
<PAGE>   1
                                                                 EXHIBIT 10.2

                               SUMMIT PARTNERS
                ONE BOSTON PLACE * BOSTON, MASSACHUSETTS 02108
                     TEL 617-742-5500 * FAX 617-742-6138

                                          October 24, 1995


CONFIDENTIAL

Mr. James C. New
1318 East Meetinghouse Road
Lower Gwynedd, PA  19002

Dear Jim:

On behalf of the Board of Directors of American Laboratory Associates, Inc.
(ALA), it is my pleasure to offer you the position of Chief Executive Officer of
the company and a seat on its Board.  You will report to the Board of Directors
assuming full general management responsibility for the company's operations
and will serve at the discretion of the Board in this role.

The Board is delighted to offer you the opportunity to purchase three (3)
percent of common stock at a valuation of the company of $15 million.  The
Board further extends to you the opportunity to borrow up to sixty (60) percent
of the purchase price of the stock under terms approximating market rate.  Our
understanding is that it would be your intent to execute that stock purchase
coincident with your employment by the company.  Additionally, the Board will
execute an option for you on five (5) percent of the company's common stock
subject to the terms of the company's option program at a valuation of $12
million for the company.  The Board believes, as we know you do, that ALA
represents an extraordinary value creation opportunity.  Through stock
ownership, we all share in that opportunity, and we are delighted that the
leadership for ALA's value enhancement will be from you.

Beyond stock ownership, the Board is offering you a significant cash
compensation package beginning with a base salary of $16,666 per month.  In
addition, for calendar 1996, the Board will guarantee you an additional
twenty-five (25) percent of your base salary or $50,000 in incentive
compensation reflecting its expectation that the company will meet its 1996
budget and in acknowledgment that 1997 will be the first budget developed
entirely under your leadership.  An additional twenty-five (25) percent of your
base, or $50,000, is also available, to be paid according to mutually agreed
upon objectives between you and the Board, as well as performance of the
company in excess of budget.  Should the company's performance prove
extraordinary, the Board will consider additional compensation to you.  The
Board will review your base compensation at year-end 1996, while intending
to retain the foregoing bonus structure, less any guarantees.

So far as benefits are concerned, ALA will assume premium costs for the
long-term disability and life policies to be rolled over from Novacare up to a
maximum of $15,000 per annum.  In addition, ALA will assist you in enrolling in
a mutually agreed upon health insurance program, which, we assume, will
ultimately involve your enrollment in a program otherwise offered to other
employees of the company.  You will also be eligible to enroll in all the
normal benefits programs of the company.  We will provide you with additional 
information on the company's benefits programs by separate cover.
<PAGE>   2



Mr. James C. New
October 24, 1995
Page Two

In the event that you are separated from the company, other than for
disability, death or cause, with cause to be defined to our mutual satisfaction
by separate cover, you will receive salary continuation plus benefits for a
period of twelve (12) months.  Salary and benefits continuation will not apply
should you resign from the company, unless that resignation has been requested
by the company for reasons other than for cause, in which case a mutually
satisfactory severance package, if any, will be negotiated.

Each of us on the Board of Directors could not be happier with the prospect of
your joining us as the Chief Executive Officer of ALA.  We share a collective
sense of the extraordinary opportunity our company has to lead its field and,
in so doing, to create extraordinary value for its clients and investors.  We
welcome you and would ask that you signify your acceptance of the terms of this
offer by signing and returning an original copy of this letter to me in the
space provided.  You may retain the second copy for your records.  We will
develop a mutually agreeable starting date for you and look forward to a
prosperous and successful association with you.

                                                  Sincerely,

                                                  /s/ Tom Roberts
                                                  ---------------
                                                  Thomas S. Roberts
                                                  Director

AGREED TO AND ACCEPTED BY:


/s/ James C. New
----------------
James C. New

  10/31/95
----------------
    Date


