Document:

EXHIBIT 10.4

                                 INFORMAX, INC.

                 AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

         THIS AMENDED AND RESTATED  INVESTOR RIGHTS AGREEMENT (the  "AGREEMENT")
is entered into as of the 16th day of August, 2000, by and among INFORMAX, INC.,
a Delaware corporation (the "COMPANY"),  FBR Technology Venture Partners II, LP,
a Delaware limited  partnership  ("FBR") and Amersham  Pharmacia Biotech Inc., a
Delaware  corporation  ("APB" and together  with FBR, the  "INVESTORS"  and each
individually an "INVESTOR").

                                    RECITALS

         WHEREAS,  the Company and FBR entered into that certain Investor Rights
Agreement dated as of June 22, 1999 (the "ORIGINAL  INVESTOR RIGHTS  AGREEMENT")
in connection  with FBR's  purchase (the "SERIES A FINANCING")  of shares of the
Company's  Series A Preferred  Stock,  $0.01 par value per share (the  "SERIES A
STOCK"),  pursuant to that certain Series A Preferred  Stock Purchase  Agreement
dated as of June 22, 1999 (the "SERIES A PURCHASE AGREEMENT");

         WHEREAS,  the  Company  and the APB are  parties to a certain  Series B
Preferred Stock Purchase  Agreement (the "SERIES B PURCHASE  AGREEMENT") of even
date herewith,  pursuant to which the Company  proposes to sell and issue to APB
(the "SERIES B FINANCING") up to Nine Hundred Fifty Thousand Seven Hundred Forty
Seven  (950,747)  shares of the Company's  Series B Preferred  Stock,  $0.01 par
value per share (the "SERIES B STOCK");

         WHEREAS, in connection with the consummation of the Series B Financing,
the Company  and the  Investors  have  agreed to amend and restate the  Original
Investor  Rights   Agreement  to  provide  for  certain   registration   rights,
information rights and other rights as set forth in this Agreement; and

         WHEREAS, unless otherwise defined herein, capitalized terms used herein
shall be given the meanings ascribed to such terms in the Purchase Agreement.

         NOW,   THEREFORE,    in   consideration   of   the   mutual   promises,
representations,   warranties,  covenants  and  conditions  set  forth  in  this
Agreement and in the Purchase Agreement, the parties mutually agree as follows:

SECTION 1.        GENERAL

         1.1      DEFINITIONS.  As used in this  Agreement the  following  terms
shall have the following respective meanings:

                  "COMMON  STOCK" means the  authorized  Voting Common Stock and
Nonvoting Common Stock of the Company.

                                       1.
<PAGE>

                  "EXCHANGE ACT" means the  Securities  Exchange Act of 1934, as
amended,  or any similar federal  statute,  and the rules and regulations of the
SEC thereunder,  all as the same shall be in effect at the time.  Reference to a
particular  section  of the  Exchange  Act  shall  include  a  reference  to the
comparable section, if any, of any such similar federal statute.

                  "FAMILY MEMBER" means a person who is a spouse,  child, parent
or sibling of the Holder or one or more  trusts  established  for the  exclusive
benefit of such Holder and/or one or more of such persons.

                  "FORM  S-3" means  such form  under the  Securities  Act as in
effect  on the  date  hereof  or  any  successor  registration  form  under  the
Securities  Act  subsequently  adopted  by the SEC which  permits  inclusion  or
incorporation  of substantial  information by reference to other documents filed
by the Company with the SEC.

                  "HOLDER"  means  any  person  owning  of  record   Registrable
Securities that have not been sold to the public or pursuant to Rule 144 and any
assignee of record of such Registrable Securities to whom rights under Section 2
have been duly assigned in accordance with Section 2.11 hereof.

                  "INITIAL  OFFERING"  means the Company's first firm commitment
underwritten public offering of its Common Stock registered under the Securities
Act.

                  "REGISTER,"   "REGISTERED,"  and  "REGISTRATION"  refer  to  a
registration  effected  by  preparing  and filing a  registration  statement  in
compliance  with  the  Securities  Act,  and  the  declaration  or  ordering  of
effectiveness of such registration statement or document.

                  "REGISTRABLE SECURITIES" means (a) Common Stock of the Company
issued or  issuable  upon  conversion  of the shares of Series A Stock;  (b) any
Common  Stock of the  Company  issued as (or  issuable  upon the  conversion  or
exercise of any warrant,  right or other security which is issued as) a dividend
or other  distribution with respect to, or in exchange for or in replacement of,
such above-described  securities; (c) except for purposes of Section 2.2 hereof,
Common  Stock of the Company  issued or issuable  upon  conversion  of shares of
Series B Stock;  and (d) except for  purposes of Section 2.2 hereof,  any Common
Stock of the Company  issued as (or issuable upon the  conversion or exercise of
any  warrant,  right or other  security  which is issued as) a dividend or other
distribution  with  respect to, or in  exchange  for or in  replacement  of, the
securities  described  in  clause  (c)  above.  Notwithstanding  the  foregoing,
Registrable  Securities shall not include any securities sold by a person to the
public  or sold  pursuant  to Rule 144 or sold in a  transaction  in  which  the
transferor's  rights  under  Section 2 of this  Agreement  are not  assigned  in
accordance with this Agreement.

                  "REGISTRABLE  SECURITIES THEN OUTSTANDING" shall be the number
of shares  determined  by  calculating  the total number of shares of the Common
Stock  that are  Registrable  Securities  and  either  (a) are then  issued  and
outstanding  or (b) are issuable  pursuant to then  exercisable  or  convertible
securities.

                                       2.
<PAGE>

                  "REGISTRATION  EXPENSES"  shall mean all expenses  incurred by
the Company in  complying  with  Sections  2.2,  2.3 and 2.4 hereof,  including,
without limitation,  all registration and filing fees,  printing expenses,  fees
and disbursements of counsel for the Company,  reasonable fees and disbursements
of a single special counsel for the Holders,  blue sky fees and expenses and the
expense of any special audits  incident to or required by any such  registration
(but excluding the compensation of regular  employees of the Company which shall
be paid in any event by the Company).

                  "RULE 144" means Rule 144 under the  Securities  Act,  as such
rule  may be  amended  from  time to time,  or any  similar  rule or  regulation
hereafter adopted by the Commission.

                  "SEC"  or  "COMMISSION"  means  the  Securities  and  Exchange
Commission or any other Federal agency at the time  administering the Securities
Act.

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

                  "SELLING  EXPENSES" shall mean all underwriting  discounts and
selling commissions applicable to the sale of Registrable Securities.

                  "SHARES" shall mean the Series A Stock issued  pursuant to the
Series A Purchase  Agreement and held by FBR and its  permitted  assigns and the
Series B Stock issued pursuant to the Series B Stock Purchase Agreement and held
by APB and its permitted assigns.

SECTION 2.        RESTRICTIONS ON TRANSFER; REGISTRATION

         2.1      RESTRICTIONS ON TRANSFER.

                  (A)      Each Holder agrees not to make any disposition of all
or any portion of the Shares or Registrable Securities:

                           (I)      unless  and until  there is then in effect a
registration   statement   under  the  Securities  Act  covering  such  proposed
disposition and such  disposition is made in accordance  with such  registration
statement;

                           (II)     in   the   event   that   any   underwriting
arrangements  described  herein  require the Holders to refrain  from making any
such disposition;

                           (III)    unless and until (A) the  transferee of such
Shares or  Registrable  Securities  has agreed with the Company in writing to be
bound by and comply with the terms of this Agreement, (B) such Holder shall have
notified the Company of the proposed  disposition  and shall have  furnished the
Company with a detailed statement of the circumstances  surrounding the proposed
disposition,  and (C) if reasonably requested by the Company,  such Holder shall
have furnished the Company with an opinion of counsel,  reasonably  satisfactory
to the Company,  that such  disposition  will not require  registration  of such
shares under the Securities Act; or

                                       3.
<PAGE>

                           (IV)     to  any  Competitor  of  the  Company  in  a
private sale. For the purposes of this Agreement,  the term  "COMPETITOR"  means
any person, partnership,  limited liability company, corporation or other entity
(other than the Company) which is engaged as its principal line of business,  in
the  "Company's  Business."  For  the  purposes  of  this  Agreement,  the  term
"COMPANY'S  BUSINESS"  means the business of the  development  and  licensing of
pharma-informactic software tools of the type developed by the Company as of the
date hereof.

                           (V)      Notwithstanding the provisions of paragraphs
(i) through (iv) above, no such registration  statement under the Securities Act
or opinion of counsel shall be necessary for a transfer by a Holder which is (A)
a partnership to its partners or former partners in accordance with  partnership
interests,  (B) a limited  liability company to its members or former members in
accordance with their interest in the limited liability  company,  or (C) to the
Holder's  Family  Member  or trust  for the  benefit  of an  individual  Holder;
provided that in each case the  transferee  will be subject to the terms of this
Agreement to the same extent as if he were an original Holder hereunder.

                  (B)      Each certificate  representing  Shares or Registrable
Securities shall (unless otherwise permitted by the provisions of the Agreement)
be stamped or  otherwise  imprinted  with legends  substantially  similar to the
following (in addition to any legend required under  applicable state securities
laws):

                           THE SECURITIES  REPRESENTED HEREBY HAVE BEEN ACQUIRED
                           FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE
                           SECURITIES  ACT OF 1933 (THE "ACT") OR ANY APPLICABLE
                           STATE  SECURITIES  LAWS.  SUCH  SHARES  SHALL  NOT BE
                           OFFERED,  SOLD OR  OTHERWISE  TRANSFERRED,  ASSIGNED,
                           PLEDGED OR HYPOTHECATED  UNLESS AND UNTIL  REGISTERED
                           UNDER THE ACT OR UNLESS THE COMPANY  HAS  RECEIVED AN
                           OPINION OF COUNSEL  SATISFACTORY  TO THE  COMPANY AND
                           ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.

                           THE   TRANSFER   OF   SHARES   REPRESENTED   BY  THIS
                           CERTIFICATE ARE SUBJECT TO THE RESTRICTIONS SET FORTH
                           IN  AN  INVESTOR  RIGHTS   AGREEMENT  WHICH  CONTAINS
                           RESTRICTIONS  ON  TRANSFER  OTHER  THOSE  IMPOSED  BY
                           SECURITIES  LAWS.   COPIES  OF  THE  INVESTOR  RIGHTS
                           AGREEMENT  MAY BE  OBTAINED  AT NO  COST  BY  WRITTEN
                           REQUEST   MADE  BY  THE  HOLDER  OF  RECORD  OF  THIS
                           CERTIFICATE  TO THE  SECRETARY  OF THE COMPANY AT THE
                           COMPANY'S PRINCIPAL PLACE OF BUSINESS.

                  (C)      The Company  shall be obligated  to reissue  promptly
unlegended certificates at the request of any holder thereof if the holder shall
have obtained an opinion of

                                       4.
<PAGE>

counsel (which counsel may be counsel to the Company)  reasonably  acceptable to
the  Company to the effect  that the  securities  proposed to be disposed of may
lawfully be so disposed of without registration, qualification or legend.

                  (D)      Any legend  endorsed  on an  instrument  pursuant  to
applicable state securities laws and the stop-transfer instructions with respect
to such  securities  shall be removed upon receipt by the Company of an order of
the appropriate blue sky authority authorizing such removal.

         2.2      DEMAND REGISTRATION.

                  (A)      Subject to the conditions of this Section 2.2, if the
Company shall receive a written request from the Holders of not less than thirty
percent (30%) of the Registrable  Securities then  outstanding  (the "INITIATING
HOLDERS")  that the Company file a registration  statement  under the Securities
Act covering the registration of Registrable  Securities then  outstanding,  and
such offering  provides for an  anticipated  aggregate  offering  price,  net of
underwriting discounts and commissions,  of not less than Twenty Million Dollars
($20,000,000) (a "QUALIFIED PUBLIC  OFFERING"),  then the Company shall,  within
thirty (30) days of the receipt thereof,  give written notice of such request to
all  Holders  and,  subject  to the  limitations  of  this  Section  2.2 and the
registration procedures set forth in Section 2.7 hereof, use its best efforts to
effect,  as soon as  practicable,  to  register  under  the  Securities  Act all
Registrable Securities that the Holders request to be registered.

                  (B)      If the  Initiating  Holders  intend to distribute the
Registrable  Securities  covered by their  request by means of an  underwriting,
they shall so advise the  Company as a part of their  request  made  pursuant to
this  Section 2.2 or any request  pursuant to Section 2.4 and the Company  shall
include such  information in the written notice referred to in Section 2.2(a) or
Section 2.4(a), as applicable. In such event, the right of any Holder to include
its Registrable  Securities in such registration  shall be conditioned upon such
Holder's  participation in such  underwriting and the inclusion of such Holder's
Registrable  Securities in the underwriting to the extent provided  herein.  All
Holders proposing to distribute their securities through such underwriting shall
enter into an  underwriting  agreement in customary form with the underwriter or
underwriters  selected  for such  underwriting  by a majority in interest of the
Initiating  Holders  (which  underwriter  or  underwriters  shall be  reasonably
acceptable to the Company).  Notwithstanding any other provision of this Section
2.2 or Section  2.4,  if the  underwriter  advises the  Company  that  marketing
factors  require a limitation  of the number of  securities  to be  underwritten
(including Registrable  Securities) then the Company shall so advise all Holders
of Registrable Securities which would otherwise be underwritten pursuant hereto,
and the  number of shares  that may be  included  in the  underwriting  shall be
allocated  to the  Holders of such  Registrable  Securities  on a pro rata basis
based  on  the  number  of  Registrable  Securities  held  by all  such  Holders
(including the Initiating Holders); provided, however, that the number of shares
of Registrable  Securities to be included in such  underwriting and registration
shall not be  reduced  unless  all other  securities  of the  Company  are first
entirely  excluded  from the  underwriting  and  registration.  Any  Registrable
Securities  excluded or withdrawn from such underwriting shall be withdrawn from
the registration.

                                       5.
<PAGE>

                  (C)      Notwithstanding the foregoing,  the Company shall not
be required to effect a registration pursuant to Section 2.2(a):

                           (I)      prior  to  the  earlier  of  (A)  the  third
anniversary  of the date of this  Agreement or (B) one hundred eighty (180) days
following the effective  date of the  registration  statement  pertaining to the
Initial Offering;

                           (II)     after  the  Company  has  effected  two  (2)
registrations  pursuant  to Section  2.2(a),  and such  registrations  have been
declared or ordered effective;

                           (III)    during the period  starting with the date of
filing of, and ending on the date one hundred  eighty (180) days  following  the
effective date of the registration statement pertaining to the Initial Offering;
provided  that the Company  makes  reasonable  good faith  efforts to cause such
registration statement to become effective;

                           (IV)     if within  thirty  (30) days of receipt of a
written request from Initiating  Holders pursuant to Section 2.2(a), the Company
gives  notice to the  Holders of the  Company's  intention  to file its  Initial
Offering within ninety (90) days of such Company notice to the Holders;

                           (V)      if the  Company  shall  furnish  to  Holders
requesting a registration  statement pursuant to this Section 2.2, a certificate
signed by the Chairman of the Board  stating that in the good faith  judgment of
the Board of Directors of the Company, it would be seriously  detrimental to the
Company and its shareholders for such  registration  statement to be effected at
such time,  in which event the Company shall have the right to defer such filing
for a period of not more than ninety  (90) days after  receipt of the request of
the  Initiating  Holders;  provided  that such right to delay a request shall be
exercised by the Company not more than once in any twelve (12) month period; or

                           (VI)     if the Initiating Holders propose to dispose
of shares of Registrable  Securities that may be immediately  registered on Form
S-3 pursuant to a request made pursuant to Section 2.4 below.

         2.3      PIGGYBACK REGISTRATIONS.  The Company shall notify all Holders
of  Registrable  Securities  in writing at least  fifteen (15) days prior to the
filing of any registration  statement under the Securities Act for purposes of a
public  offering of  securities of the Company  (including,  but not limited to,
registration  statements  relating to secondary  offerings of  securities of the
Company,  but excluding  registration  statements  relating to employee  benefit
plans or with respect to corporate  reorganizations  or other transactions under
Rule 145 of the Securities  Act) and will afford each such Holder an opportunity
to  include  in such  registration  statement  all or  part of such  Registrable
Securities  held by such  Holder.  Each  Holder  desiring to include in any such
registration  statement all or any part of the Registrable Securities held by it
shall,  within  fifteen  (15) days  after the  above-described  notice  from the
Company, so notify the Company in writing.  Such notice shall state the intended
method of disposition of the Registrable  Securities by such Holder. If a Holder
decides not to include all of its  Registrable  Securities  in any  registration
statement  thereafter  filed by the  Company,  such  Holder  shall  nevertheless
continue  to

                                       6.
<PAGE>

have  the  right  to  include  any  Registrable  Securities  in  any  subsequent
registration statement or registration statements as may be filed by the Company
with respect to offerings of its  securities,  all upon the terms and conditions
set forth herein.

                  (A)      UNDERWRITING.  If the  registration  statement  under
which the Company  gives notice  under this  Section 2.3 is for an  underwritten
offering, the Company shall so advise the Holders of Registrable Securities.  In
such  event,  the right of any such  Holder  to be  included  in a  registration
pursuant  to  this  Section  2.3  shall  be   conditioned   upon  such  Holder's
participation   in  such   underwriting  and  the  inclusion  of  such  Holder's
Registrable  Securities in the underwriting to the extent provided  herein.  All
Holders  proposing  to  distribute  their  Registrable  Securities  through such
underwriting  shall enter into an underwriting  agreement in customary form with
the underwriter or underwriters  selected for such  underwriting by the Company.
Notwithstanding  any  other  provision  of the  Agreement,  if  the  underwriter
determines  in good faith that  marketing  factors  require a limitation  of the
number of shares to be  underwritten,  the number of shares that may be included
in the underwriting  pursuant to this Section 2.3 shall be allocated,  first, to
the  Company;  second,  to the  Holders on a pro rata  basis  based on the total
number  of  Registrable  Securities  held  by the  Holders;  and  third,  to any
shareholder  of the Company  (other than a Holder) on a pro rata basis.  No such
reduction shall reduce the amount of securities of the selling Holders  included
in the  registration  below  twenty-five  percent  (25%) of the total  amount of
securities  included in such  registration,  unless such offering is the Initial
Offering  and such  registration  does not include  shares of any other  selling
shareholders,  in which event any or all of the  Registrable  Securities  of the
Holders may be excluded in accordance with the immediately  preceding  sentence.
In no event will  shares of any other  selling  shareholder  be included in such
registration  which would  reduce the number of shares  which may be included by
Holders  without the written  consent of Holders of not less than  sixty-six and
two-thirds percent (66 2/3%) of the Registrable  Securities  proposed to be sold
in  the  offering.   If  any  Holder  disapproves  of  the  terms  of  any  such
underwriting,  such Holder may elect to withdraw  therefrom by written notice to
the Company and the underwriter, delivered at least ten (10) business days prior
to the effective date of the registration statement.  Any Registrable Securities
excluded or withdrawn  from such  underwriting  shall be excluded and  withdrawn
from the registration. For any Holder which is a partnership or corporation, the
partners,  retired partners and shareholders of such Holder,  or the estates and
Family Members of any such partners and retired  partners and any trusts for the
benefit of any of the foregoing  person shall be deemed to be a single "HOLDER",
and any pro rata reduction with respect to such "HOLDER" shall be based upon the
aggregate  amount of shares carrying  registration  rights owned by all entities
and individuals included in such "HOLDER," as defined in this sentence.

                  (B)      RIGHT TO TERMINATE  REGISTRATION.  The Company  shall
have the right to terminate or withdraw any  registration  initiated by it under
this Section 2.3 prior to the effectiveness of such registration  whether or not
any  Holder  has  elected  to  include  securities  in  such  registration.  The
Registration  Expenses  of such  withdrawn  registration  shall  be borne by the
Company in accordance with Section 2.5 hereof.

         2.4      FORM S-3 REGISTRATION.  In case the Company shall receive from
any Holder or Holders of  Registrable  Securities a written  request or requests
that the Company  effect a  registration  on Form S-3 (or any  successor to Form
S-3) or any similar short-form registration

                                       7.
<PAGE>

statement and any related  qualification  or compliance with respect to all or a
part of the Registrable  Securities owned by such Holder or Holders, the Company
will:

                  (A)      promptly   give   written   notice  of  the  proposed
registration,  and any related qualification or compliance, to all other Holders
of Registrable Securities; and

                  (B) as soon as practicable,  effect such  registration and all
such  qualifications  and compliances as may be so requested and as would permit
or facilitate the sale and  distribution of all or such portion of such Holder's
or Holders'  Registrable  Securities as are specified in such request,  together
with all or such portion of the  Registrable  Securities  of any other Holder or
Holders  joining in such  request as are  specified in a written  request  given
within  fifteen (15) days after receipt of such written notice from the Company;
provided,  however,  that the Company  shall not be obligated to effect any such
registration, qualification or compliance pursuant to this Section 2.4:

                           (I)      if Form S-3 (or any  successor  to Form S-3)
is not available for such offering by the Holders;

                           (II)     if the Holders, together with the holders of
any other securities of the Company entitled to inclusion in such  registration,
propose to sell Registrable  Securities and such other securities (if any) at an
aggregate  price to the  public  of less  than  Five  Hundred  Thousand  dollars
($500,000);

                           (III)    if within  thirty  (30) days of receipt of a
written request to effect such Form S-3  registration,  the Company gives notice
to the  Holders of the  Company's  intention  to make a public  offering  within
ninety (90) days of the Company's notice to the Holders;

                           (IV)     if the Company  shall furnish to the Holders
a  certificate  signed by the  Chairman of the Board of Directors of the Company
stating  that in the  good  faith  judgment  of the  Board of  Directors  of the
Company,  it would be seriously  detrimental to the Company and its shareholders
for such Form S-3  registration  to be effected at such time, in which event the
Company  shall have the right to defer the  filing of the Form S-3  registration
statement  for a period of not more than ninety  (90) days after  receipt of the
request of the Holder or Holders  under this  Section 2.4;  provided,  that such
right to delay a request shall be exercised by the Company not more than once in
any twelve (12) month period;

                           (V)      if the Company  has,  within the twelve (12)
month  period  preceding  the date of such  request,  already  effected  one (1)
registration on Form S-3 for the Holders pursuant to this Section 2.4; or

                           (VI)     in any particular  jurisdiction in which the
Company  would be  required  to qualify to do  business  or to execute a general
consent to service of process in effecting such  registration,  qualification or
compliance.

                  (C)      Subject to the  foregoing,  the Company  shall file a
Form S-3 registration  statement  covering the Registrable  Securities and other
securities so requested to be registered as

                                       8.
<PAGE>

soon as  practicable  after  receipt of the request or requests of the  Holders.
Registrations  effected  pursuant  to this  Section  2.4 shall not be counted as
demands for registration or registrations  effected  pursuant to Sections 2.2 or
2.3, respectively.

                  (D)      Notwithstanding the foregoing,  the Company shall not
be required  to effect a  registration  pursuant  to this  Section 2.4 after the
Company  has  effected  three (3)  registrations  on Form S-3  pursuant  to this
Section  2.4 (or four (4)  registrations  on Form  S-3 if the  Holders  have not
demanded a registration  pursuant to Section 2.2), and such  registrations  have
been declared or ordered effective;  provided,  that, such limitations shall not
apply to any registrations  pursuant to this Section 2.4 requested by APB or any
of its permitted assigns.

         2.5      NO  REGISTRATION  OF  SERIES A STOCK AND  SERIES B STOCK.  The
registration rights of the Holders set forth in this Agreement apply only to the
Common  Stock of the Company and nothing in this  Agreement  shall  obligate the
Company to register any of the Series A Stock or Series B Stock.

         2.6      EXPENSES  OF  REGISTRATION.  Except as  specifically  provided
herein, all Registration  Expenses incurred in connection with any registration,
qualification or compliance  pursuant to Section 2.2 or any  registration  under
Section 2.3 or Section  2.4 herein  shall be borne by the  Company.  All Selling
Expenses incurred in connection with any registrations hereunder, shall be borne
by the  holders of the  securities  so  registered  pro rata on the basis of the
number of shares so registered.  The Company shall not, however,  be required to
pay for the expenses of any  registration  proceeding begun pursuant to Sections
2.2 or 2.4,  the  request  of  which  has  been  subsequently  withdrawn  by the
Initiating  Holders,  unless (a) the  withdrawal is based upon material  adverse
information  concerning  the Company of which the  Initiating  Holders  were not
aware  at the  time of  such  request;  or (b)  the  Holders  of a  majority  of
Registrable   Securities   agree  to  forfeit   their  right  to  one  requested
registration  pursuant to Section 2.2 or Section  2.4, as  applicable  (in which
event such right shall be forfeited by all Holders). If the Holders are required
to pay the Registration Expenses, such expenses shall be borne by the holders of
securities (including  Registrable  Securities)  requesting such registration in
proportion to the number of shares for which registration was requested.  If the
Company is required  to pay the  Registration  Expenses of a withdrawn  offering
pursuant to clause (a) above,  then the Holders  shall not forfeit  their rights
pursuant to Section 2.2 or Section 2.4 to a demand registration.

         2.7      OBLIGATIONS  OF THE COMPANY.  Whenever  required to effect the
registration of any Registrable Securities,  the Company shall, as expeditiously
as reasonably possible:

                  (A)      Prepare   and  file  with  the  SEC  a   registration
statement  with respect to such  Registrable  Securities  and use all reasonable
efforts to cause such registration statement to become effective,  and, upon the
request of the Holders of a majority of the  Registrable  Securities  registered
thereunder,  keep such  registration  statement  effective for up to thirty (30)
days or, if earlier, until the Holder or Holders have completed the distribution
related  thereto.  The Company  shall not be  required to file,  cause to become
effective or maintain  the  effectiveness  of any  registration  statement  that
contemplates  a  distribution  of securities  on a delayed or  continuous  basis
pursuant to Rule 415 under the Securities Act.

                                       9.
<PAGE>

                  (B)      Prepare  and file  with the SEC such  amendments  and
supplements to such registration statement and the prospectus used in connection
with  such  registration  statement  as may be  necessary  to  comply  with  the
provisions  of  the  Securities  Act  with  respect  to the  disposition  of all
securities  covered by such  registration  statement for the period set forth in
Section 2.7(a) above.

                  (C)      Furnish  to the  Holders  such  number of copies of a
prospectus,   including  a  preliminary  prospectus,   in  conformity  with  the
requirements  of the  Securities  Act,  and  such  other  documents  as they may
reasonably  request  in order  to  facilitate  the  disposition  of  Registrable
Securities owned by them.

                  (D)      Use its  reasonable  best  efforts  to  register  and
qualify the securities  covered by such registration  statement under such other
securities  or blue  sky  laws of such  jurisdictions  as  shall  be  reasonably
requested by the  Holders;  provided  that the Company  shall not be required in
connection  therewith or as a condition  thereto to qualify to do business or to
file  a  general   consent  to  service  of  process  in  any  such   states  or
jurisdictions.

                  (E)      In the  event of any  underwritten  public  offering,
enter into and perform its obligations under an underwriting agreement, in usual
and customary  form,  with the managing  underwriter(s)  of such offering.  Each
Holder  participating in such underwriting shall also enter into and perform its
obligations under such an agreement.

                  (F)      Notify each Holder of Registrable  Securities covered
by such registration statement at any time when a prospectus relating thereto is
required to be delivered  under the Securities Act of the happening of any event
as a result of which the prospectus included in such registration  statement, as
then in effect,  includes  an untrue  statement  of a material  fact or omits to
state a material  fact  required to be stated  therein or  necessary to make the
statements  therein  not  misleading  in the  light  of the  circumstances  then
existing.

                  (G)      Use its best  efforts  to  furnish,  on the date that
such Registrable  Securities are delivered to the underwriters for sale, if such
securities are being sold through underwriters, (i) an opinion, dated as of such
date,  of the  counsel  representing  the  Company  for  the  purposes  of  such
registration,  in form and substance as is customarily  given to underwriters in
an underwritten public offering, addressed to the underwriters, if any, and (ii)
a  letter  dated  as  of  such  date,  from  the  independent  certified  public
accountants  of the Company,  in form and substance as is  customarily  given by
independent  certified  public  accountants to  underwriters  in an underwritten
public offering addressed to the underwriters.

         2.8      TERMINATION OF REGISTRATION  RIGHTS.  All registration  rights
granted under Section 2.2 shall  terminate and be of no further force and effect
five (5) years after the date of the Company's Initial Offering.  In addition, a
Holder's  registration rights shall expire if (a) such Holder (together with its
affiliates,  partners and former  partners)  holds less than one percent (1%) of
the  Registrable  Securities,  or (b)  all  Registrable  Securities  held by and
issuable to such Holder (and its affiliates,  partners, former partners, members
and former  members)  may be sold  under  Rule 144  during  any ninety  (90) day
period;  provided,  that,  the  limitation  in clause (a) shall not apply to any
registration rights of APB or its permitted assigns.

                                      10.
<PAGE>

         2.9      DELAY OF REGISTRATION; FURNISHING INFORMATION.

                  (A)      No Holder  shall  have any right to obtain or seek an
injunction restraining or otherwise delaying any such registration as the result
of any  controversy  that might  arise with  respect  to the  interpretation  or
implementation of this Section 2.

                  (B)      It shall be a condition  precedent to the obligations
of the Company to take any action  pursuant to Sections 2.2, 2.3 or 2.4 that the
selling  Holders  shall  furnish  to  the  Company  such  information  regarding
themselves,  the Registrable  Securities held by them and the intended method of
disposition of such  securities as shall be required to effect the  registration
of their Registrable Securities.

                  (C)      The Company shall have no obligation  with respect to
any registration requested pursuant to Section 2.2 or Section 2.4 if, due to the
operation of Section 2.2(b),  the number of shares or the anticipated  aggregate
offering price of the Registrable  Securities to be included in the registration
does not equal or exceed the  anticipated  aggregate  offering price required to
trigger the Company's  obligation to initiate such  registration as specified in
Section 2.2 or Section 2.4, as applicable.

         2.10     INDEMNIFICATION.  In the event any Registrable  Securities are
included in a registration statement under Sections 2.2, 2.3 or 2.4:

                  (A)      To the extent  permitted  by law,  the  Company  will
indemnify and hold harmless each Holder, the partners, officers and directors of
each Holder,  any underwriter (as defined in the Securities Act) for such Holder
and each  person,  if any, who controls  such Holder or  underwriter  within the
meaning of the Securities Act or the Exchange Act,  against any losses,  claims,
damages,  or  liabilities  (joint or several)  to which they may become  subject
under the  Securities  Act,  the  Exchange  Act or other  federal  or state law,
insofar as such losses,  claims,  damages or liabilities  (or actions in respect
thereof)  arise  out of or are  based  upon  any  of the  following  statements,
omissions or violations  (collectively  a "VIOLATION")  by the Company:  (i) any
untrue  statement or alleged  untrue  statement of a material fact  contained in
such  registration  statement,  including  any  preliminary  prospectus or final
prospectus contained therein or any amendments or supplements thereto,  (ii) the
omission or alleged  omission to state  therein a material  fact  required to be
stated therein,  or necessary to make the statements therein not misleading,  or
(iii) any violation or alleged  violation by the Company of the Securities  Act,
the Exchange Act, any state securities law or any rule or regulation promulgated
under the  Securities  Act,  the  Exchange  Act or any state  securities  law in
connection with the offering  covered by such  registration  statement;  and the
Company will pay as incurred to each such Holder,  partner,  officer,  director,
underwriter  or controlling  person for any legal or other  expenses  reasonably
incurred by them in connection  with  investigating  or defending any such loss,
claim,  damage,  liability  or  action;  provided  however,  that the  indemnity
agreement  contained in this Section  2.10(a) shall not apply to amounts paid in
settlement  of any  such  loss,  claim,  damage,  liability  or  action  if such
settlement is effected  without the consent of the Company,  which consent shall
not be unreasonably  withheld,  nor shall the Company be liable in any such case
for any such loss,  claim,  damage,  liability  or action to the extent  that it
arises out of or is based upon a Violation  which occurs in reliance upon and in
conformity with written  information  furnished

                                      11.
<PAGE>

expressly for use in connection with such registration by such Holder,  partner,
officer, director, underwriter or controlling person of such Holder.

                  (B)      To the extent  permitted by law, each Holder will, if
Registrable  Securities held by such Holder are included in the securities as to
which  such  registration   qualifications  or  compliance  is  being  effected,
indemnify and hold harmless the Company, each of its directors, its officers and
each  person,  if any,  who  controls  the  Company  within  the  meaning of the
Securities Act, any underwriter  and any other Holder selling  securities  under
such registration statement or any of such other Holder's partners, directors or
officers or any person who  controls  such Holder,  against any losses,  claims,
damages  or  liabilities  (joint or  several)  to which the  Company or any such
director,  officer,  controlling  person,  underwriter or other such Holder,  or
partner, director, officer or controlling person of such other Holder may become
subject  under the  Securities  Act, the Exchange Act or other  federal or state
law,  insofar as such  losses,  claims,  damages or  liabilities  (or actions in
respect  thereto) arise out of or are based upon any Violation,  in each case to
the extent (and only to the extent) that such Violation  occurs in reliance upon
and in  conformity  with written  information  furnished by such Holder under an
instrument duly executed by such Holder and stated to be specifically for use in
connection with such registration; and each such Holder will pay as incurred any
legal or other expenses reasonably  incurred by the Company (including,  without
limitation,  any expenses payable by the Company pursuant to Section 2.6 hereof)
or any such director, officer,  controlling person, underwriter or other Holder,
or partner,  officer,  director or  controlling  person of such other  Holder in
connection  with  investigating  or  defending  any such  loss,  claim,  damage,
liability  or  action  if it is  judicially  determined  that  there  was such a
Violation;  provided,  however,  that the indemnity  agreement contained in this
Section  2.10(b) shall not apply to amounts paid in settlement of any such loss,
claim,  damage,  liability or action if such settlement is effected  without the
consent  of the  Holder,  which  consent  shall  not be  unreasonably  withheld;
provided  further,  that in no event shall any indemnity under this Section 2.10
exceed the net proceeds from the offering received by such Holder.

                  (C)      Promptly after receipt by an indemnified  party under
this Section 2.10 of notice of the  commencement  of any action  (including  any
governmental action), such indemnified party will, if a claim in respect thereof
is to be made against any indemnifying party under this Section 2.10, deliver to
the  indemnifying  party a written  notice of the  commencement  thereof and the
indemnifying  party shall have the right to  participate  in, and, to the extent
the indemnifying  party so desires,  jointly with any other  indemnifying  party
similarly  noticed,   to  assume  the  defense  thereof  with  counsel  mutually
satisfactory to the parties; provided,  however, that an indemnified party shall
have the right to retain its own counsel,  with the fees and expenses to be paid
by the indemnifying  party, if  representation  of such indemnified party by the
counsel retained by the indemnifying  party would be inappropriate due to actual
or potential  differing  interests  between such indemnified party and any other
party  represented  by such counsel in such  proceeding.  The failure to deliver
written  notice  to the  indemnifying  party  within  a  reasonable  time of the
commencement  of any such action,  if materially  prejudicial  to its ability to
defend such action,  shall relieve such  indemnifying  party of any liability to
the  indemnified  party under this Section 2.10,  but the omission so to deliver
written  notice to the  indemnifying  party will not relieve it of any liability
that it may have to any  indemnified  party  otherwise  than under this  Section
2.10.

                                      12.
<PAGE>

                  (D)      If the  indemnification  provided for in this Section
2.10 is held  by a court  of  competent  jurisdiction  to be  unavailable  to an
indemnified  party with respect to any losses,  claims,  damages or  liabilities
referred  to  herein,  the  indemnifying  party,  in lieu of  indemnifying  such
indemnified  party  thereunder,  shall to the extent permitted by applicable law
contribute to the amount paid or payable by such  indemnified  party as a result
of such loss, claim, damage or liability in such proportion as is appropriate to
reflect the relative fault of the indemnifying  party on the one hand and of the
indemnified party on the other in connection with the Violation(s) that resulted
in such  loss,  claim,  damage  or  liability,  as well  as any  other  relevant
equitable  considerations.  The relative fault of the indemnifying  party and of
the  indemnified  party shall be  determined  by a court of law by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission to state a material fact relates to information supplied by
the  indemnifying  party or by the indemnified  party and the parties'  relative
intent,  knowledge,  access to information and opportunity to correct or prevent
such statement or omission; provided, that in no event shall any contribution by
a Holder  hereunder  exceed the net proceeds from the offering  received by such
Holder.

                  (E)      The obligations of the Company and Holders under this
Section 2.10 shall survive completion of any offering of Registrable  Securities
in  a  registration  statement  and  the  termination  of  this  Agreement.   No
indemnifying  party,  in the  defense  of any such claim or  litigation,  shall,
except  with the  consent  of each  indemnified  party,  consent to entry of any
judgment or enter into any settlement which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such  indemnified  party
of a release from all liability in respect to such claim or litigation.

                  (F)      The foregoing indemnity agreements of the Company and
Holders  are  subject  to the  condition  that,  insofar  as they  relate to any
Violation  made in a preliminary  prospectus  but  eliminated or remedied in the
amended  prospectus on file with the SEC at the time the registration  statement
in  question  becomes  effective  or the amended  prospectus  filed with the SEC
pursuant to SEC Rule 424(b) (the "FINAL  PROSPECTUS"),  such indemnity agreement
shall not inure to the  benefit of any person if a copy of the Final  Prospectus
was  furnished  to the  indemnified  party and was not  furnished  to the person
asserting  the  loss,  liability,  claim or  damage at or prior to the time such
action is required by the Securities Act.

         2.11     ASSIGNMENT  OF  REGISTRATION  RIGHTS.  The rights to cause the
Company to register  Registrable  Securities  pursuant to this  Section 2 may be
assigned by a Holder to a transferee or assignee of Registrable Securities which
(a) is a subsidiary,  parent, general partner, limited partner, retired partner,
member or retired member of a Holder,  (b) is a Holder's  Family Member or trust
for the benefit of an individual Holder, or (c) acquires at least twenty percent
(20%) of the shares of Registrable  Securities (as adjusted for stock splits and
combinations); provided, however, (i) the transferor shall, within ten (10) days
after such  transfer,  furnish  to the  Company  written  notice of the name and
address of such  transferee or assignee and the securities with respect to which
such registration rights are being assigned and (ii) such transferee shall agree
in writing with the Company to be subject to all  restrictions set forth in this
Agreement.  Notwithstanding  the  foregoing,  the rights to cause the Company to
register  Registrable  Securities pursuant to this Section 2 may not be assigned
by a Holder to a  transferee  or assignee  who is a  Competitor  of the Company.
Notwithstanding anything to the contrary, no transfer of shares will

                                      13.
<PAGE>

require  the  Company  to  effect a  registration  of  shares  in  excess of the
limitations set forth in Sections 2.2, 2.3 and 2.4 of this Agreement.

         2.12     AMENDMENT  OF  REGISTRATION  RIGHTS.  Any  provision  of  this
Section 2 may be  amended  and the  observance  thereof  may be  waived  (either
generally   or  in  a   particular   instance   and  either   retroactively   or
prospectively),  only with the written consent of the Company and the Holders of
at  least  sixty  six  and  two-thirds  percent  (66  2/3%)  of the  Registrable
Securities then outstanding. Any amendment or waiver effected in accordance with
this  Section  2.12  shall be  binding  upon each  Holder  and the  Company.  By
acceptance  of any  benefits  under  this  Section  2,  Holders  of  Registrable
Securities hereby agree to be bound by the provisions hereunder.

         2.13     LIMITATION ON SUBSEQUENT  REGISTRATION  RIGHTS. After the date
of this Agreement,  the Company shall not,  without the prior written consent of
the Holders of sixty six and  two-thirds  percent  (66 2/3%) of the  Registrable
Securities  then  outstanding,  enter  into any  agreement  with any  holder  or
prospective holder of any securities of the Company that would grant such holder
registration  rights  pari  passu or  senior  to those  granted  to the  Holders
hereunder.

         2.14     "MARKET   STAND-OFF"    AGREEMENT;    AGREEMENT   TO   FURNISH
INFORMATION.  Each Holder hereby agrees that such Holder shall not sell, pledge,
transfer, make any short sale of, grant any option for the purchase of, or enter
into any hedging or similar transaction with the same economic effect as a sale,
any Common Stock (or other securities) of the Company held by such Holder (other
than  those  included  in  the  registration)  for a  period  specified  by  the
representative  of the underwriters of Common Stock (or other securities) of the
Company not to exceed one hundred eighty (180) days following the effective date
of a  registration  statement  of the Company  filed under the  Securities  Act;
provided  that (i) such  agreement  shall  apply only to the  Company's  Initial
Offering;  and (ii) the Company shall have used its  reasonable  best efforts to
cause all  Holders of the  Company's  voting  securities  to enter into  similar
agreements;  and (iii) all officers and  directors of the Company and holders of
at least one percent (1%) of the Company's voting  securities enter into similar
agreements.

         Each Holder agrees to execute and deliver such other  agreements as may
be reasonably  requested by the Company or the underwriter  which are consistent
with the foregoing or which are  necessary to give further  effect  thereto.  In
addition,  if requested by the Company or the representative of the underwriters
of Common Stock (or other securities) of the Company, each Holder shall provide,
within ten (10) days of such request, such information as may be required by the
Company or such  representative  in connection with the completion of any public
offering of the Company's securities pursuant to a registration  statement filed
under the Securities Act. The  obligations  described in this Section 2.14 shall
not apply to a registration  relating  solely to employee  benefit plans on Form
S-1 or Form S-8 or similar  forms that may be  promulgated  in the future,  or a
registration relating solely to a Commission Rule 145 transaction on Form S-4 or
similar  forms that may be  promulgated  in the  future.  The Company may impose
stop-transfer  instructions with respect to the shares of Common Stock (or other
securities)  subject  to  the  foregoing  restriction  until  the  end  of  said
one-hundred eighty (180) day period.

                                      14.
<PAGE>

         2.15     RULE 144  REPORTING.  With a view to making  available  to the
Holders  the  benefits  of certain  rules and  regulations  of the SEC which may
permit  the  sale  of  the   Registrable   Securities  to  the  public   without
registration, the Company agrees to use its best efforts to:

                  (A)      Make and keep public information available,  as those
terms are  understood  and defined in SEC Rule 144 or any  similar or  analogous
rule promulgated under the Securities Act, at all times after the effective date
of the first registration filed by the Company for an offering of its securities
to the general public;

                  (B)      File with the SEC,  in a timely  manner,  all reports
and other documents required of the Company under the Exchange Act; and

                  (C)      So long as a Holder owns any Registrable  Securities,
furnish to such  Holder  forthwith  upon  request:  a written  statement  by the
Company as to its compliance with the reporting requirements of said Rule 144 of
the  Securities  Act,  and of the  Exchange Act (at any time after it has become
subject to such  reporting  requirements);  a copy of the most recent  annual or
quarterly  report of the  Company;  and such other  reports and  documents  as a
Holder may  reasonably  request in availing  itself of any rule or regulation of
the SEC allowing it to sell any such securities without registration.

SECTION 3.        COVENANTS OF THE COMPANY

         3.1      BASIC FINANCIAL INFORMATION AND REPORTING.

                  (A)      The Company will  maintain  true books and records of
account  in which  full and  correct  entries  will be made of all its  business
transactions pursuant to a system of accounting  established and administered in
accordance with generally accepted accounting  principles  consistently applied,
and will set aside on its books all such proper  accruals  and reserves as shall
be required under generally accepted accounting principles consistently applied.

                  (B)      As soon as  practicable  after the end of each fiscal
year of the Company,  and in any event within ninety (90) days  thereafter,  the
Company will furnish each Investor a balance sheet of the Company, as at the end
of such fiscal year,  and a statement of income and a statement of cash flows of
the Company,  for such year, all prepared in accordance with generally  accepted
accounting  principles  consistently  applied and setting  forth in each case in
comparative  form the figures for the previous  fiscal year,  all in  reasonable
detail.  Such financial  statements shall be accompanied by a report and opinion
thereon by independent  public  accountants of national standing selected by the
Company's Board of Directors.

                  (C)      The Company will furnish  each  Investor,  as soon as
practicable  after the end of each month,  and in any event  within  twenty (20)
days  thereafter,  a  balance  sheet of the  Company  as of the end of each such
monthly  period,  and a statement of income and a statement of cash flows of the
Company  for such period and for the  current  fiscal year to date,  prepared in
accordance with generally  accepted  accounting  principles,  with the exception
that no notes need be attached to such statements and year-end audit adjustments
may not have been made.

                                      15.
<PAGE>

                  (D)      So long as an Investor  (with its  affiliates)  shall
own  not  less  than  one  hundred  thousand  (100,000)  shares  of  Registrable
Securities (as adjusted for stock splits and combinations) (a "MAJOR INVESTOR"),
the Company will furnish each such Major Investor at least sixty (60) days prior
to the  beginning  of each  fiscal  year an annual  operating  plan and  budget,
prepared  on a  monthly  basis  for  the  ensuing  fiscal  year,  and on a basis
consistent  with  prior  periods  (including,  among  other  items,  appropriate
reserves,  accruals and provisions for income taxes) and  representing  the best
estimate of the Company based upon available information. The Company shall also
furnish to such Major  Investor,  within a reasonable  time of its  preparation,
amendments to the annual  budget,  if any. Such budget shall include  underlying
assumptions  and a brief  qualitative  description  of the Company's plan by the
Chief Executive Officer in support of that budget.

                  (E)      The Company  will notify  each  Investor,  as soon as
practicable,  and in any event  within  ten (10) days of  discovery,  of (i) any
event (including  pending or threatened  litigation) which could have a material
adverse  effect upon the  financial  condition or results of  operations  of the
Company  considered  in the  aggregate;  (ii) any change in any material fact or
circumstance represented or warranted in this Agreement,  (iii) a default or any
event or occurrence  which with the lapse of time or notice or both could become
a default under the Purchase  Agreement and (iv) a material default or any event
or  occurrence  which  with the lapse of time or notice or both  could  become a
default  under any of the  Company's  material  agreements.  Such  notice  shall
contain a reasonably detailed statement outlining such default or event, and the
Company's proposed response.

                  (F)      In the event the Company fails to provide the reports
or financial  statements  required by this Section 3.1, the Major  Investors may
give the Company notice requesting  immediate  delivery of such reports.  If the
Company  fails to deliver such reports upon receipt of such notice,  then any of
the Major  Investors  shall have the right and authority,  at the Company's sole
expense, to request an audit by a single accounting firm of its or their choice,
such that the reports or financial  statements are produced to its or their sole
satisfaction.

         3.2      INSPECTION RIGHTS. Each Major Investor shall have the right to
visit  and  inspect  any  of  the  properties  of  the  Company  or  any  of its
subsidiaries,  and to discuss the affairs,  finances and accounts of the Company
or any of its subsidiaries with its officers,  and to review such information as
is  reasonably  requested  all at such  reasonable  times and as often as may be
reasonably requested; provided, however, that the Company shall not be obligated
under this  Section  3.2 with  respect to a  competitor  of the  Company or with
respect to information which the Board of Directors  determines in good faith is
confidential and should not, therefore, be disclosed.

         3.3      CONFIDENTIALITY  OF RECORDS.  Each Investor agrees to use, and
to use its best efforts to insure that its authorized  representatives  use, the
same  degree  of care as such  Investor  uses to  protect  its own  confidential
information  to keep  confidential  any  information  furnished  to it which the
Company  identifies  as  being  confidential  or  proprietary  (so  long as such
information is not in the public domain), except that such Investor may disclose
such  proprietary  or  confidential  information  to any partner,  subsidiary or
parent of such  Investor for the purpose of

                                      16.
<PAGE>

evaluating its investment in the Company as long as such partner,  subsidiary or
parent is advised of, and agrees to comply with, the confidentiality  provisions
of this Section 3.3.

         3.4      RESERVATION  OF SHARES.  The Company will at all times reserve
and keep  available,  solely for issuance and delivery  upon  conversion  of the
Preferred Stock,  shares of Common Stock sufficient to effectuate the conversion
of all such  shares of the  Preferred  Stock at the then  applicable  conversion
rate.

         3.5      STOCK  VESTING.  Unless  otherwise  approved  by the  Board of
Directors  (including  the approval of the director  designated  by holders of a
majority of shares of the Series A Stock (the  "Series A Board  Designee"),  all
stock options and other stock equivalents issued pursuant to agreements executed
by the Company,  except for agreements executed prior to, or agreements executed
based on  offers  made  prior  to,  the  date of this  Agreement  to  employees,
directors,  consultants, and other service providers shall be subject to vesting
as follows: (a) twenty-five percent (25%) of such stock shall vest at the end of
the first year  following  the earlier of the date of issuance or such  person's
services  commencement date with the company, and (b) seventy-five percent (75%)
of such stock shall vest over the remaining three (3) year period  subsequent to
the end of the one (1) year  period  described  in  subsection  (a) above.  With
respect to any  shares of stock  purchased  by any such  person,  the  Company's
repurchase  option  shall  provide  that  upon  such  person's   termination  of
employment or service with the Company,  with or without  cause,  the Company or
its assignee (to the extent  permissible  under  applicable  securities laws and
other laws) shall have the option to  purchase  at cost any  unvested  shares of
stock held by such person.

         3.6      OPTION  POOL.  Unless  otherwise  approved  by  the  Board  of
Directors  (including the approval of the Series A Board Designee),  the Company
will not  increase  the number of shares  reserved  under the  Company's  equity
incentive plan.

         3.7      KEY MAN  INSURANCE.  Subject to the  approval  of the Board of
Directors,  the Company will use its best efforts to obtain and maintain in full
force and  effect  term life  insurance  in the  amount of Two  Million  Dollars
($2,000,000)  on the lives of each of Alex Titomirov and Vadim  Babenko;  naming
the Company as beneficiary.

         3.8      OBSERVATION  RIGHTS.  In the  event  FBR (i)  does  not have a
designee  elected  to the  Company's  Board  of  Directors  and  (ii) is a Major
Investor, the Company shall allow one representative designated by FBR to attend
all meetings of the Company's Board of Directors in a nonvoting capacity, and in
connection  therewith,  the Company shall give such representative copies of all
notices,  minutes, consents and other materials,  financial or otherwise,  which
the Company  provides to its Board of  Directors;  provided,  however,  that the
Company  reserves  the right to exclude such  representative  from access to any
material or meeting or portion  thereof if the company  believes  upon advice of
counsel  that such  exclusion is  reasonably  necessary to preserve the attorney
client privilege, to protect highly confidential  proprietary information or for
other similar reasons.

         3.9      PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT.  The Company
will use commercially  reasonable efforts to cause all employees and consultants
to execute and deliver a

                                      17.
<PAGE>

Proprietary  Information  and  Inventions  Agreement in  substantially  the form
attached to the Series A Purchase Agreement.

         3.10     ASSIGNMENT OF RIGHT OF FIRST REFUSAL. In the event the Company
elects not to  exercise  any right of first  refusal or right of first offer the
Company  may have on a proposed  transfer  of any of the  Company's  outstanding
capital  stock  pursuant  to the  Company's  charter  documents,  by contract or
otherwise,  the Company  shall  assign  such right of first  refusal or right of
first offer to the Major Investors. In the event of such assignment,  each Major
Investor  shall have a right to  purchase  its pro rata  portion  (as defined in
Section 4.1) of the capital stock proposed to be transferred.

         3.11     AFFILIATED  TRANSACTIONS.  The  Company  shall not without the
approval  of a  majority  of the Board of  Directors,  with only  non-interested
Directors voting, authorize or enter into any transactions, with any director or
management  employee,   or  such  director's  or  employee's  immediate  family,
provided, however, that with respect to any transaction with a Director who is a
member  of  the  Company's   management  (other  than  transactions  related  to
compensation  including salary, stock options,  and bonuses),  the Company shall
not without the approval of a majority of the outside  directors of the Company,
authorize or enter into such transaction.

         3.12     DIRECTORS'  EXPENSES.  Except for the agreement  with Lawrence
Levy, the Company shall not pay any  compensation to any member of the Company's
Board of  Directors  in  connection  with the  performance  of their duties as a
Director;  provided,  however, the Company will reimburse reasonable expenses of
Board  members  incurred in  attending  Board  meetings or any other  activities
(e.g., meetings, trade shows) which are required and/or requested by the Company
and that involve expenses.

         3.13     DIRECTORS'  LIABILITY  AND   INDEMNIFICATION.   The  Company's
Certificate of Incorporation and Bylaws shall provide (a) for elimination of the
liability  of  director  to the  maximum  extent  permitted  by law  and (b) for
indemnification  of  directors  for acts on behalf of the Company to the maximum
extent permitted by law.

         3.14     ISSUANCE OF CAPITAL STOCK.  The Company shall not, without the
prior approval of a majority of the Board of Directors,  issue any capital stock
or securities convertible into capital stock.

         3.15     CAPITAL EXPENDITURES. The Company shall not, without the prior
approval of a majority of the Board of Directors  (including  the Series A Board
Designee),  make capital expenditures  (including expenditures under capitalized
leases) in excess of $250,000 in the  aggregate in any fiscal year or any single
capital expenditure exceeding $100,000.

         3.16     INDEBTEDNESS.   The  Company  shall  not,  without  the  prior
approval of a majority of the Board of Directors  (including  the Series A Board
Designee),  directly or indirectly create, incur, assume, suffer to exist, or be
or remain liable with respect to, any  indebtedness or obligation other than the
following:

                                      18.
<PAGE>

                  (A)      Current   accounts   payable  and   similar   current
liabilities, incurred in the ordinary course of business of the Company;

                  (B)      Indebtedness  incurred upon the purchase of equipment
(which  indebtedness may be secured by a security  interest or any other lien or
title  retention  agreement  relating to such  equipment),  and equipment  lease
obligations of any character;

                  (C)      Obligations  under  present or future  leases of real
estate used in the ordinary course of business; or

                  (D)      Any other  indebtedness  which would not increase the
Company's total  indebtedness  by more than Two Million Dollars  ($2,000,000) in
any fiscal year.

                  Notwithstanding the foregoing,  the Company shall not, without
the prior approval of the Holders of at least  sixty-six and two-thirds  percent
(66 2/3%) of the Registrable  Securities,  incur any indebtedness or provide any
guaranties in excess of Two Million Dollars ($2,000,000) in any fiscal year.

         3.17     BOARD  MEETINGS.  Until  such time as the  Board of  Directors
shall elect to meet less often,  the Company  shall cause the Board of Directors
to meet at least once every two months.

         3.18     SUBSIDIARIES OR JOINT VENTURES. The Company shall not, without
the prior approval of a majority of the Board of Directors (including the Series
A Board Designee), establish or invest in any subsidiary or joint venture.

         3.19     USE OF  PROCEEDS.  The Company  shall use the  proceeds of the
sale of shares of the Series B Stock for working capital purposes.

         3.20     TERMINATION  OF  COVENANTS.   All  covenants  of  the  Company
contained in this Section 3, other than Sections 3.12 and 3.13, of the Agreement
shall expire and  terminate as to each Investor upon the earlier to occur of (i)
the  effective  date of the  registration  statement  pertaining  to the Initial
Offering,  which  results  in the  Series A Stock and the  Series B Stock  being
converted into Common Stock;  (ii) upon (a) the sale, lease or other disposition
of all or  substantially  all of the assets of the Company or (b) an acquisition
of the  Company by another  corporation  or entity by  consolidation,  merger or
other  reorganization in which the holders of the Company's  outstanding  voting
stock  immediately  prior  to  such  transaction  own,  immediately  after  such
transaction, securities representing less than fifty percent (50%) of the voting
power of the corporation or other entity  surviving such  transaction,  provided
that this Section 3.20 shall not apply to a merger effected  exclusively for the
purpose of changing  the  domicile of the  Company (a "CHANGE IN  CONTROL");  or
(iii) the termination of this Agreement.

SECTION 4.        RIGHTS OF FIRST REFUSAL

         4.1      SUBSEQUENT  OFFERINGS.  Each  Investor  shall  have a right of
first  refusal  to  purchase  its pro rata share of all  Equity  Securities,  as
defined  below,  that the Company  may,  from time to time,  propose to sell and
issue after the date of this Agreement, other than the

                                      19.
<PAGE>

Equity Securities  excluded by Section 4.6 hereof. The Investor's pro rata share
is equal to the ratio of (a) the number of shares of the Company's  Common Stock
(including all shares of Common Stock issued or issuable upon  conversion of the
Shares)  which the  Investor is deemed to be a holder  immediately  prior to the
issuance  of such  Equity  Securities  to (b) the total  number of shares of the
Company's  outstanding Common Stock (including all shares of Common Stock issued
or  issuable  upon  conversion  of  the  Shares  or  upon  the  exercise  of any
outstanding warrants or options) immediately prior to the issuance of the Equity
Securities.  For the purposes of this  Agreement,  the term "EQUITY  SECURITIES"
shall  mean  (i) any  Common  Stock,  Series  A  Stock,  Series B Stock or other
security  of the  Company,  (ii)  any  security  convertible,  with  or  without
consideration,  into any Common Stock,  Series A Stock,  Series B Stock or other
security (including any option to purchase such a convertible  security),  (iii)
any  security  carrying  any warrant or right to  subscribe  to or purchase  any
Common Stock,  Series A Stock, Series B Stock or other security or (iv) any such
warrant or right.

         4.2      EXERCISE  OF  RIGHTS.  If the  Company  proposes  to issue any
Equity  Securities,  it shall give the Investor written notice of its intention,
describing the Equity  Securities,  the price and the terms and conditions  upon
which the Company  proposes to issue the same.  The  Investor  shall have thirty
(30) days from the giving of such notice to agree to purchase its pro rata share
of the  Equity  Securities  for the  price  and upon the  terms  and  conditions
specified  in the notice by giving  written  notice to the  Company  and stating
therein the quantity of Equity Securities to be purchased.  Notwithstanding  the
foregoing,  the  Company  shall not be  required  to offer or sell  such  Equity
Securities  to the  Investor if it would cause the Company to be in violation of
applicable federal securities laws by virtue of such offer or sale.

         4.3      ISSUANCE  OF  EQUITY  SECURITIES  TO  OTHER  PERSONS.  If  the
Investors  fail to  exercise  in full the rights of first  refusal,  the Company
shall have ninety (90) days thereafter to sell the Equity  Securities in respect
of which the Investor's  rights were not exercised,  at a price and upon general
terms and conditions materially no more favorable to the purchasers thereof than
specified  in the  Company's  notice to the  Investors  pursuant  to Section 4.2
hereof.  If the Company has not sold such Equity  Securities  within ninety (90)
days of the notice  provided  pursuant to Section  4.2,  the  Company  shall not
thereafter  issue or sell any Equity  Securities,  without  first  offering such
securities to the Investors in the manner provided above.

         4.4      TERMINATION AND WAIVER OF RIGHTS OF FIRST REFUSAL.  The rights
of first  refusal  established  by this  Section 4 shall not apply to, and shall
terminate upon the earlier of (i) effective date of the  registration  statement
pertaining to the Company's  Initial  Offering or (ii) a Change in Control.  The
rights of first  refusal  established  by this Section 4 may be amended,  or any
provision  waived with the written  consent of the  Investor or as  permitted by
Section 5.6.

         4.5      TRANSFER  OF  RIGHTS  OF FIRST  REFUSAL.  The  rights of first
refusal of the  Investor  under this  Section 4 may be  transferred  to the same
parties, subject to the same restrictions as any transfer of registration rights
pursuant to Section 2.11.

         4.6      EXCLUDED  SECURITIES.  The rights of first refusal established
by this  Section 4 shall  have no  application  to any of the  following  Equity
Securities:

                                      20.
<PAGE>

                  (A)      up to an aggregate  amount of Five  Hundred  Thousand
(500,000) shares of Common Stock (and/or options, warrants or other Common Stock
purchase  rights issued  pursuant to such options,  warrants or other rights) as
adjusted for any stock dividends,  combinations,  splits,  recapitalizations and
the like issued or to be issued after the Original Issue Date (as defined in the
Company's Certificate of Designation) to employees, officers or directors of, or
consultants  or  advisors to the  Company or any  subsidiary,  pursuant to stock
purchase or stock  option plans or other  arrangements  that are approved by the
Board  of  Directors  (or  the  Equity  Incentive  Compensation  Plan  Committee
thereof);

                  (B)      stock  issued  pursuant  to any rights or  agreements
outstanding as of the date of this Agreement,  options and warrants  outstanding
as of the date of this  Agreement;  and stock issued pursuant to any such rights
or agreements granted after the date of this Agreement; provided that the rights
of first  refusal  established  by this  Section 4 applied  with  respect to the
initial sale or grant by the Company of such rights or agreements;

                  (C)      any Equity Securities issued for consideration  other
than cash pursuant to a merger,  consolidation,  acquisition or similar business
combination  approved by the Board of  Directors  including  the  representative
designated by the holder of the Shares;

                  (D)      shares of Common Stock issued in connection  with any
stock split, stock dividend or recapitalization by the Company;

                  (E)      shares of Common Stock issued upon  conversion of the
Shares;

                  (F)      up to  250,000  of  shares of any  Equity  Securities
issued pursuant to any equipment leasing or loan arrangement,  or debt financing
from a bank or similar financial or lending institution approved by the Board of
Directors, including the Series A Board Designee;

                  (G)      any Equity  Securities that are issued by the Company
pursuant to a registration statement filed under the Securities Act; and

                  (H)      up to 250,000  shares of the Company's  Common Stock,
Series A Stock or  Series B issued in  connection  with  strategic  transactions
involving  the  Company  and  other  entities,  including  (i)  joint  ventures,
manufacturing,   marketing  or  distribution  arrangements  or  (ii)  technology
transfer or development arrangements;  provided that such strategic transactions
and the issuance of shares therein,  has been approved by the Company's Board of
Directors, including the Series A Board Designee.

SECTION 5.        MISCELLANEOUS

         5.1      GOVERNING  LAW.  This  Agreement  shall  be  governed  by  and
construed under the laws of the State of Delaware as applied to agreements among
Delaware  residents  entered into and to be performed  entirely  within Delaware
(without regard to the conflicts of laws principles thereof).

                                      21.
<PAGE>

         5.2      SURVIVAL.  The  representations,   warranties,  covenants  and
agreements  made herein shall survive any  investigation  made by any Holder and
the  closing of the  transactions  contemplated  hereby.  All  statements  as to
factual matters contained in any certificate or other instrument delivered by or
on behalf of the Company  pursuant  hereto in connection  with the  transactions
contemplated  hereby shall be deemed to be representations and warranties by the
Company hereunder solely as of the date of such certificate or instrument.

         5.3      SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided
herein,  the  provisions  hereof  shall  inure to the benefit of, and be binding
upon, the successors,  assigns,  heirs,  executors,  and  administrators  of the
parties  hereto and shall  inure to the  benefit of and be  enforceable  by each
person  who  shall be a holder  of  Registrable  Securities  from  time to time;
provided,  however, that prior to the receipt by the Company of adequate written
notice of the transfer of any  Registrable  Securities  specifying the full name
and address of the transferee of such  Registrable  Securities,  the Company may
deem and treat the person  listed as the holder of such shares in its records as
the absolute  owner and holder of such shares for all  purposes,  including  the
payment of dividends or any redemption price.

         5.4      ENTIRE AGREEMENT.  This Agreement,  the Exhibits and Schedules
hereto,  the  Purchase  Agreement  and the other  documents  delivered  pursuant
thereto  constitute the full and entire  understanding and agreement between the
parties with regard to the subjects hereof and no party shall be liable or bound
to any other in any manner by any  representations,  warranties,  covenants  and
agreements except as specifically set forth herein and therein.

         5.5      SEVERABILITY.  In the event one or more of the  provisions  of
this  Agreement  should,  for any  reason,  be held to be  invalid,  illegal  or
unenforceable in any respect, such invalidity,  illegality,  or unenforceability
shall not affect any other  provisions  of this  Agreement,  and this  Agreement
shall be construed as if such invalid,  illegal or  unenforceable  provision had
never been contained herein.

         5.6      AMENDMENT AND WAIVER.

                  (A)      Except  as   otherwise   expressly   provided,   this
Agreement  may be  amended  or  modified  only upon the  written  consent of the
Company and the holders of at least  sixty-six and two-thirds  percent (66 2/3%)
of the Registrable Securities.

                  (B)      Except   as   otherwise   expressly   provided,   the
obligations  of the Company and the rights of the Holders  under this  Agreement
may be waived only with the written consent of the holders of at least sixty-six
and two-thirds percent (66 2/3%) of the Registrable Securities.

         5.7      DELAYS OR OMISSIONS. It is agreed that no delay or omission to
exercise any right,  power, or remedy  accruing to any Holder,  upon any breach,
default or  noncompliance  of the Company under this Agreement  shall impair any
such right,  power,  or remedy,  nor shall it be construed to be a waiver of any
such breach,  default or noncompliance,  or any acquiescence  therein, or of any
similar breach,  default or noncompliance  thereafter  occurring.  It is further
agreed that any waiver, permit, consent, or approval of any kind or character on
any Holder's part of any breach, default or noncompliance under the Agreement or
any  waiver  on such  Holder's

                                      22.
<PAGE>

part of any  provisions or conditions of this  Agreement  must be in writing and
shall be effective  only to the extent  specifically  set forth in such writing.
All  remedies,  either under this  Agreement,  by law, or otherwise  afforded to
Holders, shall be cumulative and not alternative.

         5.8      NOTICES.  All notices required or permitted hereunder shall be
in writing and shall be deemed  effectively given: (a) upon personal delivery to
the party to be notified,  (b) when sent by confirmed telex or facsimile if sent
during normal business hours of the recipient; if not, then on the next business
day, (c) five (5) days after having been sent by registered  or certified  mail,
return receipt requested, postage prepaid, or (d) one (1) day after deposit with
a nationally  recognized overnight courier,  specifying next day delivery,  with
written  verification of receipt.  All communications shall be sent to the party
to be  notified  at the address as set forth on the  signature  pages  hereof or
Exhibit A hereto or at such other  address as such  party may  designate  by ten
(10) days advance written notice to the other parties hereto.

         5.9      ATTORNEYS'  FEES.  In the  event  that any suit or  action  is
instituted to enforce any provision in this Agreement,  the prevailing  party in
such dispute shall be entitled to recover from the losing party all fees,  costs
and  expenses  of  enforcing  any right of such  prevailing  party under or with
respect to this Agreement,  including without  limitation,  such reasonable fees
and  expenses  of  attorneys  and  accountants,  which  shall  include,  without
limitation, all fees, costs and expenses of appeals.

         5.10     TITLES  AND   SUBTITLES.   The  titles  of  the  sections  and
subsections of this Agreement are for  convenience of reference only and are not
to be considered in construing this Agreement.

         5.11     COUNTERPARTS.  This Agreement may be executed in any number of
counterparts,  each of which  shall be an  original,  but all of which  together
shall constitute one instrument.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

                                      23.
<PAGE>

         IN WITNESS  WHEREOF,  the parties  hereto have  executed  this  AMENDED
INVESTOR  RIGHTS  AGREEMENT  as of the date set  forth  in the  first  paragraph
hereof.

COMPANY:                                 INVESTORS:

INFORMAX, INC.                           FBR TECHNOLOGY VENTURE
                                         PARTNERS II, LP

                                         BY: FBR VENTURE CAPITAL MANAGERS, L.P.,
                                             its General Partner

By: /s/ Alexander Titomirov             By: /s/ Hooks K. Johnston
   ---------------------------------        ----------------------------------
Alexander Titomirov, President           Name: Hooks K. Johnston
                                              --------------------------------
                                         Title: Managing Director
                                               -------------------------------

                                         AMERSHAM PHARMACIA BIOTECH INC.

                                         By: /s/ Peter B. Coggins
                                             ---------------------------------
                                         Name:  Peter B. Coggins
                                              --------------------------------
                                         Title: V.P. Drug Discovery
                                               -------------------------------EXHIBIT 10.12

*****Confidential  Treatment  has been requested for portions of this agreement.
The copy file herewith omits information subject to the confidentiality request.
Omissions are designated as [*****]. A complete version of  this  agreement  has
been filed separately with the Securities and Exchange Commission.

                               131 Park Street, NE
                           Vienna, Virginia 22180-4607
                              Phone: (703) 281-7440
                               FAX: (703) 281-7636

July 9, 1999                      LETTER AGREEMENT

InforMax
6010 Executive Blvd.
Suite 501
North Bethesda, MD 20852 USA

Attention:     Ms. Kimberly B. Durazo
               Director of Operations, InforMax, Inc.

Dear Mrs. Durazo,

In response  to the  proposal  provided  by  InforMax on July 2, 1999  regarding
contract  NO1-LM-5-3530  for the year  1999-2000,  the  following  agreement and
specified terms will supercede the prior sub-contract  arrangement  currently in
place. Each line item referenced below for this  fixed-priced  agreement will be
implemented  on  July  15,  1999.  Any  liabilities  from  the  prior  agreement
Subcontract No.: 1489-9601, will cease under this new agreement.

Contract is a FIRM-FIXED COST for one year, from July 15, 1999 to July 12, 2000.

The  following  labor  categories  and  rates  have  been  agreed  to by MSD and
InforMax:

One  Senior  Bio-Informatics  Software  Engineer  at an  annual  hourly  rate of
[*****].

Two Bio-Informatics Software Engineers at an annual hourly rate of [*****].

Three Bio-Informatics Software Engineers at an annual hourly rate of [*****].

Software  Engineer rates  increase with the start of the new contract  effective
July 15, 1999.

The total FIRM-FIXED cost for the one year contract will not exceed [*****].

MSD payments will be made to INFORMAX,  INC. within 30 days from date of receipt
for the period worked. An invoice will be submitted by INFORMAX to MSD via email
on the first of every month.  MSD and INFORMAX will meet on a quarterly basis to
ensure that hours and billings are maintained to satisfy the terms  specified in
the agreement.

INFORMAX will provide monthly to MSD, copies of signed  employee  timesheets,  a
summary  report of actual hours worked to date by each  employee and an employee
job status report.  This  agreement is for [*****] hours in accordance  with the
rates above for a fixed price annual total of [*****].

<PAGE>

Please execute two signed  originals of this agreement.  MSD will then sign both
and return one original for your files. MSD looks forward to continuing  or long
standing  partnership  with  InforMax with this  agreement.  Please feel free to
contact  myself  or Jim Fox (703)  281-7440  x124  regarding  any  questions  or
clarifications to this agreement.

Very truly yours,

Haley Esser
MSD Program Manager

/s/ James A. Fox                                   7/12/99
------------------                                 ---------
James A Fox                                         Date
MSD, Vice President

/s/ Joseph Lehnen                                  7/9/99
-------------------                                ---------
Joseph Lehnen                                       Date
INFORMAX, Chief Financial Officer

<PAGE>

*****Certain information on this page has been omitted and filed separately with
the  Securities  and  Exchange   Commission.   Confidential  Treatment  has been
requested with respect to the omitted portions.

November 22, 1999

InforMax
6010 Executive Blvd. 10th Floor
Suite 501
North Bethesda, MD 20852 USA

Attention:     Ms. Kimberly B. Durazo
               Director of Operations, InforMax, Inc.

Dear Mrs. Durazo,

This  addendem is submitted  in support of the proposal  provided by InforMax on
July 2,  1999  regarding  contract  NO1-LM-5-3530  for the year  1999-2000.  The
following  agreement  and  specified  terms are subject to the Letter  Agreement
referenced above.

Contract is a FIRM-FIXED  COST for one year,  from  November 8, 1999 to November
5th, 2000.

One  Senior  Bio-Informatics  Software  Engineer  at an  annual  hourly  rate of
[*****].

The total FIRM-FIXED cost for the one-year contract will not exceed [*****].

MSD payments will be made to INFORMAX,  INC. within 30 days from date of receipt
for the period worked. An invoice will be submitted by INFORMAX to MSD via email
on the first of every  month.  THIS  INVOICE  SHALL  REFERENCE  MSD ORDER NUMBER
#1986.  MSD and INFORMAX will meet on a quarterly basis to ensure that hours and
billings are maintained to satisfy the terms specified in the agreement.

INFORMAX will provide monthly to MSD, copies of signed  employee  timesheets,  a
summary  report of actual hours worked to date by each  employee and an employee
job status report.  This  agreement is for [*****] hours in accordance  with the
rates above for a fixed price annual total of [*****].

Please feel free to contact  myself or Jim Fox (703) 281-7440 x124 regarding any
changes or clarifications to this agreement.

Very truly yours,

/s/ Haley Esser

Haley Esser
MSD Program Manager

<PAGE>

James A. Fox                                       11/22/99
------------------                                 ---------
James A Fox                                         Date
MSD, Vice President

Joseph Lehnen                                      11/29/99
-------------------                                --------
Joseph Lehnen                                       Date
INFORMAX, Chief Financial Officer

<PAGE>

[GRAPHIC OMITTED]

*****Certain information on this page has been omitted and filed separately with
the  Securities  and  Exchange   Commission.   Confidential  Treatment  has been
requested with respect to the omitted portions.

November 22, 1999

InforMax
6010 Executive Blvd. 10th Floor
North Bethesda, MD 20852 USA

Attention:   Ms. Kimberly B. Durazo
             Director of Operations, InforMax, Inc.

Dear Ms. Durazo,

This  addendum is submitted  in support of the proposal  provided to InforMax on
July 9,  1999  regarding  contract  NO1-LM-5-3530  for the year  1999-2000.  The
following  agreement  and  specified  terms are subject to the Letter  Agreement
referenced above.

Contract is a FIRM-FIXED COST for one year, from September 20, 1999 to September
17, 2000.

One  Senior  Bio-Informatics  Software  Engineer  at an  annual  hourly  rate of
[*****].

The total FIRM-FIXED cost for the one-year contract will not exceed [*****].

MSD  payments  will be made to  INFORMAX,  INC.  within 30 days from the date of
receipt for the period  worked.  An invoice will be submitted by INFORMAX to MSD
via email on the first of every month.  This invoice  shall  reference MSD order
number  #2029.  MSD and INFORMAX  will meet on a quarterly  basis to ensure that
hours  and  billings  are  maintained  to  satisfy  the terms  specified  in the
agreement.

INFORMAX will provide monthly to MSD, copies of signed  employee  timesheets,  a
summary  report of actual hours worked to date by each  employee and an employee
job status report.  This  agreement is for [*****] hours in accordance  with the
rates above for a fixed price annual total of [*****].

Please feel free to contact  myself or Jim Fox (703) 281-7440 x124 regarding any
changes or clarifications to this agreement.

Very truly yours,

/s/ Haley Esser

Haley Esser
MSD Program Manager
<PAGE>

Addendum #1

/s/ James A. Fox                        11/22/99
---------------------------------       --------
MSD, Vice President                     Date

/s/ Joseph Lehnen                       11/27/99
---------------------------------       --------
INFORMAX, Chief Financial Officer       Date

<PAGE>

   Omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

                                  PURCHASE ORDER                       Order No.
                                                                            2385
                              PHONE (703) 281-7440

                                       ITG

To:       Informax                  Ship To:  Management Systems Designers, Inc.
Address:  6010 Executive Blvd.      Address:  131 Park Street, N.E.
City:     North Bethesda, MD        City:     Vienna, Virginia
          20852                               22180

ACCT.            Date Required    Terms      How Ship     Date     7.26.00

                 The following categories (labor) and rates
                 Have been agreed to by MSD and Informax:

                 - [****] : [****] Hrs. @ [****] =           [****]
                 - [****] : [****] Hrs. @ [****] =           [****]
                 - [****] : [****] Hrs. @ [****] =           [****]
                 - [****] : [****] Hrs. @ [****] =           [****]
                 - [****] : [****] Hrs. @ [****] =           [****]
                 - [****] : [****] Hrs. @ [****] =           [****]

                 MSD Payments will be made to Informax, Inc.
                 Within 30 days from the date of receipt for
                 The period worked.  An invoice will be submitted
                 By Informax to MSD via e0mail on the first
                 Of every month.

                 Informax will provided monthly to MSD, copies
                 Of signed employee timesheets, a summary
                 Report of actual hours worked to date by each
                 Employee and an employee job status report.

                                                    TOTAL:   [****]

                 Period of performance: August 6, 2000-
                                        August 5, 2001

Our order number appear on all                       /s/ Illegible
invoices, packages, etc.

Please notify us immediately if you are
unable to ship complete order by date
specified
White-original                Yellow-Office Copy                  Pink-Receiving

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