Document:

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                                                                Exhibit 10.21(c)

                     THIRD AMENDMENT DATED NOVEMBER 30, 1999
                            to the Agreement between
                      Abbott Laboratories and SpectRx, Inc.
                             Dated October 10, 1996
                 As amended December 22, 1997 and March 31, 1998

         THIS THIRD AMENDMENT dated November 30, 1999 ("Third Amendment
Effective Date"), by and between Abbott Laboratories, an Illinois corporation
with principal offices at 100 Abbott Park Road, Abbott Park, Illinois 60064-3500
and its Affiliates ("ABBOTT") and SpectRx, Inc. a Delaware corporation with
principal offices at 6025A Unity Drive, Norcross, Georgia 30071 and its
Affiliates ("SPECTRX").

         WHEREAS, ABBOTT and SPECTRX have previously entered into an agreement
dated October 10, 1996, as amended December 22, 1997 and March 31, 1998,
relating to the use of (*) for the extraction of interstitial fluid samples for
diagnostic applications, including glucose monitoring ("Agreement");

         WHEREAS, ABBOTT and SPECTRX desire to now modify that Agreement and to
that end desire to enter into this Third Amendment;

         NOW, THEREFORE, in consideration of the premises and the mutual
promises and covenants set forth below, ABBOTT and SPECTRX mutually agree as
follows:

1.       INTRODUCTION

         1.1 Conflict with Agreement. The provisions of this Third Amendment are
hereby made a part of the Agreement. All capitalized terms used in this Third
Amendment, and not defined herein, shall have the same meanings as given to them
in the Agreement. Any conflict between the provisions of this Third Amendment
and the Agreement shall be resolved in favor of this Third Amendment; provided,
however, that all definitions in this Third Amendment shall only apply
prospectively from the Third Amendment Effective Date, unless otherwise noted in
this Third Amendment, and such application will be without prejudice to
interpretation of the Agreement as it was in effect prior to the Third Amendment
Effective Date.

         1.2 Modified Provisions. The following modifications are hereby made to
the Agreement:

             (A)      The following shall be added to the end of Section
                      1.8 and shall be effective as of June 1, 1998:

                           "(*)     Technology includes, but is not limited to,
                                    the means to measure the (*). (*) Technology
                                    does not include (*) Technology."

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

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             (B) Section 1.12 is modified as follows:

                           "(*)"    or "(*)" means a single or multiple use
                                    device other than a (*), or the equivalent
                                    to a (*) for the Non-Continuous Product,
                                    sold or marketed with labeling or
                                    instructions identifying it for use with
                                    Product, which effectuates or facilitates
                                    any measurement of glucose or is involved
                                    with (*)Technology for such Product
                                    including, but not limited to, (*).

             (C)      Section 1.20 shall be amended as follows and shall be
                      effective as of the Effective Date of the Agreement:

                                    replace "that cover inventions useful within
                                    the Field" with "that (1) cover (*)
                                    Technology for glucose monitoring and/or (2)
                                    cover inventions useful within the Field"

             (D)      The following shall be added to the end of
                      Section 1.20(A):

                                    "and any patents or patent applications
                                    covering inventions within the Field arising
                                    out of SPECTRX Continuous Product Research
                                    Program Technology as set forth in Section
                                    11.1(A) and 11.1(B)(1) of the Third
                                    Amendment, and the Joint Continuous Product
                                    Research Program Technology as set forth in
                                    Section 11.3 of the Third Amendment;"

             (E)      The following shall be added to the end of Section 1.21:

                                    "provided, however, that a (*) will not be
                                    included in Licensed Product if SPECTRX or a
                                    Third Party is marketing (other than
                                    exclusively to ABBOTT) (*), except for an
                                    item that is a Directly Competitive
                                    Product."

             (F)      Section 1.26 shall be amended as follows:

                      (1)           replace "but for the licenses granted under
                                    Section 4.1 of this Agreement" with "but for
                                    the licenses granted under Section 4.1 of
                                    this Agreement, as to ABBOTT, or the license
                                    granted under Section 4.2 of the Third
                                    Amendment, as to SPECTRX,"

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

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                      (2)      add to the end of Section 1.26 ", as to
                               ABBOTT, or as to which SPECTRX is otherwise
                               required to pay royalties hereunder as to
                               SPECTRX."

                  (G) Section 1.29 is modified to delete the words "as described
                      in Appendix 1.28."

                  (H) The following shall be added to the end of Section 1.30
                      and shall be effective as of June 1, 1998:

                               "including, but not limited to, (*). Such
                               site includes, but is not limited to, a site
                               at which (*). (*) includes, but is not
                               limited to, devices which incorporate (*)
                               does not include (*) Technology."

                  (I) Section 3.1(A) shall be amended as follows:

                               replace "set forth in Section 2.5" with "set
                               forth in Section 3.4 of the Third
                               Amendment"

                  (J) Section 3.1(B) shall be amended as follows:

                       (1)     replace "shall extend the periods of the
                               time set forth in Section 3.2 of this
                               Agreement" with "shall extend the periods of
                               time set forth in Section 3.7 of the Third
                               Amendment"

                       (2)     replace "extend the time periods set forth
                               in Section 3.2(A) and (B)" with "extend the
                               time periods set forth in Section 3.7 of the
                               Third Amendment"

                  (K) The following shall be added at the beginning of
                      Section 3.4:

                               "Except for those (*) in accordance with
                               Section 5.2 of the Third Amendment and the
                               SPECTRX Continuous Product as allowed in
                               Article 4 of the Third Amendment,"

                   (L) The following shall be added to the end of Section
                       6.2(A):

                               "; except for Abbott Research Program
                               Technology invented on or after August 29,
                               1998, which, to the extent applicable to the
                               Field, shall be treated in the same manner
                               that Development Program Technology would be
                               treated in Section 7.1 of the Agreement
                               after delivery of the Development Program
                               Notification but prior to the First Shipment
                               Date."

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

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                  (M)      Section 6.2(C) shall be amended as follows:

                                    replace "pursuant to Section 2.5(A) (subject
                                    to the exception in that Section) or 2.5(B)
                                    or Section 10.2(A)(i) or by SPECTRX pursuant
                                    to Section 3.2(A) or (B) subject to certain
                                    exceptions set forth in those Sections) or
                                    pursuant to Section 10.2(D) prior to the
                                    First Shipment Date:" with "pursuant to
                                    Section 3.8(A) of the Third Amendment or
                                    Section 10.2(A)(i) or by SPECTRX pursuant to
                                    Sections 3.7(D) or (F) of the Third
                                    Amendment (subject to certain exceptions set
                                    forth in those Sections) or pursuant to
                                    Section 10.2(D) prior to the First Shipment
                                    Date:"

                  (N)      Sections 8.1(A), 8.1(B), and 8.3(A) shall be amended
                           as follows:

                                    replace "SPECTRX Research Program
                                    Technology" with "SPECTRX Research Program
                                    Technology and SPECTRX Continuous Product
                                    Research Program Technology"

                  (O)      Sections 8.2, 8.3(B) and 8.5(B) shall be amended as
                           follows:

                                    replace "Joint Research Program Technology"
                                    with "Joint Research Program Technology and
                                    Joint Continuous Product Research Program
                                    Technology"

                  (P)      Section 10.1 shall be amended as follows:

                                    replace "pursuant to Sections 2.2, 2.5, 3.2,
                                    4.2(D) or (E) (on a country by country
                                    basis), 10.2 or 14.1," with "pursuant to
                                    Sections 4.2 (D) or (E) (on a country by
                                    country basis), 10.2 or 14.1 of the
                                    Agreement or Sections 3.7 or 3.8 of the
                                    Third Amendment"

                  (Q)      Section 10.2 shall be amended as follows:

                                    replace "In addition to Sections 2.2, 2.5,
                                    and 4.2(D) and (E) (on a country by country
                                    basis), 3.2 and 14.1," with "In addition to
                                    Sections 4.2(D) and (E) (on a country by
                                    country basis) and 14.1 of the Agreement and
                                    Sections 3.7 and 3.8 of the Third
                                    Amendment,"

                  (R)      Section 10.2(D)(iv) shall be amended as follows:

                                    replace "except as provided in Sections 2.2,
                                    2.5, 3.2, 4.2(D) and (E) (on a country by
                                    country basis), 10.2(A),(B) and (C) and
                                    14.1," with "except as provided in Sections
                                    4.2(D) and (E) (on a country by country
                                    basis), 10.2(A), (B) and (C) and 14.1 of the
                                    Agreement and Section 3.7 and 3.8 of the
                                    Third Amendment,"

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                  (S)      Section 10.3(A) shall be amended as follows:

                                    replace "under Sections 2.2, 2.5, 3.2,
                                    4.2(D) and (E) (on a country by country
                                    basis), 10.2 and 14.1:" with "under Sections
                                    4.2(D) and (E) (on a country by country
                                    basis), 10.2 and 14.1 of the Agreement and
                                    Sections 3.7 and 3.8 of the Third
                                    Amendment:"

                  (T)      Section 10.3(B) shall be amended as follows:

                                    replace "under Sections 2.2, 2.5, 3.2,
                                    4.2(D) and (E) (on a country by country
                                    basis), 10.2 and 14.1," with "under Sections
                                    4.2(D) and (E) (on a country by country
                                    basis), 10.2 and 14.1 of the Agreement and
                                    Sections 3.7 and 3.8 of the Third
                                    Amendment,"

                  (U)      Section 10.3(C) shall be amended as follows:

                                    replace "under Section 2.2, by ABBOTT under
                                    Sections 2.5, 4.2(D) and (E) (on a country
                                    by country basis), 10.2(A), (C) and (D); or
                                    by SPECTRX under Sections 3.2(A) or (B) and
                                    10.2(B) and (D) or by either party under
                                    Section 14.1." with "by ABBOTT under
                                    Sections 4.2(D) and (E) (on a country by
                                    country basis), 10.2(A), (C) and (D); or by
                                    SPECTRX under Section 3.7(F) of the Third
                                    Amendment and 10.2(B) and (D) or by either
                                    party under Section 14.1 and Section 3.8 of
                                    the Third Amendment."

                  (V)      Section 10.3(D) shall be amended as follows:

                                    replace "under Section 2.5(A) (subject to
                                    the exception in that Section) or (B) or
                                    10.2(A)(i) or if SPECTRX terminates this
                                    Agreement under Section 3.2(A) or (B) (in
                                    accordance with the terms of Section 3.2(A)
                                    or (B))" with "under Section 10.2(A)(i) or
                                    if SPECTRX terminates this Agreement under
                                    Section 3.7(F) of the Third Amendment (in
                                    accordance with the terms of Section 3.7) or
                                    under Section 3.8(A) of the Third Amendment
                                    or under Section 10.2(D) prior to the First
                                    Shipment Date."

                  (W)      Section 10.3(E) shall be amended as follows:

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                                    replace "under Section 2.5(B) or 10.2(A)(i)
                                    or if SPECTRX terminates this Agreement
                                    under Section 3.2(A) or (B) or under Section
                                    10.2(D) prior to the First Shipment Date"
                                    with "under Section 3.8(A) of the Third
                                    Amendment or Section 10.2(A)(i) or if
                                    SPECTRX terminates this Agreement under
                                    Section 3.7(F) of the Third Amendment or
                                    under Section 10.2(D) prior to the First
                                    Shipment Date."

                  (X)      The following shall be added to Section 10.3:

                                    "(I) SPECTRX shall be entitled to the
                                    license set forth in Section 6.1(A)(2) of
                                    the Third Amendment upon early termination
                                    or expiration of the Agreement other than
                                    for breach by SPECTRX."

                  (Y)      The second sentence in Section 13.1 shall be amended
                           as follows:

                                    "Neither party will use Confidential
                                    Information of the other party, nor allow it
                                    to be used for its own benefit or the
                                    benefit of others, except as provided by
                                    this Agreement and will exercise due care to
                                    prevent the disclosure of Confidential
                                    Information of the other party.

                  (Z)      Section 13.3 shall be amended as follows:

                                    Replace "Research Program" with "Research
                                    Program or Continuous Product Research
                                    Program"

         1.3 Deleted Agreement Provisions. The following provisions are deleted
from the Agreement and will have no further force or effect:

                  (A)      Section 1.5
                  (B)      Section 1.10
                  (C)      Section 1.28
                  (D)      Article 2
                  (E)      Section 3.2
                  (F)      Section 4.2 (B)
                  (G)      Section 4.3
                  (H)      Section 10.3(G)
                  (I)      Appendices 2.3 and 2.4

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1.4         Added Appendices.  The following Appendices are added to the
                             Agreement:

(A)      Appendix 2.7  -  Continuous Product Research Program Specifications
(B)      Appendix 4.2  -  (*)
(C)      Appendix 4.4  -  SPECTRX Continuous Product Royalty Rate
(D)      Appendix 5.1  -  Common Stock Agreement
(E)      Appendix 5.2  -  Supply Agreement
(F)      Appendix 5.5  -  Preferred Stock Agreement

2.       DEFINITIONS

         2.1 "ABBOTT Continuous Product Research Program Technology" has the
meaning attributed to it in Section 11.2.

         2.2 "Abbott Post-Transfer Technology" has the meaning attributed to it
in Section 11.2(E).

         2.3 "Abbott (*) Technology" means technology (1) which was Derived from
SPECTRX (*) Technology or SPECTRX (*) and (2) such derivation occurs on or
between July 28, 1999, and the earlier of (a) the delivery of a Development
Program Notification by ABBOTT to SPECTRX or (b) the transfer of the Continuous
Product Research Program to ABBOTT as set forth in Section 3.3(B) or (c) the
termination of ABBOTT's rights to all Continuous Products.

         2.4 "CDA" means the confidential disclosure agreements entered into by
ABBOTT and SPECTRX dated December 15, 1995 and July 28, 1999 to the extent of
Confidential Information disclosed after the Third Amendment Effective Date. The
confidential disclosure agreements dated March 4, 1996, May 31, 1996, and July
28, 1999 (to the extent of Confidential Information disclosed between July 28,
1999 and the Third Amendment Effective Date), are not included as CDAs for
purposes of this Agreement and shall remain in full force and effect in
accordance with their respective terms.

         2.5 "Continuous Product" means a Product, consisting of one or more
components, with at least one component continuously attached to or worn by a
subject, during the device's period of use, whereby one of the continuously
attached components provides a means to take more than one measurement of an
Analyte in the subject's interstitial fluid without removal of said component
during its period of use.

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

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         2.6 "Continuous Product Research Program" means the research carried
out by SPECTRX or ABBOTT (including the case in which the Continuous Product
Research Program is transferred to ABBOTT pursuant to Section 3.3(B)), to
determine the feasibility of a Continuous Product, including, but not limited
to, potential development activities related to a (*), which program shall
commence on (*) and shall end on the earlier of (1) the date of ABBOTT's
Development Program Notification to SPECTRX in accordance with Section 3.4 of
the Third Amendment, or (2) the date of termination of ABBOTT'S rights to all
Continuous Products. Continuous Product Research Program also includes
activities separately funded by SPECTRX between and including (*), which were
directly related to research for a Continuous Product.

         2. 7 "Continuous Product Research Program Specifications" means
specifications for a Continuous Product listed as "Product Specs. Minimum
Acceptable" in Appendix 2.7, definitions and protocols applicable to demonstrate
the achievement of the specifications also listed in Appendix 2.7, and the
deliverables listed in Appendix 2.7. Such specifications may be amended by
written agreement of the parties.

         2.8 "Continuous Product Research Program Technology" means all
inventions, developments, know-how, or discoveries, whether or not patentable,
which are conceived and/or reduced to practice during the course of the work
under the Continuous Product Research Program.

         2.9 "Derived" means technology whose conception, development and/or
reduction to practice by one party is based, in whole or in part, upon the
Confidential Information of the other party including, but not limited to, the
Information (as that term is defined in the CDA dated July 28, 1999) disclosed
as of the Third Amendment Effective Date, which Information is subject to such
CDA.

         2.10 "Development Program" means that work to be carried out by ABBOTT
(whether at ABBOTT or at SPECTRX, or both as set forth in Section 3.5(A) or
3.6(A) of the Third Amendment) specifically to develop the first Continuous
Product and the first Non-Continuous Product which is actually commercialized,
which program shall commence upon the date of ABBOTT's Development Program
Notification to SPECTRX in accordance with Section 3.5 and/or Section 3.7 of the
Third Amendment, as the case may be, and, for the Continuous Product, shall end
on the First Shipment Date of the Continuous Product being developed and ,for
the Non-Continuous Product, on the First Shipment Date of the Non-Continuous
Product being developed.

         2.11 "Development Program Notification" means a written notification by
ABBOTT to SPECTRX that ABBOTT has determined to commence a Development Program.

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

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         2.12 "Diligent," "Diligently" and "Diligence" means the degree of
effort employed by a party hereto consistent with the exercise of good business
judgment, which with respect to Continuous Product Research Program, Research
Program, Development Programs and commercialization of Licensed Products, shall
not be less than the degree of effort accorded projects or products of similar
commercial value which result from the party's own research and/or development
and commercialization activities, nor less than customary in current industry
practice for projects or products of similar commercial value (unless otherwise
specifically agreed to in writing by the parties). If a minimum spending level
is specified, such minimum will be the maximum spending level needed to meet the
financial component of any Diligence.

         2.13 "(*) Technology" means that technology which effectuates or
facilitates accessing and/or extraction of interstitial fluid (*), including,
but not limited to (*), use of (*) into and/or out of the (*). This definition
shall be effective as of the Effective Date of the Agreement.

         2.14 "Joint Continuous Product Research Program Technology" has the
meaning attributed to it in Section 11.3.

         2.15 "Manufacturing Costs" means direct labor, direct materials and
allocated manufacturing overhead, used in the manufacture of the Product, such
calculation being based on generally accepted accounting principles.

         2.16 (*) means an (*) of a Continuous Product including, but not
limited to, (*), which Product is (*), or the (*), or the (*), the component not
being a (*) or a (*) or a (*)

         2.17 "Milestones" means those milestones set forth in Section 5.1.

         2.18 "Non-Continuous Product" means any Product which is not a
Continuous Product.

         2.19 "Non-Invasive Electromagnetic Radiation Technology" means
technology using electromagnetic radiation to measure the properties of a
biological substance or condition inside or outside the body without the
addition of reagents.

         2.20 "(*) Milestone" means the milestone set forth in Section
5.1(A)(2).

         2.21 "Research Oversight Committee" has the meaning set forth in
Section 3.2.

         2.22 "Research Program" means the research carried out jointly from the
Effective Date of the Agreement to and including (*) under former Article 2 of
the Agreement and the research carried out (*) at ABBOTT and to be carried out
by ABBOTT under the provisions of this Third Amendment to determine the
feasibility of a

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

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Non-Continuous Product. The Research Program shall end on the earlier of (1) the
date of ABBOTT's Development Program Notification to SPECTRX in accordance with
Section 3.6 of the Third Amendment, or (2) the date of termination of ABBOTT's
rights to all Non-Continuous Product. All Diligence obligations under the
Research Program shall only be those performance obligations set forth in
Sections 3.6(B) and 3.7(F) of the Third Amendment.

         2.23 "SPECTRX Continuous Product" means the Continuous Product
developed by SPECTRX for SPECTRX as set forth in Article 4 of this Third
Amendment.

         2.24 "SPECTRX Continuous Product Research Program Technology" has the
meaning attributed to it in Section 11.1.

         2.25 "Supply Agreement" has the meaning attributed to it in Section
5.2.

         2.26 "Transfer Price" means the agreed upon purchase price of any (*)
supplied by SPECTRX under agreement with ABBOTT.

3.       RESEARCH AND DEVELOPMENT

         3.1 Continuous Product Research Program. The Continuous Product
Research Program for ABBOTT primarily will be conducted by SPECTRX at its
facility in Norcross, Georgia. SPECTRX will have control over the Continuous
Product Research Program provided that SPECTRX is working toward achieving the
Continuous Product Research Program Specifications, unless it is transferred to
ABBOTT pursuant to Section 3.3(B), in which case ABBOTT will have control. All
deviations from or modifications to the Continuous Product Research Program
Specifications will be in writing and signed by both parties. SPECTRX shall
Diligently undertake, pursue and support those activities under the Continuous
Product Research Program required to achieve the Continuous Product Research
Program Specifications. For avoidance of doubt, non-achievement of the
Continuous Product Research Program Specifications does not necessarily mean
lack of Diligence on the part of either party. ABBOTT shall Diligently
undertake, pursue, and support those research activities to which the parties
have mutually agreed in writing shall be carried out by ABBOTT as part of the
Continuous Product Research Program, including a specific reference to what
performance requirements constitutes Diligence with regard to such activities.
However, notwithstanding such research activities by ABBOTT, other than ABBOTT's
obligation of Diligence in the preceding sentence, ABBOTT shall have no
responsibility for achievement of, nor any liability for failure to achieve, the
Continuous Product Research Program Specifications, no matter what is the reason
for such failure. Further, after ABBOTT delivers a Development Program
Notification for the first Continuous Product under this Agreement, neither
ABBOTT nor SPECTRX shall have

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

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further obligations with regard to any research activities or Diligence
obligations with regard to any other Continuous Product that ABBOTT may
determine to develop or any improvements to any Continuous Product that ABBOTT
may make. Diligence requirements for development of the first Continuous Product
which is actually commercialized remain in accordance with Section 3.4 of the
Third Amendment . If SPECTRX and ABBOTT determine that certain activities have
the potential for intellectual property disputes then the parties will negotiate
an agreement to cover such specific activities including relevant intellectual
property issues before commencing such activities where possible.

         3.2 Research Oversight Committee. Within thirty (30) days of the Third
Amendment Effective Date, ABBOTT and SPECTRX will appoint members to a committee
to review the work under the Continuous Product Research Program ("Research
Oversight Committee"). The parties will define the number of members, duties and
frequency of meetings (which shall not be less than every two (2) months) within
thirty (30) days of the Third Amendment Effective Date. Notwithstanding the
foregoing, upon thirty (30) days prior notice by ABBOTT, SPECTRX will disclose
such data and other information related to the Continuous Product Research
Program as reasonably requested by ABBOTT. Prior to each Research Oversight
Committee meeting, ABBOTT and SPECTRX shall each provide to the other a written
report of its respective activities under the Continuous Product Research
Program, including relevant data, a description of progress made, and a
discussion of any plan variances or problems encountered.

         3.3 Completion, Termination or Transfer of the Continuous Product
Research Program.

                  (A)      ABBOTT will have no obligation to pay any wind-down
                           or other expenses of SPECTRX if the Continuous
                           Product Research Program is successfully completed,
                           terminated or transferred under this provision or any
                           other provision of the Third Amendment or the
                           Agreement; provided, however, that SPECTRX may
                           utilize the funds from ABBOTT's purchase of preferred
                           stock as set forth in Section 5.5 of this Third
                           Amendment for such expenses.

                  (B)      ABBOTT may, in its sole discretion, after (*), elect
                           to transfer the Continuous Product Research Program
                           to ABBOTT and/or redefine the Continuous Product
                           Research Program Specifications and to cease funding
                           such Continuous Product Research Program as conducted
                           by SPECTRX if SPECTRX has not achieved the (*)
                           Milestone by such date. If ABBOTT makes such
                           election, ABBOTT will give SPECTRX forty-five (45)
                           days prior written notice of such election. For
                           clarification, but not limitation, ABBOTT may give

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission.Omitted
         portions have been filed separately with the Commission.

                                       11
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                           such notice any time after (*). At the end of the
                           forty-five (45) day notice period if ABBOTT transfers
                           the Continuous Product Research Program to ABBOTT,
                           ABBOTT will Diligently undertake the research
                           activities in an attempt to achieve acceptable
                           performance to meet the Continuous Product Research
                           Program Specifications and expenditures for that
                           purpose shall be in accordance with Section
                           3.4(A)(2). If ABBOTT notifies SPECTRX of its interest
                           to transfer the Continuous Product Research Program,
                           SPECTRX will promptly, after such notice, (i)
                           transfer to ABBOTT all information, all data and half
                           of the (*) Products related to the Continuous Product
                           Research Program as conducted by SPECTRX; (ii)
                           provide shared access to all materials, hardware,
                           software and pilot manufacturing lines related to the
                           Continuous Product Research Program as conducted by
                           SPECTRX for a reasonable period of time until ABBOTT
                           is able to develop or acquire its own capabilities in
                           these areas, and (iii) provide reasonable assistance
                           to ABBOTT in transferring such activities to ABBOTT,
                           and ABBOTT shall reimburse SPECTRX for its reasonable
                           direct expenses, excluding the cost of personnel time
                           required to physically transfer the Continuous
                           Product Research Program materials. If only one
                           hardware item or other item exists, ABBOTT and
                           SPECTRX will develop a plan that allows use by both
                           parties, including the sharing of any operating costs
                           of such item.

                  (C)      ABBOTT may elect to cease funding the Continuous
                           Product Research Program as either conducted by
                           SPECTRX or ABBOTT, including declining to make any
                           preferred stock purchase in accordance with Section
                           5.5.

                           (1)      If ABBOTT elects not to make such preferred
                                    stock purchase, it will give SPECTRX twenty
                                    (20) days prior written notice and the
                                    Continuous Product Research Program will
                                    terminate at the end of such twenty (20) day
                                    notice period.

                           (2)      If ABBOTT elects to cease funding the
                                    Continuous Product Research Program after it
                                    is transferred to ABBOTT, then ABBOTT will
                                    give SPECTRX ten (10) days prior written
                                    notice and the Continuous Product Research
                                    Program will terminate at the end of such
                                    ten (10) day notice period.

                           (3)      If, after (*), ABBOTT elects to cease
                                    funding the Continuous Product Research
                                    Program, after a decision by ABBOTT to
                                    maintain such program at SPECTRX as
                                    communicated in

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

                                       12
<PAGE>   13
                           writing to SPECTRX, then ABBOTT will give SPECTRX
                           thirty (30) days prior written notice and the
                           Continuous Product Research Program will terminate at
                           the end of such thirty (30) day notice period.

                  (D)      If ABBOTT does not deliver the Development Program
                           Notification to SPECTRX for a Continuous Product by
                           the end of the first notice period to come into
                           existence, if any, under Section 3.3(C)(1)-(3), then
                           ABBOTT shall have no further rights under the
                           Agreement (except any right of ABBOTT in ABBOTT
                           Research Program Technology, Derived Technology,
                           Joint Research Program Technology, ABBOTT Continuous
                           Product Research Program Technology, or Joint
                           Continuous Product Research Program Technology or any
                           right pursuant to Article 6 of this Third Amendment
                           or Section 10.3 of the Agreement) to any and all
                           Continuous Products.

         3.4      Development Program Notification.

                  (A)      At any time prior to (*), but in no event later than
                           the notice periods specified after the notice for
                           termination of the Continuous Product Research
                           Program as set forth in Section 3.3(C) or (*) after
                           the (*) Milestone has been achieved by SPECTRX,
                           ABBOTT may deliver the Development Program
                           Notification to SPECTRX if ABBOTT determines to
                           commence the Development Program for the Continuous
                           Product. Such time period for delivery by ABBOTT of
                           the Development Program Notification for the
                           Continuous Product may be extended to the earlier of
                           (*) after the (*) Milestone has been achieved or (*),
                           if the (*) Milestone for the Continuous Product has
                           not been achieved by (*); if ABBOTT provides notice
                           to SPECTRX of such extension on or before (*); and if
                           the following occur:

                           (1)      ABBOTT provides additional funding at a
                                    minimum rate of (*) per quarter and
                                    continues the Continuous Product Research
                                    Program at SPECTRX to achieve the Continuous
                                    Product Research Program Specifications or
                                    any such specifications as redefined by
                                    ABBOTT, or

                           (2)      ABBOTT transfers the Continuous Product
                                    Research Program to ABBOTT due to technical
                                    problems which SPECTRX has been unable to
                                    overcome to achieve the (*) Milestone; and
                                    if the Continuous Product Research Program

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities Exchange Commission. Omitted
         portions have been filed separately with the Commission.

                                       13
<PAGE>   14

                           is transferred to ABBOTT, ABBOTT spends at the
                           minimum rate of (*) per quarter for each quarter and
                           Diligently pursues the solution to such technical
                           problems until ABBOTT resolves the technical problems
                           to achieve the Continuous Product Research Program
                           Specifications or any such specifications as
                           redefined by ABBOTT.

                  (B)      Such time period for delivery by ABBOTT of the
                           Development Program Notification to SPECTRX may be
                           further extended to (*), if ABBOTT makes a Milestone
                           pre-payment of (*) towards the (*) Milestone payment
                           to SPECTRX any time prior to (*)and, if ABBOTT has
                           transferred the Continuous Product Research Program
                           to ABBOTT, ABBOTT continues in accordance with
                           Section 3.4(A)(2) to pursue a solution to the
                           technical problems.

                  (C)      If ABBOTT does not deliver the Development Program
                           Notification for a Continuous Product by (*), or such
                           extended time period as set forth in Section 3.4
                           (A)-(B), then all rights of ABBOTT under the
                           Agreement for all Continuous Products (except any
                           right of ABBOTT in ABBOTT Research Program
                           Technology, Derived Technology, Joint Research
                           Program Technology, ABBOTT Continuous Product
                           Research Program Technology, or Joint Continuous
                           Product Research Program Technology or any rights
                           pursuant to Article 6 of this Third Amendment or
                           Section 10.3 of the Agreement) shall immediately
                           revert to SPECTRX. SPECTRX shall promptly send a
                           notice to ABBOTT confirming such reversion of rights;
                           however, such notice will not impact whether such
                           reversion occurs.

         3.5      Development Program - Continuous Product.

                  (A)      ABBOTT shall have complete control of the Development
                           Program for the Continuous Product, including, but
                           not limited to, whether to conduct the Development
                           Program itself or to maintain a Development Program
                           for a Continuous Product at SPECTRX or at both
                           SPECTRX and ABBOTT. The cost of such Development
                           Program shall be borne by ABBOTT. Notwithstanding the
                           foregoing, it is anticipated that SPECTRX will be
                           performing development oriented activities prior to
                           ABBOTT providing Development Program Notification
                           (which activities shall have the prior approval of
                           both SPECTRX and ABBOTT) that will be funded by the
                           preferred stock purchase set forth in Section 5.5. To
                           the extent such activities require additional
                           expenditures, which

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

                                       14
<PAGE>   15

                           together with expenditures made or to be made by
                           SPECTRX for the Continuous Product Research Program,
                           are in excess of the funding by the preferred stock
                           purchase, then such additional expenditures shall be
                           separately funded by ABBOTT with prior written
                           approval of ABBOTT. If ABBOTT determines, and SPECTRX
                           agrees, to maintain a portion of the Development
                           Program at SPECTRX, such determination and agreement
                           to be made at the time of Development Program
                           Notification, then ABBOTT and SPECTRX shall establish
                           a mutually agreeable plan and budget for such
                           Development Program within ninety (90) days of the
                           date the Development Program Notification is
                           delivered to SPECTRX. Such Development Program plan
                           will require that SPECTRX at a minimum provide the
                           same resources and expertise, as it has used during
                           the Continuous Product Research Program, or their
                           equivalents as agreed to by ABBOTT and SPECTRX.
                           ABBOTT and SPECTRX shall agree on interim activities,
                           if any, and ABBOTT shall provide interim funding for
                           such activities between Development Program
                           Notification and establishment of the mutually
                           agreeable plan. If SPECTRX is concurrently pursuing
                           development of the SPECTRX Continuous Product, then
                           SPECTRX will also provide equivalent resources,
                           expertise, and priorities for the ABBOTT Continuous
                           Product Development Program. If ABBOTT believes that
                           there is a conflict of interest between the SPECTRX
                           Continuous Product development and the Continuous
                           Product Development Program that materially impacts
                           ABBOTT's Continuous Product Development Program, then
                           ABBOTT shall notify SPECTRX in writing describing the
                           specifics of the conflict of interest. Upon such
                           written notification, the parties will meet to
                           attempt to resolve any issue and SPECTRX shall have
                           thirty (30) days to correct the conflict of interest.
                           If SPECTRX does not correct such conflict of interest
                           within such thirty (30) day period, then ABBOTT (1)
                           will have no obligation to enter into a Supply
                           Agreement or may terminate an existing Supply
                           Agreement for the manufacture of (*)s by SPECTRX; (2)
                           ABBOTT may immediately cease funding SPECTRX
                           activities under the Continuous Product Development
                           Program; and (3) then SPECTRX will promptly transfer
                           to ABBOTT everything related to the Continuous
                           Product Development Program, including, but not
                           limited to, all information, data, Products,
                           materials, hardware, software, pilot manufacturing
                           lines and provide reasonable assistance in
                           transferring such activities and items to ABBOTT.
                           Such transfer shall not include information, data,
                           Products, materials, hardware, software and pilot
                           manufacturing lines that are solely part of the
                           development

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

                                       15
<PAGE>   16

                           program for the SPECTRX Continuous Product. If any of
                           these items are common between the ABBOTT program and
                           the SPECTRX program, then the parties will negotiate
                           in good faith on an approach to split or share such
                           items. For clarification, neither the fact that
                           SPECTRX is developing the SPECTRX Continuous Product,
                           nor the fact that it has entered into a Third Party
                           relationship, shall be deemed in and of itself to
                           constitute a conflict of interest for the purposes of
                           this Section 3.5(A).

                  (B)      Notwithstanding Section 3.4(A), if the (*) Milestone
                           has been achieved less than (*) before (*), and
                           ABBOTT has not delivered the Development Program
                           Notification for such Product by (*), then ABBOTT
                           shall have (*) from the date of (*) Milestone
                           achievement to deliver the Development Program
                           Notification and will be obligated to pay for any
                           Continuous Product Research Program expenses or any
                           development activities expenses for such Continuous
                           Product requested and authorized in writing by ABBOTT
                           and incurred by SPECTRX after (*) until the date of
                           Development Program Notification. In such case,
                           SPECTRX will have no obligation to continue the
                           research activities for the Continuous Product
                           Research Program after (*) unless ABBOTT and SPECTRX
                           agree to such activities commencing (*).

         3.6      Development Program - Non-Continuous Product.

                  (A)      At any time prior to (*), ABBOTT may deliver the
                           Development Program Notification to SPECTRX if ABBOTT
                           determines to commence the Development Program for
                           the Non-Continuous Product. ABBOTT shall have
                           complete control of the Development Program for the
                           Non-Continuous Product or Non- Continuous Products
                           under this Agreement. However, such control by ABBOTT
                           shall not affect the timing of Milestones or the rate
                           of royalties for such Non-Continuous Product or
                           Non-Continuous Products.

                  (B)      If ABBOTT does not Diligently pursue research
                           activities beginning (*), and spend at the minimum
                           rate of (*) per year on the Non-Continuous Product
                           research activities beginning (*) and ending upon
                           delivery of the Development Program Notice for such
                           product, or does not deliver the Development Program
                           Notification for a Non-Continuous Product by (*),
                           then all rights of ABBOTT under the Agreement for any
                           and all Non-Continuous Products (except any right of
                           ABBOTT in ABBOTT Research Program Technology, Derived
                           Technology, Joint Research Program Technology,

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

                                       16
<PAGE>   17

                           ABBOTT Continuous Product Research Program
                           Technology, or Joint Continuous Product Research
                           Program Technology, or any rights pursuant to Article
                           6 of this Third Amendment) shall immediately revert
                           to SPECTRX. SPECTRX shall promptly send a notice to
                           ABBOTT confirming such reversion of rights; however,
                           such notice will not impact whether such reversion
                           occurs.

                  (C)      If ABBOTT's rights to all Continuous Products have
                           been terminated as set forth in Section 3.4(C), or if
                           ABBOTT notifies SPECTRX that it is terminating the
                           Continuous Product Research Program or Development
                           Program, then ABBOTT must deliver the Non-Continuous
                           Product Development Program Notification to SPECTRX
                           prior to (*) from such termination date for the
                           Continuous Product rights or from notice of
                           termination of the Continuous Product Research
                           Program or Development Program or (*), whichever is
                           earlier or ABBOTT's rights to a Non-Continuous
                           Product shall terminate (except any right of ABBOTT
                           in ABBOTT Research Program Technology, Derived
                           Technology, Joint Research Program Technology, ABBOTT
                           Continuous Product Research Program Technology, or
                           Joint Continuous Product Research Program Technology,
                           or any rights pursuant to Article 6 of this Third
                           Amendment).

         3.7      ABBOTT Development Program Due Diligence.

                  (A)      For the Continuous Product and the Non-Continuous
                           Product on which ABBOTT delivers a Development
                           Program Notification to SPECTRX, ABBOTT shall
                           Diligently use its commercially reasonable efforts to
                           achieve:

                           (1)      submission of a Regulatory Filing with the
                                    FDA within (*) (if a 510K Filing submission
                                    is to be made) (*) (if a PMA submission is
                                    to be made) after delivery of such
                                    Development Program Notification for such
                                    Product;

                           (2)      the First Shipment Date for such Product
                                    within (*) after delivery of such
                                    Development Program Notification for such
                                    Product if a 510K Filing submission is to be
                                    made for such Product or within (*) if a PMA
                                    submission is to be made for such Product.

                  (B)      If the First Shipment Date has not occurred and if
                           ABBOTT has not submitted a Regulatory Filing to the
                           FDA within the period set forth in Section 3.7(A)(1)
                           above (or any extended period agreed to by the
                           parties pursuant to Section 3.1 of the Agreement) and
                           such

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

                                       17
<PAGE>   18

                           failure is not due to a lack of SPECTRX Diligence in
                           fulfilling its responsibilities, if any, under the
                           Development Program, then prior to the end of the
                           period set forth in Section 3.7(A)(1) or such
                           extended period agreed by the parties, ABBOTT may
                           extend such period by (*) by written notice of
                           extension to SPECTRX and within thirty (30) days of
                           such notice, payment to SPECTRX of (*)set forth in
                           Section 5.1(A)(4). ABBOTT further may extend such
                           period by an additional (*) if SPECTRX has commenced
                           developing its SPECTRX Continuous Product and if
                           ABBOTT is Diligently working toward a Regulatory
                           Filing to the FDA. If ABBOTT's failure under this
                           Section 3.7(B) is due to a lack of SPECTRX Diligence,
                           if any, then any such deadline will be extended to
                           the extent impacted by SPECTRX's lack of Diligence.

                  (C)      If the First Shipment Date has not occurred and such
                           failure is not due to a lack of SPECTRX Diligence in
                           fulfilling its responsibilities, if any, under the
                           Development Program, then prior to the end of the (*)
                           period set forth in Section 3.7(A)(2), as the case
                           may be, ABBOTT may extend such period (*) ,
                           respectively, by written notice of extension to
                           SPECTRX and within thirty (30) days of such notice,
                           payment to SPECTRX of (*). ABBOTT further may extend
                           such period by an additional (*) if SPECTRX has
                           commenced developing its SPECTRX Continuous Product
                           and if ABBOTT is Diligently working toward the First
                           Shipment Date. If ABBOTT's failure under this Section
                           3.7(C) is due to a lack of SPECTRX Diligence, then
                           such deadlines will be extended to the extent
                           impacted by SPECTRX's lack of Diligence.

                  (D)      Unless the parties agree to extend such time for the
                           Regulatory Filing in Section 3.7(A)(1) above, if
                           ABBOTT (i) has not made such Regulatory Filing within
                           the period set forth in Section 3.7(A)(1) or an
                           extended period pursuant to Section 3.7(B) or (ii) if
                           the First Shipment Date has not occurred within the
                           period set forth in Section 3.7(A)(2) or an extended
                           period pursuant to Section 3.7(C), then upon written
                           notice from SPECTRX, ABBOTT shall have no further
                           rights to any and all Continuous Products or to any
                           and all Non-Continuous Products, as the case may be
                           (except any right of ABBOTT in ABBOTT Research
                           Program Technology, Derived Technology, Joint
                           Research Program Technology, ABBOTT Continuous
                           Product Research Program Technology, or Joint
                           Continuous Product Research Program Technology, or
                           any rights pursuant to Article 6 of this Third
                           Amendment), provided that, if ABBOTT has relinquished
                           all rights pursuant to this Section 3.7(D)

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

                                       18
<PAGE>   19

                           and as a result this Agreement terminates in
                           accordance with Section 3.8(A), and a Regulatory
                           Filing did not occur due to one of the events set
                           forth in Section 3.1(B) of the Agreement, then
                           SPECTRX shall not be entitled to the license in
                           Section 6.2(C) of the Agreement and grant back of
                           rights set forth in Section 7.1 of the Agreement or
                           the license set forth in Section 11.2(B) of the Third
                           Amendment upon termination of the Agreement.

                  (E)      If ABBOTT has made a payment for a particular
                           extension under Section 3.7(B) and/or 3.7(C) for
                           either the first Continuous Product or the first
                           Non-Continuous Product, then if ABBOTT requires the
                           same extension for the first Product of the other
                           type (Non-continuous Product or Continuous Product,
                           as the case may be) under a Development Program,
                           ABBOTT will receive such extension (*) upon prior
                           written notification to SPECTRX within the original
                           time period; provided, that, ABBOTT is employing
                           Diligent commercially reasonable efforts to meet the
                           requirements as set forth in Section 3.7(A) (1) or
                           (2) for such Product and requires such extension to
                           meet such requirements.

                  (F)      If ABBOTT does not deliver the Development Program
                           Notification for a Continuous Product by the
                           prescribed date or if ABBOTT notifies SPECTRX that it
                           is terminating all Continuous Product Research or
                           Development Programs, then in the first (*) following
                           the prescribed date or notice of such termination,
                           ABBOTT will Diligently pursue research activities or
                           Development Program, (including spending at the rate
                           of at least (*) on Non-Continuous Product research
                           activities or Development Program and, thereafter, at
                           the rate of (*) per each (*) period until completion
                           or termination of such program). If ABBOTT does not
                           meet these requirements, then SPECTRX may terminate
                           ABBOTT's rights to all Non-Continuous Products upon
                           written notice to ABBOTT and the Agreement will
                           terminate in accordance with Section 3.8(A).

         3.8      Termination of all Programs.

                  (A)      Prior to the First Shipment Date, if ABBOTT ceases
                           funding all research activities as set forth in the
                           Agreement, and does not deliver any Development
                           Program Notifications within the prescribed times or
                           ceases all or does not commence any Development
                           Program with regard to either the Continuous Product
                           or Non-Continuous Product, and the parties have not
                           agreed otherwise, then this Agreement shall terminate
                           upon receipt of written notice of same from one party
                           to the other, subject to

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

                                       19
<PAGE>   20

                           Sections 10.3 and 10.4 of the Agreement. In any case,
                           prior to the First Shipment Date, if rights to both
                           the Continuous Product and the Non-Continuous Product
                           are relinquished by ABBOTT, this Agreement shall
                           terminate.

                  (B)      After the First Shipment Date, if rights to both the
                           Continuous Product and the Non-Continuous Product are
                           relinquished by ABBOTT, this Agreement shall
                           terminate.

                  (C)      If ABBOTT ceases funding any research activities,
                           ceases any research activities or any development
                           activities which are required by the Agreement for
                           the Continuous Product or the Non-Continuous Product,
                           ABBOTT shall notify SPECTRX within thirty (30) days
                           of each such cessation unless otherwise provided by
                           this Third Amendment or the Agreement.

         3.9 Reports. ABBOTT and SPECTRX each will provide the other with
quarterly reports on its activities under either the Continuous Product Research
Program or Research Program and reports every six (6) months for activities
under Development Programs, including summary data generated, to the extent
necessary to demonstrate that such party is meeting its Diligence requirements
(including spending requirements) set forth in the Agreement. Such reports shall
redact any data or other information which is subject to a confidentiality
agreement between ABBOTT and a Third Party and any data which is outside the
scope of ABBOTT's obligations under this Agreement. This requirement for reports
for a Research Program and any Development Programs shall not commence until a
party has Diligence requirements for such Research Program or Development
Program as set forth in Sections 3.5, 3.6 and/or 3.7, as the case may be. Such
reports to the Research Oversight Committee will satisfy reporting requirements
under this Section 3.9.

         3.10 R & D Expense Records and Audit. ABBOTT and SPECTRX each shall
keep and maintain records of amounts spent on the Continuous Product Research
Program, the Research Program and Development Programs conducted in accordance
with the provisions of Article 3 of the Agreement and Article 3 of this Third
Amendment, except for Abbott's requirement for the Research Program and
Development Program which shall commence upon the date it has Diligence
requirements for such Research Program or Development Program as set forth in
Sections 3.5, 3.6 and/or 3.7, for a period of two (2) years after the period to
which such records relate. During this period, such records shall be open to
inspection upon reasonable written notice by one party to the other party. Such
inspection shall be performed by a nationally recognized independent certified
public accountant selected by the party requesting the audit and approved by the
party to be audited, which approval shall not be unreasonably withheld. All
expenses of such inspection shall be borne by the party requesting the audit;
provided that, if the audited party is found to have overstated its spending by
more than (*) any amounts required to be spent for the Continuous Product
Research

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

                                       20
<PAGE>   21

Program, Research Program or Development Programs under Article 3, and as a
result is non-compliant with its Diligence requirements, then the audited party
shall bear such expenses. The independent certified public accountant shall sign
a confidentiality agreement and shall then have the right to examine the records
kept pursuant to this Section and report findings (but not the underlying data)
of the examination to the party requesting the audit as is necessary to evidence
that records were or were not maintained and expenditures made as required by
this Article 3. A copy of any report provided to the party requesting the audit
by the independent certified public accountant shall be given concurrently to
the audited party.

4.       SPECTRX CONTINUOUS PRODUCT

         4.1 Development by SPECTRX. If ABBOTT delivers a notice to materially
redefine the Continuous Product Research Program Specifications or of the
transfer to ABBOTT of the Continuous Product Research Program or to extend the
Development Program Notification date for the Continuous Product in accordance
with the Agreement, then SPECTRX may determine to develop not earlier than (*),
one (1) Continuous Product, for its own benefit, such research and development
to be funded by SPECTRX ("SPECTRX Continuous Product"). SPECTRX shall have the
right to modify SPECTRX Continuous Product to eliminate the use of any or all
Licensed Rights (as defined in Section 4.2(B)). Notwithstanding the foregoing,
SPECTRX will not have such rights to develop a SPECTRX Continuous Product until
after (*) if ABBOTT funds the Continuous Product Research Program at SPECTRX
after (*) with a commercially reasonable funding level agreed to by the parties
in order to develop a (*) Product that meets the Continuous Product Research
Program Specifications as first specified in Appendix 2.7. SPECTRX will provide
ABBOTT with ten (10) days prior written notice prior to commencing development
of a SPECTRX Continuous Product. One Continuous Product means (*) Continuous
Product which shall be sold (*) and pursuant to a (*) and which, after
commercial launch, (*). Notwithstanding anything in this Section 4.1, (A) if the
(*) Milestone is achieved between (*), and (*),, and ABBOTT delivers Development
Program Notification within sixty (60) days of SPECTRX's achievement of the (*)
Milestone, or (B) if ABBOTT provides Development Program Notification to SPECTRX
between (*), and (*), after funding the Continuous Product Research Program at
SPECTRX after (*), as set forth in this Section 4.1, then SPECTRX shall not have
the right to develop a SPECTRX Continuous Product.

         4.2 License to SPECTRX.

         (A)      If the criteria of Section 4.1 are met and within the time
                  period that ABBOTT has extended the deadline for delivering
                  the Product Development Notification ABBOTT receives a written
                  notification from SPECTRX of its election to develop such
                  SPECTRX Continuous Product, ABBOTT shall grant to SPECTRX a
                  royalty-bearing, non-exclusive license, without the right to
                  sublicense,

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

                                       21
<PAGE>   22

                           under the Licensed Patents and Know-How to make, have
                           made, use, sell and import the SPECTRX Continuous
                           Product in the Territory, (*). ABBOTT and SPECTRX
                           shall enter into a license agreement which shall
                           include the grant set forth in this Section 4.2(A),
                           the royalty in Section 4.4 and other customary terms
                           and conditions, similar where appropriate, to those
                           license terms set forth in the Agreement.

                  (B)      Upon receiving SPECTRX's election to develop such
                           SPECTRX Continuous Product, ABBOTT shall grant to
                           SPECTRX a royalty-bearing, non-exclusive license,
                           without the right to sublicense, under those ABBOTT
                           patent rights and know-how ("Licensed Rights") which
                           have been incorporated into the Continuous Product at
                           the earliest of the following: (1) date of ABBOTT's
                           notice to materially redefine the Continuous Product
                           Research Program Specifications as set forth in
                           Section 4.1; or (2) date of ABBOTT's notice of the
                           transfer to ABBOTT of the Continuous Product Research
                           Program as set forth in Section 4.1; or (3) date of
                           SPECTRX's notice as set forth in Section 4.2(A), to
                           use, sell, and import the SPECTRX Continuous Product
                           in the Territory. ABBOTT and SPECTRX shall enter into
                           a license agreement for such Licensed Rights under
                           commercially reasonable royalty rates and other
                           customary terms and conditions, similar where
                           appropriate, to those license terms set forth in the
                           Agreement.

         4.3 Manufacturing Rights.

                  (A)      If SPECTRX is granted a license under Section 4.2(B),
                           ABBOTT shall have the option to manufacture for
                           SPECTRX those items covered by the Licensed Rights.
                           SPECTRX shall deliver notification of such
                           anticipated date to ABBOTT within (*) prior to
                           SPECTRX's commercially reasonable anticipated date of
                           the first commercial sale of the SPECTRX Continuous
                           Product. ABBOTT may exercise its option hereunder by
                           written notice to SPECTRX (*) days of receiving
                           SPECTRX's notification. If ABBOTT delivers such
                           notice to SPECTRX, SPECTRX and ABBOTT shall enter
                           into a manufacturing agreement under commercially
                           reasonable terms agreed upon by the parties. If
                           ABBOTT does not exercise its option within the
                           designated time period, then ABBOTT shall modify
                           SPECTRX's license grant set forth in Section 4.2(B)
                           to extend it to "make and have made."

                  (B)      If SPECTRX is manufacturing (*)s for ABBOTT in
                           accordance with Section 5.2 and SPECTRX's (*) of the
                           SPECTRX Continuous

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

                                       22
<PAGE>   23

                           Product and (*) exceed the greater of (*) of SPECTRX
                           (*) as defined in Section 4.4(B) in any rolling
                           twelve (12) month period, or (2) (*) of the combined
                           total of the (*) of SPECTRX (*) as defined in Section
                           4.4(B) of the SPECTRX Continuous Product and (*) and
                           the (*) of ABBOTT Continuous Product and (*), then
                           ABBOTT shall have the option to transfer such
                           manufacture of (*)s to ABBOTT or a Third Party
                           designated by ABBOTT. ABBOTT may exercise its option
                           at any time after SPECTRX exceeds the threshold set
                           forth in this Section by written notice to SPECTRX.
                           ABBOTT and SPECTRX will agree on a commercially
                           reasonable transition plan and timetable to transfer
                           such manufacturing to ABBOTT or ABBOTT's designee and
                           SPECTRX will provide the necessary documentation and
                           assistance for such transfer. SPECTRX will provide
                           the necessary documentation and limited assistance at
                           its own expense and ABBOTT shall pay for all other
                           expenses associated with such transfer.

         4.4 Royalty.

                  (A)      In consideration for the license granted under
                           Section 4.2(A), SPECTRX shall pay to ABBOTT a royalty
                           as set forth in Section 4.4(B) on (*) of the SPECTRX
                           Continuous Product and (*) in the Territory applying
                           the same criteria to SPECTRX as in (*) for ABBOTT,
                           including the same provisions for deductions as set
                           forth in Section 1.23(A) of the Agreement and Section
                           5.6(B) of the Third Amendment. No royalty shall be
                           due for sales through ABBOTT or by ABBOTT under
                           distributor rights negotiated under Section 4.5 or
                           for items manufactured by ABBOTT for SPECTRX that are
                           related to the SPECTRX Continuous Product; provided,
                           that royalties also shall be due under the
                           circumstances that would call for ABBOTT to pay
                           royalties on its (*) under Section 4.2(D) of the
                           Agreement.

                  (B)      Prior to First Shipment Date of Abbott's Continuous
                           Product, royalties will be calculated on (*) at a
                           royalty rate of (*). Thereafter, the royalty rate
                           will be based on SPECTRX (*) (as defined in Section
                           4.4(B)(1)) in accordance with Appendix 4.4. Royalties
                           shall be calculated as follows:

                           (1)      It is anticipated that a majority of
                                    SPECTRX's (*), if any, of the SPECTRX
                                    Continuous Product and (*) will be made (*)
                                    for each year, total SPECTRX actual (*) of
                                    the SPECTRX Continuous Product and (*) shall
                                    be (*) unless SPECTRX or ABBOTT can
                                    demonstrate that the impact of such (*) is
                                    materially different than (*) for such year.
                                    The royalty rate(s)

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

                                       23
<PAGE>   24

                                    for such year shall be determined by
                                    applying such SPECTRX (*) to the chart in
                                    Appendix 4.4.

                           (2)      The royalty payment shall be determined by
                                    the formula (*) where (*) is the applicable
                                    royalty rate in Appendix 4.4; (*) is the
                                    total SPECTRX (*); and (*) is a fraction,
                                    the numerator of which is that portion of
                                    the SPECTRX (*) applicable to such royalty
                                    rate and the denominator of which is the
                                    total (*).

                  (C)      Any sales of the SPECTRX Continuous Product and/or
                           (*) by a Third Party in which SPECTRX has a material
                           financial interest shall be deemed sales by SPECTRX
                           and such sales shall be included in (*) for purposes
                           of calculation of the royalty payment under this
                           Article.

         4.5 Right of First Negotiation - Distribution Rights. ABBOTT shall have
the right of first negotiation for the exclusive right to the distribution of
the SPECTRX Continuous Product which right of first negotiation may be exercised
as follows:

                  (A)      Within (*) prior to SPECTRX's commercially reasonable
                           anticipated date of first commercial sale of the
                           SPECTRX Continuous Product, SPECTRX shall deliver
                           written notification to ABBOTT regarding its right of
                           first negotiation. SPECTRX shall not engage in any
                           discussions with any Third Party concerning such
                           distribution until ABBOTT's right of first
                           negotiation terminates in accordance with Section
                           4.5(C) or 4.5(D).

                  (B)      ABBOTT shall have (*) after receipt of the notice and
                           the report in Section 4.5(C) to provide a written
                           response indicating whether ABBOTT is interested or
                           not in such distribution rights.

                  (C)      At the time that the notice is delivered to ABBOTT,
                           SPECTRX shall provide to ABBOTT a full report on the
                           SPECTRX Continuous Product, including technical
                           specifications and performance of the SPECTRX
                           Continuous Product reasonably necessary to assess
                           performance and marketability and any other
                           information reasonably requested by ABBOTT. Within
                           (*) after receipt of such report, ABBOTT may send to
                           SPECTRX an initial proposal containing proposed
                           financial and other material terms for such
                           distribution relationship (the "ABBOTT Proposal"). If
                           ABBOTT does not send an ABBOTT Proposal within such
                           period of time, then ABBOTT's right of first
                           negotiation with regard to such distribution rights
                           shall terminate.

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

                                       24
<PAGE>   25

                  (D)      If ABBOTT delivers an ABBOTT Proposal to SPECTRX,
                           SPECTRX and ABBOTT shall promptly enter into good
                           faith negotiations towards a distribution agreement
                           upon mutually agreed terms and conditions. Subject to
                           SPECTRX making all reasonable efforts to meet and
                           negotiate with ABBOTT on a timely basis and in good
                           faith, if SPECTRX and ABBOTT fail to reach mutual
                           agreement on a term sheet covering the material terms
                           and conditions of a distribution agreement within (*)
                           from the receipt of the ABBOTT Proposal by SPECTRX,
                           or fail to execute a definitive distribution
                           agreement within (*) of such receipt, then upon
                           written notice from SPECTRX, ABBOTT shall have no
                           further right of first negotiation with regard to
                           such distribution rights except as set forth in
                           Section 4.5(E).

                  (E)      (1)      If, during  the (*) period subsequent to the
                                    process set forth in Section 4.5(A)-(D),
                                    SPECTRX negotiates proposed terms for a
                                    distribution agreement for the SPECTRX
                                    Continuous Product with a Third Party under
                                    terms and conditions that are more favorable
                                    to the Third Party than those originally
                                    proposed during negotiation with ABBOTT
                                    (taking into consideration all relevant
                                    terms of both proposals, including, but not
                                    limited to, quantities, any minimum purchase
                                    obligations, type of distribution rights,
                                    type of Third Party and other agreement
                                    obligations) ("More Favorable Terms"), then
                                    SPECTRX by written notice promptly shall
                                    inform ABBOTT of the More Favorable Terms
                                    and ABBOTT shall have (*) to accept such
                                    More Favorable Terms by written notice to
                                    SPECTRX.

                           (2)      If ABBOTT and SPECTRX fail to enter into a
                                    distribution relationship pursuant to
                                    Section 4.5(D), and prior to entering into
                                    any other definitive distribution agreement
                                    with a Third Party, SPECTRX makes
                                    significant improvements to the SPECTRX
                                    Continuous Product, then ABBOTT shall have
                                    the right of first negotiation with regard
                                    to such improved SPECTRX Continuous Product
                                    under the same process as set forth in this
                                    Section 4.5(A)-(D).

         4.6 Post Election Efforts on ABBOTT's Program. Notwithstanding
SPECTRX's election to develop a SPECTRX Continuous Product, if SPECTRX is
continuing to perform research or development work under this Agreement for
ABBOTT, SPECTRX agrees that it will Diligently pursue all such activities in
accordance with Section 3.5(A).

(*)      Confidential treatment requested pursuant to a request for confidential
         treatment filed with the Securities and Exchange Commission. Omitted
         portions have been filed separately with the Commission.

                                       25
<PAGE>   26
5.       CONSIDERATION

         5.1      Milestone Payments.

                  (A)      ABBOTT shall pay to SPECTRX the following payments
                           for the milestones listed below ("Milestones"):

                           (1)      (*) or achievement of the Milestone set
                                    forth in Section 5.1(A)(2), whichever is
                                    earlier (but in no case prior to (*).

                           (2)      (*) of ABBOTT's (or a mutually acceptable
                                    competent Third Party's) written notice of
                                    determination that a (*) meets all of the
                                    Continuous Product Research Program
                                    Specifications or on (*), whichever is
                                    later; such written notice of determination
                                    to be made within (*) after receipt by
                                    ABBOTT of the investigator's final report on
                                    the (*) study and all other reports
                                    described in the Continuous Product Research
                                    Program Specifications necessary to assess
                                    the achievement of this Milestone (excluding
                                    items required for the Development Program,
                                    e.g., drawings, parts list, etc.). (This
                                    Milestone shall be deemed achieved if ABBOTT
                                    delivers the Development Program
                                    Notification in Section 5.1(A)(3) for either
                                    a Continuous Product or Non-Continuous
                                    Product.)

                           (3)      (*) of delivery by ABBOTT to SPECTRX of a
                                    Development Program Notification.

                           (4)      (*) of submission by ABBOTT of a Regulatory
                                    Filing with the FDA for a Product.

                           (5)      (*) of ABBOTT receiving the first written
                                    approval to market from the FDA for a
                                    Product.

                           (6) (*) of the First Shipment Date of Product.

                  (B)      The payment for each Milestone shall be made only
                           once, notwithstanding that the Milestone is met for
                           more than one Product. The total consideration due
                           from ABBOTT under this Section 5.1 shall not exceed
                           (*).

                  (C)      ABBOTT at its election by the delivery of a written
                           notice to SPECTRX ("Common Stock Election Notice"),
                           may use a portion, up to one-half, of its payment
                           obligations under each of Section

(*) Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                       26
<PAGE>   27

                           5.1(A)(2) and Section 5.1(A)(3) to purchase shares of
                           common stock of SPECTRX ("SPECTRX Common Stock") as
                           detailed in the Common Stock Purchase Agreement,
                           Appendix 5.1. If ABBOTT elects to make any such
                           purchase of SPECTRX Common Stock, then, as further
                           provided in Section 5.4(A) hereof, the credit against
                           royalties for certain Milestone payments shall be
                           reduced by a sum equal to the aggregate purchase
                           price of such SPECTRX Common Stock.

                  (D)      If a Milestone payment is made as specified in 5.1(A)
                           or as a prepayment for an extension (Sections 3.4(B),
                           3.7(B), 3.7(C)) any such payment is non-refundable,
                           except as to credits in Section 5.4, or in any case,
                           if this Agreement is terminated.

         5.2 Transfer Price - (*)s for Continuous Product. If SPECTRX is
competitive with regard to Manufacturing Costs (*) greater than those by
bonafide Third Party manufacturers) unless SPECTRX adjusts its Transfer Price to
an amount equal to that Transfer Price that would have resulted had SPECTRX
Manufacturing Costs been no more than (*) greater, and manufacturing quality of
the (*)s for the Continuous Product (i.e., SPECTRX meets FDA QSR and European
EN46001 requirements, demonstrates to ABBOTT's reasonable satisfaction it has
sufficient manufacturing capacity to timely meet reasonably expected demand in
accordance with the forecast according to the Supply Agreement, and is able to
consistently supply (*)s that meet the final product specifications), then
ABBOTT and SPECTRX shall enter into a supply agreement substantially in the form
of Appendix 5.2 and containing the following terms for the supply of the (*)s by
SPECTRX to ABBOTT ("Supply Agreement"). ABBOTT shall pay a Transfer Price for
each (*) whether manufactured by SPECTRX or for SPECTRX by a Third Party that
equals the product of the Manufacturing Costs multiplied (*) or such lower
Transfer Price as SPECTRX may propose. If SPECTRX elects to supply the (*)s that
are manufactured by a Third Party under the direction of SPECTRX, ABBOTT shall
have the right to approve such Third Party, which approval will not be
unreasonably withheld.

         5.3 Royalty - Continuous Product. ABBOTT will pay royalties on annual
(*) of all Continuous Product and all (*) which are Licensed Products, excluding
that part of (*) attributable to (*) manufactured by SPECTRX, in the Territory
as set forth in Section 4.2(C) of the Agreement; subject to the (*) deduction in
Section 5.6, and provided, however, that the (*) of all Licensed Products shall
be aggregated to obtain the (*) Within One Year for purposes of the royalty
calculation set forth in Section 4.2(C) of the Agreement.

         5.4      Credits Against Royalties and Transfer Price.

                  (A)      The Milestone payments under Sections 5.1(A)(5) and
                           5.1(A)(6), up to a total amount of (*), less any
                           amounts paid for preferred

(*) Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                       27
<PAGE>   28

                           stock as set forth in Section 5.5 or SPECTRX Common
                           Stock in lieu of Milestone payments as set forth in
                           Section 5.1(C), shall be credited against future
                           royalties payable by ABBOTT and/or the Transfer Price
                           of the (*)s purchased by ABBOTT from SPECTRX. Such
                           payments shall be credited against royalties or the
                           Transfer Price due to SPECTRX (1) at the time of
                           payment of such royalty so that SPECTRX shall receive
                           (*) of the royalty amount due to it (i.e., for every
                           (*) in royalties due SPECTRX, SPECTRX shall receive
                           (*) or (2) at a rate of (*) of the Transfer Price,
                           respectively, until the total of (*) or such
                           applicable lesser amount, has been credited against
                           royalties and/or the Transfer Price due SPECTRX from
                           ABBOTT.

                  (B)      If (*) of the first Licensed Product, which Licensed
                           Product establishes the First Shipment Date, and all
                           subsequent Licensed Products, have not totaled (*)
                           within (*) of the First Shipment Date ("Cumulative
                           Amount"), then upon written notice by ABBOTT to
                           SPECTRX the following amounts would be creditable
                           against royalties and/or the Transfer Price of the
                           (*)s, in accordance with the formula set forth in
                           Section 5.4(A), until the total credited amount had
                           been attained or until the (*) by ABBOTT of the
                           Licensed Product for any twelve (12) month period
                           following the First Shipment Date (i.e. months 1-12,
                           13-24, 25-36, etc. starting from the First Shipment
                           Date) equal (*), whichever is first:

<TABLE>
<CAPTION>
                           Cumulative Amount Up to and Including                Credited Amount
                           -------------------------------------                ---------------
                           <S>                                                  <C>
                                    (*)                                               (*)
                                    (*)                                               (*)
                                    (*)                                               (*)
</TABLE>

                  (C)      ABBOTT may within (*) of the Third Amendment
                           Effective Date identify a (*) and, thereafter, if
                           ABBOTT chooses in its commercially reasonable
                           business judgment to take a license under such (*) or
                           any foreign counterparts, any divisions,
                           continuations and continuations-in-part, extensions,
                           renewals or reissues of such patent to make, have
                           made, use, sell or import a Product, in order not to
                           infringe such (*) by the practice of the Licensed
                           Patents or Know How for such Product, then up to (*)
                           of payments made by Abbott to acquire and maintain
                           such license, not to exceed (*) of such payments),
                           shall be creditable against royalties and/or Transfer
                           Price due to SPECTRX from ABBOTT, in accordance with
                           the formula set forth in Section 5.4(A), provided,
                           however, that no such payments shall be creditable
                           for license payments made to an affiliate of ABBOTT.
                           To the extent that such license also covers

(*) Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                       28
<PAGE>   29

                           other products or services, the payments shall be
                           allocated among Product and such other products or
                           services based on sales and the credit shall be
                           limited to the percentage allocated to Product.

                  (D)      If SPECTRX fails to supply the (*)s and ABBOTT elects
                           to transfer the manufacturing to ABBOTT or an ABBOTT
                           designated Third Party, all in accordance with the
                           terms of the Supply Agreement, then ABBOTT shall be
                           entitled to a credit against any royalties due to
                           SPECTRX for the reasonable costs of transition of
                           such manufacturing from SPECTRX. ABBOTT shall give
                           written notification of such costs with the first
                           royalty payment due SPECTRX after the transfer is
                           effective. The credit shall be taken against any
                           royalties due to SPECTRX under the Agreement without
                           recourse to the formula under Section 5.4(A).

         5.5      Preferred Stock Purchase.

                  (A)      Contemporaneously with the execution and delivery of
                           this Third Amendment, and effective as of the Third
                           Amendment Effective Date, ABBOTT and SPECTRX have
                           entered into that certain Redeemable Convertible
                           Preferred Stock Purchase Agreement pursuant to which
                           and subject to its terms and conditions, SPECTRX has
                           agreed to issue and sell, and ABBOTT has agreed to
                           purchase, an aggregate of 525,000 shares of a new
                           class of preferred stock of SPECTRX to be designated
                           Redeemable Convertible Preferred Stock at a purchase
                           price of Ten Dollars ($10.00 ) per share. The date of
                           the First Closing (as defined in such Redeemable
                           Convertible Preferred Stock Purchase Agreement) shall
                           be the Third Amendment Effective Date.

                  (B)      SPECTRX shall use all of the payments for preferred
                           stock received from ABBOTT only for the costs
                           associated with the Continuous Product Research
                           Program for ABBOTT (such costs to be similar to those
                           outlined in the original Appendix 2.3 of the
                           Agreement) under the Third Amendment or any wind-down
                           expenses of SPECTRX in accordance with Section 3.3,
                           if a Continuous Product Research Program is
                           completed, terminated or transferred by ABBOTT. If,
                           at the time ABBOTT elects to transfer the Continuous
                           Product Research Program to ABBOTT, ABBOTT and
                           SPECTRX agree to continue research activities at
                           SPECTRX, or at the time that ABBOTT gives Development
                           Program Notification, ABBOTT and SPECTRX agree (in
                           both cases, SPECTRX's agreement will not be
                           unreasonably withheld) to continue development
                           activities at SPECTRX, then to the extent

(*) Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                       29
<PAGE>   30

                           that the total costs and expenses incurred by SPECTRX
                           for performance of the Continuous Product Research
                           Program are less than the payments for preferred
                           stock received from ABBOTT, SPECTRX shall first use
                           the balance of those payments for the above-mentioned
                           continuing research and development activities and
                           upon the complete use of those payments, ABBOTT shall
                           provide separate funding for the costs and expenses
                           of the remainder of such activities. ABBOTT shall
                           have up to three (3) months from the above election
                           or notice to identify and agree with SPECTRX on such
                           activities. The obligation to use the preferred stock
                           payments, if any balance remains, will cease six (6)
                           months from any such election or notice. SPECTRX
                           shall employ Diligent commercially reasonable efforts
                           to limit wind-down expenses, including, but not
                           limited to, immediately terminating or noticing
                           termination, as permitted, of any obligations which
                           incur costs, not entering into any new financial
                           commitments and Diligently taking all reasonable
                           steps to minimize any existing and/or continuing
                           costs which cannot be immediately terminated.

         5.6 (*) Deduction. Prior to the determination of any royalty amount due
to SPECTRX by ABBOTT, (*) for each year shall be adjusted as follows:

         (A) (*)

         (B) (*)

6.       OTHER LICENSES

         6.1      (*) Technology and (*).

                  (A)      Subject to Section 6.1(B), if either SPECTRX or
                           ABBOTT possesses any rights pursuant to a patent or
                           patent application (which it has the right to
                           sublicense) covering (*) Technology or (*) and the
                           other party requests the right to practice under such
                           patent rights, then the party possessing such rights
                           pursuant to a patent or patent application agrees to
                           grant a non-exclusive license, without the right to
                           sublicense, except for a limited right to sublicense
                           for Third Party manufacture, to the other party,
                           under reasonable commercial terms mutually agreed
                           upon by the parties, to make, have made, use, sell
                           and import Continuous Products as follows:

                           (1)      If SPECTRX is the party possessing such
                                    rights, then SPECTRX shall grant to ABBOTT a
                                    non-exclusive license under SPECTRX (*)
                                    Technology or (*); the term of any such

(*) Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                       30
<PAGE>   31

                           license(s) from SPECTRX to ABBOTT shall be concurrent
                           with the term of the rights under Licensed Patents
                           and Know How held in the Field by ABBOTT except any
                           such license for technology Derived by SPECTRX from
                           ABBOTT (*) Technology or (*) shall survive
                           termination, other than for breach by ABBOTT of the
                           Agreement; or

                  (2)      if ABBOTT is the party possessing such rights, then:

                                    (a)     if the Agreement is terminated other
                                            than for breach by SPECTRX, ABBOTT
                                            shall grant SPECTRX a non-exclusive
                                            license under ABBOTT (*) Technology
                                            for Continuous Products;

                                    (b)      if, pursuant to the terms of this
                                             Agreement, ABBOTT's rights to all
                                             Continuous Products are terminated,
                                             other than by a termination by
                                             ABBOTT of the Agreement for breach
                                             by SPECTRX, then ABBOTT shall grant
                                             SPECTRX a non-exclusive license
                                             under ABBOTT (*) Technology for
                                             Continuous Products.

                                    (c)      The term of any such license(s)
                                             granted under this Section
                                             6.1(A)(2) shall survive termination
                                             of the Agreement other than
                                             termination for breach by SPECTRX.

                  (B)      Any license granted to SPECTRX under Section 6.1(A)
                           shall be strictly limited to ABBOTT (*) Technology
                           and shall not include or imply the right to use any
                           ABBOTT (*) Technology or (*) which was not Derived
                           from SPECTRX technology, nor shall it include or
                           imply any right to practice under any intellectual
                           property rights based on technology recorded in the
                           written records of ABBOTT before July 28, 1999
                           (except for Derived Technology), or any technology
                           under which ABBOTT acquires a license from Third
                           Parties except for the (*) referenced in Section
                           5.4(C).

                  (C)      If SPECTRX utilizes the license granted by ABBOTT
                           pursuant to Section 6.1(A), then ABBOTT will have the
                           right to manufacture any (*) for the SPECTRX Product
                           which utilizes such license during the term of such
                           license under commercially reasonable terms agreed to
                           by the parties. At the time SPECTRX delivers written
                           notice to ABBOTT of its intention to commence
                           development of a SPECTRX Continuous Product pursuant
                           to

(*) Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                       31
<PAGE>   32

                           Section 4.1 of this Third Amendment, which shall not
                           be before specifications sufficient to allow
                           reasonable estimate of Manufacturing Costs of such
                           (*) are finalized, SPECTRX and ABBOTT will enter into
                           good faith negotiations toward an agreement for the
                           supply of such (*) by ABBOTT. In the event that the
                           parties are not able to reach an agreement within (*)
                           despite Diligent negotiations, either party may
                           terminate such negotiations upon written notice to
                           the other, after which SPECTRX shall have the right
                           to manufacture for itself, or have manufactured for
                           it by Third Parties, such (*), provided, however that
                           the terms and conditions for SPECTRX of such
                           manufacturing arrangement shall not be, in the
                           aggregate, less favorable to SPECTRX than the terms
                           offered by ABBOTT. During such negotiation, ABBOTT
                           shall supply (*) to SPECTRX on mutually agreeable
                           terms, or at SPECTRX's option, SPECTRX shall have the
                           right to purchase (*) from a Third Party.

                  (D)      In any case in which a license to patent rights
                           covering (*) Technology is conveyed to a party, it
                           shall convey a license to patent rights covering
                           combinations of (*) Technology with (*) Technology or
                           combinations of (*) Technology with (*), in which the
                           advancement over the art is in (*) Technology, and
                           the combination is made with (*) Technology or (*) in
                           existence as of the Effective Date of this Third
                           Amendment, but shall not convey a license to patent
                           rights covering (*) Technology or (*) alone.
                           Therefore, a license to such patent rights for the
                           combinations does not in and of itself provide the
                           right to practice the combination unless the party
                           already has the right to use such (*)Technology or
                           (*).

         6.2 (*). At SPECTRX's written request, ABBOTT agrees to enter into good
faith negotiations with SPECTRX for the granting of a license to SPECTRX for
ABBOTT Diagnostic Division (*) (which technology is not subject to an exclusive
license or other restrictions prohibiting the granting of a license at the time
of SPECTRX's request); provided, that, ABBOTT Diagnostics Division desires to
out-license such technology to Third Parties, not including technology which
ABBOTT is cross-licensing or has cross-licensed with a Third Party in order to
obtain the technology of such Third Party. If SPECTRX makes such a request to
ABBOTT and ABBOTT does not desire to out-license such technology at the time of
such request, then SPECTRX's request shall be effective for a (*) period
following the date the request is received by ABBOTT. If ABBOTT desires to
out-license such technology during such (*) period, ABBOTT will notify SPECTRX
and SPECTRX and ABBOTT will enter into good faith negotiations for the grant of
a license to SPECTRX for such technology. After such (*) period, ABBOTT will
have no obligation to enter into such negotiations unless SPECTRX makes another
request in writing. Any breach of this Section 6.2 by ABBOTT will not be
considered a material breach of the Agreement.

(*) Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                       32
<PAGE>   33

         6.3 (*). For avoidance of doubt, the parties acknowledge that ABBOTT
has the right to (*)
         6.4      License Limitation.

                  (A)      The licenses granted by either party pursuant to this
                           Article 6 shall not extend to making, having made,
                           using, selling or importing (*) for either (i) the
                           Products developed for or by the other party or (ii)
                           devices of any kind other than Products in which the
                           other party has any exclusive or co-exclusive right
                           and neither party shall have an obligation under the
                           Agreement to grant such license to the other.

                  (B)      If under the terms of a contract that existed prior
                           to the Effective Date of the Agreement between a
                           party to this Agreement and a Third Party, such party
                           is obligated to license to such Third Party any
                           rights granted to it under this Article 6, then such
                           license shall be granted to such Third Party only to
                           the extent of the license granted to such party
                           (i.e., such license to a Third Party must include all
                           limitations imposed on the original licensee
                           hereunder).

7.       (*)

         7.1      Payments by ABBOTT. Under the agreement among (*)

         7.2      (*).  SPECTRX agrees to (*)

8.       OTHER MANUFACTURING BY SPECTRX

         Upon the request of SPECTRX, ABBOTT will consider using SPECTRX to
manufacture devices for ABBOTT Diagnostic Division which devices use optical
technology or any other devices that could be economically manufactured in a
SPECTRX manufacturing facility. Any breach of this Article 8 by ABBOTT will not
be construed as a material breach of the Agreement by ABBOTT.

9.       WAIVER

         SPECTRX hereby waives any milestone payments associated with the
milestones set forth in Section 4.2(B) of the Agreement, including, but not
limited to, the payment set forth in Section 4.2(B)(v) of the Agreement, all of
which milestones and milestone payments are superceded by the Milestones and
Milestone payments set forth in Section 5.1.

(*) Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                       33
<PAGE>   34

10.      EXISTING AGREEMENT TERMS

         All other terms and conditions of the Agreement shall be effective to
the extent they are not inconsistent with this Third Amendment as set forth in
Section 1.1 of this Third Amendment.

11.      OWNERSHIP OF INTELLECTUAL PROPERTY

         11.1 SPECTRX Continuous Product Research Program Technology. All
Continuous Product Research Program Technology invented solely by SPECTRX
employees, agents or contractors ("SPECTRX Continuous Product Research Program
Technology") shall be the property of SPECTRX; and all SpectRx Continuous
Product Research Program Technology in the Field and all SPECTRX Continuous
Product Research Program Technology related to (*) Technology, (*) or (*)
Technology shall be promptly disclosed in writing to ABBOTT; and shall be
subject to the following:

                  (A)      If the SPECTRX Continuous Research Program Technology
                           is useful solely within the Field, then such SPECTRX
                           Continuous Product Research Program Technology shall
                           be included under the Licensed Patents or Know-How,
                           as appropriate, and shall be included under ABBOTT's
                           Licenses in the Field as set forth in Section 4.1 of
                           the Agreement.

                  (B)      If the SPECTRX Continuous Product Research Program
                           Technology is useful within the Field and outside the
                           Field, then:

                           (1)      such SPECTRX Continuous Product Research
                                    Program Technology shall be included under
                                    the Licensed Patents or Know-How, as
                                    appropriate, and shall be included under
                                    ABBOTT's Licenses in the Field as set forth
                                    in Section 4.1 of the Agreement; and

                           (2)      ABBOTT shall have the right of first
                                    negotiation for a license under the SPECTRX
                                    Continuous Product Research Program
                                    Technology in all other fields with the
                                    exception of (*), such right to be exercised
                                    as set forth in Section 11.3(D).

                  (C)      If the SPECTRX Continuous Product Research Program
                           Technology is useful solely outside the Field, then
                           ABBOTT shall have the right of first negotiation to a
                           license under the SPECTRX Continuous Product Research
                           Program Technology in all other fields with the
                           exception of (*), such right to be exercised as set
                           forth in Section 11.3(D).

(*) Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                       34
<PAGE>   35

                  (D)      By way of clarification, but not limitation, all
                           technology invented by SPECTRX, its employees, agents
                           or contractors outside the Continuous Product
                           Research Program (other than that invented under the
                           Research Program as set forth in Section 6.1 of the
                           Agreement) and outside the Field or acquired or
                           licensed by SPECTRX outside the Field, are the sole
                           property of SPECTRX, and except as set forth in
                           Section 6.1, SPECTRX shall have no obligation
                           hereunder to grant a license under such technology to
                           ABBOTT.

         11.2     ABBOTT Continuous Product Research Program Technology

                  (A)      All Continuous Product Research Program Technology
                           invented solely by ABBOTT employees, agents or
                           contractors ("ABBOTT Continuous Product Research
                           Program Technology") shall be the property of ABBOTT
                           and all ABBOTT Continuous Product Research Program
                           Technology in the Field and all ABBOTT Continuous
                           Product Research Program Technology related to ABBOTT
                           (*) Technology shall be promptly disclosed in writing
                           to SPECTRX and shall be subject to Section 11.2(B).

                  (B)      In the event of early termination pursuant to
                           Section 3.8(A) or by ABBOTT pursuant to Section
                           10.2(A)(i) of the Agreement or by SPECTRX pursuant to
                           Section 3.7(D) (subject to certain exceptions set
                           forth in that Section) or pursuant to Section 10.2(D)
                           of the Agreement prior to the First Shipment Date,
                           ABBOTT shall grant to SPECTRX a worldwide,
                           royalty-bearing, nonexclusive license with the right
                           to sublicense, under ABBOTT Continuous Product
                           Research Program Technology, other than (*)Technology
                           or (*), except for ABBOTT (*) Technology set forth in
                           Section 6.1, to make, have made, use, sell and import
                           products in the Field.

                  (C)      ABBOTT and SPECTRX shall enter into a license
                           agreement regarding the licenses in Section 11.2
                           which shall contain the standard license terms and
                           conditions under which ABBOTT shall be entitled to
                           (*) of all license fees and royalties received by
                           SPECTRX from any sublicense from SPECTRX to a Third
                           Party, which shall not include SPECTRX's existing
                           license obligations to (*) under an agreement dated
                           (*).

                  (D)      By way of clarification, but not limitation, the
                           following are the sole property of ABBOTT and, except
                           for Abbott (*) Technology as set forth in Section
                           6.1, ABBOTT shall have no obligation hereunder to

(*) Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                       35
<PAGE>   36

                           grant a license to SPECTRX under: (1) technology
                           invented by ABBOTT employees, agents and/or
                           contractors outside the Continuous Product Research
                           Program other than that invented under the Research
                           Program as set forth in Section 6.2 of the Agreement;
                           (2) (*) Technology including (*) and (*); and (3)
                           technology under which ABBOTT acquires a license from
                           Third Parties except for the (*) referenced in
                           Section 5.4(C), whether or not within the Field.

                  (E)      Notwithstanding anything in this Section 11.2, if the
                           Continuous Product Research Program is transferred to
                           ABBOTT, then all ABBOTT Continuous Product Research
                           Program Technology conceived and/or reduced to
                           practice solely by ABBOTT or by ABBOTT with a Third
                           Party after such transfer ("Abbott Post-Transfer
                           Technology") shall be the property of ABBOTT or
                           ABBOTT and such Third Party and all such technology
                           to the extent applicable to the Field shall be
                           treated in the same manner that Development Program
                           Technology would be treated in Section 7.1 of the
                           Agreement after delivery of the Development Program
                           Notification but prior to the First Shipment Date.

         11.3 Joint Continuous Product Research Program Technology. All
Continuous Product Research Program Technology invented by at least one
employee, agent or contractor of ABBOTT and at least one employee agent or
contractor of SPECTRX ("Joint Continuous Product Research Program Technology")
shall be the joint property of ABBOTT and SPECTRX subject to the following:

                  (A)      If the Joint Continuous Product Research Program
                           Technology is useful within the Field, then SPECTRX's
                           interest in such Joint Continuous Product Research
                           Program Technology shall be included under the
                           Licensed Patents or Know-How, as appropriate, and
                           shall be included under ABBOTT's Licenses in the
                           Field as set forth in Section 4.1 of the Agreement.

                  (B)      If either party grants a license to a Third Party
                           outside the Field (or after termination of this
                           Agreement within or outside what was defined as the
                           Field when the Agreement was effective) under that
                           party's interest in any Joint Continuous Product
                           Research Program Technology, then the other party
                           shall be entitled to (*) of all license fees and
                           royalties received by the licensed party in
                           consideration for such license which shall not
                           include SPECTRX's existing license obligations to (*)
                           under an agreement dated (*). If the parties jointly
                           grant an Exclusive License to a Third Party, then the
                           parties shall equally share in all license fees and
                           royalties generated by such license.

(*) Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                       36
<PAGE>   37

                  (C)      If either party is interested in obtaining an
                           Exclusive License, or in outlicensing its interest
                           under any Joint Continuous Product Research Program
                           Technology outside the Field, then such party
                           ("licensing party") shall promptly notify the other
                           party, and in the latter case, such other party shall
                           have the right of first negotiation to obtain an
                           Exclusive License under the licensing party's
                           interest in such Joint Continuous Product Research
                           Program Technology, in accordance with the procedure
                           under Section 11.3(D).

                  (D)      ABBOTT and SPECTRX have the right of first
                           negotiation to certain Continuous Product Research
                           Program Technology of the other in accordance with
                           Sections 11.1(B)(2), 11.1(C) and 11.3(C) or the
                           Business (as defined in Section 7.2 of the Agreement)
                           for Continuous Products. If either party intends to
                           outlicense or desires to collaborate regarding such
                           Continuous Product Research Program Technology (or
                           ABBOTT desires to sell the Business for Continuous
                           Products), such party ("Notifying Party") shall
                           deliver written notification of such intent or a
                           proposal ("Notice") to the other party. The Notice
                           shall be delivered prior to the Notifying Party
                           engaging in discussions with any Third Party
                           concerning such Continuous Product Research Program
                           Technology (or the Business for Continuous Products),
                           provided that the Notifying Party may acknowledge to
                           any such Third Party that the other party has such a
                           right of first negotiation. The other party shall
                           have (*) after receipt of the Notice to provide a
                           written response indicating whether or not it is
                           interested in such Continuous Product Research
                           Program Technology (or the Business for Continuous
                           Products). At the time that the Notice is delivered,
                           the Notifying Party shall provide to the other party
                           a report on the current status of its research and
                           development activities with regard to such Continuous
                           Product Research Program Technology (or the Business
                           for Continuous Products). At any time within (*)
                           after receipt of such report, the other party may
                           send to the Notifying Party an initial proposal
                           containing proposed financial and other material
                           terms for a license and/or collaboration agreement
                           for the development and commercialization of such
                           Continuous Product Research Program Technology (or
                           for a purchase agreement for the Business for
                           Continuous Products) (the "Proposal"). If the other
                           party does not send a Proposal within such period of
                           time or any extended time period agreed to by the
                           parties, then the other party's right of first
                           negotiation with regard to such Continuous Product
                           Research Program Technology (or the Business for
                           Continuous Products), shall expire. If the other
                           party sends a Proposal to the Notifying

(*) Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                      37
<PAGE>   38

                           Party, the parties shall promptly enter into good
                           faith negotiations towards an agreement upon mutually
                           agreed terms and conditions. Subject to the Notifying
                           Party making all reasonable efforts to meet and
                           negotiate with the other party on a timely basis and
                           in good faith, if the parties fail to reach mutual
                           agreement on a term sheet covering the material terms
                           and conditions of an agreement within (*) from the
                           receipt of the Proposal, then upon written notice
                           from the Notifying Party to the other party, all
                           negotiations shall cease and the other party shall
                           have no further right of first negotiation with
                           regard to such Continuous Product Research Program
                           Technology (or the Business for Continuous Products).

ABBOTT LABORATORIES                  SPECTRX, INC.

By:                                   By:
   -------------------------------       -------------------------------------
        James J. Koziarz                     Mark A. Samuels
Title:  Corporate Vice President      Title: Chairman, Chief Executive Officer
        Diagnostic Products
        Research and Development

Date:                                 Date:
     -----------------------------         -----------------------------------

(*) Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                       38
<PAGE>   39

                                  Appendix 2.7
               Continuous Product Research Program Specifications

(*)

Appendix 2.7 Definitions:

(*)

Appendix 2.7 Information for Protocols:

(*)

Appendix 2.7 (*) Confidential treatment requested pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission.
Omitted portions have been filed separately with the Commission.

                                       1
<PAGE>   40

                                  Appendix 4.2
                                List of Companies

                                       (*)

Appendix 4.2 (*) Confidential treatment requested pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission.
Omitted portions have been filed separately with the Commission.

                                       1
<PAGE>   41

Appendix 4.4

                     SPECTRX Continuous Product Royalty Rate

<TABLE>
<CAPTION>
                        SPECTRX (*)
                        -----------
                     Within One Year
                     ---------------
                           ($MM)                                               Royalty Rate Percent
                           -----                                               --------------------

                     ------------------------------------------------------------------------------
                         <S>                                                   <C>
                         Up to (*)                                                     (*)
                     ------------------------------------------------------------------------------
                            (*)                                                        (*)
                     ------------------------------------------------------------------------------
                            (*)                                                        (*)
                     ------------------------------------------------------------------------------
                            (*)                                                        (*)
                     ------------------------------------------------------------------------------
                            (*)                                                        (*)
                     ------------------------------------------------------------------------------

</TABLE>

Appendix 4.4 (*) Confidential treatment requested pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission.
Omitted portions have been filed separately with the Commission.

                                       2
<PAGE>   42

                                  Appendix 5.1
                         COMMON STOCK PURCHASE AGREEMENT

                  THIS AGREEMENT is made as of November November 30, 1999
between SpectRx, Inc., a Delaware corporation located at 6025A Unity Drive,
Norcross, Georgia 30071 ("SpectRx"), and Abbott Laboratories, an Illinois
corporation located at 100 Abbott Park Road, Abbott Park, Illinois 60064
("Abbott").

                                   WITNESSETH:

                  WHEREAS, contemporaneously with the execution and delivery of
this Agreement, the parties hereto have entered into a certain Amendment dated
of even date herewith to that certain Research & Development and License
Agreement between the parties dated October 10, 1996 (the "Development
Amendment");

                  WHEREAS, pursuant to Section 5.1(A)(2) and Section 5.1(A)(3)
of the Development Amendment, and subject to certain terms and conditions,
Purchaser has agreed to make certain milestone payments to SpectRx, each in the
amount of (*);

                  WHEREAS, the parties hereto have agreed that Abbott (*) and
receive in exchange therefor shares of common stock of SpectRx ("SpectRx Common
Stock"), and to accommodate these agreements and the purchase and sale of such
shares of SpectRx Common Stock, the parties have entered into this Common Stock
Purchase Agreement;

                  NOW, THEREFORE, in consideration of the premises and the
mutual promises and covenants set forth below, SpectRx and Abbott agree as
follows:

         1.       AGREEMENT AS TO PURCHASE AND SALE OF SPECTRX COMMON STOCK.
Abbott at its election by delivery of a written notice to SpectRx ("Common Stock
Election Notice"), may use a portion, up to one-half, of its payment obligations
under each of Section 5.1(A)(2) and Section 5.1(A)(3) of the Development
Amendment to purchase shares of common stock of SpectRx ("SpectRx Common
Stock"). The number of shares of SpectRx Common Stock to be issued and sold by
SpectRx, and purchased by Abbott, should Abbott make any of the elections
described in the preceding sentence, will equal the sum so elected by Abbott to
be applied to purchase SpectRx Common Stock, divided by the average closing
sales price of the SpectRx Common Stock as reported by NASDAQ for the thirty
(30) trading days prior to the date of the Common Stock Election Notice. The
Common Stock Election Notice in respect of the payments due under Section
5.1(A)(2) and under Section 5.1(A)(3) shall be

Appendix 5.1 (*) Confidential treatment requested pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission.
Omitted portions have been filed separately with the Commission.

                                      1
<PAGE>   43

issued and delivered simultaneously with the respective notifications pursuant
to such Section 5.1(A)(2) and Section 5.1(A)(3) made by Abbott of achievement of
such milestones. If Abbott elects to make any such purchase of SpectRx Common
Stock, then as further provided in Section 5.4(A) of the Development Agreement,
the credit against royalties for certain milestone payments shall be reduced by
a sum equal to the aggregate purchase price of such SpectRx Common Stock.

                  2.       CLOSING AND DELIVERIES. The closing of the purchase
and sale of SpectRx Common Stock pursuant to this Agreement shall be held at the
executive offices of SpectRx on the fifth (5th) business day following the date
of receipt by SpectRx of the Common Stock Election Notice, or at such other time
and place upon which SpectRx and Abbott shall agree. At such closing, SpectRx
will deliver to Abbott a certificate, registered in Abbott's name, representing
the shares of SpectRx Common Stock to be purchased, against payment of the sum
as to which Abbott has made an election to receive and purchase SpectRx Common
Stock as provided for hereinabove.

                  3.       REPRESENTATIONS AND WARRANTIES. Coincident with the
closing of the purchase and sale of SpectRx Common Stock pursuant to this
Agreement, SpectRx will deliver a certificate by which it will make to Abbott
representations and warranties that are substantially similar to those contained
in the Redeemable Convertible Preferred Stock Purchase Agreement of even date
herewith between the parties ("Preferred Stock Agreement"), although such
representations and warranties shall be updated or exceptions made thereto to
account for changes or events that have occurred between the date of this
Agreement and the date of such closing, and such other corresponding changes to
dates and references to financial statements and share numbers and the like so
as to enable SpectRx to make such representations on a current basis. Similarly,
Abbott will deliver a certificate at closing where it will make to SpectRx as of
the date of such closing the representations and warranties contained in Section
4 of the Preferred Stock Agreement.

                  4.       COVENANT RE: TRANSFER OF SPECTRX COMMON STOCK. Abbott
covenants and agrees that it shall not sell, make any short sale of, loan, grant
any option for the purchase of, or otherwise dispose of any shares of SpectRx
Common Stock acquired by Abbott pursuant to this Agreement for a period of one
hundred eighty (180) days from the date of issuance of shares of SpectRx Common
Stock. Abbott agrees that the certificates for shares of SpectRx Common Stock
issued pursuant to this Agreement shall bear the following legend:

         "THESE SECURITIES MAY NOT BE SOLD, PLEDGED OR OTHERWISE DISPOSED OF
         PRIOR TO ____________________ [181st day after issuance] BY REASON OF
         AN AGREEMENT BETWEEN THE COMPANY AND THE HOLDER OF THE SHARES
         REPRESENTED BY THIS CERTIFICATE."

Appendix 5.1

                                       2
<PAGE>   44
                  5.       GOVERNING LAW. This Agreement shall be governed in
all respects by the internal laws of the State of Delaware as applied to
agreements entered into among Delaware residents to be performed entirely within
Delaware, without reference to the principles of conflict of laws under Delaware
law.

                  6.       SUCCESSORS AND ASSIGNS. Except as otherwise provided
herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors and administrators of the
parties hereto, provided, however, that the rights of Abbott to purchase the
SpectRx Common Stock shall not be assignable without the consent of SpectRx.

                  7.       ENTIRE AGREEMENT; AMENDMENT. This Agreement and the
other documents delivered pursuant hereto at the closing constitute the full and
entire understanding and agreement between the parties with regard to the
subject hereof and thereof, and no party shall be liable or bound to any other
party in any manner by any warranties, representations or covenants except as
specifically set forth herein or therein. Except as expressly provided herein,
neither this Agreement nor any term hereof may be amended, waived, discharged or
terminated other than by a written instrument signed by the party against whom
enforcement of any such amendment, waiver, discharge or termination is sought.

                  8.       NOTICES, ETC. All notices and other communications
required or permitted hereunder shall be in writing and shall be mailed by
registered or certified mail, postage prepaid, or by facsimile transmission, or
otherwise delivered by hand or by messenger, addressed (a) if to Abbott, at
Abbott's address set forth above, or at such other address as Abbott shall have
furnished to SpectRx in writing, or (b) if to SpectRx, one copy should be sent
to its address set forth on the cover page of this Agreement and addressed to
the attention of the Corporate Secretary, or at such other address as SpectRx
shall have furnished to Abbott.

                  Each such notice or other communication shall for all purposes
of this Agreement be treated as effective or having been given when delivered if
delivered personally, or, if sent by mail, at the earlier of its receipt or 72
hours after the same has been deposited in a regularly maintained receptacle for
the deposit of the United States mail, addressed and mailed as aforesaid, or if
by facsimile transmission, as indicated by the facsimile imprint date.

         9.       DELAYS OR OMISSIONS. Except as expressly provided herein, no
delay or omission to exercise any right, power or remedy accruing to any party
hereto, upon any breach or default of any other party under this Agreement,
shall impair any such right, power or remedy of such holder nor shall it be
construed to be a waiver of

Appendix 5.1

                                       3
<PAGE>   45

any such breach or default, or an acquiescence therein, or of or in any similar
breach or default thereafter occurring; nor shall any waiver of any single
breach or default be deemed a waiver of any other breach or default theretofore
or thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any party of any breach or default under this
Agreement, or any waiver on the part of any party of any provisions or
conditions of this agreement, must be in writing and shall be effective only to
the extent specifically set forth in such writing. All remedies, either under
this Agreement or by law or otherwise afforded to any holder, shall be
cumulative and not alternative.

                  10.      GEORGIA LEGEND. Abbott acknowledges that each
certificate shall bear, in addition to the legend referenced in Section 4.9 of
the Preferred Stock Agreement, the following legend: THESE SECURITIES HAVE BEEN
ISSUED OR SOLD IN RELIANCE ON PARAGRAPH 13 OF CODE SECTION 10-5-9 OF THE GEORGIA
SECURITIES ACT OF 1973, AND MAY NOT BE SOLD OR TRANSFERRED EXCEPT IN A
TRANSACTION WHICH IS EXEMPT UNDER SUCH ACT OR PURSUANT TO AN EFFECTIVE
REGISTRATION UNDER SUCH ACT.

                  11.      EXPENSES. SpectRx and Abbott shall bear its own legal
and other expenses with respect to this Agreement.

                  12.      COUNTERPARTS. This Agreement may be executed in
counterparts, each of which shall be enforceable against the parties actually
executing such counterparts, and all of which together shall constitute one
instrument.

                  13.      SEVERABILITY. In the event that any provision of this
Agreement becomes or is declared by a court of competent jurisdiction to be
illegal, unenforceable or void, this Agreement shall continue in full force and
effect without said provision; provided that no such severability shall be
effective if it materially changes the economic benefit of this Agreement to any
party.

                  14.      TITLES AND SUBTITLES. The titles and subtitles used
in this Agreement are used for convenience only and are not considered in
construing or interpreting this Agreement.

         The foregoing agreement is hereby executed as of the date first above
written.

"PURCHASER"                                  "COMPANY"

ABBOTT LABORATORIES                          SPECTRX, INC.

By:                                          By:
   -------------------------                    --------------------------
Title:                                       Title:
      ----------------------                        -----------------------

Appendix 5.1

                                       4
<PAGE>   46

                                  Appendix 5.2
                           (*) Supply Agreement Terms

Unless otherwise defined in this Exhibit 5.2, the defined terms have the
meanings set forth in the Third Amendment or the Agreement.

                  I. PRICING, ORDERING, DELIVERY, and INVOICING

A. Transfer Price. The Transfer Price for (*)s supplied by SPECTRX to ABBOTT
hereunder shall be as set forth in Section 5.2 of the Third Amendment. The
Transfer Price will be adjusted as follows: 1) at least semi-annually, or 2) if
purchased material costs change by more than (*) since the last adjustment, or
3) if there is any other change which significantly impacts the Manufacturing
Costs. A reconciliation process will be developed as part of the Supply
Agreement to reconcile any differences between actual and estimated
Manufacturing Costs.

B. Manufacturing Costs Reduction. SPECTRX will use commercially reasonable
efforts to minimize Manufacturing Costs. If the then current Transfer Price for
(*)s results in a gross margin for SPECTRX of less than (*) any cost savings
will be absorbed by SPECTRX until said margin reaches (*). Gross margin shall be
computed as the difference between the Transfer Price and actual Manufacturing
Costs divided by the Transfer Price. SPECTRX will implement commercially
reasonable manufacturing process changes requested by ABBOTT. Any costs
associated with said changes will be paid (*). SPECTRX will buy raw materials
and components of the (*) through ABBOTT if ABBOTT can purchase such raw
materials and components at a lower price than SPECTRX.

C. Delivery. SPECTRX will ship within (*) from date of receipt of purchase order
if requested by ABBOTT as long as the cumulative quantities of (*)s ordered by
ABBOTT and scheduled to ship during that month do not exceed the forecast for
that month or SPECTRX's production capacity as defined in Section II-G. SPECTRX
will make commercially reasonable efforts to ship (*)s that are ordered in
excess of the amount forecasted for that month within thirty (30) days of
receipt of said order. ABBOTT will reimburse SPECTRX, with prior written
approval by ABBOTT, for any (*). SPECTRX shall ship (*)s ordered by ABBOTT
F.O.B. SPECTRX's manufacturing facility.

D. Forecasting and Ordering. ABBOTT shall provide rolling 12-month forecasts of
its monthly requirements starting six (6) months prior to the delivery of the
first production units, and, updated monthly for the first year after the first
(*) shipment, and quarterly thereafter, submitted thirty (30) days in advance of
the beginning of said quarter. The first three (3) months of such forecast shall
be binding and shall vary by no more than

Appendix 5.2 (*) Confidential treatment requested pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission.
Omitted portions have been filed separately with the Commission.

                                       5
<PAGE>   47

(*) of the previous forecast for the same three (3) month period. The last nine
(9) months of the forecast shall not be binding and shall be used only for
planning purposes and ordering materials.

E. Purchase Orders. Orders shall be placed upon ABBOTT's purchase order form,
specifying quantities ordered and delivery dates. Purchase orders must be placed
at least thirty (30) days prior to requested shipment date. Terms and conditions
in the Supply Agreement supersede terms and conditions on the purchase order.
Purchase orders issued by ABBOTT are non-cancellable.

F. Invoice Terms. SPECTRX shall invoice ABBOTT for (*)s purchased by ABBOTT upon
shipment of such (*)s to ABBOTT. Such invoices shall be paid in full within
thirty (30) days of the date such invoice is received by ABBOTT.

G. Certificate of Analysis. Each shipment of (*)s will be delivered with a full
certificate of analysis verifying the (*)s' compliance with the current (*)
Specifications (as defined in Section II-A).

H. (*). At SPECTRX's option, ABBOTT will pay SPECTRX in advance for (*).

I. Tooling & Equipment. All tooling and equipment required to be purchased
exclusively for the manufacture of (*)s for ABBOTT will be paid for and owned by
ABBOTT, including any such tooling and equipment required to increase capacity.
ABBOTT shall bear all costs for replacement of such tooling and equipment owned
byAbbott, except in cases of negligence or willful misconduct on the behalf of
Spectrx in which case SPECTX shall bear all such costs.

J. ABBOTT Purchases. Any tooling, equipment, raw materials, and components that
are purchased by ABBOTT for use in manufacturing by SPECTRX and not then sold to
SPECTRX will not be included in calculating Manufacturing Costs for purposes of
determining the Transfer Price.

K. (*) Acceptance. ABBOTT shall have twenty (20) business days from date of
receipt to inspect (*)s for conformance to the (*) Specifications and accept or
reject (*)s. Any (*)s not rejected in writing within twenty (20) business days
of receipt shall be deemed accepted by ABBOTT. Such acceptance does not waive
SPECTRX's obligations in the Supply Agreement related to the (*)s including, but
not limited to, warranty, indemnification, and product recall obligations.

Appendix 5.2 (*) Confidential treatment requested pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission.
Omitted portions have been filed separately with the Commission.

                                       6
<PAGE>   48

                      II. SPECIFICATIONS AND MANUFACTURING

A. Specifications. The specifications for the (*)(s) will be incorporated into
the Supply Agreement and shall include SpectRx's internal manufacturing
specifications as well as technical specifications and test protocols relating
to the (*)s ("(*) Specifications").

B. Regulatory & QSR Compliance. (*)s manufactured by SPECTRX for ABBOTT under
the Supply Agreement shall be manufactured and tested by SPECTRX in accordance
with the (*) Specifications, United States FDA QSR, European EN46001, and all
applicable federal, state and local laws, regulations and guidelines. Any fees
and expenses for licensing or registration to market the (*) in the U.S. and in
world markets shall be (*).

C. Safety Stock. At ABBOTT's request, SPECTRX shall maintain and store a safety
stock of key raw materials and (*) components sufficient to produce that
quantity of (*)s in ABBOTT's (*) forecast. In order to minimize the cost of
maintaining safety stock, SPECTRX will be allowed a reasonable amount of time to
adjust its safety stock as new forecasts are issued by ABBOTT in accordance with
Section I-D or as requested in writing by ABBOTT. (*).

D. Termination. In the event of termination of the Supply Agreement, ABBOTT will
be (*)

E. Manufacturing Changes. SPECTRX and ABBOTT shall establish a "Change
Notification Protocol" covering changes in the manufacturing process of (*)s,
including but not limited to any changes that affect written quality plans for
production or written quality procedures respecting same, as well as any changes
outside the validated level or procedure, in manufacturing procedures, component
part or raw materials vendors or manufacturing sites. ABBOTT will have final
approval of such Change Notification Protocol. Under the Change Notification
Protocol, manufacturing changes will be classified, as determined by ABBOTT,
into three categories: 1) ABBOTT written approval required prior to
implementation, 2) SPECTRX notification to ABBOTT prior to implementation, and
3) no notification required. For those changes requiring approval by ABBOTT,
only upon notice of written approval from ABBOTT may SPECTRX incorporate such
change into the manufacturing process (such approval shall not be unreasonably
withheld and, if forthcoming, shall be delivered in a timely manner). All
changes to the design and manufacturing process will be made in accordance with
SPECTRX's written change control procedures incorporated into the Change
Notification Protocol, and in compliance with 21 CFR ss. 820.40. In the event
such manufacturing change was due to SPECTRX and it has an impact on product

Appendix 5.2 (*) Confidential treatment requested pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission.
Omitted portions have been filed separately with the Commission.

                                       7
<PAGE>   49

registrations, SPECTX shall reimburse ABBOTT for the costs of any such product
registration amendment, notification or resubmission as a result of such
manufacturing change. In the event such manufacturing change was due to ABBOTT
and it has an impact on product registrations, ABBOTT shall pay for the costs of
any such product registration amendment, notification or resubmission as a
result of such manufacturing change. Abbott shall be responsible for the cost of
any inventory obsoleted by design or process changes requested by Abbott.

F. Manufacturing Site. Abbott shall have approval of SPECTRX's choice of
manufacturing site and any future changes, which approval shall not be
unreasonably withheld. In the event SPECTRX changes the manufacturing site for
reasons other than force majeure and such relocation has an impact on product
registrations, SPECTRX shall reimburse ABBOTT for the costs of any such product
registration amendment, notification or resubmission.

G. Manufacturing Capacity. SPECTRX shall maintain manufacturing capacity
(facilities, support personnel, equipment and tooling) of at least (*) above the
(*) forecast provided by ABBOTT.

H. Failure to Supply. Failure by SPECTRX to deliver by the requested delivery
date (*), will constitute a "Failure to Supply," unless such failure is due to
changes in design or process required by Abbott or due to ABBOTT's failure to
timely approve requested changes to the design and manufacturing process
requested by SPECTRX as described in Section II-E. Upon written notification by
ABBOTT of Failure to Supply, Abbott may (i) agree to a future delivery date,
(ii) terminate the Supply Agreement or (iii) require SPECTRX to assist ABBOTT,
and at ABBOTT's sole discretion, to allow ABBOTT to manufacture (*)s itself or
by a designated Third Party by transferring all know-how, technology, trade
secrets and patent rights necessary to manufacture (*)s ("(*) Technology")
thereby enabling ABBOTT to manufacture (*)s. To the extent required beyond
ABBOTT's licenses set forth in the Agreement to implement ABBOTT's right to
manufacture and sell such (*)s, SPECTRX hereby grants to ABBOTT, without the
necessity of any further documentation, a non-exclusive, royalty-free,
irrevocable worldwide manufacturing license. The license will include access to
SPECTRX's (*) Technology to make and have made such (*)s. In the event any (*)
Technology is owned by, controlled by or licensed from a Third Party, to the
extent required to implement ABBOTT's right to manufacture (*)s, SPECTRX shall
use commercially reasonable efforts to obtain from the owners, the right for
ABBOTT to use said (*) Technology for the production of (*)s. In addition,
SPECTRX shall reasonably assist ABBOTT in the transfer and the start-up of
manufacturing operations for such (*)s and shall make the necessary plans,
formulations and manufacturing processes and

Appendix 5.2 (*) Confidential treatment requested pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission.
Omitted portions have been filed separately with the Commission.

                                       8
<PAGE>   50

procedures available to ABBOTT. Further, SPECTRX shall grant ABBOTT access to
its regulatory files and shall supply technical or regulatory assistance as is
reasonably requested by ABBOTT. Any tooling, equipment and component parts owned
or committed to be purchased by SPECTRX exclusively for the manufacture of the
(*)s will be sold to ABBOTT at SPECTRX's asset value for equipment and (*) for
raw materials and WIP. Within thirty (30) days of the first anniversary of
ABBOTT's shipment of (*)s manufactured by Abbott, if SPECTRX can demonstrate in
reasonable detail, its ability to resume manufacturing of the (*)s in accordance
with the Supply Agreement, SPECTRX may resume manufacturing within a mutually
agreed to time frame, with tooling, equipment and component parts sold back to
SPECTRX and reasonable assistance provided by ABBOTT. ABBOTT will not
unreasonably deny SPECTRX the right to resume manufacturing.

I. Warranty. SpectRx will warrant the (*)s for the same period of time ABBOTT
warrants the (*)s to its customers up to (*) from date of delivery to ABBOTT's
customers or (*) from delivery to ABBOTT, whichever comes first, for failure to
meet the (*) Specifications or SPECTRX's internal manufacturing specifications
due to defects in material (other than design) or workmanship, and will replace,
free of charge, any (*) component (*), that fails such warranty. Any spare parts
and shipping expenses associated with warranty work will be at SPECTRX's
expense. Abbott will return all (*)s to SpectRx which it wants replaced under
warranty, within thirty (30) days of return by customer and no later than thirty
(30) days after expiration of warranty. (*)

                             III. REGULATORY MATTERS

A. (*) Recalls. Should either party's actions or any governmental action
attributable to a (*) require: (a) the recall, destruction or withholding from
market of any Product sold by ABBOTT ("Recall") or (b) institution of a field
correction of any Product containing a (*) sold by ABBOTT ("Field Correction"),
SPECTRX shall bear the costs and expenses of such Recall or Field Correction to
the extent such Recall or Field Correction is attributable to SPECTRX's
manufacture of the (*)s, and ABBOTT shall bear the costs and expenses of such
Recall or Field Correction to the extent such Recall or Field Correction is not
attributable to SPECTRX's manufacture of the (*)s. Such Recall or Field
Correction shall be based solely on ABBOTT's policies and historical practices.

B. Site Inspections. SPECTRX shall allow representatives of ABBOTT to tour and
inspect all facilities utilized by SPECTRX in manufacturing, testing, packaging
and shipment of (*)s sold to ABBOTT under the Supply Agreement. During such
visits (and other reasonable times), SPECTRX shall provide reasonable access to
its manufacturing quality control documentation and shall cooperate with such

Appendix 5.2 (*) Confidential treatment requested pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission.
Omitted portions have been filed separately with the Commission.

                                       9
<PAGE>   51

representatives in every reasonable manner. Except in extreme circumstances,
ABBOTT will provide a minimum of five (5) business days notice of any such
inspections. All such inspections shall be arranged by SpectRx, conducted during
SPECTRX's normal business hours and in the presence of a representative of
SpectRx.

C. Customer Complaints. In the event that ABBOTT or SPECTRX receives any
customer complaint regarding ABBOTT's Products containing SPECTRX (*)s, the
complaint shall be evaluated and investigated by ABBOTT. If ABBOTT determines
that the complaint is related to SPECTRX's (*), then SPECTRX shall assist ABBOTT
in follow-up correction of Product complaints, at ABBOTT's reasonable request,
should said complaint be the result of the (*).

                            IV. TERM AND TERMINATION

A. Term. The Supply Agreement shall become effective upon full execution of the
Supply Agreement and, unless terminated early in accordance with the terms of
the Supply Agreement, the Supply Agreement shall remain in effect for (*).
Thereafter, the Supply Agreement shall automatically be renewed annually unless
SPECTRX is not meeting its obligations under the Supply Agreement or the Supply
Agreement is terminated as set forth below.

B. Early Termination. The Supply Agreement may be terminated at any time as set
forth below.

         1.       The Supply Agreement, and any license(s) granted thereunder,
                  will terminate immediately upon the termination of the
                  Agreement or upon ABBOTT's loss of rights to all Continuous
                  Products pursuant to the Agreement.
         2.       If either party is in default of any material obligation
                  imposed upon such party under the Supply Agreement, such party
                  shall use reasonable efforts to remedy such default as soon as
                  possible, and if such default is not remedied within a period
                  of sixty (60) days after written notice thereof is given to
                  the defaulting party by the other party, then the other party
                  may terminate the Supply Agreement immediately by giving
                  written notice of termination to the defaulting party.
         3.       If SPECTRX is not cost competitive or does not elect to change
                  the Transfer Price, as set forth in Section 5.2 of the Third
                  Amendment, which determination may be made at the end of each
                  contract year of the Supply Agreement. Contract year shall
                  mean each twelve (12) month period starting with the effective
                  date of the Supply Agreement.

Appendix 5.2 (*) Confidential treatment requested pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission.
Omitted portions have been filed separately with the Commission.

                                       10
<PAGE>   52

       4. Other standard reasons for early termination (e.g. bankruptcy).

                               V. INDEMNIFICATION

In addition to indemnification obligations as set forth in Article 11 of the
Agreement, SPECTRX shall indemnify ABBOTT against Third Party actions brought
against ABBOTT regarding product liability related to SPECTRX's, its
subcontractors' and its Third Party manufacturer's actions or omissions in
connection with manufacture of (*)s.

                                VI. MISCELLANEOUS

Articles similar to Article 12 Limitation of Liability and Remedies, Article 13
Confidentiality, and Article 14 Miscellaneous of the Agreement will be
incorporated into the Supply Agreement.

Appendix 5.2 (*) Confidential treatment requested pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission.
Omitted portions have been filed separately with the Commission.

                                       11
<PAGE>   53

                                  Appendix 5.5
                        REDEEMABLE CONVERTIBLE PREFERRED
                            STOCK PURCHASE AGREEMENT

         THIS AGREEMENT is made as of November 30, 1999 between SPECTRX, INC., a
Delaware corporation located at 6025A Unity Drive, Norcross, Georgia 30071 (the
"Company"), and ABBOTT LABORATORIES, an Illinois corporation located at 100
Abbott Park Road, Abbott Park, Illinois 60064 (the "Purchaser").

                                    SECTION 1

                    AUTHORIZATION AND SALE OF PREFERRED STOCK

         1.1      AUTHORIZATION. The Company will prior to the First Closing (as
defined below) authorize the sale and issuance of up to 525,000 shares of its
Redeemable Convertible Preferred Stock (the "Preferred Shares"), having the
rights, privileges and preferences as set forth in the Certificate of
Designations (the "Designations") in the form attached to this Agreement as
Exhibit A.

         1.2      SALES OF PREFERRED. Subject to the terms and conditions
hereof, the Company will issue and sell to the Purchaser and the Purchaser will
buy from the Company a total of 525,000 Preferred Shares, with 275,000 Preferred
Shares to be purchased and sold at the First Closing and 250,000 Preferred
Shares to be purchased and sold at the Second Closing (as defined below), for
the purchase price of $10.00 per share.

                                    SECTION 2

                             CLOSING DATES; DELIVERY

         2.1      CLOSING DATE. The first closing of the purchase and sale of
the Preferred Shares hereunder (the "First Closing") shall be held at the
executive offices of the Company or at such other place upon which the Company
and the Purchaser shall agree. The First Closing shall occur simultaneously with
or immediately after the execution and delivery of this Agreement by the
Purchaser and the Company, which the parties intend to execute and deliver
coincident with the execution and delivery of the Development Amendment (defined
in Section 5.6 below). The second closing of the purchase and sale of Preferred
Shares hereunder (the "Second Closing") shall be held at the executive offices
of the Company on January 3, 2000, or such other time and place upon which the
Purchaser and Company shall agree.

         2.2      DELIVERY. At the First Closing, the Company will deliver to
the Purchaser a certificate, registered in the Purchaser's name, representing
275,000 Preferred Shares to be purchased by the Purchaser at the First Closing,
against payment of the purchase price therefor by wire transfer per the
Company's wiring instructions. At the

                                       1
<PAGE>   54

Second Closing, the Company will deliver to Purchaser a certificate registered
in the Purchaser's name, representing 250,000 Preferred Shares to be purchased
by the Purchaser at the Second Closing, against payment of the purchase price
therefor by wire transfer per the Company's wiring instructions.

                                    SECTION 3

                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company represents and warrants to the Purchaser as follows:

         3.1      ORGANIZATION AND STANDING; ARTICLES AND BY-LAWS. The Company
is a corporation duly organized and validly existing under, and by virtue of,
the laws of the State of Delaware and is in good standing under such laws. The
Company has requisite power and authority to own and operate its properties and
assets, and to carry on its business as presently conducted and as proposed to
be conducted. The Company is not presently qualified to do business as a foreign
corporation in any jurisdiction other than Georgia, and the failure to be so
qualified will not have a material adverse effect on the Company's business as
now conducted or as now proposed to be conducted.

         3.2      CORPORATE POWER. The Company has all requisite legal and
corporate power and authority to execute and deliver this Agreement and at the
First Closing to execute and deliver the agreements set forth as Exhibits hereto
(collectively referred to with this Agreement as the "Agreements"), and at each
of the First Closing and Second Closing to sell and issue the Preferred Shares
to be issued and sold at such respective closings, to issue the Common Stock
issuable upon conversion of the Preferred Shares and to carry out and perform
its obligations under the terms of the Agreements.

         3.3      SUBSIDIARIES. The Company has no subsidiaries or affiliated
companies and does not otherwise own or control, directly or indirectly, any
equity interest in any corporation, association or business entity, other than
its equity interest in FluorRx, Inc.

         3.4      CAPITALIZATION. The authorized capital stock of the Company
consists or will, upon the filing of the Certificate of Designations, consist of
50,000,000 shares of Common Stock, and 5,000,000 shares of Preferred Stock, of
which 525,000 shall be designated as Redeemable Convertible Preferred Stock
pursuant to the Certificate of Designations (the "Preferred Stock"). As of
November 29, 1999, there are 8,048,856 shares of Common Stock, issued and
outstanding and no other shares of capital stock which are issued and
outstanding. As of November 29, 1999, there are options outstanding issued by
the Company to purchase an aggregate of 1,121,789 shares of Common Stock. All of
the outstanding shares of Common Stock are duly authorized, validly issued,
fully paid and nonassessable, and were issued in compliance with applicable
federal and state securities laws. The Preferred Shares, when issued pursuant to
the terms of this Agreement, will be duly authorized, validly issued, fully

                                       2
<PAGE>   55

paid and nonassessable. The Company has reserved 559,225 shares of Common Stock
for issuance upon conversion of the Preferred Stock, and 1,303,112 shares of its
Common Stock for issuance pursuant to its stock option plans. Except as set
forth above, there are no options, warrants or other rights (including
conversion or pre-emptive rights) or agreements outstanding to purchase any of
the Company's authorized and unissued capital stock.

         3.5      AUTHORIZATION. All corporate action on the part of the
Company, its officers, directors and stockholders necessary for the
authorization, execution, delivery and performance of the Agreements by the
Company, the authorization, sale, issuance and delivery of the Preferred Shares
(and the Common Stock issuable upon conversion of the Preferred Stock) and the
performance of all of the Company's obligations under the Agreements has been
taken or will be taken prior to the Closing. The approval of the transactions
provided for herein will constitute approval of Abbott becoming an interested
stockholder under Section 203 of the Delaware General Corporation Law, to the
extent applicable. The Agreements, when executed and delivered by the Company,
shall constitute valid and binding obligations of the Company, enforceable in
accordance with their terms, and subject to the laws of general application
relating to bankruptcy, insolvency and the relief of debtors and rules of law
governing specific performance, injunctive relief or other equitable remedies.
The Preferred Shares, when issued in compliance with the provisions of this
Agreement, will be validly issued, will be fully paid and nonassessable, and
will have the rights, preferences and privileges described in the Certificate of
Designations; the Common Stock issuable upon conversion of the Preferred Stock
has been duly and validly reserved and, when issued in compliance with the
provisions of this Agreement and the Certificate of Designations, will be
validly issued, and will be fully paid and nonassessable; and the Preferred
Stock and such Common stock will be free of any liens or encumbrances, assuming
the Purchaser takes the Preferred Shares with no notice thereof, other than any
liens or encumbrances created by or imposed upon the holders; provided, however,
that the Preferred Stock (and the Common Stock issuable upon conversion thereof)
may be subject to restrictions on transfer under state and/or federal securities
laws as set forth herein.

         3.6      REPORTS AND FINANCIAL STATEMENTS. The Company has delivered to
the Purchaser prior to the execution of this Agreement a copy of each
registration statement, schedule, report, proxy statement or information
statement it has filed with the Securities and Exchange Commission ("SEC") since
December 31, 1998, without limitation, the Company's Annual Report on Form 10-K
for the year ended December 31, 1998, the Company's Quarterly Reports on Form
10-Q for the quarters ended March 31, 1999 and June 30, 1999, the definitive
proxy statement for the Company's 1999 annual meeting of shareholders and any
Current Reports on Form 8-K (as such documents have since the time of their
filing been amended or supplemented, the "SEC Reports"). The SEC Reports (a)
complied as to form in all material respects with the requirements of the
Securities Exchange Act of 1934, as amended and (b) did not contain any untrue
statement of a material fact or omit to state a material fact required

                                       3
<PAGE>   56

to be stated therein or necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading. The
audited consolidated financial statements and unaudited interim consolidated
financial statements (including, in each case, the notes, if any, thereto)
included in the SEC Reports complied as to form in all material respects with
the published rules and regulations of the SEC with respect thereto, were
prepared in accordance with generally accepted accounting principles applied on
a consistent basis during the periods involved (except as may be indicated
therein or in the notes thereto and except with respect to unaudited statements
as permitted by Form 10-Q of the SEC) and fairly present (subject, in the case
of the unaudited interim financial statements, to year-end audit adjustments and
the absence of footnotes) the consolidated financial position of the Company as
at the respective dates thereof and the consolidated results of their operations
and cash flow for the respective periods then ended.

                                    SECTION 4

                 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

         The Purchaser represents and warrants to the Company with respect to
the purchase of the Preferred Shares as follows:

         4.1      EXPERIENCE. It has substantial experience in evaluating and
investing in private placement transactions of securities in companies similar
to the Company so that it is capable of evaluating the merits and risks of its
investment in the Company and has the capacity to protect its own interests.

         4.2      INVESTMENT. It is acquiring the Preferred Shares and the
Common Stock underlying the Preferred Stock for investment for its own account,
not as a nominee or agent, and not with the view to, or for resale in connection
with, any distribution thereof. It understands that the Preferred Shares to be
purchased and the Common Stock underlying the Preferred Stock have not been, and
will not be, registered under the Securities Act of 1933, as amended (the
"Securities Act") by reason of a specific exemption from the registration
provisions of the Securities Act, the availability of which depends upon, among
other things, the bona fide nature of the investment intent and the accuracy of
such Purchaser's representations as expressed herein.

         4.3      RULE 144. It acknowledges that the Preferred Stock and the
underlying Common Stock must be held indefinitely unless subsequently registered
under the Securities Act or unless an exemption from such registration is
available. It is aware of the provisions of Rule 144 promulgated under the
Securities Act which permit limited resale of shares purchased in a private
placement subject to the satisfaction of certain conditions, including, among
other things, the existence of a public market for the shares, the availability
of certain current public information about the Company, the resale occurring
not less than one year after a party has purchased and paid for the security to
be sold, the sale being effected through a "broker's transaction" or in

                                       4
<PAGE>   57

transaction directly with a "market maker" and the number of shares being sold
during any three-month period not exceeding specified limitations.

         4.4      NO PUBLIC MARKET. It understands that no public market now
exists for the Preferred Shares and that the Company has made no assurances that
such a public market will ever exist.

         4.5      ACCESS TO DATA. It has had an opportunity to discuss the
Company's business, management and financial affairs with its management. It has
also had an opportunity to ask questions of officers of the Company, which
questions were answered to its satisfaction. It understands that such
discussions, as well as any written information issued by the Company, were
intended to describe certain aspects of the Company's business and prospects but
were not a thorough or exhaustive description.

         4.6      AUTHORIZATION. This Agreement when executed and delivered by
such Purchaser will constitute a valid and legally binding obligation of the
Purchaser, enforceable in accordance with its terms, subject to laws of general
application relating to bankruptcy, insolvency and the relief of debtors and
rules of law governing specific performance, injunctive relief or other
equitable remedies.

         4.7      BROKERS OR FINDERS. The Company has not, and will not, incur,
directly or indirectly, as a result of any action taken by such Purchaser, any
liability for brokerage or finders' fees or agents' commissions or any similar
charges in connection with this Agreement.

         4.8      TAX LIABILITY. It has reviewed with its own tax advisors the
federal, state, local and foreign tax consequences of this investment and the
transactions contemplated by this Agreement. It relies solely on such advisors
and not on any statements or representations of the Company or any of its
agents. It understands that it (and not the Company) shall be responsible for
its own tax liability that may arise as a result of this investment or the
transactions contemplated by this Agreement.

         4.9      LEGEND. It is understood that the certificates evidencing the
Preferred Shares, and shares of Common Stock to be issued upon conversion of the
Preferred Shares, will bear the following legend: "THESE SECURITIES HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THEY MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN
EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS
SOLD PURSUANT TO RULE 144 OF SUCH ACT."

                                       5
<PAGE>   58

                                    SECTION 5

                       CONDITIONS TO CLOSING OF PURCHASER

         The Purchaser's obligation to purchase the Preferred Shares at the
First Closing is, at the option of the Purchaser, subject to the fulfillment of
the following conditions:

         5.1      REPRESENTATIONS AND WARRANTIES CORRECT. The representations
and warranties made by the Company in Section 3 hereof shall be true and correct
in all material respects as of the First Closing.

         5.2      COVENANTS. All covenants, agreements and conditions contained
in this Agreement to be performed by the Company on or prior to the First
Closing shall have been performed or complied with in all material respects.

         5.3      COMPLIANCE CERTIFICATE. Should the Closing occur as of a date
other than the date of this Agreement, the Company shall have delivered to the
Purchaser a certificate of the Company executed by the President of the Company,
dated as of the Closing certifying to the fulfillment of the conditions
specified in Sections 5.1 and 5.2 of this Agreement.

         5.4      CERTIFICATE OF DESIGNATIONS. The Designations shall have been
filed with the Delaware Secretary of State.

         5.5      REGISTRATION RIGHTS AGREEMENT. The Company and the parties
listed thereon shall have executed and delivered the First Amendment to the
Amended Registration Rights Agreement of the Company in substantially the form
attached hereto as Exhibit B.

         5.6      AMENDMENT TO RESEARCH & DEVELOPMENT AGREEMENT. The Company
shall have entered into the Amendment to that certain Research & Development and
License Agreement dated October 10, 1996, between the Company and the Purchaser
(the "Development Amendment").

         5.7      SECRETARY'S CERTIFICATE. The Company shall have delivered to
the Purchaser a certificate of the Company executed by the Secretary of the
Company, dated as of the Closing, certifying (i) resolution adopted by the Board
of Directors of the Company authorizing the execution of the Agreement, the
filing of the Certificate of Designation and the transactions contemplated
hereby; (ii) the Certificate of Incorporation and Bylaws of the Company, each as
amended, and copies of the third party consents, approvals and filings required
in connection with the consummation of the transactions contemplated by the
Agreement; and (iii) such other documents relating to the transactions
contemplated by the Agreement.

                                       6
<PAGE>   59

         The Purchaser's obligation to purchase the Preferred Shares at the
Second Closing is, at the option of the Purchaser, subject to the fulfillment,
as of the Second Closing, of the following conditions:

         5.1A     PRIOR CONDITIONS. The fulfillment, as of the Second Closing,
of the conditions set forth in Sections 5.1, 5.2 and 5.3 hereof.

         5.2A     DEVELOPMENT PROGRAM NOTIFICATION. Purchaser will have not
delivered the "Development Program Notification" (as same is defined in Section
2.6 of the Development Amendment) to the Company on or prior to December 10,
1999.

         5.3A     TERMINATION OF 1996 AGREEMENT. On or prior to December 10,
1999, the Agreement (as defined in the Development Amendment) will not have been
terminated, nor will Purchaser have given written notice prior to December 10,
1999 electing to terminate such Agreement.

                                    SECTION 6

                        CONDITIONS TO CLOSING OF COMPANY

         The Company's obligation to sell and issue the Preferred Shares at the
First Closing is, at the option of the Company, subject to the fulfillment as of
the First Closing of the following conditions:

         6.1      REPRESENTATIONS. The representations made by the Purchaser in
Section 4 hereof shall be true and correct when made, and shall be true and
correct on the Closing.

         6.2      CERTIFICATE OF DESIGNATIONS. The Designations shall have been
filed with the Delaware Secretary of State.

         6.3      AMENDMENT TO RESEARCH & DEVELOPMENT AGREEMENT. The Purchaser
shall have entered into the Development Amendment.

         6.4      LEGAL MATTERS. All material matters of a legal nature which
pertain to this Agreement, and the transactions contemplated hereby, shall have
been reasonably approved by counsel to the Company.

                  The Company's obligation to sell and issue the Preferred
Shares at the Second Closing is, at the option of the Company, subject to the
fulfillment, at the Second Closing, of the conditions set forth in Sections 6.1
and 6.4 hereof.

                                       7
<PAGE>   60

                                    SECTION 7
                      COVENANT RE: TRANSFER OF COMMON STOCK

         The Purchaser covenants and agrees that it shall not sell, make any
short sale of, loan, grant any option for the purchase of, or otherwise dispose
of any of the shares of Common Stock acquired by Purchaser upon conversion of
any Preferred Shares for a period of one hundred eighty (180) days from the date
of issuance of such shares of Common Stock upon such conversion. Purchaser
agrees that the certificates for shares of Common Stock issued upon conversion
of the Preferred Shares shall bear the following legend: "THESE SECURITIES MAY
NOT BE SOLD, PLEDGED OR OTHERWISE DISPOSED OF PRIOR TO ___________________
[181st day after issuance] BY REASON OF AN AGREEMENT BETWEEN THE COMPANY AND THE
HOLDER OF THE SHARES REPRESENTED BY THIS CERTIFICATE."

                                    SECTION 8
                                  MISCELLANEOUS

         8.1      GOVERNING LAW. This Agreement shall be governed in all
respects by the internal laws of the State of Delaware as applied to agreements
entered into among Delaware residents to be performed entirely within Delaware,
without reference to the principles of conflict of laws under Delaware law.

         8.2      SURVIVAL. The representations, warranties, covenants and
agreements made herein shall survive any investigation made by the Purchaser and
the Closing of the transactions contemplated hereby.

         8.3      SUCCESSORS AND ASSIGNS. Except as otherwise provided herein,
the provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors and administrators of the parties hereto,
provided, however, that the rights of the Purchaser to purchase the Preferred
Stock shall not be assignable without the consent of the Company.

         8.4      ENTIRE AGREEMENT; AMENDMENT. This Agreement and the other
documents delivered pursuant hereto at the Closing constitute the full and
entire understanding and agreement between the parties with regard to the
subjects hereof and thereof, and no party shall be liable or bound to any other
party in any manner by any warranties, representations or covenants except as
specifically set forth herein or therein. Except as expressly provided herein,
neither this Agreement nor any term hereof may be amended, waived, discharged or
terminated other than by a written instrument signed by the party against whom
enforcement of any such amendment, waiver, discharge or termination is sought;
provided, however, that holders of a majority of the Common Stock issued or
issuable upon conversion of the Preferred Stock may, with the Company's prior
written consent, waive, modify or amend on behalf of the Purchaser, any
provision hereof.

                                       8
<PAGE>   61

         8.5      NOTICES, ETC. All notices and other communications required or
permitted hereunder shall be in writing and shall be mailed by registered or
certified mail, postage prepaid, or by facsimile transmission, or otherwise
delivered by hand or by messenger, addressed (a) if to the Purchaser, at the
Purchaser's address set forth above, or at such other address as such Purchaser
shall have furnished to the Company in writing, or (b) if to any other holder of
any shares, at such address as such holder shall have furnished the Company in
writing, or, until any such holder so furnishes an address to the Company, then
to and at the address of the last holder of such shares who has so furnished an
address to the Company, or (c) if to the Company, one copy should be sent to its
address set forth on the cover page of this Agreement and addressed to the
attention of the Corporate Secretary, or at such other address as the Company
shall have furnished to the Purchaser.

                  Each such notice or other communication shall for all purposes
of this Agreement be treated as effective or having been given when delivered if
delivered personally, or, if sent by mail, at the earlier of its receipt or 72
hours after the same has been deposited in a regularly maintained receptacle for
the deposit of the United States mail, addressed and mailed as aforesaid, or if
by facsimile transmission, as indicated by the facsimile imprint date.

         8.6      DELAYS OR OMISSIONS. Except as expressly provided herein, no
delay or omission to exercise any right, power or remedy accruing to any holder
of any shares, upon any breach or default of the Company under this Agreement,
shall impair any such right, power or remedy of such holder nor shall it be
construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring; nor
shall any waiver of any single breach or default be deemed a waiver of any other
breach or default theretofore or thereafter occurring. Any waiver, permit,
consent or approval of any kind or character on the part of any holder of any
breach or default under this Agreement, or any waiver on the part of any holder
of any provisions or conditions of this agreement, must be in writing and shall
be effective only to the extent specifically set forth in such writing. All
remedies, either under this Agreement or by law or otherwise afforded to any
holder, shall be cumulative and not alternative.

         8.7      GEORGIA LEGEND. The Purchaser acknowledges that each
certificate shall bear the following legend: THESE SECURITIES HAVE BEEN ISSUED
OR SOLD IN RELIANCE ON PARAGRAPH 13 OF CODE SECTION 10-5-9 OF THE GEORGIA
SECURITIES ACT OF 1973, AND MAY NOT BE SOLD OR TRANSFERRED EXCEPT IN A
TRANSACTION WHICH IS EXEMPT UNDER SUCH ACT OR PURSUANT TO AN EFFECTIVE
REGISTRATION UNDER SUCH ACT.

         8.8      FURTHER LEGEND. The Purchaser acknowledges that each
certificate shall bear the following legend: "THE CORPORATION WILL FURNISH
WITHOUT CHARGE TO EACH SHAREHOLDER WHO SO REQUESTS A STATEMENT OF THE
DESIGNATIONS, RELATIVE RIGHTS, PREFERENCES AND LIMITATIONS

                                       9
<PAGE>   62

APPLICABLE TO EACH CLASS, AND SERIES WITHIN A CLASS, OF CAPITAL STOCK OF THE
CORPORATION AND THE VARIATIONS IN RIGHTS, PREFERENCES AND LIMITATIONS APPLICABLE
TO EACH SERIES (AND THE AUTHORITY OF THE CORPORATION'S BOARD OF DIRECTORS TO
DETERMINE VARIATIONS FOR FUTURE SERIES)."

         8.9      EXPENSES. The Company and the Purchaser shall bear its own
legal and other expenses with respect to this Agreement.

         8.10     COUNTERPARTS. This Agreement may be executed in counterparts,
each of which shall be enforceable against the parties actually executing such
counterparts, and all of which together shall constitute one instrument.

         8.11     SEVERABILITY. In the event that any provision of this
Agreement becomes or is declared by a court of competent jurisdiction to be
illegal, unenforceable or void, this Agreement shall continue in full force and
effect without said provision; provided that no such severability shall be
effective if it materially changes the economic benefit of this Agreement to any
party.

         8.12     TITLES AND SUBTITLES. The titles and subtitles used in this
Agreement are used for convenience only and are not considered in construing or
interpreting this Agreement.

The foregoing agreement is hereby executed as of the date first above written.

"PURCHASER"                                  "COMPANY"

ABBOTT LABORATORIES                          SPECTRX, INC.

By:                                          By:
    -----------------------------                ---------------------------
Title:                                       Title:
       --------------------------                  -------------------------

                                       10
<PAGE>   63
                            Appendix 5.5 (continued)
                                    EXHIBIT A

                  CERTIFICATE OF DESIGNATIONS, PREFERENCES AND
                RIGHTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK

                                       OF

                                  SPECTRX, INC.

                  SpectRx, Inc., a corporation organized and existing under the
General Corporation Law of the State of Delaware (the "Corporation"),

                  DOES HEREBY CERTIFY:

                  That, pursuant to authority conferred upon the Board of
Directors by the Restated Certificate of Incorporation of the Corporation, and
pursuant to the provisions of Section 151 of Title 8 of the Delaware General
Corporation Law, said Board of Directors by unanimous written consent executed
on __________________, 1999, adopted resolutions providing for the designations,
preferences and relative, participating, optional or other rights, and the
qualifications, limitations or restrictions thereof, of the Redeemable
Convertible Preferred Stock of the Corporation, which resolutions are set forth
below (with the attachment to such resolution being attached hereto as Schedule
1):

                           WHEREAS, Section 151(g) of the Delaware General
                  Corporation Law and the Restated Certificate of Incorporation
                  of SpectRx, Inc. (the Company") authorized the Board of
                  Directors to divide the share of the Company's $.001 par value
                  preferred stock into one or more series and to issue shares of
                  any such series, and to fix and to determine the relative
                  rights and preferences of the shares of such series; and

                           WHEREAS, the Board of Directors of the Company has
                  determined that it is in the best interests of the Company to
                  enter into a Redeemable Convertible Preferred Stock Purchase
                  Agreement by and among the Company and Abbott Laboratories
                  (the "Purchase Agreement"), pursuant to which the Company will
                  issue and sell 525,000 shares of its Redeemable Convertible
                  Preferred Stock for $10.00 per share or the aggregate
                  consideration of $5,250,000;

                                       11
<PAGE>   64

                           NOW, THEREFORE, BE IT RESOLVED, that the Board of
                  Directors of the Company hereby establishes a series of $.001
                  par value preferred stock of the Company to be designated the
                  "Redeemable Convertible Preferred Stock";

                           FURTHER RESOLVED, that the number of shares of
                  Redeemable Convertible Preferred Stock, the voting rights,
                  dividend rights, liquidation rights and conversion rights of
                  the holder of the shares of the Redeemable Convertible
                  Preferred Stock, the provisions for redemption of the shares
                  of Redeemable Convertible Preferred Stock, and all other
                  preferences and relative rights in respect of shares of
                  Redeemable Convertible Preferred Stock, shall be as set forth
                  on Schedule 1 attached to these resolutions.

                  IN WITNESS WHEREOF, the Corporation has caused this
Certificate to be signed by _____________________________, its
________________________, and attested by _______________________________, its
Secretary, this _______ day of __________________, 1999.

                                           SPECTRX, INC.

                                           By:
                                              ---------------------------------
                                              ------------------, -------------
ATTEST:

By:
   ------------------------------------
   _____________________, Secretary

      (Corporate Seal)

                                       12
<PAGE>   65
                            Appendix 5.5 (continued)
                                   Schedule 1

                     DESIGNATIONS, PREFERENCES AND RIGHTS OF
                    REDEEMABLE CONVERTIBLE PREFERRED STOCK OF
                                  SPECTRX, INC.

         Pursuant to authority granted in the certificate of incorporation, as
amended, of SpectRx, Inc. (the "Corporation"), the Board of Directors of the
Corporation has been authorized to issue in series shares of preferred stock and
to designate by resolution the relative preferences and rights of each series
established. By resolution of the Corporation's Board of Directors, the
Corporation has established and fixed the relative preferences and rights of
525,000 shares of preferred stock designated the "Redeemable Convertible
Preferred Stock," each of $0.001 par value.

                  For the purposes of this statement,

                  "Board of Directors" shall mean the board of directors of the
Corporation.

                  "Common Stock" shall mean the common stock, $0.001 par value,
of the Corporation.

                  "Corporation" shall mean SpectRx, Inc.

                  "Holder" means a holder of record of shares of Preferred
Stock.

                  "Issue Date" as to any share of Preferred Stock shall mean the
date of issuance of such share.

                  "Invested Amount" per share of Preferred Stock shall mean
$10.00 (as adjusted for changes in the Preferred Stock by stock split, stock
dividend, or the like occurring after the Original Issue Date).

                  "Junior Stock" means shares of any class of capital stock of
the Corporation ranking subordinate to the Preferred Stock as to both dividends
and distribution of assets upon liquidation.

                  "Original Issue Date" shall mean the initial Issue Date, when
shares of Preferred Stock are first issued.

                  "Preferred Stock" shall mean the 525,000 shares of Redeemable
Convertible Preferred Stock, $0.001 par value, hereby designated.

                  The rights, preferences, privileges and restrictions granted
to and imposed upon the Preferred Stock are as follows:

                                       13
<PAGE>   66

                  (a)      Dividend Rights. The Holders shall be entitled when
and if declared by the Board of Directors to receive dividends out of assets of
the Corporation legally available therefor at an annual rate of $0.60 per share
of Preferred Stock (as adjusted for changes in the Preferred Stock by stock
split, stock dividend, or the like occurring after the Original Issue Date).
Such dividends shall be cumulative and shall accrue whether or not declared by
the Board of Directors of the Corporation. So long as any shares of Preferred
Stock shall be outstanding, the Corporation shall not declare or pay on any
Junior Stock any dividend whatsoever, whether in cash, property or otherwise,
nor shall the Corporation make any distribution on any Junior Stock, nor shall
any Junior Stock be purchased or redeemed by the Corporation, nor shall any
monies by paid or made available for a sinking fund for the purpose of
redemption of Junior Stock, unless all dividends declared or accrued on any
outstanding shares of Preferred Stock shall have been paid or declared and a sum
of money sufficient for the payment thereof set apart.

                  (b)      Liquidation. In the event of any voluntary or
involuntary liquidation, dissolution or winding up of the Corporation, before
any payment or distribution of the assets of the Corporation shall be made to or
set apart for the holders of Junior Stock, the Holders shall be entitled to
receive in respect of their shares of Preferred Stock payment out of assets of
the Corporation of Ten Dollars ($10.00) per share, plus all accrued but unpaid
dividends to the date of final distribution.

                  (c)      Conversion. The Holders shall have conversion rights
in respect of these shares of Preferred Stock as follows (the "Conversion
Rights"):

                           1.       Conversion Rate. The shares of Preferred
Stock shall be convertible, at the times and under the conditions described in
this Section (c) hereafter, at the rate (the "Conversion Rate") of one share of
Preferred Stock into the number of shares of Common Stock that equals the
quotient obtained by dividing the Invested Amount by the Conversion Price
(defined hereinafter). Thus, the number of shares of Common Stock to which a
Holder shall be entitled upon any conversion provided for in this Section (c)
shall be the product obtained by multiplying the Conversion Rate by the number
of shares of Preferred Stock being converted. Such conversion shall be deemed to
have been made on the Conversion Effective Date (defined hereinafter), and such
conversion shall be effected in accordance with the procedures described in
Subsection (c)(3) below. Upon conversion of any shares of Preferred Stock, the
Company shall pay all declared or accrued but unpaid dividends as to such shares
to the Holders thereof to and through the Conversion Effective Date; provided,
however, that the Corporation may, at its option, in lieu of making a full cash
payment of all such declared or accrued but unpaid dividends, make payment
thereof in that number of whole shares of Common Stock calculated by dividing
the total of such declared or accrued but unpaid dividends due such Holders by
the Conversion Price.. The "Conversion Price" shall be equal to the greater of
(I) (*) or (ii) the average of the closing sales price of the Common Stock as
reported by the NASDAQ Stock Market for each day of the thirty (30)-day trading
period that begins on the trading day that is

                                       14
<PAGE>   67

fifteen (15) trading days prior to the date of the receipt by the Corporation of
the Conversion Notice (defined hereinafter).

                           2.       Conversion Right. Each share of Preferred
Stock shall be convertible, at the option of the Holder thereof and without
payment of additional consideration, at any time after the first (1st)
anniversary of the Issue Date in respect of such share at the office of the
Corporation or any transfer agent for the Preferred Stock, into Common Stock at
the then effective Conversion Rate; provided, however, that if on or prior to
such first anniversary, the Corporation shall effect a merger or consolidation
wherein shares of Common Stock are exchanged for securities of another
corporation or for other consideration, then each of the Holders will be
afforded reasonable prior notice of such merger or consolidation and permitted,
if such Holder so chooses, to convert its shares of Preferred Stock into Common
Stock at the then effective Conversion Rate to be effective immediately prior to
the effectiveness of such merger or consolidation.

                           3.       Automatic Conversion. Each outstanding share
of Preferred Stock shall automatically be converted into Common Stock on and as
of December 31, 2004, at the then effective Conversion Rate. Such conversion
shall be automatic, without need for any further action by the Holders and
regardless of whether the certificates representing such shares are surrendered
to the Corporation or its transfer agent; provided, however, that the
Corporation shall not be obligated to issue certificates evidencing the shares
of Common Stock issuable upon such conversion or to pay the dividends payable
upon such conversion unless certificates evidencing such shares of the Preferred
Stock are surrendered to the Corporation in accordance with the procedures
described in Subsection (c)(5) below. Upon the conversion of the Preferred Stock
pursuant to this Subsection (c)(3), the Corporation shall promptly send notice
thereof to each Holder, which notice shall state that certificates evidencing
shares of Preferred Stock must be surrendered at the office of the Corporation
(or of its transfer agent for the Common Stock, if applicable) in the manner
described in Subsection (c)(5) below.

                           4.       Fractional Shares. No fractional shares of
Common Stock shall be issued upon conversion of Preferred Stock, and any shares
of Preferred Stock surrendered for conversion that would otherwise result in a
fractional share of Common Stock shall be redeemed at the then effective
Conversion Price per share, payable as promptly as possible when funds are
legally available therefor.

                           5.       Mechanics of Conversion. Before any Holder
shall be entitled to receive certificates representing the shares of Common
Stock into which shares of Preferred Stock are converted in accordance with
Subsections (c)(2) or (c)(3) above, such Holder shall surrender the certificate
or certificates for such shares of Preferred Stock, duly endorsed, at the office
of the Corporation or of any transfer agent for the Preferred Stock, and shall
give written notice to the Corporation at such office of the name or names in
which such Holder wishes the certificate or certificates for

                                       15
<PAGE>   68
shares of Common Stock to be issued, if different from the name shown on the
books and records of the Corporation. Said conversion notice ("Conversion
Notice") shall also contain such representations of the Holder as may reasonably
be required by the Corporation to the effect that the shares to be received upon
conversion are not being acquired and will not be transferred in any way that
might violate the then applicable securities laws. In the case of a conversion
pursuant to Subsection (c)(2) hereof, the Corporation shall, on the
seventy-fifth (75th) day succeeding receipt by the Corporation of the Conversion
Notice, unless the Corporation elects to redeem such shares of Preferred Stock
in accordance with the provisions of Subsection (d)(2) hereof, issue and deliver
at such office to such Holder, or to the nominee or nominees of such Holder as
provided in the Conversion Notice, a certificate or certificates for the number
of shares of Common Stock to which such Holder shall be entitled as aforesaid.
Such date for issuance and delivery of the shares of Common Stock received upon
conversion of Preferred Stock pursuant to Subsection (c)(2) hereof is hereafter
referred to as the Conversion Effective Date. The person or persons entitled to
receive the shares of Common Stock issuable upon a conversion pursuant to
Subsection (c)(2) hereof shall be treated for all purposes as the record holder
or holders of such shares of Common Stock as of the Conversion Effective Date.
All certificates issued upon the exercise or occurrence of the conversion shall
contain a legend governing restrictions upon such shares imposed by law or
agreement of the Holder or his or its predecessors.

                           6.       Adjustment for Subdivisions or Combinations
of Common Stock. In the event the Corporation at any time or from time to time
after the Original Issue Date effects a subdivision or combination of the
outstanding Common Stock into a greater or lesser number of shares without a
proportionate and corresponding subdivision or combination of the outstanding
Preferred Stock, then and in each such event the Conversion Price (and the
corresponding Conversion Rate) shall be increased or decreased proportionately.

                           7.       No Impairment. The Corporation shall not, by
amendment of its Certificate of Incorporation or Bylaws or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed
hereunder by the Corporation, but shall at all times in good faith assist in the
carrying out of all the provisions of this Section (c) and in the taking of all
such action as may be necessary or appropriate in order to protect the
Conversion Rights of the Holders against impairment.

                           8.       Reservation of Stock Issuable Upon
Conversion. The Corporation shall at all times reserve and keep available out of
its authorized but unissued shares of Common Stock solely for the purpose of
effecting the conversion of the shares of the Preferred Stock such number of its
shares of Common Stock as shall from time to time be sufficient to effect the
conversion of all outstanding shares of the Preferred Stock; and if at any time
the number of authorized but unissued shares of

                                       16
<PAGE>   69

Common Stock shall be insufficient to effect the conversion of all then
outstanding shares of the Preferred Stock, the Corporation shall take such
corporate action as may, in the opinion of its counsel, be necessary to increase
its authorized but unissued shares of Common Stock to such number of shares as
shall be sufficient for such purpose.

                           (d)      Redemption. The Preferred Stock shall be
subject to redemption as follows:

                                    1.       Optional Redemption at Election of
Holders. In the event the Holders elect, by a vote of the Holders of a majority
of the issued and outstanding shares of Preferred Stock, to cause the redemption
of the outstanding shares of Preferred Stock, then such Holders shall so notify
the Corporation by delivery of a written notice to the Corporation on or prior
to the later to occur of (i) September 30, 2002 or (ii) sixty (60) days
subsequent to the date upon which the Company gives the Holders notice (which
notice the Company undertakes to timely issue) of its right to cause such
redemption (which notice may not be given prior to June 1, 2002). Should such
election be timely made, then all shares of Preferred Stock shall be redeemed in
accordance with the following provisions of this Subsection (d)(1). The
Corporation shall, on December 31, 2002, redeem one-half (1/2) of all of the
then outstanding shares of Preferred Stock held by each Holder of Preferred
Stock at a price per share equal to the Redemption Price (hereinafter defined).
If the Corporation has achieved the Revenue Threshold (defined hereinafter),
then the Corporation shall, as soon as reasonably practicable after the
determination of whether the Corporation has met the Revenue Threshold, but in
any event on or prior to January 31, 2004, redeem all of the then outstanding
shares of Preferred Stock at a price per share equal to the Redemption Price. If
the Corporation has not achieved the Revenue Threshold, it shall, no later than
the time for redemption indicated in the immediately prior sentence, redeem
one-half (1/2) of the then outstanding shares of Preferred Stock held by each
Holder of Preferred Stock at a price per share equal to the Redemption Price,
and it shall, on December 31, 2004, redeem all of the then remaining outstanding
shares of Preferred Stock at a price per share equal to the Redemption Price.
Notwithstanding the foregoing, the date for notification of the election of the
Holders to cause a redemption as provided herein, and the dates for redemption
provided herein, may be extended by written agreement of the Corporation and the
Holders of a majority of the outstanding shares of Preferred Stock.

                                    2.       Optional Redemption Upon Conversion
Notice. In addition to the foregoing provisions governing mandatory redemption,
the Corporation may at its option redeem any shares of Preferred Stock which any
Holder has elected to convert to Common Stock by the issuance of a Conversion
Notice by redeeming any or all of such shares at a price per share equal to the
Redemption Price. If the Corporation elects to so redeem any such shares of
Preferred Stock, it shall, by the issuance of a notice to the Holders whose
shares are to be so redeemed, schedule a date for redemption, which date must be
prior to the Conversion Effective Date which would

                                       17
<PAGE>   70

apply to such shares in accordance with the provisions of Subsection (c)(4) were
they to be converted to Common Stock pursuant thereto. On or before each date
scheduled for redemption, each Holder of shares to be redeemed shall surrender
the certificate representing such shares to the Corporation and shall receive
payment of the Redemption Price therefor in cash. If fewer than all of the
shares represented by a surrendered certificate are redeemed, the Corporation
shall issue a new certificate representing the unredeemed shares.

                                    3.       Certain Definitions. As used
herein, "Redemption Price" means $10.00 per share on Preferred Stock (as
adjusted for changes in the Preferred Stock by stock split, stock dividend, or
the like occurring after the Original Issue Date), plus all accrued but unpaid
dividends in respect of such share of Preferred Stock. "Revenue Threshold" shall
mean the recognition of Twenty Million Dollars ($20,000,000) or more of revenue
by the Corporation on a consolidated basis as reflected on the regularly
prepared income statements of the Corporation for the twelve (12) months ended
December 31, 2003.

                  (e)      Voting Rights. Except as set forth in this Section
(e), the Holders shall have no voting rights in respect of the Preferred Stock
except that Holders shall have the right to vote on those matters which, under
the Delaware General Corporation Law, voting by classes of stock is required.

                  So long as any shares of Preferred Stock are outstanding, the
Corporation shall not, without the unanimous consent (given by vote in person or
by proxy at a meeting called for the purpose, or by written consent) of the
Holders of the shares of Preferred Stock then outstanding:

                           (i)      alter or change the annual dividend rate on
the Preferred Stock;

                           (ii)     alter or change the cumulative nature of the
annual dividend rate on the Preferred Stock or the date from which such
dividends are cumulative;

                           (iii)    alter or change the amounts which the
Holders shall be entitled to receive on the liquidation, dissolution or winding
up of the Corporation;

                           (iv)     alter or change the terms relating to time
of payment or price to be paid in connection with the redemption of Preferred
Stock by the Corporation;

                           (v)      alter or change the terms relating to
conversion of Preferred Stock to shares of Common Stock;

                           (vi)     allocate any earned surplus, whether now
existing or hereafter arising, to capital, in accordance with Delaware law, if
the effect thereof would

                                       18
<PAGE>   71
be to reduce the legally available funds for payment of dividends or for
redemption of the Preferred Stock; or

                           (vii)    create or authorize any shares of any class
of capital stock of the Corporation having any preference or priority as to
either dividends or distribution or assets upon liquidation superior to any such
preference or priority of the shares of Preferred stock or reclassify any
securities into shares of such superior stock.

                  (f)      Registration of Transfer. The Corporation shall keep
at its principal office (or such other place as the Corporation reasonably
designates) a register for the registration of Preferred Stock. Upon the
surrender of any certificate representing Preferred Stock at such place, the
Corporation shall, at the request of the record Holder of such certificate,
execute and deliver (at the Corporation's expense) a new certificate or
certificates in exchange therefor representing in the aggregate the number of
shares represented by the surrendered certificate, and the Corporation forthwith
shall cancel such surrendered certificate. Each such new certificate will be
registered in such name and shall represent such number of shares as is
requested by the Holder of the surrendered certificate and will be substantially
identical in form to the surrendered certificate, and dividends shall accrue on
the Preferred Stock represented by such new certificate from the date to which
dividends have been fully paid on such Preferred Stock represented by the
surrendered certificate. The issuance of new certificates shall be made without
charge to the Holders of the surrendered certificates.

                  (g)      Replacement. Upon receipt of evidence reasonably
satisfactory to the Corporation (an affidavit of the registered Holder shall be
satisfactory) of the ownership and the loss, theft, destruction or mutilation of
any certificate evidencing shares of Preferred Stock, and in the case of any
such loss, theft or destruction, upon receipt of indemnity reasonably
satisfactory to the Corporation (provided that if the Holder is a financial
institution, other institutional investor or executive officer of the
Corporation, such Holder's own agreement shall be satisfactory), or, in the case
of any such mutilation upon surrender of such certificate, the Corporation shall
(at its expense) execute and deliver in lieu of such certificate a new
certificate of like kind representing the number of shares represented by such
lost, stolen, destroyed or mutilated certificate and dated the date of such
lost, stolen, destroyed or mutilated certificate, and dividends shall accrue on
the Preferred Stock represented by such new certificate from the date to which
dividends have been fully paid on such lost, stolen, destroyed or mutilated
certificate.

                  (h)      Notices. Any notice required by the provisions hereof
to be given to the Corporation or Holders shall be deemed given if deposited in
the United States Postal Service, postage prepaid, and addressed to the
Corporation at its then principal executive office, or to each Holder at the
address of such Holder appearing on the books of the Corporation.

                                       19
<PAGE>   72
                            Appendix 5.5 (continued)
                                    EXHIBIT B

                               FIRST AMENDMENT TO
               AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

                  This First Amendment to Amended and Restated Registration
Rights Agreement (the "Amendment") amends that certain Amended and Restated
Registration Rights Agreement dated as of October 21, 1996 (the "Agreement") by
and among SPECTRX, INC., a Delaware corporation (the "Company") and the holders
of Registrable Securities (as such term is defined in the Agreement).

                              W I T N E S S E T H:

                  WHEREAS, the Company has determined to issue and sell to
Abbott Laboratories, an Illinois corporation ("Abbott") shares of a new series
of preferred stock of the Company designated Redeemable Convertible Preferred
Stock ("Preferred Stock"), and as a condition to the obligation of Abbott to
purchase shares of Preferred Stock the Company and Abbott desire to effect an
amendment to the Agreement to provide Abbott with registration rights in respect
of shares of Common Stock of the Company which may be issued upon conversion of
the shares of Preferred Stock to be issued to Abbott by the Company;

                  WHEREAS, the holders of at least a majority of the Registrable
Securities for the benefit of the Company and to induce Abbott to purchase the
shares of Preferred Stock agree to amend the Agreement by entering into this
Amendment;

                  NOW, THEREFORE, in consideration of the mutual promises and
other terms and conditions set forth in the Agreement and in the agreements
pursuant to which Abbott will acquire the Preferred stock referenced above, the
parties hereto agree as follows:

                  1.       Effectiveness of Amendment. The Company and the
holders of Registrable Securities who have executed and delivered this Amendment
below acknowledge and agree that the Agreement is hereby amended by this
Amendment pursuant to the provisions of Section 14 of the Agreement whereby any
provision of the Agreement may be amended with the written consent of the
Company and the holders of a majority of the Registrable Securities then
outstanding, and further acknowledge and agree that such Amendment shall be
binding upon each holder of Registrable Securities then outstanding and each
future holder of all Registrable Securities of the Company.

                  2.       Amendment. The parties hereto agree that the
definition of "Registrable Securities" as contained in Section 2 of the
Agreement is hereby amended and restated as follows:

                                       20
<PAGE>   73
                  "Registrable Securities" shall mean (i) the Common Stock
                  issued upon conversion of the Series A Preferred Stock, (ii)
                  the Common Stock issued upon conversion of the Series A
                  Preferred Stock issued upon exercise of certain warrants
                  issued pursuant to the Note and Warrant Purchase Agreement
                  dated April 6, 1994, (iii) the Common Stock issued upon
                  conversion of the Series A Preferred Stock issued upon
                  exercise of certain warrants issued pursuant to the Note and
                  Warrant Purchase Agreement dated April 29, 1994, (iv) the
                  Common Stock issued upon conversion of the Series A Preferred
                  Stock issued upon exercise of certain warrants issued pursuant
                  to the Note and Warrant Purchase Agreement dated June 15,
                  1994, (v) the Common Stock issued upon conversion of the
                  Series B Preferred Stock, (vi) the Common Stock issued upon
                  conversion of the Series C Preferred Stock, (vii) the Common
                  Stock issuable or issued upon conversion of the Redeemable
                  Convertible Preferred Stock, (viii) the Common Stock which may
                  be issued to Abbott Laboratories pursuant to the Common Stock
                  Purchase Agreement dated November 30, 1999, by and between the
                  Company and Abbott Laboratories, and (ix) any Common Stock or
                  other securities issued with respect to such Series A
                  Preferred Stock, Series B Preferred Stock, Series C Preferred
                  Stock, Redeemable Convertible Preferred Stock or Common Stock;
                  provided, however, that shares of Common Stock or other
                  securities shall only be treated as Registrable Securities if
                  and so long as they have not been (i) sold to or through a
                  broker or dealer or underwriter in a public distribution or a
                  public securities transaction or (ii) sold by a person in a
                  transaction in which their rights under this Agreement are not
                  assigned."

                                       21
<PAGE>   74
                  IN WITNESS WHEREOF, the parties have caused this Agreement to
be duly executed and delivered by their proper and duly authorized officers as
of the date first above written.

                                  SPECTRX, INC.
                                  By:
                                     ------------------------------------------
                                  Title:
                                        ---------------------------------------

                                  HILLMAN MEDICAL VENTURES 1993 L.P.,
                                    a Delaware limited partnership
                                  By:  Hillman/Dover Limited Partnership,
                                          general partner
                                  By:  Wilmington Securities, Inc.,
                                          its sole general partner
                                  By:
                                     ------------------------------------------
                                  Title:
                                        ---------------------------------------

                                  NORO-MOSELEY PARTNERS II, L.P.,
                                    a Georgia limited partnership
                                  By:  Moseley & Company, II,
                                         general partner
                                  By:
                                     ------------------------------------------
                                        Jack R. Kelly, Jr.
                                  Title:  General Partner

                                  ABBOTT LABORATORIES
                                  By:
                                     ------------------------------------------
                                  Title:
                                        ---------------------------------------

                                       22
<PAGE>   75
                                 THIRD AMENDMENT

                            TO THE AGREEMENT BETWEEN

                               ABBOTT LABORATORIES

                                       AND

                                  SPECTRX, INC.

<PAGE>   76
                                TABLE OF CONTENTS

<TABLE>
<S>           <C>                                                                                    <C>
1. INTRODUCTION......................................................................................1
   1.1        Conflict with Agreement................................................................1
   1.2        Modified Provisions....................................................................1
   1.3        Deleted Agreement Provisions...........................................................6
   1.4        Added Appendices.......................................................................7

2. DEFINITIONS.......................................................................................7

3. RESEARCH AND DEVELOPMENT.........................................................................10
   3.1        Continuous Product Research Program...................................................10
   3.2        Research Oversight Committee..........................................................11
   3.3        Completion, Termination or Transfer of the Continuous Product
              Research Program......................................................................11
   3.4        Development Program Notification......................................................13
   3.5        Development Program - Continuous Product..............................................14
   3.6        Development Program - Non-Continuous Product..........................................16
   3.7        ABBOTT Development Program Due Diligence..............................................17
   3.8        Termination of all Programs...........................................................19
   3.9        Reports...............................................................................19
   3.10       R & D Expense Records and Audit.......................................................20

4. SPECTRX CONTINUOUS PRODUCT.......................................................................20
   4.1        Development by SPECTRX................................................................20
   4.2        License to SPECTRX....................................................................21
   4.3        Manufacturing Rights..................................................................22
   4.4        Royalty...............................................................................23
   4.5        Right of First Negotiation - Distribution Rights......................................24
   4.6        Post Election Efforts on ABBOTT's Program.............................................25

5. CONSIDERATION....................................................................................26
   5.1        Milestone Payments....................................................................26
   5.2        Transfer Price - (*)s for Continuous Product..........................................27
   5.3        Royalty - Continuous Product..........................................................27
   5.4        Credits Against Royalties and Transfer Price..........................................27
   5.5        Preferred Stock Purchase..............................................................29
   5.6        (*) Deduction.........................................................................30
</TABLE>

 (*) Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

<PAGE>   77
<TABLE>
<S>                                                                                                    <C>
6.       OTHER LICENSES.................................................................................30
         6.1      (*) Technology and (*)................................................................30
         6.2      (*) Technology........................................................................32
         6.3      (*)s..................................................................................33
         6.4      License Limitation....................................................................33

7.       (*)      ......................................................................................33
         7.1      Payments by ABBOTT....................................................................33
         7.2      (*)...................................................................................34

8.       OTHER MANUFACTURING BY SPECTRX.................................................................34

9.       WAIVER   34

10.      EXISTING AGREEMENT TERMS.......................................................................34

11.      OWNERSHIP OF INTELLECTUAL PROPERTY.............................................................34
         11.1     SPECTRX Continuous Product Research Program Technology................................34
         11.2     ABBOTT Continuous Product Research Program Technology.................................36
         11.3     Joint Continuous Product Research Program Technology..................................37
</TABLE>

Appendix 2.7
         Continuous Product Research Program Specifications

Appendix 4.2
         (*)

Appendix 4.4
         SPECTRX Continuous Product Royalty Rate

Appendix 5.1
         Common Stock Purchase Agreement

Appendix 5.2
         (*) Supply Agreement Terms

Appendix 5.5
         Redeemable Convertible Preferred Stock Purchase Agreement

(*) Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.<PAGE>   1
                                                                     Exhibit 4.6

                           AMENDMENT AGREEMENT NO. 2
                    TO AMENDED AND RESTATED CREDIT AGREEMENT

         THIS AMENDMENT AGREEMENT is made and entered into as of this 3rd day of
December, 1999, by and among WACKENHUT CORRECTIONS CORPORATION, a Florida
corporation (herein called the "Borrower"), BANK OF AMERICA, N.A. (successor in
interest to NationsBank, N.A.) (the "Agent"), as Agent for the lenders (the
"Lenders") party to the Amended and Restated Credit Agreement dated December 18,
1997 among such Lenders, Borrower and the Agent (as amended prior to the date
hereof, the "Agreement") and the Lenders whose names are subscribed hereto.

                                  WITNESSETH:

         WHEREAS, the Borrower, the Agent and the Lenders have entered into the
Agreement pursuant to which the Lenders have agreed to make revolving loans to
the Borrower in the aggregate principal amount of up to $30,000,000 as evidenced
by the Notes (as defined in the Agreement); and

         WHEREAS, as a condition to the making of the loans pursuant to the
Agreement the Lenders have required that all Material Subsidiaries that are
Domestic Subsidiaries of the Borrower guarantee payment of all Obligations of
the Borrower arising under the Agreement; and

         WHEREAS, the Borrower has requested that the Agreement be further
amended and the Agent and the Lenders, subject to the terms and conditions
hereof, are willing to make such amendment, as provided herein;

         WHEREAS, the Borrower's Subsidiary, Wackenhut Corrections (UK), Ltd.
has become a Material Subsidiary and the Borrower has failed to comply on a
timely basis with the requirements of Section 8.19 of the Agreement and,
subject to the receipt of the consent of the Required Lenders, the Borrower
intends to restructure its investments in the United Kingdom as described on
Appendix I attached hereto and by reference made a part hereof and in the
letter from the Borrower to the Agent dated November 30, 1999 (the "UK
Reorganization"); and

         WHEREAS, the Borrower has requested that the Lenders waive the failure
to comply with Section 8.19 described above and to consent to the restructuring
of its United Kingdom investment;

         NOW, THEREFORE, the Borrower, the Agent and the Lenders do hereby
agree as follows:

                  1. DEFINITIONS. The term "Agreement" as used herein and in
         the Loan Documents (as defined in the Agreement) shall mean the
         Agreement as hereinafter amended and modified. Unless the context
         otherwise requires, all terms used herein without definition shall
         have the definition provided therefor in the Agreement.

                  2. AMENDMENTS. Subject to the conditions set forth herein,
         the Agreement is hereby amended as follows, effective as of the date
         hereof:

                                       1
<PAGE>   2
                           (a) The following definition of "Applicable TROL
                  Equity Advances" is added to Section 1.1 of the Agreement:

                                    "'Applicable TROL Equity Advances' means,
                           with respect to any TROL Lease, those equity advances
                           (a) that are incurred by the TROL Lessor under the
                           operative agreements (including trust agreement)
                           relating to such TROL Lease, and (b) the proceeds of
                           which are used by the TROL Lessor to acquire or
                           improve any property that is subject of such lease,
                           or to pay transaction expenses in connection with
                           such lease."

                           (b) The following definition of "Applicable TROL
                  Loans" is added to Section 1.1 of the Agreement:

                                    "'Applicable TROL Loans' means, with respect
                           to any TROL Lease, those loans (a) that are incurred
                           by the TROL Lessor under the operative agreements
                           (including credit agreement) relating to such TROL
                           Lease, and (b) the proceeds of which are used by the
                           TROL Lessor to acquire or improve any property that
                           is subject of such lease, or to pay transaction
                           expenses in connection with such lease.

                           (c) The following definition of "TROL Basic Rent" is
                  added to Section 1.1 of the Agreement:

                                    "'TROL Basic Rent' means, with respect to
                           any TROL Lease, the portion of the rent under such
                           lease that (a) is determined by the amount of TROL
                           Interest and Equity Yield accrued on Applicable TROL
                           Loans and Applicable TROL Equity Advances, and (b) is
                           paid to the TROL Lessor to enable the TROL Lessor to
                           pay such TROL Interest Equity Yield."

                           (d) The definition of "Consolidated Interest Expense"
                  in Section 1.1 of the Agreement is amended in its entirety,
                  so that as amended it shall read as follows:

                                    "'Consolidated Interest Expense' means,
                           with respect to any period of computation thereof,
                           the gross interest expense of the Borrower and its
                           Subsidiaries, including without limitation (i) the
                           current amortized portion of debt discounts to the
                           extent included in gross interest expense, (ii) the
                           current amortized portion of all fees (including
                           fees payable in respect of any Swap Agreement and
                           Letters of Credit) payable in connection with the
                           incurrence of Indebtedness to the extent included in
                           gross interest expense and (iii) the portion of any
                           payments made in connection with Capital Leases
                           allocable to interest expense, in each of the
                           foregoing cases determined on a consolidated basis in
                           accordance with GAAP applied on a Consistent Basis;
                           PROVIDED that Consolidated Interest Expense shall
                           not include payments with respect to the TROL
                           Leases, except that Consolidated Interest Expense
                           shall include payments of TROL Basic Rent."

                                       2
<PAGE>   3
                           (e) The following definition of "TROL Interest and
                  Equity Yield" is added to Section 1.1 of the Agreement.

                                    "'TROL Interest and Equity Yield' means,
                           with respect to any TROL Lease, collectively: (a) the
                           interest accrued on the Applicable TROL Loans (but
                           excluding any interest that is capitalized or paid by
                           the TROL Lessor using the proceeds of any Applicable
                           TROL Loan), and (b) the yield in the nature of
                           interest that is accrued on Applicable TROL Equity
                           Advances (but excluding any yield that is capitalized
                           or paid using the proceeds of any Applicable TROL
                           Equity Advance)."

                            (f) The definition of "TROL Leases" in Section 1.1
                  of the Agreement is amended in its entirety, so that as
                  amended it shall read as follows:

                                    "'TROL Leases' means all tax retention
                           operating lease agreements between the Borrower or
                           any Subsidiary, as lessee, and the TROL Lessor, as
                           amended, supplemented or modified from time to time."

                           (g) The following definition of "TROL Lessor" is
                  added to Section 1.1 of the Agreement:

                                    "'TROL Lessor' means, with respect to any
                           TROL Lease, First Security Bank, N.A., the owner
                           trustee, as lessor, and any successor."

                           (h) Clause (f) of Section 9.7 of the Agreement is
                  amended in its entirety, so that as amended clause (f) shall
                  read as follows:

                                    "(f) other investments, loans or advances
                           (including, without limitation, loans or advances
                           in or to Special Purpose Subsidiaries) not exceeding
                           in the aggregate at any time 12% of Consolidated
                           Total Assets;"

                  3. SUBSIDIARY CONSENTS. Each Subsidiary of the Borrower that
         has delivered a Guaranty to the Agent has joined in the execution of
         this Amendment Agreement for the purpose of (i) agreeing to the consent
         and waiver and the amendments to the Agreement set forth herein and
         (ii) confirming its guarantee of payment of all the Obligations.

                  4. REPRESENTATIONS AND WARRANTIES. The Borrower hereby
         represents and warrants that:

                           (a) the representations and warranties made by
                  Borrower in Article VII of the Agreement are true on and as
                  of the date hereof;

                           (b) There has been no material adverse change in the
                  condition, financial or otherwise, of the Borrower and its
                  Subsidiaries since the date of the most recent financial
                  reports of the Borrower received by each Lender under Section
                  8.1 thereof, other than changes in the ordinary course of
                  business, none of which has been a material adverse change;

                                       3
<PAGE>   4
                           (c) The business and properties of the Borrower and
                  its Subsidiaries are not and have not been adversely affected
                  in any substantial way as the result of any fire, explosion,
                  earthquake, accident, strike, lockout, combination of workers,
                  flood, embargo, riot, activities of armed forces, war or acts
                  of God or the public enemy, or cancellation or loss of any
                  major contracts; and

                           (d) No event has occurred and no condition exists
                  which, upon the consummation of the transaction contemplated
                  hereby, constitutes a Default or an Event of Default on the
                  part of the Borrower under the Agreement, the Notes or any
                  other Loan Document either immediately or with the lapse of
                  time or the giving of notice, or both.

                  5. WAIVER AND CONSENT. Each of the Lenders party to this
         Amendment Agreement hereby (1) waives the Event of Default, together
         with any requirements that the Borrower be assessed the Default Rate,
         by reason of the Borrower's failure to pledge to the Agent (pursuant
         to Section 8.19 of the Agreement) 65% of the capital stock of
         Wackenhut UK, Ltd. provided that (x) the UK Reorganization shall occur
         within 60 days of the date of this Amendment Agreement and (y) the
         Borrower shall pledge to the Agent 65% of the stock of Wackenhut
         Corrections (UK), Ltd. and comply with the other requirements of
         Section 8.19 within 60 days of the date of this Amendment Agreement,
         and (ii) consents to the UK Reorganization.

                  6. CONDITIONS. This Amendment Agreement shall become
         effective upon the Borrower delivering to the Agent eleven (11)
         counterparts of this Amendment Agreement duly executed by the Borrower
         and consented to by each of the Subsidiaries.

                  7. ENTIRE AGREEMENT. This Amendment Agreement sets forth the
         entire understanding and agreement of the parties hereto in relation
         to the subject matter hereof and supersedes any prior negotiations and
         agreements among the parties relative to such subject matter. No
         promise, conditions, representation or warranty, express or implied,
         not herein set forth shall bind any party hereto, and no one of them
         has relied on any such promise, condition, representation or warranty.
         Each of the parties hereto acknowledges that, except as in this
         Amendment Agreement otherwise expressly stated, no representations,
         warranties or commitments, express or implied, have been made by any
         other party to the other. None of the terms or conditions of this
         Amendment Agreement may be changed, modified, waived or canceled
         orally or otherwise, except by writing, signed by the parties required
         by the terms of the Agreement, specifying such change, modification,
         waiver or cancellation of such terms or conditions, or of any
         proceeding or succeeding breach thereof.

                  8. FULL FORCE AND EFFECT OF AGREEMENT. Except as hereby
         specifically amended, modified or supplemented, the Agreement and all
         of the other Loan Documents are hereby confirmed and ratified in all
         respects and shall remain in full force and effect according to their
         respective terms.

                 [Remainder of page intentionally left blank.]

                                       4
<PAGE>   5
         IN WITNESS WHEREOF, the parties hereto have caused this Amendment
Agreement to be duly executed by their duly authorized officers, all as of the
day and year first above written.

                                     BORROWER

                                     WACKENHUT CORRECTIONS CORPORATION

WITNESS:

/s/ David N.T. Watson                By: /s/ John G. O'Rourke
------------------------------           ------------------------------------
                                     Name:  John G. O'Rourke
------------------------------       Title: Senior Vice President, CFO &
                                            Treasurer,
                                            Wackenhut Corrections Corporation

                                       5
<PAGE>   6
                                             GUARANTORS:

                                             WCC RE HOLDINGS, INC.

WITNESS:

/s/ David N.T. Watson
----------------------------------

                                             By: /s/ John G. O'Rourke
                                                 ------------------------------
/s/ Keungling Lee                            Name:  John G. O'Rourke
----------------------------------           Title: Senior Vice President
                                                    WCC Re Holdings, Inc.

                                             BANK OF AMERICA, N.A.
                                             as Agent for the Lenders

                                             By: /s/ John E. Williams
                                                 -------------------------------
                                             Name:  John E. Williams
                                             Title: Managing Director

                                             BANK OF AMERICA, N.A.,
                                             as Lender

                                             By: /s/ John E. Williams
                                                 -------------------------------
                                             Name:  John E. Williams
                                             Title: Managing Director

                                             SCOTIABANC, INC.

                                             By: /s/ Frank F. Sandler
                                                 -------------------------------
                                             Name:  Frank F. Sandler
                                             Title: Relationship Manager

                                             SUNTRUST BANK, SOUTH FLORIDA, N.A.

                                             By: /s/ William H. Crawford
                                                 -------------------------------
                                             Name:  William H. Crawford
                                             Title: Assistant Vice President

                                       6
<PAGE>   7
                                             SOUTHTRUST BANK, NATIONAL
                                             ASSOCIATION

                                             By: /s/ D. Guy Guenthaer
                                                 -------------------------------
                                             Name:  D. Guy Guenthaer
                                             Title: Group Vice President

                                             SUMMIT BANK

                                             By: /s/ Lisa Cohen
                                                 -------------------------------
                                             Name:  Lisa Cohen
                                             Title: Vice President

                                             AMSOUTH BANK

                                             By: /s/
                                                 -------------------------------
                                             Name:
                                             Title:

                                             PARIBAS

                                             By: /s/ Duane Helkowski
                                                 -------------------------------
                                             Name:  Duane Helkowski
                                             Title: Vice President

                                             By: /s/ Scott C. Sergeant
                                                 -------------------------------
                                             Name:  Scott C. Sergeant
                                             Title: Assistant Vice President

                                             HIBERNIA NATIONAL BANK

                                             By: /s/ Troy J. Villafarra
                                                 -------------------------------
                                             Name:  Troy J. Villafarra
                                             Title: Senior Vice President

                                             PNC BANK, N.A.

                                             By: /s/
                                                 -------------------------------
                                             Name:
                                             Title:

                                       7

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