Document:

Prepared by MerrillDirect

11/98(R062700)

MASTER LEASE AGREEMENT

(Quasi)

dated as of May 10, 2001 ("Agreement")

 

             THIS AGREEMENT is between General
Electric Capital Corporation (together with its successors and
assigns, if any, "Lessor") and 
Variagenics,
Inc. ("Lessee"). 
Lessor has an office at 401 Merritt 7 
2nd Floor, Norwalk, CT 06856. 
Lessee is a corporation organized and existing under the laws of the
state of DE.  Lessee's mailing address
and chief place of business is 60 Hamphire Street, Cambridge, MA 02139. This
Agreement contains the general terms that apply to the leasing of Equipment
from Lessor to Lessee.  Additional terms
that apply to the Equipment (term, rent, options, etc.) shall be contained on a
schedule ("Schedule").

1.          LEASING:

             (a)         Lessor agrees to lease to Lessee, and
Lessee agrees to lease from Lessor, the equipment ("Equipment")
described in any Schedule signed by both parties.

             (b)        Lessor shall purchase Equipment from the
manufacturer or supplier ("Supplier") and lease it to
Lessee if on or before the Last Delivery Date (specified in the Schedule)
Lessor receives (i) a Schedule for the Equipment, (ii) evidence of insurance
which complies with the requirements of Section 8, and (iii) such other
documents as Lessor may reasonably request. 
Each of the documents required above must be in form and substance
satisfactory to Lessor.  Lessor hereby
appoints Lessee its agent for inspection and acceptance of the Equipment from
the Supplier.  Once the Schedule is
signed, the Lessee may not cancel the Schedule.

2.          TERM, RENT AND PAYMENT:

             (a)         The rent payable for the Equipment and
Lessee's right to use the Equipment shall begin on the earlier of (i) the date
when the Lessee signs the Schedule and accepts the Equipment or (ii) when
Lessee has accepted the Equipment under a Certificate of Acceptance ("Lease
Commencement Date"). 
The term of this Agreement shall be the period specified in the
applicable Schedule.  The word
"term" shall include all basic and any renewal terms.

             (b)        Lessee shall pay rent to Lessor at its
address stated above, except as otherwise directed by Lessor.  Rent payments shall be in the amount set
forth in, and due as stated in the applicable Schedule.  If any Advance Rent (as stated in the
Schedule) is payable, it shall be due when the Lessee signs the Schedule.  Advance Rent shall be applied to the first
rent payment and the balance, if any, to the final rent payment(s) under such
Schedule.  In no event shall any Advance
Rent or any other rent payments be refunded to Lessee.  If rent is not paid within ten (10) days of
its due date, Lessee agrees to pay a late charge of five cents ($.05) per
dollar on, and in addition to, the amount of such rent but not exceeding the
lawful maximum, if any.

             (c)         Lessor shall not disturb Lessee's quiet
enjoyment of the Equipment during the term of the Agreement unless a default
has occurred and is continuing under this Agreement.

 3.         TAXES:

             (a)         If permitted by law, Lessee shall
report and pay promptly all taxes, fees and assessments due, imposed, assessed
or levied against any Equipment (or purchase, ownership, delivery, leasing,
possession, use or operation thereof), this Agreement (or any rents or receipts
hereunder), any Schedule, Lessor or Lessee by any governmental entity or taxing
authority during or related to the term of this Agreement,  including, without limitation, all license
and registration fees, and all sales, use, personal property, excise, gross
receipts, franchise, stamp or other taxes, imposts, duties and charges,
together with any penalties, fines or interest thereon (collectively "Taxes").
Lessee shall have no liability for Taxes imposed by the United States of
America or any State or political subdivision thereof which are on or measured
by the net income of Lessor.  Lessee
shall promptly reimburse Lessor (on an after tax 

basis) for any Taxes charged to or assessed against Lessor.  Lessee shall send Lessor a copy of each
report or return and evidence of Lessees payment of Taxes upon request.

             (b)        Lessee's obligations, and Lessor's
rights and priviledges, contained in this Section 3 shall survive the
expiration or other termination of this Agreement.

4.          REPORTS:

             (a) If any tax or other
lien shall attach to any Equipment, Lessee will notify Lessor in writing,
within ten (10) days after Lessee becomes aware of the tax or lien.  The notice shall include the full
particulars of the tax or lien and the location of such Equipment on the date
of the notice.

             (b) Lessee will deliver
to Lessor Lessees complete financial statements, certified by a recognized firm
of certified public accountants, within ninety (90) days of the close of each
fiscal year of Lessee.  If Lessor
requests, Lessee will deliver to Lessor copies of Lessee's quarterly financial
report certified by the chief financial officer of Lessee, within ninety (90)
days of the close of each fiscal quarter of Lessee.  Lessee will deliver to Lessor all Forms 10-K and 10Q, if any,
filed with the Securities and Exchange Commission within thirty (30) days after
the date on which they are filed.

             (c)         Lessor may inspect any Equipment during
normal business hours after giving Lessee reasonable prior notice.

             (d)        Lessee will keep the Equipment at the
Equipment Location (specified in the applicable Schedule) and will give Lessor
prior written notice of any relocation of Equipment.  If Lessor requests, Lessee will promptly notify Lessor  in writing of the location of any Equipment.

             (e)         If any Equipment is lost or damaged
(where the estimated repair costs would exceed the greater of ten percent (10%)
of the original Equipment cost or ten thousand and 00/100 dollars ($10,000)),
or is otherwise involved in an accident causing personal injury or property
damage, Lessee will promptly and fully report the event to Lessor in writing.

             (f)         Lessee will furnish a certificate of an
authorized officer of Lessee stating that he has reviewed the activities of
Lessee and that, to the best of his knowledge, there exists no default or event
which with notice or lapse of time (or both) would become such a default within
thirty (30)  days after any request by
Lessor.

5.          DELIVERY, USE AND OPERATION:

             (a)         All Equipment shall be shipped directly
from the Supplier to Lessee.

             (b)        Lessee agrees that the Equipment will be
used by Lessee solely in the conduct of its business and in a manner complying
with all applicable laws, regulations and insurance policies, and Lessee shall
not discontinue use of the Equipment

             (c)         Lessee will not move any equipment from
the location specified on the Schedule, without the prior written consent of
Lessor.

             (d)        Lessee will keep the Equipment free and
clear of all liens and encumbrances other than those which result from acts of
Lessor.

             (e)         Lessor shall not disturb Lessees quiet
enjoyment of the Equipment during the term of the Agreement unless a default
has occurred and is continuing under this Agreement.

6.          MAINTENANCE:

             (a)         Lessee will, at its sole expense,
maintain each unit of Equipment in good operating order and repair, normal wear
and tear excepted.  The Lessee shall
also maintain the Equipment in accordance with manufacturers
recommendations.  Lessee shall make all
alterations or modifications required to comply with any applicable law, rule
or regulation during the term of this Agreement.   If Lessor requests, Lessee shall affix plates, tags or other identifying
labels showing ownership thereof by Lessee and Lessor's security interest
therein.  The tags or labels shall be
placed in a prominent position on each unit of Equipment.

             (b)        Lessee will not attach or install
anything on the Equipment that will impair the originally intended function or
use of such Equipment without the prior written consent of Lessor.  All additions, parts, supplies, accessories,
and equipment ("Additions") furnished or attached to any Equipment
that are not readily removable shall become subject to the lien of Lessor.  All Additions shall be made only in
compliance with applicable law.  Lessee
will not attach or install any Equipment to or in any other personal or real
property without the prior written consent of Lessor.

7.          STIPULATED LOSS VALUE:  If for any reason any unit of Equipment becomes worn
out, lost, stolen, destroyed, irreparably damaged or unusable ("Casualty
Occurrences") Lessee shall promptly and fully notify Lessor in
writing.  Lessee shall pay Lessor the
sum of (i) the Stipulated Loss Value (see Schedule) of the affected unit
determined as of the rent payment date prior to the Casualty Occurrence; and
(ii) all rent and other amounts which are then due under this Agreement on the
Payment Date (defined below) for the affected unit.   The Payment Date shall be the next rent payment date after the
Casualty Occurrence.  Upon payment of
all sums due hereunder, the term of this lease as to such unit shall terminate.

8.          INSURANCE:

             (a)         Lessee shall bear the entire risk of any
loss, theft, damage to, or destruction of, any unit of Equipment from any cause
whatsoever from the time the Equipment is shipped to Lessee.

             (b)        Lessee agrees, at its own expense, to
keep all Equipment insured for such amounts and against such hazards as Lessor
may reasonably require.  All such
policies shall be with companies, and on terms, reasonably satisfactory to
Lessor.  The insurance shall include
coverage for damage to or loss of the Equipment, liability for personal
injuries, death or property damage. 
Lessor shall be named as additional insured with a loss payable clause
in favor of Lessor, as its interest may appear, irrespective of any breach of
warranty or other act or omission of Lessee. 
The insurance shall provide for liability coverage in an amount equal to
at least ONE MILLION U.S. DOLLARS ($1,000,000.00) total liability per
occurrence, unless otherwise stated in any Schedule.  The casualty/property damage coverage shall be in an amount equal
to the higher of the Stipulated Loss value or the full replacement cost of the
Equipment.  No insurance shall be
subject to any co-insurance clause.  The
insurance policies shall provide that the insurance may not be altered or
canceled by the insurer until after thirty (30) days written notice to Lessor.  Lessee agrees to deliver to Lessor evidence
of insurance reasonably satisfactory to Lessor.

             (c)         Lessee hereby appoints Lessor as
Lessee's attorney-in-fact to make proof of loss and claim for insurance, and to
make adjustments with insurers and to receive payment of and execute or endorse
all documents, checks or drafts in connection with insurance payments.  Lessor shall not act as Lessees
attorney-in-fact unless Lessee is in default. 
Lessee shall pay any reasonable expenses of Lessor in adjusting or
collecting insurance.  Lessee will not
make adjustments with insurers except with respect to claims for damage to any
unit of Equipment where the repair costs are less than the lesser of ten
percent (10%) of the original Equipment cost or ten thousand and 00/100 dollars
($10,000).  Lessor may, at its option,
apply proceeds of insurance, in whole or in part, to (i) repair or replace
Equipment or any portion thereof, or (ii) satisfy any obligation of Lessee to
Lessor under this Agreement.

9.          RETURN OF EQUIPMENT:

             (a)         At the expiration or termination of
this Agreement or any Schedule, Lessee shall perform any testing and repairs
required to place the units of Equipment in the same condition and appearance
as when received by Lessee (reasonable wear and tear excepted) and in good
working order for the original intended purpose of the Equipment.  If required the units of Equipment shall be
deinstalled, disassembled and crated by an authorized manufacturer's
representative or such other service person as is reasonably satisfactory to
Lessor.  Lessee shall remove installed
markings that are not necessary for the operation, maintenance or repair of the
Equipment.  All Equipment will be cleaned,
cosmetically acceptable, and in such condition as to be immediately installed
into use in a similar environment for which the Equipment was originally
intended to be used.  All waste material
and fluid must be removed from the Equipment and disposed of in accordance with
then current waste disposal laws. 
Lessee shall return the units of Equipment to a location within the
continental United States as Lessor shall direct.  Lessee shall obtain and pay for a policy of transit insurance for
the redelivery period in an amount equal to the replacement value of the
Equipment.  The transit insurance must
name Lessor as the loss payee.  The
Lessee shall pay for all costs to comply with this section (a).

             (b)        Until Lessee has fully complied with the
requirements of Section 9(a) above, Lessee's rent payment obligation and all
other obligations under this Agreement shall continue from month to month
notwithstanding any expiration or termination of the lease term.  Lessor may terminate  the Lessee's right to use the Equipment upon
ten (10) days notice to Lessee.

             (c)         Lessee shall provide to Lessor a
detailed inventory of all components of the Equipment including model and
serial numbers.  Lessee shall also
provide an up-to-date copy of all other documentation pertaining to the
Equipment.  All service manuals, blue
prints, process flow diagrams, operating manuals, inventory and maintenance
records shall be given to Lessor at least ninety (90) days and not more than
one hundred twenty (120) days prior to lease termination.

             (d)        Lessee shall make the Equipment
available for on-site operational inspections by potential purchasers at least
one hundred twenty (120) days prior to and continuing up to lease
termination.  Lessor shall provide
Lessee with reasonable notice prior to any inspection.  Lessee shall provide personnel, power and
other requirements necessary to demonstrate electrical, hydraulic and
mechanical systems for each item of Equipment.

10.        DEFAULT AND REMEDIES:

             (a)         Lessor may in writing declare this
Agreement in default if: (i) Lessee breaches its obligation to pay rent or any
other sum when due and fails to cure the breach within ten (10) days; (ii)
Lessee breaches any of its insurance obligations under Section 8; (iii) Lessee
breaches any of its other obligations and fails to cure that breach within
thirty (30) days after written notice from Lessor; (iv) any representation or
warranty made by Lessee in connection with this Agreement shall be false or
misleading in any material respect; (v) Lessee or any guarantor or other
obligor for the Lessee's obligations hereunder ("Guarantor") becomes
insolvent or ceases to do business as a going concern; (vi) any Equipment is
illegally used; (vii) if Lessee or any Guarantor is a natural person, any death
or incompetency of Lessee or such Guarantor; or (viii) a petition is filed by
or against Lessee or any Guarantor under any bankruptcy or insolvency laws and
in the event of an involuntary petition, the petition is not dismissed within
forty-five (45) days of the filing date. 
The default declaration shall apply to all Schedules unless specifically
excepted by Lessor.

             (b)        After a default, at the request of
Lessor, Lessee shall comply with the provisions of Section 9(a).  Lessee hereby authorizes Lessor to
peacefully enter any premises where any Equipment may be and take possession of
the Equipment.  Lessee shall immediately
pay to Lessor without further demand as liquidated damages for loss of a
bargain and not as a penalty, the Stipulated Loss Value of the Equipment
(calculated as of the rent payment date prior to the declaration of default),
and all rents and other sums then due under this Agreement and all
Schedules.  Lessor may terminate this
Agreement as to any or all of the Equipment. 
A termination shall occur only upon written notice by Lessor to Lessee
and only as to the units of Equipment specified in any such notice.  Lessor may, but shall not be required to,
sell Equipment at private or public sale, in bulk or in parcels, with or
without notice, and without having the Equipment present at the place of
sale.  Lessor may also, but shall not be
required to, lease, otherwise dispose of or keep idle all or part of the
Equipment.  Lessor may use Lessee's
premises for a reasonable period of time for any or all of the purposes stated
above without liability for rent, costs, damages or otherwise.  The proceeds of sale, lease or other
disposition, if any, shall be applied in the following order of
priorities:  (i) to pay all of Lessor's
costs, charges and expenses incurred in taking, removing, holding, repairing
and selling, leasing or otherwise disposing of Equipment; then, (ii) to the
extent not previously paid by Lessee, to pay Lessor all sums due from Lessee
under this Agreement; then (iii) to reimburse to Lessee any sums previously
paid by Lessee as liquidated damages; and then (iv) to Lessee, if there exists
any surplus.  Lessee shall immediately
pay any deficiency in (i) and (ii) above.

             (c)         The foregoing remedies are cumulative,
and any or all thereof may be exercised instead of or in addition to each other
or any remedies at law, in equity, or under statute.  Lessee waives notice of sale or other disposition (and the time
and place thereof), and the manner and place of any advertising.  Lessee shall pay Lessor's actual attorney's
fees incurred in connection with the enforcement, assertion, defense or
preservation of Lessor's rights and remedies under this Agreement, or if
prohibited by law, such lesser sum as may be permitted.  Waiver of any default shall not be a waiver
of any other or subsequent default.

             (d)        Any default under the terms of this or
any other agreement between Lessor and Lessee may be declared by Lessor a
default under this and any such other agreement.

11.        ASSIGNMENT:  LESSEE
SHALL NOT SELL, TRANSFER, ASSIGN, ENCUMBER OR SUBLET ANY EQUIPMENT OR THE
INTEREST OF LESSEE IN THE EQUIPMENT WITHOUT THE PRIOR WRITTEN CONSENT OF
LESSOR.  Lessor may, without the consent
of Lessee, assign this Agreement, any Schedule or the right to enter into a
Schedule.  Lessee agrees that if Lessee
receives written notice of an assignment from Lessor, Lessee will pay all rent
and all other amounts payable under any assigned Schedule to such assignee or
as instructed by Lessor.  Lessee also
agrees to confirm in writing receipt of the notice of assignment as may be reasonably
requested by assignee.  Lessee hereby
waives and agrees not to assert against any such assignee any defense, set-off,
recoupment claim or counterclaim which Lessee has or may at any time have
against Lessor for any reason whatsoever.

12.        NET LEASE:  Lessee
is unconditionally obligated to pay all rent and other amounts due for the
entire lease term no matter what happens, even if the Equipment is damaged or
destroyed, if it is defective or if Lessee no longer can use it.  Lessee is 
not entitled to reduce or set-off against rent or other amounts due to
Lessor or to anyone to whom Lessor assigns this Agreement or any Schedule
whether Lessees claim arises out of this Agreement, any Schedule, any statement
by Lessor, Lessors liability or any manufacturers liability, strict liability,
negligence or otherwise.

13.        INDEMNIFICATION:

             (a)         Lessee hereby agrees to indemnify
Lessor, its agents, employees, successors and assigns (on an after tax basis)
from and against any and all losses, damages, penalties, injuries, claims,
actions and suits, including legal expenses, of whatsoever kind and nature
arising out of or relating to the Equipment or this Agreement, except to the
extent the losses, damages, penalties, injuries, claims, actions, suits or
expenses result from Lessors gross negligence or willful misconduct ("Claims").   This indemnity shall include, but is not
limited to, Lessor's strict liability in tort and Claims, arising out of (i)
the selection, manufacture, purchase, acceptance or rejection of Equipment, the
ownership of Equipment during the term of this Agreement, and the delivery,
lease, possession, maintenance, uses, condition, return or operation of
Equipment (including, without limitation, latent and other defects, whether or
not discoverable by Lessor or Lessee and any claim for patent, trademark or
copyright infringement or environmental damage) or (ii) the condition of
Equipment sold or disposed of after use by Lessee, any sublessee or employees
of Lessee.  Lessee shall, upon request,
defend any actions based on, or arising out of, any of the foregoing.

             (b)        All of Lessor's rights, privileges and
indemnities contained in this Section 13 shall survive the expiration or other
termination of this Agreement. The rights, privileges and indemnities contained
herein are expressly made for the benefit of, and shall be enforceable by
Lessor, its successors and assigns.

14.        DISCLAIMER: 
LESSEE ACKNOWLEDGES THAT IT HAS SELECTED THE EQUIPMENT WITHOUT ANY
ASSISTANCE FROM LESSOR, ITS AGENTS OR EMPLOYEES.  LESSOR DOES NOT MAKE, HAS NOT MADE, NOR SHALL BE DEEMED TO MAKE
OR HAVE MADE, ANY WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED,
WRITTEN OR ORAL, WITH RESPECT TO THE EQUIPMENT LEASED UNDER THIS AGREEMENT OR
ANY COMPONENT THEREOF, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY AS TO
DESIGN, COMPLIANCE WITH SPECIFICATIONS, QUALITY OF MATERIALS OR WORKMANSHIP,
MERCHANTABILITY, FITNESS FOR ANY PURPOSE, USE OR OPERATION, SAFETY, PATENT,
TRADEMARK OR COPYRIGHT INFRINGEMENT, OR TITLE.  All such risks, as between Lessor and
Lessee, are to be borne by Lessee. 
Without limiting the foregoing, Lessor shall have no responsibility or
liability to Lessee or any other person with respect to any of the following:
(i) any liability, loss or damage caused or alleged to be caused directly or
indirectly by any Equipment, any inadequacy thereof, any deficiency or defect
(latent or otherwise) of the Equipment, or any other circumstance in connection
with the Equipment; (ii) the use, operation or performance of any Equipment or
any risks relating to it; (iii) any interruption of service, loss of business
or anticipated profits or consequential damages; or (iv) the delivery,
operation, servicing, maintenance, repair, improvement or replacement of any
Equipment.  If, and so long as, no
default exists under this Agreement, Lessee shall be, and hereby is, authorized
during the term of this Agreement to assert and enforce, whatever claims and
rights Lessor may have against any Supplier of the Equipment at Lessee's sole
cost and expense, in the name of and for the account of Lessor and/or Lessee,
as their interests may appear.

15.        REPRESENTATIONS AND WARRANTIES OF LESSEE:  Lessee makes each of the
following representations and warranties to Lessor on the date hereof and on
the date of execution of each Schedule:

             (a)         Lessee has adequate power and capacity
to enter into, and perform under, this Agreement and all related documents
(together, the "Documents"). 
Lessee is duly qualified to do business wherever necessary to carry on
its present business and operations, including the jurisdiction(s) where the
Equipment is or is to be located.

             (b)        The Documents have been duly authorized,
executed and delivered by Lessee and constitute valid, legal and binding
agreements, enforceable in accordance with their terms, except to the extent
that the enforcement of remedies may be limited under applicable bankruptcy and
insolvency laws.

             (c)         No approval, consent or withholding of
objections is required from any governmental authority or entity with respect
to the entry into or performance by Lessee of the Documents except such as have
already been obtained.

             (d)        The entry into and performance by Lessee
of the Documents will not:  (i)  violate any judgment, order, law or
regulation applicable to Lessee or any provision of Lessee's Certificate of Incorporation
or bylaws; or (ii) result in any breach of, constitute a default under or
result in the creation of any lien, charge, security interest or other
encumbrance upon any Equipment pursuant to any indenture, mortgage, deed of
trust, bank loan or credit agreement or other instrument (other than this
Agreement) to which Lessee is a party.

             (e)         There are no suits or proceedings
pending or threatened in court or before any commission, board or other
administrative agency against or affecting Lessee, which if decided against
Lessee will have a material adverse effect on the ability of Lessee to fulfill
its obligations under this Agreement.

             (f)         The Equipment accepted under any
Certificate of Acceptance is and will remain tangible personal property.

             (g)        Each financial statement delivered to
Lessor has been prepared in accordance with generally accepted accounting
principles consistently applied.  Since
the date of the most recent financial statement, there has been no material
adverse change.

             (h)        Lessee is and will be at all times
validly existing and in good standing under the laws of the State of its
incorporation (specified in the first sentence of this Agreement).

             (i)          The Equipment will at all times be
used for commercial or business purposes.

16. OWNERSHIP
FOR TAX PURPOSES, GRANT OF SECURITY INTEREST; USURY SAVINGS:

             (a)         For income tax purposes, the parties
hereto agree that it is their mutual intention that Lessee shall be considered
the owner of the Equipment. 
Accordingly, Lessor agrees (i) to treat Lessee as the owner of the
Equipment on its federal income tax return, (ii) not to take actions or
positions inconsistent with such treatment on or with respect to its federal
income tax return, and (iii) not to claim any tax benefits available to an owner
of the Equipment on or with respect to its federal income tax return.  The foregoing undertakings by Lessor shall
not be violated by Lessor's taking a tax position inconsistent with the
foregoing sentence to the extent such a position is required by law or is taken
through inadvertence so long as such inadvertent tax position is reversed by
Lessor promptly upon its discovery. 
Lessor shall in no event be liable to Lessee if Lessee fails to secure
any of the tax benefits available to the owner of the Equipment.

             (b)        Lessee hereby grants to Lessor a first
security interest in the Equipment, together with all additions, attachments,
accessions, accessories and accessions thereto whether or not furnished by the
Supplier of the Equipment and any and all substitutions, replacements or
exchanges therefor, and any and all insurance and/or other proceeds of the
property in and against which a security interest is granted hereunder.  Notwithstanding anything to the contrary contained
elsewhere in this Agreement, to the extent that Lessor asserts a purchase money
security interest in any items of Equipment ("PMSI Equipment"):
(i) the PMSI Equipment shall secure only those sums which have been advanced by
Lessor for the purchase of the PMSI Equipment, or the acquisition of rights
therein, or the use thereof (the "PMSI Indebtedness"), and (ii) no
other Equipment shall secure the PMSI Indebtedness.

             (c)         It is the intention of the parties
hereto to comply with any applicable usury laws to the extent that any Schedule
is determined to be subject to such laws; accordingly, it is agreed that,
notwithstanding any provision to the contrary in any Schedule or this
Agreement, in no event shall any Schedule require the payment or permit the
collection of interest in excess of the maximum amount permitted by applicable
law.  If any such excess interest is
contracted for, charged or received under any Schedule or this Agreement, or in
the event that all of the principal balance shall be prepaid, so that under any
of such circumstances the amount of interest contracted for, charged or
received under any Schedule or this Agreement shall exceed the maximum amount
of interest permitted by applicable law, then in such event  (i) the provisions of this paragraph shall
govern and control, (ii) neither Lessee nor any other person or entity now or
hereafter liable for the payment hereof shall be obligated to pay the amount of
such interest to the extent that it is in excess of the maximum amount of
interest permitted by applicable law, 
(iii) any such excess which may have been collected shall be either
applied as a credit against the then unpaid principal balance or refunded to
Lessee, at the option of the Lessor, and 
(iv) the effective rate of interest shall be automatically reduced to
the maximum lawful contract rate allowed under applicable law as now or
hereafter construed by the courts having jurisdiction thereof.  It is further agreed that without limitation
of the foregoing, all calculations of the rate of interest contracted for,
charged or received under any Schedule or this Agreement which are made for
the  purpose of determining whether such
rate exceeds the maximum lawful contract rate, shall be made, to the extent
permitted by applicable law, by amortizing, prorating, allocating and spreading
in equal parts during the period of the full stated term of the indebtedness
evidenced hereby, all interest at any time contracted for, charged or received
from Lessee or otherwise by Lessor in connection with such indebtedness;
provided, however, that if any applicable state law is amended or the law of
the United States of America preempts any applicable state law, so that it
becomes lawful for Lessor to receive a greater interest per annum rate than is
presently allowed, the Lessee agrees that, on the effective date of such
amendment or preemption, as the case may be, the lawful maximum hereunder shall
be increased to the maximum interest per annum rate allowed by the amended
state law or the law of the United States of America.

17.        EARLY TERMINATION:

             (a)         On or after the First Termination Date
(specified in the applicable Schedule), Lessee may, so long as no default
exists hereunder, terminate this Agreement as to all (but not less than all) of
the Equipment on such Schedule as of a rent payment date ("Termination Date").  Lessee must give Lessor at least ninety (90)
days prior written notice of the termination.

             (b)        Lessee shall, and Lessor may, solicit
cash bids for the Equipment on an AS IS, WHERE IS BASIS without recourse to
or warranty from Lessor, express or implied ("AS IS BASIS").  Prior to the Termination Date, Lessee shall
(i) certify to Lessor any bids received by Lessee and (ii) pay to Lessor (A)
the Termination Value (calculated as of the rent due on the Termination Date)
for the Equipment, and (B) all rent and other sums due and unpaid as of the
Termination Date.

             (c)         If all amounts due hereunder have been
paid on the Termination Date, Lessor shall (i) sell the Equipment on an AS IS BASIS
for cash to the highest bidder and (ii) refund the proceeds of such sale (net
of any related expenses) to Lessee up to the amount of the Termination
Value.  If such sale is not consummated,
no termination shall occur and Lessor shall refund the Termination Value (less
any expenses incurred by Lessor) to Lessee.

             (d)        Notwithstanding the foregoing, Lessor
may elect by written notice, at any time prior to the Termination Date, not to
sell the Equipment.  In that event, on
the Termination Date Lessee shall (i) return the Equipment (in accordance with
Section 9) and (ii) pay to Lessor all amounts required under Section 17(b) less
the amount of the highest bid certified by Lessee to Lessor.

18.        EARLY PURCHASE OPTION:

             (a)         Lessee may purchase on an AS IS BASIS
all (but not less than all) of the Equipment on any Schedule on any Rent
Payment Date after the First Termination Date specified in the applicable
Schedule but prior to the last Rent Payment Date of such Schedule (the "Early
Purchase Date"), for a price equal to (i) the Termination Value
(calculated as of the Early Purchase Date) for the Equipment, and (ii) all rent
and other sums due and unpaid as of the Early Purchase Date (the "Early
Option Price"), plus all applicable sales taxes.  Lessee must notify Lessor of its intent to
purchase the Equipment in writing at least thirty (30) days, but not more than
two hundred seventy (270) days, prior to the Early Purchase Date.  If Lessee is in default or if the Schedule
or this Agreement has already been terminated, Lessee may not purchase the
Equipment.  (The purchase option granted
by this subsection shall be referred to herein as the "Early Purchase Option").

             (b)        If Lessee exercises its Early Purchase
Option, then on the Early Purchase Date, Lessee shall pay to Lessor any rent
and other sums due and unpaid on the Early Purchase Date and Lessee shall pay
the Early Option Price, plus all applicable sales taxes, to Lessor in cash.

19.        END OF LEASE PURCHASE OPTION:  Lessee may, at lease expiration,
purchase all (but not less than all) of the Equipment on any Schedule on an AS
IS BASIS for cash equal to the amount indicated on such Schedule (the "Option
Payment"), plus all applicable sales taxes.  The Option Payment,  plus all applicable sales taxes, shall be
due and payable in immediately available funds on the expiration date of such
Schedule.  Lessee must notify Lessor of
its intent to purchase the Equipment in writing at least one hundred eighty
(180) days prior to the expiration date of the Schedule.  If Lessee is in default, or if the Schedule
or this Agreement has already been terminated, Lessee may not purchase the
Equipment.

20.        MISCELLANEOUS:

             (a)         LESSEE AND LESSOR UNCONDITIONALLY WAIVE
THEIR RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS AGREEMENT, ANY OF THE RELATED DOCUMENTS, ANY DEALINGS
BETWEEN LESSEE AND LESSOR RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION OR
ANY RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED
BETWEEN LESSEE AND LESSOR.  THE SCOPE OF
THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY
BE FILED IN ANY COURT.  THIS WAIVER IS
IRREVOCABLE.  THIS WAIVER MAY NOT BE
MODIFIED EITHER ORALLY OR IN WRITING. 
THE WAIVER ALSO SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT, ANY RELATED DOCUMENTS, OR TO
ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED
TRANSACTION.  THIS AGREEMENT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

             (b)        Any cancellation or termination by Lessor
of this Agreement, any Schedule, supplement or amendment hereto, or the lease
of any Equipment hereunder shall not release Lessee from any then outstanding
obligations to Lessor hereunder.  All
Equipment shall at all times remain personal property even though it may be
attached to real property.  The
Equipment shall not become part of any other property by reason of any
installation in, or attachment to, other real or personal property.

             (c)         Time is of the essence of this
Agreement.  Lessor's failure at any time
to require strict performance by Lessee of any of the provisions hereof shall
not waive or diminish Lessor's right at any other time to demand strict
compliance with this Agreement.  Lessee
agrees, upon Lessor's request, to execute any instrument necessary or expedient
for filing, recording or perfecting the interest of Lessor.   All notices required to be given hereunder
shall be deemed adequately given if sent by registered or certified mail to the
addressee at its address stated herein, or at such other place as such
addressee may have specified in writing. 
This Agreement and any Schedule and Annexes thereto constitute the
entire agreement of the parties with respect to the subject matter hereof.  NO VARIATION OR MODIFICATION OF
THIS AGREEMENT OR ANY WAIVER OF ANY OF ITS PROVISIONS OR CONDITIONS, SHALL BE
VALID UNLESS IN WRITING AND SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE
PARTIES HERETO.

             (d)        If Lessee does not comply with any
provision of this Agreement, Lessor shall have the right, but shall not be
obligated, to effect such compliance, in whole or in part.  All reasonable amounts spent and obligations
incurred or assumed by Lessor in effecting such compliance shall constitute
additional rent due to Lessor.  Lessee
shall pay the additional rent within five days after the date Lessor sends
notice to Lessee requesting payment. 
Lessor's effecting such compliance shall not be a waiver of Lessee's
default.

             (e)         Any rent or other amount not paid to
Lessor when due shall bear interest, from the due date until paid, at the
lesser of eighteen percent (18%) per annum or the maximum rate allowed by
law.  Any provisions in this Agreement
and any Schedule that are in conflict with any statute, law or applicable rule
shall be deemed omitted, modified or altered to conform thereto.

             (f)         Lessee hereby irrevocably authorizes
Lessor to adjust the Capitalized Lessor's Cost up or down by no more than ten
percent [10%] within each Schedule to account for equipment change orders,
equipment returns, invoicing errors, and similar matters.  Lessee acknowledges and agrees that the rent
shall be adjusted as a result of the change in the Capitalized Lessor's
Cost.  Lessor shall send Lessee a
written notice stating the final Capitalized Lessor's Cost, if it has changed.

             (g)        THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF CONNECTICUT
(WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES OF SUCH STATE), INCLUDING
ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, REGARDLESS OF THE
LOCATION OF THE EQUIPMENT.

             (h)        Any cancellation or termination by
Lessor, pursuant to the provisions of this Agreement, any Schedule, supplement
or amendment hereto, of the lease of any Equipment hereunder, shall not release
Lessee from any then outstanding obligations to Lessor hereunder.

             (i)          To the extent that any Schedule would
constitute chattel paper, as such term is defined in the Uniform Commercial
Code as in effect in any applicable jurisdiction, no security interest therein
may be created through the transfer or possession of this Agreement in and of
itself without the transfer or possession of the original of a Schedule
executed pursuant to this Agreement and incorporating this Agreement by
reference; and no security interest in this Agreement and a Schedule may be
created by the transfer or possession of any counterpart of the Schedule other
than the original thereof, which shall be identified as the document marked
Original and all other counterparts shall be marked Duplicate.

IN WITNESS WHEREOF, Lessee and
Lessor have caused this Agreement to be executed by their duly authorized
representatives as of the date first above written.

	LESSOR:	LESSEE:
	 	 	 	 	 	 
	General Electric Capital
  Corporation	Variagenics, Inc.
	 	 	 	 	 	 
	By: /s/	 	Thomas G. Annino	By: /s/	 	Richard P. Shea
	 	 	

	 	 	

	Name:	 	Thomas G. Annino	Name:	 	Richard P. Shea
	 	 	

	 	 	

	Title:	 	VP, Sr. Risk Mgr.	Title	 	Chief Financial Officer
	 	 	

	 	 	

3010 (3/91)

CROSS-COLLATERAL AND CROSS-DEFAULT AGREEMENT

General Electric Capital Corporation

401 Merritt 7 2nd Floor

Norwalk, CT 06856

 

Gentlemen:

             You (and/or your
successors or assigns, "you") have entered into or
purchased one or more conditional sale contracts, lease agreements, chattel
mortgages, security agreements, notes and other choses in action (herein
designated "Accounts") arising from the bona fide sale or lease
to us, by various vendors or lessors, of equipment and inventory (herein
designated "Collateral") and/or you have made direct loans to
or otherwise extended credit to us evidenced by Accounts creating security
interests in Collateral.

             In order to induce you
to extend our time of payment on one or more Accounts and/or to make additional
loans to us and/or to purchase additional Accounts and/or to lease us
additional equipment, and in consideration of you so doing, and for other good
and valuable consideration, the receipt of which we hereby acknowledge, we
agree as follows:

             All presently existing
and hereafter acquired Collateral in which you have or shall have a security
interest shall secure the payment and performance of all of our liabilities and
obligations to you of every kind and character, whether joint or several,
direct or indirect, absolute or contingent, due or to become due, and whether
under presently existing or hereafter created Accounts or agreements, or
otherwise.

             We further agree that
your security interest in the property covered by any Account now held or
hereafter acquired by you shall not be terminated in whole or in part until and
unless all indebtedness of every kind, due or to become due, owed by us to you
is  fully paid and satisfied and the
terms of every Account have been fully performed by us.  It is further agreed that you are to retain
your security interest in all property covered by all Accounts held or acquired
by you, as security for payment and performance under each such Account,
notwithstanding the fact that one or more of such Accounts may become fully
paid.

             This instrument is
intended to create cross-default and cross-security between and among all the
within described Accounts now owned or hereafter acquired by you.

             A default under any
Account or agreement shall be deemed to be a default under all other Accounts
and agreements.  A default shall result
if we fail to pay any sum when due on any Account or agreement, or if we breach
any of the other terms and conditions thereof, or if we become insolvent, cease
to do business as a going concern, make an assignment for the benefit of
creditors, or if a petition for a receiver or in bankruptcy is filed by or
against us, or if any of our property is seized, attached or levied upon.  Upon our default any or all Accounts and agreements
shall, at your option, become immediately due and payable without notice or
demand to us or any other party obligated thereon, and you shall have and may
exercise any and all rights and remedies of a secured party under the Uniform
Commercial Code as enacted in the applicable jurisdiction and as otherwise
granted to you under any Account or other agreement.  We hereby waive, to the maximum extent permitted by law, notices
of default, notices of repossession and sale or other disposition of collateral,
and all other notices, and in the event any such notice cannot be waived, we
agree that if such notice is mailed to us postage prepaid at the address shown
below at least five (5) days prior to the exercise by you of any of your rights
or remedies, such notice shall be deemed to be reasonable and shall fully
satisfy any requirement for giving notice.

             All rights granted to
you hereunder shall be cumulative and not alternative, shall be in addition to
and shall in no manner impair or affect your rights and remedies under any
existing Account, agreement, statute or rule of law.

             This agreement may not
be varied or altered nor its provisions waived except by your duly executed
written agreement.  This agreement shall
inure to the benefit of your successors and assigns and shall be binding upon
our heirs, administrators, executors, legal representatives, successors and
assigns.

             IN WITNESS WHEREOF, this
agreement is executed this __11th_ day of _May___, _2001______.

	 	Variagenics, Inc.
	 	 
	 	(Name of Proprietorship, Partnership or
  Corporation, as applicable)
	 	 
	 	By:  /s/
  Richard P. Shea            
	 	

	 	 	(Signature)
	 	 	 
	 	Title:  Chief
  Financial Officer   
	 	

	 	(Owner, Partner or Officer, as applicable)
	 	 
	 	Address:    60 Hamphire Street, Cambridge, MA 02139
					

 

11/98   4116820001

EQUIPMENT SCHEDULE

(Quasi Lease - Fixed Rate)

SCHEDULE
NO. 001

DATED THIS __June 1, 2001_

TO MASTER LEASE AGREEMENT

DATED AS OF May 10, 2001

	Lessor & Mailing
  Address:	Lessee & Mailing
  Address:
	General Electric Capital
  Corporation	Variagenics, Inc.
	401 Merritt 7 2nd Floor	60 Hamphire Street
	Norwalk, CT 06856	Cambridge, MA 02139

 

This Schedule is executed pursuant to, and incorporates by reference the
terms and conditions of, and capitalized terms not defined herein shall have
the meanings assigned to them in, the Master Lease Agreement identified above ("Agreement",
said Agreement and this Schedule being collectively referred to as "Lease").  This Schedule, incorporating by reference
the Agreement, constitutes a separate instrument of lease.

A.         Equipment:  Subject to the terms and conditions of the Lease, Lessor agrees to
lease to Lessee the Equipment described below (the "Equipment").

	Number	Capitalized	 	 	 
	of Units	Lessor's Cost	Manufacturer	Serial Numbers	Year/Model and Type of
  Equipment
	

	 	 	 	 

 

SEE
EXHIBIT A ATTCHED HERETO AND MADE APART HEREOF.

B.         Financial Terms

	 	1.	Advance Rent (if
  any):  $13,962.63.	6.	Lessee Federal Tax ID
  No.: 04-3182077.
	 	 	 	 	 
	 	2.	Capitalized Lessor's
  Cost:  $569,698.40.	7.	Last Delivery Date:  June 1, 2001.
	 	 	 	 	 
	 	3.	Basic Term (No. of Months):  48  Months.	8.	Daily Lease Rate
  Factor:  .082.
	 	 	 	 	 
	 	4.	Basic Term Lease Rate
  Factor:  2.450881.	9.	Interest Rate: 8.59%
  per annum.
	 	 	 	 	 
	 	5.	Basic Term Commencement
  Date:  June 1, 2001 .	10.	Option Payment:  $1.00

 

	 	11.	First Termination
  Date:  forty eight (48) months after the Basic Term Commencement
  Date.
	 	 	 
	 	12.	Interim Rent:  For the period from and including the
  Lease Commencement Date to the Basic Term Commencement Date ("Interim  Period"), Lessee shall pay
  as rent ("Interim Rent") for each unit of Equipment, the
  product of the Daily Lease Rate Factor times the Capitalized Lessor's Cost of
  such unit times the number of days in the Interim Period.  Interim Rent shall be due on N/A.
	 	 	 
	 	13.	Basic Term Rent.  Commencing on June 1, 2001 and on
  the same day of each month thereafter (each, a "Rent Payment Date")
  during the Basic Term, Lessee shall pay as rent ("Basic Term Rent")
  the product of the Basic Term Lease Rate Factor times the Capitalized
  Lessor's Cost of all Equipment on this Schedule.
	 	 	 
	 	14.	Lessee agrees and
  acknowledges that the Capitalized Lessor's Cost of the Equipment as stated on
  the Schedule is equal to the fair market value of the Equipment on the date
  hereof.

 

C.         Interest Rate:  Interest shall accrue from the Lease Commencement Date through
and including the date of termination of the Lease.

D.         Property Tax

PROPERTY TAX NOT APPLICABLE ON EQUIPMENT LOCATED IN CAMBRIDGE, MA.

Lessor may notify Lessee (and Lessee agrees to follow
such notification) regarding any changes in property tax reporting and payment
responsibilities.

E.          Article 2A Notice

IN ACCORDANCE WITH THE REQUIREMENTS OF
ARTICLE 2A OF THE UNIFORM COMMERCIAL CODE AS ADOPTED IN THE APPLICABLE STATE,
LESSOR HEREBY MAKES THE FOLLOWING DISCLOSURES TO LESSEE PRIOR TO EXECUTION OF
THE LEASE, (A) THE PERSON(S) SUPPLYING THE EQUIPMENT IS SEE EXHIBIT A FOR LISTING OF SUPPLIERS
(THE "SUPPLIER(S)"),
(B) LESSEE IS ENTITLED TO THE PROMISES AND WARRANTIES, INCLUDING THOSE OF ANY
THIRD PARTY, PROVIDED TO THE LESSOR BY SUPPLIER(S), WHICH IS SUPPLYING THE
EQUIPMENT IN CONNECTION WITH OR AS PART OF THE CONTRACT BY WHICH LESSOR
ACQUIRED THE EQUIPMENT AND (C) WITH RESPECT TO SUCH EQUIPMENT, LESSEE MAY
COMMUNICATE WITH SUPPLIER(S) AND RECEIVE AN ACCURATE AND COMPLETE STATEMENT OF
SUCH PROMISES AND WARRANTIES, INCLUDING ANY DISCLAIMERS AND LIMITATIONS OF THEM
OR OF REMEDIES. TO THE EXTENT PERMITTED BY APPLICABLE LAW, LESSEE HEREBY WAIVES
ANY AND ALL RIGHTS AND REMEDIES CONFERRED UPON A LESSEE IN ARTICLE 2A AND ANY
RIGHTS NOW OR HEREAFTER CONFERRED BY STATUTE OR OTHERWISE WHICH MAY LIMIT OR
MODIFY ANY OF LESSOR'S RIGHTS OR REMEDIES UNDER THE DEFAULT AND REMEDIES
SECTION OF THE AGREEMENT.

F.          Stipulated Loss and Termination Value Table*

 

	 	Rental

  Basic	 	Termination

  Value

  Percentage	 	Stipulated

  Loss Value

  Percentage	 	Rental	 	Termination

  Value

  Percentage	 	Stipulated
Loss
Percentage	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	1	 	100.549	 	104.547	 	25	 	54.811	 	57.340	 
	 	2	 	98.795	 	102.732	 	26	 	52.731	 	55.198	 
	 	3	 	97.029	 	100.905	 	27	 	50.635	 	53.041	 
	 	4	 	95.250	 	99.064	 	28	 	48.525	 	50.870	 
	 	5	 	93.458	 	97.212	 	29	 	46.399	 	48.683	 
	 	6	 	91.654	 	95.346	 	30	 	44.258	 	46.481	 
	 	7	 	89.837	 	93.467	 	31	 	42.102	 	44.264	 
	 	8	 	88.006	 	91.576	 	32	 	39.931	 	42.031	 
	 	9	 	86.163	 	89.671	 	33	 	37.744	 	39.783	 
	 	10	 	84.306	 	87.753	 	34	 	35.541	 	37.519	 
	 	11	 	82.437	 	85.822	 	35	 	33.323	 	35.239	 
	 	12	 	80.553	 	83.878	 	36	 	31.089	 	32.944	 
	 	13	 	78.657	 	81.920	 	37	 	28.839	 	30.633	 
	 	14	 	76.746	 	79.948	 	38	 	26.572	 	28.305	 
	 	15	 	74.823	 	77.963	 	39	 	24.290	 	25.961	 
	 	16	 	72.885	 	75.965	 	40	 	21.991	 	23.601	 
	 	17	 	70.933	 	73.952	 	41	 	19.676	 	21.225	 
	 	18	 	68.968	 	71.925	 	42	 	17.344	 	18.832	 
	 	19	 	66.989	 	69.885	 	43	 	14.996	 	16.423	 
	 	20	 	64.995	 	67.830	 	44	 	12.631	 	13.996	 
	 	21	 	62.987	 	65.761	 	45	 	10.249	 	11.553	 
	 	22	 	60.965	 	63.677	 	46	 	7.850	 	9.093	 
	 	23	 	58.928	 	61.579	 	47	 	5.433	 	6.615	 
	 	24	 	56.877	 	59.467	 	48	 	3.000	 	4.120	 

*The Stipulated Loss Value or Termination
Value for any unit of Equipment shall be the Capitalized Lessor's Cost of such
unit multiplied by the appropriate percentage derived from the above
table.  In the event that the Lease is
for any reason extended, then the last percentage figure shown above shall
control throughout any such extended term.

G.         Payment Authorization

You are hereby irrevocably authorized and
directed to deliver and apply the proceeds due under this Schedule as follows:

	 	Company Name	Address	Amount
	 	

	 	Variagenics, Inc.	60 Hampshire Street,
  Cambridge, MA	$	569,698.40

 

             This authorization and
direction is given pursuant to the same authority authorizing the above-mentioned
financing.

Pursuant
to the provisions of the lease, as it relates to this Schedule, Lessee hereby
certifies and warrants that (i) all Equipment listed above is in good condition
and appearance, has been delivered and installed (if applicable) as of the date
stated above and in working order; (ii) Lessee has inspected the Equipment, and
all such testing as it deems necessary has been performed by Lessee, Supplier
or the manufacturer; and (iii) Lessee accepts the Equipment for all purposes of
the Lease and all attendant documents.

Lessee
does further certify that as of the date hereof (i) Lessee is not in default
under the Lease; and (ii) the representations and warranties made by Lessee
pursuant to or under the Lease are true and correct on the date hereof.

 

             Except as expressly
modified hereby, all terms and provisions of the Agreement shall remain in full
force and effect.  This Schedule is not
binding or effective with respect to the Agreement or Equipment until executed
on behalf of Lessor and Lessee by authorized representatives of Lessor and
Lessee, respectively.

             IN WITNESS WHEREOF, Lessee and
Lessor have caused this Schedule to be executed by their duly authorized
representatives as of the date first above written.

	 	LESSOR:	LESSEE:
	 	General Electric Capital
  Corporation	Variagenics, Inc.
	 	 	 
	 	By:  /s/ Thomas Annino	By:  /s/ Richard P. Shea
	 	

	

	 	Name:    THOMAS ANNINO	Name:  Richard P. Shea
	 	

	

	 	Title:  VP., Sr. Risk Mgr	Title:  Chief Financial Officer
	 	

	

 

Tax ID # 04-3182077

Exhibit
A

Schedule 01

 

	Company Name	Variagenics, Inc.
	Equipment Location:	60 Hampshire st
	 	Cambridge, MA 
  02139

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Equip	 	 	 	 	 	 	 	Unit	 	Ext.	 	Invoice	 	Vendor	 	 	 	 	 	 	 	 	 	 
	Item#	 	Supplier	 	Code	 	Description	 	QTY	 	Serial 
  #	 	Price	 	Price	 	Total	 	Total	 	PO #	 	Invoice #	 	Inv Date	 	Ck #	 	Ck Amt
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1	 	Axon
  Instruments	 	LAB	 	GenePix
  

  4000A 

  Microarray 

  scanner	 	1	 	54819	 	50,000.00	 	50,000.00	 	 	 	 	 	5909	 	39763	 	8/25/00	 	11439	 	50,106.46
	 	 	 	 	LAB	 	Shipping	 	1	 	 	 	106.46	 	106.46	 	$50,106.46 	 	$50,106.46 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2	 	Bruker
  Daltonics	 	LAB	 	Mass 

  Spectrometer 

  BIFLEX III 

  W/Scout 384	 	1	 	 	 	139,650.00	 	139,650.00	 	$27,930.00 	 	 	 	6058	 	002526	 	7/12/00	 	10955	 	27,930.00
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$83,790.00 	 	 	 	 	 	002566	 	7/31/00	 	11221	 	111,720.00
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$27,930.00 	 	$139,650.00 	 	 	 	002592	 	8/21/00	 	11221	 	111,720.00
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3	 	Bluesteins	 	FURN	 	FILE,
  LAT,

  LTR/LGL,

  INSUL,4d	 	1	 	FIR 43822CPA	 	2,175.00	 	2,175.00	 	 	 	 	 	6296	 	62510-0	 	9/13/00	 	11567	 	4,024.84
	 	 	 	 	FURN	 	File,
  LAT,

  4DRW,42"

  -W/Lock	 	1	 	 	 	489.99	 	489.99	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	FURN	 	Tax	 	1	 	 	 	133.25	 	133.25	 	$2,798.24 	 	$2,798.24 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4	 	CDW
  Computer Center	 	COMP	 	Simple
  32MB I

  BM TP 390X SE	 	1	 	STM0253/32	 	71.99	 	71.99	 	 	 	 	 	6221	 	CH67265	 	8/15/00	 	11795	 	3,120.84
	 	 	 	 	COMP	 	IBM
  TP 

  570E	 	1	 	78-BD182	 	2,991.99	 	2,991.99	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Shipping	 	1	 	 	 	56.86	 	56.86	 	$3,120.84 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	FURN	 	APC
  Netshelter 

  42U EXP 

  Cabinet	 	1	 	AR1001A	 	1,126.40	 	1,126.40	 	 	 	 	 	6196	 	CYH63941	 	8/15/00	 	11336	 	3,090.01
	 	 	 	 	FURN	 	Shipping	 	1	 	 	 	36.60	 	36.60	 	$1,163.00 	 	$4,283.84 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5	 	Datacom
  Warehouse	 	COMP	 	Power
  Mac 

  G4/400	 	3	 	XA02400HHSE, XA02400UHSE, XA02400EHSE,	 	1,325.00	 	3,975.00	 	 	 	 	 	6190	 	P47024120001	 	8/9/00	 	11276	 	6,064.76
	 	 	 	 	COMP	 	Apple
  

  Monitors 

  17" Studio 

  Display	 	3	 	CY0222X8GZC, CY0222X3GZC, CY0222X6GZC,	 	339.00	 	1,017.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Memory
  

  64MB 

  PC100 

  SDRAM	 	3	 	 	 	107.00	 	321.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Shipping	 	1	 	 	 	141.91	 	141.91	 	$5,454.91 	 	$5,454.91 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	7	 	Micro

  warehouse	 	COMP	 	Laptop
  570E 

  P3/500	 	1	 	78-LP550	 	1,999.00	 	1,999.00	 	 	 	 	 	6418	 	P52095230001	 	10/9/00	 	11854	 	11,289.68
	 	 	 	 	COMP	 	RealPort
  

  Ethernet 

  10/100 PC 

  Card	 	1	 	 	 	132.00	 	132.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	MEM
  Puser 

  64MB 

  PC100 

  SDRAM	 	1	 	 	 	125.00	 	125.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Shipping	 	1	 	 	 	19.22	 	19.22	 	2,275.22	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Power
  Mac 

  400Mhz	 	1	 	XA024017HSE	 	1,325.00	 	1,325.00	 	 	 	 	 	6214	 	P47372830101	 	8/14/00	 	11351	 	3,654.31
	 	 	 	 	COMP	 	Monitor
  

  Apple 17 

  Studio 

  Display	 	1	 	CY022STPGZC	 	339.00	 	339.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	MEM
  Puser 

  64MB 

  PC100 

  SDRAM	 	1	 	 	 	107.00	 	107.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Shipping	 	1	 	 	 	57.81	 	57.81	 	1,828.81	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Power
  Mac 

  400Mhz	 	1	 	XB0251PAJSC	 	1,325.00	 	1,325.00	 	 	 	 	 	6217	 	P47598330001	 	8/16/00	 	11351	 	3,654.31
	 	 	 	 	COMP	 	HDD
  QTM 

  Fireball 

  LCT 

  20.4GB 

  Ultra ATA	 	2	 	 	 	114.95	 	229.90	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	MEM
  Puser 

  64MB 

  PC100 

  SDRAM	 	1	 	 	 	107.00	 	107.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Shipping	 	1	 	 	 	53.09	 	53.09	 	1,714.99	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Lap
  TP 570 

  p2/333 

  4.0/64 56k 

  13.3 XGA 	 	2	 	78-FA299,

  78-FA165	 	1,749.00	 	3,498.00	 	 	 	 	 	6096	 	P44946740001	 	7/14/00	 	11141	 	3,731.08
	 	 	 	 	COMP	 	MEM
  Puser 

  64MB 

  SDRAM 

  F/IBM	 	2	 	 	 	94.00	 	188.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Shipping	 	1	 	 	 	45.08	 	45.08	 	3,731.08	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Lap TP
  570 

  p2/333 

  4.0/64 56k 

  13.3 XGA 	 	2	 	78-FA309,

  78-FA282	 	1,749.00	 	3,498.00	 	 	 	 	 	6117	 	P45532120001	 	7/21/00	 	11193	 	4,675.11
	 	 	 	 	COMP	 	MEM
  Puser 

  64MB 

  SDRAM 

  F/IBM	 	2	 	 	 	94.00	 	188.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	IBM
  LI-ION 

  Battery	 	4	 	 	 	199.00	 	796.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Shipping	 	1	 	 	 	44.15	 	44.15	 	4,526.15	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Lap
  TP 1250 

  C/500 

  6/64/24x/56k	 	1	 	AAFTBVO	 	1,499.00	 	1,499.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	MEM
  Puser 

  64MB 

  PC100 

  SDRAM	 	1	 	 	 	109.00	 	109.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Shipping	 	1	 	 	 	19.22	 	19.22	 	1,627.22	 	 	 	6227	 	P47664590001	 	8/16/00	 	11400	 	1,627.22
	 	 	 	 	COMP	 	Tape
  D 

  DLT8000 

  ADIC 

  WIDE SCSI 

  RACKMT	 	1	 	10320928	 	8,153.00	 	8,153.00	 	 	 	 	 	6378	 	P51461840001	 	10/12/00	 	11854	 	11,289.68
	 	 	 	 	COMP	 	Shipping	 	1	 	 	 	47.61	 	47.61	 	8,200.61	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Lap
  TP 570 

  P3/450 

  6/64/56k 

  13.3 XGA 

  TFT	 	1	 	78-KZ285	 	1,849.00	 	1,849.00	 	 	 	 	 	6510	 	P54109330001	 	11/2/00	 	12030	 	12,280.37
	 	 	 	 	COMP	 	MEM
  Puser 

  64MB 

  PC100 

  SDRAM	 	1	 	 	 	125.00	 	125.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	RealPort

  Ethernet 

  10/100 PC 

  Card	 	1	 	 	 	123.00	 	123.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Shipping	 	1	 	 	 	18.82	 	18.82	 	2,115.82	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Lap
  TP 570 

  P3/450 

  6/64/56k 

  13.3 XGA 

  TFT	 	1	 	78-KZ296	 	1,849.00	 	1,849.00	 	 	 	 	 	6510	 	P54108770001	 	11/2/00	 	12030	 	12,280.37
	 	 	 	 	COMP	 	MEM
  Puser 

  64MB 

  PC100 

  SDRAM	 	1	 	 	 	125.00	 	125.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	RealPort
  

  Ethernet 

  10/100 PC 

  Card	 	1	 	 	 	123.00	 	123.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Shipping	 	1	 	 	 	18.82	 	18.82	 	2,115.82	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Lap
  TP 570 

  P3/450 

  6/64/56k 

  13.3 XGA 

  TFT	 	1	 	78-KZ222	 	1,849.00	 	1,849.00	 	 	 	 	 	6510	 	P54109550001	 	11/2/00	 	12030	 	12,280.37
	 	 	 	 	COMP	 	MEM
  Puser 

  64MB 

  PC100 

  SDRAM	 	1	 	 	 	125.00	 	125.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	RealPort

  Ethernet 

  10/100 PC 

  Card	 	1	 	 	 	123.00	 	123.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Shipping	 	1	 	 	 	18.82	 	18.82	 	2,115.82	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Lap
  TP 570 

  P3/450 

  6/64/56k 

  13.3 XGA 

  TFT	 	2	 	78-KZ172,

  78-KZ202	 	1,849.00	 	3,698.00	 	 	 	 	 	6996	 	P53804700001	 	10/30/00	 	12030	 	12,280.37
	 	 	 	 	COMP	 	MEM
  Puser 

  64MB 

  PC100 

  SDRAM	 	2	 	 	 	125.00	 	250.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	RealPort

  Ethernet 

  10/100 PC 

  Card	 	2	 	 	 	123.00	 	246.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Shipping	 	2	 	 	 	18.82	 	46.99	 	4,240.99	 	34,492.53	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8	 	Stratagene	 	LAB	 	Stratalinker
  

  2400 UV, 

  120 V	 	1	 	400075	 	1,695.00	 	1,695.00	 	1,695.00	 	1,695.00	 	6428	 	151279	 	10/17/00	 	11814	 	1,695.00
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9	 	Tomtec,
  Inc.	 	LAB	 	Ultrasonic
  

  Tip  

  Washing 

  System	 	1	 	4099	 	2,250.00	 	2,250.00	 	 	 	 	 	6185	 	001644	 	8/15/00	 	11254	 	2,268.67
	 	 	 	 	LAB	 	Shipping	 	1	 	 	 	18.67	 	18.67	 	2,268.67	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	LAB	 	Ultrasonic
  

  Tip  

  Washing 

  System	 	1	 	4109	 	2,250.00	 	2,250.00	 	 	 	 	 	6484	 	2142	 	10/27/00	 	11982	 	2,268.05
	 	 	 	 	LAB	 	Shipping	 	1	 	 	 	18.05	 	18.05	 	2,268.05	 	4,536.72	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	10	 	PricePc.Com	 	COMP	 	AMD 

  Athlon 600 

  (k7) ABIT 

  KA7-100	 	23	 	 	 	1,039.00	 	23,897.00	 	 	 	 	 	Credit card	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Intel
  epro 

  100	 	1	 	 	 	35.00	 	35.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMP	 	Shipping	 	23	 	 	 	19.00	 	437.00	 	24,369.00	 	24,369.00	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	11	 	VWR
  Scientific	 	LAB	 	Vacuum
  

  Pump	 	1	 	 	 	1,400.70	 	1,400.70	 	1,400.70	 	1,400.70	 	6219	 	5080381	 	9/19/00	 	11816	 	5,259.02
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12	 	BioRobotics	 	LAB	 	MicroGrid
  II 

  TAS	 	1	 	 	 	125,000.00	 	115,000.00	 	 	 	 	 	5964	 	10010	 	10/25/00	 	12002	 	115,650.00
	 	 	 	 	LAB	 	Shipping	 	1	 	 	 	650.00	 	650.00	 	115,650.00	 	115,650.00	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	13	 	Laboratory
  Systems Inc.	 	LAB	 	Laboratory
  

  Casework	 	1	 	 	 	12,670.00	 	12,670.00	 	 	 	 	 	6351	 	1715	 	11/16/00	 	12151	 	13,173.00
	 	 	 	 	LAB	 	Sales
  Tax	 	1	 	 	 	503.00	 	503.00	 	13,173.00	 	13,173.00	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	14	 	MWG
  Biotech Inc.	 	LAB	 	Primus
  96

  PCR System	 	4	 	 	 	7,700.00	 	24,024.00	 	 	 	 	 	6547	 	10020877	 	11/14/00	 	12156	 	109,008.00
	 	 	 	 	LAB	 	Shipping	 	4	 	 	 	200.00	 	200.00	 	24,224.00	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	LAB	 	Primus
  96 

  PCR System	 	14	 	 	 	7,700.00	 	84,084.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	LAB	 	Shipping	 	14	 	 	 	700.00	 	700.00	 	84,784.00	 	109,008.00	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	15	 	Hamilton	 	LAB	 	Hamilton
  

  Microlab 

  4200	 	1	 	ML41AJ2154	 	63,000.00	 	63,000.00	 	63,000.00	 	 	 	6405	 	616323	 	11/3/00	 	12129	 	63,080.00
	 	 	 	 	LAB	 	Shipping	 	1	 	 	 	80.00	 	80.00	 	80.00	 	63,080.00	 	6405	 	M94913	 	11/27/00	 	12129	 	63,080.00
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	FUNDING 

  TOTAL	 	 	 	 	 	 	 	 	 	$569,698.40 	 	$569,698.40 	 	 	 	 	 	 	 	 	 	 

 

	 	VARIAGENICS,
  INC.
	 	By
  /s/ Richard P. Shea
	 	

	 	Title:
  CFO
	 	

4116820001

RATE ADJUSTMENT RIDER AND
ACKNOWLEDGMENT

 

             RATE ADJUSTMENT RIDER AND ACKNOWLEDGMENT
(this "Rider")
to Schedule No.001 (the
"Schedule") and the related Master Lease Agreement No. 4116820
datedMay 10, 2001(the "Master
Lease", and together with the Schedule, the "Lease"),
between Variagenics,
Inc., (the "Lessee") and General
Electric Capital Corporation, (the "Lessor").  This Rider is entered into pursuant to and
incorporates by this reference all of the terms and provisions of this
Lease.  By its execution and delivery of
this Rider, Lessee hereby reaffirms all of the representations, warranties, and
covenants contained in the Lease as of the date hereof, and further represents
and warrants to Lessor that no default has occurred and is continuing as of the
date hereof.

	 	1.	Purpose.  This Rider amends and restates the terms
  of the payments set forth in the Schedule.
	 	 	 
	 	2.	Definitions. The
  following terms shall have the following meanings herein:
	 	 	 
	 	 	(a) "Adjustment
  Date" shall mean the date Lessor receives Lessee's executed Acceptance
  Certificate in Lessor's standard form (following delivery) evidencing Lessee's
  acceptance of the Equipment described in the Lease.
	 	 	 
	 	 	(b) "Final T-Note
  Average" shall mean the average of the yields on the U. S. Treasury Notes
  maturing in 4year, as published by the Dow Jones
  Telerate Access Service, Page 19901, for the close of business on each
  business day of the two full calendar weeks immediately preceding the week
  containing the Adjustment Date.
	 	 	 
	 	 	(c)"Preliminary
  Payments" shall mean the payments set forth in the
  Schedule, consisting of $13,962.63 due upon execution (the
  "Advance Payment") followed by Forty Seven  (47) consecutive monthly payments.
	 	 	 
	 	 	(d) "Preliminary
  T-Note Average" shall mean 4.59%.
	 	 	 
	 	3.	Adjustment of Payments.  The Preliminary Payments were calculated
  based on a spread over the Preliminary T-Note Average.  Should the Final T-Note Average differ
  from the Preliminary T-Note Average, then the Preliminary Payments shall be
  revised.  For each increase of one (1)
  basis point (i.e., 1/100 of 1%) in the Final T-Note Average above or below
  the Preliminary T-Note Average, the Preliminary Payments shall be revised as
  follows (complete below as applicable):
	 	 	 
	 	 	The Advance Payment, due
  upon execution of the Schedule, shall remain unchanged.
	 	 	 
	 	 	Each of the monthly
  payments initially scheduled in the amount of $13,962.63 shall increase by
  $2.55.
	 	 	 
	 	 	THE CALCULATION OF THE
  CONTRACT PAYMENTS UNDER THIS RIDER WILL SUPERSEDE ANY PRIOR PROPOSAL OR
  QUOTATION.  LESSEE HEREBY ACKNOWLEDGES
  AND AGREES TO THE CALCULATION OF THE PAYMENT SCHEDULE SET FORTH HEREIN.
	 	 	 
	 	4.	Lessor's Requirements. The
  commencement of the Lease is subject to satisfaction of all documentation and
  credit requirements of the Lessor.  If
  such requirements are not satisfied by the Adjustment Date, then the Lessor
  may, at its sole option, declare that the Adjustment Date shall be the date
  when such requirements are satisfied. 
				

 

	General Electric Capital
  Corporation	 	 	 	Variagenics, Inc.
	 	 	 	 	 	 	 
	By: 	/s/ 	Thomas Annino	 	By	/s/ 	Richard P. Shea
	 	 	

	 	 	 	

	 	 	 	 	 	 	 
	Name:	 	THOMAS ANNINO	 	Name: 	 	Richard P. Shea
	 	 	

	 	 	 	

	 	 	 	 	 	 	 
	Title	 	VP, Sr. Risk Mgr.	 	Title:	 	Chief Financial Officer
	 	 	

	 	 	 	

 

 

10/94(R010699)

FINANCIAL COVENANTS

ADDENDUM NO. 001

TO MASTER LEASE AGREEMENT

DATED AS OF May 10, 2001

THIS ADDENDUM (this "Addendum") amends and
supplements the above referenced agreement (the "Agreement"),
between General
Electric Capital Corporation (together with its successors and
assigns, if any, "Lessor") and Variagenics, Inc. ("Lessee") and is
hereby incorporated into the Agreement as though fully set forth therein.  Capitalized terms not otherwise defined
herein shall have the meanings set forth in the Lease.

The Agreement is hereby amended by adding
the following:

             FINANCIAL
COVENANTS.

	 	(a)	Lessee shall, at all
  times during the term of the Agreement, comply with the following:
	 	 	 
	 	 	Lessee (Variagenics,
  Inc.) shall, at all times during the term of the Agreement, comply with the
  following:
	 	 	 
	 	Maintain minimum
  Unrestricted Cash, as defined below, at the greater of $25,000,000.00 or twelve
  (12) months cash needs (defined as the cash burn for the 3 months just
  completed, multiplied by a factor of 4, excluding cash paid by Lessee for the
  partial or full ownership of another company). If this covenant is violated,
  Lessee will provide Lessor within ten (10) days of such occurrence with a
  continuing irrevocable letter of credit, acceptable to Lessor (the
  "Collateral"), from a financial institution acceptable to Lessor,
  in an amount equal to 50% of the original aggregate Equipment Cost.
	 	 
	 	Unrestricted Cash shall
  be defined as cash on hand and cash equivalents, including investments in
  marketable securities with maturities of less than fourteen (14) months, less
  cash pledged to other parties.

             (b)        COMPLIANCE REPORTS.  Lessee's Authorized Representative shall
certify that Lessee is in compliance with the requirements of subsection (a)
above.  Such notification and
certification shall be provided within ninety (90) days after the end of each
fiscal year (the "Compliance Date"), reflecting such information as
of the end of such fiscal year.  If
Lessee fails timely to provide such notification and compliance certificates,
within fifteen (15) days after the Compliance Date, such failure shall
automatically be deemed a default under the Agreement without notice or other
act by Lessor.  The reports required
under this section are in addition to and not a substitute for the reports
required under the REPORTS Section of the Agreement.

Except as expressly modified hereby, all
terms and provisions of the Lease shall remain in full force and effect.  This Addendum is not binding nor effective
with respect to the Lease until executed on behalf of Lessor and Lessee by
authorized representatives of Lessor and Lessee.

	IN WITNESS WHEREOF, Lessee and
  Lessor have caused this Addendum to be executed by their duly authorized
  representatives as of the date first above written.  	 
	 	 	 
	Lessor:	 	Lessee:
	 	 	 
	General Electric Capital
  Corporation	 	Variagenics, Inc.
	 	 	 
	 By: /s/ Thomas Annino	 	By: /s/ Richard P. Shea
	

	 	

	Name:  THOMAS ANNINO	 	Name:  Richard P. Shea 
	

	 	

	Title:  VP, Sr. Risk Mgr.	 	Title:  Chief Financial Officer
	 	 	

	 	 	Attest
	 	 	 
	 	 	By: 
	 	 	 
	 	 	Name:________________________________
				

ANNEX B

BILL OF SALE

             FOR Five Hundred Sixty Nine Thousand Six
Hundred Ninety Eight—40/00 ($569,698.40) AND OTHER VALUABLE CONSIDERATION,
the receipt and sufficiency of which are hereby acknowledged, VARIAGENICS,
INC. (the “Seller”) does hereby sell, transfer and deliver to General
Electric Capital Corporation (the “Buyer”), its successors and
assigns, all of Seller’s right, title and interest in and to the following
equipment (the “Equipment”):

             SEE EXHIBIT A ATTACHED HERETO AND MADE A
PART HEREOF

             TO HAVE AND TO HOLD the same
unto the Buyer, its successors and assigns, forever.

             The Seller warrants and represents
that it owns (and has good and marketable title to) the Equipment free and
clear of all liens and encumbrances, and has full power, right and authority to
convey title thereto to the Buyer.  The
foregoing warranty of title shall inure to the benefit of any purchaser of the
Equipment from the Buyer and to General Electric Capital Corporation which is
financing the purchase of the Equipment by the Buyer.

             Except for the foregoing warranty
of title, the Equipment is sold, “AS-IS”, “WHERE-IS”, without warranty of
merchantability or fitness.

             IN WITNESS WHEREOF, the
Seller has caused this Bill of Sale to be executed by a duly authorized officer
this ____ day of __________, _______

	 	VARIAGENICS, INC.
	 	 	(Seller)
	 	 	 
	 	By:  /
  s/ Richard P. Shea
	 	

	 	Title:  
  Chief Financial Officer
	 	

				

 

Ref:  g/docs/B-SALE1

11/98  
4116820002

EQUIPMENT SCHEDULE

(Quasi Lease - Fixed Rate)

SCHEDULE
NO. 002

DATED THIS __June 1, 2001_______

TO MASTER LEASE AGREEMENT

DATED AS OF May 10, 2001

	Lessor & Mailing
  Address:	Lessee & Mailing
  Address:
	General Electric Capital
  Corporation	Variagenics, Inc.
	401 Merritt 7 2nd Floor	60 Hamphire Street
	Norwalk, CT 06856	Cambridge, MA 02139

 

This Schedule is executed pursuant to, and incorporates by reference the
terms and conditions of, and capitalized terms not defined herein shall have
the meanings assigned to them in, the Master Lease Agreement identified above ("Agreement",
said Agreement and this Schedule being collectively referred to as "Lease").  This Schedule, incorporating by reference
the Agreement, constitutes a separate instrument of lease.

A.         Equipment:  Subject to the terms and conditions of the Lease, Lessor agrees to
lease to Lessee the Equipment described below (the "Equipment").

	Number	Capitalized	 	 	 
	of Units	Lessor's Cost	Manufacturer	Serial Numbers	Year/Model
  and Type of Equipment
	

 

SEE EXHIBIT A ATTACHED HERETO AND MADE APART HEREOF.

B.         Financial Terms

	 	1.	Advance Rent (if any):  $ 29,539.69.	6.	 	Lessee Federal Tax ID No.: 04-3182077
	 	 	 	 	 	 
	 	2.	Capitalized Lessor's Cost:  $ 1,205,268.33.	7.	 	Last Delivery Date:   June 1, 2001
	 	 	 	 	 	 
	 	3.	Basic Term (No. of Months):  48 Months.	8.	 	Daily Lease Rate Factor:  .082.
	 	 	 	 	 	 
	 	4.	Basic Term Lease Rate Factor:  2.450881.	9.	 	Interest Rate: 8.59%
  per annum.
	 	 	 	 	 	 
	 	5.	Basic Term Commencement Date: June 1,
  2001	10.	 	Option Payment:  $ 1.00

11.        First
Termination Date:  forty eight (48) months after the Basic Term Commencement Date.

12.        Interim
Rent:  For the period from and including
the Lease Commencement Date to the Basic Term Commencement Date ("Interim  Period"), Lessee shall pay
as rent ("Interim
Rent") for each unit of Equipment, the product of the Daily
Lease Rate Factor times the Capitalized Lessor's Cost of such unit times the
number of days in the Interim Period. 
Interim Rent shall be due on __N/A_________.

13.        Basic
Term Rent.  Commencing on _June 1,
2001_________ and on the same day of each month thereafter
(each, a "Rent
Payment Date") during the Basic Term, Lessee shall pay as rent
("Basic
Term Rent") the product of the Basic Term Lease Rate Factor
times the Capitalized Lessor's Cost of all Equipment on this Schedule.

14.        Lessee
agrees and acknowledges that the Capitalized Lessor's Cost of the Equipment as
stated on the Schedule is equal to the fair market value of the Equipment on
the date hereof.

	C.	Interest Rate:  Interest shall accrue from the Lease
  Commencement Date through and including the date of termination of the Lease.

 

D.         Property Tax

PROPERTY TAX NOT APPLICABLE ON EQUIPMENT LOCATED IN CAMBRIDGE, MA.

Lessor may notify Lessee (and Lessee agrees
to follow such notification) regarding any changes in property tax reporting
and payment responsibilities.

E.          Article 2A Notice

IN ACCORDANCE WITH THE REQUIREMENTS OF
ARTICLE 2A OF THE UNIFORM COMMERCIAL CODE AS ADOPTED IN THE APPLICABLE STATE,
LESSOR HEREBY MAKES THE FOLLOWING DISCLOSURES TO LESSEE PRIOR TO EXECUTION OF
THE LEASE, (A) THE PERSON(S) SUPPLYING THE EQUIPMENT IS SEE EXHIBIT A FOR LISTING OF SUPPLIERS
(THE "SUPPLIER(S)"),
(B) LESSEE IS ENTITLED TO THE PROMISES AND WARRANTIES, INCLUDING THOSE OF ANY
THIRD PARTY, PROVIDED TO THE LESSOR BY SUPPLIER(S), WHICH IS SUPPLYING THE
EQUIPMENT IN CONNECTION WITH OR AS PART OF THE CONTRACT BY WHICH LESSOR
ACQUIRED THE EQUIPMENT AND (C) WITH RESPECT TO SUCH EQUIPMENT, LESSEE MAY
COMMUNICATE WITH SUPPLIER(S) AND RECEIVE AN ACCURATE AND COMPLETE STATEMENT OF
SUCH PROMISES AND WARRANTIES, INCLUDING ANY DISCLAIMERS AND LIMITATIONS OF THEM
OR OF REMEDIES. TO THE EXTENT PERMITTED BY APPLICABLE LAW, LESSEE HEREBY WAIVES
ANY AND ALL RIGHTS AND REMEDIES CONFERRED UPON A LESSEE IN ARTICLE 2A AND ANY
RIGHTS NOW OR HEREAFTER CONFERRED BY STATUTE OR OTHERWISE WHICH MAY LIMIT OR
MODIFY ANY OF LESSOR'S RIGHTS OR REMEDIES UNDER THE DEFAULT AND REMEDIES
SECTION OF THE AGREEMENT.

F.          Stipulated Loss and Termination Value Table*

	 	Rental

  Basic	 	Termination

  Value

  Percentage	 	Stipulated

  Loss Value

  Percentage	 	Rental	 	Termination
Value

  Percentage	 	Stipulated
Loss Value

  Percentage	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	1	 	100.549	 	104.547	 	25	 	54.811	 	57.340	 
	 	2	 	98.795	 	102.732	 	26	 	52.731	 	55.198	 
	 	3	 	97.029	 	100.905	 	27	 	50.635	 	53.041	 
	 	4	 	95.250	 	99.064	 	28	 	48.525	 	50.870	 
	 	5	 	93.458	 	97.212	 	29	 	46.399	 	48.683	 
	 	6	 	91.654	 	95.346	 	30	 	44.258	 	46.481	 
	 	7	 	89.837	 	93.467	 	31	 	42.102	 	44.264	 
	 	8	 	88.006	 	91.576	 	32	 	39.931	 	42.031	 
	 	9	 	86.163	 	89.671	 	33	 	37.744	 	39.783	 
	 	10	 	84.306	 	87.753	 	34	 	35.541	 	37.519	 
	 	11	 	82.437	 	85.822	 	35	 	33.323	 	35.239	 
	 	12	 	80.553	 	83.878	 	36	 	31.089	 	32.944	 
	 	13	 	78.657	 	81.920	 	37	 	28.839	 	30.633	 
	 	14	 	76.746	 	79.948	 	38	 	26.572	 	28.305	 
	 	15	 	74.823	 	77.963	 	39	 	24.290	 	25.961	 
	 	16	 	72.885	 	75.965	 	40	 	21.991	 	23.601	 
	 	17	 	70.933	 	73.952	 	41	 	19.676	 	21.225	 
	 	18	 	68.968	 	71.925	 	42	 	17.344	 	18.832	 
	 	19	 	66.989	 	69.885	 	43	 	14.996	 	16.423	 
	 	20	 	64.995	 	67.830	 	44	 	12.631	 	13.996	 
	 	21	 	62.987	 	65.761	 	45	 	10.249	 	11.553	 
	 	22	 	60.965	 	63.677	 	46	 	7.850	 	9.093	 
	 	23	 	58.928	 	61.579	 	47	 	5.433	 	6.615	 
	 	24	 	56.877	 	59.467	 	48	 	3.000	 	4.120	 

 

*The Stipulated Loss Value or Termination
Value for any unit of Equipment shall be the Capitalized Lessor's Cost of such
unit multiplied by the appropriate percentage derived from the above
table.  In the event that the Lease is
for any reason extended, then the last percentage figure shown above shall
control throughout any such extended term.

G.         Payment Authorization

You are hereby irrevocably authorized and
directed to deliver and apply the proceeds due under this Schedule as follows:

	 	Company Name	Address	Amount
	 	

	 	Applied Biosystems	P.O. Box 101446,
  Atlanta, GA  30392-1446	$1,085,268.33
	 	 	 	 
	 	 	 	 
	 	Variagenics, Inc.	60 Hampshire Street,
  Cambridge, MA  02139	$120,000.00
	 	 	 	 

 

             This authorization and
direction is given pursuant to the same authority authorizing the
above-mentioned financing.

Pursuant
to the provisions of the lease, as it relates to this Schedule, Lessee hereby
certifies and warrants that (i) all Equipment listed above is in good condition
and appearance, has been delivered and installed (if applicable) as of the date
stated above and in working order; (ii) Lessee has inspected the Equipment, and
all such testing as it deems necessary has been performed by Lessee, Supplier
or the manufacturer; and (iii) Lessee accepts the Equipment for all purposes of
the Lease and all attendant documents.

Lessee
does further certify that as of the date hereof (i) Lessee is not in default
under the Lease; and (ii) the representations and warranties made by Lessee
pursuant to or under the Lease are true and correct on the date hereof.

 

             Except as expressly
modified hereby, all terms and provisions of the Agreement shall remain in full
force and effect.  This Schedule is not
binding or effective with respect to the Agreement or Equipment until executed
on behalf of Lessor and Lessee by authorized representatives of Lessor and
Lessee, respectively.

             IN WITNESS WHEREOF, Lessee and
Lessor have caused this Schedule to be executed by their duly authorized
representatives as of the date first above written.

	LESSOR:	 	LESSEE:
	 	 	 	 	 	 	 
	General Electric Capital
  Corporation	 	 	 	Variagenics, Inc.
	 	 	 	 	 	 	 
	By: 	/s/ 	Thomas Annino	 	By	/s/ 	Richard P. Shea
	 	 	

	 	 	 	

	 	 	 	 	 	 	 
	Name:	 	THOMAS ANNINO	 	Name: 	 	Richard P. Shea
	 	 	

	 	 	 	

	 	 	 	 	 	 	 
	Title	 	VP, Sr. Risk Mgr.	 	Title:	 	Chief Financial Officer
	 	 	

	 	 	 	

 

Tax ID # 04-3182077

Exhibit
A

Schedule 002

	Company
  Name	Variagenics,
  Inc.
	Equipment
  Location:	60
  Hampshire st
	 	Cambridge,
  MA  02139

 

	 	 	Equip	 	 	 	Unit	Ext.	Invoice	Vendor	 	 	 	 	 	 
	Item#	 	Supplier	 	Code	 	Description	 	QTY	 	Serial  #	 	Price	 	Price	 	Total	 	Total	 	PO #	 	Invoice #	 	Inv Date	 	Ck #	 	Ck.Amt	 
	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 
	1	 	Applied

  Biosystems	 	LAB	 	3700 DNA

  Analyzer

  Sequencing	 	4	 	100001776

  100001773

  100001774

  100001803	 	300,000.00	 	1,200,000.00	 	 	 	 	 	MED2556	 	90961724	 	12/12/00	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	LAB	 	Shipping	 	4	 	 	 	5,268.33	 	5,268.33	 	$1,205,268.33	 	$1,205,268.33	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	FUNDING TOTAL	 	 	 	 	 	 	 	 	 	$1,205,268.33	 	$1,205,268.33	 	 	 	 	 	 	 	 	 	 	 
																																										

 

	 	VARIAGENICS,
  INC.	 	 
	 	By
  /s/ Richard P. Shea	 	 
	 	

	 	 
	 	Date:  5-11-01	 	 
	 	

	 	 

 

INITIAL:  RPS  _

4116820002

RATE ADJUSTMENT RIDER AND
ACKNOWLEDGMENT

             RATE ADJUSTMENT RIDER AND ACKNOWLEDGMENT
(this "Rider")
to Schedule No.002 (the
"Schedule") and the related Master Lease Agreement No. 4116820
datedMay 10, 2001(the "Master
Lease", and together with the Schedule, the "Lease"),
between Variagenics,
Inc., (the "Lessee") and General
Electric Capital Corporation, (the "Lessor").  This Rider is entered into pursuant to and
incorporates by this reference all of the terms and provisions of this
Lease.  By its execution and delivery of
this Rider, Lessee hereby reaffirms all of the representations, warranties, and
covenants contained in the Lease as of the date hereof, and further represents
and warrants to Lessor that no default has occurred and is continuing as of the
date hereof.

1.          Purpose.  This Rider amends and restates the terms of
the payments set forth in the Schedule.

2.          Definitions.
The following terms shall have the following meanings herein:

	 	(a) "Adjustment
  Date" shall mean the date Lessor receives Lessee's executed Acceptance
  Certificate in Lessor's standard form (following delivery) evidencing
  Lessee's acceptance of the Equipment described in the Lease.
	 	 
	 	(b) "Final T-Note
  Average" shall mean the average of the yields on the U. S. Treasury Notes maturing
  in 4year,
  as published by the Dow Jones Telerate Access Service, Page 19901, for the
  close of business on each business day of the two full calendar weeks
  immediately preceding the week containing the Adjustment Date.
	 	 
	 	(c)"Preliminary
  Payments" shall mean the payments set forth in the Schedule,
  consisting of $29,539.69 due upon execution (the "Advance
  Payment") followed by Forty Seven  (47) consecutive monthly payments.
	 	 
	 	(d) "Preliminary
  T-Note Average" shall mean 4.59%.

 

	 	3.	Adjustment of Payments.  The Preliminary Payments were calculated
  based on a spread over the Preliminary T-Note Average.  Should the Final T-Note Average differ
  from the Preliminary T-Note Average, then the Preliminary Payments shall be
  revised.  For each increase of one (1)
  basis point (i.e., 1/100 of 1%) in the Final T-Note Average above or below
  the Preliminary T-Note Average, the Preliminary Payments shall be revised as
  follows (complete below as applicable):

 

             The
Advance Payment, due upon execution of the Schedule, shall remain unchanged.

             Each
of the monthly payments initially scheduled in the amount of $29,539.69
shall increase by $5.39.

	 	THE CALCULATION OF THE
  CONTRACT PAYMENTS UNDER THIS RIDER WILL SUPERSEDE ANY PRIOR PROPOSAL OR
  QUOTATION.  LESSEE HEREBY ACKNOWLEDGES
  AND AGREES TO THE CALCULATION OF THE PAYMENT SCHEDULE SET FORTH HEREIN.

 

 

	 	4.	Lessor's Requirements. The
  commencement of the Lease is subject to satisfaction of all documentation and
  credit requirements of the Lessor.  If
  such requirements are not satisfied by the Adjustment Date, then the Lessor
  may, at its sole option, declare that the Adjustment Date shall be the date
  when such requirements are satisfied. 
  

 

	 	 	 	 	 	 	 
	General Electric Capital
  Corporation	 	 	 	Variagenics, Inc.
	 	 	 	 	 	 	 
	By: 	/s/ 	Thomas Annino	 	By	/s/ 	Richard P. Shea
	 	 	

	 	 	 	

	 	 	 	 	 	 	 
	Name:	 	THOMAS ANNINO	 	Name: 	 	Richard P. Shea
	 	 	

	 	 	 	

	 	 	 	 	 	 	 
	Title	 	VP, Sr. Risk Mgr.	 	Title:	 	Chief Financial Officer
	 	 	

	 	 	 	

 

 

ANNEX B

BILL OF SALE

             FOR One Million Two Hundred Five Thousand
Two Hundred Sixty Eight—33/00 ($1,205,268.33) AND OTHER VALUABLE CONSIDERATION,
the receipt and sufficiency of which are hereby acknowledged, VARIAGENICS,
INC. (the “Seller”) does hereby sell, transfer and deliver to General
Electric Capital Corporation (the “Buyer”), its successors and
assigns, all of Seller’s right, title and interest in and to the following
equipment (the “Equipment”):

             SEE EXHIBIT A ATTACHED HERETO AND MADE A
PART HEREOF

 

             TO HAVE AND TO HOLD the same
unto the Buyer, its successors and assigns, forever.

             The Seller warrants and represents
that it owns (and has good and marketable title to) the Equipment free and
clear of all liens and encumbrances, and has full power, right and authority to
convey title thereto to the Buyer.  The
foregoing warranty of title shall inure to the benefit of any purchaser of the
Equipment from the Buyer and to General Electric Capital Corporation which is
financing the purchase of the Equipment by the Buyer.

             Except for the foregoing warranty
of title, the Equipment is sold, “AS-IS”, “WHERE-IS”, without warranty of
merchantability or fitness.

             IN WITNESS WHEREOF, the
Seller has caused this Bill of Sale to be executed by a duly authorized officer
this ____ day of __________, _______

	 	VARIAGENICS, INC.	 
	 	

	 
	 	 	 	(Seller)	 
	 	 	 	 	 
	 	By:	/s/ 	Richard P. Shea	 
	 	 	 	

	 
	 	Title:	 	Chief Financial OfficerPrepared by MerrillDirect

EXECUTIVE
EMPLOYMENT AGREEMENT

             This Agreement, dated as of July
11, 2001, is by and between Vari-Lite, Inc., a Delaware corporation (the
“Company”), and Bob Schacherl (“Executive”).

W I T N E S S E T H:

             WHEREAS, Executive possesses
significant knowledge and information in matters relating to the Business (as
defined below), which knowledge and information will be increased, developed
and enhanced through his continued employment by the Company; and

             WHEREAS, the parties hereto desire
to enter into an agreement for the Company’s continued employment of Executive
on the terms and conditions contained herein;

             NOW, THEREFORE, in consideration of
the premises and the mutual covenants and agreements contained herein, and
certain other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

             1.          Employment
and Duties.  The Company
hereby employs Executive, and Executive hereby accepts employment with the
Company, to serve as Vice President of Sales for the Company.  In such capacity, Executive shall report to
the President of the Company and shall devote his full working time, attention
and energies to the diligent performance of such services and duties as from
time to time may be designated by the President of the Company.  Executive shall not, without the prior
written consent of the Company, directly or indirectly, at any time while
employed by the Company, engage in any venture or activity that the Company, in
its sole discretion, determines interferes with Executive’s performance of his
duties and responsibilities as an employee of the Company.

             2.          Term.  The term of this
Agreement and Executive’s employment hereunder (the “Term”) shall commence as
of the date hereof and, unless sooner terminated in accordance with the
termination provisions hereof, shall continue for one year (the “Initial
Term”), and thereafter shall renew for successive one-year periods unless
either party hereto delivers to the other party at least 30 days prior to the
expiration of the Initial Term, or the expiration date of any subsequent
one-year renewal period, written notice of the election not to renew the Term.

             3.          Compensation.  The Company shall
compensate Executive as follows:

                           (a)         Base
Salary.  During the Term,
the Company shall pay to Executive an annual salary of $175,000 (the “Base
Salary”), payable in arrears and in accordance with the Company’s normal
payroll practices as in effect from time to time.  The Base Salary may be increased, but not decreased,  from time to time as the Compensation
Committee of the Company’s Board of Directors determines, in its sole
discretion.

                           (b)        Benefits
and Perquisites. 
Executive shall be entitled to vacation and employee benefits (including
bonus plans offered to management employees generally) in accordance with the
policies of the Company in effect from time to time.  The Company may change or amend any of the benefits it provides
at any time.

                           (c)         Expense
Reimbursement.  The
Company shall reimburse Executive for all reasonable expenses properly incurred
by Executive in the performance of Executive’s duties hereunder, in accordance
with policies established from time to time by the Company.

 

             4.          Termination
by the Company Without Cause.  The Company may
terminate Executive’s employment with the Company at any time and for any
reason other than for Cause (as defined below), including Employer electing not
to renew the Initial Term or any Renewal Term, as the case may be, pursuant to
Section 2.  In the event of any such
termination, the Company shall pay Executive the Base Salary through the end of
the Term (as determined without regard to the termination), payable in
accordance with the Company’s normal payroll practices.  In addition, the Company will (a) continue
to pay Executive the Base Salary for a six month period after the end of the
Term (as determined without regard to the termination), payable in accordance with the Company’s normal payroll
practices.

             5.          Termination
by the Company for Cause.  The Company may
terminate Executive’s employment with the Company at any time for Cause by
delivering to Executive written notice of termination supported by a reasonably
detailed statement of the relevant facts and reason for termination.  In the event of any such termination, the
Company shall pay Executive the Base Salary accrued and unpaid through the date
of termination, payable in accordance with the Company’s normal payroll
practices.  As used herein, “Cause”
means (a) Executive has breached Section 10 or 11 hereof, (b) Executive has
used alcohol or drugs on the job or in a manner affecting his job performance,
(c) Executive has been grossly negligent in the performance or has
intentionally not performed Executive’s material duties and responsibilities
hereunder, continuing for 10 days after receipt of written notice of such
performance or lack of performance, (d) Executive has committed acts of willful
dishonesty, fraud or material misconduct with respect to the business or
affairs of the Company, or (e) Executive has been found guilty of or has pled
nolo contendere to the commission of a felony offense.

             6.          Voluntary
Termination by Executive.  Executive may
terminate his employment with the Company at any time for any reason other than
for Good Reason (as defined below) upon delivering 30 days’ prior written
notice to the Company.  In the event of
any such termination, the Company shall pay Executive the Base Salary accrued
and unpaid through the date of termination, payable in accordance with the
Company’s normal payroll practices.

             7.          Termination
by Death or Disability.

                           (a)         Death.  If Executive dies during the Term, the
Company shall pay Executive’s estate the Base Salary through the end of the
Term (as determined without regard to the termination), payable in accordance
with the Company’s normal payroll practices.

                           (b)        Disability.  If, as a result of Executive’s incapacity
due to physical or mental illness or injury, Executive shall have been absent
from the full-time performance of his duties with the Company (i) for a period
of three consecutive months or (ii) for shorter periods aggregating 180 or more
business days in any 12-month period and, within 30 days after written notice
of termination is thereafter given by the Company, Executive shall not have
returned to the full-time performance of his duties, the Company may terminate
Executive’s employment with the Company. 
In the event of any such termination, the Company shall pay Executive
the Base Salary through the end of the Term (as determined without regard to
the termination), payable in accordance with the Company’s normal payroll
practices.

             8.          Termination
by Executive for Good Reason.  Executive may terminate his employment with
the Company for Good Reason at any time by delivering 30 days’ prior written
notice to the Company.  In the event of
any such termination, the Company shall pay Executive the Base Salary through
the end of the Term (as determined without regard to the termination), payable
in accordance with the Company’s normal payroll practices.  In addition, the Company will (a) continue
to pay Executive the Base Salary for a six month period after the end of the
Term (as determined without regard to the termination), payable in accordance with the Company’s normal payroll
practices.  As used herein,
“Good Reason” means (a) Executive has been assigned any duties inconsistent in
any material manner with, or suffered any adverse material change in,
Executive’s position, duties, responsibilities or status with the Company, (b)
the Company has reduced the Base Salary, or (c) the Company has failed to pay
the Base Salary, and in any case the Company fails to remedy such matter within
10 days of receiving written notice from Executive of his intention to
terminate his employment based thereon.

             9.          Covenant
Against Competition and Employment.  Executive shall not, directly or indirectly,
individually or on behalf of any Person (as defined below) other than the
Company, (i) for as long as Executive continues to receive the Base Salary
hereunder, and (ii) in the case of a termination of Executive’s employment with
the Company pursuant to Section 5 or 6 for an additional period of two years
after such termination:

                           (a)         engage in, have an equity or profit
interest in, or render services of any kind or nature to any Person engaged in
the Business within the Territory (as defined below);

                           (b)        solicit, call upon or attempt to obtain
business from any Customer (as defined below) for the purpose of providing that
Customer with any product or service provided by the Company or any competitive
product; or

                           (c)         employ or offer to employ any employee
of the Company.  For these purposes, an
employee of the Company shall be deemed to be an employee of the Company while
employed by the Company and for a period of 60 days thereafter.

             Nothing contained in this Section 9
shall be construed to prohibit Executive from owning either of record or
beneficially not more than 1% of the shares or other equity interest of any
publicly traded Person or continuing to own, as a passive investor, his
existing shares in High End Systems, Inc. 
Executive agrees that the foregoing covenants in this Section 9 impose a
reasonable restraint on Executive in light of the activities and business of
Company as of the date hereof and that the enforcement of the non-competition
provisions in this Section 9 by the Company will not interfere with Executive’s
ability to pursue a proper livelihood. 
Executive acknowledges and agrees that the enforcement of this Agreement
is necessary to ensure the preservation and continuity of the goodwill of the
Company.

             As used herein, the following terms
shall have the meanings indicated:

             “Business” means the design,
manufacture and/or distribution of automated or conventional lighting equipment
and/or related services.

             “Customer” means all Persons (a)
who purchased products from, or utilized the services of, the Company while
Executive was employed by the Company, (b) who Executive solicited on behalf of
the Company, (c) whose dealings with the Company were coordinated or
supervised, in whole or in part, by Executive, or (d) about whom Executive
obtained Confidential Information (as defined below).

             “Person” means any individual,
corporation, limited liability company, partnership, joint venture,
association, trust, unincorporated organization or other entity.

             “Territory” means anywhere in the
world.

             10.        Confidential
Information.  Executive shall
not, except with the prior written approval of the Company, disclose
Confidential Information to any Person, or use Confidential Information for
personal financial gain or other reason not in the Company’s best interest at
any time either during or after the Term for whatever reason, except that these
restrictions shall not apply to (a) information that shall become publicly
known through no fault of Executive, (b) information that is disclosed to
Executive by a third party that has legitimate and unrestricted possession
thereof and the unrestricted right to make such disclosure, (c) information
that Executive can demonstrate was within his legitimate and unrestricted
possession prior to the time of his employment with the Company, or (d) other
information not rising to the level of a trade secret at any time after two
years from and after the end of the Term. 
“Confidential Information” means all business records, trade secrets,
know-how concerning marketing, customer lists or compilations, sources of
supply, manufacturing techniques, pricing information, financial information,
personnel data, information contained in any documents prepared by or for the
Company and its employees at the Company’s expense or on the Company’s time or
otherwise in furtherance of the Company’s business, and made available only to
the Company and such of its authorized agents as may be necessary to further
the Company’s business, and other confidential information used and/or obtained
by Executive in the course of his employment by the Company.  Executive shall return to the Company all
Confidential Information and any and all copies of the same in his control upon
termination of employment with the Company for any reason whatsoever.

             11.        Assignment.  This Agreement may not be assigned or
transferred by Executive, in whole or in part, without the prior written
consent of the Company, and any assignment in violation of this Section shall
be void.  The Company shall have the
right to assign this Agreement and any of its rights hereunder to an affiliate
of the Company, or as a part of a sale or transfer of the stock, assets or
business of the Company or any substantial portion thereof.  This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto, and their respective heirs,
successors and permitted assigns.

             12.        Relief.  A breach or threatened breach of any of the
terms of this Agreement by Executive would result in material and irreparable
damage and injury to the Company, and it would be difficult or impossible to
establish the full monetary value of such damage.  Therefore, the Company shall be entitled to injunctive relief by
a court of appropriate jurisdiction in the event of Executive’s breach or
threatened breach of any of the terms hereunder, without the necessity of
having to post bond or other collateral in connection therewith.  The Company’s right to an injunction will
not prohibit the Company from pursuing other remedies, including the recovery
of damages.

             13.        Notice.  All notices and communications required or
permitted hereunder shall be in writing and may be given by (a) depositing the
same in the United States mail, addressed to the party to be notified, postage
prepaid and registered or certified with return receipt requested, (b)
telecopy, (c) overnight delivery service, or (d) hand delivery.  Such notice shall be deemed received (i) on
the first business day after it was actually received if sent by overnight
delivery service, (ii) on the day it was delivered if  hand delivered, (iii) on the day the telecopy is transmitted to
the proper telecopy number if sent by telecopy or (iv) on the third business
day following the date on which it is so mailed.  For purposes of notice, the address of the parties shall be:

If
to the Company:

Vari-Lite, Inc.

201 Regal Row

Dallas, Texas 75247

Telecopy:

Attn:    President

with
a copy (which shall not constitute notice) to:

Gardere Wynne Sewell LLP

1601 Elm Street

3000 Thanksgiving Tower

Dallas, Texas 75201

Telecopy:  214-999-3683

Attn: Alan J. Perkins

If
to Executive:

Bob Schacherl

5903 Hayden’s Cove

Austin, TX 78730

or such other
address as either party hereto shall specify pursuant to this Section 13 from
time to time.

             14.        Non-Waiver.  No failure on the part of either party
hereto to exercise, and no delay by either party hereto in exercising any
right, power, or remedy under this Agreement shall operate as a waiver thereof,
nor shall any single or partial exercise of any right, power or remedy by
either party hereto preclude any other or further exercise thereof or the
exercise by such party of any other right, power or remedy.  No express waiver or assent by either party
hereto of any breach of or default in any term or condition of this Agreement
by the other party shall constitute a waiver of or an assent to any succeeding
breach of or default in the same or any other term or condition hereof.

             15.        Amendments
and Modifications.  This
Agreement may be amended or modified only by a writing signed by both parties
hereto.

             16.        Governing
Law.  This
Agreement shall be construed in accordance with the laws of the State of Texas,
without regard to the choice of law provisions, statutes, regulations or
principles of this or any other jurisdiction.

             17.        Reformation
and Severability.  If any
provision of this Agreement is held to be illegal, invalid or unenforceable
under present or future laws effective during the term hereof, such provision
shall be fully severable and this Agreement shall be construed and enforced as
if such illegal, invalid or unenforceable provision never comprised a part
hereof, and the remaining provisions hereof shall remain in full force and
effect and shall not be affected by the illegal, invalid or unenforceable
provision or by its severance herefrom. 
Furthermore, in lieu of such illegal, invalid or unenforceable
provision, there shall be added automatically as part of this Agreement, a
provision as similar in its terms to such illegal, invalid or unenforceable
provision as may be possible and be legal, valid and enforceable.

             18.        Counterparts.  This Agreement may be executed
simultaneously in two or more counterparts, each of which shall be deemed an
original and all of which together shall constitute but one and the same
instrument. Facsimile transmission of any signed original document or
retransmission of any signed facsimile transmission shall be deemed the same as
delivery of an original.  At the request
of either party hereto, the parties hereto will confirm facsimile transmission
by signing a duplicate original document.

             IN WITNESS WHEREOF, the parties hereto
have executed this Agreement, as of the date first written above.

	 	Vari-Lite International, Inc.
	

	 
	 	By:	

	 	 	T. Clay Powers, President
	

	 	 
	 	

Bob Schacherl

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]