock such amounts as may be required to be deducted or
withheld therefrom under the Code or any provision of state, local or foreign
Tax Law or under any other applicable Law. To the extent such amounts are so
deducted or withheld, such amounts shall be treated for all purposes under this
Merger Agreement as having been paid to the Person to whom such amounts would
otherwise have been paid.

          (g) Neither Veeco nor the Surviving Corporation shall be liable to any
holder or former holder of Company Common Stock or to any other Person with
respect to any Veeco Shares (or dividends or distributions with respect
thereto), or for any cash amounts, delivered to any public official pursuant to
any applicable abandoned property Law, escheat Law or similar Law.

     2.08 TAX CONSEQUENCES . For federal income tax purposes, the Merger is
intended to constitute a reorganization within the meaning of Section 368 of the
Code with respect to which no gain or loss will be recognized by a stockholder
of the Company upon the conversion of Company Common Stock into Veeco Shares
pursuant to the Merger (except with respect to any cash received in lieu of a
fractional share). The parties to this Merger Agreement hereby adopt this Merger
Agreement as a "plan of reorganization" as described in Sections 1.368-2(g) and
1.368-3(a) of the United States Treasury Regulations.

     2.09 ACCOUNTING CONSEQUENCES . For financial reporting purposes, the Merger
is intended to be accounted for as a "pooling of interests."

                                       15

<PAGE>

     2.10 FURTHER ACTION . If, at any time after the Effective Time, any further
action is determined by Veeco to be necessary or desirable to carry out the
purposes of this Merger Agreement or to vest the Surviving Corporation with full
right, title and possession of and to all rights and property of Acquisition and
the Company, the officers and directors of the Surviving Corporation and Veeco
shall be fully authorized (in the name and on behalf of Acquisition, in the name
and on behalf of the Company or otherwise) to take such action.

     2.11 SUBSEQUENT ACTION. If, at any time after the Effective Time, the
Surviving Corporation shall consider or be advised that any deeds, bills of
sale, assignments, assurances and any other actions or things are necessary,
desirable or proper to vest, perfect or confirm, of record or otherwise, in the
Surviving Corporation its right, title or interest in, to or under any of the
rights, properties or assets of the Constituent Corporations as a result of, or
in connection with, the Merger, the officers and directors of the Surviving
Corporation shall be authorized to execute and deliver, in the name and on
behalf of the Constituent Corporations or otherwise, all such deeds, bills of
sale, assignments and assurances and to take and do, in the name and on behalf
of the Constituent Corporations or otherwise, all such other actions and things
as may be necessary or desirable to vest, perfect or confirm any and all right,
title and interest in, to and under such rights, properties or assets in the
Surviving Corporation or otherwise to carry out this Merger Agreement.

III. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

     The Company hereby represents and warrants to Veeco and Acquisition that,
except as set forth in the Company SEC Documents, or in a specific subsection of
the Company Disclosure Schedule:

     3.01 DUE ORGANIZATION; SUBSIDIARIES; ETC. (a) The Company has no
Subsidiaries, except for the corporations identified in SCHEDULE 3.01(A) of the
Company Disclosure Schedule (which together constitute all of the Acquired
Corporations); and neither the Company nor any of the other Acquired
Corporations owns any capital stock or Equity Securities of, or any equity
interest of any nature in, any other Person. None of the Acquired Corporations
has agreed or is obligated to make, or is bound by any Contract under which it
may become obligated to make, any future investment in or capital contribution
to any other Person. Since January 1, 1990, none of the Acquired Corporations
has, at any time, been a general partner of any general partnership, limited
partnership or other Person.

     (b) Each of the Acquired Corporations is a corporation duly organized,
validly existing and in good standing (in jurisdictions that recognize such
concept) under the Laws of the jurisdiction of its incorporation and has all
necessary power and authority: (i) to conduct its business in the manner in
which its business is currently being conducted; (ii) to own and use its assets
in the manner in which its assets are currently owned and used; and (iii) to
perform its obligations under all Contracts by which it is bound.

                                       16

<PAGE>

     (c) Each of the Acquired Corporations is qualified to do business as a
foreign corporation, and is in good standing (in jurisdictions that recognize
such concept), under the laws of all jurisdictions where the nature of its
business requires such qualification, other than such failures to be so
qualified as would not individually or in the aggregate reasonably be expected
to have a Material Adverse Effect on the Company.

     3.02 CAPITALIZATION. (a) The authorized capital stock of the Company
consists of 50,000,000 shares of Company Common Stock, of which 11,604,819 were
issued and outstanding as of January 31, 2000. All of the outstanding shares of
Company Common Stock have been duly authorized and validly issued and are fully
paid and nonassessable and were issued in conformity with applicable Laws.

     (b) As of January 31, 2000, 2,179,080 shares of Company Common Stock were
issuable upon the exercise of options granted under the stock option plans and
other options set forth on SCHEDULE 3.02(B) to the Company Disclosure Schedule
(collectively, the "COMPANY OPTIONS"). Except for the Company Options, there are
no outstanding Equity Securities, or other obligations to issue or grant any
rights to acquire any Equity Securities, of the Company, or any Contracts to
restructure or recapitalize the Company. There are no outstanding Contracts of
the Company to repurchase, redeem or otherwise acquire any Equity Securities of
the Company. All outstanding Equity Securities of each of the Acquired
Corporations have been duly authorized and validly issued in conformity with
applicable laws. The Company owns all issued and outstanding Equity Securities
of each other Acquired Corporation.

     3.03 AUTHORIZATION. The Company has full corporate power and authority to
execute, deliver and perform this Merger Agreement and the Certificate of
Merger, and to consummate the transactions contemplated hereby. The execution,
delivery and performance of this Merger Agreement, the Certificate of Merger and
all other documents and agreements to be delivered pursuant hereto and the
consummation of the transactions contemplated hereby have been duly and validly
authorized by the Board of Directors of the Company, and no other corporate
proceedings on the part of the Company (other than the Required Company
Stockholder Vote and the filing of the Certificate of Merger) are necessary to
authorize this Merger Agreement, the Certificate of Merger and any such related
documents or agreements or to consummate the transactions contemplated hereby.
This Merger Agreement has been duly and validly executed and delivered by the
Company and the Certificate of Merger, when executed at the Closing, will be
duly and validly executed and delivered by the Company. This Merger Agreement,
assuming the due authorization, execution and delivery by each of the other
parties hereto, constitutes a legal, valid and binding agreement of the Company,
enforceable in accordance with its terms, and the Certificate of Merger, when
executed by the Company at the Closing, assuming the due authorization,
execution and delivery by each of the other parties hereto, will be legal, valid
and binding agreements of the Company, enforceable in accordance with their
respective terms except as such enforceability may be limited by applicable
bankruptcy, moratorium, insolvency, reorganization, fraudulent conveyance or
other Laws affecting the enforcement of creditors' rights generally or by
general equitable principles.

                                       17

<PAGE>

     3.04 REPORTS. All documents required to be filed as exhibits to the Company
SEC Documents have been so filed. All Company SEC Documents were filed as and
when required by the Exchange Act or the Securities Act, as applicable. The
Company SEC Documents include all statements, reports and documents required to
be filed by the Company pursuant to the Exchange Act and the Securities Act. As
of their respective filing dates, the Company SEC Documents complied in all
material respects with the requirements of the Exchange Act and the Securities
Act, as applicable, and none of the Company SEC Documents, as of their
respective filing dates, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary to
make the statements made therein, in light of the circumstances in which they
were made, not misleading, except to the extent corrected by a subsequently
filed Company SEC Document. The financial statements of the Company and its
Subsidiaries, including the notes thereto, included in the Company SEC Documents
(the "COMPANY FINANCIAL STATEMENTS"), complied in all material respects with
applicable accounting requirements and with the published rules and regulations
of the SEC with respect thereto as of their respective dates (except as may be
indicated in the notes thereto or, in the case of unaudited statements included
in Quarterly Reports on Form 10-Q, as permitted by Form 10-Q of the SEC). The
Company Financial Statements fairly present the consolidated financial
condition, operating results and cash flows of the Company and its Subsidiaries
at the dates and during the periods indicated therein in accordance with GAAP
consistently applied (subject, in the case of unaudited statements, to normal,
recurring year-end adjustments and additional footnote disclosures). There has
been no material change in the Company's accounting policies except as described
in the notes to the Company Financial Statements. At all times since November
12, 1999, the Company has (i) filed as and when due all documents required to be
filed with NASDAQ, and (ii) otherwise timely performed all of the Company's
obligations pursuant to the rules and regulations of NASDAQ.

     3.05 NO UNDISCLOSED LIABILITIES. The Acquired Corporations do not have any
obligation or liability of any nature (matured or unmatured, fixed or
contingent) other than those (i) set forth or adequately provided for in the
balance sheet of the Company as at December 31, 1999, (ii) not required to be
set forth on such balance sheet under GAAP, (iii) incurred in the ordinary
course of business since December 31, 1999, and consistent with past practice or
(iv) which, individually or in the aggregate, would not have a Material Adverse
Effect on the Company.

     3.06 COMPLIANCE WITH LAW; GOVERNMENTAL AUTHORIZATIONS. (a) Each of the
Acquired Corporations has complied in all material respects with, is not in
violation of, and has not received notices of violation with respect to, any Law
with respect to the conduct of its business, or the ownership or operation of
its business, except for instances of possible noncompliance which, individually
or in the aggregate, would not have a Material Adverse Effect on the Company.

          (b) Each of the Acquired Corporations has obtained all licenses,
permits, certificates, consents and approvals from Governmental Authorities
(the "LICENSES") that are necessary for its business and operations except
where the failure to obtain such Licenses would not, individually or in the
aggregate, have a Material Adverse Effect on the Company. All such Licenses
are in full force and effect, and no notice of any material violation has
been received by any Acquired Corporation in respect of any such License.
The consummation of the transactions

                                       18

<PAGE>

contemplated hereunder and the operation of the business of the Acquired
Corporations by the Surviving Corporation in the manner in which it is currently
operated will not require the transfer of any such License that may not be
transferred to the Surviving Corporation without the Consent of any Governmental
Authority or other Person.

     3.07 NO CONFLICTS. (a) No filing or registration with, or permit,
authorization, Consent or approval of, or notification or disclosure to, any
Governmental Authority is required by the Company in connection with the
execution and delivery of this Merger Agreement or the consummation by the
Company of the Merger and the other transactions contemplated hereby, except (i)
in connection with the applicable requirements of the HSR Act, (ii) in
connection with the provisions of the Securities Act and the rules and
regulations promulgated thereunder, the Exchange Act and the rules and
regulations promulgated thereunder and the rules and regulations of the NASDAQ,
(iii) the filing of appropriate merger documents as required by the DGCL
(including the Certificate of Merger) and (iv) such Consents, approvals, orders,
permits, authorizations, registrations, or declarations and filings as may be
required under the Blue Sky laws of various states.

          (b) The execution, delivery and performance by the Company of this
Merger Agreement and the consummation of the Merger and the other
transactions contemplated hereby will not (i) violate any provision of the
Certificate of Incorporation or By-Laws or other organizational documents
of the Company, (ii) violate, or be in conflict with, or constitute a
default (or an event which, with notice or lapse of time or both, would
constitute a default) under, or result in, or provide the basis for, the
termination of, or accelerate the performance required by, or excuse
performance by any Person of any of its obligations under, or cause the
acceleration of the maturity of any debt or obligation pursuant to, or
result in the creation or imposition of any Lien upon any property or
assets of any Acquired Corporation under, any Material Contract to which
any Acquired Corporation is a party or by which any of its property or
assets is bound, or to which any of the property or assets of any Acquired
Corporation is subject, except for Contracts, the other party to which has
consented to the execution and delivery of this Merger Agreement or the
consummation of the Merger (as appropriate under the terms of such
Contract), (iii) violate any Law applicable to any Acquired Corporation or
(iv) violate or result in the revocation or suspension of any License.

          3.08 CONTRACTS. (a) SCHEDULE 3.08(A) to the Company Disclosure
Schedule and the Company SEC Documents contain a complete and accurate
list, and the Company has delivered or made available to Veeco true and
complete copies (or, in the case of oral Contracts, summaries), of:

     (i) each Contract that is executory in whole or in part and involves
performance of services or delivery of goods or materials by the Company or any
other Acquired Corporation of an amount or value in excess of $250,000;

     (ii) each Contract that is executory in whole or in part and was not
entered into in the ordinary course of business and that involves expenditures
or receipts of the Company or any other Acquired Corporation in excess of
$250,000;

                                       19
<PAGE>

     (iii) each lease, rental or occupancy agreement, license agreement,
installment and conditional sale agreement, and any other Contract affecting the
ownership of, leasing of, title to, use of, or any leasehold or other interest
in, any real or personal property of any Acquired Corporation (except personal
property leases and installment and conditional sales agreements having a value
per item or annual payments of less than $175,000);

     (iv) other than licensing agreements entered into in connection with
product sales in the ordinary course of the Company's or the other Acquired
Corporations' business, each material licensing agreement or any other material
Contract with respect to patents, trademarks, copyrights or other Intellectual
Property, including material Contracts with current or former employees,
consultants or contractors regarding the appropriation or the non-disclosure of
any of the Intellectual Property;

     (v) each collective bargaining agreement and any other Contract to or with
any labor union or other employee representative of a group of employees of any
Acquired Corporation;

     (vi) each joint venture, partnership and any other material Contract
(however named) involving a sharing of profits, losses, costs or liabilities by
an Acquired Corporation with any other Person;

     (vii) each Contract containing covenants that in any way purport to
restrict the business activity of an Acquired Corporation or limit the freedom
of an Acquired Corporation to engage in any line of business or to compete with
any Person;

     (viii) each Contract providing for material payments to or by any Person
based on sales, purchases or profits, other than direct payments for goods;

     (ix) each power of attorney that is currently effective and outstanding
granted by and relating to an Acquired Corporation;

     (x) each Contract that contains or provides for an express undertaking by
an Acquired Corporation to be responsible for consequential damages;

     (xi) each Contract that is executory in whole or in part and involves
capital expenditures by an Acquired Corporation in excess of $250,000;

     (xii) each written warranty, guaranty and/or other similar undertaking with
respect to contractual performance extended by an Acquired Corporation other
than in the ordinary course of business; and

     (xiii) each Contract with any employee, director or officer of an Acquired
Corporation.

                                       20

<PAGE>

              (b) Each Material Contract is in full force and effect and
enforceable in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, moratorium, insolvency, reorganization,
fraudulent conveyance and other Laws affecting the enforcement of creditors'
rights generally or by general principles of equity.

              (c) Each Acquired Corporation has fulfilled in all material
respects all obligations required pursuant to each Material Contract to have
been performed by it.

              (d) No Acquired Corporation has received any written notice of
default under any Material Contract, no default (beyond any applicable grace or
cure period) has occurred under any Material Contract on the part of an Acquired
Corporation or, to the Company's knowledge, on the part of any other party
thereto, nor has any event occurred which with the giving of notice or the lapse
of time, or both, would constitute any default on the part of an Acquired
Corporation under any Material Contract nor, to the Company's knowledge, has any
event occurred which with the giving of notice or lapse of time, or both, would
constitute any default on the part of any other party to any Material Contract.

              (e) Except as set forth in SCHEDULE 3.08(E) to the Company
Disclosure Schedule, no Consent or approval of any party to any of the Material
Contracts is required for the execution, delivery or performance of this Merger
Agreement or the consummation of the Merger or the other transactions
contemplated hereby to which the Company is a party, except where the failure to
obtain such Consent or approval would not, individually or in the aggregate,
have a Material Adverse Effect on the Company.

              (f) To the knowledge of the Company, no officer, director, agent
or employee of the Company is bound by any Contract that purports to limit the
ability of such officer, director, agent or employee to (i) engage in or
continue any conduct, activity or practice relating to the business of an
Acquired Corporation, or (ii) assign to the Company or an Acquired Corporation
to any other Person any rights to any invention, improvement or discovery.

              3.09 LITIGATION. There are no actions, suits or legal,
administrative, arbitration or other Legal Proceedings or governmental
investigations pending or, to the Company's knowledge, Threatened against the
Company or any other Acquired Corporation before or by any Governmental
Authority, except for such as would not individually or in the aggregate either
impair the Company's or any other Acquired Corporation's ability to consummate
the Merger or have or reasonably be expected to have a Material Adverse Effect
on the Company. No Acquired Corporation is a party to or subject to any
judgment, order, writ, injunction, decree or award of any Governmental
Authority, except for those that, individually or in the aggregate, would not
have a Material Adverse Effect on the Company.

              3.10 TAXES. Except as set forth in SCHEDULE 3.10 to the Company
Disclosure Schedule:

                                       21
<PAGE>

              The Company and each of the Acquired Corporations has filed or
caused to be filed on a timely basis all Tax Returns that are or were required
to be filed by the Company and/or any of the other Acquired Corporations, either
separately or as part of an affiliated group of corporations, pursuant to the
Laws of any Governmental Authority with taxing power over any of the Acquired
Corporations or its assets and business. All Tax Returns filed by any of the
Acquired Corporations are true, correct and complete. The Company and each of
the Acquired Corporations has paid all Taxes that have become due by it pursuant
to those Tax Returns, or otherwise, or pursuant to any assessment received by
any of the Acquired Corporations, except such Taxes, if any, as are being
contested in good faith and as to which adequate reserves have been provided in
the Company Financial Statements. The Company has delivered to Veeco complete
copies of all Tax Returns that any of the Acquired Corporations has filed for
the past three years. All Taxes that the Company or any of the Acquired
Corporations is, or was, required by Law to withhold and collect have been duly
withheld and collected and, to the extent required, have been paid to the
appropriate Governmental Authority. There is no agreement, plan, arrangement or
other contract covering any employee or independent contractor of the Company or
any of the Acquired Corporations that could give rise to the payment of any
amount that could not be deductible by the Company or any of the Acquired
Corporations or Veeco pursuant to Section 280G or Section 162(m) of the Code.
The Company is not a "United States real property holding corporation," as
defined in Section 897(c)(2) of the Code. The charges, accruals and reserves
with respect to Taxes on the Company Financial Statements with respect to each
of the Acquired Corporations (excluding any provision for deferred income taxes
established to reflect timing differences between book and tax income) for all
tax periods (or portions thereof) ending on or before the Closing Date
(including any period for which no Tax Return has yet been filed) are adequate
for GAAP purposes.

              3.11 ABSENCE OF CERTAIN CHANGES. Except as disclosed in the
Company SEC Documents, since September 30, 1999, the Acquired Corporations have
conducted their business in the ordinary course consistent with past practice
and there has not occurred: (i) any change, event or condition (whether or not
covered by insurance) that has resulted in, or might reasonably be expected to
result in, a Material Adverse Effect to the Company; (ii) any acquisition, sale
or transfer of any material asset of the Acquired Corporations other than in the
ordinary course of business and consistent with past practice; (iii) any change
in accounting methods or practices (including any change in depreciation or
amortization policies or rates) by the Company or any revaluation by the Company
of any of its assets; (iv) any declaration, setting aside, or payment of a
dividend or other distribution with respect to the shares of the Company, or any
direct or indirect redemption, purchase or other acquisition by the Company of
any of its shares of capital stock; (v) any material Contract entered into by
any Acquired Corporation, other than in the ordinary course of business, or any
material amendment or termination of, or default under, any material Contract to
which any Acquired Corporation is a party or by which any of them is bound; (vi)
any action or failure to act that could reasonably be expected to cause the
Merger to fail to qualify as a reorganization as described in Section 368(a) of
the Code with respect to which no gain or loss will be recognized by a
stockholder of the Company on the conversion of Company Common Stock into Veeco
Shares pursuant to the Merger (except with respect to any cash received in lieu
of a fractional share); or (vii) any agreement by any Acquired Corporation to do
any of the things described in the preceding

                                       22
<PAGE>

clauses (i) through (vi) (other than negotiations with Veeco and its
Representatives regarding the transactions contemplated by this Merger
Agreement).

              3.12 EMPLOYEE BENEFIT PLANS. (a) Neither the Company nor any ERISA
Affiliate thereof (i) maintains or contributes to or has any obligation with
respect to, and none of the current or former employees of the Company or any
ERISA Affiliate thereof is covered by, any bonus, deferred compensation,
severance pay, pension, profit-sharing, retirement, insurance, stock purchase,
stock option or other fringe benefit plan, arrangement or practice, written or
otherwise, or any other "employee benefit plan," as defined in Section 3(3) of
ERISA, whether formal or informal (collectively, the "BENEFIT PLANS"). None of
the Benefit Plans is, and the Company (or any of its ERISA Affiliates) has not
during the past five years maintained or had an obligation to contribute to, or
incurred any other obligation with respect to (i) a "multiemployer plan," as
defined in Section 3(37) of ERISA (a "MULTIEMPLOYER PLAN"), (ii) a "multiple
employer plan," as defined in ERISA or the Code or (iii) a funded welfare
benefit plan, as defined in Section 419 of the Code. Neither the Company nor any
ERISA Affiliate thereof has any agreement or commitment to create any additional
Benefit Plan, or to modify or change any existing Benefit Plan.

              (b) With respect to each Benefit Plan, the Company has heretofore
delivered or caused to be delivered or made available to Veeco true, correct and
complete copies of (i) all documents which comprise the most current version of
each of such Benefit Plan, including any related trust agreements, insurance
contracts, or other funding or investment agreements and any amendments thereto,
and (ii) with respect to each Benefit Plan that is an "employee benefit plan,"
as defined in Section 3(3) of ERISA (A) the three most recent Annual Reports
(Form 5500 Series) and accompanying schedules for each of the Benefit Plans for
which such a report is required, (B) the most current summary plan description
(and any summary of material modifications), (C) the three most recent certified
financial statements and actuarial valuation for each of the Benefit Plans for
which such a statement or actuarial valuation is required or was prepared, (D)
the Forms PBGC-1 filed in each of the three most recent plan years for each of
the Benefit Plans for which such form was required to be filed, (E) for each
Benefit Plan that provides health or other non-pension benefits to retired or
former employees, shareholders or directors (or their beneficiaries), an
actuarial calculation of the liability of the Company and its Subsidiaries
prepared in accordance with Financial Accounting Standard 106 of the Financial
Accounting Standards Board, and (F) for each Benefit Plan intended to be
"qualified" within the meaning of Section 401(a) of the Code, all IRS
determination letters issued with respect to such Plan. Since the date of the
documents delivered, there has not been any material change in the assets or
liabilities of any of the Benefit Plans (other than any Benefit Plans under
which Company Options are issued) or any change in their terms and operations
which could reasonably be expected to affect or alter the tax status or
materially affect the cost of maintaining such Plan, other than any change that
would not have a Material Adverse Effect on the Company, and none of the Benefit
Plans has been or will be amended prior to the Closing Date, other than as
required by Law, regulation or tax qualification requirement.

              (c) The Company or the relevant ERISA Affiliate thereof has
performed and complied in all material respects with all of its obligations
under and with respect to the Benefit Plans and each of the Benefit Plans has,
at all times, in form, operation and administration complied

                                       23
<PAGE>

in all material respects with its terms, and, where applicable, the requirements
of the Code, ERISA and all other applicable Laws. Except as set forth on
SCHEDULE 3.12(C) of the Company Disclosure Schedule, each Benefit Plan which is
intended to be "qualified" within the meaning of Section 401(a) of the Code has
been determined by the IRS to be so qualified and, to the knowledge of the
Company, nothing has occurred which could be expected to adversely affect such
qualified status.

              (d) There are no material unpaid contributions due prior to the
date hereof with respect to any Benefit Plan that are required to have been made
under its terms and provisions, any related insurance contract or any applicable
Law, and there are no unfunded benefit obligations that have not been accounted
for by reserves, or otherwise property footnoted in the Company Financial
Statements as required in accordance with GAAP. No assets of the Company are
allocated or held in a trust or similar funding vehicle, and there are no
reserve assets, surpluses or prepaid premiums with respect to any Benefit Plan
that is a welfare plan.

              (e) With respect to each Benefit Plan that is an "employee pension
benefit plan," as defined in Section 3(2) of ERISA, (i) neither the Company nor
any ERISA Affiliate has withdrawn from such Benefit Plan during a plan year in
which it was a "substantial employer," as defined in Section 4001(a)(2) of
ERISA, where such withdrawal could result in liability of such substantial
employer pursuant to Section 4062(e) or 4063 of ERISA, (ii) neither the Company
nor any ERISA Affiliate has filed a notice of intent to terminate any such
Benefit Plan or adopted any amendment to treat any such Benefit Plan as
terminated, (iii) the PBGC has not instituted proceedings to terminate any such
Benefit Plan, (iv) to the knowledge of the Company, no other event or condition
has occurred which might constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any such Benefit
Plan, (v) all required premium payments to the PBGC have been paid when due,
(vi) no reportable event, as described in Section 4043 of ERISA (whether or not
waived), has occurred, or, to the knowledge of the Company, is reasonably
expected to occur, with respect to any such Benefit Plan, (vii) no material
excise taxes are payable under the Code, (viii) no amendment with respect to
which security is required under Section 307 of ERISA or Section 401(a)(29) of
the Code has been made or is reasonably expected to be made, and (ix) there has
been no event which could subject the Company or any ERISA Affiliate to
liability under Section 4064 or 4069 of ERISA.

              (f) With respect to each Benefit Plan that is subject to the
provisions of Section 412 of the Code or Title I, Subtitle B, Part 3 of ERISA,
(i) there has occurred no failure to meet the minimum funding standards of
Section 412 of the Code (whether or not waived in accordance with Section 412(d)
of the Code) or failure to make by its due date a required installment under
Section 412(m) of the Code, (ii) the funding method used in connection with such
Benefit Plan is acceptable under ERISA and the actuarial assumptions used in
connection with funding such Benefit Plan meet the requirements of Section 302
of ERISA, (iii) no accumulated funding deficiency, whether or not waived, exists
with respect to any such Benefit Plan, and no condition has occurred or exists
which by the passage of time would be expected to result in an accumulated
funding deficiency as of the last day of the current plan year of any such
Benefit Plan, and (iv) since the most recent valuation date for each such
Benefit Plan, there has been no amendment or change

                                       24
<PAGE>

to such Benefit Plan that would increase the amount of benefit liabilities
thereunder and there has been no event or occurrence that would materially
increase or decrease the value of such assets or liabilities, other than as
would not have a Material Adverse Effect on the Company. Neither the Company nor
any ERISA Affiliate has incurred any liability or taken any action, and the
Company has no knowledge of any action or event, that could cause any one of
them to incur any liability under Section 412 of the Code or Title IV of ERISA
with respect to any "single-employer plan" (as defined in Section 4001(a)(15) of
ERISA) that is not a Benefit Plan.

              (g) All group health plans covering employees of the Company have
been operated in material compliance with the continuation coverage requirements
of Section 4980B of the Code (and any predecessor provisions) and Part 6 of
Title I of ERISA ("COBRA"), the provisions of law enacted by the Health
Insurance Portability and Accountability Act of 1996 ("HIPAA") and any similar
state Law.

              (h) Neither the Company nor any other "disqualified person" or
"party in interest," as defined in Section 4975 of the Code and Section 3(14) of
ERISA, respectively, has engaged in any "prohibited transaction," as defined in
Section 4975 of the Code or Section 406 of ERISA, with respect to any Benefit
Plan, nor have there been any fiduciary violations under ERISA which could
subject the Company, any ERISA Affiliate thereof (or any officer, director or
employee thereof) to any material penalty or Tax under Section 502(i) of ERISA
or Sections 4971 and 4975 of the Code.

              (i) With respect to any Benefit Plan: (i) no filing, application
or other matter is pending with the IRS, the PBGC, the United States Department
of Labor or any other governmental body, (ii) there is no action, suit or claim
pending or, to the Company's knowledge, Threatened, other than routine claims
for benefits and (iii) there are no outstanding material liabilities for Taxes,
penalties or fees.

              (j) Neither the Company nor any ERISA Affiliate has taken any
action, and the Company has no knowledge of any action or event, that could
cause any one of them to incur liability on account of a partial or complete
withdrawal, as defined in Sections 4203 and 4205 of ERISA, respectively, from
any Multiemployer Plan, or on account of any unpaid contributions to any
Multiemployer Plan.

              (k) Neither the execution and delivery of this Merger Agreement
nor the consummation of any or all of the contemplated transactions will: (i)
entitle any current or former employee of the Company or any ERISA Affiliate
thereof to severance pay, unemployment compensation or any similar payment, (ii)
accelerate the time of payment or vesting or increase the amount of any
compensation due to any such employee or former employee or (iii) directly or
indirectly result in any payment made or to be made to or on behalf of any
person to constitute a "parachute payment" within the meaning of Section 280G of
the Code.

                                       25
<PAGE>

              3.13 INTELLECTUAL PROPERTY. (a) Except as set forth in SCHEDULE
3.13(A) of the Company Disclosure Schedule: the Acquired Corporations own or
have the right to make, have made, use, sell and license all new and useful
inventions, discoveries and all letters patent (including, but not limited to,
all reissues, extensions, renewals, divisions and continuations thereof and
thereto (including continuations-in-part)) and all applications therefor; Use
(as such term is defined below), sell and license all copyrights, mask works,
trademarks and service marks and all registrations and applications for
registration thereof; Use, sell and license all trade secrets, know-how,
inventory, algorithms, methods, processes, protocols, methodologies, computer
software (including, but not limited to, source code in object code and source
code form), design, functional, technical and other specifications (for computer
software and other properties) and all other tangible and intangible proprietary
materials and information required for the conduct of the business of the
Company ("COMPANY INTELLECTUAL PROPERTY"). For the purposes of this Section 3.13
and of Section 4.18 hereof, "USE" (and, as the context requires, "USED") means
the right to use, execute, distribute, publish, reproduce, perform, display,
transmit, make available, make modifications and prepare derivative works.

              (b) With respect to the Intellectual Property which any Acquired
Corporation owns, and to the extent of such Acquired Corporation's rights
therein, after the Merger, the Surviving Corporation shall have the right to (i)
sue for (and otherwise assert claims for) and shall have no limitation on its
ability to recover damages and obtain any and all other appropriate remedies
available at law or equity for any past, present or future infringement,
misappropriation or other violation thereof (and settle all such suits, actions
and proceedings); (ii) seek appropriate protection therefor (including, where
appropriate, the right to seek copyright, trademark and service mark
registrations and letters patent in the United States and all other countries
and governmental divisions); and (iii) claim all rights and priority thereunder,
in each case, to the extent, if any, that such Acquired Corporation is entitled
to do so prior to the Merger notwithstanding any other provisions of this Merger
Agreement.

              (c) SCHEDULE 3.13(C) of the Company Disclosure Schedule sets forth
a complete and accurate list (i) in subsection 1, of all letters patent owned by
any Acquired Corporation; (ii) in subsection 2, of all U.S. federal trademark
and service mark registrations owned by any Acquired Corporation; (iii) in
subsection 3, of all material U.S. common law trademarks and service marks owned
by any Acquired Corporation; (iv) in subsection 4, of all U.S. letters patent
owned by any Acquired Corporation which are, as of the date hereof, subject to a
reissue proceeding in the U.S. Patent and Trademark Office (the "PTO"); (v) in
subsection 5, of all applications for U.S. letters patent filed by and subject
to ongoing prosecution by any Acquired Corporation; (vi) in subsection 6, of all
applications for letters patent in jurisdictions other than the United States
filed by and subject to ongoing prosecution by any Acquired Corporation; (vii)
in subsection 7, of all applications for U.S. federal trademark or service mark
registrations filed by and subject to ongoing prosecution by any Acquired
Corporation; (viii) in subsection 8, of all applications for trademark or
service mark registrations in jurisdictions other than the United States filed
by and subject to ongoing prosecution by any Acquired Corporation; and (ix) in
subsection 9, of all patent interference and similar proceedings in which any
Acquired Corporation is involved, including, but not limited

                                       26
<PAGE>

to, interferences and the like asserted against any Acquired Corporation and
interferences and the like which any Acquired Corporation has provoked.

              (d) Except as set forth in SCHEDULE 3.13(C) of the Company
Disclosure Schedule, to the knowledge of the Company, (i) all authorship in the
computer software, documentation, software design, technical and functional
software specifications created by any Acquired Corporation and Used in products
or services created by any Acquired Corporation is original or has not been
unlawfully copied or misappropriated and (ii) all computer software and related
documentation manuals contained or Used in products of (including documentation
and product and user manuals) or services to customers provided by any Acquired
Corporation are owned by or licensed to such Acquired Company, and such licenses
provide such Acquired Company with the right to sublicense or otherwise
authorize Use of the licensed subject matter to their customers and authorized
third party users.

              (e) (i) Except for third parties which have rights pursuant to the
agreements set forth in SCHEDULE 3.13(F) of the Company Disclosure Schedule and
except for rights granted to the customers of any Acquired Corporation, each
Acquired Corporation has the sole and exclusive right to Use, sell and license
each of the copyrights owned by such Acquired Corporation and to make, Use, sell
and license each item of Intellectual Property listed in SCHEDULE 3.13 of the
Company Disclosure Schedule, subsections 1 and 2 hereto (the foregoing
collectively referred to as "COMPANY-OWNED IP REGISTRATIONS") and (ii) except as
set forth in SCHEDULE 3.13(C) of the Company Disclosure Schedule, the Company
has no knowledge that any of the Company-Owned IP Registrations are invalid,
unenforceable or not subsisting. With the exception of copyright rights, and
with the exception of Company-Owned IP Registrations no longer used by the
Company or an Acquired Corporation, all material Company-Owned IP Registrations
have been and currently remain duly registered with or issued by the appropriate
governmental agency of the United States or of foreign countries as indicated in
SCHEDULE 3.13(C) of the Company Disclosure Schedule, subsections 1 and 2 hereto,
and all required maintenance and annuity fees have been paid in full to and all
declarations required pursuant to 15 U.S.C. Sections 1058 and 1065 (and foreign
counterparts to the same) have been accepted by, or timely submitted to, the
proper Governmental Authority.

              (f) (i) SCHEDULE 3.13(F) of the Company Disclosure Schedule sets
forth a complete and accurate list of the material agreements, including, but
not limited to, material license agreements, and of all parties thereto under
which any Acquired Corporation obtains or is the beneficiary of any license or
right to use any Intellectual Property right of any third party (singularly or
collectively, a "LICENSED-IN AGREEMENT" or the "LICENSED-IN AGREEMENTS") with
the exception of off-the-shelf software licensed by any Acquired Corporation and
(ii) SCHEDULE 3.13(F) of the Company Disclosure Schedule sets forth a complete
and accurate list of the material agreements, including, but not limited to,
license agreements, to which any Acquired Corporation is a party and pursuant to
which a third party is authorized to Use any of the Intellectual Property rights
of any Acquired Corporation.

              (g) Except as set forth in SCHEDULE 3.13(G) to the Company
Disclosure Schedule, each of the copyrights owned by any Acquired Corporation
and each item of Intellectual

                                       27
<PAGE>

Property listed in the Schedules to the Company Disclosure Letter delivered
pursuant to Section 3.13(c) hereto (the "COMPANY-OWNED IP") (i) is free and
clear of any attachments, liens, security interests, UCC filings or any other
encumbrances; (ii) is not subject to any outstanding judicial order, decree,
judgment or stipulation or to any agreement restricting the scope of any
Acquired Corporation's Use thereof; and (iii) together with each item of
Intellectual Property which such Acquired Corporation has a right to Use or
practice pursuant to one or more Licensed-In Agreements, is not subject to any
suits, actions, claims or demands of any third party and no action or
proceeding, whether judicial, administrative or otherwise, has been instituted,
is pending or, to the Company's knowledge, Threatened which challenges or
affects the rights of such Acquired Corporation in the same.

              (h) Except as set forth on SCHEDULE 3.13(H) of the Company
Disclosure Schedule, (i) no Acquired Corporation has received any claim or any
cease and desist or equivalent letter regarding, or any other notice of any
allegation to the effect that any of their products, software, apparatus,
methods or services which such Acquired Corporation makes, Uses, sells, offers
or provides infringes upon, misappropriates or otherwise violates the
intellectual property of any third party; (ii) the Company has no knowledge of
any unauthorized Use by, unauthorized disclosure to or by or infringement,
misappropriation or other violation of any Company Intellectual Property by any
current or former officer, employee, independent contractor, consultant or any
other agent of any Acquired Corporation (a "COMPANY AGENT" or the "COMPANY
AGENTS") or by any third party, other than, with respect to such third parties,
such disclosures, infringements, misappropriations and violations as would not,
individually or in the aggregate, have a Material Adverse Effect on the Company;
(iii) no Acquired Corporation has entered into any agreement to indemnify any
third party against any claim of infringement, misappropriation or other
violation of Intellectual Property rights other than indemnification provisions
contained in purchase orders, customer agreements, Licensed-In Agreements or
software licenses arising in the ordinary course of business; and (iv) since its
formation, no Acquired Corporation has been charged in any suit, action or
proceeding with, or has charged others with, unfair competition, infringement,
misappropriation, wrongful use of or any other violation or improper or illegal
activity with respect to or affecting Intellectual Property or with claims
contesting the validity, ownership or right to make, Use, sell, license or
dispose of Intellectual Property.

              (i) To the knowledge of the Company, (a) all computer software
created by employees of the Acquired Corporations within the scope of their
employment by any such Acquired Corporation and used in the products or services
of any Acquired Corporation and all original copyrightable authorship therein is
owned by an Acquired Corporation; (b) all rights in all inventions and
discoveries made, developed or conceived by Company Agents during the course of
their employment (or other retention) by an Acquired Corporation and material to
the business of an Acquired Corporation or made, written, developed or conceived
with the use or assistance of an Acquired Corporation's facilities or resources
and which are the subject of one or more issued letters patent or applications
for letters patent have been assigned in writing to an Acquired Corporation; (c)
the policy of the Acquired Corporation requires each employee of an Acquired
Corporation to sign documents confirming that he or she assign to an Acquired
Corporation all Intellectual Property rights made, written, developed or
conceived by him or her during the course of his or her

                                       28
<PAGE>

employment (or other retention) by an Acquired Corporation and relating to the
business of an Acquired Corporation or made, written, developed or conceived
with the use or assistance of an Acquired Corporation's facilities or resources
to the extent that ownership of any such Intellectual Property rights does not
vest in an Acquired Corporation by operation of law, and to the extent that any
employee of an Acquired Corporation has not executed such documents, the Company
will require such employee to execute such documents at or before the Closing;
and (d) all Intellectual Property rights made, written, developed or conceived
by each Company Agent during the course of his or her retention by an Acquired
Corporation and material to the business of an Acquired Corporation have been
assigned or licensed to an Acquired Corporation.

              (j) The Intellectual Property owned by, licensed to or Used by the
Acquired Corporations prior to the execution of this Merger Agreement will
enable the Surviving Corporation subsequent to the Effective Time to fully carry
on all aspects of the business of the Acquired Corporations as and to the extent
such business was carried on by the Acquired Corporations prior to the Merger.

              (k) The Company believes that the Acquired Corporations have taken
all reasonable and practicable steps to protect and preserve the confidentiality
of all Intellectual Property (including, without limitation, trade secrets and
source codes, but excluding letters patent, inventory, copyrights, mask works,
trademarks and service marks and registrations and applications for registration
thereof) ("CONFIDENTIAL COMPANY IP INFORMATION"). The Company believes that all
Use by the Acquired Corporations of Confidential Company IP Information not
owned by the Acquired Corporations has been and is pursuant to the terms of a
written agreement between an Acquired Corporation and the owner of such
Confidential Company IP Information, or is otherwise lawful.

              (l) The Company will do all acts necessary or reasonably requested
to be done by Veeco in order to perfect title to the Intellectual Property in
the Surviving Corporation, including, without limitation, to execute and deliver
any and all oaths, assignments, affidavits and other documents in form and
substance as may be requested by Veeco; to communicate all facts known to the
Company relating to the Intellectual Property; to furnish Veeco with any and all
information, documents, materials or records of any kind in its control relating
to the Intellectual Property; and to discharge its obligations under this
subsection (l) promptly but in any event within such time period(s) as is
required to allow the Surviving Corporation to timely preserve or assert its
rights in connection with the maintenance, enforcement or defense of the rights
in Intellectual Property assigned to the Surviving Corporation hereunder. The
rights provided in this subsection (l) are cumulative of any rights of Veeco in
this Merger Agreement and shall be deemed transferable in whole or in part by
Veeco to its successors and assigns.

              3.14 ENVIRONMENTAL MATTERS. (a) The Acquired Corporations'
ownership and operation of their business is and has been in material compliance
with all Environmental Laws. The Acquired Corporations have obtained all
approvals necessary or required under all applicable Environmental Laws for the
ownership and operation of their business, all such approvals are in effect, the
Acquired Corporations have not received written notice of any action to revoke
or modify

                                       29
<PAGE>

any of such approvals, and, to the Company's knowledge the ownership and
operation of the Acquired Corporations' business is and has been in material
compliance with all terms and conditions thereof. The Acquired Corporations have
not received notice of any pending or Threatened claim or investigation by any
Governmental Authority or any other Person concerning potential liability of any
of the Acquired Corporations under Environmental Laws in connection with the
ownership or operation of its business. To the Company's knowledge, there has
not been a Release of any Hazardous Substance by any Acquired Corporation, nor
by any other Person at, upon, in, from or under any premises now or previously
owned or occupied by an Acquired Corporation or upon which its assets are or
were located at any time during an Acquired Corporation's ownership and/or
occupancy thereof. No Acquired Corporation's real properties (whether owned or
leased) is currently, and, to the Company's knowledge, no such real property has
been, used as a treatment, storage or disposal facility for Hazardous
Substances; and no Hazardous Substances are present on any such real property,
except in such quantities as are handled in material compliance with all
applicable manufacturer's instructions and in material compliance with all
applicable Environmental Laws and as are used in the operation of the Acquired
Corporations' business.

              (b) The Company has (i) provided or made available to Veeco all
test results, records, notices, disclosures and reports in an Acquired
Corporation's possession with respect to an Acquired Corporation's real property
(whether owned or leased) and any real property previously owned or occupied by
an Acquired Corporation, including all correspondence with any Governmental
Authority, concerning health, safety and/or environmental issues or concerns and
(ii) made all disclosures, including notice of a Release or Threatened Release
of a Hazardous Substance, required of an Acquired Corporation under any
Environmental Law.

              (c) No Acquired Corporation has received notice, or otherwise
obtained knowledge, of the existence of any circumstances or conditions that
have a reasonable likelihood of resulting in any damages for which it could be
liable arising pursuant to any Environmental Law.

              (d) To the Company's knowledge, no Acquired Corporation has
material liability with respect to any Hazardous Substance which it has
transported or arranged for the transportation of to premises not owned or
operated by an Acquired Corporation.

              3.15 LABOR RELATIONS. The Acquired Corporations are conducting
their businesses in material compliance with all applicable Laws relating to
employment or labor, including, without limitation, those Laws relating to
wages, hours, collective bargaining, unemployment insurance, workers'
compensation and equal employment opportunity, except where the failure to be in
compliance would not, individually or in the aggregate, have a Material Adverse
Effect on the Company. No union or other collective bargaining unit has been
certified as representing any of the employees of any Acquired Corporation, nor
has any Acquired Corporation agreed to recognize any union or other collective
bargaining unit. The Company has complied with all material terms of the
collective bargaining agreement between the Company and Local 342, International
Union of Electronic, Electrical, Salaried, Machine & Furniture Workers. There
are no labor disputes pending or Threatened involving strikes, work stoppages,
slowdowns or lockouts. There are no grievance proceedings or claims of unfair
labor practices filed or, to the Company's knowledge, Threatened

                                       30
<PAGE>

to be filed with the National Labor Relations Board against any Acquired
Corporation. There is no union representation or organizing effort pending or
Threatened against any Acquired Corporation.

              3.16 BROKERS AND FINDERS. Except for Lehman Brothers, Inc.
("COMPANY BROKER") previously disclosed to Veeco, no broker, finder, agent or
similar intermediary has acted on the Company's behalf in connection with this
Merger Agreement or the transactions contemplated hereby, and there are no
brokerage commissions, finders' fees or similar fees or commissions payable in
connection therewith based on any Contract with the Company or any action taken
by the Company. The Company shall pay all fees and disbursements of the Company
Broker.

              3.17 ACCURACY OF REPRESENTATIONS AND WARRANTIES. All
representations and war ranties of the Company set forth in this Merger
Agreement and in any agreement, certificate or other document required to be
delivered or given to Veeco or Acquisition by the Company pursuant to this
Merger Agreement will be true and correct at the Closing Date with the same
force and effect as if made on that date.

              3.18 POOLING OF INTERESTS; REORGANIZATION. Neither the Company
nor, to the knowledge of the Company, any of its directors, officers or
stockholders has taken or failed to take any action which (i) would interfere
with Veeco's ability to account for the Merger as a "pooling of interests", or
(ii) could reasonably be expected to cause the Merger to fail to qualify as a
reorganization as described in Section 368(a) of the Code with respect to which
no gain or loss will be recognized by a stockholder of the Company on the
conversion of Company Common Stock into Veeco Shares pursuant to the Merger
(except with respect to any cash received in lieu of a fractional share).

              3.19 BOARD OF RECOMMENDATION. The Board of Directors of the
Company has, by a unanimous vote of directors present at a meeting of such Board
or Directors duly held on February 28, 2000, approved and adopted this Merger
Agreement, the Merger and the other transactions contemplated hereby, and prior
to the date hereof has resolved to recommend that the holders of Company Common
Stock approve and adopt this Merger Agreement, the Merger and the other
transactions contemplated hereby.

              3.20 FAIRNESS OPINION. The Company has received the opinion of
Lehman Brothers, Inc. to the effect that on the date of delivery thereof, the
Merger Consideration was fair from a financial point of view to the stockholders
of the Company.

              3.21 STATE ANTITAKEOVER STATUTES. The Company has granted all
approvals and taken all other steps necessary to exempt the Company Stockholder
Voting Agreement, the Merger and the other transactions contemplated hereby from
the requirements and provisions of Section 203 of the DGCL and other state
antitakeover statutes or regulations to the extent applicable such that none of
the provisions of such "business combination," "moratorium," "control share," or
other state antitakeover statute or regulation (x) prohibits or restricts the
Company's ability to perform its obligations under this Merger Agreement or its
ability to consummate the Merger and the other transactions contemplated hereby,
(y) would have the effect of invalidating or voiding this Merger

                                       31
<PAGE>

Agreement or any provisions hereof, or (z) would subject Veeco to any material
impediment or condition in connection with the exercise of any of their
respective rights under this Merger Agreement.

IV.               REPRESENTATIONS AND WARRANTIES OF VEECO AND ACQUISITION.

              Veeco and Acquisition, jointly and severally, hereby represent and
warrant to the Company that, except as set forth in the Veeco SEC Documents, or
in a specific subsection of the Veeco Disclosure Schedule:

              4.01 ORGANIZATION OF VEECO AND ACQUISITION. (a) Each of Veeco and
Acquisition is a corporation duly organized, validly existing and in good
standing (in jurisdictions which recognize such concept) under the Laws of its
jurisdiction of incorporation, and is qualified or licensed as a foreign
corporation to do business in each other jurisdiction where the failure to so
qualify would have a Material Adverse Effect upon its business or operations.
Each of Veeco and Acquisition has all requisite corporate power to own, operate
and lease its assets and to carry on its business as now being conducted. Veeco
has made available to the Company complete and correct copies of its Certificate
of Incorporation and By-Laws and the Certificate of Incorporation and ByLaws of
Acquisition, in each case as amended to the date hereof.

              (b) Each of Veeco and Acquisition has full corporate power and
authority to execute, deliver and perform this Merger Agreement and, in the case
of Acquisition, the Certificate of Merger, and to consummate the transactions
contemplated hereby. The execution, delivery and performance of this Merger
Agreement, the Certificate of Merger and all other documents and agreements to
be delivered pursuant hereto and the consummation of the transactions
contemplated hereby have been duly and validly authorized by the boards of
directors of Veeco and Acquisition, and, except for the approval by the
stockholders of Veeco of the issuance of the Veeco Shares pursuant to the
Merger, no other corporate proceedings on the part of Veeco or Acquisition are
necessary to authorize this Merger Agreement, the Certificate of Merger and any
related documents or agreements or to consummate the transactions contemplated
hereby. This Merger Agreement has been duly and validly executed and delivered
by Veeco and Acquisition, and the Certificate of Merger, when executed at the
Closing, will be duly and validly executed and delivered by Acquisition. This
Merger Agreement, assuming the due authorization, execution and delivery by each
other party hereto, constitutes a legal, valid and binding agreement of both
Veeco and Acquisition, enforceable in accordance with its terms, and the
Certificate of Merger, when executed by Veeco and Acquisition at the Closing,
assuming the due authorization, execution and delivery by each other party
hereto, will be legal, valid and binding agreements of Acquisition, enforceable
in accordance with their terms, except as such enforceability may be limited by
bankruptcy, moratorium, insolvency, reorganization, fraudulent conveyance or
other laws affecting the enforcement of creditors' rights generally or by
general equitable principles.

              (c) Acquisition is a newly formed wholly-owned first tier
Subsidiary of Veeco and has conducted and will conduct no business or activity
or has incurred or will incur any liability or obligation, other than hereunder
or in accordance with the Merger.

                                       32
<PAGE>

              4.02 CAPITALIZATION. (a) The authorized capital stock of Veeco
consists of 25,000,000 Veeco Shares, of which 17,627,701 were issued and
outstanding as of December 31, 1999, and 500,000 shares of preferred stock, none
of which are outstanding. All of the outstanding Veeco Shares have been duly
authorized and validly issued and are fully paid and nonassessable and were
issued in conformity with applicable laws.

              (b) As of December 31, 1999, 2,119,155 Veeco Shares were issuable
upon the exercise of options granted under the Veeco Instruments Inc. Amended
and Restated 1992 Employees' Stock Option Plan and under the Amended and
Restated Veeco Instruments Inc. 1994 Stock Option Plan for Outside Directors,
and 5,182 Veeco Shares were issuable upon the exercise of options granted to
shareholders of Wyko Corporation in the merger of a wholly-owned subsidiary of
Veeco with and into Wyko Corporation in July 1997 (collectively, the "VEECO
OPTIONS"). Except for the Veeco Options and except pursuant to the Veeco
Instruments Inc. Employees Stock Purchase Plan, there are no outstanding Equity
Securities, or other obligations to issue or grant any rights to acquire any
Equity Securities, of Veeco, or any Contracts to restructure or recapitalize
Veeco. There are no outstanding Contracts of Veeco to repurchase, redeem or
otherwise acquire any Equity Securities of Veeco. All outstanding Equity
Securities of Veeco have been duly authorized and validly issued in conformity
with applicable laws.

              4.03 NON-CONTRAVENTION. (a) Except as set forth on SCHEDULE
4.03(A) to the Veeco Disclosure Schedule, the execution, delivery and
performance by Veeco and Acquisition of this Merger Agreement and the
consummation of the transactions contemplated hereby will not (i) violate any
provision of the Certificate of Incorporation or By-Laws or other organizational
documents of Veeco or Acquisition, (ii) violate, or be in conflict with, or
constitute a default (or an event which, with notice or lapse of time or both,
would constitute a default) under, or result in or provide the basis for the
termination of, or accelerate the performance required by, or excuse performance
by any Person of any of its obligations under, or cause the acceleration of the
maturity of any debt or obligation pursuant to, or result in the creation or
imposition of any Lien upon any property or assets of Veeco under, any material
Contract to which Veeco or Acquisition is a party or by which any of their
respective property or assets are bound, or to which any of the property or
assets of Veeco or Acquisition is subject, except for Contracts wherein the
other party thereto has consented to the consummation of this transaction, (iii)
violate any Law applicable to Veeco or Acquisition or (iv) violate or result in
the revocation or suspension of any material license, permit, certificate,
consent or approval from a Governmental Authority that is necessary for the
business and operations of Veeco or Acquisition.

              (b) No filing or registration with, or permit, authorization,
consent or approval of, or notification or disclosure to, any Governmental
Authority is required by Veeco or Acquisition in connection with the execution
and delivery of this Merger Agreement or the consummation by Veeco or
Acquisition of the Merger and the other transactions contemplated hereby, except
(i) in connection with the applicable requirements of the HSR Act, (ii) in
connection with the provisions of the Securities Act and the rules and
regulations promulgated thereunder, and the Exchange Act and the rules and
regulations promulgated thereunder, (iii) the filing of appropriate merger
documents as required by the DGCL, (iv) such consents, approvals, orders,
permits,

                                       33
<PAGE>

authorizations, registrations, or declarations and filings as may be required
under the Blue Sky laws of various states.

              4.04 REPORTS. All documents required to be filed as exhibits to
the Veeco SEC Documents have been so filed. All Veeco SEC Documents were filed
as and when required by the Exchange Act or the Securities Act, as applicable.
The Veeco SEC Documents include all statements, reports and documents required
to be filed by Veeco pursuant to the Exchange Act and the Securities Act. As of
their respective filing dates, the Veeco SEC Documents complied in all material
respects with the requirements of the Exchange Act and the Securities Act, as
applicable, and, as of their respective filing dates, none of the Veeco SEC
Documents contained any untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary to make the
statements made therein, in light of the circumstances in which they were made,
not misleading, except to the extent corrected by a subsequently filed Veeco SEC
Document. None of Veeco's subsidiaries is required to file any statements,
reports or documents with the SEC. The financial statements of Veeco and its
subsidiaries, including the notes thereto, included in the Veeco SEC Documents
(the "VEECO FINANCIAL STATEMENTS"), complied in all material respects with
applicable accounting requirements and with the published rules and regulations
of the SEC with respect thereto as of their respective dates (except as may be
indicated in the notes thereto or, in the case of unaudited statements included
in Quarterly Reports on Form 10-Q, as permitted by Form 10- Q of the SEC). The
Veeco Financial Statements fairly present the consolidated financial condition,
operating results and cash flows of Veeco and its subsidiaries at the dates and
during the periods indicated therein in accordance with GAAP consistently
applied (subject, in the case of unaudited statements, to normal, recurring
year-end adjustments and additional footnote disclosures). There has been no
material change in Veeco's accounting policies except as described in the notes
to the Veeco Financial Statements. At all times since January 1, 1999 Veeco has
(i) filed as and when due all documents required to be filed with NASDAQ, and
(ii) otherwise timely performed all of Veeco's obligations pursuant to the rules
and regulations of NASDAQ.

              4.05 ABSENCE OF CERTAIN CHANGES. Except as disclosed in the Veeco
SEC Documents, since September 30, 1999 (the "VEECO BALANCE SHEET DATE"), Veeco
and its Subsidiaries have conducted their business in the ordinary course
consistent with past practice and there has not occurred: (i) any change, event
or condition (whether or not covered by insurance) that has resulted in, or
might reasonably be expected to result in, a Material Adverse Effect to Veeco;
(ii) any acquisition, sale or transfer of any material asset of Veeco or any of
its subsidiaries other than in the ordinary course of business and consistent
with past practice; (iii) any change in accounting methods or practices
(including any change in depreciation or amortization policies or rates) by
Veeco or any revaluation by Veeco of any of its assets; (iv) any declaration,
setting aside, or payment of a dividend or other distribution with respect to
the shares of Veeco, or any direct or indirect redemption, purchase or other
acquisition by Veeco of any of its shares of capital stock; (v) any material
contract entered into by Veeco or any of its subsidiaries, other than in the
ordinary course of business, or any material amendment or termination of, or
default under, any material contract to which Veeco or any of its subsidiaries
is a party or by which it or any of them is bound; (vi) any action or failure to
act that could reasonably be expected to cause the Merger to fail to qualify as
a reorganization as described in Section 368(a) of the Code with respect to
which no gain

                                       34
<PAGE>

or loss will be recognized by a stockholder of the Company on the conversion of
Company Common Stock into Veeco Shares pursuant to the Merger (except with
respect to any cash received in lieu of a fractional share); or (vii) any
agreement by Veeco or any of its subsidiaries to do any of the things described
in the preceding clauses (i) through (vi) (other than negotiations with the
Company and its representatives regarding the transactions contemplated by this
Merger Agreement).

              4.06 NO UNDISCLOSED LIABILITIES. Neither Veeco nor any of its
subsidiaries has any obligations or liabilities of any nature (matured or
unmatured, fixed or contingent) which are material to Veeco and its
subsidiaries, taken as a whole, other than those (i) set forth or adequately
provided for in the Balance Sheet of Veeco and its subsidiaries included in
Veeco's Quarterly Report on Form 10-Q for the period ended September 30, 1999
(the "VEECO BALANCE SHEET"), (ii) not required to be set forth on the Veeco
Balance Sheet under GAAP, (iii) incurred in the ordinary course of business
since the Veeco Balance Sheet Date and consistent with past practice or (iv)
which individually, or in the aggregate would not have a Material Adverse Effect
on Veeco.

              4.07 LITIGATION. Except as disclosed in the Veeco SEC Documents,
(i) there is no private or governmental action, suit, proceeding, claim,
arbitration or investigation pending before any agency, court or tribunal,
foreign or domestic, or, to the knowledge of Veeco or any of its Subsidiaries,
Threatened against Veeco or any of its Subsidiaries or any of their respective
properties or any of their respective officers or directors (in their capacities
as such) that, individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect on Veeco, and (ii) there is no judgment, decree
or order against Veeco or any of its Subsidiaries or, to the knowledge of Veeco
or any of its Subsidiaries, any of their respective directors or officers (in
their capacities as such) that could prevent, enjoin, alter or materially delay
any of the transactions contemplated by this Merger Agreement, or that could
reasonably be expected to have a Material Adverse Effect on Veeco.

              4.08 RESTRICTIONS ON BUSINESS ACTIVITIES. There is no material
agreement, judg ment, injunction, order or decree binding upon Veeco or any of
its Subsidiaries which has or reasonably could be expected to have the effect of
prohibiting or materially impairing any current or future business practice of
Veeco or any of its Subsidiaries, any acquisition of property by Veeco or any of
its Subsidiaries or the conduct of business by Veeco or any of its Subsidiaries
as currently conducted or as proposed to be conducted by Veeco or any of its
Subsidiaries.

              4.09 GOVERNMENTAL AUTHORIZATION. Veeco and each of its
Subsidiaries have obtained each federal, state, county, local or foreign
governmental consent, license, permit, grant, or other authorization of a
Governmental Authority that is required for the operation of Veeco's or any of
its Subsidiaries' business or the holding of any interest in its properties
(collectively, the "VEECO AUTHORIZATIONS"), and all of such Veeco Authorizations
are in full force and effect, except where the failure to obtain or have any of
such Veeco Authorizations could not reasonably be expected to have a Material
Adverse Effect on Veeco.

              4.10 TAXES. Veeco and each of its Subsidiaries have filed or
caused to be filed on a timely basis all Tax Returns that are or were required
to be filed by Veeco and/or any of its

                                       35
<PAGE>

Subsidiaries, either separately or as part of an affiliated group of
corporations, pursuant to the Laws of any Governmental Authority with taxing
power over Veeco and/or any of its Subsidiaries or their assets and business.
All Tax Returns filed by Veeco or any of its Subsidiaries are true, correct and
complete. Veeco and each of its Subsidiaries have paid all Taxes that have
become due by it any pursuant to those Tax Returns, or otherwise, or pursuant to
any assessment received by Veeco and/or any Subsidiary thereof, except such
Taxes, if any, as are being contested in good faith and as to which adequate
reserves have been provided on the Veeco Balance Sheet. All Taxes that Veeco or
any of its Subsidiaries is, or was, required by Law to withhold and collect have
been duly withheld and collected and, to the extent required, have been paid to
the appropriate Governmental Authority. There is no agreement, plan, arrangement
or other contract covering any employee or independent contractor of Veeco or
any of its Subsidiaries that could give rise to the payment of any amount that
could not be deductible by Veeco or such Subsidiary pursuant to Section 280G or
Section 162(m) of the Code. The charges, accruals and reserves with respect to
Taxes on the Veeco Balance Sheet with respect to Veeco and each of its
Subsidiaries (excluding any provision for deferred income taxes established to
reflect timing differences between book and tax income) for all tax periods (or
portions thereof) ending on or before the Closing Date (including any period for
which no Tax Return has yet been filed) are adequate for GAAP purposes.

              4.11 POOLING OF INTERESTS; REORGANIZATION. Neither Veeco nor any
of its Subsidiaries nor, to the knowledge of Veeco, any of their respective
directors, officers or stockholders has taken or failed to take any action which
(i) would interfere with Veeco's ability to account for the Merger as a "pooling
of interests", or (ii) could reasonably be expected to cause the Merger to fail
to qualify as a reorganization as described in Section 368(a) of the Code with
respect to which no gain or loss will be recognized by a stockholder of the
Company on the conversion of Company Common Stock into Veeco Shares pursuant to
the Merger (except with respect to any cash received in lieu of a fractional
share).

              4.12 BROKERS AND FINDERS. Except for Banc of America Securities
LLC ("VEECO'S BROKER") or as previously disclosed to the Company, no broker,
finder, agent or similar intermediary has acted on Veeco's or Acquisition's
behalf in connection with this Merger Agreement or the transactions contemplated
hereby, and there are no brokerage commissions, finders' fees or similar fees or
commissions payable in connection therewith based on any Contract with Veeco or
Acquisition or any action taken by Veeco or Acquisition. Veeco shall pay all
fees and disbursements of Veeco's Broker.

              4.13 ACCURACY OF REPRESENTATIONS AND WARRANTIES. All
representations and war ranties of Veeco and Acquisition set forth in this
Merger Agreement and in any agreement, certificate or other document required to
be delivered or given to the Company by Veeco or Acquisition pursuant to this
Merger Agreement will be true and correct at the Closing Date with the same
force and effect as if made on that date.

              4.14 BOARD RECOMMENDATION. The Board of Directors of Veeco has, by
a unanimous vote at a meeting of such Board of Directors duly held on February
28, 2000, approved and adopted this Merger Agreement, the Merger and the other
transactions contemplated hereby, and

                                       36
<PAGE>

prior to the date hereof has resolved to recommend that the holders of Veeco
Shares approve and adopt this Merger Agreement, the Merger and the other
transactions contemplated hereby.

              4.15 FAIRNESS OPINION. Veeco has received the opinion of Banc of
America Securities LLC to the effect that on the date of delivery thereof, the
Merger Consideration was fair from a financial point of view to Veeco.

              4.16 COMPLIANCE WITH LAWS. Each of Veeco and its Subsidiaries has
complied with, are not in violation of, and have not received any notices of
violation with respect to, any federal, state, local or foreign statute, Law or
regulation with respect to the conduct of its business, or the ownership or
operation of its business, except for such violations or failures to comply as
could not be reasonably expected to have a Material Adverse Effect on Veeco.

              4.17 ENVIRONMENTAL MATTERS. (a) Veeco and its Subsidiaries'
ownership and operation of their business is and has been in material compliance
with all Environmental Laws. Veeco and its Subsidiaries have obtained all
approvals necessary or required under all applicable Environmental Laws for the
ownership and operation of their business, all such approvals are in effect,
they have not received written notice of any action to revoke or modify any of
such approvals, and, to Veeco's knowledge the ownership and operation of their
business is and has been in material compliance with all terms and conditions
thereof. Veeco and its Subsidiaries have not received notice of any pending or
Threatened claim or investigation by any Governmental Authority or any other
Person concerning potential liability of any of Veeco and its Subsidiaries under
Environmental Laws in connection with the ownership or operation of its
business. To Veeco's knowledge, there has not been a Release of any Hazardous
Substance by Veeco or its Subsidiaries, nor by any other Person at, upon, in,
from or under any premises now or previously owned or occupied by Veeco or its
Subsidiaries or upon which any of their assets are or were located at any time
during Veeco or its Subsidiaries' ownership and/or occupancy thereof. No real
properties of Veeco or any Subsidiary (whether owned or leased) is currently,
and, to Veeco's knowledge, no such real property has been, used as a treatment,
storage or disposal facility for Hazardous Substances; and no Hazardous
Substances are present on any such real property, except in such quantities as
are handled in material compliance with all applicable manufacturer's
instructions and in material compliance with all applicable Environmental Laws
and as are used in the operation of the business.

              (b) Veeco has (i) provided or made available to the Company all
test results, records, notices, disclosures and reports in Veeco or its
Subsidiaries' possession with respect to real property of Veeco or any
Subsidiary (whether owned or leased) and any real property previously owned or
occupied by Veeco or its Subsidiaries, including all correspondence with any
Governmental Authority concerning health, safety and/or environmental issues or
concerns and (ii) made all disclosures, including notice of a Release or
Threatened Release of a Hazardous Substance, required of Veeco or its
Subsidiaries under any Environmental Law.

              (c) Neither Veeco nor any Subsidiary thereof has received notice,
or otherwise obtained knowledge, of the existence of any circumstances or
conditions that have a

                                       37
<PAGE>

reasonable likelihood of resulting in any damages for which it could be liable
arising pursuant to any Environmental Law.

              (d) To Veeco's knowledge, neither Veeco nor any Subsidiary thereof
has material liability with respect to any Hazardous Substance which it has
transported or arranged for the transportation of to premises not owned or
operated by Veeco or any such Subsidiary.

              4.18 INTELLECTUAL PROPERTY RIGHTS. (a) Veeco or a Subsidiary
thereof owns or has the right to make, have made, use, sell and license all new
and useful inventions, discoveries and all letters patent (including, but not
limited to, all reissues, extensions, renewals, divisions and continuations
thereof and thereto (including continuations-in-part)) and all applications
therefor; Use, sell and license all copyrights, mask works, trademarks and
service marks and all registrations and applications for registration thereof;
Use, sell and license all trade secrets, know-how, inventory, algorithms,
methods, processes, protocols, methodologies, computer software (including, but
not limited to, source code in object code and source code form), design,
functional, technical and other specifications (for computer software and other
properties) and all other tangible and intangible proprietary materials and
information required for the conduct of the business of Veeco and its
Subsidiaries ("VEECO INTELLECTUAL PROPERTY").

              (b) To the knowledge of Veeco (i) all authorship in the computer
software, documentation, software design, technical and functional software
specifications created by Veeco or any Subsidiary thereof and Used in products
or services created by Veeco or any such Subsidiary is original or has not been
unlawfully copied or misappropriated and (ii) all computer software and related
documentation manuals contained or Used in products of (including documentation
and product and user manuals) or services to customers provided by Veeco or any
Subsidiary are owned by or licensed to Veeco or such Subsidiary, and such
licenses provide Veeco or such Subsidiary with the right to sublicense or
otherwise authorize Use of the licensed subject matter to their customers and
authorized third party users.

              (c) (i) Except for third parties which have rights pursuant to
license agreements and similar agreements relating to the Veeco Intellectual
Property, and except for rights granted to the customers of Veeco or any
Subsidiary thereof, Veeco or a Subsidiary thereof has the sole and exclusive
right to Use, sell and license each of the copyrights owned by Veeco or any
Subsidiary thereof and to make, Use, sell and license each of the letters patent
owned by Veeco or a Subsidiary and each of the U.S. federal trademark and
service mark registrations owned by Veeco or a Subsidiary thereof (the foregoing
collectively referred to as "VEECO-OWNED IP REGISTRATIONS") and (ii) Veeco has
no knowledge that any of the Veeco-Owned IP Registrations are invalid,
unenforceable or not subsisting. With the exception of copyright rights, and
with the exception of Veeco-Owned IP Registrations no longer used by Veeco or
any Subsidiary thereof, all material Veeco-Owned IP Registrations have been and
currently remain duly registered with or issued by the appropriate governmental
agency of the United States or of foreign countries, and all required
maintenance and annuity fees have been paid in full to, and all declarations
required pursuant to 15 U.S.C. Sections 1058 and 1065 (and foreign counterparts
to the same) have been accepted by, or timely submitted to, the proper
Governmental Authority.

                                       38
<PAGE>

              (d) Each item of Veeco Intellectual Property owned by Veeco or a
Subsidiary thereof (the "VEECO-OWNED IP") (i) is free and clear of any
attachments, liens, security interests, UCC filings or any other encumbrances;
(ii) is not subject to any outstanding judicial order, decree, judgment or
stipulation or to any agreement restricting the scope of Veeco's or such
Subsidiary's Use thereof; and (iii) together with each item of Veeco
Intellectual Property which Veeco or such Subsidiary has a right to Use or
practice pursuant to one or more license or similar agreements, is not subject
to any suits, actions, claims or demands of any third party and no action or
proceeding, whether judicial, administrative or otherwise, has been instituted,
is pending or, to Veeco's knowledge, Threatened, which challenges or affects the
rights of Veeco or such Subsidiary in the same.

              (e) (i) Except as set forth in SCHEDULE 4.18(C)(I) of the Veeco
Disclosure Schedule, neither Veeco nor any Subsidiary thereof has received any
claim or any cease and desist or equivalent letter regarding, or any other
notice of any allegation to the effect that any of their products, software,
apparatus, methods or services which Veeco or such Subsidiary makes, Uses,
sells, offers or provides infringes upon, misappropriates or otherwise violates
the intellectual property of any third party; (ii) Veeco has no knowledge of any
unauthorized Use by, unauthorized disclosure to or by or infringement,
misappropriation or other violation of any of Veeco's Intellectual Property by
any current or former officer, employee, independent contractor, consultant or
any other agent of Veeco or any Subsidiary thereof (a "VEECO AGENT" or the
"VEECO AGENTS") or by any third party, other than such third party disclosures,
infringements, misappropriations and violations as would not, individually or in
the aggregate, have a Material Adverse Effect on Veeco; (iii) neither Veeco nor
any Subsidiary thereof has entered into any agreement to indemnify any third
party against any claim of infringement, misappropriation or other violation of
Veeco Intellectual Property rights other than indemnification provisions
contained in purchase orders, customer agreements, license or similar agreements
or software licenses arising in the ordinary course of business; and (iv) since
its formation, none of Veeco or any Subsidiary thereof has been charged in any
suit, action or proceeding with, or has charged others with, unfair competition,
infringement, misappropriation, wrongful use of or any other violation or
improper or illegal activity with respect to or affecting Veeco Intellectual
Property or with claims contesting the validity, ownership or right to make,
Use, sell, license or dispose of Veeco Intellectual Property.

              (f) To the knowledge of Veeco, (a) all computer software created
by employees of Veeco or a Subsidiary thereof within the scope of their
employment thereby and used in the products or services of Veeco or a Subsidiary
thereof and all original copyrightable authorship therein is owned by Veeco or a
Subsidiary thereof; (b) all rights in all inventions and discoveries made,
developed or conceived by Veeco Agents during the course of their employment (or
other retention) by Veeco or a Subsidiary thereof and material to the business
of Veeco or a Subsidiary thereof or made, written, developed or conceived with
the use or assistance of Veeco's or a Veeco Subsidiary's facilities or resources
and which are the subject of one or more issued letters patent or applications
for letters patent have been assigned in writing to Veeco or a Subsidiary
thereof; (c) the policy of Veeco or a Subsidiary thereof requires each employee
of Veeco or a Subsidiary thereof to sign documents confirming that he or she
assign to Veeco or a Subsidiary thereof all Veeco

                                       39
<PAGE>

Intellectual Property rights made, written, developed or conceived by him or her
during the course of his or her employment (or other retention) by Veeco or a
Subsidiary thereof and relating to the business of Veeco or a Subsidiary thereof
or made, written, developed or conceived with the use or assistance of Veeco's
or a Subsidiary's facilities or resources to the extent that ownership of any
such Veeco Intellectual Property rights does not vest in Veeco or a Subsidiary
thereof by operation of Law, and (d) all Veeco Intellectual Property rights
made, written, developed or conceived by each Veeco Agent during the course of
his or her retention by Veeco or a Subsidiary thereof and material to the
business of Veeco or a Subsidiary thereof have been assigned or licensed to
Veeco or such Subsidiary thereof.

              (g) Veeco believes that Veeco and its Subsidiaries have taken all
reasonable and practicable steps to protect and preserve the confidentiality of
all Veeco Intellectual Property (including, without limitation, trade secrets
and source codes, but excluding letters patent, inventory, copyrights, mask
works, trademarks and service marks and registrations and applications for
registration thereof) ("VEECO CONFIDENTIAL IP INFORMATION"). Veeco believes that
all Use by Veeco and its Subsidiaries of Veeco Confidential IP Information not
owned by Veeco and its Subsidiaries has been and is pursuant to the terms of a
written agreement between Veeco or a Subsidiary thereof and the owner of such
Confidential Information, or is otherwise lawful.

V.                COVENANTS.

              5.01 ACCESS. Between the date hereof and the Closing Date, the
Company shall, and shall cause each of the other Acquired Corporations to,
provide Veeco, Acquisition and each of their authorized Representatives with
reasonable access to the properties, books, records, Tax Returns, Contracts,
information, documents and personnel of the Acquired Corporations as they relate
to the Acquired Corporations' business as Veeco or Acquisition may reasonably
request for the purpose of making such investigation of the business,
properties, financial condition and results of operations of the Acquired
Corporations' business as Veeco or Acquisition may deem appropriate or
necessary. Between the date hereof and the Closing Date, Veeco shall, and shall
cause its Subsidiaries to, provide the Company and each of its authorized
Representatives with reasonable access to the properties, books, records, Tax
Returns, Contracts, information, documents and personnel of Veeco and its
Subsidiaries as they relate to Veeco's and its Subsidiaries' businesses as the
Company may reasonably request for the purpose of making such investigation of
the business, properties, financial condition and results of operations of
Veeco's and its Subsidiaries' businesses as the Company may deem appropriate or
necessary. Notwithstanding anything to the contrary herein, if any party is
prohibited from disclosing confidential information to another party by Law or
by preexisting confidentiality obligations, then such party shall inform the
other party of such prohibition and the parties shall work together to resolve
any related due diligence matters without violating such Laws or confidentiality
obligations, including using reasonable best efforts to obtain third party
consents to such disclosure, if appropriate.

              5.02 CONDUCT OF THE BUSINESS OF THE PARTIES PENDING THE CLOSING
DATE. (a) Except as otherwise expressly permitted by this Merger Agreement,
between the date hereof and the Closing Date, the Company shall not, and shall
cause the other Acquired Corporations not to, without the

                                       40
<PAGE>

prior consent of Veeco, take any affirmative action, or fail to take any
reasonable action within their control, as a result of which any of the changes
or events listed in Section 3.11 of this Merger Agreement is reasonably likely
to occur.

              (b) Except as otherwise expressly permitted by this Merger
Agreement, between the date hereof and the Closing Date, Veeco and Acquisition
shall not, without the prior consent of the Company take any affirmative action,
or fail to take any reasonable action within their control, as a result of which
any of the changes or events listed in Section 4.05 of this Merger Agreement is
reasonably likely to occur.

              5.03 CONDUCT OF BUSINESS OF THE COMPANY AND VEECO. During the
period from the date of this Merger Agreement and continuing until the earlier
of the termination of this Merger Agreement and the Effective Time, each of the
Company and Veeco agrees (except to the extent expressly contemplated by this
Merger Agreement or as consented to in writing by the other) to, and to cause
their respective Subsidiaries to, carry on its business in the usual, regular
and ordinary course in substantially the same manner as heretofore conducted, to
pay debts and Taxes when due (subject (i) to good faith disputes over such debts
or Taxes and (ii) in the case of Taxes of the Acquired Corporations, to Veeco's
consent (which consent will not be unreasonably withheld or delayed) to the
filing of material Tax Returns if applicable), to pay or perform other
obligations when due, and to use all reasonable efforts consistent with past
practice and policies to preserve intact its present business organization, use
its best efforts consistent with past practice to keep available the services of
its present officers and key employees and agents and use its best efforts
consistent with past practice to preserve its relationships and good will with
customers, suppliers, distributors, licensors, licensees, landlords, creditors,
employees, agents and others having business dealings with it, to the end that
its goodwill and ongoing businesses shall be unimpaired at the Effective Time.
The Company shall confer with Veeco concerning operational matters of the
Acquired Corporations of a material nature and otherwise report periodically to
Veeco concerning the status of the Acquired Corporations' business, operations
and finances. Without limiting the foregoing, except as expressly contemplated
by this Merger Agreement, neither the Company nor Veeco shall do, cause or
permit any of the following without the prior written consent of the other
(which consent will not be unreasonably withheld or delayed):

                  (a) CHARTER DOCUMENTS. Cause or permit any amendments to its
Certificate of Incorporation or Bylaws;

                  (b) DIVIDENDS; CHANGES IN CAPITAL STOCK. Declare or pay any
dividends on, or make any other distributions (whether in cash, stock or
property) in respect of, any of its capital stock, or split, combine or
reclassify any of its capital stock or issue or authorize the issuance of any
other securities in respect of, in lieu of or in substitution for shares of its
capital stock, or repurchase or otherwise acquire, directly or indirectly, any
shares of its capital stock except from former employees, directors and
consultants in accordance with currently effective agreements providing for the
repurchase of shares in connection with any termination of service to it or its
Subsidiaries, or sell or otherwise issue any shares of its capital stock or
securities exercisable or exchangeable for or convertible into shares of its
capital stock, other than in accordance with or

                                       41
<PAGE>

pursuant to existing option plans or upon the exercise or conversion of Company
Options or Veeco Options (as applicable) outstanding as of the date of this
Merger Agreement or other convertible or exchangeable securities outstanding as
of the date of this Merger Agreement.

                  (c) POOLING; REORGANIZATION. Take or fail to take any action
which (i) would interfere with Veeco's ability to account for the Merger as a
"pooling of interests", or (ii) could reasonably be expected to cause the Merger
to fail to qualify as a reorganization as described in Section 368(a) of the
Code with respect to which no gain or loss will be recognized by a stockholder
of the Company on the conversion of Company Common Stock into Veeco Shares
pursuant to the Merger (except with respect to any cash received in lieu of a
fractional share); or

                  (d) OTHER. Take, or agree in writing or otherwise to take, any
of the actions described in Sections 5.03(a) through (c) above, or any action
which would make any of its representations or warranties contained in this
Merger Agreement untrue or incorrect in any material respect or prevent it from
performing or cause it not to perform its covenants hereunder in any material
respect.

              5.04 CONSENTS. (a) The Company, Veeco and Acquisition shall
cooperate and use their respective reasonable best efforts to obtain, prior to
the Effective Time, all licenses, permits, Consents, approvals, authorizations,
qualifications and orders of Governmental Authorities, parties to the Material
Contracts and any other Persons as are necessary for consummation of the
transactions contemplated by this Merger Agreement and for the Surviving
Corporation to enjoy all rights under such Material Contracts after the
consummation of the transactions contemplated by this Merger Agreement.

                  (b) The Company and Veeco shall use their respective
reasonable best efforts to file, as soon as practicable after the date of this
Merger Agreement, all notices, reports and other documents required to be filed
with any Governmental Authority with respect to the Merger and the other
transactions contemplated by this Merger Agreement, and to submit promptly any
additional information requested by any such Governmental Authority. Without
limiting the generality of the foregoing, the Company and Veeco shall, promptly
after the date of this Merger Agreement, prepare and file the notifications
required under the HSR Act (within fifteen days following the date of this
Merger Agreement) and any applicable foreign antitrust Laws or regulations in
connection with the Merger. The Company and Veeco shall respond as promptly as
practicable to (i) any inquiries or requests received from the Federal Trade
Commission or the Department of Justice for additional information or
documentation and (ii) any inquiries or requests received from any state
attorney general, foreign antitrust authority or other Governmental Authority in
connection with antitrust or related matters. Each of the Company and Veeco
shall (1) give the other party prompt notice of the commencement or threat of
commencement of any Legal Proceeding by or before any Governmental Authority
with respect to the Merger or any of the other transactions contemplated by this
Merger Agreement, (2) keep the other party informed as to the status of any such
Legal Proceeding or threat, and (3) promptly inform the other party of any
communication to or from the Federal Trade Commission, the Department of Justice
or any other Governmental Authority regarding the Merger. Except as may be
prohibited by any Governmental

                                       42
<PAGE>

Authority or by any Law, the Company and Veeco will consult and cooperate with
one another, and will consider in good faith the views of one another, in
connection with any analysis, appearance, presentation, memorandum, brief,
argument, opinion or proposal made or submitted in connection with any Legal
Proceeding under or relating to the HSR Act or any other foreign, federal or
state antitrust or fair trade Law. In addition, except as may be prohibited by
any Governmental Authority or by any Law, in connection with any Legal
Proceeding under or relating to the HSR Act or any other foreign, federal or
state antitrust or fair trade Law or any other similar Legal Proceeding, each of
the Company and Veeco will permit authorized Representatives of the other party
to be present at each meeting or conference relating to any such Legal
Proceeding and to have access to and be consulted in connection with any
document, opinion or proposal made or submitted to any Governmental Authority in
connection with any such Legal Proceeding. At the request of Veeco, the Company
shall agree to divest, sell, dispose of, hold separate or otherwise take or
commit to take any action that limits its freedom of action with respect to its
or its Subsidiaries' ability to retain, any of the businesses, product lines or
assets of the Company or any of its Subsidiaries, provided that any such action
is conditioned upon the consummation of the Merger and such action, when taken
together with any similar action by Veeco, would not have a Material Adverse
Effect on Veeco at and after the Effective Time. If requested by any
Governmental Authority, Veeco shall agree to divest, sell, dispose of, hold
separate or otherwise take or commit to take any action that limits its freedom
of action with respect to its or its Subsidiaries' ability to retain, any of the
businesses, product lines or assets of Veeco or any of its Subsidiaries,
provided, that (i) any such action is conditioned upon the consummation of the
Merger, (ii) in Veeco's reasonable judgment, absent the taking of such action a
required Consent or approval of such Governmental Authority to the consummation
of the Merger will not be obtained and (iii) in the reasonable judgment of
Veeco, such action will not materially affect the business or operations of
Veeco.

              5.05 STOCK OPTIONS. (a) At the Effective Time, all rights with
respect to Company Common Stock under Company Options then outstanding shall be
converted into and become rights with respect to Veeco Shares, and Veeco shall
assume each such Company Option in accordance with the terms (as in effect as of
the date of this Merger Agreement) of the stock option plan or other arrangement
under which it was issued and the terms of the stock option agreement by which
it is evidenced. From and after the Effective Time, (i) each Company Option
assumed by Veeco may be exercised by the holder thereof solely for Veeco Shares,
(ii) the number of Veeco Shares subject to each such Company Option shall be
equal to the product of (A) the number of shares of Company Common Stock subject
to such Company Option immediately prior to the Effective Time multiplied by (B)
the Exchange Ratio, rounding to the nearest whole share, (iii) the per share
exercise price under each such Company Option shall be adjusted by dividing (x)
the per share exercise price under such Company Option by (y) the Exchange Ratio
and rounding to the nearest cent and (iv) any restriction on the exercise or
transfer of any such Company Option shall continue in full force and effect in
accordance with its terms and the term, exercisability, vesting schedule and
other provisions of or relating to such Company Option shall otherwise remain
unchanged; PROVIDED, HOWEVER, that each Company Option assumed by Veeco in
accordance with this Section 5.05(a) shall, in accordance with its terms, be
subject to further adjustment as appropriate to reflect any stock split, stock
dividend, reverse stock split, reclassification, recapitalization or other
similar transaction subsequent to the Effective Time. Veeco shall file with the
SEC, no later than the date on which the

                                       43
<PAGE>

Merger becomes effective, a registration statement on Form S-8 relating to the
Veeco Shares issuable with respect to the Company Options assumed by Veeco in
accordance with this Section 5.05(a).

                  (b) Prior to the Effective Time, the Company shall take all
action that may be necessary (under the plans pursuant to which Company Options
are outstanding and otherwise) to effectuate the provisions of this Section 5.05
and to ensure that, from and after the Effective Time, holders of Company
Options have no rights with respect thereto other than those specifically
provided in this Section 5.05.

              5.06 EMPLOYEE BENEFITS. Veeco agrees that all employees of the
Company and its Subsidiaries who continue employment with Veeco, the Surviving
Corporation or any Subsidiary of the Surviving Corporation after the Effective
Time ("CONTINUING EMPLOYEES") shall be eligible to continue to participate in
the Surviving Corporation's health, vacation and other non-equity based employee
benefit plans; PROVIDED, HOWEVER, that (a) subject to the terms of any
applicable Collective Bargaining Agreement, nothing in this Section 5.06 or
elsewhere in this Merger Agreement shall limit the right of Veeco or the
Surviving Corporation to amend or terminate any such health, vacation or other
employee benefit plan at any time after the Effective Time, and (b) if Veeco or
the Surviving Corporation terminates any such health, vacation or other employee
benefit plan, then, subject to any necessary transition period, the affected
Continuing Employees shall be eligible to participate in Veeco's health,
vacation and other non-equity based employee benefit plans, to substantially the
same extent as employees of Veeco in similar positions and at similar grade
levels. Nothing in this Section 5.06 or elsewhere in this Merger Agreement shall
be construed to create a right in any employee to employment with Veeco, the
Surviving Corporation or any other Subsidiary of Veeco and, subject to any other
binding agreement between an employee and Veeco, the Surviving Corporation or
any other Subsidiary of Veeco, the employment of each Continuing Employee shall
be "at will" employment.

              5.07 INDEMNIFICATION OF OFFICERS AND DIRECTORS. (a) All rights to
indemnification existing in favor of those Persons who are directors and
officers of the Company as of the date of this Merger Agreement (the
"INDEMNIFIED PERSONS") for acts and omissions occurring prior to the Effective
Time, as provided in the Company's By-Laws (as in effect as of the date of this
Merger Agreement), shall survive the Merger and shall be observed by the
Surviving Corporation to the fullest extent permitted by Delaware law for a
period of six years from the Effective Time.

                  (b) From the Effective Time until the sixth anniversary of the
Effective Time, the Surviving Corporation shall maintain in effect, for the
benefit of the Indemnified Persons, with respect to acts or omissions occurring
prior to the Effective Time, the existing policy of directors' and officers'
liability insurance maintained by the Company as of the date of this Merger
Agreement in the form disclosed by the Company to Veeco prior to the date of
this Merger Agreement (the "EXISTING POLICY"); PROVIDED, HOWEVER, that (i) the
Surviving Corporation may in its sole discretion determine to substitute for the
Existing Policy a policy or policies of comparable coverage, and (ii) the
Surviving Corporation shall not be required to pay annual premiums for the
Existing Policy (or for any such substitute policies) in excess of 150% of the
premium payable by the Company therefor as of the date of this Merger Agreement,
in the aggregate. In the event any future annual

                                       44
<PAGE>

premiums for the Existing Policy (or any such substitute policies) exceeds 150%
of the premium payable by the Company therefor as of the date of this Merger
Agreement, in the aggregate, the Surviving Corporation shall be entitled to
reduce the amount of coverage of the Existing Policy (or any such substitute
policies) to the amount of coverage that can be obtained for a premium equal to
150% of the premium payable by the Company therefor as of the date of this
Merger Agreement.

              5.08 POOLING OF INTERESTS. Each of the Company and Veeco agrees,
and agrees to cause their respective Subsidiaries, (a) not to take any action
after the date of this Merger Agreement that would adversely affect the ability
of Veeco to account for the Merger as a "pooling of interests," and (b) to use
all reasonable efforts to attempt to ensure that none of its Affiliates take any
action that could adversely affect the ability of Veeco to account for the
Merger as a "pooling of interests." The Company agrees to provide to
PricewaterhouseCoopers LLP, independent public accountants to the Company, such
letters as shall be reasonably requested by PricewaterhouseCoopers LLP in
connection with the letters referred to in Section 6.03 hereof. Veeco agrees to
provide to Ernst & Young LLP, independent public accountants to Veeco, such
letters as shall be reasonably requested by Ernst & Young LLP, in connection
with the letters referred to in Section 6.03 hereof.

              5.09 ENVIRONMENTAL TRANSFER LAWS. The Company shall comply in a
timely fashion with the material requirements of all Environmental Laws
applicable to the transfer of the business of the Acquired Corporations and any
licenses associated with the operation of the business of the Acquired
Corporations. The Company shall complete all necessary disclosure statements
required by Environmental Laws applicable to the transfer of the business of the
Acquired Corporations and provide the statements to Veeco prior to Closing, all
in proper form for appropriate recordation and filing.

              5.10 TAX MATTERS. (a) Between the date hereof and the Closing
Date, the Company shall file or cause to be filed on a timely basis all Tax
Returns that are required to be filed by it or by any of the other Acquired
Corporations, either separately or as part of an affiliated group of
corporations, pursuant to the Laws of each Governmental Authority with taxing
power over it or any of the other Acquired Corporations or any of the Acquired
Corporations' assets and businesses. Each of such Tax Returns will be true,
correct and complete in all material respects when filed. Neither the Company
nor any Acquired Corporation shall make any election or file any amended Tax
Return reflecting any position that could result in a material adverse Tax
consequence to Veeco, Acquisition or the Company or any Acquired Corporation for
any period beginning on or after the Effective Time. All transfer, documentary,
gross receipts, sales, use and property gains Taxes, and liabilities similar in
nature, imposed or payable on the sale or transfer of the Acquired Corporations'
business pursuant to this Merger Agreement or the consummation of any of the
transactions contemplated hereby shall be paid by the Company. The Company shall
timely file all required transfer Tax Returns and/or notices of the transfer of
the Acquired Corporations' business with the appropriate Governmental Authority.
Veeco shall cooperate with the Company in connection with the matters
contemplated by this Section 5.10(a), which cooperation shall include, without
limitation, providing information and executing and delivering documents, in
connection with the Company's or any of the Acquired Corporations' obligations
under this Section 5.10(a).

                                       45
<PAGE>

                  (b) At or prior to the filing of the Form S-4 Registration
Statement, the Company and Veeco shall execute and deliver to Kaye, Scholer,
Fierman, Hays & Handler, LLP, counsel to Veeco, and to Dewey Ballantine LLP,
counsel to the Company, tax representation letters in form and substance
satisfactory to such counsel. Veeco, Acquisition and the Company shall each
confirm to Kaye, Scholer, Fierman, Hays & Handler, LLP and to Dewey Ballantine
LLP the accuracy and completeness as of the Effective Time of the tax
representation letters delivered pursuant to the immediately preceding sentence.
Following delivery of the tax representation letters contemplated pursuant to
the first sentence of this Section 5.10(b), each of Veeco and the Company shall
use its reasonable efforts to cause Kaye, Scholer, Fierman, Hays & Handler, LLP
to deliver to Violin, and Dewey Ballantine LLP to deliver to the Company, a tax
opinion to the effect that the Merger will qualify as a reorganization as
described in Section 368(a) of the Code and such other matters as are
appropriate for description, and inclusion as exhibits, in the S-4 Registration
Statement and the Joint Proxy Statement, such opinions to be substantially
similar in substance. In rendering such opinions, each of such counsel shall be
entitled to rely on the tax representation letters referred to in this Section
5.10(b).

                  (c) None of Veeco, Acquisition or the Company (i) have
knowledge of any action or failure to act, and/or (ii) will take or fail to take
any action prior or subsequent to the Effective Time that could reasonably be
expected to cause the Merger to fail to qualify as a reorganization as described
in Section 368(a) of the Code with respect to which no gain or loss will be
recognized by a stockholder of the Company on the conversion of Company Common
Stock into Veeco Shares pursuant to the Merger (except with respect to any cash
received in lieu of a fractional share).

              5.11 LETTERS OF THE PARTIES' ACCOUNTANTS. (a) The Company shall
use all reasonable efforts to cause to be delivered to Veeco a letter of
PricewaterhouseCoopers LLP, independent public accountant for the Company, dated
no more than two business days before the date on which the Form S-4
Registration Statement becomes effective (and reasonably satisfactory in form
and substance to Veeco), that is customary in scope and substance for letters
delivered by independent public accountants in connection with registration
statements similar to the Form S-4 Registration Statement.

                  (b) Veeco shall use all reasonable efforts to cause to be
delivered to the Company a letter of Ernst & Young LLP, independent public
accountant for Veeco, dated no more than two business days before the date on
which the Form S-4 Registration Statement becomes effective (and reasonably
satisfactory in form and substance to the Company), that is customary in scope
and substance for letters delivered by independent public accountants in
connection with registration statements similar to the Form S-4 Registration
Statement.

              5.12 LISTING. Veeco shall use reasonable efforts to cause the
Veeco Shares being issued in the Merger to be approved for listing (subject to
notice of issuance) on the Nasdaq National Market.

                                       46
<PAGE>

              5.13 BOARD OF DIRECTORS; WHITMAN EMPLOYMENT AGREEMENT. (a) Prior
to the Effective Time, Veeco shall appoint, as of the Effective Time, Christine
Whitman and Doug Kingsley (or, in lieu of Mr. Kingsley, an individual designated
by the Company and mutually acceptable to Veeco and the Company), to become
directors of Veeco, and to cause Christine Whitman to be appointed the President
of Veeco, reporting to the Chairman and Chief Executive Officer of Veeco
pursuant to an Employment Agreement, dated the Closing Date, in the form
attached as EXHIBIT D hereto (the "WHITMAN EMPLOYMENT AGREEMENT"), which shall
be executed and delivered by Veeco at or prior to the Effective Time.

                  (b) Between the date hereof and the Effective Time, Veeco and
Acquisition shall take such actions as may be reasonably necessary to cause the
officers of Acquisition immediately prior to the Effective Time to be the
persons (holding the positions) set forth on SCHEDULE F hereto.

              5.14 NOTICE OF BREACH; DISCLOSURE. Each party shall promptly
notify the other of (i) any event, condition or circumstance of which such party
becomes aware after the date hereof and prior to the Closing Date that would
constitute a violation or breach of this Merger Agreement (or a breach of any
representation or warranty contained herein) or, if the same were to continue to
exist as of the Closing Date, would constitute the non-satisfaction of any of
the conditions set forth in Article VI, VII or VIII hereof, as the case may be
or (ii) any event, occurrence, transaction, or other item of which such party
becomes aware which would have been required to have been disclosed on any
Schedule or statement delivered hereunder had such event, occurrence,
transaction or item existed as of the date hereof. The disclosure of any matter
as provided in this Section shall not affect the right of any party to terminate
this Merger Agreement under Section 9.01(g) or 9.01(h) on the basis thereof.

              5.15 PAYMENT OF INDEBTEDNESS BY AFFILIATES. The Company shall
cause all indebtedness owed to any Acquired Corporation by any Company Affiliate
to be paid in full prior to Closing, other than advances of, or reimbursements
for, expenses incurred or anticipated to be incurred by officers, directors and
employees of the Acquired Corporations in the ordinary course of business and in
compliance with the relevant Acquired Corporation's policy, if any, relating
thereto.

              5.16 NO SOLICITATION -- COMPANY. (a) The Company shall not
directly or indirectly, and shall not authorize or permit any of the other
Acquired Corporations or any Representative of any of the Acquired Corporations
directly or indirectly, to, (i) solicit, initiate, encourage, induce or
facilitate the making, submission or announcement of any Company Acquisition
Proposal or take any action that could reasonably be expected to lead to a
Company Acquisition Proposal, (ii) furnish any information regarding any of the
Acquired Corporations to any Person in connection with or in response to a
Company Acquisition Proposal or an inquiry or indication of interest that could
lead to a Company Acquisition Proposal, (iii) engage in discussions or
negotiations with any Person with respect to any Company Acquisition Proposal,
(iv) approve, endorse or recommend any Company Acquisition Proposal or (v) enter
into any letter of intent or similar document or any Contract contemplating or
otherwise relating to any Company Acquisition

                                       47
<PAGE>

Transaction; PROVIDED, HOWEVER, that prior to the adoption of this Merger
Agreement by the Required Company Stockholder Vote, this Section 5.16(a) shall
not prohibit the Company from engaging in discussions and taking such other
actions as may be reasonably required for the purpose of becoming informed with
respect to a BONA FIDE unsolicited written Company Acquisition Proposal that is
submitted to the Company (and not withdrawn) if the Board of Directors of the
Company reasonably determines in good faith after due consideration that such
Company Acquisition Proposal would reasonably be likely to result in a Superior
Company Proposal and (1) neither the Company nor any Representative of any of
the Acquired Corporations shall have violated any of the restrictions set forth
in this Section 5.16, (2) the Board of Directors of the Company concludes in
good faith that such action is required in order for the Board of Directors of
the Company to comply with its fiduciary obligations to the Company's
stockholders under applicable Law, after having taken into account, among other
relevant considerations, the written advice of its outside legal counsel, and
(3) prior to any such discussion or other action the Company receives from such
Person an executed confidentiality agreement containing customary limitations on
the use and disclosure of all nonpublic written and oral information furnished
to such Person by or on behalf of the Company and containing "standstill"
provisions no less favorable to the Company than the "standstill" provisions
contained in that certain Mutual Confidentiality Agreement, dated February 10,
2000, between the Company and Veeco. Without limiting the generality of the
foregoing, the Company acknowledges and agrees that any violation of any of the
restrictions set forth in the preceding sentence by any Representative of any of
the Acquired Corporations, whether or not such Representative is purporting to
act on behalf of any of the Acquired Corporations, shall be deemed to constitute
a breach of this Section 5.16 by the Company.

              (b) The Company shall promptly (and in no event later than 24
hours after receipt of any Company Acquisition Proposal, any inquiry or
indication of interest that could lead to a Company Acquisition Proposal or any
request for nonpublic information) advise Veeco orally and in writing of any
Company Acquisition Proposal, any inquiry or indication of interest that could
lead to a Company Acquisition Proposal or any request for nonpublic information
relating to any of the Acquired Corporations (including the identity of the
Person making or submitting such Company Acquisition Proposal, inquiry,
indication of interest or request, and the terms thereof) that is made or
submitted by any Person after the date of this Merger Agreement. The Company
shall keep Veeco fully informed with respect to the status of any such Company
Acquisition Proposal, inquiry, indication of interest or request and any
modification or proposed modification thereto.

              (c) On the date hereof, the Company shall immediately cease and
cause to be terminated any existing discussions with any Person that relate to
any Company Acquisition Proposal or Company Acquisition Transaction.

              (d) The Company agrees not to release or permit the release of any
Person from, or to waive or permit the waiver of any provision of, any
confidentiality, "standstill" or similar agreement to which any of the Acquired
Corporations is a party, and will use its best efforts to enforce or cause to be
enforced each such agreement at the request of Veeco. The Company also will
promptly request each Person that has executed, within 12 months prior to the
date of this Merger Agreement, a confidentiality agreement in connection with
its consideration of a possible

                                       48
<PAGE>

Company Acquisition Transaction or equity investment, to return all confidential
information heretofore furnished to such Person by or on behalf of any of the
Acquired Corporations.

              5.17 NO SOLICITATION -- VEECO. (a) Veeco shall not directly or
indirectly, and shall not authorize or permit any Subsidiary of Veeco or any
Representative of Veeco or a Subsidiary thereof, directly or indirectly, to (i)
solicit, initiate, encourage, induce or facilitate the making, submission or
announcement of any Veeco Acquisition Proposal or take any action that could
reasonably be expected to lead to a Veeco Acquisition Proposal, (ii) furnish any
information regarding Veeco to any Person in connection with or in response to a
Veeco Acquisition Proposal or an inquiry or indication of interest that could
lead to a Veeco Acquisition Proposal, (iii) engage in discussions or
negotiations with any Person with respect to any Veeco Acquisition Proposal ,
(iv) approve, endorse or recommend any Veeco Acquisition Proposal or (v) enter
into any letter of intent or similar document or any Contract contemplating or
otherwise relating to any Veeco Acquisition Transaction; PROVIDED, HOWEVER, that
prior to the adoption of this Merger Agreement by the Required Veeco Stockholder
Vote, this Section 5.17(a) shall not prohibit Veeco from engaging in discussions
and taking such other actions as may be reasonably required for the purpose of
becoming informed with respect to a BONA FIDE unsolicited written Veeco
Acquisition Proposal that is submitted to Veeco (and not withdrawn) if the Board
of Directors of Veeco reasonably determines in good faith after due
consideration that such Veeco Acquisition Proposal would reasonably be likely to
result in a Superior Veeco Proposal and (1) neither Veeco nor any Subsidiary of
Veeco or any Representative of Veeco or a Subsidiary of Veeco shall have
violated any of the restrictions set forth in this Section 5.17, and (2) prior
to any such discussion or other action Veeco receives from such Person an
executed confidentiality agreement containing customary limitations on the use
and disclosure of all nonpublic written and oral information furnished to such
Person by or on behalf of Veeco and containing "standstill" provisions no less
favorable to Veeco than the "standstill" provisions contained in that certain
Mutual Confidentiality Agreement, dated February 10, 2000, between the Company
and Veeco. Without limiting the generality of the foregoing, Veeco acknowledges
and agrees that any violation of any of the restrictions set forth in the
preceding sentence by any Representative of Veeco or a Subsidiary thereof,
whether or not such Representative is purporting to act on behalf of any of
Veeco or such Subsidiary thereof, shall be deemed to constitute a breach of this
Section 5.17 by Veeco.

                  (b) Veeco shall promptly (and in no event later than 24 hours
after receipt of any Veeco Acquisition Proposal, any inquiry or indication of
interest that could lead to a Veeco Acquisition Proposal or any request for
nonpublic information) advise the Company orally and in writing of any Veeco
Acquisition Proposal, any inquiry or indication of interest that could lead to a
Veeco Acquisition Proposal or any request for nonpublic information relating to
Veeco and its Subsidiaries (including the identity of the Person making or
submitting such Veeco Acquisition Proposal, inquiry, indication of interest or
request, and the terms thereof) that is made or submitted by any Person after
the date of this Merger Agreement. Veeco shall keep the Company fully informed
with respect to the status of any such Veeco Acquisition Proposal, inquiry,
indication of interest or request and any modification or proposal modification
thereto.

                                       49
<PAGE>

                  (c) On the date hereof, Veeco shall immediately cease and
cause to be terminated any existing discussions with any Person that relate to
any Veeco Acquisition Proposal or Veeco Acquisition Transaction.

                  (d) Veeco agrees not to release or permit the release of any
Person from, or to waive or permit the waiver of any provision of, any
confidentiality, "standstill" or similar agreement to which Veeco is a party,
and will use its best efforts to enforce or cause to be enforced each such
agreement at the request of the Company. Veeco also will promptly request each
Person that has executed, within 12 months prior to the date of this Merger
Agreement, a confidentiality agreement in connection with its consideration of a
possible Veeco Acquisition Transaction or equity investment, to return all
confidential information heretofore furnished to such Person by or on behalf of
Veeco.

              5.18 BLUE SKY LAWS. Veeco shall take such steps as may be
reasonably necessary to comply with the securities and blue sky laws of all
jurisdictions which are applicable to the issuance of Veeco Shares in connection
with the Merger. The Company shall use its reasonable efforts to assist Veeco as
may be necessary to comply with the securities and blue sky laws of all
jurisdictions which are applicable in connection with the issuance of Veeco
Shares in connection with the Merger.

              5.19 ADDITIONAL AGREEMENTS. Subject to Section 5.04(b), Veeco and
the Company shall use all reasonable efforts to take, or cause to be taken, all
actions necessary to consummate the Merger and make effective the other
transactions contemplated by this Merger Agreement, as promptly as practicable
following the execution and delivery of this Agreement. Without limiting the
generality of the foregoing, but subject to Section 5.04(b), each party to this
Merger Agreement (i) shall make all filings (if any) and give all notices (if
any) required to be made and given by such party in connection with the Merger
and the other transactions contemplated by this Merger Agreement, (ii) shall use
all reasonable efforts to obtain each Consent (if any) required to be obtained
(pursuant to any applicable Law or Contract, or otherwise) by such party in
connection with the Merger or any of the other transactions contemplated by this
Merger Agreement, and (iii) shall use all reasonable efforts to lift any
restraint, injunction or other legal bar to the Merger. The Company shall
promptly deliver to Veeco a copy of each such filing made, each such notice
given and each such Consent obtained by the Company following the date hereof.

              5.20 DISCLOSURE. Veeco and the Company shall consult with each
other before issuing any press release or otherwise making any public statement
with respect to the Merger or any of the other transactions contemplated by this
Merger Agreement. Without limiting the generality of the foregoing, neither
Veeco nor the Company shall, and neither Veeco nor the Company shall permit any
of its Representatives to, make any disclosure regarding the Merger or any of
the other transactions contemplated by this Merger Agreement unless (a) the
other party shall have approved such disclosure or (b) such party shall have
been advised in writing by its outside legal counsel that such disclosure is
required by applicable Law.

              5.21 AFFILIATE AGREEMENTS. (a) The Company shall use all
reasonable efforts to cause each Person identified in SCHEDULE C to this Merger
Agreement and each other Person who

                                       50
<PAGE>

is or becomes (or may be deemed to be) an Affiliate of the Company (each a
"COMPANY AFFILIATE") to execute and deliver to Veeco, prior to the date of the
mailing of the Joint Proxy Statement to the Company's stockholders, an Affiliate
Agreement in the form of EXHIBIT D hereto (a "COMPANY AFFILIATE AGREEMENT"). To
the fullest extent legally permissible, Veeco Shares and shares of Company
Common Stock beneficially owned by each Affiliate of the Company who has not
provided a signed Company Affiliate Agreement in accordance with this Section
5.21(a) shall not be transferable during any period prior to and after the
Effective Time if, as a result of the transfer during any such period, taking
into account the nature, extent and timing of the transfer and similar transfers
by all other Affiliates of Veeco and the Company, the transfer may, in the
reasonable judgment of the independent accountants to Veeco, prevent Veeco from
accounting for the Merger as a "pooling of interests" in accordance with GAAP,
Accounting Principles Board Opinion No. 16 and all published rules, regulations
and policies of the SEC. To the fullest extent legally permissible, neither
Veeco nor the Company shall register, or allow its transfer agent to register,
on its books any transfer of any shares of Veeco Shares or Company Common Stock
of any Company Affiliate who has not provided a signed Affiliate Agreement in
accordance with this Section 5.21(a).

                  (b) Veeco shall use all reasonable efforts to cause each
Person identified in SCHEDULE E to this Merger Agreement and each other Person
who is or becomes (or may be deemed to be) an Affiliate of Veeco (each a "VEECO
AFFILIATE") to execute and deliver to Veeco, prior to the date of the mailing of
the Joint Proxy Statement to Veeco's stockholders, an Affiliate Agreement in the
form of EXHIBIT E hereto (a "VEECO AFFILIATE AGREEMENT"). To the fullest extent
legally permissible, Veeco Shares and shares of Company Common Stock
beneficially owned by each Affiliate of Veeco who has not provided a signed
Veeco Affiliate Agreement in accordance with this Section 5.21(b) shall not be
transferable during any period prior to and after the Effective Time if, as a
result of the transfer during any such period, taking into account the nature,
extent and timing of the transfer and similar transfers by all other Affiliates
of Veeco and the Company, the transfer may, in the reasonable judgment of the
independent accountants to Veeco, prevent Veeco from accounting for the Merger
as a "pooling of interests" in accordance with GAAP, Accounting Principles Board
Opinion No. 16 and all published rules, regulations and policies of the SEC. To
the fullest extent legally permissible, neither Veeco nor the Company shall
register, or allow its transfer agent to register, on its books any transfer of
any shares of Veeco Shares or Company Common Stock of any Veeco Affiliate who
has not provided a signed Veeco Affiliate Agreement in accordance with this
Section 5.21(b).

              5.22 REGISTRATION STATEMENT; JOINT PROXY STATEMENT. As promptly as
practicable after the date of this Merger Agreement, and in any event, within
twenty-five days thereafter, Veeco and the Company shall prepare and cause to be
filed with the SEC the Joint Proxy Statement and Veeco shall prepare and cause
to be filed with the SEC the Form S-4 Registration Statement, in which the Joint
Proxy Statement will be included as a prospectus. Each of Veeco and the Company
shall use all reasonable efforts to cause the Form S-4 Registration Statement
and the Joint Proxy Statement to comply with the rules and regulations
promulgated by the SEC, to respond promptly to any comments of the SEC or its
staff and to have the Form S-4 Registration Statement declared effective under
the Securities Act as promptly as practicable after it is filed with the SEC.
Veeco will use all reasonable efforts to cause the Joint Proxy Statement to be
mailed to Veeco's stockholders, and the Company will use all reasonable efforts
to cause the Joint Proxy Statement to

                                       51
<PAGE>

be mailed to the Company's stockholders, as promptly as practicable after the
Form S-4 Registration Statement is declared effective under the Securities Act.
The Company and Veeco shall promptly furnish to one another all information
concerning the Acquired Corporations and the Company's stockholders and Veeco
and Veeco's stockholders that may be required or reasonably requested in
connection with any action contemplated by this Section 5.22. If any event
relating to any of the Acquired Corporations occurs, or if the Company becomes
aware of any information, that should be disclosed in an amendment or supplement
to the Form S-4 Registration Statement or the Joint Proxy Statement, then the
Company shall promptly inform Veeco thereof and shall cooperate with Veeco in
filing such amendment or supplement with the SEC and, if appropriate, in mailing
such amendment or supplement to the stockholders of the Company. If any event
relating to Veeco occurs, or if Veeco becomes aware of any information, that
should be disclosed in an amendment or supplement to the Form S-4 Registration
Statement or the Joint Proxy Statement, then Veeco shall promptly inform the
Company thereof and shall cooperate with the Company in filing such amendment or
supplement with the SEC and, if appropriate, in mailing such amendment or
supplement to the stockholders of Veeco.

              5.23 COMPANY STOCKHOLDERS' MEETING. (a) The Company shall take all
action necessary under all applicable Laws to call, give notice of and hold a
meeting of the holders of Company Common Stock to vote on a proposal to adopt
this Merger Agreement (the "COMPANY STOCKHOLDERS' MEETING"). The Company
Stockholders' Meeting shall be held (on a date selected by Veeco) as promptly as
practicable after the Form S-4 Registration Statement is declared effective
under the Securities Act. The Company shall ensure that all proxies solicited in
connection with the Company Stockholders' Meeting are solicited in compliance
with all applicable Laws.

                  (b) Subject to Section 5.23(c): (i) the Joint Proxy Statement
shall include a statement to the effect that the Board of Directors of the
Company unanimously recommends that the Company's stockholders vote to adopt
this Merger Agreement at the Company Stockholders' Meeting (such unanimous
recommendation of the Company's Board of Directors that the Company's
stockholders vote to adopt this Merger Agreement being referred to as the
"COMPANY BOARD RECOMMENDATION"); and (ii) the Company Board Recommendation shall
not be withdrawn or modified in a manner adverse to Veeco, and no resolution by
the Board of Directors of the Company or any committee thereof to withdraw or
modify the Company Board Recommendation in a manner adverse to Veeco shall be
adopted or proposed.

                  (c) Notwithstanding anything to the contrary contained in
Section 5.23(b), at any time prior to the adoption of this Merger Agreement by
the Required Company Stockholder Vote, the Company Board Recommendation may be
withdrawn or modified in a manner adverse to Veeco if: (i) a proposal to acquire
(by merger or otherwise) all of the outstanding shares of Company Common Stock
is made to the Company and is not withdrawn; (ii) the Company provides Veeco
with at least five business days' prior written notice of any meeting of the
Company's Board of Directors at which such Board of Directors will consider and
determine whether such offer is a Superior Proposal; (iii) the Company's Board
of Directors determines in good faith that such offer constitutes a Superior
Proposal (taking into account, among other relevant considerations, a written
opinion of an independent financial advisor of nationally recognized
reputation); (iv) the Company's Board of Directors determines in good faith,
after having taken into account, among other relevant

                                       52
<PAGE>

considerations, the written advice of the Company's outside legal counsel, that,
in light of such Superior Proposal, the withdrawal or modification of the
Company Board Recommendation is required in order for the Company's Board of
Directors to comply with its fiduciary obligations to the Company's stockholders
under applicable Law; and (v) neither the Company nor any of its Representatives
shall have violated any of the restrictions set forth in Section 5.16.

                  (d) The Company's obligation to call, give notice of and hold
the Company Stockholders' Meeting in accordance with Section 5.23(a) hereof
shall not be limited or otherwise affected by the commencement, disclosure,
announcement or submission of any Superior Proposal or other Acquisition
Proposal, or by any withdrawal or modification of the Company Board
Recommendation.

              5.24 VEECO STOCKHOLDERS' MEETING. (a) Veeco shall take all action
necessary under all applicable Law to call, give notice of and hold a meeting of
the holders of Veeco Shares to vote on the issuance of Veeco Shares in the
Merger (the "VEECO STOCKHOLDERS' MEETING"). The Veeco Stockholders' Meeting will
be held on the date of the Company Stockholders' Meeting or as promptly
thereafter as is practicable. Veeco shall ensure that all proxies solicited in
connection with the Veeco Stockholders' Meeting are solicited in compliance with
all applicable Laws.

                  (b) Subject to Section 5.24(c), the Joint Proxy Statement
shall include a statement to the effect that the Board of Directors of Veeco
unanimously recommends that Veeco's stockholders vote to approve the issuance of
Veeco Shares in the Merger (such unanimous recommendation of Veeco's Board of
Directors that Veeco stockholders vote to approve the issuance of Veeco Shares
in the Merger being referred to as the "VEECO BOARD RECOMMENDATION"). The Veeco
Board Recommendation shall not be withdrawn or modified in a manner adverse to
the Company, and no resolution by the Board of Directors of Veeco or any
committee thereof to withdraw or modify the Veeco Board Recommendation in a
manner adverse to the Company shall be adopted or proposed.

                  (c) Notwithstanding anything to the contrary contained in
Section 5.24(b), at any time prior to the adoption of this Merger Agreement by
the Required Veeco Stockholder Vote, the Veeco Board Recommendation may be
withdrawn or modified in a manner adverse to the Company if: (i) a proposal to
acquire (by merger or otherwise) all of the outstanding Veeco Shares is made to
Veeco and is not withdrawn; (ii) Veeco provides the Company with at least five
business days' prior written notice of any meeting of Veeco's Board of Directors
at which such Board of Directors will consider and determine whether such offer
is a Superior Veeco Proposal; (iii) Veeco's Board of Directors determines in
good faith that such offer constitutes a Superior Veeco Proposal (taking into
account, among other relevant considerations, a written opinion of an
independent financial advisor of nationally recognized reputation); and (iv)
neither Veeco nor any of its Representatives shall have violated any of the
restrictions set forth in Section 5.17.

                  (d) Veeco's obligation to call, give notice of and hold Veeco
Stockholders' Meeting in accordance with Section 5.24(a) hereof shall not be
limited or otherwise affected by the commencement, disclosure, announcement or
submission of any Superior Veeco

                                       53
<PAGE>

Proposal or other Veeco Acquisition Proposal, or by any withdrawal or
modification of the Veeco Board Recommendation.

VI.               CONDITIONS PRECEDENT TO THE OBLIGATIONS OF THE PARTIES .

              The obligations of the parties to enter into and complete the
Closing are conditioned upon the satisfaction or waiver in writing by the
parties, on or before the Closing Date, of the following conditions:

              6.01 EFFECTIVENESS OF REGISTRATION STATEMENT. The Form S-4
Registration Statement shall have become effective in accordance with the
provisions of the Securities Act, and no stop order shall have been issued, and
no proceeding for that purpose shall have been initiated or be Threatened, by
the SEC with respect to the Form S-4 Registration Statement.

              6.02 STOCKHOLDER APPROVAL. This Merger Agreement shall have been
duly adopted by the Required Company Stockholder Vote and the issuance of Veeco
Shares in the Merger shall have been duly approved by the Required Veeco
Shareholder Vote.

              6.03 POOLING LETTERS. The Company and Veeco shall have received

                  (a) a letter from PricewaterhouseCoopers, LLP dated as of the
Closing Date and addressed to each of Veeco, the Company and Ernst & Young LLP,
reasonably satisfactory in form and substance to Veeco and Ernst & Young LLP, to
the effect that, after reasonable investigation, PricewaterhouseCoopers, LLP is
not aware of any fact concerning the Company or any of the Company's
stockholders or affiliates that could preclude Veeco from accounting for the
Merger as a "pooling of interests" in accordance with GAAP, Accounting
Principles Board Opinion No. 16 and all published rules, regulations and
policies of the SEC; and

                  (b) a written opinion from Ernst & Young LLP, dated as of the
Closing Date and addressed to Veeco, reasonably satisfactory in form and
substance to Veeco and the Company, to the effect that the Merger can be
accounted for as a "pooling of interests".

              6.04 LITIGATION. No suit, action or other Legal Proceeding by any
domestic Governmental Authority, or injunction or final judgment shall be
pending on the Closing Date before any court or Governmental Authority in which
it is sought to restrain or prohibit or to obtain damages or other relief in
connection with this Merger Agreement or the consummation of the transactions
contemplated hereby.

              6.05 HSR ACT. (a) The waiting period applicable to the
consummation of the Merger under the HSR Act (as the same may be extended by the
agreement of Veeco or the Company or otherwise) shall have expired or been
terminated, and (b) any similar waiting period under any applicable foreign
antitrust law or regulation to the consummation of the Merger shall have expired
or been terminated, and any Consent required under any applicable foreign
antitrust law or regulation shall have been obtained, except where the failure
for such waiting period to have

                                       54
<PAGE>

expired or been terminated or for such Consent to have been obtained would not
be material to either Veeco or the Company.

              6.06 LISTING. The Veeco Shares to be issued in the Merger shall
have been approved for listing (subject to notice of issuance) on the Nasdaq
National Market.

VII.              CONDITIONS PRECEDENT TO VEECO'S AND ACQUISITION'S
                  OBLIGATIONS.

              The obligations of Veeco and Acquisition to enter into and
complete the Closing are conditioned upon the satisfaction or waiver in writing
by Veeco (on behalf of Veeco and Acquisition), on or before the Closing Date, of
the following conditions:

              7.01 REPRESENTATIONS AND WARRANTIES. The representations and
warranties of the Company contained in this Merger Agreement shall be accurate
in all respects as of the Closing Date as if made on and as of the Closing Date,
except that any inaccuracies in such representations and warranties will be
disregarded if the circumstances giving rise to such inaccuracies do not
constitute, and would not reasonably be expected to have, a Material Adverse
Effect on the Company; PROVIDED, HOWEVER that, for purposes of determining the
accuracy of such representations and warranties, (i) all "Material Adverse
Effect" qualifications and other materiality qualifications, and any similar
qualifications, contained in such representations and warranties shall be
disregarded and (ii) any update of or modification to the Company Disclosure
Schedule made or purported to have been made after the date of this Merger
Agreement shall be disregarded.

              7.02 PERFORMANCE OF COVENANTS. The Company shall have performed
and complied in all material respects with all of the agreements, covenants and
conditions required by this Merger Agreement to be performed and complied with
by it prior to or on the Closing Date.

              7.03 CONSENTS. All Consents required to be obtained in connection
with the Merger and the other transactions contemplated by this Merger Agreement
(including the Consents identified in SCHEDULE 7.03 to the Company Disclosure
Schedule) shall have been obtained and shall be in full force and effect other
than such Consents, the failure of which to be obtained would not result,
individually or in the aggregate in a Material Adverse Effect on the Company or
Veeco.

              7.04 AGREEMENTS AND DOCUMENTS. Veeco and Acquisition shall have
received the following agreements and documents, each of which shall be in full
force and effect:

                  (a) Company Affiliate Agreements executed by each Company
                      Affiliate;

                  (b) the Whitman Employment Agreement executed by Christine
                      Whitman;

                  (c) a legal opinion of Kaye, Scholer, Fierman, Hays &
Handler, LLP, counsel to Veeco, dated as of the Closing Date and addressed to
Veeco, confirming its opinion delivered pursuant to Section 5.10(b) (it being
understood that in rendering such opinion, Kaye, Scholer, Fierman, Hays &
Handler, LLP may rely upon tax representation letters, dated the Closing

                                       55
<PAGE>

Date, substantially identical to the tax representation letters referred to in
Section 5.10(b) modified to reflect changes in law, if any, and such other
matters as Kaye, Scholer, Fierman, Hays & Handler, LLP and Dewey Ballantine LLP
may reasonably request);

                  (d) a certificate, dated the Closing Date, executed on behalf
of the Company by its Chief Executive Officer, confirming that the conditions
set forth in Sections 7.01 and 7.02 hereof have been duly satisfied;

                  7.05 MATERIAL ADVERSE EFFECT. There shall not have been any
Material Adverse Effect with respect to the Company from the date hereof to the
Closing Date, nor shall there exist any condition which could reasonably be
expected to result in such a Material Adverse Effect.

                  7.06 REGISTRATION RIGHTS AGREEMENT. The Company shall have
informed each party to the Registration Rights Agreement, by delivery thereto of
a writing in form and substance reasonably satisfactory to Veeco, that the
Company believes that, upon the Closing such parties will no longer be entitled
to the rights provided for in the Registration Rights Agreement.

VIII.             CONDITIONS PRECEDENT TO OBLIGATIONS OF THE COMPANY.

                  The Company's obligation to enter into and complete the
Closing is conditioned upon the satisfaction or waiver in writing by the
Company, on or before the Closing Date, of all of the following conditions:

                  8.01 REPRESENTATIONS AND WARRANTIES. The representations and
warranties of Veeco and Acquisition contained in this Merger Agreement shall be
accurate in all respects as of the Closing Date as if made on and as of the
Closing Date, except that any inaccuracies in such representations and
warranties will be disregarded if the circumstances giving rise to such
inaccuracies do not constitute, and would not reasonably be expected have, a
Material Adverse Effect on Veeco; PROVIDED, HOWEVER, that, for purposes of
determining the accuracy of such representations and warranties as of the
Closing Date, (i) all "Material Adverse Effect" qualifications and other
materiality qualifications, any similar qualifications, contained in such
representations and warranties shall be disregarded and (ii) any update of or
modification to the Veeco Disclosure Schedule hereto made or purported to have
been made after the date of this Merger Agreement shall be disregarded.

                  8.02 PERFORMANCE OF COVENANTS. Each of Veeco and Acquisition
shall have performed and complied in all material respects with all of the
agreements, covenants and conditions required by this Merger Agreement to be
performed and complied with by them prior to or on the Closing Date.

                  8.03 CONSENTS AND APPROVALS. All Consents or approvals of
Governmental Authorities required to be obtained in connection with the Merger
and the transactions contemplated by this Merger Agreement shall have been
obtained other than those Consents or approvals of Governmental Authorities, the
failure of which to obtain would not result, individually or in the aggregate,
in a Material Adverse Effect on Veeco.

                                       56
<PAGE>

                  8.04 MATERIAL ADVERSE EFFECT. There shall not have been any
Material Adverse Effect with respect to Veeco from the date hereof to the
Closing Date, nor shall there exist any condition which could reasonably be
expected to result in such a Material Adverse Effect.

                  8.05 DOCUMENTS. The Company shall have received the following
documents:

                  (a) a legal opinion of Dewey Ballantine LLP, counsel to the
Company, dated as of the Closing Date, confirming its opinion delivered pursuant
to Section 5.10(b) (it being understood that in rendering such opinion, Dewey
Ballantine LLP may rely upon tax representation letters dated as of the Closing
Date, and addressed to the Company substantially identical to the tax
representation letters referred to in Section 5.10(b) modified to reflect
changes in law, if any, and such other matters as Kaye, Scholer, Fierman, Hays &
Handler, LLP and Dewey Ballantine LLP may reasonably request),

                  (b) a certificate executed on behalf of Veeco by an executive
officer of Veeco, confirming that conditions set forth in Sections 8.01 and 8.02
hereof have been duly satisfied, and

                  (c) Veeco Affiliate Agreements executed by each Veeco
Affiliate.

IX.               TERMINATION.

                  9.01 TERMINATION. This Merger Agreement may be terminated
prior to the Effective Time (whether before or after adoption of this Merger
Agreement by the Company's stockholders and whether before or after approval of
the issuance of Veeco Shares in the Merger by Veeco's stockholders):

                  (a) by mutual written consent of Veeco and the Company;

                  (b) by either Veeco or the Company if the Merger shall not
have been consummated by August 31, 2000 or, if later, the day following the
last day of any cure period under Section 9.01(g) or 9.01(h) (unless the failure
to consummate the Merger is attributable to a failure on the part of the party
seeking to terminate this Merger Agreement to perform any material obligation
required to be performed by such party at or prior to the Effective Time);

                  (c) by either Veeco or the Company if (i) a court of competent
jurisdiction or other Governmental Authority shall have issued a final and
nonappealable order, decree or ruling, or shall have taken any other action,
having the effect of permanently restraining, enjoining or otherwise prohibiting
the Merger or (ii) if a suit or action by any domestic Governmental Authority
shall be pending, in which it is sought to restrain or prohibit or to obtain
damages in connection with, this Merger Agreement or the consummation of the
transactions contemplated hereby;

                  (d) by either Veeco or the Company if (i) the Company
Stockholders' Meeting (including any adjournments and postponements thereof)
shall have been held and

                                       57
<PAGE>

completed and the Company's stockholders shall have taken a final vote on a
proposal to adopt this Merger Agreement, and (ii) this Merger Agreement shall
not have been adopted at such meeting by the Required Company Stockholder Vote
(and shall not have been adopted at any adjournment or postponement thereof);
PROVIDED, HOWEVER, that (A) a party shall not be permitted to terminate this
Merger Agreement pursuant to this Section 9.01(d) if the failure to obtain such
stockholder approval is attributable to a failure on the part of such party to
perform any material obligation required to be performed by such party at or
prior to the Effective Time, and (B) the Company shall not be permitted to
terminate this Merger Agreement pursuant to this Section 9.01(d) unless the
Company shall have made the payment required to be made to Veeco pursuant to
Section 9.03(a) and shall have paid to Veeco any fee required to be paid to
Veeco pursuant to Section 9.03(b);

                  (e) by either Veeco or the Company if (i) the Veeco
Stockholders' Meeting (including any adjournments and postponements thereof)
shall have been held and completed and Veeco's stockholders shall have taken a
final vote on the issuance of Veeco Shares in the Merger, and (ii) the issuance
of Veeco Shares in the Merger shall not have been approved at such meeting (and
shall not have been approved at any adjournment or postponement thereof) by the
Required Veeco Stockholder Vote; PROVIDED, HOWEVER, that (A) a party shall not
be permitted to terminate this Agreement pursuant to this Section 9.01(e) if the
failure to obtain such stockholder vote is attributable to a failure on the part
of the party seeking to terminate this Merger Agreement to perform any material
obligation required to be performed by such party at or prior to the Effective
Time, and (B) Veeco shall not be permitted to terminate this Merger Agreement
pursuant to this Section 9.01(e) unless parent shall have made the payment
required to be made to the Company pursuant to Section 9.03(a);

                  (f) by Veeco (at any time prior to the adoption of the Merger
Agreement by the Required Company Stockholder Vote) if a Company Triggering
Event shall have occurred;

                  (g) by Veeco if (i) any of the Company's representations and
warranties contained in this Merger Agreement shall be inaccurate as of the date
of this Merger Agreement, or shall have become inaccurate as of a date
subsequent to the date of this Merger Agreement (as if made on such subsequent
date) (and such breach, if capable of cure, has not been cured within fifteen
days after notice thereof), such that the condition set forth in Section 7.01
would not be satisfied, or (ii) any of the Company's covenants contained in this
Merger Agreement shall have been breached (and any such breach shall not have
been cured within fifteen days after notice thereof) such that the condition set
forth in Section 7.02 would not be satisfied;

                  (h) by the Company if (i) any of Veeco's representations and
warranties contained in this Merger Agreement shall be inaccurate as of the date
of this Merger Agreement, or shall have become inaccurate as of a date
subsequent to the date of this Merger Agreement (as if made on such subsequent
date) (and such breach, if capable of cure, has not been cured within fifteen
days after notice thereof), such that the condition set forth in Section 8.01
would not be satisfied, or (ii) if any of Veeco's covenants contained in this
Merger Agreement shall have been breached (and any such breach shall not have
been cured within fifteen days after notice thereof) such that the condition set
forth in Section 8.02 would not be satisfied;

                                       58
<PAGE>

                  (i) (x) by Veeco if, there shall have been any Incurable
Material Adverse Effect (as defined) with respect to the Company from the date
hereof to the Closing Date or there shall exist any condition which could
reasonably be expected to result in such an Incurable Material Adverse Effect
(as defined); or (y) by the Company if from the date hereof to the Closing Date,
there shall have been any Incurable Material Adverse Effect (as defined) with
respect to Veeco from the date hereof to the Closing Date or there shall exist
any condition that could reasonably be expected to result in such an Incurable
Material Adverse Effect (as defined); or

                  (j) by the Company (at any time prior to the adoption of this
Merger Agreement by the Required Company Stockholder Vote) if a Veeco Triggering
Event shall have occurred.

                  (k) by Veeco in the event of a Superior Veeco Proposal.

              As used in this Section 9.01, an "INCURABLE MATERIAL ADVERSE
EFFECT" shall mean a Material Adverse Effect on the Company or Veeco (as
applicable), which Material Adverse Effect is not reasonably capable of being
cured prior to August 31, 2000.

              9.02 EFFECT OF TERMINATION. In the event of the termination of
this Merger Agreement as provided in Section 9.01, this Merger Agreement shall
be of no further force or effect; PROVIDED, HOWEVER, that (i) this Section 9.02,
Section 9.03 and Article 10 shall survive the termination of this Merger
Agreement and shall remain in full force and effect, and (ii) the termination of
this Merger Agreement shall not relieve any party from any liability for any
willful breach of any representation, warranty or covenant contained in this
Merger Agreement.

              9.03 EXPENSES; TERMINATION FEES. (a) Except as set forth in this
Section 9.03, all fees and expenses incurred in connection with this Merger
Agreement and the transactions contemplated by this Merger Agreement shall be
paid by the party incurring such expenses, whether or not the Merger is
consummated; PROVIDED, HOWEVER, that: (i) Veeco and the Company shall share
equally all fees and expenses, other than attorneys' fees, incurred in
connection with (A) the filing, printing and mailing of the Form S-4
Registration Statement and the Joint Proxy Statement and any amendments or
supplements thereto and (B) the filing by the parties hereto of the premerger
notification and report forms relating to the Merger under the HSR Act and the
filing of any notice or other document under any applicable foreign antitrust
law or regulation; (ii) if this Merger Agreement is terminated by Veeco pursuant
to Section 9.01(g), then the Company shall make a nonrefundable cash payment to
Veeco, at the time specified in the next sentence, in an amount equal to the
aggregate amount of all fees and reasonable, documented, out-of-pocket expenses
(including with respect to fees, all attorneys' fees, accountants' fees,
financial advisory fees and filing fees) that have been paid or that may become
payable by or on behalf of Veeco in connection with the preparation and
negotiation of this Merger Agreement and otherwise in connection with the
Merger; and (iii) if this Merger Agreement is terminated by the Company pursuant
to Section 9.01(h), then Veeco shall make a nonrefundable cash payment to the
Company, at the time specified in the last sentence of this Section 9.03(a), in
an amount equal to the aggregate amount of all fees and reasonable, documented,
out-of-pocket expenses (including with respect to fees, all attorneys' fees,
accountants fees, financial advisory fees and filing fees) that have been paid
or that may become

                                       59
<PAGE>

payable by or on behalf of the Company in connection with the preparation and
negotiation of this Merger Agreement and otherwise in connection with the
Merger. In the case of termination of this Merger Agreement by Veeco pursuant to
Section 9.01(g), the nonrefundable payment referred to in clause "(ii)" of the
proviso to the first sentence of this Section 9.03(a) shall be made by the
Company within two business days after such termination. In the case of
termination of this Merger Agreement by the Company pursuant to Section 9.01(h),
the nonrefundable payment referred to in clause "(iii)" of the proviso to the
first sentence of this Section 9.03(a) shall be paid by Veeco within two
business days afer such termination.

              (b) If (i) this Merger Agreement is terminated (A) by Veeco or the
Company pursuant to Section 9.01(d) or (B) by Veeco pursuant to Section 9.01(g)
and at or prior to the time of such termination a Company Acquisition Proposal
shall have been disclosed, announced, commenced, submitted or made, or (C) by
Veeco pursuant to Section 9.01(f) then the Company shall pay to Veeco (in lieu
of any payment required to be made pursuant to Section 9.03(a)), a nonrefundable
fee in the amount of $14,600,000 (the "TERMINATION FEE"). In the case of
termination of this Merger Agreement by the Company pursuant to Section 9.01(d),
the Termination Fee referred to in the preceding sentence shall be paid by the
Company prior to such termination, and in the case of termination of this Merger
Agreement by Veeco pursuant to Section 9.01(d), Section 9.01(f) or Section
9.01(g), the Termination Fee referred to in the preceding sentence shall be paid
by the Company within two business days after such termination.

              (c) If this Merger Agreement is terminated by Veeco or the Company
pursuant to Section 9.01(e), then Veeco shall pay to the Company (in lieu of any
payment required to be made pursuant to Section 9.03(a)), a nonrefundable fee in
the amount of $4,000,000; provided, however, that if this Merger Agreement is
terminated by Veeco or the Company pursuant to Section 9.01(e), and at or prior
to the time of such termination, a Veeco Acquisition Proposal shall have been
disclosed, announced, commenced, submitted or made, then Veeco shall pay to the
Company (in lieu of any payment required to be made pursuant to Section 9.03(a)
and in lieu of the $4,000,000 payment referred to earlier in this sentence) the
Termination Fee. If this Merger Agreement is terminated by (A) Veeco pursuant to
Section 9.01(k), or (B) by the Company pursuant to Section 9.01(j), then Veeco
will pay to the Company (in lieu of any payment required to be made pursuant to
Section 9.03(a)), the Termination Fee. In the case of termination of this Merger
Agreement by Veeco pursuant to Section 9.01(e), the $4,000,000 fee referred to
in this Section 9.03(c) or the Termination Fee (as applicable) shall be paid by
Veeco prior to such termination, and in the case of termination of this Merger
Agreement by the Company pursuant to Section 9.01(e), such $4,000,000 fee or the
Termination Fee (as applicable) shall be paid by Veeco within two business days
after such termination. In the case of termination of this Merger Agreement by
Veeco pursuant to Section 9.01(k), the Termination Fee shall be paid by Veeco
prior to such termination. In the case of termination of this Merger Agreement
pursuant to Section 9.01(j), the Termination Fee shall be paid by Veeco within
two business days after such termination.

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<PAGE>

X.                MISCELLANEOUS.

              10.01 SUCCESSORS. This Merger Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns.

              10.02 AMENDMENT. This Merger Agreement may be amended with the
approval of the respective Boards of Directors of the Company and Veeco at any
time (whether before or after adoption of this Merger Agreement by the
stockholders of the Company and whether before or after approval of the issuance
of Veeco Shares in the Merger by Veeco's stockholders); PROVIDED, HOWEVER, that
(i) after any such adoption of this Merger Agreement by the Company's
stockholders, no amendment shall be made which by Law requires further approval
of the stockholders of the Company without the further approval of such
stockholders, and (ii) after any such approval of the issuance of Veeco Shares
in the Merger by Veeco's stockholders, no amendment shall be made which by Law
or NASD regulation requires further approval of Veeco's stockholders without the
further approval of such stockholders. This Merger Agreement may not be amended
except by an instrument in writing signed on behalf of each of the parties
hereto.

              10.03 WAIVER. (a) No failure on the part of any party to exercise
any power, right, privilege or remedy under this Merger Agreement, and no delay
on the part of any party in exercising any power, right, privilege or remedy
under this Merger Agreement, shall operate as a waiver of such power, right,
privilege or remedy; and no single or partial exercise of any such power, right,
privilege or remedy shall preclude any other or further exercise thereof or of
any other power, right, privilege or remedy.

                  (b) No party shall be deemed to have waived any claim arising
out of this Merger Agreement, or any power, right, privilege or remedy under
this Merger Agreement, unless the waiver of such claim, power, right, privilege
or remedy is expressly set forth in a written instrument duly executed and
delivered on behalf of such party; and any such waiver shall not be applicable
or have any effect except in the specific instance in which it is given.

              10.04 NO SURVIVAL OF REPRESENTATIONS AND WARRANTIES; SURVIVAL OF
TAX COMMENTS. None of the representations and warranties contained in this
Merger Agreement or in any certificate delivered pursuant to this Merger
Agreement shall survive the Merger. Notwithstanding any other provision of this
Merger Agreement, the covenants contained in Section 5.10(c) shall survive until
the termination or expiration of the relevant statute of limitations.

              10.05 ENTIRE AGREEMENT; COUNTERPARTS. This Merger Agreement
(together with the agreements, certificates and other documents referred to
herein, the Schedules and Exhibits hereto and the Company Disclosure Schedule
and the Veeco Disclosure Schedule) constitutes the entire agreement among the
parties with respect to its subject matter and supersedes all other prior and
contemporaneous agreements and understandings, both written and oral, among or
between any of the parties with respect to the subject matter hereof, PROVIDED,
HOWEVER, that the certain Mutual Confidentiality Agreement dated February 10,
2000 between the Company and Veeco shall not be superseded and shall remain in
full force and effect. This Merger Agreement may be executed in

                                       61
<PAGE>

several counterparts, each of which shall be deemed an original and all of which
shall constitute one and the same instrument.

              10.06 GOVERNING LAW. THIS MERGER AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE AND PERFORMED IN SUCH STATE AND WITHOUT REGARD TO CONFLICTS OF
LAW DOCTRINES EXCEPT TO THE EXTENT THAT CERTAIN MATTERS ARE PREEMPTED BY FEDERAL
LAW OR ARE GOVERNED BY THE LAW OF THE JURISDICTION OF ORGANIZATION OF THE
RESPECTIVE PARTIES.

              10.07 DISCLOSURE SCHEDULES. The Company Disclosure Schedule shall
be arranged in separate parts corresponding to the numbered and lettered
Sections contained in Article III, and the information disclosed in any numbered
or lettered part shall be deemed to relate to and to qualify only the particular
representation or warranty set forth in the corresponding number or lettered
Section in Article III, and shall not be deemed to relate to or to qualify any
other representation or warranty. The Veeco Disclosure Schedule shall be
arranged in separate parts corresponding to the numbered and lettered Sections
contained in Article IV, and the information disclosed in any numbered or
lettered part shall be deemed to relate to and to qualify only the particular
representation or warranty set forth in the corresponding numbered or lettered
Section in Article IV, and shall not be deemed to related to or to qualify any
other representation or warranty.

              10.08 ATTORNEYS' FEES. In any action at law or suit in equity to
enforce this Merger Agreement or the rights of any of the parties hereunder, the
prevailing party in such action or suit shall be entitled to receive a
reasonable sum for its attorneys' fees and all other reasonable costs and
expenses incurred in such action or suit.

              10.09 ASSIGNMENT. Neither Veeco, Acquisition nor the Company may
assign this Merger Agreement to any other Person without the prior written
consent of the other parties hereto.

              10.10 NOTICES. All notices and other communications hereunder
shall be in writing and shall be deemed to have been duly given (a) when
delivered personally, (b) when transmitted by telecopy (transmission confirmed),
(c) on the fifth business day following mailing by registered or certified mail
(return receipt requested), or (d) on the next business day following deposit
with an overnight delivery service of national reputation, to the parties at the
following addresses and telecopy numbers (or at such other address or telecopy
number for a party as may be specified by like notice):

                                       62
<PAGE>

                      If to Veeco or Acquisition:

                      c/o Veeco Instruments Inc.
                      Terminal Drive
                      Plainview, New York 11803
                      Attention: Edward H. Braun,
                                 Chairman, President and Chief Executive Officer
                      Telephone: (516) 349-8300
                      Telecopy:  (516) 349-9079

                      With a copy to:

                      Kaye, Scholer, Fierman, Hays & Handler, LLP
                      425 Park Avenue
                      New York, New York  10022
                      Attention:  Rory A. Greiss, Esq.
                      Telephone:  (212) 836-8261
                      Telecopy:   (212) 836-7152

                      If to the Company:

                      CVC, Inc.
                      525 Lee Road
                      Rochester, NY  14606
                      Attention:  Christine Whitman
                                  Chief Executive Officer
                      Telephone:  (716) 458-2550
                      Telecopy:   (716) 458-0426

                      With a copy to:

                      Dewey Ballantine LLP
                      1301 Avenue of the Americas
                      New York, New York 10019
                      Attention: Richard D.  Pritz, Esq.
                      Telephone:  (212) 259-6310
                      Telecopy:   (212) 239-6651

              10.11 HEADINGS. The headings contained in this Merger Agreement
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Merger Agreement.

              10.12 EXHIBITS AND SCHEDULES. The Exhibits and Schedules to this
Merger Agreement are incorporated by reference herein and are made a part hereof
as if they were fully set forth herein. References herein to "this Merger
Agreement," "herein," "hereof" and phrases of like

                                       63
<PAGE>

import are references to this Merger Agreement, together with the Exhibits and
Schedules hereto, including the Company Disclosure Schedule and the Veeco
Disclosure Schedule.

              10.13 SEVERABILITY. The invalidity of any term or terms of this
Merger Agreement shall not affect any other term of this Merger Agreement, which
shall remain in full force and effect.

              10.14 NO THIRD-PARTY BENEFICIARIES. Other than the Indemnified
Persons, there are no third party beneficiaries of this Merger Agreement or of
the transactions contemplated hereby and nothing contained herein shall be
deemed to confer upon anyone other than the parties hereto (and their permitted
successors and assigns) and, with respect to the obligations of Veeco pursuant
to Section 5.07 the Indemnified Persons, any right to insist upon or to enforce
the performance of any of the obligations contained herein.

                                   * * * * *

                                       64
<PAGE>

              IN WITNESS WHEREOF, the parties have executed this Merger
Agreement as of the date first above written.

                                               VEECO INSTRUMENTS INC.

                                      By:   /s/ Edward H. Braun
                                         ----------------------------------
                                      Name:  Edward H. Braun
                                      Title: Chairman, CEO, President

                                                     CVC, INC.

                                      By:  /s/ Christine B. Whitman
                                         ----------------------------------
                                      Name:  Christine B. Whitman
                                      Title: Chairman, President, & CEO

                                                VEECO ACQUISITION CORP.

                                      By:   /s/ Edward H. Braun
                                         ----------------------------------
                                      Name:   Edward H. Braun
                                      Title:  Chairman, CEO, President

<PAGE>

                                                                     SCHEDULE A

                          Company Stockholders Party to
                      Company Stockholders Voting Agreement

Seagate Technology, Inc.
Niko Tecno Co., Inc.
Advent International Group
Global Private Equity III Limited Partnership
Advent PGGM Global Limited Partnership
Advent Partners GPE III Limited Partnership
Advent Partners (NA) GPE III Limited Partnership
Advent Partners Limited Partnership
Anne G. Whitman
Christine B. Whitman
Emilio O. DiCataldo
Mehrdad M. Moslehi
Christopher J. Mann

<PAGE>

                                                                     SCHEDULE B

                           Veeco Stockholders Party to
                       Veeco Stockholders Voting Agreement

Edward H. Braun
John F. Rein, Jr.
Emanuel Lakios
Joseph Rivlin

<PAGE>

                                                                     SCHEDULE C

                               Company Affiliates

Seagate Technology
Nikko Tecno, Inc.
Christine B. Whitman
Giovanni Nocerino
Emilio O. DiCataldo
Mehrdad M. Moslehi
Christopher J. Mann
Richard J. Chicotka
Richard A. Kellogg
Judd C. Prozeller
Robert C. Fink
Douglas A. Kingsley
Seiya Miyanishi
Donald L. Waite
Maurice F. Holmes

<PAGE>

                                                                     SCHEDULE D

                                Veeco Affiliates

Edward H. Braun
Walter J. Scherr
Richard A. D'Amore
Paul R. Low
Joel A. Elftman
John F. Rein, Jr.
Francis Steenbeke
Emanuel N. Lakios
Robert P. Oates
John P. Kiernan
Heinz K. Fridrich
Roger D. McDaniel
Irwin Pfister
Virgil Elings, Ph. D.
Don R. Kania, Ph. D.
Joseph F. Rivlin
Lloyd J. LaComb
Allen R. Schwartz
Daniel C. Croucher
Thomas J. Cully

<PAGE>

                                                                     SCHEDULE E

                       Officers of Acquisition Immediately
                           Prior to the Effective Time

OFFICERS OF ACQUISITION        POSITION

Edward H. Braun              CEO
John F. Rein, Jr.            Vice President and Treasurer
Greg Robbins                 Secretary
Christine Whitman            President
Emilio DiCataldo             Senior Vice President and Chief Financial Officer
Giovanni Nocerino            Executive Vice President, Sales & Service
Mehrdad M. Moslehi           Senior Vice President and Chief Technical Officer
Christopher J. Mann          Senior Vice President, Marketing
Richard J. Chicotka          Vice President, Engineering
Richard A. Kellogg           Vice President, Manufacturing
Judd C. Prozeller            Vice President, Quality and Human Resources

<PAGE>

                                                                       EXHIBIT A

                              COMPANY STOCKHOLDERS
                                VOTING AGREEMENT

                  COMPANY STOCKHOLDERS VOTING AGREEMENT (this "AGREEMENT"),
dated February 29, 2000, among each of the individuals and entities listed on
SCHEDULE A to this Agreement (each, a "COMPANY STOCKHOLDER" and collectively,
the "COMPANY STOCKHOLDERS") and Veeco Instruments Inc., a Delaware corporation
("VEECO").

                  WHEREAS, Veeco Acquisition Corp., a Delaware corporation and a
wholly-owned subsidiary of Veeco ("ACQUISITION"), and CVC, Inc., a Delaware
corporation (the "COMPANY") propose to enter into an Agreement and Plan of
Merger dated as of the date hereof (as the same may be amended, supplemented or
modified in accordance with its terms, the "MERGER AGREEMENT") providing for the
merger of Acquisition into the Company (the "MERGER");

                  WHEREAS, capitalized terms used in this Agreement but not
otherwise defined herein shall have the respective meanings ascribed to such
terms in the Merger Agreement;

                  WHEREAS, this Agreement is the Company Stockholders Voting
Agreement contemplated by and referred to in the Merger Agreement;

                  WHEREAS, each Company Stockholder owns the number of Existing
Company Shares (as defined) set forth opposite such Company Stockholder's name
on SCHEDULE A hereto and the Company Stockholders collectively own in the
aggregate 6,086,749 Existing Company Shares (as defined);

                  WHEREAS, as a condition to the willingness of Veeco to enter
into the Merger Agreement, Veeco has requested that the Company Stockholders
enter into this Agreement.

                  NOW THEREFORE, to induce Veeco to enter into, and in
consideration of its entering into, the Merger Agreement, and in consideration
of the mutual covenants and agreements set forth herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties to this Agreement, intending to be legally bound,
hereby agree as follows:

         SECTION 1.        CERTAIN DEFINITIONS.

                  1.1. "BENEFICIALLY OWN" or "BENEFICIAL OWNERSHIP" with respect
to any securities shall mean having "beneficial ownership" of such securities
(as determined pursuant to Rule 13d-3 under the Exchange Act), including
pursuant to any agreement, arrangement or understanding, whether or not in
writing. Without duplicative counting of the same securities by the same holder,
securities Beneficially Owned by a Person shall include securities Beneficially
Owned

<PAGE>

by all other Persons with whom such Person would constitute a "group" within the
meaning of Section 13(d) of the Exchange Act with respect to securities of the
same issuer.

                  1.2. "COMPANY SHARES" with respect to any Company Stockholder,
shall mean such Company Stockholder's Existing Company Shares and any shares of
Company Common Stock and/or other Equity Securities of, or equity interest in,
the Company acquired by the Company Stockholder in any capacity after the date
of this Agreement and prior to the termination of this Agreement, whether upon
the exercise of options, warrants or rights, the conversion or exchange of
convertible or exchangeable securities, or by means of purchase, dividend,
distribution, split-up, recapitalization, combination, exchange of shares or the
like, gift, bequest, inheritance or as a successor in interest in any capacity
or otherwise Beneficially Owned by such Company Stockholder, in each case, if
and to the extent entitled to be voted.

                  1.3. "EXISTING COMPANY SHARES" with respect to any Company
Stockholder, means all shares of Company Common Stock Beneficially Owned by such
Company Stockholder on the date of this Agreement, in each case, if and to the
extent entitled to be voted..

                  1.4. "IRREVOCABLE PROXY" shall mean a Company Stockholder
Power of Attorney and Irrevocable Proxy in the form of EXHIBIT A attached to
this Agreement.

         SECTION 2.  REPRESENTATIONS AND WARRANTIES.

                  2.1. ENTITY COMPANY STOCKHOLDER REPRESENTATIONS AND
WARRANTIES. Each Company Stockholder that is a legal entity, or otherwise not an
individual Person, hereby represents and warrants to Veeco as follows:

                  (a) AUTHORITY. Such Company Stockholder is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization. Such Company Stockholder has all power and authority necessary to
enable it to enter into this Agreement and to carry out the transactions
contemplated by this Agreement and such Company Stockholder's Irrevocable Proxy.
This Agreement and such Company Stockholder's Irrevocable Proxy have been duly
and validly authorized, executed and delivered by such Company Stockholder and
each constitutes such Company Stockholder's legal, valid and binding obligation,
enforceable against it in accordance with its terms.

                  (b) NON-CONTRAVENTION. Neither the execution and delivery of
this Agreement or such Company Stockholder's Irrevocable Proxy, nor consummation
of the transactions contemplated by this Agreement, by such Company
Stockholder's Irrevocable Proxy or by any document to be delivered in accordance
herewith or therewith will violate, result in a breach of, or constitute a
default (or an event which, with notice or lapse of time or both would
constitute a default) under, (i) such Company Stockholder's certificate of
incorporation, limited partnership agreement or other organizational, governing
or constating documents, (ii) any agreement or instrument to which such Company
Stockholder is a party or by which it is bound, or (iii) any Law,

                                        2

<PAGE>

or any order, rule or regulation of any court or Governmental Authority or other
regulatory organization having jurisdiction over it.

                  (c) APPROVALS AND CONSENTS. No governmental filings,
authorizations, approvals or Consents, or other governmental action is required
for (i) the execution and delivery of this Agreement and such Company
Stockholder's Irrevocable Proxy by such Company Stockholder, (ii) the
performance by such Company Stockholder of its obligations under this Agreement
and such Company Stockholder's Irrevocable Proxy or (iii) the consummation by
such Company Stockholder of the transactions contemplated by this Agreement and
such Company Stockholder's Irrevocable Proxy.

                  2.2. INDIVIDUAL COMPANY STOCKHOLDER REPRESENTATIONS AND
WARRANTIES. Each Company Stockholder that is an individual hereby represents and
warrants to Veeco as follows:

                  (a) AUTHORITY. Such Company Stockholder has full capacity and
authority to enter into this Agreement and such Company Stockholder's
Irrevocable Proxy, and to carry out the transactions contemplated hereby and
thereby. This Agreement and such Company Stockholder's Irrevocable Proxy have
been duly executed and delivered by such Company Stockholder and each
constitutes a legal, valid and binding obligation of such Company Stockholder
enforceable against such Company Stockholder in accordance with its terms.

                  (b) NON-CONTRAVENTION. None of the execution and delivery of
this Agreement or such Company Stockholder's Irrevocable Proxy, nor consummation
of the transactions contemplated by this Agreement, by such Company
Stockholder's Irrevocable Proxy or by any document to be delivered in accordance
herewith or therewith will violate, result in a breach of, or constitute a
default (or an event which, with notice or lapse of time or both would
constitute a default) under, (i) any agreement or instrument to which such
Company Stockholder is a party or by which such Company Stockholder is bound,
(ii) any Law, or any order, rule or regulation of any court or Governmental
Authority or other regulatory organization having jurisdiction over such Company
Stockholder.

                  (c) APPROVALS AND CONSENTS. No governmental filings,
authorizations, approvals or Consents, or other governmental action is necessary
or required (i) for the execution and delivery of this Agreement or such Company
Stockholder's Irrevocable Proxy by such Company Stockholder, (ii) the
performance by such Company Stockholder of such Company Stockholder's
obligations under this Agreement or such Company Stockholder's Irrevocable Proxy
or (iii) the consummation by such Company Stockholder of the transactions
contemplated hereby or by such Company Stockholder's Irrevocable Proxy.

                  2.3. COMPANY STOCKHOLDER REPRESENTATIONS AND WARRANTIES. Each
Company Stockholder hereby represents and warrants to Veeco as follows:

                  (a) OWNERSHIP OF EXISTING COMPANY SHARES. Such Company
Stockholder is the record and Beneficial Owner of the number of Existing Company
Shares set forth opposite such

                                        3

<PAGE>

Company Stockholder's name on SCHEDULE A to this Agreement. On the date of this
Agreement, such Existing Company Shares constitute all of the shares of Company
Common Stock owned of record or Beneficially Owned by such Company Stockholder.

                  (b) LIENS AND RESTRICTIONS ON EXISTING COMPANY SHARES. Such
Company Stockholder owns the number of Existing Company Shares set forth
opposite such Company Stockholder's name on SCHEDULE A hereto, free and clear of
any Liens, claims, security interests, proxies, voting trusts or agreements,
restrictions, qualifications, limitations, understandings or arrangements which
would in any way restrict or impair such Company Stockholder's right to vote
such Existing Company Shares in his, her or its sole discretion, or could
require such Company Stockholder to sell or transfer any of such Existing
Company Shares (whether upon default on a loan or otherwise) before the
Effective Time.

                  (c) VOTING POWER OVER EXISTING COMPANY SHARES. Such Company
Stockholder has sole voting power and sole power to issue instructions and sole
power to agree to the matters set forth in this Agreement with respect to all of
such Company Stockholder's Existing Company Shares.

                  (d) SURVIVAL. The obligations of such Company Stockholder
under this Agreement shall survive the death, disability or incapacity of such
Company Stockholder.

                  2.4. VEECO REPRESENTATIONS AND WARRANTIES. Veeco hereby
represents and warrants to the Company Stockholders as follows:

                  (a) AUTHORITY. Veeco is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware. Veeco has
all power and authority necessary to enable it to enter into this Agreement and
to carry out the transactions contemplated by this Agreement. This Agreement has
been duly and validly authorized, executed and delivered by Veeco and
constitutes a legal, valid and binding obligation of Veeco enforceable against
Veeco in accordance with its terms.

                  (b) NON-CONTRAVENTION. Neither the execution and delivery of
this Agreement by Veeco nor the consummation of the transactions contemplated by
this Agreement will violate, result in a breach of, or constitute a default (or
an event which, with notice or lapse of time or both would constitute a default)
under, the certificate of incorporation or by-laws of Veeco.

                  (c) APPROVALS AND CONSENTS. No governmental filings,
authorizations, approvals or Consents, or other governmental action is required
for (i) the execution and delivery of this Agreement by Veeco, (ii) the
performance by Veeco of its obligations under this Agreement or (iii) the
consummation by Veeco of the transactions contemplated by this Agreement.

                                        4

<PAGE>

         SECTION 3.        COVENANTS OF THE COMPANY STOCKHOLDERS.

                  3.1. VOTE FOR MERGER. At any meeting of stockholders of the
Company called to vote upon the Merger and the Merger Agreement or any of the
transactions contemplated by the Merger Agreement, or at any adjournment or
postponement thereof, or in any other circumstances upon which a vote, Consent
or other approval with respect to the Merger and the Merger Agreement is sought,
each Company Stockholder's Company Shares shall be counted as present thereat
for purposes of establishing a quorum and shall be voted or Consented (or caused
to be voted or Consented) in favor of the Merger, the adoption by the Company of
the Merger Agreement, other matters relating to the approval of the terms of the
Merger Agreement and each of the other transactions contemplated by the Merger
Agreement.

                  3.2. VOTE AGAINST CERTAIN MATTERS. Prior to the Effective
Time, at any meeting of stockholders of the Company or at any adjournment or
postponement thereof or in any other circumstances upon which a Company
Stockholder's vote, Consent or other approval is sought, such Company
Stockholder's Company Shares shall be counted as present thereat for purposes of
establishing a quorum and shall be voted or Consented (or caused to be voted or
Consented) against any proposal or transaction involving the Company or any of
its Subsidiaries if such transaction or proposal would in any manner impede,
frustrate, prevent or nullify the Merger, the Merger Agreement or any of the
other transactions contemplated by the Merger Agreement; PROVIDED, that nothing
set forth in this Section 3.2 is intended or shall be construed to restrict or
impair the right of a Company Stockholder to vote or Consent (or cause to be
voted or Consented) any Company Shares owned of record or Beneficially Owned by
such Company Stockholder (i) in favor of any Company Acquisition Proposal or
related Company Acquisition Transaction or (ii) in the election of any director
of the Company.

                  3.3. EXECUTION AND DELIVERY OF IRREVOCABLE PROXIES. In order
to effectuate the voting arrangements contemplated by Section 3.1 and Section
3.2 hereof, contemporaneously with the execution and delivery by the parties
hereto of this Agreement, and as a condition to such execution and delivery by
Veeco, each Company Stockholder is delivering to Veeco an Irrevocable Proxy duly
executed by or on behalf of such Company Stockholder.

                  3.4. TRANSFERS; OTHER VOTING ARRANGEMENTS INCONSISTENT
ACTIONS.

                  (a) TRANSFEREES BOUND. It shall be a condition precedent to
any direct or indirect sale, transfer, pledge, assignment or other disposition
of, or entry into any Contract, option or other arrangement with respect to the
sale, transfer, pledge, assignment or other disposition of, any Company Shares
by a Company Stockholder (any of the foregoing, whether voluntary or
involuntary, by operation of Law or otherwise a "TRANSFER") to any Person (the
"TRANSFEREE") that (A) the Company Stockholder desiring to effect such Transfer
provide to the proposed Transferee in connection therewith a copy of this
Agreement and the Irrevocable Proxy and (B) such Transferee shall agree, prior
to the consummation of such Transfer, to become bound by this Agreement and such
Company Stockholder's Irrevocable Proxy and subject to the terms, conditions and
restrictions

                                        5

<PAGE>

hereof and thereof in the same manner as the Company Stockholder desiring to
effect such Transfer, by executing a writing to such effect in form and
substance satisfactory to Veeco.

                  (b) OTHER VOTING ARRANGEMENTS, ETC. No Company Stockholder
shall, directly or indirectly, enter into any voting arrangement, whether by
proxy, voting arrangement, voting agreement, voting trust or otherwise with
respect to any Company Shares owned of record or Beneficially Owned by such
Company Stockholder other than as contemplated under and as required by this
Agreement and such Company Stockholder's Irrevocable Proxy.

                  (c) INCONSISTENT ACTIONS; NON-INTERFERENCE. No Company
Stockholder shall, directly or indirectly, take any action that would or could
reasonably be expected to (A) make any representation or warranty of the Company
Stockholder contained herein untrue or incorrect, or (B) result in a breach by
the Company Stockholder of its obligations under this Agreement, or (C) result
in a breach by the Company of its obligations under the Merger Agreement, or (D)
invalidate or in any way limit the enforceability by the Proxyholders (as
defined in the Irrevocable Proxy) of such Company Stockholder's Irrevocable
Proxy, or (E) have an effect that would be inconsistent with, or violative of,
any provision or agreement contained in the Merger Agreement.

         SECTION 4.        COVENANTS RELATING TO CONFIDENTIALITY AND DISCLOSURE.

                  4.1. CONFIDENTIALITY. Each Company Stockholder recognizes that
successful consummation of the transactions contemplated by this Agreement and
the Merger Agreement may be dependent upon the maintenance of strict
confidentiality with respect to the matters referred to herein and therein. In
this connection, pending public disclosure thereof by Veeco or the Company, each
Company Stockholder hereby agrees not to disclose or discuss such matters with
anyone not a party to this Agreement or the Merger Agreement (other than to its
and to the Company's counsel and advisors) without the prior written consent of
Veeco, except for filings, if any, required pursuant to the Exchange Act and the
rules and regulations promulgated thereunder or disclosures that such Company
Stockholder's counsel advises are necessary in order to fulfill such Company
Stockholder's obligations imposed by Law, in which event such Company
Stockholder shall give prior notice of such disclosure to Veeco as promptly as
practicable so as to enable Veeco to seek a protective order from a court of
competent jurisdiction with respect thereto or similar relief in connection
therewith.

                  4.2. DISCLOSURE. Each Company Stockholder hereby agrees to
permit the Company and Veeco to publish and disclose in the Form S-4
Registration Statement and the Joint Proxy Statement (including all documents,
exhibits and schedules filed with the SEC), and any press release or other
disclosure document which Veeco or the Company determine to be necessary or
desirable in connection with the Merger and the transactions related thereto,
such Company Stockholder's identity and ownership of Company Common Stock or
Veeco Shares, as the case may be, and the nature of its commitments,
arrangements and understandings under this Agreement and such Company
Stockholder's Irrevocable Proxy.

                                        6

<PAGE>

         SECTION 5.        CERTAIN ADDITIONAL COVENANTS OF THE COMPANY
                           STOCKHOLDERS.

                  5.1. NO SOLICITATION. Each Company Stockholder shall not, and
shall cause its Affiliates and Representatives not to, directly or indirectly,
take any action to initiate, solicit, encourage or facilitate the making of any
Company Acquisition Proposal or any inquiry with respect thereto, or engage in
discussions or negotiations with any Person (other than Veeco or any of its
Affiliates or Representatives) relating to any Company Acquisition Proposal or
disclose any non-public information relating to the Company or any Subsidiary of
the Company or afford access to the properties, books or records of the Company
or any Subsidiary of the Company, to any Person that has made a Company
Acquisition Proposal. A Company Stockholder shall notify Veeco orally and in
writing of any offers, proposals or inquiries received by such Company
Stockholder relating to the purchase or acquisition by any Person of any Company
Shares and of any Company Acquisition Proposal actually known to such Company
Stockholder (including, in each case, the material terms and conditions thereof
and the identity of the Person making it), within 24 hours of receipt thereof.
Each Company Stockholder shall and shall cause its Representatives to,
immediately cease and cause to be terminated any and all existing activities,
discussions and negotiations, if any, with any parties conducted heretofore with
respect to any Company Acquisition Proposal, other than discussions or
negotiations with Veeco or its Affiliates or Representatives. Notwithstanding
the restrictions set forth in this Section 5.1, each of the Company and any
Person (including any Company Stockholder) who is an officer or director of the
Company may take any action in such capacity that is consistent with the terms
of the Merger Agreement.

                  5.2. RELIANCE. Each Company Stockholder understands and
acknowledges that Veeco is entering into the Merger Agreement in reliance upon
such Company Stockholder's execution and delivery of this Agreement and such
Company Stockholder's Irrevocable Proxy.

                  5.3. AFFILIATE AGREEMENT. Each Company Stockholder, if
requested by Veeco prior to the Effective Time, will duly execute and deliver to
Veeco a Company Affiliate Agreement contemplated by Section 5.21(a) of the
Merger Agreement.

         SECTION 6.        TERMINATION.

                  6.1. TERMINATION OF AGREEMENT. The provisions of this
Agreement shall terminate and be of no further force or effect upon the earlier
to occur of (a) the termination of the Merger Agreement in accordance with its
terms and (b) the Effective Time of the Merger.

         SECTION 7.        MISCELLANEOUS.

                  7.1 EXPENSES. All costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby shall be paid by
the party incurring the expense.

                                        7

<PAGE>

                  7.2 ENTIRE AGREEMENT. This Agreement and any documents to be
delivered in accordance with this Agreement (including the Irrevocable Proxies
of the Company Stockholders) contain the entire agreement among the parties
relating to the transactions which are the subject of this Agreement, and all
prior and contemporaneous negotiations, understandings and agreements among the
parties (whether written or oral) with regard to the subject matter of this
Agreement are superseded by this Agreement, and there are no representations,
warranties, understandings or agreements concerning the transactions which are
the subject of this Agreement or those other documents other than those
expressly set forth in this Agreement.

                  7.3 CAPTIONS. The captions of the articles and paragraphs of
this Agreement are for reference only, and do not affect the meaning or
interpretation of this Agreement.

                  7.4.     BINDING AGREEMENT; ASSIGNMENT.

                  (a) BINDING AGREEMENT. Each Company Stockholder agrees that
this Agreement and the obligations hereunder shall attach to the Company Shares
and shall be binding upon any Person to which record or Beneficial Ownership of
such Company Shares shall pass, wether by operation of Law or otherwise,
including, without limitation, the Company Stockholder's heirs, distributees,
guardians, administrators, executors, legal representatives, or successors,
partners or other transferees (for value or otherwise) and any other successors
in interest. Notwithstanding any transfer of Company Shares, the transferor
shall remain liable for the performance of all obligations under this Agreement
of the transferor.

                  (b) ASSIGNMENT. Notwithstanding anything to the contrary set
forth herein, no party may assign any of its rights or obligations hereunder, by
operation of Law or otherwise, without the prior written consent of the other
party; provided, that Veeco may assign, in its sole discretion, its rights and
obligations hereunder to any direct or indirect wholly-owned subsidiary of
Veeco, but no such assignment shall relieve Veeco of its obligations hereunder
if such assignee does not perform such obligations.

                  7.5. NOTICES AND OTHER COMMUNICATIONS. Any notice or other
communication under this Agreement must be in writing and will be deemed given
when delivered in person or sent by facsimile (with proof of receipt at the
number to which it is required to be sent), or on the third business day afer
the day on which mailed by first class mail from within the United States of
America, to the following addresses (or such other address as may be specified
after the date of this Agreement by the party to which the notice or
communication is sent):

                                        8

<PAGE>

                  If to Veeco:

                  Veeco Instruments Inc.
                  Terminal Drive
                  Plainview, New York 11803
                  Attention: Edward H. Braun
                             Chairman, President and Chief Executive Officer
                  Facsimile No: (516) 349-9079

                  with a copy to:

                  Kaye, Scholer, Fierman, Hays & Handler, LLP
                  425 Park Avenue
                  New York, New York 10022-3598
                  Attention: Rory Greiss, Esq.
                  Facsimile No.: (212) 836-8689

                  If to any Company Stockholder, to such Company Stockholder at
the address set forth under such Company Stockholder's signature on the
signature pages to this Agreement.

                  with a copy to:

                  Dewey Ballantine, LLP
                  1301 Avenue of the Americas
                  New York, New York 10019
                  Attention: Richard D. Pritz, Esq.
                  Facsimile No.:  (212) 239-6551

                  7.6. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO
AGREEMENTS MADE AND PERFORMED IN SUCH STATE AND WITHOUT REGARD TO CONFLICTS OF
LAWS DOCTRINES.

                  7.7. AMENDMENTS. Prior to the Effective Time, this Agreement
may be amended only by a document in writing signed by Veeco and each Company
Stockholder.

                  7.8. COUNTERPARTS. This Agreement may be executed in two or
more counterparts, some of which may contain the signatures of some, but not
all, the parties hereto. Each of those counterparts will be deemed an original,
but all of them together will constitute one and the same Agreement.

                  7.9. SEVERABILITY. If any provision of this Agreement is held
to be illegal, invalid or unenforceable under any present or future Law, and if
the rights or obligations of any party hereto under this Agreement will not be
materially and adversely affected thereby, (i) such provision will

                                        9

<PAGE>

be fully severable, (ii) this Agreement will be construed and enforced as if
such illegal, invalid or unenforceable provision had never comprised a part
hereof, (iii) the remaining provisions of this Agreement will remain in full
force and effect and will not be affected by the illegal, invalid or
unenforceable provision or by its severance herefrom and (iv) in lieu of such
illegal, invalid or unenforceable provision, there will be added automatically
as a part of this Agreement a legal, valid and enforceable provision as similar
in terms to such illegal, invalid or unenforceable provision as may be possible.

                  7.10. ENFORCEMENT. The parties hereto agree that irreparable
damage would occur in the event that any of the provisions of this Agreement
were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that the parties hereto shall be entitled to
an injunction or injunctions to prevent breaches of this Agreement and to
enforce specifically the terms and provisions of this Agreement in any Federal
court located in the State of Delaware or in a Delaware state court, this being
in addition to any other remedy to which they are entitled at law or in equity.
In addition, each of the parties hereto (i) consents to the personal
jurisdiction of any Federal court located in the State of Delaware or any
Delaware state court in any action or proceeding relating to or arising out of
this Agreement (including, with respect to a Company Stockholder, such Company
Stockholder's Irrevocable Proxy) or any of the transactions contemplated hereby,
(ii) agrees that such party will not attempt to deny or defeat such personal
jurisdiction by motion or other request for leave from any such court, (iii)
agrees that such parties will not seek to change the venue of any such action or
proceeding or otherwise to move any such action or proceeding to another court,
whether because of inconvenience of the forum or otherwise (provided that
nothing in this Section will prevent a party from removing an action or
proceeding from a Delaware state court to a Federal court located in the State
of Delaware), (iv) agrees that such party will not bring any action relating to
this Agreement or any Irrevocable Proxy or any of the transactions contemplated
hereby or thereby in any court other than a Federal court sitting in the State
of Delaware or a Delaware state court and (v) waives any right to trial by jury
with respect to any claim or proceeding related to or arising out of this
Agreement or any Irrevocable Proxy or any of the transactions contemplated
hereby or thereby.

                  7.11. FURTHER ASSURANCES. From time to time, at the other
party's request and without further consideration, each party hereto shall
execute and deliver such additional documents and take all such further lawful
action as may be necessary or desirable to consummate and make effective, in the
most expeditious manner practicable, the transactions contemplated by this
Agreement and the Irrevocable Proxies.

                                       10

<PAGE>

                  IN WITNESS WHEREOF, each party hereto has caused this
Agreement to be signed by its officer thereunto duly authorized as of the date
in the first paragraph of this Agreement.

                                            VEECO

                                            VEECO INSTRUMENTS INC.

                                            By:
                                               ---------------------------------
                                                  Name:
                                                  Title:

                                            COMPANY STOCKHOLDERS

                                            SEAGATE TECHNOLOGY, INC.

                                            By:
                                               ---------------------------------
                                                  Name:
                                                  Title:

                                            Seagate Technology, Inc.'s
                                              Address for Notice:

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

                                            ------------------------------------
                                            Attention:
                                                      --------------------------
                                            Facsimile No.:
                                                          ----------------------

                                       11

<PAGE>

                                            NIKKO TECNO CO., INC.

                                            By:
                                               ---------------------------------
                                                   Name:
                                                   Title:

                                            Nikko Tecno Co., Inc.
                                              Address for Notice

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

                                            ------------------------------------
                                            Attention:
                                                      --------------------------
                                            Facsimile No.:
                                                          ----------------------

                                       12

<PAGE>

                                            ADVENT INTERNATIONAL GROUP

                                            By:
                                               ---------------------------------
                                                   Name:
                                                   Title:

                                            Advent International Group's
                                              Address for Notice:

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

                                            ------------------------------------
                                            Attention:
                                                      --------------------------
                                            Facsimile No.:
                                                          ----------------------

                                            GLOBAL PRIVATE EQUITY III LIMITED
                                              PARTNERSHIP

                                            By: Advent International Group, its
                                              General Partner

                                            By:
                                               ---------------------------------
                                                   Name:
                                                   Title:

                                            Global Private Equity III Limited
                                              Partnership's
                                              Address for Notice:

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

                                            ------------------------------------
                                            Attention:
                                                      --------------------------
                                            Facsimile No.:
                                                          ----------------------

                                       13

<PAGE>

                                            ADVENT PGGM GLOBAL LIMITED
                                               PARTNERSHIP
                                            By: Advent International Group, its
                                              General Partner

                                            By:
                                               ---------------------------------
                                                   Name:
                                                   Title:

                                            Advent PGGM Global Limited
                                              Partnership's
                                           Address for Notice:

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

                                           -------------------------------------
                                           Attention:
                                                     ---------------------------
                                           Facsimile No.:
                                                         -----------------------

                                           ADVENT PARTNERS GPE III LIMITED
                                             PARTNERSHIP

                                           By: Advent International Group, its
                                             General Partner

                                           By:
                                              ----------------------------------
                                                   Name:
                                                   Title:

                                           Advent Partners GPE III Limited
                                             Partnership's
                                              Address for Notice:

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

                                           -------------------------------------
                                           Attention:
                                                     ---------------------------
                                           Facsimile No.:
                                                         -----------------------

                                       14

<PAGE>

                                           ADVENT PARTNERS (NA) GPE III LIMITED
                                             PARTNERSHIP

                                           By: Advent International Group, its
                                             General Partner

                                           By:
                                              ----------------------------------
                                                   Name:
                                                   Title:

                                            Advent Partners (NA) GPE III Limited
                                              Partnership's
                                            Address for Notice:

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

                                            ------------------------------------
                                            Attention:
                                                      --------------------------
                                            Facsimile No.:
                                                          ----------------------

                                            ADVENT PARTNERS LIMITED PARTNERSHIP

                                            By: Advent International Group, its
                                              General Partner

                                            By:
                                               ---------------------------------
                                                   Name:
                                                   Title:

                                            Advent Partners Limited
                                             Partnership's
                                            Address for Notice:

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

                                            ------------------------------------
                                            Attention:
                                                      --------------------------
                                            Facsimile No.:
                                                          ----------------------

                                       15

<PAGE>

                                            ------------------------------------
                                            Anne G. Whitman

                                            Anne G. Whitman's
                                              Address for Notice:
                                            ------------------------------------

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

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

                                            ------------------------------------
                                            Facsimile No.:
                                                          ----------------------

                                       16

<PAGE>

                                            ------------------------------------
                                            Christine B. Whitman

                                            Christine B. Whitman's
                                               Address for Notice:
                                            ------------------------------------

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

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

                                            ------------------------------------
                                            Facsimile No.:
                                                          ----------------------

                                            ------------------------------------
                                            Emilio O. DiCataldo

                                            Emilio O. DiCataldo's
                                              Address for Notice:
                                            ------------------------------------

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

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

                                            ------------------------------------
                                            Facsimile No.:
                                                          ----------------------

                                            ------------------------------------
                                            Mehrdad M. Moslehi

                                            Mehrdad M. Moslehi's
                                              Address for Notice:

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

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

                                            ------------------------------------
                                            Facsimile No.:
                                                          ----------------------

                                       17

<PAGE>

                                            ------------------------------------
                                            Christopher J. Mann
                                              Christopher J. Mann's
                                            Address for Notice:

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

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

                                            ------------------------------------
                                            Facsimile No.:
                                                          ----------------------

                                       18

<PAGE>

                                   SCHEDULE A

COMPANY STOCKHOLDER                          NO. OF EXISTING COMPANY SHARES HELD

Seagate Technology, Inc.                                               2,428,313

Nikko Tecno Co., Inc.                                                  1,412,316

Global Private Equity III Limited Partnership                            853,658

Advent PGGM Global Limited Partnership                                   130,793

Advent Partners GPE III Limited Partnership                               12,907

Advent Partners (NA) GPE III Limited Partnership                           3,861

Advent Partners Limited Partnership                                       15,041

Anne G. Whitman                                                          451,900

Christine B. Whitman                                                     368,000

Emilio O. DiCataldo                                                       50,000

Mehrdad M. Moslehi                                                       304,000

Christopher J. Mann                                                       55,960

                               Schedule A - Page 1

<PAGE>

                                                                       EXHIBIT A

                              COMPANY STOCKHOLDERS
                     POWER OF ATTORNEY AND IRREVOCABLE PROXY

         Reference is hereby made to that Certain Company Stockholders Voting
Agreement (the "VOTING AGREEMENT"), dated as of the date hereof, of which this
Company Stockholders Power of Attorney and Irrevocable Proxy (this "IRREVOCABLE
PROXY") forms a part. Capitalized terms used but not defined in this Irrevocable
Proxy have the respective meanings ascribed to such terms in the Voting
Agreement. This Irrevocable Proxy is being delivered by the undersigned Company
Stockholder (the "GRANTING STOCKHOLDER") pursuant to Section 3.3 of the Voting
Agreement.

         The undersigned Granting Stockholder hereby irrevocably appoints Veeco
Instruments Inc., a Delaware corporation ("VEECO"), and each of Veeco's officers
and other designees (each such Person, a "PROXYHOLDER") as the Granting
Stockholder's attorney-in-fact and proxy pursuant to the provisions of Section
212 of the Delaware General Corporation Law, with full power of substitution, in
the Granting Stockholder's name, place and stead, to vote and otherwise act (by
written consent or otherwise) with respect to all of the Company Shares now
owned of record or Beneficially Owned by the Granting Stockholder and of which
the Granting Stockholder may hereafter acquire record or Beneficial Ownership,
and any other securities, if any (the "OTHER SECURITIES"), which the Granting
Stockholder is entitled to vote at any meeting of the stockholders of the
Company (whether annual or special and whether or not an adjourned or postponed
meeting) or consent in lieu of any such meeting or otherwise:

                  (a) in favor of the Merger, the adoption by the Company of the
         Merger Agreement, other matters relating to the approval of the terms
         of the Merger Agreement and each of the other transactions contemplated
         by the Merger Agreement; and

                  (b) against any proposal or transaction involving the Company
         or any of its Subsidiaries if any such transaction or proposal would in
         any manner impede, frustrate, prevent or nullify the Merger, the Merger
         Agreement or any of the other transactions contemplated by the Merger
         Agreement; PROVIDED, HOWEVER, that nothing set forth in this paragraph
         (b) is intended or shall be construed to grant to any Proxyholder the
         right to vote or otherwise act (by written consent or otherwise) with
         respect to any Company Shares or Other Securities owned of record or
         Beneficially Owned by the Granting Stockholder (i) against any Company
         Acquisition Proposal or related Company Acquisition Transaction or (ii)
         in the election of any director of the Company.

         THIS POWER OF ATTORNEY AND IRREVOCABLE PROXY IS IRREVOCABLE AND COUPLED
WITH AN INTEREST. The Granting Stockholder hereby revokes all other proxies and
powers of attorney with respect to the Company Shares and the Other Securities
that the Granting Stockholder may have heretofore granted, and no subsequent
proxy or power of attorney shall be given or written consent executed (and if
given or executed, shall not be effective) by the Granting Stockholder with
respect thereto. All authority herein conferred or agreed to be conferred shall
survive the death or incapacity of the Granting Stockholder and any obligation
of the Granting Stockholder under this Irrevocable Proxy shall be binding upon
the heirs, personal representatives, successors and assigns of the Granting
Stockholder.

                               Exhibit A - Page 1

<PAGE>

         This Irrevocable Proxy shall be valid and irrevocable until, and shall
terminate upon, the earlier to occur of (a) the termination of the Merger
Agreement in accordance with its terms and (b) the Effective Time of the Merger.

                           -----------------------------------------------------
                            (Signature of Granting Stockholder)

                           -----------------------------------------------------
                           (Printed Name of Granting Stockholder as it Appears
                           on Certificate Representing Company Shares)

                           ----------------------------------
                           (Date)

                               Exhibit A - Page 2

<PAGE>

                                                                      EXHIBIT B

                               VEECO STOCKHOLDERS
                                VOTING AGREEMENT

                  VEECO STOCKHOLDERS VOTING AGREEMENT (this "AGREEMENT"), dated
February 29, 2000, among each of the individuals and entities listed on SCHEDULE
A to this Agreement (each, a "VEECO STOCKHOLDER" and collectively, the "VEECO
STOCKHOLDERS") and CVC, Inc., a Delaware corporation (the "COMPANY").

                  WHEREAS, Veeco Acquisition Corp. ("ACQUISITION"), a Delaware
corporation and a wholly-owned subsidiary of Veeco Instruments Inc. ("VEECO"),
and the Company propose to enter into an Agreement and Plan of Merger dated as
of the date hereof (as the same may be amended, supplemented or modified in
accordance with its terms, the "MERGER AGREEMENT") providing for the merger of
Acquisition into the Company (the "MERGER");

                  WHEREAS, capitalized terms used in this Agreement but not
otherwise defined herein shall have the respective meanings ascribed to such
terms in the Merger Agreement;

                  WHEREAS, this Agreement is the Veeco Stockholders Voting
Agreement contemplated by and referred to in the Merger Agreement;

                  WHEREAS, each Veeco Stockholder owns the number of Existing
Veeco Shares (as defined) set forth opposite such Veeco Stockholder's name on
SCHEDULE A hereto and the Veeco Stockholders collectively own in the aggregate
128,490 Existing Veeco Shares (as defined);

                  WHEREAS, as a condition to the willingness of the Company to
enter into the Merger Agreement, the Company has requested that the Veeco
Stockholders enter into this Agreement.

                  NOW THEREFORE, to induce the Company to enter into, and in
consideration of its entering into, the Merger Agreement, and in consideration
of the mutual covenants and agreements set forth herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties to this Agreement, intending to be legally bound,
hereby agree as follows:

         SECTION 1.    CERTAIN DEFINITIONS.

                  1.1. "BENEFICIALLY OWN" or "BENEFICIAL OWNERSHIP" with respect
to any securities shall mean having "beneficial ownership" of such securities
(as determined pursuant to Rule 13d-3 under the Exchange Act), including
pursuant to any agreement, arrangement or understanding, whether or not in
writing. Without duplicative counting of the same securities by the same holder,
securities Beneficially Owned by a Person shall include securities Beneficially
Owned

                                       1
<PAGE>

by all other Persons with whom such Person would constitute a "group" within the
meaning of Section 13(d) of the Exchange Act with respect to securities of the
same issuer.

                  1.2. "VEECO SHARES" with respect to any Veeco Stockholder,
shall mean such Veeco Stockholder's Existing Veeco Shares and any Veeco Shares
and/or other Equity Securities of, or equity interest in, Veeco acquired by the
Veeco Stockholder in any capacity after the date of this Agreement and prior to
the termination of this Agreement, whether upon the exercise of options,
warrants or rights, the conversion or exchange of convertible or exchangeable
securities, or by means of purchase, dividend, distribution, split-up,
recapitalization, combination, exchange of shares or the like, gift, bequest,
inheritance or as a successor in interest in any capacity or otherwise
Beneficially Owned by such Veeco Stockholder, in each case, if and to the extent
entitled to be voted.

                  1.3. "EXISTING VEECO SHARES" with respect to any Veeco
Stockholder, means all Veeco Shares Beneficially Owned by such Veeco Stockholder
on the date of this Agreement, in each case, if and to the extent entitled to be
voted.

                  1.4. "IRREVOCABLE PROXY" shall mean a Veeco Stockholder Power
of Attorney and Irrevocable Proxy in the form of EXHIBIT A attached to this
Agreement.

         SECTION 2.    REPRESENTATIONS AND WARRANTIES.

                  2.1. ENTITY VEECO STOCKHOLDER REPRESENTATIONS AND WARRANTIES.
Each Veeco Stockholder that is a legal entity, or otherwise not an individual
Person, hereby represents and warrants to the Company as follows:

                  (a) AUTHORITY. Such Veeco Stockholder is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization. Such Veeco Stockholder has all power and authority necessary to
enable it to enter into this Agreement and to carry out the transactions
contemplated by this Agreement and such Veeco Stockholder's Irrevocable Proxy.
This Agreement and such Veeco Stockholder's Irrevocable Proxy have been duly and
validly authorized, executed and delivered by such Veeco Stockholder and each
constitutes such Veeco Stockholder's legal, valid and binding obligation,
enforceable against it in accordance with its terms.

                  (b) NON-CONTRAVENTION. Neither the execution and delivery of
this Agreement or such Veeco Stockholder's Irrevocable Proxy, nor consummation
of the transactions contemplated by this Agreement, by such Veeco Stockholder's
Irrevocable Proxy or by any document to be delivered in accordance herewith or
therewith will violate, result in a breach of, or constitute a default (or an
event which, with notice or lapse of time or both would constitute a default)
under, (i) such Veeco Stockholder's certificate of incorporation, limited
partnership agreement or other organizational, governing or constating
documents, (ii) any agreement or instrument to which such Veeco Stockholder is a
party or by which it is bound, or (iii) any Law, or any order, rule or
regulation of any court or Governmental Authority or other regulatory
organization having jurisdiction over it.

                                        2

<PAGE>

                  (c) APPROVALS AND CONSENTS. No governmental filings,
authorizations, approvals or Consents, or other governmental action is required
for (i) the execution and delivery of this Agreement and such Veeco
Stockholder's Irrevocable Proxy by such Veeco Stockholder, (ii) the performance
by such Veeco Stockholder of its obligations under this Agreement and such Veeco
Stockholder's Irrevocable Proxy or (iii) the consummation by such Veeco
Stockholder of the transactions contemplated by this Agreement and such Veeco
Stockholder's Irrevocable Proxy.

                  2.2. INDIVIDUAL VEECO STOCKHOLDER REPRESENTATIONS AND
WARRANTIES. Each Veeco Stockholder that is an individual hereby represents and
warrants to the Company as follows:

                  (a) AUTHORITY. Such Veeco Stockholder has full capacity and
authority to enter into this Agreement and such Veeco Stockholder's Irrevocable
Proxy, and to carry out the transactions contemplated hereby and thereby. This
Agreement and such Veeco Stockholder's Irrevocable Proxy have been duly executed
and delivered by such Veeco Stockholder and each constitutes a legal, valid and
binding obligation of such Veeco Stockholder enforceable against such Veeco
Stockholder in accordance with its terms.

                  (b) NON-CONTRAVENTION. None of the execution and delivery of
this Agreement or such Veeco Stockholder's Irrevocable Proxy, nor consummation
of the transactions contemplated by this Agreement, by such Veeco Stockholder's
Irrevocable Proxy or by any document to be delivered in accordance herewith or
therewith will violate, result in a breach of, or constitute a default (or an
event which, with notice or lapse of time or both would constitute a default)
under, (i) any agreement or instrument to which such Veeco Stockholder is a
party or by which such Veeco Stockholder is bound, (ii) any Law, or any order,
rule or regulation of any court or Governmental Authority or other regulatory
organization having jurisdiction over such Veeco Stockholder.

                  (c) APPROVALS AND CONSENTS. No governmental filings,
authorizations, approvals or Consents, or other governmental action is necessary
or required (i) for the execution and delivery of this Agreement or such Veeco
Stockholder's Irrevocable Proxy by such Veeco Stockholder, (ii) the performance
by such Veeco Stockholder of such Veeco Stockholder's obligations under this
Agreement or such Veeco Stockholder's Irrevocable Proxy or (iii) the
consummation by such Veeco Stockholder of the transactions contemplated hereby
or by such Veeco Stockholder's Irrevocable Proxy.

                  2.3. VEECO STOCKHOLDER REPRESENTATIONS AND WARRANTIES. Each
Veeco Stockholder hereby represents and warrants to the Company as follows:

                  (a) OWNERSHIP OF EXISTING VEECO SHARES. Such Veeco Stockholder
is the record and Beneficial Owner of the number of Existing Veeco Shares set
forth opposite such Veeco Stockholder's name on SCHEDULE A to this Agreement. On
the date of this Agreement, such Existing Veeco Shares constitute all of the
Veeco Shares owned of record or Beneficially Owned by such Veeco Stockholder.

                                        3

<PAGE>

                  (b) LIENS AND RESTRICTIONS ON EXISTING VEECO SHARES. Such
Veeco Stockholder owns the number of Existing Veeco Shares set forth opposite
such Veeco Stockholder's name on SCHEDULE A hereto, free and clear of any Liens,
claims, security interests, proxies, voting trusts or agreements, restrictions,
qualifications, limitations, understandings or arrangements which would in any
way restrict or impair such Veeco Stockholder's right to vote such Existing
Veeco Shares in his, her or its sole discretion, or could require such Veeco
Stockholder to sell or transfer any of such Existing Veeco Shares (whether upon
default on a loan or otherwise) before the Effective Time.

                  (c) VOTING POWER OVER EXISTING VEECO SHARES. Such Veeco
Stockholder has sole voting power and sole power to issue instructions and sole
power to agree to the matters set forth in this Agreement with respect to all of
such Veeco Stockholder's Existing Veeco Shares.

                  (d) SURVIVAL. The obligations of such Veeco Stockholder under
this Agreement shall survive the death, disability or incapacity of such Veeco
Stockholder.

                  2.4. COMPANY REPRESENTATIONS AND WARRANTIES. The Company
hereby represents and warrants to the Veeco Stockholders as follows:

                  (a) AUTHORITY. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware.
The Company has all power and authority necessary to enable it to enter into
this Agreement and to carry out the transactions contemplated by this Agreement.
This Agreement has been duly and validly authorized, executed and delivered by
the Company and constitutes a legal, valid and binding obligation of the Company
enforceable against the Company in accordance with its terms.

                  (b) NON-CONTRAVENTION. Neither the execution and delivery of
this Agreement by the Company nor the consummation of the transactions
contemplated by this Agreement will violate, result in a breach of, or
constitute a default (or an event which, with notice or lapse of time or both
would constitute a default) under, the certificate of incorporation or by-laws
of the Company.

                  (c) APPROVALS AND CONSENTS. No governmental filings,
authorizations, approvals or Consents, or other governmental action is required
for (i) the execution and delivery of this Agreement by the Company, (ii) the
performance by the Company of its obligations under this Agreement or (iii) the
consummation by the Company of the transactions contemplated by this Agreement.

         SECTION 3.    COVENANTS OF THE VEECO STOCKHOLDERS.

                  3.1. VOTE FOR MERGER. At any meeting of stockholders of Veeco
called to vote upon the Merger and the Merger Agreement or any of the
transactions contemplated by the Merger Agreement, or at any adjournment or
postponement thereof, or in any other circumstances upon which a vote, Consent
or other approval with respect to the Merger and the Merger Agreement is sought,
each Veeco Stockholder's Veeco Shares shall be counted as present thereat for
purposes of

                                        4

<PAGE>

establishing a quorum and shall be voted or Consented (or caused to be voted or
Consented) in favor of the Merger, the adoption by Veeco of the Merger Agreement
and the issuance in the Merger of the Veeco Shares, other matters relating to
the approval of the terms of the Merger Agreement and each of the other
transactions contemplated by the Merger Agreement.

                  3.2. VOTE AGAINST CERTAIN MATTERS. Prior to the Effective
Time, at any meeting of stockholders of Veeco or at any adjournment or
postponement thereof or in any other circumstances upon which a Veeco
Stockholder's vote, Consent or other approval is sought, such Veeco
Stockholder's Veeco Shares shall be counted as present thereat for purposes of
establishing a quorum and shall be voted or Consented (or caused to be voted or
Consented) against any proposal or transaction involving Veeco or any of its
Subsidiaries if such transaction or proposal would in any manner impede,
frustrate, prevent or nullify the Merger, the Merger Agreement or any of the
other transactions contemplated by the Merger Agreement; PROVIDED, that nothing
set forth in this Section 3.2 is intended or shall be construed to restrict or
impair the right of a Veeco Stockholder to vote or Consent (or cause to be voted
or Consented) any Veeco Shares owned of record or Beneficially Owned by such
Veeco Stockholder (i) in favor of any Superior Veeco Proposal or related Veeco
Acquisition Transaction or (ii) in the election of any director of Veeco.

                  3.3. EXECUTION AND DELIVERY OF IRREVOCABLE PROXIES. In order
to effectuate the voting arrangements contemplated by Section 3.1 and Section
3.2 hereof, contemporaneously with the execution and delivery by the parties
hereto of this Agreement, and as a condition to such execution and delivery by
the Company, each Veeco Stockholder is delivering to the Company an Irrevocable
Proxy duly executed by or on behalf of such Veeco Stockholder.

                 3.4. TRANSFERS; OTHER VOTING ARRANGEMENTS INCONSISTENT ACTIONS.

                  (a) TRANSFEREES BOUND. It shall be a condition precedent to
any direct or indirect sale, transfer, pledge, assignment or other disposition
of, or entry into any Contract, option or other arrangement with respect to the
sale, transfer, pledge, assignment or other disposition of, any Veeco Shares by
a Veeco Stockholder (any of the foregoing, whether voluntary or involuntary, by
operation of Law or otherwise a "TRANSFER") to any Person (the "TRANSFEREE")
that (A) the Veeco Stockholder desiring to effect such Transfer provide to the
proposed Transferee in connection therewith a copy of this Agreement and the
Irrevocable Proxy and (B) such Transferee shall agree, prior to the consummation
of such Transfer, to become bound by this Agreement and such Veeco Stockholder's
Irrevocable Proxy and subject to the terms, conditions and restrictions hereof
and thereof in the same manner as the Veeco Stockholder desiring to effect such
Transfer, by executing a writing to such effect in form and substance
satisfactory to the Company.

                  (b) OTHER VOTING ARRANGEMENTS, ETC. No Veeco Stockholder
shall, directly or indirectly, enter into any voting arrangement, whether by
proxy, voting arrangement, voting agreement, voting trust or otherwise with
respect to any Veeco Shares owned of record or Beneficially Owned by such Veeco
Stockholder, other than as contemplated under and as required by this Agreement
and such Veeco Stockholder's Irrevocable Proxy.

                                        5

<PAGE>

                  (c) INCONSISTENT ACTIONS; NON-INTERFERENCE. No Veeco
Stockholder shall, directly or indirectly, take any action that would or could
reasonably be expected to: (A) make any representation or warranty of the Veeco
Stockholder contained herein untrue or incorrect, or (B) result in a breach by
the Veeco Stockholder of its obligations under this Agreement, or (C) result in
a breach by Veeco of its obligations under the Merger Agreement, or (D)
invalidate or in any way limit the enforceability by the Proxyholders (as
defined in the Irrevocable Proxy) of such Veeco Stockholder's Irrevocable Proxy,
or (E) have an effect that would be inconsistent with, or violative of, any
provision or agreement contained in the Merger Agreement.

         SECTION 4.    COVENANTS RELATING TO CONFIDENTIALITY AND DISCLOSURE.

                  4.1. CONFIDENTIALITY. Each Veeco Stockholder recognizes that
successful consummation of the transactions contemplated by this Agreement and
the Merger Agreement may be dependent upon the maintenance of strict
confidentiality with respect to the matters referred to herein and therein. In
this connection, pending public disclosure thereof by Veeco or the Company, each
Veeco Stockholder hereby agrees not to disclose or discuss such matters with
anyone not a party to this Agreement or the Merger Agreement (other than to its
and to Veeco's counsel and advisors) without the prior written consent of the
Company, except for filings, if any, required pursuant to the Exchange Act and
the rules and regulations promulgated thereunder or disclosures that such Veeco
Stockholder's counsel advises are necessary in order to fulfill such Veeco
Stockholder's obligations imposed by Law, in which event such Veeco Stockholder
shall give prior notice of such disclosure to the Company as promptly as
practicable so as to enable the Company to seek a protective order from a court
of competent jurisdiction with respect thereto or similar relief in connection
therewith.

                  4.2. DISCLOSURE. Each Veeco Stockholder hereby agrees to
permit Veeco and the Company to publish and disclose in the Form S-4
Registration Statement and the Joint Proxy Statement (including all documents,
exhibits and schedules filed with the SEC), and any press release or other
disclosure document which Veeco or the Company determine to be necessary or
desirable in connection with the Merger and the transactions related thereto,
such Veeco Stockholder's identity and ownership of Company Common Stock or Veeco
Shares, as the case may be, and the nature of its commitments, arrangements and
understandings under this Agreement and such Veeco Stockholder's Irrevocable
Proxy.

       SECTION 5.      CERTAIN ADDITIONAL COVENANTS OF THE VEECO STOCKHOLDERS.

                  5.1. NO SOLICITATION. Each Veeco Stockholder shall not, and
shall cause its Affiliates and Representatives not to, directly or indirectly,
take any action to initiate, solicit, encourage or facilitate the making of any
Veeco Acquisition Proposal or any inquiry with respect thereto, or engage in
discussions or negotiations with any Person relating to any Veeco Acquisition
Proposal or disclose any non-public information relating to Veeco or any
Subsidiary of Veeco or afford access to the properties, books or records of
Veeco or any Subsidiary of Veeco, to any Person

                                        6

<PAGE>

that has made a Veeco Acquisition Proposal. A Veeco Stockholder shall notify the
Company orally and in writing of any offers, proposals or inquiries received by
such Veeco Stockholder relating to the purchase or acquisition by any Person of
any Veeco Shares and of any Veeco Acquisition Proposal actually known to such
Veeco Stockholder (including, in each case, the material terms and conditions
thereof and the identity of the Person making it), within 24 hours of receipt
thereof. Each Veeco Stockholder shall and shall cause its Representatives to,
immediately cease and cause to be terminated any and all existing activities,
discussions and negotiations, if any, with any parties conducted heretofore with
respect to any Veeco Acquisition Proposal. Notwithstanding the restrictions set
forth in this Section 5.1, each of Veeco and any Person (including any Veeco
Stockholder) who is an officer or director of Veeco may take any action in such
capacity that is consistent with the terms of the Merger Agreement.

                  5.2. RELIANCE. Each Veeco Stockholder understands and
acknowledges that the Company is entering into the Merger Agreement in reliance
upon such Veeco Stockholder's execution and delivery of this Agreement and such
Veeco Stockholder's Irrevocable Proxy.

                  5.3. AFFILIATE AGREEMENT. Each Veeco Stockholder, if requested
by Veeco prior to the Effective Time, will duly execute and deliver to Veeco a
Veeco Affiliate Agreement contemplated by Section 5.21(b) of the Merger
Agreement.

         SECTION 6.    TERMINATION.

                  6.1. TERMINATION OF AGREEMENT. The provisions of this
Agreement shall terminate and be of no further force or effect upon the earlier
to occur of (a) the termination of the Merger Agreement in accordance with its
terms and (b) the Effective Time of the Merger.

         SECTION 7.    MISCELLANEOUS.

                  7.1. EXPENSES. All costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby shall be paid by
the party incurring the expense.

                  7.2. ENTIRE AGREEMENT. This Agreement and any documents to be
delivered in accordance with this Agreement (including the Irrevocable Proxies
of the Veeco Stockholders) contain the entire agreement among the parties
relating to the transactions which are the subject of this Agreement, and all
prior and contemporaneous negotiations, understandings and agreements among the
parties (whether written or oral) with regard to the subject matter of this
Agreement are superseded by this Agreement, and there are no representations,
warranties, understandings or agreements concerning the transactions which are
the subject of this Agreement or those other documents other than those
expressly set forth in this Agreement.

                  7.3. CAPTIONS. The captions of the articles and paragraphs of
this Agreement are for reference only, and do not affect the meaning or
interpretation of this Agreement.

                                        7

<PAGE>

                  7.4. BINDING AGREEMENT; ASSIGNMENT.

                   (a) BINDING AGREEMENT. Each Veeco Stockholder agrees
that this Agreement and the obligations hereunder shall attach to the Veeco
Shares and shall be binding upon any Person to which record or Beneficial
Ownership of such Veeco Shares shall pass, wether by operation of Law or
otherwise, including, without limitation, the Veeco Stockholder's heirs,
distributees, guardians, administrators, executors, legal representatives, or
successors, partners or other transferees (for value or otherwise) and any
other successors in interest. Notwithstanding any transfer of Veeco Shares,
the transferor shall remain liable for the performance of all obligations
under this Agreement of the transferor.

                   (b) ASSIGNMENT. Notwithstanding anything to the
contrary set forth herein, no party may assign any of its rights or
obligations hereunder, by operation of Law or otherwise, without the prior
written consent of the other party.

                  7.5. NOTICES AND OTHER COMMUNICATIONS. Any notice or other
communication under this Agreement must be in writing and will be deemed given
when delivered in person or sent by facsimile (with proof of receipt at the
number to which it is required to be sent), or on the third business day afer
the day on which mailed by first class mail from within the United States of
America, to the following addresses (or such other address as may be specified
after the date of this Agreement by the party to which the notice or
communication is sent):

                  If to the Company:

                  CVC, Inc.
                  525 Lee Road
                  Rochester, New York 14606
                  Attention: Christine Whitman
                  Facsimile No: (716) 458-0426

                  with a copy to:

                  Dewey Ballantine, LLP
                  1301 Avenue of the Americas
                  New York, New York 10019
                  Attention: Richard D. Pritz, Esq.
                  Facsimile No.: (212) 239-6551

                  If to any Veeco Stockholder, to such Veeco Stockholder at the
address set forth under such Veeco Stockholder's signature on the signature
pages to this Agreement.

                                        8

<PAGE>

                  with a copy to:

                  Kaye, Scholer, Fierman, Hays & Handler, LLP
                  425 Park Avenue
                  New York, New York 10022-3598
                  Attention:  Rory Greiss, Esq.
                  Facsimile No.:  (212) 836-8689

                  7.6. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO
AGREEMENTS MADE AND PERFORMED IN SUCH STATE AND WITHOUT REGARD TO CONFLICTS OF
LAWS DOCTRINES.

                  7.7. AMENDMENTS. Prior to the Effective Time, this Agreement
may be amended only by a document in writing signed by the Company and each
Veeco Stockholder.

                  7.8. COUNTERPARTS. This Agreement may be executed in two or
more counterparts, some of which may contain the signatures of some, but not
all, the parties hereto. Each of those counterparts will be deemed an original,
but all of them together will constitute one and the same Agreement.

                  7.9. SEVERABILITY. If any provision of this Agreement is held
to be illegal, invalid or unenforceable under any present or future Law, and if
the rights or obligations of any party hereto under this Agreement will not be
materially and adversely affected thereby, (i) such provision will be fully
severable, (ii) this Agreement will be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part hereof,
(iii) the remaining provisions of this Agreement will remain in full force and
effect and will not be affected by the illegal, invalid or unenforceable
provision or by its severance herefrom and (iv) in lieu of such illegal, invalid
or unenforceable provision, there will be added automatically as a part of this
Agreement a legal, valid and enforceable provision as similar in terms to such
illegal, invalid or unenforceable provision as may be possible.

                  7.10. ENFORCEMENT. The parties hereto agree that irreparable
damage would occur in the event that any of the provisions of this Agreement
were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that the parties hereto shall be entitled to
an injunction or injunctions to prevent breaches of this Agreement and to
enforce specifically the terms and provisions of this Agreement in any Federal
court located in the State of Delaware or in a Delaware state court, this being
in addition to any other remedy to which they are entitled at law or in equity.
In addition, each of the parties hereto (i) consents to the personal
jurisdiction of any Federal court located in the State of Delaware or any
Delaware state court in any action or proceeding relating to or arising out of
this Agreement (including, with respect to a Veeco Stockholder, such Veeco
Stockholder's Irrevocable Proxy) or any of the transactions contemplated hereby,
(ii) agrees that such party will not attempt to deny or defeat such personal
jurisdiction by motion or other request for leave from any such court, (iii)
agrees that such parties will not seek to

                                        9

<PAGE>

change the venue of any such action or proceeding or otherwise to move any such
action or proceeding to another court, whether because of inconvenience of the
forum or otherwise (provided that nothing in this Section will prevent a party
from removing an action or proceeding from a Delaware state court to a Federal
court located in the State of Delaware), (iv) agrees that such party will not
bring any action relating to this Agreement or any Irrevocable Proxy or any of
the transactions contemplated hereby or thereby in any court other than a
Federal court sitting in the State of Delaware or a Delaware state court and (v)
waives any right to trial by jury with respect to any claim or proceeding
related to or arising out of this Agreement or any Irrevocable Proxy or any of
the transactions contemplated hereby or thereby.

                  7.11. FURTHER ASSURANCES. From time to time, at the other
party's request and without further consideration, each party hereto shall
execute and deliver such additional documents and take all such further lawful
action as may be necessary or desirable to consummate and make effective, in the
most expeditious manner practicable, the transactions contemplated by this
Agreement and the Irrevocable Proxies.

                                       10

<PAGE>

                  IN WITNESS WHEREOF, each party hereto has caused this
Agreement to be signed by its officer thereunto duly authorized as of the date
in the first paragraph of this Agreement.

                                            THE COMPANY

                                            CVC, INC.

                                            By:
                                                -------------------------
                                                   Name:
                                                   Title:

                                            VEECO STOCKHOLDERS

                                            -----------------------------
                                            Edward H. Braun

                                            Edward H. Braun's
                                              Address for Notice:

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

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

                                            -----------------------------
                                            Facsimile No.:
                                                           --------------

                                            -----------------------------
                                            John F. Rein, Jr.

                                            John F. Rein's
                                               Address for Notice:

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

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

                                            -----------------------------
                                            Facsimile No.:
                                                           --------------

                                       11

<PAGE>

                                            -----------------------------
                                            Emanuel N. Lakios

                                            Emanuel N. Lakios'
                                              Address for Notice:

                                            ===============================
                                            ===============================
                                            Facsimile No.:___________________

                                            -----------------------------
                                            Joseph F. Rivlin

                                            Joseph F. Rivlin's
                                              Address for Notice:

                                            ===============================

                                            ===============================
                                            Facsimile No.:___________________

                                       12

<PAGE>

                                   SCHEDULE A

VEECO STOCKHOLDER                           NO. OF EXISTING VEECO SHARES HELD

Edward H. Braun                             125,019

John F. Rein, Jr.                             1,946

Emanuel N. Lakios                             1,232

Joseph F. Rivlin                                293
                                            -------
                                            128,490

                               Schedule A - Page 1

<PAGE>

                                                                      EXHIBIT A

                               VEECO STOCKHOLDERS
                     POWER OF ATTORNEY AND IRREVOCABLE PROXY

         Reference is hereby made to that Certain Veeco Stockholders Voting
Agreement (the "VOTING AGREEMENT"), dated as of the date hereof, of which this
Veeco Stockholders Power of Attorney and Irrevocable Proxy (this "IRREVOCABLE
PROXY") forms a part. Capitalized terms used but not defined in this Irrevocable
Proxy have the respective meanings ascribed to such terms in the Voting
Agreement. This Irrevocable Proxy is being delivered by the undersigned Veeco
Stockholder (the "GRANTING STOCKHOLDER") pursuant to Section 3.3 of the Voting
Agreement.

         The undersigned Granting Stockholder hereby irrevocably appoints CVC,
Inc., a Delaware corporation ("CVC"), and each of CVC's officers and other
designees (each such Person, a "PROXYHOLDER") as the Granting Stockholder's
attorney-in-fact and proxy pursuant to the provisions of Section 212 of the
Delaware General Corporation Law, with full power of substitution, in the
Granting Stockholder's name, place and stead, to vote and otherwise act (by
written consent or otherwise) with respect to all of the Veeco Shares now owned
of record or Beneficially Owned by the Granting Stockholder and of which the
Granting Stockholder may hereafter acquire record or Beneficial Ownership, and
any other securities, if any (the "OTHER SECURITIES"), which the Granting
Stockholder is entitled to vote at any meeting of the stockholders of Veeco
(whether annual or special and whether or not an adjourned or postponed meeting)
or consent in lieu of any such meeting or otherwise:

                  (a) in favor of the Merger, the adoption by Veeco of the
         Merger Agreement and the issuance of Veeco Shares in the Merger, other
         matters relating to the approval of the terms of the Merger Agreement
         and each of the other transactions contemplated by the Merger
         Agreement; and

                  (b) against any proposal or transaction involving Veeco or any
         of its Subsidiaries if any such transaction or proposal would in any
         manner impede, frustrate, prevent or nullify the Merger, the Merger
         Agreement or any of the other transactions contemplated by the Merger
         Agreement; PROVIDED, HOWEVER, that nothing set forth in this paragraph
         (b) is intended or shall be construed to grant to any Proxyholder the
         right to vote or otherwise act (by written consent or otherwise) with
         respect to any Veeco Shares or Other Securities owned of record or
         Beneficially Owned by the Granting Stockholder (i) against any Superior
         Veeco Proposal or related Veeco Acquisition Transaction or (ii) in the
         election of any director of Veeco.

         THIS POWER OF ATTORNEY AND IRREVOCABLE PROXY IS IRREVOCABLE AND COUPLED
WITH AN INTEREST. The Granting Stockholder hereby revokes all other proxies and
powers of attorney with respect to Veeco Shares and the Other Securities that
the Granting Stockholder may have heretofore granted, and no subsequent proxy or
power of attorney shall be given or written consent executed (and if given or
executed, shall not be effective) by the Granting Stockholder with respect
thereto. All authority herein conferred or agreed to be conferred shall survive
the death or incapacity of the Granting Stockholder and any obligation of the
Granting Stockholder under this Irrevocable Proxy shall be binding upon the
heirs, personal representatives, successors and assigns of the Granting
Stockholder.

                               Exhibit A - Page 1

<PAGE>

         This Irrevocable Proxy shall be valid and irrevocable until, and shall
terminate upon, the earlier to occur of (a) the termination of the Merger
Agreement in accordance with its terms and (b) the Effective Time of the Merger.

                           ----------------------------------------------------
                            (Signature of Granting Stockholder)

                           ----------------------------------------------------
                           (Printed Name of Granting Stockholder as it Appears
                           on Certificate Representing Veeco Shares)

                           ----------------------------------
                           (Date)

                               Exhibit A - Page 2

<PAGE>

                                                                       EXHIBIT C

                              CERTIFICATE OF MERGER

                                       OF

                             VEECO ACQUISITION CORP.

                            (A DELAWARE CORPORATION)

                                      INTO

                                    CVC, INC.

                            (A DELAWARE CORPORATION)

                         PURSUANT TO SECTION 251 OF THE
                GENERAL CORPORATION LAW OF THE STATE OF DELAWARE
--------------------------------------------------------------------------------
         The undersigned corporations hereby certify as follows:

         1. The names of the constituent corporations are Veeco Acquisition
Corp., a Delaware corporation ("ACQUISITION"), and a wholly-owned subsidiary of
Veeco Inc., a Delaware corporation ("VEECO"), and Veeco, Inc., a Delaware
corporation (the "COMPANY").

         2. An Agreement and Plan of Merger, dated as of February 29, 2000 (the
"AGREEMENT AND PLAN OF MERGER"), among Veeco, Acquisition and the Company has
been approved, adopted, certified, executed and acknowledged by Acquisition and
the Company in accordance with Section 251 of the General Corporation Law of the
State of Delaware.

         3. The Company shall be the surviving corporation, and as the surviving
corporation, shall keep the name Veeco, Inc. (the "SURVIVING CORPORATION").

         4. The Certificate of Incorporation of the Company shall constitute the
Certificate of Incorporation of the Surviving Corporation, subject to the
following amendments which shall be effected by the merger:

                  (a) Article IV of the Certificate of Incorporation is hereby
         amended and restated in its entirety to read as follows:

                                   "ARTICLE IV

                           The Corporation is authorized to issue______shares of
                  common stock, $.01 par value per share."

                                        1

<PAGE>

                  (b) Article VIII of the Certificate of Incorporation is hereby
         deleted in its entirety.

                  (c) The Articles of the Certificate of Incorporation are
         hereby appropriately re-numbered to reflect the deletion of Article
         VIII effected hereby.

         5. The executed Agreement and Plan of Merger is on file at the office
of the Surviving Corporation located at 525 Lee Road, Rochester, New York 14606.
A copy of the Agreement and Plan of Merger will be furnished by the Surviving
Corporation, without cost, to any stockholder of Acquisition or the Company who
sends a written request therefor to the Surviving Corporation at its address set
forth in the preceding sentence.

         6. The Surviving Corporation agrees that it may be served with process
in the State of Delaware in any proceeding for enforcement of any obligation of
Acquisition, as well as for enforcement of any obligation of the Surviving
Corporation arising from the merger, including any suit or other proceeding to
enforce the right of any stockholders as determined in appraisal proceedings
pursuant to the provisions of Section 262 of the General Corporation Law of the
State of Delaware. The Surviving Corporation irrevocably appoints the Secretary
of State of the State of Delaware as its agent to accept service of process in
any such suit or other proceeding. A copy of such process shall be mailed by the
Secretary of State of the State of Delaware to Veeco, Inc., 525 Lee Road,
Rochester, New York 14606, Attention: Secretary.

Dated: ___________ __, 2000.

                                           CVC, INC.

                                           By:
                                              ----------------------------------
                                              Name:
                                              Title:

                                           VEECO ACQUISITION CORP.

                                           By:
                                              ----------------------------------
                                              Name:
                                              Title:

                                        2

<PAGE>

                                                               Exhibit D

                                           EMPLOYMENT AGREEMENT

     This EMPLOYMENT  AGREEMENT,  dated as of February 29, 2000,
is by and between  Christine B. Whitman (the "Employee") and Veeco
Instruments, Inc., a Delaware corporation (the "Company").

     The Company and the Employee hereby agree as follows:

     1. EMPLOYMENT.  The Company hereby employs the Employee,  and the
Employee  hereby accepts employment by the Company, upon the terms and
conditions hereinafter set forth.

     2. TERM.  Subject to the  provisions for earlier  termination as herein
provided, the employment of the Employee  hereunder  will be for the period
commencing at the Effective Time of the Agreement  and Plan of Merger (the
"Merger  Agreement")  among CVC,  Inc, a Delaware  corporation,  Veeco
acquisition  corporation,  and the Company,  dated February 29, 2000 (the
"Effective  Date") and ending on the third  anniversary  of such date.
Effective on the first  anniversary  of the date hereof and on each
successive  anniversary  date  thereafter,  the term shall  automatically be
extended by an additional one year  unless,  no later  than 90 days  prior to
any such  anniversary  date,  either  the  Company  or the Employee  gives
written  notice  to the  other  that the term  will not be  extended,  in
which  case the Employee's  employment  hereunder  shall  terminate  upon the
 expiration  of the  then-current-term.  The period of the Employee's
employment  under this Agreement,  as it may be terminated or extended from
time to time as provided herein, is referred to hereafter as the "Employment
Period."

     3. DUTIES AND  RESPONSIBILITIES.  The Employee  will be employed by the
Company in the  positions  set  forth  on Annex A, a copy of which is
attached  hereto  and the  terms of which  are incorporated  herein by
reference.  The Employee will faithfully  perform the duties and
responsibilities of each such  office,  as they may be  assigned  from time
to time by the Chief  Executive  Officer of the Company as specified on Annex
A. In addition,  during the  Employment  Period,  the Company will make best
efforts to ensure the Employee is a member of the Board.

     4. TIME TO BE DEVOTED TO  EMPLOYMENT.  Except for vacation in accordance
 with the Company's  policy in effect from time to time and absences due to
temporary  illness,  the Employee  shall devote full time,  attention  and
energy  during the  Employment  Period to the  business of the  Company.
During the Employment  Period,  the Employee will not be engaged in any other
business  activity which, in the  reasonable  judgment  of the  Board or its
designee,  conflicts  with  the  duties  of the  Employee hereunder, whether
or not such activity is pursued for gain, profit or other pecuniary advantage.

     5. COMPENSATION; REIMBURSEMENT.

         (a) BASE  SALARY.  The  Company  will pay to the  Employee an annual
base salary of not less than the amount  specified as the Initial Base Salary
on Annex A, payable in accordance  with the Company's  normal  payroll
policy.  The  Employee's  base  salary  shall  be  reviewed  annually  by
the Compensation  Committee of the Board (the  "Committee") and shall be
subject to increase at the option and sole discretion of the Committee.

         (b) BONUS.  The Employee  shall be eligible to receive,  at the sole
 discretion of the  Committee,  an  annual  cash  bonus,  with a  maximum
target  as  specified  on  Annex  A,  based on pre-determined  performance
standards of the Company,  such as under the  Company's  bonus  program as in
effect from time to time.

         (c) BENEFITS;  STOCK OPTIONS.  In addition to the salary and cash
bonus referred to above,  the Employee  shall be entitled  during the
Employment  Period to  participate  in such  employee benefit  plans or
programs of the  Company,  and shall be entitled to such other fringe
benefits,  as are from time to time made  available  by the Company
generally  to  employees  of the  Employee's  position, tenure,  salary,  and
 other  qualifications.  Without  limiting  the  generality  of the
foregoing,  the Employee  shall be eligible for such awards,  if any,  under
the  Company's  stock option plan as shall be granted to the  Employee by the
 Committee or other  appropriate  designee of the Board acting in its sole
discretion.  During  the  Employment  Period,  the  Company  will  lease an
automobile  for the  Employee comparable  to the  automobile  leased by CVC,
Inc. for the Employee at the time of the  execution of the Merger  Agreement.
 Except to the extent provided  herein,  the Employee  acknowledges and
agrees that the Company  does not  guarantee  the  adoption or  continuance
of any  particular  employee  benefit plan or program or other fringe benefit
during the Employment  Period,  and  participation  by the Employee in any
such plan or program shall be subject to the rules and regulations applicable
thereto.

         (d) EXPENSES.  The Company will  reimburse  the Employee,  in
accordance  with the practices  in effect  from time to time for other
officers or staff  personnel  of the  Company,  for all reasonable and
necessary  traveling  expenses and other  disbursements  incurred by the
Employee for or on behalf of the Company in the  performance of the
Employee's  duties  hereunder,  upon  presentation by the Employee to the
Company of appropriate  vouchers or  documentation.  Such expenses shall
include,  without limitation,  reasonable  expenses to maintain an  apartment
 in any city in which  Employee is required to spend more than 30 days in any
calendar year.

     6. DEATH;  DISABILITY.  If the Employee  dies or is  incapacitated  or
disabled by accident,  sickness or  otherwise,  so as to render the  Employee
 mentally  or  physically  incapable  of performing  the services  required
to be performed by the Employee  under this Agreement for a period that would
entitle the Employee to qualify for long-term  disability benefits under the
Company's  then-current long-term  disability  insurance  program  or,  in
the  absence  of such a  program,  for a  period  of 90 consecutive  days or
longer (such condition being herein referred to as a  "Disability"),  then
(i) in the case of the Employee's  death,  the Employee's  employment shall
be deemed to terminate on the date of the Employee's  death or (ii) in the
case of a  Disability,  the Company,  at its option,  may  terminate  the
employment  of the Employee  under this  Agreement  immediately  upon giving
the  Employee  notice to that effect.  Disability  shall  be  determined  by
the  Board  or the  Board's  designee.  In  the  case  of a Disability,
until the Company shall have  terminated  the Employee's  employment
hereunder in accordance with the  foregoing,  the  Employee  shall  be
entitled  to  receive  compensation  provided  for  herein notwithstanding
any such physical or mental disability.

     7. TERMINATION  FOR CAUSE.  The Company  may,  with the  approval of a
majority of the Board,  terminate the employment of the Employee  hereunder
at any time during the  Employment  Period for "cause" (such termination
being hereinafter  called a "Termination for Cause") by giving the Employee
notice of such termination,  upon the giving of which such termination will
take effect  immediately.  For purposes of this  Agreement,  "cause" means
(i) the Employee's  willful and substantial  misconduct,  (ii) the
Employee's  repeated,  after  written  notice from the  Company,  neglect of
duties or failure to act which can  reasonably  be expected  to affect
materially  and  adversely  the  business or affairs of the Company or any
subsidiary  or  affiliate  thereof,  (iii) the  Employee's  material  breach
of any of the agreements  contained  in Sections  13, 14, 15 or 16 hereof,
(iv) the  commission  by the Employee of any material fraudulent act with
respect to the business and affairs of the Company or any subsidiary or
affiliate thereof or (v) the Employee's conviction of (or plea of NOLO
CONTENDERE to) a crime constituting a felony.

     8. TERMINATION WITHOUT CAUSE. The Company may terminate the employment
of the Employee hereunder at any time without "cause" (such termination
being hereinafter called a "Termination Without Cause") by giving the
Employee notice of such termination, upon the giving of which such
termination will take effect on the date specified on such notice which shall
not be later than 30 days from the date such notice is given.

     9. GOOD REASON. For purposes of this Agreement, termination for "Good
Reason" shall mean termination by the Employee of her employment with the
Company hereunder based on:

         (i) any diminution in the Employee's position, title,
responsibilities, authority or reporting responsibilities;

         (ii) the Employee is not at any time during the Employment Period a
member of the Board;

         (iii) any person other than the Employee succeeds Edward H. Braun as
Chief Executive Officer of the Company; or

         (iv) the breach by the Company of any of its material obligations
under this Agreement.

     10. VOLUNTARY TERMINATION. Any termination of the employment of the
Employee hereunder, otherwise than as a result of death or Disability, a
Termination For Cause, a Termination Without Cause or a termination for Good
Reason will be deemed to be a "Voluntary Termination." A Voluntary
Termination will be deemed to be effective

                                       5

<PAGE>

immediately upon such termination or, at the Company's option, up to 30 days
following a notice of voluntary termination given by the Employee.

     11. EFFECT OF TERMINATION OF EMPLOYMENT.

         (a) TERMINATION FOR CAUSE, VOLUNTARY TERMINATION. Upon a Termination
for Cause or a Voluntary Termination, neither the Employee nor the Employee's
beneficiaries or estate will have any further rights or claims against the
Company under this Agreement except the right to receive (i) the unpaid
portion of the base salary provided for in Section 5(a) hereof, computed on a
PRO RATA basis to the date of termination, (ii) payment of her previously
accrued but unpaid rights that are then payable in accordance with the terms
of any incentive compensation, stock option, retirement, employee welfare or
other employee benefit plans or programs of the Company in which the
Executive is then participating in accordance with Sections 5(b) and 5(c)
hereof and (iii) reimbursement for any expenses for which the Employee shall
not have theretofore been reimbursed as provided in Section 5(d) hereof.

         (b) TERMINATION WITHOUT CAUSE; TERMINATION FOR GOOD REASON. Upon a
Termination Without Cause or a termination for Good Reason, (i) the Employee
shall be entitled to receive the same payments and other rights as provided
for in Sections 11(a) hereof, (ii) the Employee shall be entitled to receive
a severance payment in the form a cash lump sum, paid within 15 days of the
date of termination, with the amount of such payment to be the aggregate
amount of the Employee's base salary as in effect immediately prior to such
termination payable over the period of months specified in Annex A, (iii) any
options held by the Employee as of such effective date to purchase shares of
the Company's stock that were not vested and exercisable as of such date of
termination shall become immediately and fully vested and exercisable as of
such date of termination and (iv) the

                                       6

<PAGE>

Employee shall retain the right to exercise any options to purchase shares of
the Company's stock until the earlier of (a) 12 months following the date of
such termination or (b) the expiration of the original full term of each such
option.

         (c) DEATH; DISABILITY. In the event Employee employment is
termination hereunder on account of death or Disability, (i) the Employee
shall be entitled to receive the same payments and other rights as provided
for in Sections 11(a) hereof, (ii) the Employee shall be entitled to receive
a severance payment in the form a cash lump sum, paid within 15 days of the
date of termination, with the amount of such payment to be the aggregate
amount of the Employee's base salary as in effect immediately prior to such
termination payable over 12 months.

     12. CHANGE IN CONTROL PROVISIONS.

         (a) EFFECT OF CHANGE IN CONTROL. In the event of a Change in Control
during the Employment Period, all options held by the Employee to purchase
shares of the Company's stock that are not then vested and exercisable in
accordance with the terms of such options or the terms of any Company stock
option plan shall become immediately and fully vested and exercisable as of
the effective date of the Change in Control; PROVIDED, HOWEVER, that no such
vesting shall occur if provision has been made in writing in connection with
such transaction for (a) the continuation of such plan and/or the assumption
of such options by a successor corporation (or a parent or subsidiary
thereof) or (b) the substitution for such options of new options covering the
stock of a successor corporation (or a parent or subsidiary thereof), with
appropriate adjustments as to the number and kinds of shares and exercise
prices. In the event of any such continuation, assumption or substitution,
such plan and/or such options shall continue in the manner and under the
terms so provided.

                                       7

<PAGE>

         (b) DEFINITION OF CHANGE IN CONTROL. For purposes of this Agreement,
a "Change in Control" shall be deemed to have occurred upon:

              (i) an acquisition subsequent to the date hereof by any person,
entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act")) (a
"Person"), of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 30% or more of either (A) the then
outstanding shares of common stock of the Company ("Common Stock") or (B) the
combined voting power of the then outstanding voting securities of the
Company entitled to vote generally in the election of directors (the
"Outstanding Company Voting Securities"); excluding, however, the following:
(1) any acquisition directly from the Company, other than an acquisition by
virtue of the exercise of a conversion privilege unless the security being so
converted was itself acquired directly from the Company, (2) any acquisition
by the Company and (3) any acquisition by an employee benefit plan (or
related trust) sponsored or maintained by the Company;

              (ii) a change in the composition of the Board such that during
any period of two consecutive years, individuals who at the beginning of such
period constitute the Board, and any new director (other than a director
designated by a person who has entered into an agreement with the Company to
effect a transaction described in clause (i), (iii) or (iv) of this
paragraph) whose election by the Board or nomination for election by the
Company's stockholders was approved by a vote of at least two-thirds of the
directors then still in office who either were directors at the beginning of
the period or whose election or nomination for election was previously so

                                       8

<PAGE>

approved, cease for any reason to constitute at least a majority of the
members thereof;

             (iii) the approval by the stockholders of the Company of a
merger, consolidation, reorganization or similar corporate transaction,
whether or not the Company is the surviving corporation in such transaction,
in which outstanding shares of Common Stock are converted into (A) shares of
stock of another company, other than a conversion into shares of voting
common stock of the successor corporation (or a holding company thereof)
representing 80% of the voting power of all capital stock thereof outstanding
immediately after the merger or consolidation or (B) other securities (of
either the Company or another company) or cash or other property;

              (iv) the approval by the stockholders of the Company of (A) the
sale or other disposition of all or substantially all of the assets of the
Company or (B) a complete liquidation or dissolution of the Company; or

              (v) the adoption by the Board of a resolution to the effect
that any person has acquired effective control of the business and affairs of
the Company.

     13. NONDISCLOSURE OF INFORMATION. The Employee will not, at any time
during or after the Employment Period, disclose to any person, firm,
corporation or other business entity, except as required by law, any
non-public information concerning the business, products, clients or affairs
of the Company or any subsidiary or affiliate thereof for any reason or
purpose whatsoever, nor will the Employee make use of any of such non-public
information for personal purposes or for the benefit of any person, firm,
corporation or other business entity except the Company or any subsidiary or
affiliate thereof.

                                       9

<PAGE>

     14. COMPANY RIGHT TO INVENTIONS. The Employee will promptly disclose,
grant and assign to the Company, for its sole use and benefit, any and all
inventions, improvements, technical information and suggestions relating in
any way to the business of the Company which the Employee may develop or
acquire during the Employment Period (whether or not during usual working
hours), together with all patent applications, letters patent, copyrights and
reissues thereof that may at any time be granted for or upon any such
invention, improvement or technical information. In connection therewith:

         (i) the Employee shall, without charge, but at the expense of the
Company, promptly at all times hereafter execute and deliver such
applications, assignments, descriptions and other instruments as may be
necessary or proper in the opinion of the Company to vest title to any such
inventions, improvements, technical information, patent applications,
patents, copyrights or reissues thereof in the Company and to enable it to
obtain and maintain the entire right and title thereto throughout the world;
and

         (ii) the Employee shall render to the Company, at its expense
(including a reasonable payment for the time involved in case the Employee is
not then in its employ), all such assistance as it may require in the
prosecution of applications for said patents, copyrights or reissues thereof,
in the prosecution or defense of interferences which may be declared
involving any said applications, patents or copyrights and in any litigation
in which the Company may be involved relating to any such patents,
inventions, improvements or technical information.

     15. NON-COMPETITION.

                                      10

<PAGE>

        (a) Employee hereby agrees that for the duration of Employee's
employment with the Company, Employee will not, without the consent of the
Company, directly or indirectly, engage or invest in, own, manage, operate,
finance, control or participate in the ownership, management, operation,
financing or control of, be employed by, associated with, or in any manner
connected with, lend Employee's name to, lend Employee's credit to or render
services or advice to, any business whose products or activities compete in
whole or in part with the former, current or currently contemplated products
or activities of the Company or any of its subsidiaries, in any country in
which the Company or any of its subsidiaries conducts business; PROVIDED,
HOWEVER, that Employee may purchase or otherwise acquire up to (but not more
than) one percent of any class of securities of any enterprise (but without
otherwise participating in the activities of such enterprise) if such
securities are listed on any national or regional securities exchange or have
been registered under Section 12(g) of the Securities Exchange Act of 1934,
as amended. Employee agrees that this covenant is reasonable with respect to
its duration, geographical area, and scope.

         (b) Employee hereby agrees that for a period of two (2) years
following the termination of Employee's employment with the Company, Employee
will not, directly or indirectly, engage or invest in, own, manage, operate,
finance, control or participate in the ownership, management, operation,
financing, or control of, be employed by, associated with, or in any manner
connected with, lend Employee's name to, lend Employee's credit to or render
services or advice to, any business whose products or activities compete in
whole or in part with the former, current or currently contemplated products
or activities of the Company or any of its subsidiaries, in any state of the
United States or in any other country in which the Company or any of its

                                      11

<PAGE>

subsidiaries sells products or conducts business; PROVIDED, HOWEVER, that
Employee may purchase or otherwise acquire up to (but not more than) one
percent of any class of securities of any enterprise (but without otherwise
participating in the activities of such enterprise) if such securities are
listed on any national or regional securities exchange or have been
registered under Section 12(g) of the Securities Exchange Act of 1934, as
amended. Employee agrees that this covenant is reasonable with respect to its
duration, geographical area, and scope.

         (c) In the event of a breach by Employee of any covenant set forth
in this Section 15, the term of such covenant will be extended by the period
of the duration of such breach.

         (d) For a period of two (2) years following the termination of
Employee's employment with the Company, Employee will, within ten days after
accepting any employment, advise the Company of the identity of any employer
of Employee. The Company may serve notice upon each such employer that
Employee is bound by this Agreement and furnish each such employer with a
copy of this Agreement or relevant portions hereof.

     16. NON-SOLICITATION.

         (a) Employee hereby agrees that, for the duration of Employee's
employment with the Company and for a period of two (2) years following the
termination of Employee's employment with the Company:

              (i) Employee will not, directly or indirectly, either for
itself or any other person: (A) induce or attempt to induce any employee of
the Company or any of its subsidiaries to leave the employ of the Company or
such subsidiary, (B) in any

                                      12

<PAGE>

way interfere with the relationship between the Company and its subsidiaries
and any employee of the Company or any of its subsidiaries, (C) employ, or
otherwise engage as an employee, independent contractor or otherwise, any
current or former employee of the Company or any of its subsidiaries, other
than such former employees who have not worked for the Company or any of its
subsidiaries for more than one year or (D) induce or attempt to induce any
customer, supplier, licensee or business relation of the Company or any of
its subsidiaries to cease doing business with the Company or such subsidiary,
or in any way interfere with the relationship between the Company and its
subsidiaries and any customer, supplier, licensee or business relation of the
Company or any of its subsidiaries; and

              (ii) Employee will not, directly or indirectly, either for
herself or any other person, solicit the business of any person known to
Employee to be a customer of the Company or any of its subsidiaries, whether
or not Employee had personal contact with such person, with respect to
products or activities which compete in whole or in part with the former,
current or currently contemplated products or activities of the Company and
its subsidiaries or the products or activities of the Company and its
subsidiaries in existence or contemplated at the time of termination of
Employee's employment.

         (b) In the event of a breach by Employee of any covenant set forth
in this Section 16, the term of such covenant will be extended by the period
of the duration of such breach.

     17. ENFORCEMENT. It is the desire and intent of the parties hereto that
the provisions of this Agreement be enforceable to the fullest extent
permissible under the laws

                                      13

<PAGE>

and public policies applied in each jurisdiction in which enforcement is
sought. Accordingly, to the extent that a restriction contained in this
Agreement is more restrictive than permitted by the laws of any jurisdiction
where this Agreement may be subject to review and interpretation, the terms
of such restriction, for the purpose only of the operation of such
restriction in such jurisdiction, will be the maximum restriction allowed by
the laws of such jurisdiction and such restriction will be deemed to have
been revised accordingly herein.

     18. REMEDIES; SURVIVAL. (a) A breach of the obligations imposed on
Employee in Sections 13, 14, 15, and 16 hereof may not be one which is
capable of being easily measured by monetary damages. Consequently, Employee
specifically agrees that Sections 13, 14, 15, and 16 may be enforced by
injunctive relief. Further, Employee specifically agrees that, in addition to
such injunctive relief, and not in lieu of it, the Company may also bring
suit for damages incurred by the Company as a result of a breach of
Employee's obligations under Sections 13, 14, 15, and 16.

         (b) Notwithstanding anything contained in this Agreement to the
contrary, the provisions of Sections 13, 14, 15 and 16 hereof will survive
the expiration or other termination of this Agreement until, by their terms,
such provisions are no longer operative.

     18. NOTICES. Notices and other communications hereunder will be in
writing and will be delivered personally or sent by air courier or first
class certified or registered mail, return receipt requested and postage
prepaid, addressed as follows:

if to the Employee:                  as specified in Annex A

                                      14

<PAGE>

and if to the Company:       Veeco Instruments, Inc.
                             Terminal Drive
                             Plainview, New York 11803
                             Attention: Chief Executive Officer

All notices and other communications given to any party hereto in accordance
with the provisions of this Agreement will be deemed to have been given on
the date of delivery, if personally delivered; on the business day after the
date when sent, if sent by air courier; and on the third business day after
the date when sent, if sent by mail, in each case addressed to such party as
provided in this Section 18 or in accordance with the latest unrevoked
direction from such party.

        19. BINDING AGREEMENT; BENEFIT. The provisions of this Agreement will
be binding upon, and will inure to the benefit of, the respective heirs,
legal representatives and successors of the parties hereto.

        20. GOVERNING LAW. This Agreement will be governed by, and construed
and enforced in accordance with, the laws of the State of New York, without
reference to conflict of law principles.

        21. WAIVER OF BREACH. The waiver by either party of a breach of any
provision of this Agreement by the other party must be in writing and will
not operate or be construed as a waiver of any subsequent breach by such
other party.

        22. ENTIRE AGREEMENT; AMENDMENTS. This Agreement (including Annex A)
contains the entire agreement between the parties with respect to the subject
matter hereof and supersedes all prior agreements or understandings among the
parties with respect thereof. This Agreement will also supercede the
employment agreement between the Employee and CVC, Inc., dated December 15,
1997. This Agreement may be amended only by an agreement in writing signed by
the parties hereto.

                                       15
<PAGE>

        23. HEADINGS. The section headings contained in this Agreement are
for reference purposes only and will not affect in any way the meaning or
interpretation of this Agreement.

        24. SEVERABILITY. Any provision of this Agreement that is prohibited
or unenforceable in any jurisdiction will, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction will not invalidate or render
unenforceable such provision in any other jurisdiction.

        25. ASSIGNMENT. This Agreement is personal in its nature and the
parties hereto shall not, without the consent of the other, assign or
transfer this Agreement or any rights or obligations hereunder; PROVIDED,
that the provisions hereof (including, without limitation, Sections 13, 14,
15, and 16) will inure to the benefit of, and be binding upon, each successor
of the Company, whether by merger, consolidation, transfer of all or
substantially all of its assets or otherwise.

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the
date first above written.

EMPLOYEE                               VEECO INSTRUMENTS, INC.

-------------------------              -------------------------
                                       By:
                                       Title:

                                       16
<PAGE>

                                    ANNEX A
                                       to
                              Employment Agreement

                    Name of Employee: Christine B. Whitman

1.  Position:                          President and Chief Operating Officer

2.  Board of Directors' Initial
    Designee to whom Employee
    Shall Report:                      Chief Executive Officer

3.  Initial Base Salary:               $300,000

4.  Target Bonus                       $150,000

4.  Number of months used to
    calculate lump sum severance
    payment in the event of a
    Termination Without Cause
    or for Good Reason                 24 months

5.  Employee's address for notices:    142 Park Road
                                       Pittsford, NY 14534

<PAGE>

                                                                       EXHIBIT E

                                     COMPANY

                              AFFILIATES AGREEMENT

         This COMPANY AFFILIATES AGREEMENT (this "AFFILIATES AGREEMENT") is
entered into as of _________ ___, 2000, between Veeco Inc., a Delaware
corporation ("VEECO"), and the undersigned stockholder (the "STOCKHOLDER") of
CVC, Inc., a Delaware corporation (the "COMPANY").

                                    RECITALS

         A. Veeco, Veeco Acquisition Corp., a newly-formed subsidiary of Veeco
("ACQUISITION"), and the Company plan to enter into or have entered into an
Agreement and Plan of Merger (the "MERGER AGREEMENT"), pursuant to which
Acquisition will be merged with and into the Company (the "MERGER").

         B. Upon consummation of the Merger and in connection therewith, the
undersigned Stockholder will become the owner of shares of common stock, $0.01
par value per share, of Veeco ("VEECO SHARES").

          C. The parties to the Merger Agreement intend to cause the Merger to
be accounted for as a "pooling of interests" pursuant to APB Opinion No. 16,
Accounting Series Releases No.130, 135 and 146 and Staff Accounting Bulletins
Topic Two.

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements, provisions and covenants set forth in the Merger Agreement and in
this Company Affiliates Agreement, it is hereby agreed as follows:

          1. The undersigned Stockholder hereby agrees that:

                  (a) The undersigned Stockholder may be deemed to be (but does
not hereby admit to be) an "affiliate" of the Company within the meaning of Rule
144 under the Securities Act of 1933, as amended (the "SECURITIES ACT"), and
Accounting Series Release No. 130, as amended ("RELEASE NO. 130"), of the
Securities and Exchange Commission (the "SEC").

                  (b) The undersigned Stockholder will not sell, exchange,
transfer, pledge, dispose of or otherwise reduce the undersigned Stockholder's
risk relative to the Veeco Shares or any part thereof until such time after the
Effective Time (as such term is defined in the Merger Agreement) of the Merger
as financial results covering at least thirty (30) days of the combined
operations of Veeco and the Company after the Effective Time of the Merger have
been, within the meaning of said Release No. 130, filed by Veeco with the SEC or
published by Veeco in an Annual Report on Form 10-K, a Quarterly Report on Form
10-Q, a Current Report on Form 8-K, a quarterly earnings report, a press release
or other public issuance that includes combined sales and income of the Company
and Veeco. Veeco agrees to notify the undersigned Stockholder

<PAGE>

promptly upon making such filing or publication. The undersigned Stockholder
will not, during the thirty (30) day period prior to the Effective Time of the
Merger, sell, exchange, transfer, pledge, dispose of or otherwise reduce the
undersigned Stockholder's risk relative to the Veeco Shares or any part thereof
(including any disposition within such period of the undersigned Stockholder's
shares of Company Common Stock (as defined in the Merger Agreement)). Except as
otherwise set forth in APPENDIX A hereto, the undersigned Stockholder has not
engaged in a sale or other disposition of any shares of Company Common Stock
since January 31, 2000.

                  (c) The undersigned Stockholder undertakes and agrees to
indemnify and hold harmless Veeco, Acquisition, the Company and each of their
respective current and future officers and directors and each person, if any,
who now or hereafter controls or may control Veeco, Acquisition or the Company
within the meaning of the Securities Act (an "INDEMNIFIED PERSON"), from and
against any and all claims, demands, actions, causes of action, losses, costs,
damages, liabilities and expenses ("CLAIMS") based upon, arising out of or
resulting from any breach or nonfulfillment of any undertaking, covenant or
agreement made by the undersigned Stockholder in subsection (b) of this Section
1, or caused by or attributable to the undersigned Stockholder, or the
undersigned Stockholder's agents or employees, or representatives, brokers,
dealers and/or underwriters insofar as they are acting on behalf of and in
accordance with the instruction of or with the knowledge of the undersigned
Stockholder, in connection with or relating to any offer, sale, pledge, transfer
or other disposition of any of the Veeco Shares or shares of Company Common
Stock by or on behalf of the undersigned Stockholder, which Claim or Claims
result from any breach or nonfulfillment as set forth above. The indemnification
set forth herein shall be in addition to any liability that the undersigned
Stockholder may otherwise have to the Indemnified Persons.

                  (d) Promptly after receiving definitive notice of any Claim in
respect of which an Indemnified Person may seek indemnification under this
Affiliates Agreement, such Indemnified Person shall submit notice thereof to the
undersigned Stockholder. The omission by the Indemnified Person so to notify the
undersigned Stockholder of any such Claim shall not relieve the undersigned
Stockholder from any liability the undersigned Stockholder may have hereunder
except to the extent that (i) such liability was caused or increased by such
omission, or (ii) the ability of the undersigned Stockholder to reduce or defend
against such liability was actually adversely affected by such omission. The
omission of the Indemnified Person so to notify the undersigned Stockholder of
any such Claim shall not relieve the undersigned Stockholder from any liability
the undersigned Stockholder may have otherwise than hereunder. The Indemnified
Persons and the undersigned Stockholder shall cooperate with and assist one
another in the defense of any Claim and any action, suit or proceeding arising
in connection therewith.

         2. WAIVER. No waiver by any party hereto of any condition or of any
breach of any provision of this Affiliates Agreement shall be effective unless
in writing.

          3. NOTICES. All notices, requests, demands or other communications
that are required

                                        2
<PAGE>

or may be given pursuant to the terms of this Affiliates Agreement shall be in
writing and shall be deemed to have been duly given if delivered by hand or
mailed by registered or certified mail, postage prepaid, as follows:

                  (a) If to the Stockholder, at the address set forth below the
Stockholder's signature at the end hereof.

                  (b) If to Veeco, the Company or the other Indemnified Persons:

                           c/o Veeco Inc.
                           Terminal Drive
                           Plainview, New York  11803
                           Attention:  Chairman, President and Chief Executive
                                       Officer
                           Fax:  (516) 349-9079
                           Tel:  (516) 349-8300

                           with a copy (which shall not constitute notice) to:

                           Kaye, Scholer, Fierman, Hays & Handler, LLP
                           425 Park Avenue
                           New York, New York  10022
                           Attention:  Rory A. Greiss, Esq.
                           Fax:  (212) 836-7152
                           Tel:  (212) 836-8261

or to such other address as any party hereto or any Indemnified Person may
designate for itself by notice given as herein provided.

         4. COUNTERPARTS. For the convenience of the parties hereto, this
Affiliates Agreement may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same document.

         5. SUCCESSORS AND ASSIGNS. This Affiliates Agreement shall be
enforceable by, and shall inure to the benefit of and be binding upon, the
parties hereto and their respective successors and assigns. Moreover, this
Affiliates Agreement shall be enforceable by, and shall inure to the benefit of,
the Indemnified Persons and their respective successor and assigns. As used
herein, the term "successors and assigns" shall mean, where the context so
permits, heirs, executors, administrators, trustees and successor trustees, and
personal and other representatives.

         6. GOVERNING LAW. This Affiliates Agreement shall be governed by and
construed, interpreted and enforced in accordance with the internal laws of the
State of New York.

         7. TERMINATION; SEVERABILITY. This Affiliates Agreement shall terminate
in the event that the Merger Agreement is terminated in accordance with its
terms. If a court of competent

                                        3

<PAGE>

jurisdiction determines that any provision of this Affiliates Agreement is
unenforceable or enforceable only if limited in time and/or scope, this
Affiliates Agreement shall continue in full force and effect with such provision
stricken or so limited.

         8. EFFECT OF HEADINGS. The section headings herein are for convenience
only and shall not affect the construction or interpretation of this Company
Affiliates Agreement.

                                        4

<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Company Affiliates
Agreement to be executed as of the date first above written.

VEECO INC.                                     STOCKHOLDER

By:---------------------------------------     --------------------------------
Name:  Gregory A. Robbins                      (Signature)
Title:  Vice President and General Counsel

                                               ---------------------------------
                                               (Print Name)

                                               ---------------------------------
                                               (Print Address)

                                               ---------------------------------
                                               (Print Telephone Number)

                                        5

<PAGE>

                   APPENDIX A TO COMPANY AFFILIATES AGREEMENT

                                        6

<PAGE>

                                                                       EXHIBIT F

                                      VEECO

                              AFFILIATES AGREEMENT

         This VEECO AFFILIATES AGREEMENT (this "AFFILIATES AGREEMENT") is
entered into as of ___________ ___, 2000, between Veeco Inc., a Delaware
corporation ("VEECO"), and the undersigned (the "STOCKHOLDER"), who is a
director, officer or holder of shares of common stock, $.01 par value per share
(the "VEECO SHARES"), of Veeco.

                                    RECITALS

         A. Veeco, Veeco Acquisition Corp., a newly-formed subsidiary of Veeco
("ACQUISITION"), and CVC, Inc., a Delaware corporation ("TARGET"), plan to enter
into or have entered into an Agreement and Plan of Merger (the "MERGER
AGREEMENT"), pursuant to which Acquisition will be merged with and into Target
(the "MERGER").

         B. The parties to the Merger Agreement intend to cause the Merger to be
accounted for as a "pooling of interests" pursuant to APB Opinion No. 16,
Accounting Series Releases No.130, 135 and 146 and Staff Accounting Bulletins
Topic Two.

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements, provisions and covenants set forth in the Merger Agreement and in
this Veeco Affiliates Agreement, it is hereby agreed as follows:

         1.       The undersigned Stockholder hereby agrees that:

                  (a) The undersigned Stockholder may be deemed to be (but does
not hereby admit to be) an "affiliate" of Veeco within the meaning of Rule 144
under the Securities Act of 1933, as amended (the "SECURITIES ACT"), and
Accounting Series Release No. 130, as amended ("RELEASE NO. 130"), of the
Securities and Exchange Commission (the "SEC").

                  (b) The undersigned Stockholder will not sell, exchange,
transfer, pledge, dispose of or otherwise reduce the undersigned Stockholder's
risk relative to the Veeco Shares or any part thereof until such time after the
Effective Time (as such term is defined in the Merger Agreement) of the Merger
as financial results covering at least thirty (30) days of the combined
operations of Veeco and Target after the Effective Time of the Merger have been,
within the meaning of said Release No. 130, filed by Veeco with the SEC or
published by Veeco in an Annual Report on Form 10-K, a Quarterly Report on Form
10-Q, a Current Report on Form 8-K, a quarterly earnings report, a press release
or other public issuance that includes combined sales and income of Target and
Veeco. Veeco agrees to notify the undersigned Stockholder promptly upon making
such filing or publication. The undersigned Stockholder will not, during the
thirty (30) day period prior to the Effective Time of the Merger, sell,
exchange, transfer, pledge, dispose of or otherwise reduce the undersigned
Stockholder's risk relative to the Veeco Shares or any part thereof. Except as
otherwise set forth in APPENDIX A hereto, the undersigned

<PAGE>

Stockholder has not engaged in a sale or other disposition of any Veeco Shares
since January 31, 2000.

                  (c) The undersigned Stockholder undertakes and agrees to
indemnify and hold harmless Veeco, Acquisition, Target and each of their
respective current and future officers and directors and each person, if any,
who now or hereafter controls or may control Veeco , Acquisition or Target
within the meaning of the Securities Act (an "INDEMNIFIED PERSON") from and
against any and all claims, demands, actions, causes of action, losses, costs,
damages, liabilities and expenses ("CLAIMS") based upon, arising out of or
resulting from any breach or nonfulfillment of any undertaking, covenant or
agreement made by the undersigned Stockholder in subsection (b) of this Section
1, or caused by or attributable to the undersigned Stockholder, or the
undersigned Stockholder's agents or employees, or representatives, brokers,
dealers and/or underwriters insofar as they are acting on behalf of and in
accordance with the instruction of or with the knowledge of the undersigned
Stockholder, in connection with or relating to any offer, sale, pledge, transfer
or other disposition of any of the Veeco Shares by or on behalf of the
undersigned Stockholder, which claim or claims result from any breach or
nonfulfillment as set forth above. The indemnification set forth herein shall be
in addition to any liability that the undersigned Stockholder may otherwise have
to the Indemnified Persons.

                  (d) Promptly after receiving definitive notice of any Claim in
respect of which an Indemnified Person may seek indemnification under this
Affiliates Agreement, such Indemnified Person shall submit notice thereof to the
undersigned Stockholder. The omission by the Indemnified Person so to notify the
undersigned Stockholder of any such Claim shall not relieve the undersigned
Stockholder from any liability the undersigned Stockholder may have hereunder
except to the extent that (i) such liability was caused or increased by such
omission, or (ii) the ability of the undersigned Stockholder to reduce or defend
against such liability was actually adversely affected by such omission. The
omission of the Indemnified Person so to notify the undersigned Stockholder of
any such Claim shall not relieve the undersigned Stockholder from any liability
the undersigned Stockholder may have otherwise than hereunder. The Indemnified
Persons and the undersigned Stockholder shall cooperate with and assist one
another in the defense of any Claim and any action, suit or proceeding arising
in connection therewith.

         2. WAIVER. No waiver by any party hereto of any condition or of any
breach of any provision of this Affiliates Agreement shall be effective unless
in writing.

         3. NOTICES. All notices, requests, demands or other communications that
are required or may be given pursuant to the terms of this Affiliates Agreement
shall be in writing and shall be deemed to have been duly given if delivered by
hand or mailed by registered or certified mail, postage prepaid, as follows:

                  (a) If to the Stockholder, at the address set forth below the
Stockholder's signature at the end hereof.

                                        2

<PAGE>

                  (b) If to Veeco, Target or the other Indemnified Persons:

                           c/o Veeco Inc.
                           Terminal Drive
                           Plainview, New York  11803
                           Attention:  Chairman, President and Chief Executive
                                       Officer
                           Fax:  (516) 349-9079
                           Tel:  (516) 349-8300

                           with a copy (which shall not constitute notice) to:

                           Kaye, Scholer, Fierman, Hays & Handler, LLP
                           425 Park Avenue
                           New York, New York  10022
                           Attention:  Rory A. Greiss, Esq.
                           Fax:  (212) 836-7152
                           Tel:  (212) 836-8261

or to such other address as any party hereto or any Indemnified Person may
designate for itself by notice given as herein provided.

         4. COUNTERPARTS. For the convenience of the parties hereto, this
Affiliates Agreement may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same document.

         5. SUCCESSORS AND ASSIGNS. This Affiliates Agreement shall be
enforceable by, and shall inure to the benefit of and be binding upon, the
parties hereto and their respective successors and assigns. Moreover, this
Affiliates Agreement shall be enforceable by, and shall inure to the benefit of,
the Indemnified Persons and their respective successor and assigns. As used
herein, the term "successors and assigns" shall mean, where the context so
permits, heirs, executors, administrators, trustees and successor trustees, and
personal and other representatives.

         6. GOVERNING LAW. This Affiliates Agreement shall be governed by and
construed, interpreted and enforced in accordance with the internal laws of the
State of New York.

         7. TERMINATION; SEVERABILITY. This Affiliates Agreement shall terminate
in the event that the Merger Agreement is terminated in accordance with its
terms. If a court of competent jurisdiction determines that any provision of
this Affiliates Agreement is unenforceable or enforceable only if limited in
time and/or scope, this Affiliates Agreement shall continue in full force and
effect with such provision stricken or so limited.

         8. EFFECT OF HEADINGS. The section headings herein are for convenience
only and shall not affect the construction or interpretation of this Affiliates
Agreement.

                                        3

<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Veeco Affiliates
Agreement to be executed as of the date first above written.

VEECO INC.                                     STOCKHOLDER

By:---------------------------------------     ---------------------------------
Name:  Gregory A. Robbins                      (Signature)
Title:  Vice President and General Counsel

                                               ---------------------------------
                                               (Print Name)

                                               ---------------------------------
                                               (Print Address)

                                               ---------------------------------
                                               (Print Telephone Number)

                                        4

<PAGE>

                    APPENDIX A TO VEECO AFFILIATES AGREEMENT

                                        5

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