EXHIBIT 10.30

                               AGREEMENT OF MERGER



         This AGREEMENT OF MERGER (the  "Agreement") is made and entered into as
of October 23, 1996  between  LYNX  THERAPEUTICS  INC.,  a Delaware  corporation
("Lynx") and SPECTRAGEN, INC., a Delaware corporation ("Spectragen").

                                    RECITALS

         A. The Board of Directors of  Spectragen  and Lynx believe it is in the
best interests of each company and their respective stockholders that Spectragen
and Lynx combine into a single company through the Delaware  statutory merger of
Spectragen with and into Lynx (the "Merger") and, in furtherance  thereof,  have
approved the Merger.

         B. Pursuant to the Merger,  among other things,  the outstanding shares
of Common Stock of Spectragen ("Spectragen Common Stock"), other than those held
by Lynx,  shall be converted  into shares of Common Stock of Lynx ("Lynx  Common
Stock") as determined herein.

         C. The parties intend, by executing this Agreement,  to adopt a plan of
reorganization within the meaning of Section 368 of the Internal Revenue Code of
1986, as amended (the "Code").

         NOW,  THEREFORE,  in  consideration  of  the  covenants  promises,  and
representations set forth herein, and for other good and valuable  consideration
the parties agree as follows:

1.       THE MERGER

         1.1 Effective Time. As promptly as is reasonably  practicable after the
execution  of this  Agreement,  the parties  hereto shall cause the Merger to be
consummated by filing this Agreement with the Secretary of State of Delaware, in
such  form as  required  by,  and  executed  in  accordance  with  the  relevant
provisions  of,  Delaware  Law (the time of such  filing  being  the  "Effective
Time").  The closing of the  transactions  contemplated  hereby (the  "Closing")
shall take place at the offices of Cooley  Godward  LLP,  Five Palo Alto Square,
3000 El Camino Real,  Palo Alto,  California,  on the date of the Effective Time
(the "Closing Date").

         1.2 The Merger.  At the Effective Time Spectragen  shall be merged with
and into Lynx, the separate  corporate  existence of Spectragen  shall cease and
Lynx  shall  continue  as the  surviving  corporation.  Lynx  as  the  surviving
corporation  after  the  Merger  is  hereinafter  sometimes  referred  to as the
"Surviving Corporation."



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         1.3 Effect of the  Merger.  At the  Effective  Time,  the effect of the
Merger shall be as provided under Delaware Law.  Without limiting the generality
of the foregoing,  and subject thereto,  at the Effective Time all the property,
rights,  privileges,  powers and franchises of Spectragen and Lynx shall vest in
the Surviving Corporation,  and all debts,  liabilities and duties of Spectragen
and Lynx  shall  become  the  debts,  liabilities  and  duties of the  Surviving
Corporation.

         1.4      Articles of Incorporation; Bylaws.

                  (a) Unless otherwise determined by Lynx prior to the Effective
Time, at the Effective  Time the  Certificate  of  Incorporation  of Lynx, as in
effect  immediately  prior to the Effective  Time,  shall be the  Certificate of
Incorporation of the Surviving  Corporation until thereafter amended as provided
by law and such Articles of Incorporation.

                  (b) The Bylaws of Lynx, as in effect  immediately prior to the
Effective  Time,  shall  be  the  Bylaws  of  the  Surviving  Corporation  until
thereafter amended.

         1.5 Directors and Officers.  The directors of Lynx immediately prior to
the Effective time shall be the initial directors of the Surviving  Corporation,
each to hold office in accordance with the Articles of Incorporation  and Bylaws
of the Surviving Corporation,  and the officers of Lynx immediately prior to the
Effective Time shall be the initial  officers of the Surviving  Corporation,  in
each case until their  respective  successors  are duly elected or appointed and
qualified.

         1.6 Manner of Converting Stock. At the Effective Time, by virtue of the
Merger and without any action on the part of Lynx, Spectragen,  or the holder of
any of the following securities:

                  (a)  Conversion  of  Spectragen  Common  Stock.  Each share of
common stock, par value $.001 per share, of Spectragen (the  "Spectragen  Common
Stock") issued and  outstanding  immediately  prior to the Effective Time (other
than any shares of Spectragen  Common Stock to be cancelled  pursuant to Section
1.6(b) and any  Dissenting  Shares (as  defined  and to the extent  provided  in
Section   1.7(a))  will  be  cancelled   and   extinguished   and  be  converted
automatically into the right to receive 1.3 shares of Lynx Common Stock.

                  (b)  Cancellation  of Lynx-Owned and  Spectragen-Owned  Stock.
Each  share  of  Spectragen  Common  and/or  Preferred  Stock  owned  by Lynx or
Spectragen  immediately  prior to the  Effective  Time  shall be  cancelled  and
extinguished without any conversion thereof.

                  (c) Stock  Options.  At the  Effective  Time,  all  options to
purchase Spectragen Common Stock then outstanding under the Amended and Restated
1995 Spectragen Stock

                                       2.
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Option Plan (the  "Spectragen  Stock  Option  Plan") shall be assumed by Lynx in
accordance with Section 2.1.

                  (d) Fractional  Shares.  No fraction of a share of Lynx Common
Stock will be issued,  but in lieu thereof  each holder of shares of  Spectragen
Stock who would  otherwise  be  entitled to a fraction of a share of Lynx Common
Stock  (after  aggregating  all  fractional  shares of Lynx  Common  Stock to be
received by such holder) shall be entitled to receive from Lynx a whole share of
Lynx Common Stock.

         1.7      Dissenting Shares.

                  (a)  Notwithstanding  any  provision of this  Agreement to the
contrary,  any shares of capital  stock of  Spectragen  held by a holder who has
demanded  and  perfected  appraisal  rights for such shares in  accordance  with
Section 262 of the Delaware General Corporation Law and who, as of the Effective
Time, has not effectively withdrawn such appraisal rights ("Dissenting Shares"),
shall not be  converted  into or  represent a right to receive Lynx Common Stock
pursuant to Section 1.6, but the holder  thereof  shall only be entitled to such
rights as are granted by Delaware Law.

                  (b)  Notwithstanding  the provisions of subsection (a), if any
holder of shares of capital  stock of Spectragen  who demands  appraisal of such
shares under  Delaware Law shall  effectively  withdraw the right to  appraisal,
then,  as of the later of the Effective  Time and the  occurrence of such event,
such holder's  shares shall  automatically  be converted into and represent only
the right to receive Lynx Common Stock, without interest thereon, upon surrender
of the certificate representing such shares.

                  (c)  Spectragen  shall  give  Lynx (i)  prompt  notice  of any
written  demands for  appraisal  of any shares of capital  stock of  Spectragen,
withdrawals  of such  demands,  and any other  instruments  served  pursuant  to
Delaware Law and received by Spectragen and (ii) the  opportunity to participate
in all negotiations and proceedings which take place prior to the Effective Time
with respect to demands for appraisal under Delaware Law.  Spectragen shall not,
except  with the prior  written  consent of Lynx,  voluntarily  make any payment
before the  Effective  Time with respect to any demands for appraisal of capital
stock of Spectragen or offer to settle or settle any such demands.

         1.8      Surrender of Certificates.

                  (a) Exchange of Certificates.  As soon as is practicable after
the Effective Time, Lynx shall cause its transfer agent to prepare  certificates
representing the shares of Lynx Common Stock issuable pursuant to Section 1.6 in
exchange  for  outstanding  shares of  Spectragen  common  stock  (the "New Lynx
Certificates").  All Certificates, which prior to the Effective Time represented
shares of  Spectragen  Common  Stock and were  held in  escrow

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pursuant to the Stockholders Agreement (the "Spectragen Certificates"), shall be
transferred  from Cooley  Godward LLP ("the Escrow Agent") for completion of the
exchange.  The  transfer  agent  shall  then  issue  the  appropriate  New  Lynx
Certificates.  The Spectragen Certificates shall then be cancelled. The transfer
agent shall then  redeliver  the New Lynx  Certificates  to the Escrow Agent for
distribution  according to the terms set forth in the Stockholders Agreement and
the applicable stock purchase agreement.

                  (b)  Distributions  With  Respect to  Unexchanged  Shares.  No
dividends or other distributions  declared or made after the Effective Time with
respect to Lynx Common Stock with a record date after the Effective time will be
paid to the holder of any  unsurrendered  Certificate with respect to the shares
of Lynx Common Stock represented  thereby until the holder of record of such New
Lynx Certificate  shall surrender such  Certificate.  Subject to applicable law,
following surrender of any such New Lynx Certificate, there shall be paid to the
record holder of the certificates representing whole shares of Lynx Common Stock
issued in exchange  therefor,  without interest,  at the time of such surrender,
the amount of  dividends  or other  distributions  with a record  date after the
Effective time theretofore paid with respect to such whole shares of Lynx Common
Stock.

                  (c) Transfers of Ownership.  If any  certificate for shares of
Lynx  Common  Stock is to be  issued  in a name  other  than  that in which  the
certificate  surrendered  in  exchange  therefor  is  registered,  it  will be a
condition of the issuance  thereof that the  certificate so surrendered  will be
properly  endorsed and otherwise in proper form for transfer and that the person
requesting  such exchange  will have paid to Lynx or any agent  designated by it
any transfer or other taxes  required by reason of the issuance of a certificate
for shares of Lynx  Common  Stock in any name other than that of the  registered
holder of the  certificate  surrendered,  or established to the  satisfaction of
Lynx or any  agent  designated  by it that  such  tax  has  been  paid or is not
payable.

                  (d) No Liability.  Notwithstanding anything to the contrary in
this Section 1.8, none of the Escrow Agent,  the  Surviving  Corporation  or any
party  hereto  shall be liable to a holder  of  shares of Lynx  Common  Stock or
Spectragen  Common  Stock  for any  amount  properly  paid to a public  official
pursuant to any applicable abandoned property, escheat or similar law.

         1.9 No Further  Ownership Rights in Spectragen Common Stock. All shares
of Lynx  Common  Stock  issued  upon the  surrender  for  exchange  of shares of
Spectragen  Common Stock in accordance with the terms hereof (including any cash
paid  in  respect  thereof)  shall  be  deemed  to  have  been  issued  in  full
satisfaction of all rights pertaining to such shares of Spectragen Common Stock,
and there shall be no further  registration  of  transfers on the records of the
Surviving   Corporation  of  shares  of  Spectragen   Common  Stock  which  were
outstanding  immediately  prior to the Effective  Time.  If, after the Effective
Time,  Certificates  are 

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presented to the Surviving  Corporation for any reason,  they shall be cancelled
and exchanged as provided in this Section 1.

         1.10  Lost,  Stolen  or  Destroyed  Certificates.   In  the  event  any
certificates  evidencing shares of Spectragen Common Stock shall have been lost,
stolen or  destroyed,  the Escrow  Agent shall issue in exchange  for such lost,
stolen or destroyed  certificates,  upon the making of an affidavit of that fact
by the holder thereof,  such shares of Lynx Common Stock and cash for fractional
shares, if any, as may be required pursuant to Section 1.6;  provided,  however,
that Lynx may, in its  discretion  and as a condition  precedent to the issuance
thereof,  require the owner of such lost,  stolen or destroyed  certificates  to
deliver a bond in such sum as it may reasonably  direct as indemnity against any
claim that may be made against  Lynx or the  Exchange  Agent with respect to the
certificates alleged to have been lost, stolen or destroyed.

         1.11 Tax Consequences and Accounting  Treatment.  It is intended by the
parties  hereto that the Merger  shall  constitute a  reorganization  within the
meaning of Section 368 of the Internal Revenue Code of 1986, as amended.

         1.12 Taking of Necessary Action;  Further Action. If, at any time after
the Effective  Time,  any such further action is necessary or desirable to carry
out the purposes of this  Agreement  and to vest in Surviving  Corporation  with
full right, title and possession to all assets,  property,  rights,  privileges,
powers,  and  Franchises of  Spectragen,  the Officers and Directors of Lynx and
Spectragen are fully authorized in the name of their respective corporations, to
take, and will take, all such lawful and necessary action.

2.       STOCK OPTIONS.

         2.1  Assumption of Spectragen  Options by Lynx. At the Effective  Time,
each  outstanding  option to purchase shares of Spectragen  Common Stock (each a
"Spectragen  Option") under the Spectragen Stock Option Plan,  whether vested or
unvested,  shall  be, in  connection  with the  Merger,  assumed  by Lynx.  Each
Spectragen  Option so assumed by Lynx under this  Agreement  shall  continue  to
have,  and be  subject  to,  the same  terms  and  conditions  set  forth in the
Spectragen Stock Option Plan and as provided in the respective option agreements
immediately  prior to the Effective Time, except that (i) such Spectragen Option
shall be  exercisable  only for that number of whole shares of Lynx Common Stock
equal to the  product of the number of shares of  Spectragen  Common  Stock that
were issuable upon exercise of such Spectragen  Option  immediately prior to the
Effective  Time  multiplied  by 1.3,  rounded up to the nearest  whole number of
shares  of Lynx  Common  Stock,  and (ii) the per share  exercise  price for the
shares of Lynx Common  Stock  issuable  upon  exercise of such  assumed  Company
Option shall be equal the exercise price per share of Spectragen Common Stock at
which such Spectragen Option was exercisable  immediately prior to the Effective
Time divided by 1.3,  rounded up to the nearest  whole cent,  all in  accordance
with the rules of 

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Section 424(a) of the Code, and the regulations promulgated thereunder, and such
rules shall apply even with  respect to options  that are not  "incentive  stock
options" (within the meaning of Section 424 of the Code).

         2.2 Form S-8. Lynx will file a  registration  statement on Form S-8 for
the  outstanding   Spectragen  Common  Stock  Options  (that  are  eligible  for
registration on Form S-8) within thirty (30) calendar days after the Closing.

3.       CONDITIONS OF THE MERGER.

         3.1 Conditions to  Obligations of Each Party to Effect the Merger.  The
respective  obligations  of each  party to this  Agreement  to effect the Merger
shall be subject to the  satisfaction  at or prior to the Effective  Time of the
following conditions:

                  (a)  Approvals.  This  Agreement  and  the  Merger  and  other
transactions  contemplated  hereby  shall have been  approved and adopted by the
requisite vote of the  stockholders  of Spectragen and the Board of Directors of
Lynx.

                  (b) No  Injunctions or  Restraints;  Illegality.  No temporary
restraining order,  preliminary or permanent injunction or other order issued by
any court of competent  jurisdiction  or other legal  restraint  or  prohibition
preventing  the  consummation  of the Merger  shall be in effect,  nor shall any
proceeding   brought  by  an  administrative   agency  or  commission  or  other
governmental authority to instrumentality,  domestic or foreign,  seeking any of
the foregoing be pending;  nor shall there be any action taken,  or any statute,
rule, regulation or order enacted, entered, enforced or deemed applicable to the
Merger, which makes the consummation of the Merger illegal.

                  (c)  Qualification for Exemption Under Regulation D. As of the
Effective  Time,  counsel for Lynx shall be satisfied that the Merger  qualifies
for the terms of the exemption  provided by Rule 505 of Regulation D promulgated
under the Securities Act of 1933, as amended.

4.       TERMINATION, AMENDMENT AND WAIVER.

         4.1  Termination.  This  Agreement  may be  terminated  and the  Merger
abandoned at any time prior to the Effective Time:

                  (a)      by mutual consent of Lynx and Spectragen;

                  (b) by any party  hereto if: (i) the Closing has not  occurred
by  December  31,  1996;  (ii) there shall be a final  nonappealable  order of a
federal or state court in effect  preventing  consummation of the Merger;  (iii)
there shall be any action  taken,  or any  statute,  rule,  regulation  or order
enacted,  promulgated  or  issued  or  deemed  applicable  to the  Merger by

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any governmental  entity which would make consummation of the Merger illegal; or
(iv) there shall be any action taken, or any statute,  rule, regulation or order
enacted,  promulgated  or  issued  or  deemed  applicable  to the  Merger by any
governmental  entity, which would render Lynx or Spectragen unable to consummate
the Merger, except for any waiting period provisions.

         Where  action is taken to  terminate  this  Agreement  pursuant to this
Section  4.1, it shall be  sufficient  for such action to be  authorized  by the
Board of Directors (as applicable) of the party taking such action.

         4.2  Effect  of  Termination.  In the  event  of  termination  of  this
Agreement as provided in Section 4.1, this Agreement shall forthwith become void
and there shall be no liability or  obligation on the part of Lynx or Spectragen
or their respective officers, directors or stockholders.

         4.3  Amendment.  This Agreement may be amended by the parties hereto at
any time before or after  approval of matters  presented in connection  with the
Merger by the  stockholders  of those parties  required by applicable  law to so
approve but, after any such  stockholder  approval,  no amendment  shall be made
which by law requires the further  approval of  stockholders  of a party without
obtaining such further approval.

         4.4  Extension;  Waiver.  At any time prior to the  Effective  Time any
party  hereto may, to the extent  legally  allowed,  (i) extend the time for the
performance of any of the obligations or other acts of the other parties hereto,
(ii) waive any inaccuracies in the  representations  and warranties made to such
party contained  herein or in any document  delivered  pursuant hereto and (iii)
waive  compliance  with any of the  agreements or conditions  for the benefit of
such party contained herein.

5.       GENERAL PROVISIONS.

         5.1 Notices. All notices and other communications hereunder shall be in
writing  and shall be deemed  given if  delivered  personally  or by  commercial
delivery  service,  or mailed by  registered or certified  mail (return  receipt
requested) or sent via telecopy to the parties at the following addresses (or at
such other address for a party as shall be specified by like notice):

                           (a)      if to Lynx to:
                           Lynx Therapeutics, Inc.
                           3832 Bay Center Place
                           Hayward, CA 94545
                           Attention:  David W. Martin Jr., M.D.
                           Phone:  (510) 670-9300
                           Fax:  (510) 670-9302


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                           and with a copy to:
                           Cooley Godward LLP
                           5 Palo Alto Square
                           Palo Alto, CA 94306
                           Attention:  James C. Kitch
                           Phone:  (415) 843-5000
                           Fax:  (415) 857-0663

                           (b)      If to Spectragen, to:
                           Spectragen, Inc.
                           3832 Bay Center Place
                           Hayward, CA 94545
                           Attention:  Sam Eletr, Ph.D.

         5.2  Counterparts.  This  Agreement  may be  executed  in  one or  more
counterparts,  all of which shall be considered  one and the same  agreement and
shall become effective when one or more counterparts have been signed by each of
the parties and  delivered  to the other  party,  it being  understood  that all
parties need not sign the same counterpart.

         5.3 Miscellaneous. This Agreement and the documents and instruments and
other  agreements  among the parties hereto (a) constitute the entire  agreement
among the parties with respect to the subject  matter  hereof and  supersede all
prior  agreements and  understandings,  both written and oral, among the parties
with respect to the subject matter  hereof;  (b) are not intended to confer upon
any other person any rights or remedies hereunder; and (c) shall not be assigned
by operation of law or otherwise except as otherwise specifically provided.

         5.4 Governing  Law. This  Agreement  shall be governed in all respects,
including  validity,  interpretation  and  effect,  by the laws of the  State of
Delaware.

         IN WITNESS  WHEREOF,  Lynx and Spectragen have caused this Agreement to
be signed by themselves or their duly authorized respective officers,  all as of
the date first written above.

                                      LYNX THERAPEUTICS, INC.

                                      By:      /s/ David W. Martin, Jr.
                                          --------------------------------------

                                      SPECTRAGEN, INC.

                                      By:      /s/ Sam Eletr
                                          --------------------------------------