Document:

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                                                                   Exhibit 10.12

                                LICENSE AGREEMENT

         THIS LICENSE AGREEMENT (the "Agreement") effective as of March 25, 1999
(the "Effective Date") is by and between Genzyme Corporation, a Massachusetts
corporation having its principal offices at One Kendall Square, Cambridge, MA
02139 ("Genzyme"), through Genzyme's Molecular Oncology Division, and EXACT
Laboratories, Inc., a Delaware corporation having its principal offices at 63
Great Road, Maynard, MA 01754 ("EXACT").

                                   WITNESSETH:

         WHEREAS, Genzyme is the licensee of certain patent rights relating to
the Field (as defined herein) under the JHU License Agreement (as defined
herein) and is willing to grant to EXACT a worldwide, nonexclusive,
royalty-bearing sublicense to use such patent rights for the development and
commercialization of Diagnostic Services, Licensed Reagents and Kits (each as
defined herein) in the Field upon the terms and conditions set forth herein; and

         WHEREAS, EXACT desires to obtain a worldwide, nonexclusive,
royalty-bearing sublicense to use such patent rights for the development and
commercialization of Diagnostic Services, Licensed Reagents and Kits in the
Field on the terms and conditions set forth herein; and

         WHEREAS, Genzyme is willing to grant EXACT such a sublicense on the
terms and conditions set forth herein in light of the relationship between EXACT
and JHU (as defined herein) and the relationship between Genzyme and JHU;

         NOW THEREFORE, in consideration of the mutual covenants herein
contained and intending to be legally bound hereby, the parties hereto agree as
follows:

                             ARTICLE 1. DEFINITIONS

1.1      "Affiliate" shall mean any corporation or other entity which controls,
         is controlled by, or is under common control with EXACT. A corporation
         or other entity shall be regarded as in control of another corporation
         or entity if it owns or directly or indirectly controls more than fifty
         percent (50%) of the voting stock or other ownership interest of the
         other corporation or entity, or if it possesses, directly or
         indirectly, the power to direct or cause the direction of the
         management and policies of the corporation or other entity or the power
         to elect or appoint more than fifty percent (50%) of the members of the
         governing body of the corporation or other entity.

1.2      "Diagnostic Service(s)" shall mean the performance of laboratory-based
         assays covered in whole or in part by a Valid Claim of the Patent
         Rights.

1.3      "Field" shall mean the determination, in stool or samples prepared from
         stool, of the presence of, absence of or variation(s) within a nucleic
         acid of interest, or differences between a nucleic acid of interest and
         a reference standard or sample, including but not limited to screening,
         diagnosis, prognosis and monitoring tests, for the purpose of detecting
         changes associated with colorectal cancer.

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                                      -2-

1.4      "First Commercial Sale" shall mean (a) the first performance for
         consideration of a Diagnostic Service in the Field or (b) the first
         sale for consideration of a Licensed Reagent or Kit for use in the
         Field, as applicable. Any performance of a Diagnostic Service or
         transfer of Licensed Reagents or Kits by EXACT solely for purposes of
         performing Research shall not be deemed to constitute a First
         Commercial Sale.

1.5      "Gene Patent Rights" shall mean the United States and foreign patents
         and patent applications relating to the APC gene and/or the p53 gene
         and licensed (with the right to grant sublicenses) to Genzyme pursuant
         to the JHU License Agreement together with patents arising therefrom
         and any extensions, registrations, confirmations, reissues, divisions,
         continuations or continuations-in-part, re-examinations or renewals
         thereof, including without limitation the patents and patent
         applications listed in Appendix A hereto (which may be updated from
         time to time to include such additional patents and patent application
         that may arise therefrom); PROVIDED, HOWEVER, that Gene Patent Rights
         expressly excludes any claims of such patents and patent applications
         that fall outside of the Field, including, without limitation, claims
         to antibodies, to the treatment, prevention or remedying of a gene
         deficiency, to purified proteins, or to DNA sequences other than those
         sequences that correspond to the p53 gene and the APC gene; PROVIDED
         FURTHER that DNA sequences which are (i) immediately adjacent to the
         p53 or APC genes and (ii) necessary to the use of the p53 or APC genes,
         respectively, in the Field shall be considered within the Gene Patent
         Rights.

1.6      "Instrument" shall mean any instrument, apparatus, appliance, automated
         system or computer software that is covered in whole or in part by a
         Valid Claim of the Patent Rights and is useful or necessary for
         performing laboratory-based assays.

1.7      "JHU License Agreement" shall mean the License Agreement dated as of
         February 5, 1992 by and between Genzyme (as successor to PharmaGenics,
         Inc.), The Johns Hopkins University ("JHU") and Hoffman-La Roche Inc.
         ("Roche"), as amended from time to time.

1.8      "Kit" shall mean a collection of one or more Reagents, including at
         least one Licensed Reagent, packaged in the form of a kit.

1.9      "Licensed Reagent" shall mean any Reagent covered in whole or in part
         by a Valid Claim of the Patent Rights.

1.10     "Methodology Patent Rights" shall mean the United States and foreign
         patents and patent applications relating to methods of detecting
         mammalian nucleic acids isolated from stool specimens and reagents
         therefor and licensed (with the right to grant sublicenses) to Genzyme
         pursuant to the JHU License Agreement together with patents resulting
         therefrom and any extensions, registrations, confirmations, reissues,
         divisions, continuations or continuations-in-part, re-examinations or
         renewals thereof, including without limitation the patents and patent
         application listed in Appendix B hereto (which may be updated from time
         to time to include such additional patents and patent applications that
         may arise therefrom).
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                                      -3-

1.11     (a) "Net Sales" shall mean the adjusted gross sales of Licensed
         Reagents and Kits by EXACT LESS [CONFIDENTIAL TREATMENT REQUESTED]/*/
         of adjusted gross sales in lieu of items such as custom duties, inbound
         transportation, insurance costs, agent's commission, bad debts, etc.
         The adjusted gross sales shall mean the actual gross sales price of a
         Licensed Reagent or Kit billed by EXACT (not including miscellaneous
         items on the invoice such as taxes, etc.) LESS chargebacks, cash
         discounts, credits or allowances (not including miscellaneous items
         credited such as taxes, etc.) including those incurred or granted on
         account of price adjustments, rejections, returns, rebates or recalls
         of Licensed Reagents or Kits previously sold. "Net Sales" does not
         include "no charge" samples to the extent customary in the trade.

         (b) In the event that EXACT decides to sell a Kit which combines
         Licensed Reagents with ingredients or components which are not Licensed
         Reagents (such other ingredients or components being "Other Items"),
         then (i) EXACT shall notify Genzyme in writing of its intent to offer
         such combination, (ii) Genzyme and EXACT shall, within thirty (30) days
         after Genzyme's receipt of such notification, initiate good-faith
         negotiations on the value of the Licensed Reagents which shall be used
         as the basis to calculate Net Sales pursuant to this clause (b) and
         (iii) if the parties can not reach agreement within thirty (30) days
         after the commencement of such negotiations, such dispute shall be
         referred to arbitration pursuant to Article 11 hereof. However, in no
         event shall the royalty rates on Net Sales be reduced by more than
         [CONFIDENTIAL TREATMENT REQUESTED]/*/. The term "Other Items" does not
         include solvents, diluents, carriers, excipients, enzymes used in
         amplification for diagnostic use, or the like used in formulating a
         product.

         (c) In the event that a Licensed Reagent or Kit is sold for
         non-monetary consideration in addition to or in lieu of money, the
         value of such consideration to the extent that it can be reasonably
         determined by EXACT shall be added to Net Sales in accordance with
         Sections 1.11 (a) and (b) hereof.

         (d) No deductions shall be made for commissions paid to individuals
         whether they be with independent sales agencies or regularly employed
         by EXACT and on its payroll, or for cost of collections.

         (e) Net Sales expressly excludes transfers or dispositions of Licensed
         Reagents or Kits at cost or less than cost for the sole purpose of
         conducting Research.

1.12     (a) "Net Service Revenues" shall mean actual billings by EXACT for the
         performance of Diagnostic Services less the following deductions to the
         extent that they are applicable and are not already deducted in the
         actual billings: (i) discounts allowed and taken, in amounts customary
         in the trade; (ii) sales and/or use taxes and/or duties imposed upon
         and with specific reference to particular sales.

        (b) If a Diagnostic Service(s) is offered in combination with another
        diagnostic or other service(s) (such as patient counseling) provided by
        EXACT (such other services being referred to as "Other Services" and
        such Diagnostic Service(s) and Other Services collectively being
        referred to as "Combination Services"), Net Service Revenues for

         /*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN
         OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL
         SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED.
<PAGE>
                                      -4-

        purposes of determining royalties on the Diagnostic Service(s) shall be
        calculated as provided below:

                  (i)   If the Diagnostic Service(s) and the Other Services are
                        sold or provided separately, Net Service Revenues shall
                        be calculated by multiplying the Net Service Revenues of
                        the Combination Service (as determined in accordance
                        with Section 1.12(a) above but applied to the
                        Combination Service), by the fraction A/(A+B), where "A"
                        is the invoice price of the Diagnostic Service(s) and
                        "B" is the invoice price of the Other Services in the
                        Combination Service if sold or provided separately.

                  (ii)  If the Diagnostic Service(s) are sold or provided
                        separately but the Other Services are not, Net Service
                        Revenues shall be calculated by multiplying the Net
                        Service Revenues of the Combination Service (as
                        determined in accordance with Section 1.12(a) above but
                        applied to the Combination Service), by the fraction
                        A/C, where "A" is the invoice price of the Diagnostic
                        Service(s) and "C" is the invoice price of the
                        Combination Service.

                  (iii) If the Diagnostic Service(s) and the Other Services in
                        the combination are not sold or provided separately, Net
                        Service Revenues for purpose of determining royalties on
                        the Diagnostic Service(s) shall be calculated by
                        multiplying Net Service Revenues of the Combination
                        Service (as determined in accordance with Section
                        1.12(a) above but applied to the Combination Service) by
                        the fraction E/(E+D), where "E" is the value of the
                        Diagnostic Service(s) and "D" is the reasonably
                        estimated value (using accepted diagnostic industry
                        standards) of the Other Services based at least in part
                        on the value of the other active component or components
                        used in the Combination Service; provided, that (A)
                        EXACT shall notify Genzyme in writing of its intent to
                        offer such Combination Services, (B) Genzyme and EXACT
                        shall, within thirty (30) days after Genzyme's receipt
                        of such notification, initiate good-faith negotiations
                        on the value of the Diagnostic Service(s) and Other
                        Services which shall be used as the basis to calculate
                        Net Service Revenues pursuant to this clause (iii) and
                        (C) if the parties can not reach agreement within thirty
                        (30) days after the commencement of such negotiations,
                        such dispute shall be referred to arbitration pursuant
                        to Article 11 hereof.

         (c) In the event that a Diagnostic Service is provided for non-monetary
         consideration in addition to or in lieu of money, the value of such
         non-monetary consideration to the extent that it can be reasonably
         determined by EXACT shall be added to Net Service Revenues in
         accordance with Sections 1.12(a) and (b) hereof.

         (d) Net Service Revenues expressly excludes the use or performance of
         Diagnostic Services at cost or less than cost for the sole purpose of
         conducting Research.
<PAGE>
                                      -5-

1.13     "Patent Rights" shall mean collectively the Gene Patent Rights and the
         Methodology Patent Rights.

1.14     "Reagents" shall mean reagents useful in or necessary to the
         performance of laboratory-based assays, whether used individually or
         sold or used as one or more component(s) of a kit.

1.15     "Research" shall mean pre-clinical, clinical and regulatory activities
         conducted by or on behalf of EXACT to develop and obtain regulatory
         approvals of products or services utilizing the Patent Rights licensed
         to EXACT hereunder.

1.16     "Valid Claim" shall mean an issued claim of an unexpired patent, or a
         claim of a pending patent application, which shall not have been
         withdrawn, canceled or disclaimed, or held invalid or unenforceable by
         a court of competent jurisdiction in an unappealed or unappealable
         decision. Notwithstanding the foregoing to the contrary, a claim of a
         pending patent application, divisional application, or
         continuation-in-part application, or the foreign equivalents thereof,
         shall cease to be a Valid Claim if no patent has issued on such claim
         on or prior to the fifth (5th) anniversary of the date of filing such
         patent application (or, in the case of a continuation application or
         foreign equivalent thereof, the date of filing of the earliest parent
         application), provided that such claim shall once again become a Valid
         Claim on the issue date of a patent that subsequently issues and
         includes such claim.

                            ARTICLE 2. LICENSE GRANT

2.1      Genzyme hereby grants to EXACT, subject to all the terms and conditions
         of this Agreement, a worldwide, nonexclusive right and license (without
         the right to grant sublicenses) under the Patent Rights to: (a) use,
         offer to sell, sell and practice Diagnostic Services in the Field; (b)
         make, have made, use, offer to sell, sell and import Licensed Reagents
         in the Field; and (c) make, have made, use, offer to sell, sell and
         import Kits in the Field.

2.2      The license granted hereunder shall not extend to Instruments. In the
         event that Genzyme becomes aware of any Instruments, Genzyme shall
         deliver written notice thereof to EXACT. In the event that after the
         Effective Date EXACT decides in good faith to develop Instruments for
         use in the Field and delivers written notice of such decision to
         Genzyme, Genzyme and EXACT shall, within thirty (30) days after
         Genzyme's receipt of such notification from EXACT, enter into good
         faith negotiations for a worldwide, non-exclusive license (without the
         right to grant sublicenses) to be granted by Genzyme to EXACT under the
         Patent Rights to make, use, offer to sell, sell and import Instruments
         in the Field. Any such license shall include commercially reasonable
         terms and conditions. In the event that Genzyme and EXACT are unable to
         reach agreement on the terms of any such license within ninety (90)
         days after the date Genzyme and EXACT commence negotiations for such
         license, then the dispute shall be immediately referred to one (1)
         executive officer of each party, chosen at the sole discretion of that
         party, who shall negotiate in good faith with each other to resolve the
         dispute during the period ending thirty (30) days after the date of
         such referral. If the designated officers of the parties are
<PAGE>
                                      -6-

         unable to resolve the dispute within such thirty (30) day period, the
         dispute shall be referred to arbitration pursuant to Article 11 hereof.

                            ARTICLE 3. DUE DILIGENCE

3.1      EXACT agrees to use commercially reasonable efforts to make (i)
         Diagnostic Services,(ii) Licensed Reagents and (iii) Kits available for
         the benefit of the general public consistent with regulatory compliance
         and public safety.

3.2      EXACT's material failure to perform in accordance with any subsection
         of Section 3.1 above shall be grounds for Genzyme to terminate the
         license under Section 2.1. above with respect to Diagnostic Services,
         Licensed Reagents or Kits, as applicable, pursuant to Section 7.8
         hereof by delivering written notice of its intention to terminate to
         EXACT. If EXACT disputes Genzyme's determination, (i) EXACT shall
         deliver written notice of such dispute within ten (10) business days
         after its receipt of notice from Genzyme of its intent to terminate,
         (ii) the matter shall be referred to arbitration pursuant to Article
         11hereof and (iii) EXACT's license under Section 2.1 above to the
         Diagnostic Services, Licensed Reagents or Kits, as applicable, and
         EXACT's obligations with respect thereto shall continue in full force
         and effect until the resolution of such arbitration.

3.3      Within thirty (30) days after the date this Agreement is signed on
         behalf of EXACT and subsequently no later than May 1 and November 1 of
         each year, commencing on November 1, 1999, EXACT shall provide a
         written report to Genzyme on its research, development and
         commercialization efforts with respect to (i) Diagnostic Services,
         (ii)Licensed Reagents and (iii) Kits (each individually), which report
         shall cite specific goals and objectives in researching, developing and
         commercializing the licensed technology and methodology and progress in
         meeting these goals and objectives. If Genzyme does not receive any
         such report(s) in a timely manner, it shall notify EXACT of such
         delinquency in writing. EXACT shall have thirty (30) days from its
         receipt of such notice to provide Genzyme with any and all overdue
         report(s). Failure by EXACT to provide such overdue report(s) within
         said thirty (30) day period may constitute grounds for termination of
         this Agreement by Genzyme as provided for in Section 7.5 hereof;
         PROVIDED, HOWEVER, that the number of days elapsed since EXACT first
         received notice from Genzyme of the delinquent reports shall be counted
         for purposes of determining the sixty (60) day period described in
         Section 7.5 hereof.

                               ARTICLE 4. PAYMENTS

4.1      In partial consideration for the license granted hereunder, and upon
         execution of this Agreement, EXACT agrees to pay Genzyme [CONFIDENTIAL
         TREATMENT REQUESTED]/*/, which amount shall not be creditable against
         any other amounts payable by EXACT to Genzyme hereunder.

4.2      EXACT shall pay to Genzyme during the term of this Agreement a royalty
         amounting to (a) [CONFIDENTIAL TREATMENT REQUESTED]/*/of Net Service
         Revenues worldwide and (b) [CONFIDENTIAL TREATMENT REQUESTED]/*/of Net
         Sales worldwide.

         /*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN
         OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL
         SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED.

<PAGE>
                                      -7-

4.3      (a) EXACT shall pay Genzyme a minimum royalty of [CONFIDENTIAL
         TREATMENT REQUESTED]/*/ payable within thirty (30) days of the date
         this Agreement is signed on behalf of EXACT for 1999 and on January 1
         of each year thereafter with respect to the licenses granted for
         Diagnostic Services; PROVIDED, HOWEVER, that the minimum royalty for a
         given year shall be creditable against any royalties subsequently due
         during said year under Section 4.2.

         (b) EXACT shall pay Genzyme a minimum royalty of [CONFIDENTIAL
         TREATMENT REQUESTED]/*/ payable on January 1, 2004 and on January 1 of
         each year thereafter with respect to the licenses granted for Licensed
         Reagents and Kits; PROVIDED, HOWEVER, that the minimum royalty for a
         given year shall be creditable against any royalties subsequently due
         during said year under Section 4.2.

         (c) Waiver or deferral of any minimum royalty payment by Genzyme shall
         not be construed as waiver or deferral of any such subsequent payment.

4.4      (a) In the event that the First Commercial Sale of a Diagnostic Service
         by EXACT has not occurred within [CONFIDENTIAL TREATMENT
         REQUESTED]/*/after the Effective Date, EXACT shall pay Genzyme an
         annual maintenance fee of [CONFIDENTIAL TREATMENT REQUESTED]/*/ payable
         on each anniversary of the Effective Date commencing with the
         [CONFIDENTIAL TREATMENT REQUESTED]/*/ anniversary of the Effective
         Date; PROVIDED, HOWEVER, that if EXACT has submitted a BONA FIDE
         application to the U.S. Food and Drug Administration or the equivalent
         authority at that time ("FDA") to obtain final marketing approval for a
         Diagnostic Service within said [CONFIDENTIAL TREATMENT REQUESTED]/*/
         period and EXACT's failure to make such First Commercial Sale is due to
         delays in obtaining such approval that are caused by the FDA and are
         not related to a substantial deficit in said application, then Genzyme
         may elect, in its sole discretion, to extend said [CONFIDENTIAL
         TREATMENT REQUESTED]/*/ period and shall notify EXACT in writing of any
         such determination and election and of the amount of time by which such
         period has been extended; PROVIDED FURTHER that if the parties disagree
         as to whether said application contained a substantial deficit and the
         time for resolution of such deficit, the dispute shall be referred to
         arbitration pursuant to Article 11 hereof and, until final resolution
         of the dispute, EXACT shall deposit any amounts otherwise due and
         payable to Genzyme under this Section 4.4(a) into an escrow account
         established by EXACT exclusively for such purpose in a recognized
         commercial banking institution reasonably selected by EXACT and
         promptly identified by written notice from EXACT to Genzyme. If the
         arbitrator resolves the dispute in favor of Genzyme, then the amounts
         held in escrow plus all interest accrued thereon shall be promptly paid
         to Genzyme in same day funds. Amount payable under this Section 4.4(a)
         shall not be creditable against any royalties or other payments due
         during said year under this Article 4. Waiver or deferral of any
         maintenance fee by Genzyme shall not be construed as waiver or deferral
         of any such subsequent payment.

         (b) In the event that the First Commercial Sale of a Kit by EXACT has
         not occurred within [CONFIDENTIAL TREATMENT REQUESTED]/*/ after the
         Effective Date and the license granted pursuant to Section 2.1 (c)
         hereof has not been terminated by

         /*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN
         OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL
         SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED.
<PAGE>
                                      -8-

         Genzyme pursuant to Section 7.7 hereof, EXACT shall pay Genzyme an
         annual maintenance fee of [CONFIDENTIAL TREATMENT REQUESTED]/*/ payable
         on each anniversary of the Effective Date commencing with the
         [CONFIDENTIAL TREATMENT REQUESTED]/*/ anniversary of the Effective
         Date; PROVIDED, HOWEVER, that if EXACT has submitted a BONA FIDE
         application to the FDA to obtain final marketing approval for a Kit
         within said [CONFIDENTIAL TREATMENT REQUESTED]/*/ period and EXACT's
         failure to make such First Commercial Sale is due to delays in
         obtaining such approval that are caused by the FDA and are not related
         to a substantial deficit in said application, then Genzyme may elect,
         in its sole discretion, to extend said [CONFIDENTIAL TREATMENT
         REQUESTED]/*/ period and shall notify EXACT in writing of any such
         determination and election and of the amount of time by which such
         period has been extended; PROVIDED FURTHER that if the parties disagree
         as to whether said application contained a substantial deficit and the
         time for resolution of such deficit, the dispute shall be referred to
         arbitration pursuant to Article 11 hereof and, until final resolution
         of the dispute, EXACT shall deposit any amounts otherwise due and
         payable to Genzyme under this Section 4.4(b) into an escrow account
         established by EXACT exclusively for such purpose in a recognized
         commercial banking institution reasonably selected by EXACT and
         promptly identified by written notice from EXACT to Genzyme. If the
         arbitrator resolves the dispute in favor of Genzyme, then the amounts
         held in escrow PLUS all interest accrued thereon shall be promptly paid
         to Genzyme in same day funds. Amount payable under this Section 4.4(b)
         shall not be creditable against any royalties or other payments due
         during said year under this Article 4. Waiver or deferral of any
         maintenance fee by Genzyme shall not be construed as waiver or deferral
         of any such subsequent payment.

4.5      EXACT shall pay Genzyme a milestone payment in the amount of
         [CONFIDENTIAL TREATMENT REQUESTED]/*/ within [CONFIDENTIAL TREATMENT
         REQUESTED]/*/ after the first receipt by EXACT of either 510(k)
         clearance or approval of a Pre-Marketing Authorization application
         ("PMA") (or the equivalent of such submissions required at such time)
         for a Kit from the FDA. Such amount shall not be creditable against any
         royalties or other payments due under this Article 4.

4.6      Payment of royalties specified in Section 4.2 shall be made by EXACT to
         Genzyme within forty-five (45) days after March 31, June 30, September
         30 and December 31 each year during the term of this Agreement covering
         Net Sales and Net Service Revenues during the preceding calendar
         quarter. The last such payment shall be made within forty-five (45)
         days after the expiration or earlier termination of this Agreement.

4.7      No multiple royalties shall be payable on any Diagnostic Service,
         Licensed Reagent or Kit because such Diagnostic Service, Licensed
         Reagent or Kit or its practice, manufacture, use, importation or sale
         is or shall be covered by more than one of the Patent Rights.

4.8      All payments to be made under this Article 4 shall be paid in United
         States dollars, in Boston, Massachusetts or at such other place and in
         such other way as Genzyme may reasonably designate in writing, without
         deduction of exchange, collection or other charges. Conversion of
         foreign currency into United States dollars shall be calculated

         /*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN
         OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL
         SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED.
<PAGE>
                                      -9-

         using the applicable exchange rate as published in The Wall Street
         Journal on the date that the payment is first due and payable. If by
         law, regulation or fiscal policy of a particular country, conversion
         into United States dollars or transfers of funds of a convertible
         currency to the Untied States is restricted or forbidden, EXACT shall
         give Genzyme prompt written notice of such restriction or prohibition,
         which notice shall satisfy the forty-five (45) day payment deadline set
         forth in Section 4.6. EXACT shall pay any amounts due to Genzyme
         through whatever lawful methods Genzyme reasonably designates in
         writing; PROVIDED, HOWEVER, that if Genzyme fails to designate such
         payment method within thirty (30) days after Genzyme is notified of the
         restriction, EXACT may deposit such payment in local currency to the
         credit of Genzyme in a recognized commercial banking institution
         reasonably selected by EXACT and promptly identified by written notice
         from EXACT to Genzyme, and such deposit shall fulfill all obligations
         of EXACT to Genzyme with respect to such payment.

4.9      In the event that any payment due hereunder is not made when due, the
         payment shall accrue interest beginning on the first day following the
         due date as herein specified, calculated at the annual rate of the sum
         of (a) two percent (2%) PLUS (b) the prime interest rate quoted by
         BankBoston N.A. on the date said payment is due, the interest being
         compounded on the last day of each calendar quarter; provided, that in
         no event shall said annual rate exceed the maximum legal interest rate
         in Massachusetts. The payment of such interest shall not foreclose
         Genzyme from exercising any other rights it may have as a consequence
         of the lateness of any payment.

4.10     Royalty payments and other payments due to Genzyme under this Agreement
         shall not be reduced by reason of any withholding or similar taxes
         applicable to such payments to Genzyme.

4.11     [CONFIDENTIAL TREATMENT REQUESTED]/*/

                         ARTICLE 5. REPORTS AND RECORDS

5.1      EXACT shall maintain true, accurate and complete books of account,
         records and files containing an accurate record of all data reasonably
         necessary for the full computation and verification of sales and the
         determination of the amounts payable under Article 4 hereof for a
         period of at least four (4) years following the period of each report
         required by Section 5.2 below. Said books and records shall be kept at
         EXACT's principal place of business and shall be in accordance with
         generally accepted accounting principles, consistently applied. Said
         books and records, to the extent not previously audited, shall be
         available for inspection by an independent certified public accountant
         selected by Genzyme (or its licensor of the Patent Rights) and
         reasonably acceptable to EXACT, upon ten (10) business days advance
         written notice and during regular business hours, for three (3) years
         following the end of the calendar year to which they pertain in order
         to enable Genzyme (or its licensor of the Patent Rights) to ascertain
         the correctness of any report and/or payment made under this Agreement.
         Such inspections may be conducted no more than once in any twelve (12)
         month period and, except as provided below, shall be conducted at the
         expense of Genzyme (or its licensor, as the case may be). If such
         examination reveals that royalties have been misstated, any adjustment
         shall be promptly

         /*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN
         OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL
         SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED.
<PAGE>
                                      -10-

         refunded or paid, as appropriate. Genzyme (or its licensor, as the case
         may be) shall pay the fees and expenses of the accountant engaged to
         perform the audit, unless such audit reveals an underpayment of five
         percent (5%) or more for the period examined, in which case EXACT shall
         pay all reasonable costs and expenses incurred by Genzyme (or its
         licensor, as the case may be) in the course of making such
         determination, including without limitation the fees and expenses of
         the accountant.

5.2      Within forty-five (45) days after March 31, June 30, September 30 and
         December 31, of each year in which this Agreement is in effect, EXACT
         shall deliver to Genzyme full, true and accurate reports of its
         activities relating to this Agreement during the preceding three month
         period. These reports shall include at least the following:

         (a) the total actual billings for Diagnostic Services on a
         country-by-country basis during the applicable period;

         (b) the total gross sales of Licensed Reagents and Kits, each
         individually, on a country-by-country basis during the applicable
         period;

         (c) the calculation of Net Service Revenues and Net Sales on a
         country-by-country basis for the applicable period, including a
         detailed listing of the applicable deductions permitted under Sections
         1.11 and 1.12 hereof on an item-by-item basis and a detailed
         explanation of the calculation of Net Service Revenues and Net Sales of
         any Combination Services or combination products; and

         (d) the calculation of total royalties due in U.S. dollars, together
         with the exchange rates used for conversion, to the extent applicable.

5.3      With each such report, EXACT shall pay to Genzyme the royalties due and
         payable as provided for in Section 4.2. To the extent that royalties
         for the applicable period are creditable against minimum royalties paid
         pursuant to Section 4.3 hereof, EXACT shall so report. If no royalties
         are due, EXACT shall so report.

                   ARTICLE 6. PATENT PROSECUTION; INFRINGEMENT

6.1      The prosecution, filing and maintenance of all patents and the expense
         thereof shall be the responsibility of Genzyme (and/or its licensor of
         the Patent Rights).

6.2      (a) EXACT agrees to provide Genzyme with prompt written notice after
         becoming aware of any infringement of any of the Patent Rights.

         (b) Genzyme (or its licensor, as the case may be) shall have the right,
         under its control and at its expense, to prosecute any third party
         infringement of the Patent Rights or to defend the Patent Rights in any
         declaratory judgment action brought by a third party which alleges the
         invalidity, unenforceability or non-infringement of any Patent Right.
         EXACT agrees to cooperate fully in any action under this Section 6.2,
         provided that Genzyme (or its licensor, as the case may be) reimburses
         EXACT for its reasonable costs and expenses incurred in connection with
         providing such assistance.
<PAGE>
                                      -11-

         (c)      In the event that

                  (i)   EXACT notifies Genzyme that a third party is conducting
                        activities in the Field that infringe the Patent Rights
                        in any country,

                  (ii)  said third party continues to infringe for [CONFIDENTIAL
                        TREATMENT REQUESTED]/*/ after receipt by Genzyme of such
                        notice and does not obtain a license from Genzyme under
                        the applicable Patent Rights within such period, and

                  (iii) EXACT can demonstrate to Genzyme's reasonable
                        satisfaction through written documentation that (A)
                        EXACT has Net Sales or Net Service Revenues in one or
                        more countries in which there is any Valid Claim within
                        the Patent Rights, and (B) the infringing activities of
                        said third party have resulted in annualized income to
                        said third party equal to or greater than (x)
                        [CONFIDENTIAL TREATMENT REQUESTED]/*/ worldwide in
                        countries in which there is any Valid Claim within the
                        Patent Rights (determined based on Net Sales or Net
                        Service Revenues of the [CONFIDENTIAL TREATMENT
                        REQUESTED]/*/ or (y) [CONFIDENTIAL TREATMENT
                        REQUESTED]/*/ of EXACT's annualized Net Sales or Net
                        Service Revenues (as applicable) worldwide in countries
                        in which there is any Valid Claim within the Patent
                        Rights (determined based on Net Sales or Net Service
                        Revenues of the[CONFIDENTIAL TREATMENT REQUESTED]/*/),
                        whichever is greater,

         then, after making such a demonstration, EXACT may withhold up to
         [CONFIDENTIAL TREATMENT REQUESTED]/*/ of the royalty payments that
         would otherwise be payable to Genzyme on Net Services Revenues from
         Diagnostic Services covered in whole or in part by the infringed Patent
         Rights or on Net Sales of Licensed Reagents or Kits covered in whole or
         in part by the infringed Patent Rights, as applicable, in such
         countries until such time as the infringement is abated; PROVIDED,
         HOWEVER, that in the event that Genzyme (or its licensor, as the case
         may be) either (A) fails to use good faith efforts to undertake the
         prosecution of such third party infringement or otherwise Resolve such
         infringement within two hundred and forty (240) days after receipt by
         Genzyme of the notice delivered by EXACT pursuant to clause (c)(i)
         above or (B) delivers written notice to EXACT that Genzyme (or its
         licensor, as the case may be) does not intend to undertake the
         prosecution of such third party infringement, then EXACT may withhold
         one hundred percent (100%) of the aforementioned royalty payments;
         PROVIDED FURTHER that, if EXACT withholds such royalty payments and
         Genzyme (or its licensor, as the case may be) either successfully
         Resolves such infringement or undertakes the prosecution of such third
         party infringement and obtains a favorable judgment, settlement,
         consent judgment or other final disposition of the suit, EXACT shall
         resume full payment of the aforementioned royalties due under this
         Agreement on Net Service Revenues and Net Sales in such countries upon
         receipt of either written notice of the successful abatement of such
         infringement by prosecution or Resolution signed by an officer of
         Genzyme or a copy of an official, written evidence of such favorable
         judgment,

         /*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN
         OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL
         SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED.

<PAGE>
                                      -12-

         settlement, consent judgment or other final disposition; PROVIDED
         FURTHER that in the event that Genzyme (or its licensor, as the case
         may be) undertakes the prosecution of such infringement and obtains a
         favorable settlement, an order to dismiss shall constitute adequate
         official written evidence for purposes of this sentence. For purposes
         of this clause (c), "Resolve(s)" or "Resolution" means the cessation of
         such third party infringement other than as a result of prosecution,
         including without limitation the grant of a nonexclusive license under
         the Patent Rights or the discontinuance by such third party of the
         infringing activities.

         (d) If Genzyme notifies EXACT in writing within ten (10) days of
         receiving written documentation pursuant to Section 6.2(c)(iii) above
         that Genzyme is not reasonably satisfied that EXACT has demonstrated
         conditions sufficient to justify the withholding of royalty payments
         under Section 6.2(c) above, then, until final resolution of the
         dispute, EXACT shall deposit all withheld royalty payments otherwise
         due and payable to Genzyme into an escrow account established by EXACT
         exclusively for such purpose in a recognized commercial banking
         institution reasonably selected by EXACT and promptly identified by
         written notice from EXACT to Genzyme. If the parties are unable to
         resolve the dispute within thirty (30) days after EXACT's receipt of
         Genzyme's notice, then the dispute shall immediately be referred to one
         (1) executive officer of each party, chosen in the sole discretion of
         that party, who shall negotiate with each other in good faith to
         resolve the dispute during the period ending thirty (30) days after the
         date of such referral. If the designated officers of the parties are
         unable to resolve the dispute within such thirty (30) day period, the
         dispute shall be referred to arbitration pursuant to Article 11 hereof.
         If such officers or the arbitrator, as applicable, resolves the dispute
         in favor of Genzyme, then the amounts held in escrow plus all interest
         accrued thereon shall be promptly paid to Genzyme in same day funds and
         EXACT shall resume full payment of royalties under this Agreement.

         (e) In the event that EXACT withholds royalty payments pursuant to
         Section 6.2(c), EXACT shall include the amount of such withheld
         royalties and the basis for the calculation thereof on a
         country-by-country basis in the reports deliverable by EXACT to Genzyme
         pursuant to Section 5.2 hereof as distinct line items.

         (f) EXACT hereby acknowledges and agrees that Roche has rights under
         the Patent Rights under an agreement with JHU and, therefore,
         activities by Roche in accordance with such agreement with JHU will not
         be subject to this Section 6.2.

                         ARTICLE 7. TERM AND TERMINATION

7.1      Unless earlier terminated as hereinafter provided, this Agreement shall
         remain in full force and effect until the expiration of the last to
         expire Patent Rights. Royalties on Net Service Revenues from Diagnostic
         Services and on Net Sales of Licensed Reagents and Kits covered by the
         Gene Patent Rights shall cease upon the expiration of the last to
         expire Gene Patent Right. Royalties on Net Service Revenues of
         Diagnostic Services and on Net Sales of Licensed Reagents and Kits
         covered by the Methodology Patent Rights shall cease upon the
         expiration of the last to expire Methodology Patent Right.
<PAGE>
                                      -13-

7.2      If (a) Genzyme, acting reasonably, determines that EXACT has ceased to
         carry on its business with respect to the performance of Diagnostic
         Services in the Field and/or the provision of Licensed Reagents and/or
         Kits in the Field in any country in North America or Europe for a
         period of more than [CONFIDENTIAL TREATMENT REQUESTED]/*/ with no plan
         to resume such business within the following [CONFIDENTIAL TREATMENT
         REQUESTED]/*/, then (b) Genzyme shall have the right to terminate this
         Agreement and all rights, privileges and license hereunder granted with
         respect to such Diagnostic Services and/or Licensed Reagents and/or
         Kits, as applicable, upon six (6) months prior written notice to EXACT;
         PROVIDED, HOWEVER, that if EXACT is temporarily unable to carry on such
         business due to a corporate reorganization or restructuring of EXACT,
         then the [CONFIDENTIAL TREATMENT REQUESTED]/*/ time period set forth in
         clause (a) of this Section 7.2 shall be reasonably extended to
         accommodate such corporate circumstance by a period to be mutually
         agreed upon by the parties, which extension period shall not exceed
         [CONFIDENTIAL TREATMENT REQUESTED]/*/. Such termination shall become
         effective immediately upon the conclusion of such notice period unless
         EXACT shall have resumed such business in good faith prior to the
         expiration of such notice period.

7.3      Should EXACT fail to pay Genzyme any amounts as are due and payable
         hereunder, Genzyme shall have the right to terminate this Agreement
         upon forty-five (45) days prior written notice, unless EXACT shall pay
         Genzyme within said forty-five (45) day period such delinquent amounts
         and all interest due and payable thereon. If EXACT shall not have paid
         all such delinquent amounts and interest due and payable thereon within
         said period, Genzyme, at its sole option, may immediately terminate
         this Agreement and all rights, privileges and license hereunder
         granted.

7.4      EXACT shall have the right to terminate this Agreement and all rights,
         privileges and license hereunder granted at any time upon sixty (60)
         days prior written notice to Genzyme.

7.5      Upon any material breach or default of this Agreement by EXACT, other
         than those delineated in Sections 7.2 and 7.3, which shall always take
         precedence in that order over any material breach or default referred
         to in this Section 7.5, Genzyme shall have the right to terminate this
         Agreement and the rights, privileges and license hereunder granted upon
         sixty (60) days prior written notice to EXACT. Such termination shall
         become effective immediately at the conclusion of such notice period
         unless EXACT shall have cured any such breach or default prior to the
         expiration of said sixty (60) day period.

7.6      (a) If no royalties have been paid by EXACT with respect to any
         Diagnostic Service within [CONFIDENTIAL TREATMENT REQUESTED]/*/ after
         the First Commercial Sale by EXACT of a Diagnostic Service, the rights,
         privileges and license granted under this Agreement to EXACT under
         Section 2.1 (a) hereof shall automatically terminate.

         (b) If no royalties have been paid by EXACT with respect to any
         Licensed Reagent within [CONFIDENTIAL TREATMENT REQUESTED]/*/ after the
         First Commercial Sale of a Licensed Reagent, the rights, privileges and
         license granted under this Agreement to EXACT under Section 2.1 (b)
         hereof shall automatically terminate.

         /*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN
         OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL
         SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED.

<PAGE>
                                      -14-

7.7      (a) If EXACT fails to make a 510(k) or PMA submission for a Kit to the
         FDA (or the equivalent of such submissions as may be required by the
         FDA at such time) within [CONFIDENTIAL TREATMENT REQUESTED]/*/ after
         the Effective Date, Genzyme may, in its sole discretion, elect to
         terminate the rights, privileges and license granted under Section 2.1
         (c) hereof in any or each country in which Genzyme has Patent Rights
         unless such license grant is sooner terminated according to the terms
         of this Agreement.

         (b) If EXACT fails to achieve annual Net Sales of Licensed Reagents and
         Kits for use in the Field of [CONFIDENTIAL TREATMENT REQUESTED]/*/ or
         more within [CONFIDENTIAL TREATMENT REQUESTED]/*/ after the First
         Commercial Sale of a Kit, Genzyme may, in its sole discretion, elect to
         terminate the rights, privileges and license granted under Section 2.1
         (c) hereof in any and each country in which Genzyme has Patent Rights
         unless such license grant is sooner terminated according to the terms
         of this Agreement.

7.8      If EXACT materially fails to perform in accordance with clauses (i),
         (ii) or (iii) of Section 3.1 hereof, Genzyme may elect to terminate the
         rights, privileges and license granted under Section 2.1 with respect
         to the subject matter of the clause or clauses of Section 3.1 under
         which EXACT has materially failed to perform, as set forth in Section
         3.2, hereof upon thirty (30) days prior written notice to EXACT.
         Notwithstanding the foregoing, any termination of the license granted
         under any one clause of Section 2.1 pursuant to this Section 7.8 will
         be effective only with respect to the subject matter of the clause of
         Section 3.1 under which EXACT has materially failed to perform, and the
         remaining clauses of Section 3.1 and the remaining rights granted under
         2.1 shall be unaffected by such termination.

7.9      Upon any termination of this Agreement in its entirety or any of the
         rights, privileges and licenses granted under Section 2.1 hereof, EXACT
         shall be entitled to finish any work-in-progress and to sell any
         completed inventory of Licensed Reagents or Kits, as applicable, which
         remain on hand as of the date of the termination provided that EXACT
         pays Genzyme the royalties applicable to said subsequent sales in
         accordance with the terms and conditions set forth in this Agreement.

7.10     (a) In the event that Genzyme terminates this Agreement and the rights,
         privileges and licenses hereunder granted pursuant to Section 7.2
         above, then Genzyme shall refund to EXACT the PRO RATA share of the
         amount equal to the sum of (i) any payment made by EXACT pursuant to
         Section 4.3 hereof on January 1 of the calendar year in which the
         effective date of such termination falls PLUS (ii) any payment made by
         EXACT pursuant to Section 4.4 hereof on the anniversary of the
         Effective Date immediately preceding the effective date of such
         termination PLUS (iii) one-half of any payment made by EXACT pursuant
         to Section 4.5 hereof if the license granted under Section 2.1 (c) is
         being terminated and if such payment was made by EXACT within the six
         (6) month period immediately preceding the effective date of such
         termination less (iv) the aggregate amount of any payments made by
         Genzyme to JHU in that Year under the JHU License Agreement based on
         the payments described in clauses (i), (ii) and (iii) above.

         /*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN
         OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL
         SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED.
<PAGE>
                                      -15-

         (b) In the event that Genzyme terminates the license granted under
         Section 2.1 (a) hereof with respect to Diagnostic Services pursuant to
         Section 7.6 or 7.8 hereof, then Genzyme shall refund to EXACT the pro
         rata share of the amount equal to the sum of (i) any payment made by
         EXACT pursuant to Section 4.3(a) hereof on January 1 of the calendar
         year in which the effective date of such termination falls PLUS (ii)
         any payment made by EXACT pursuant to Section 4.4(a) hereof on the
         anniversary of the Effective Date immediately preceding the effective
         date of such termination less (iii) the amount of any payment made by
         Genzyme to JHU in that Year based on the payments described in clauses
         (i) and (ii) above.

         (c) In the event that Genzyme terminates the rights, privileges and
         license granted under Section 2.1 (b) or (c) hereof with respect to
         Licensed Reagents and Kits pursuant to Sections 7.7 or 7.8 hereof, then
         Genzyme shall refund to EXACT the PRO RATA share of the amount equal to
         the sum of (i) any payment by EXACT to Genzyme pursuant to Section
         4.3(b) hereof on January 1 in which the calendar year of the effective
         date of such termination falls PLUS (ii) any payment made by EXACT
         pursuant to Section 4.4(b) hereof on the anniversary of the Effective
         Date immediately preceding the effective date of such termination PLUS
         (iii) one-half of any payment made by EXACT pursuant Section 4.5 hereof
         to if the license granted under Section 2.1 (c) is being terminated and
         if such payment was made to Genzyme within six (6) months immediately
         preceding the effective date of such termination less (iv) the
         aggregate amount of any payments made by Genzyme to JHU in that Year
         based on the payments described in clauses (i), (ii) and (iii) above.

         (d) The PRO RATA share of any amounts to be refunded by Genzyme
         pursuant to this Section 7.10 shall be determined based on either (i)
         the portion of the twelve (12) month period after said anniversary of
         the Effective Date or (ii) the portion of said calendar year, as
         applicable, during which this Agreement shall not be in effect. In no
         event shall any amounts be refundable by Genzyme to the extent they
         have been credited by Genzyme against royalties payable by EXACT in
         accordance with Sections 4.3 and/or 4.4 hereof. Interest paid to
         Genzyme pursuant to Section 4.9 hereof or on any amounts held in escrow
         during the pendency of a dispute shall not be included in the
         calculation of any amounts refundable by Genzyme.

         (e) Any and all amounts refundable by Genzyme to EXACT pursuant to this
         Section 7.10 shall be paid to EXACT within thirty (30) days after the
         applicable effective date of the termination.

7.11     Upon the expiration or the earlier termination of this Agreement for
         any reason, nothing herein shall be construed to release either party
         from any obligation that matured prior to the effective date of such
         expiration or the termination. The provisions of Articles 5, 8, 10, 11,
         13, 18 and 21, Section 4.6, 7.9, 7.10 and this Section 7.11 shall
         survive the expiration or earlier termination of this Agreement.

<PAGE>
                                      -16-

                    ARTICLE 8. INDEMNIFICATION AND INSURANCE

8.1      (a) Subject to the provisions of Section 8.3 hereof, EXACT shall
         indemnify, defend and hold harmless Genzyme, JHU, The John Hopkins
         Health System ("JHHS") and their respective present and former
         officers, directors, trustees, employees, consultants, agents,
         students, faculty, treating and consulting physicians, inventors of the
         Patent Rights, subsidiaries, successors, heirs and assigns
         (collectively, the "Genzyme Indemnitees") against any liability,
         damage, loss or expense (including reasonable attorneys' fees and
         expenses of litigation) incurred by or imposed upon the Genzyme
         Indemnitees, or any one of them, in connection with any claims, suits,
         actions, demands or judgments arising out of (i) the design, sale, use,
         manufacture or promotion by EXACT and its officers, directors,
         employees, representatives and agents, of any process, service or
         product relating to, or developed, manufactured, used or commercialized
         pursuant to, this Agreement and (ii) the practice and use of the Patent
         Rights by EXACT and its officers, directors, employees, representatives
         and agents.

         (b) EXACT's indemnification under this Section 8.1 shall not apply to
         any liability, damage, loss or expense to the extent that it is
         directly attributable to the negligence, reckless misconduct or
         intentional misconduct of the Genzyme Indemnitees.

         (c) EXACT agrees, at its own expense, to provide attorneys to defend
         against any actions brought or filed against any Genzyme Indemnitee
         with respect to the subject of indemnity contained herein, whether or
         not such actions are rightfully brought, such attorneys to be
         reasonably acceptable to Genzyme and not to be subject to any conflict
         of interest in representing any of the Genzyme Indemnitees nor to have
         been deemed within the preceding ten (10) years by any Genzyme
         Indemnitee to have provided unsatisfactory legal representation of such
         Genzyme Indemnitee.

8.2      (a) Subject to the provisions of Section 8.3 hereof Genzyme shall
         indemnify, defend and hold harmless EXACT and its present and former
         officers, directors, employees, agents, consultants, successors, heirs
         and assigns (collectively, the "EXACT Indemnitees") against any
         liability, damage, loss or expense (including reasonable attorney's
         fees and expenses of litigation) incurred by or imposed upon the EXACT
         Indemnitees, or anyone of them, in connection with any claims, suits,
         actions, demands or judgments arising out of (i) the design, sale, use,
         manufacture or promotion by Genzyme and its officers, directors,
         employees, representatives and agents, of any process, service or
         product utilizing the Patent Rights in the Field and (ii) the practice
         and use of the Patent Rights in the Field by Genzyme and its officers,
         directors, employees, representatives and agents.

         (b) Genzyme's indemnification under this Section 8.2 shall not apply to
         any liability, damage, loss or expense to the extent it is directly
         attributable to the negligence, reckless misconduct or intentional
         misconduct of the EXACT Indemnitees.

         (c) Genzyme agrees, at its own expenses to provide attorneys to defend
         against any actions brought or filed against any EXACT Indemnitee with
         respect to the subject of indemnity contained herein, whether or not
         such actions are rightfully brought, such

<PAGE>
                                      -17-

         attorneys to be reasonably acceptable to EXACT and not to be subject to
         any conflict of interest in representing any of the EXACT Indemnitees
         not to have been deemed within the preceding ten (10) years by any
         EXACT Indemnitee to have provided unsatisfactory legal representation
         of such EXACT Indemnitee.

8.3      In the event any such action is commenced or claim made or threatened
         against an indemnified party covered by Section 8.1 or 8.2 hereof, the
         indemnified party shall promptly notify the indemnifying party in
         writing of such event. The failure of indemnified party to deliver
         notice to the indemnifying party within a reasonable time after the
         commencement of any such action, if materially prejudicial to the
         ability of the indemnifying party to defend such action, shall relieve
         the indemnifying party of any liability to the indemnified party under
         this Article 8 solely with respect to such action, but the failure to
         deliver notice to the indemnifying party will not relieve it of any
         liability with respect to such action that it may have to the
         indemnified party otherwise than under this Article 8. The indemnifying
         party shall assume, with the reasonable cooperation of the indemnified
         party, the investigation and defense of, and may settle that part of,
         any such claim or action commenced or made against the indemnified
         party which relates to the indemnifying party's indemnification and the
         indemnifying party may take such other steps as may be necessary to
         protect itself. The indemnifying party shall not be liable to
         indemnified party on account of any settlement of any such claim or
         litigation affected without the indemnifying party's express written
         consent, which consent shall not be unreasonably withheld or delayed.
         The right of the indemnifying party to assume the defense of any action
         shall be limited to that part of the action commenced against an
         indemnified party which relates to the indemnifying party's obligation
         of indemnification and holding harmless.

8.4      (a) Beginning at such time as any Diagnostic Service, Licensed Reagent
         or Kit relating to, or developed pursuant to, this Agreement is being
         made available (other than for the purpose of obtaining regulatory
         approvals) by EXACT, EXACT shall, at its sole cost and expense, procure
         and maintain commercial general liability insurance, applicable
         worldwide, in amounts not less than [CONFIDENTIAL TREATMENT
         REQUESTED]/*/ per incident and [CONFIDENTIAL TREATMENT REQUESTED]/*/
         annual aggregate and naming Indemnitees as additional insureds. Such
         commercial general liability insurance shall provide (i) product
         liability coverage and (ii) contractual liability coverage for EXACT's
         indemnification under Section 8.1 of this Agreement. If EXACT elects to
         self-insure all or part of the limits described above (including
         deductibles or retentions that are in excess of [CONFIDENTIAL TREATMENT
         REQUESTED]/*/ annual aggregate) such self-insurance program must be
         acceptable to Genzyme. The minimum amounts of insurance coverage
         required under this Section 8.4(a) shall not be construed to create a
         limit of EXACT's liability with respect to its indemnification
         obligation under Section 8.1 of this Agreement.

         (b) Genzyme shall, at its sole cost and expense, procure and maintain
         commercial general liability insurance, applicable worldwide, in
         amounts not less than [CONFIDENTIAL TREATMENT REQUESTED]/*/ per
         incident and [CONFIDENTIAL TREATMENT REQUESTED]/*/ annual aggregate and
         naming the EXACT Indemnitees as additional insureds. Such commercial
         general liability insurance

         /*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN
         OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL
         SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED.

<PAGE>
                                      -18-

         shall provide (i) product liability coverage and (ii) contractual
         liability coverage for Genzyme's indemnification under Section 8.2 of
         this Agreement. If Genzyme elects to self-insure all or part of the
         limits described above (including deductibles or retentions that are in
         excess of [CONFIDENTIAL TREATMENT REQUESTED]/*/ annual aggregate) such
         self-insurance program must be acceptable to EXACT. The minimum amounts
         of insurance coverage required under this Section 8.4(a) shall not be
         construed to create a limit of Genzyme's liability with respect to its
         indemnification obligation under Section 8.2 of this Agreement.

         (c) Each party shall provide the other with written evidence of such
         insurance upon request of the other party. Each party shall provide the
         other with written notice at least thirty (30) days prior to the
         cancellation, non-renewal or material change in such insurance. If such
         party does not obtain replacement insurance providing comparable
         coverage within such thirty (30) day period, the other party shall have
         the right to terminate this Agreement and the rights, privileges and
         license granted hereunder effective at the end of such thirty (30) day
         period without any notice or additional waiting periods.

         (d) Each party shall maintain such comprehensive general liability
         insurance beyond the expiration or termination of this Agreement during
         (a) the period that any process, service or product relating to, or
         developed pursuant to, this Agreement is being made available (other
         than for the purpose of obtaining regulatory approvals) by EXACT and
         (b) a reasonable period after the period referred to in clause (a)
         above which in no event shall be less than fifteen (15) years.

             ARTICLE 9. REPRESENTATIONS, WARRANTIES AND DISCLAIMERS

9.1      (a) Genzyme hereby represents and warrants to EXACT that it has the
         right and power to enter into this Agreement, to extend the rights and
         licenses granted herein and to perform its obligations hereunder, and
         that this Agreement is a valid and binding agreement, enforceable in
         accordance with its terms.

         (b) Genzyme further represents and warrants to EXACT that Genzyme is
         not in material breach of the JHU License Agreement as of the Effective
         Date, and that Genzyme will use commercially reasonable and diligent
         efforts to comply with all of its material obligations and duties with
         regard to the Patent Rights under the JHU License Agreement, including
         without limitation any provisions of the JHU Agreement as may be
         reasonably necessary to maintain in effect this Agreement or preserve
         EXACT's rights under this Agreement, including without limitation the
         preservation of EXACT's rights hereunder in the event that Genzyme
         shall breach or default on its obligations under the JHU License
         Agreement.

         (b) EXACT hereby represents and warrants to Genzyme that it has the
         right and power to enter into this Agreement and to perform its
         obligations hereunder, and that this Agreement is a valid and binding
         agreement, enforceable in accordance with its terms. EXACT agrees that
         it shall comply with all applicable local, state, Federal and

         /*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN
         OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL
         SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED.

<PAGE>
                                      -19-

         international laws and regulations relating to the development, design,
         manufacture, sale, use in commerce and promotion of Diagnostic
         Services, Licensed Reagents and Kits.

9.2      EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN SECTION 9.1, GENZYME MAKES
         NO WARRANTY, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY
         IMPLIED WARRANTIES OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR
         PURPOSE WITH RESPECT TO ANY PATENT, TRADEMARK, SOFTWARE, NONPUBLIC OR
         OTHER INFORMATION, OR TANGIBLE RESEARCH PROPERTY, LICENSED OR OTHERWISE
         PROVIDED TO EXACT HEREUNDER AND HEREBY DISCLAIMS THE SAME.

9.3      GENZYME DOES NOT WARRANT THE VALIDITY OF THE PATENT RIGHTS LICENSED
         HEREUNDER AND MAKES NO REPRESENTATION WHATSOEVER WITH REGARD TO THE
         SCOPE OF THE LICENSED PATENT RIGHTS OR THAT SUCH PATENT RIGHTS MAY BE
         EXPLOITED BY EXACT WITHOUT INFRINGING OTHER PATENTS.

9.4      NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, EACH OF THE
         PARTIES HERETO DISCLAIMS ALL OBLIGATIONS ON THE PART OF SUCH PARTY FOR
         DAMAGES, INCLUDING BUT NOT LIMITED TO DIRECT, INDIRECT, SPECIAL AND
         CONSEQUENTIAL DAMAGES, ATTORNEYS' AND EXPERTS' FEES AND EXPENSES, AND
         COURT COSTS (EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE PROBABILITY OF
         SUCH DAMAGES, FEES, EXPENSES AND COSTS) ARISING OUT OF OR IN CONNECTION
         WITH THE MANUFACTURE, USE, SALE OR PROVISION OF THE LICENSED REAGENTS,
         DIAGNOSTIC SERVICES UTILIZING THE LICENSED PROCESSES AND KITS BY THE
         OTHER PARTY. EXACT ASSUMES ALL RESPONSIBILITY AND LIABILITY FOR ANY
         LOSS OR DAMAGES CAUSED BY A LICENSED REAGENT, DIAGNOSTIC SERVICE OR KIT
         MANUFACTURED, USED, SOLD OR PROVIDED BY EXACT. GENZYME ASSUMES ALL
         RESPONSIBILITY AND LIABILITY FOR ANY LOSS OR DAMAGES CAUSED BY A
         LICENSED REAGENT, DIAGNOSTIC SERVICE OR KIT MANUFACTURED, USED, SOLD OR
         PROVIDED BY GENZYME.

                               ARTICLE 10. NOTICES

10.1     Any consent, notice or report required or permitted to be given or made
         under this Agreement shall be in writing, delivered (i) by certified or
         registered mail (postage prepaid, return receipt requested), (ii) by
         facsimile (and promptly confirmed by personal delivery, courier or next
         business day service of a nationally recognized courier service of good
         repute), (iii) by a next business day service of a nationally
         recognized courier service of good repute (with evidence of delivery)
         or (iv) by courier (postage prepaid and signature required), and in any
         case addressed to the other party at its address set forth in this
         Article 10, and shall be effective upon receipt by the addressee.

10.2     Reports, notices and other communications from EXACT to Genzyme as
         provided hereunder shall be sent to:

<PAGE>
                                      -20-

                  President, Molecular Oncology Division
                  Genzyme Corporation
                  One Mountain Road
                  P.O.  Box 9322
                  Framingham, MA 01701-9322
                  Facsimile: (508) 271-2604

         with a copy to

                  Chief Legal Officer
                  Genzyme Corporation
                  One Kendall Square
                  Cambridge, MA 02139
                  Facsimile: (617) 252-7553

         or to such other individual or address as shall hereafter be furnished
         by written notice to EXACT in accordance with this Article 10.

10.3     Reports, notices and other communications from Genzyme to EXACT as
         provided hereunder shall be sent to:

                  President
                  EXACT Laboratories, Inc.
                  63 Great Road
                  Maynard, MA 01754
                  Facsimile: (978) 897-3481

or to such other individual or address as shall hereafter be furnished by
written notice to Genzyme in accordance with this Article 10.

                             ARTICLE 11. ARBITRATION

11.1     Any controversy or claim arising out of, or relating to any provisions
         of this Agreement or the breach thereof which cannot otherwise be
         resolved by good faith negotiations between the parties, or by any form
         of Alternate Dispute Resolution other than arbitration which may be
         mutually acceptable to the parties, shall be resolved by final and
         binding arbitration in Boston, Massachusetts under the rules of the
         American Arbitration Association, or the Patent Arbitration Rules if
         applicable, then obtaining.

         The arbitration shall be subject to the following terms:

         (a)      The number of arbitrators shall be one (1).

         (b) The arbitrator shall be an independent, impartial third party
         having no direct or indirect personal or financial relationship to any
         of the parties to the dispute, who has agreed to accept the appointment
         as arbitrator on the terms set out in this Section 11.1.

<PAGE>
                                      -21-

         (c) The arbitrator shall be an active or retired attorney, law
         professor, or judicial officer with at least five (5) years experience
         in the biotechnology or pharmaceuticals industries and a familiarity
         with the laws governing proprietary rights in intellectual property.

         (d) The arbitrator shall be selected as follows:

                  (i)  Each party shall submit a description of the matter to be
                       arbitrated to the American Arbitration Association at its
                       Regional Office in Boston, Massachusetts. Said
                       Association shall submit to the parties a list of the
                       arbitrators available to arbitrate any dispute between
                       them. Thereafter, each party shall select, in numerical
                       order, those persons on said list acceptable as
                       arbitrators and return the same to the Association. The
                       first arbitrator acceptable to both parties shall be
                       deemed the selected arbitrator with respect to the
                       dispute then at issue under this Agreement. In the event
                       of a failure to select a mutually agreeable arbitrator,
                       the Association shall be requested to submit as many
                       subsequent lists of arbitrators as shall be necessary to
                       effect a mutual selection.

                  (ii) If the method of selection set out in paragraph (d)(i)
                       above fails for any reason, then either party may
                       petition any state or federal court in Massachusetts
                       having jurisdiction for appointment of the arbitrator in
                       accordance with applicable law, provided that the
                       arbitrator must satisfy the requirements of paragraphs
                       (b) and (c) above.

         (e) The arbitrator shall announce the decision and/or award in writing
         accompanied by written findings explaining the facts determined in
         support of the decision and/or award, and any relevant conclusions of
         law.

         (f) Unless otherwise provided in this Section 11.1 or extended by
         agreement of the parties, each party shall submit an initial request
         for designation of an arbitrator within thirty (30) days after receipt
         of the first list of available arbitrators pursuant to Section 11.1 (d)
         of this Agreement, the dispute shall be submitted to the arbitrator
         within ninety (90) days after the arbitrator is selected, and a
         decision shall be rendered within thirty (30) days after the dispute is
         submitted.

         (g) The fees of the arbitrator and any other costs and fees associated
         with the arbitration shall be paid in accordance with the decision of
         the arbitrator.

         (h) The arbitrator shall have no power to add to, subtract from, or
         modify any of the terms or conditions of this Agreement. Any award
         rendered in such arbitration may be enforced by either party in either
         the courts of the Commonwealth of Massachusetts, or in the United
         States District Court for the District of Massachusetts, to whose
         jurisdiction for such purposes Genzyme and EXACT each hereby
         irrevocably consents and submits.

11.2     Notwithstanding the foregoing, nothing in this Article shall be
         construed to waive any rights or timely performance of any obligations
         existing under this Agreement.

<PAGE>
                                      -22-

                    ARTICLE 12. RESTRICTIONS ON USE OF NAMES

12.1     EXACT shall not use the name of Genzyme or its divisions, JHU, JHHS or
         their respective directors, officers, trustees, affiliates, employees,
         faculty, students and the inventor(s) of the Patent Rights or any
         adaptations or contractions thereof in any advertising, promotional or
         sales literature without the prior written consent of Genzyme or JHU in
         each case, as applicable; PROVIDED, HOWEVER, that EXACT (a) may refer
         to publications by employees of Genzyme in the scientific literature
         and (b) may state that a license from Genzyme has been granted as
         herein provided. With respect to reports to public agencies that are
         required by law, EXACT shall provide Genzyme with a reasonable
         opportunity to review the use of its name in each such report
         reasonably in advance of its submission.

12.2     EXACT shall not disclose this Agreement or any of the terms or
         conditions of this Agreement to any third party without the prior
         written consent of Genzyme except and to the extent required to comply
         with applicable laws or regulations; provided, that EXACT delivers
         prior written notice to Genzyme of any disclosure required by
         applicable laws or regulations and takes all reasonable and lawful
         actions to obtain confidential treatment for such disclosure and, if
         possible, to minimize the extent of such disclosure.

                               13. CONFIDENTIALITY

13.1     During the term of this Agreement, each party (the "disclosing party")
         may communicate to the other party (the "receiving party") information
         which it considers to be confidential ("Confidential Information"). All
         Confidential Information shall be specifically designated as
         confidential. Such Confidential Information may include, without
         limitation, trade secrets, know-how, inventions, technical data or
         specifications, testing methods, business or financial information,
         research and development activities, product and marketing plans, and
         customer and supplier information. Confidential Information that is
         disclosed in writing shall be marked with a legend indicating its
         confidential status. Confidential Information that is disclosed orally
         or visually shall be documented in a written notice prepared by the
         disclosing party and delivered to the receiving party within thirty
         (30) days of the date of disclosure; such notice shall summarize the
         Confidential Information disclosed to the receiving party and reference
         the time and place of disclosure.

13.2     The receiving party agrees that it shall: (a) maintain all Confidential
         Information in strict confidence, except that the receiving party may
         disclose or permit the disclosure of any Confidential Information to
         its directors, officers, employees, consultants, and advisors who are
         obligated to maintain the confidential nature of such Confidential
         Information and who need to know such Confidential Information for the
         purposes set forth in this Agreement; (b) use all Confidential
         Information solely for the purposes set forth in this Agreement; and
         (c) allow its directors, officers, employees, consultants, and advisors
         to reproduce the Confidential Information only to the extent necessary
         to effect the purposes set forth in this Agreement, with all such
         reproductions being considered Confidential Information.

<PAGE>
                                      -23-

13.3     The obligations of the receiving party under Section 13.2 above shall
         not apply to the extent that the receiving party can demonstrate that
         certain Confidential Information: (a) was in the public domain prior to
         the time of its disclosure under this Agreement; (b) entered the public
         domain after the time of its disclosure under this Agreement through
         means other than an unauthorized disclosure resulting from an act or
         omission by the receiving party; (c) was independently developed or
         discovered by the receiving party without use of the Confidential
         Information; (d) is or was disclosed to the receiving party at any
         time, whether prior to or after the time of its disclosure under this
         Agreement, by a third party having no fiduciary relationship with the
         disclosing party and having no obligation of confidentiality with
         respect to such Confidential Information; or (e) is required to be
         disclosed to comply with applicable laws or regulations, or with a
         court or administrative order, provided, that the disclosing party
         receives prior written notice of such disclosure and that the receiving
         party takes all reasonable and lawful actions to obtain confidential
         treatment for such disclosure and, if possible, to minimize the extent
         of such disclosure.

13.4.    The obligations set forth in this Article 13 shall remain in effect for
         a period of five (5) years after the expiration or the earlier
         termination of this Agreement.

                           ARTICLE 14. PATENT MARKING

14.      EXACT agrees to mark any Kits, Licensed Reagents or promotional
         materials, technical literature and the like that describe Kits,
         Licensed Reagents or Diagnostic Services with all applicable patent
         numbers, and to indicate "Patent Pending" status in accordance with
         each applicable country's patent laws.

                       ARTICLE 15. INDEPENDENT CONTRACTOR

15.      For the purpose of this Agreement and all services to be provided
         hereunder, both parties shall be, and shall be deemed to be,
         independent contractors and not agents or employees of the other.
         Neither party shall have authority to make any statements,
         representations or commitments of any kind, or to take any action, that
         will be binding on the other party.

                            ARTICLE 16. SEVERABILITY

16.      If any one or more of the provisions of this Agreement shall be held to
         be invalid, illegal or unenforceable, the validity, legality or
         enforceability of the remaining provisions of this Agreement shall not
         in any way be affected or impaired thereby unless the invalid
         provisions are of such essential importance to this Agreement that it
         is to be reasonably assumed that the parties would not have entered
         into this Agreement without the invalid provisions.

                          ARTICLE 17. NON-ASSIGNABILITY

17.      Neither this Agreement nor any part hereof shall be assignable by
         either party without the express prior written consent of the other,
         which shall not be unreasonably withheld. Any attempted assignment
         without such consent shall be void. Notwithstanding the foregoing, such
         consent shall not be required for the assignment of this Agreement (i)
         by

<PAGE>
                                      -24-

         EXACT in connection with the sale or transfer of all or substantially
         all of the business or assets of EXACT however structured, or (ii) by
         Genzyme in conjunction with the transfer of all or substantially all of
         the business or assets of Genzyme or all or substantially all of the
         business or assets allocated to its Molecular Oncology Division however
         structured; PROVIDED, in any such case, that the assignor promptly
         notifies the other party hereto of such assignment and the assignee
         assumes all of the assignor's obligations hereunder in writing, with a
         copy of such written assumption (which may be redacted to the extent
         reasonably necessary to protect confidential information) to be
         promptly delivered to the other party hereto.

                          ARTICLE 18. NON-SOLICITATION

18.      During the term of this Agreement and during the period ending two (2)
         years after the expiration or earlier termination of this Agreement,
         neither party shall, without the prior written consent of the other,
         solicit the employment of, or employ, any person in any capacity who,
         at any time during the term of this Agreement, shall have been an
         employee of the other party.

                          ARTICLE 19. ENTIRE AGREEMENT

19.      This Agreement constitutes the entire agreement between the parties
         with respect to the subject matter and supersedes any prior agreements
         and understandings between the parties relating to the subject matter
         hereof. No oral agreement, conversation or representation between any
         officers, agents or employees of the parties hereto either before or
         after the execution of this Agreement shall affect or modify any of the
         terms or obligations herein contained.

                      ARTICLE 20. MODIFICATIONS IN WRITING

20.      No change, modification, extension, termination or waiver of this
         Agreement, or any of the provisions herein contained, shall be valid
         unless made in writing and signed by a duly authorized representative
         of each party.

                            ARTICLE 21. GOVERNING LAW

21.      The validity and interpretation of this Agreement and the legal
         relations of the parties to it shall be governed by the laws of the
         Commonwealth of Massachusetts without regard to the conflict of laws
         provisions thereunder.

                              ARTICLE 22. CAPTIONS

22. The captions are provided for convenience and are not to be used in
construing this Agreement.

                            ARTICLE 23. CONSTRUCTION

23.      Each of the parties agree that this Agreement is the result of mutual
         negotiation and therefore the language herein shall not be
         presumptively construed against either of them.

<PAGE>
                                      -25-

                            ARTICLE 24. COUNTERPARTS

24.      This Agreement may be executed in one or more counterparts, each of
         which shall be deemed to be an original, and all of which together
         shall be deemed to be one and the same instrument.

                           ARTICLE 25. BINDING EFFECT

25.      This Agreement shall be binding upon and inure to the benefit of the
         parties and their respective permitted successors and permitted
         assigns.

                            ARTICLE 26. FORCE MAJEURE

         26. Neither party shall be deemed to be in breach of this Agreement due
         to, or liable to the other party for damages or loss occasioned by
         failure of performance by the defaulting party if the failure is
         occasioned by war, fire, explosion, flood, acts of God, strike or
         lockout, embargo, or any similar cause beyond the control of the
         defaulting party; provided that the party claiming this exception has
         exerted all commercially reasonable and diligent efforts to avoid or
         remedy such event and that such event does not extend for more than
         nine (9) months; provided further that such party provides the other
         party with prompt written notice of any delay or failure to perform
         that occurs by reason of force majeure and continues performance
         hereunder with reasonable dispatch whenever such causes are removed.
         The parties shall mutually seek a resolution of the delay or failure to
         perform in good faith if a force majeure event extends for more than
         nine (9) months, which resolution may be termination of this Agreement.

                        ARTICLE 27. JHU LICENSE AGREEMENT

27.      In the event that Genzyme's license to the Patent Rights under the JHU
         License Agreement is terminated, this Agreement shall remain in effect
         pursuant to the terms of the JHU License Agreement provided that at
         such time EXACT is not in material breach of the provisions of this
         Agreement and agrees to be bound to JHU as a licensor under the terms
         and conditions of this Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>
                                      -26-

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

GENZYME CORPORATION

By: /s/ Peter Wirth
    -----------------------------------
Name:  Peter Wirth
       --------------------------------
Title: Executive Vice President
       --------------------------------
Date:  March 25, 1999
       --------------------------------

EXACT LABORATORIES, INC.

By: /s/ Donna K. Hazad
    -----------------------------------
Name: Donna K. Hazad
      ---------------------------------
Title: V.P. Business Development
       --------------------------------
Date: March 23, 1999
      ---------------------------------

<PAGE>
                                      -27-

                                   Appendix A

                               Gene Patent Rights

U.S. Patent No. 5,352,775

         AU9213669                  Patent Application No.  W092/13103
         GB 91000962                US Patent No. 5,648,212 (Div. of '775)
         GB 91000963                US Patent No. 5,691,454 (Div. of '775)
         GB 91000974                US Patent No. 5,783,666 (Div. of '775)
         GB 9100975
         EP 569527
         JP 7500241

U.S. Patent No. 5,527,676

         EP 390323
         JP 4004898

<PAGE>
                                      -28-

                                   Appendix B

                            Methodology Patent Rights

Patent Application No. W093/20235 (detecting mammalian nucleic acids from stool)

EP 672181
JP 8504081
U.S.  Patent Application No.  08/861,910<PAGE>

                                                                 EXHIBIT 10.13

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                           PAGE
<S>                                                                        <C>
BACKGROUND.....................................................................1

Section 1    DEFINITIONS.......................................................1

Section 2    GRANT.............................................................3

Section 3    ACKNOWLEDGMENT AND AGREEMENT ON DIAGNOSTIC PRODUCTS...............5

Section 4    ROYALTIES, RECORDS AND REPORTS....................................5

Section 5    PERFORMANCE OF LICENSED SERVICES..................................6

Section 6    TECHNOLOGY NOTIFICATION...........................................6

Section 7    DILIGENCE.........................................................7

Section 8    TERM AND TERMINATION..............................................7

Section 9    CONFIDENTIALITY-PUBLICITY.........................................8

Section 10   COMPLIANCE.......................................................10

Section 11   ASSIGNMENT.......................................................10

Section 12   NATION OF WARRANTIES AND INDEMNITY...............................10

Section 13   GENERAL..........................................................11
</TABLE>

ATTACHMENTS:

Attachment I   COMBINATION SERVICES

Attachment II  Summary Royalty Report form

Rider

Appendix A to Rider

<PAGE>

                        PCR DIAGNOSTIC SERVICES AGREEMENT

         This Agreement is made by and between Roche Molecular Systems, Inc.
("RMS"), having an office at 4300 Hacienda Drive, Pleasanton, California 94588
and Exact Laboratories, Inc. ("ELI"), Maynard, Massachusetts, hereafter
collectively referred to as "The Parties".

                                   BACKGROUND

A. RMS owns and has the right to grant immunities from suit to practice under
certain United States Patents describing and claiming, INTER ALIA, a nucleic
acid amplification process known as the polymerise chain reaction ("PCR")
technology.

B. ELI has attained substantial expertise in validating, documenting and
performing sophisticated diagnostic procedures.

C. ELI desires to obtain an immunity from suit from RMS to practice PCR
TECHNOLOGY to perform human IN VITRO clinical laboratory services, and RMS is
willing to grant such an immunity, on the terms and subject to the conditions
provided exclusively in this Agreement.

         NOW, THEREFORE, for and in consideration of the mutual covenants
contained herein, RMS and ELI agree as follows:

         1.  DEFINITIONS

         For the purpose of this Agreement, and solely for that purpose, the
terms set forth hereinafter shall be defined as follows:

             1.1 The term "AFFILIATE" of a designated Party to this Agreement
shall mean:

                 a)  an organization of which fifty percent (50%) or more of the
                     voting stock is controlled or owned directly or indirectly
                     by either Party to this Agreement;

                 b)  an organization which directly or indirectly owns or
                     controls fifty percent (50%) or more of the voting stock of
                     either Party to this Agreement;

                 c)  an organization, the majority ownership of which is
                     directly or indirectly common to the majority ownership of
                     either Party to this Agreement; and

                 d)  an organization under (a), (b), or (c) above in which the
                     amount of said ownership is less than fifty percent (50%)
                     and that amount is

                                      -1-
<PAGE>

                     the maximum amount permitted pursuant to the law governing
                     the ownership of said organization.

         It is understood and agreed, however, that the term "AFFILIATE" shall
not include Genentech Inc., a Delaware Corporation.

                  1.2 "COMBINATION SERVICES" shall mean a LICENSED SERVICE
offered in combination with [CONFIDENTIAL TREATMENT REQUESTED]/*/ as part of a
package, where the LICENSED SERVICE is not separately billed.

                  1.3 "DIAGNOSTIC PRODUCT" shall mean an assemblage of reagents,
including but not limited to reagents packaged in the form of a kit, useful in
performing a Licensed Service.

                  1.4 "EFFECTIVE DATE" shall mean the date on which the last
signatory to this Agreement signs the Agreement.

                  1.5 "LICENSED FIELD" shall mean the field of human IN VITRO
diagnostics solely for the detection of genetic diseases, genetic predisposition
to disease, agents associated with infectious diseases, cancer; and for tissue
transplant typing, including testing performed on animal tissue intended for use
in xenotransplantation; PARENTAGE DETERMINATION; disease management; and
clinical trials.

                  1.6 "LICENSED SERVICES" shall mean the performance by ELI of
an IN VITRO diagnostic procedure utilizing PCR TECHNOLOGY to detect' the
presence, absence or quantity of a nucleic acid sequence associated with a human
disease or condition within the LICENSED FIELD. LICENSED SERVICES include but
are not limited to, any combination of the steps of collecting a sample for
analysis, isolating nucleic acid sequences therein, amplifying one or more
desired sequences, analyzing the amplified material and reporting the results.

                  1.7 "NET SERVICE REVENUES" shall mean gross invoice price for
the LICENSED SERVICES performed by ELI (or the fair market value for any
nonmonetary consideration which ELI agrees to receive in exchange for LICENSED
SERVICES), less the following deductions where they are factually applicable and
are not already reflected in the gross invoice price:

                      a) discounts allowed and taken, in amounts customary in
                         the trade (which shall include the difference between
                         the dollar amount charged by ELI for a LICENSED SERVICE
                         and the Medicare and/or Medicaid Limits of Allowance
                         and/or reimbursement limitations of a THIRD PARTY
                         insurance program); and

                      b) government imposed sales taxes and other taxes to the
                         extent they are separately identified on the invoice;
                         and

         /*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN
         OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL
         SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED.

                                      -2-
<PAGE>

                      c) actual bad debt, up to 2% of gross invoice price for
                         LICENSED SERVICES, which bad debt ELI can prove and
                         document that it was reasonable and diligent in its
                         efforts to collect payment.

         No allowance or deduction shall be made for commissions or collections,
by whatever name known.

         It is hereby understood and agreed that, to the extent feasible,
LICENSED SERVICES and COMBINATION SERVICES shall at all times be invoiced,
listed and billed by ELI as a separate item in ELI's invoices, bills and reports
to customers. NET SERVICE REVENUES for determining royalties on a LICENSED
SERVICE which is part of a COMBINATION SERVICES shall be determined by
[CONFIDENTIAL TREATMENT REQUESTED]/*/ in Attachment I hereto. The [CONFIDENTIAL
TREATMENT REQUESTED]/*/ specified in Attachment I for a particular LICENSED
SERVICE shall be set by RMS after consultation with ELI, [CONFIDENTIAL TREATMENT
REQUESTED]/*/ by the LICENSED SERVICE to the [CONFIDENTIAL TREATMENT
REQUESTED]/*/ of the COMBINATION SERVICES as offered by ELI. Attachment I hereto
shall be modified as new COMBINATION SERVICES are identified and new
royalty-bearing fractions set.

         The NET SERVICE REVENUES of the LICENSED SERVICES that are performed by
ELI for any person, firm or corporation controlling, controlled by, or under
common control with ELI, or enjoying a special course of dealing with ELI, shall
be determined based on the average selling price to all THIRD PARTIES during the
period on a test by test basis.

                  1.8 "PARENTAGE DETERMINATION" shall mean analysis of human
genetic material to ascertain whether two or more individuals are biologically
related, but specifically excludes analysis of forensic evidence for a sexual
assault investigation.

                  1.9 "PCR TECHNOLOGY" shall mean polymerase chain reaction
technology covered by United States Patent Nos. B1 4,683,195 and B1 4,683,202
and any reissue or reexamination patents thereof.

                  1.10 "THIRD PARTY" shall mean a party other than an AFFILIATE
of The Parties to this Agreement.

         2.  GRANT

             2.1 Upon the terms and subject to the conditions of this Agreement,
RMS hereby grants to ELI, and ELI hereby accepts from RMS, a royalty-bearing,
nonexclusive immunity from suit under PCR TECHNOLOGY solely to perform LICENSED
SERVICES within the United States and its possessions and the Commonwealth of
Puerto Rico. [CONFIDENTIAL TREATMENT REQUESTED]/*/.

             2.2 The PCR TECHNOLOGY hereunder may be practiced solely for the
performance of LICENSED SERVICES and for no other purpose whatsoever, and no
other right, immunity or license is granted expressly, impliedly or by estoppel.

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

                                      -3-
<PAGE>

         2.3 ELI expressly acknowledges and agrees that the immunity from suit
pursuant to this Agreement is personal to ELI alone and ELI shall have no right
to sublicense, assign or otherwise transfer or share its rights under the
foregoing immunity from suit. ELI further agrees that LICENSED SERVICES will be
performed, offered, marketed and sold only by ELI except as provided in Section
2.3(a) and ELI shall not authorize any other party, including AFFILIATES, to
practice the PCR TECHNOLOGY, nor shall it practice the PCR TECHNOLOGY in
conjunction with any other party. The foregoing notwithstanding, it is
understood that ELI may market services through its authorized sales
representatives.

         a)  ELI may offer, market and sell LICENSED SERVICES that are
             performed by other laboratories subject to the following
             conditions:

             i)   Each laboratory performing LICENSED SERVICES for ELI must be
                  separately licensed under RMS's diagnostic services program.

             ii)  ELI's report forms must list all LICENSED SERVICES marketed
                  and sold by ELI which are performed by another laboratory even
                  though ELI will not be obligated to pay royalties on those
                  LICENSED SERVICES.

             iii) ELI must contact RMS to verify that a new laboratory to which
                  it seeks to send samples for performance of LICENSED SERVICES
                  is properly licensed by RMS before sending samples to that
                  laboratory.

             iv)  Each laboratory performing LICENSED SERVICES for ELI must
                  report and pay royalties on LICENSED SERVICES performed for
                  ELI.

         2.4 For each COMBINATION SERVICES that ELI offers pursuant to this
immunity from suit, ELI agrees that it will notify RMS at least sixty (60) days
before it commences offering said COMBINATION SERVICES. COMBINATION SERVICES
claimed by ELI on royalty reports which have not met the sixty (60) day notice
requirement and for which RMS has not set an appropriate royalty bearing
fraction, shall be royalty bearing at 100% of the package price, less applicable
deductions. As to all other LICENSED SERVICES offered by ELI which are not part
of a COMBINATION SERVICES, ELI agrees to inform RMS of the availability from ELI
of each such LICENSED SERVICE within thirty (30) days after ELI commences
offering the Licensed Service.

         2.5 RMS hereby grants to ELI the right and ELI accepts and agrees to
credit RMS as the source of PCR TECHNOLOGY rights in ELI's, promotional
materials and any other materials intended for distribution to THIRD PARTIES as
follows:

"This test is performed pursuant to a license agreement with Roche Molecular
Systems, Inc."

                                      -4-
<PAGE>

         3. ACKNOWLEDGMENT AND AGREEMENT ON DIAGNOSTIC PRODUCTS

            ELI acknowledges and agrees that the immunity from suit granted
hereunder is for the performance of LICENSED SERVICES only and does not include
any right to make, have made, import, offer or sell any products, including
devices, PCR reagents, kits or DIAGNOSTIC PRODUCTS. ELI further acknowledges and
agrees that RMS Affiliates are in the business of providing clinical laboratory
testing services and the commercial sale of diagnostic testing systems and
therefore may compete directly with ELI's business.

         4. ROYALTIES, RECORDS AND REPORTS

            4.1 ROYALTIES. For the rights and privileges granted under this
Agreement, ELI shall pay to RMS earned royalties equal to [CONFIDENTIAL
TREATMENT REQUESTED]/*/ percent [CONFIDENTIAL TREATMENT REQUESTED]/*/ of ELI's
NET SERVICE REVENUES for each LICENSED SERVICE performed.

            4.2 ELI shall keep full, true and accurate books of account
containing all particulars which may be necessary for the purpose of showing the
amount payable to RMS by way of royalty or by way of any other provision. under
this Agreement. Such books and the supporting data shall be open at all
reasonable times, for three (3) years following the end of the calendar year to
which they pertain (and access shall not be denied thereafter, if reasonably
available), to the inspection of RMS or an independent certified public
accountant retained by RMS for the purpose of verifying ELI's royalty statements
or ELI's compliance in other respects with this Agreement. It is understood that
RMS's inspection of ELI's records does not require access to actual patient
results. If in dispute, such records shall be kept until the dispute is settled.
The inspection of records shall be at RMS's sole cost and expense, unless the
inspector concludes that royalties reported by ELI for the period being audited
are understated by five percent (5%) or more from actual royalties, in which
case the costs and expenses of such inspection shall be paid by ELI.

            4.3 ELI shall within sixty (60) days after the first day of January
and July of each year deliver to RMS a true and accurate royalty report. Such
report shall cover the preceding six (6) calendar months; and shall be submitted
either i) on the "Summary Royalty Report", a copy of which is attached hereto as
Attachment II, or ii) on a form generated by ELI which duplicates the format of
the Summary Royalty Report; and shall include at least the following:

                a) the name of each LICENSED SERVICE and COMBINATION SERVICES
                   and the number performed during those six (6) months;

                b) compilation of billings thereon and the allowable deductions
                   therefrom;

                c) NET SERVICE REVENUES and the calculation of total royalties
                   thereon; and

         /*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN
         OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL
         SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED.

                                      -5-
<PAGE>

                d) the calculation of the net royalty payable to RMS. If no
                   royalties are due, it shall be so reported.

         The correctness and completeness of each such report shall be attested
to in writing by a responsible financial officer of ELI's organization or by
ELI's external auditor or by the chair or other head of ELI's internal audit
committee.

         Simultaneously with the delivery of each such report, ELI shall pay to
RMS the royalty due under this Agreement for the period covered by such report.
All payments due RMS hereunder shall be payable in United States currency and
sent together with the royalty report by the due date to the following address:

                                    Roche Molecular Systems, Inc.
                                    P.O. Box 18139
                                    Newark, NJ 07191

or to any address that RMS may advise in writing.

                  4.4 Licensed Clinical Services performed by ELI prior to
execution of this Agreement shall be royalty bearing and reported to RMS
together with the first royalty report due hereunder.

                  4.5 ELI's obligation to pay royalties pursuant to this
Agreement shall terminate upon a final holding of invalidity or unenforceability
of all of the patents identified in Section 1.9, SUPRA, by a court of appellate
jurisdiction or by a trial court from which no appeal is or can be taken.

                  4.6 If ELI shall fail to pay any amount specified under this
Agreement after the due date thereof, the amount owed shall bear interest at the
Citibank NA base lending rate ("prime rate") plus [CONFIDENTIAL TREATMENT
REQUESTED]/*/% from the due date until paid, provided, however, that if this
interest rate is held to be unenforceable for any reason, the interest rate
shall be the maximum rate allowed by law at the time the payment is due.

         5. PERFORMANCE OF LICENSED SERVICES

            The Parties agree that quality assurance is of utmost importance in
the performance of LICENSED SERVICES. To that end, ELI agrees that it will
participate in at least one independent proficiency testing program for each
LICENSED SERVICE when such program(s) becomes available.

         6. TECHNOLOGY NOTIFICATION

            6.1 With respect to any invention, improvement or discovery
(hereinafter referred to as "Discoveries" in this Article) of ELI made after
entering into this Agreement, resulting from work conducted under this Agreement
and being applicable to PCR, if ELI

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

                                      -6-
<PAGE>

decides to license said Discoveries to THIRD PARTIES, then ELI agrees to provide
to RMS, unless not possible due to ELI's preexisting commitments to THIRD
PARTIES relating to said Discoveries, a reasonable opportunity to negotiate a
license to use said Discoveries in PCR-based DIAGNOSTIC PRODUCTS and services.
Such Discoveries include, but are not limited to, improvements of the PCR
process or in the performance of LICENSED SERVICES, modifications to or new
methods of performing the LICENSED SERVICES, including the automation of the PCR
process or of the LICENSED SERVICES.

            6.2 Any agreement reached between The Parties as a result of ELI's
notification to RMS of a Discovery pursuant to Section 6.1 hereto shall be upon
terms and conditions negotiated in good faith by The Parties.

         7. DILIGENCE

         ELI shall exercise reasonable diligence in developing, testing,
validating, documenting, promoting and selling the LICENSED SERVICES. In the
course of such diligence, ELI shall take appropriate steps including, upon
reasonable written request of RMS, furnishing RMS with representative copies of
all promotional material relating to the LICENSED SERVICES.

         8. TERM AND TERMINATION

            8.1 The immunity from suit granted to ELI herein shall commence on
the EFFECTIVE DATE and terminate on the date of expiration of the last to expire
of the patents included within the PCR TECHNOLOGY, which patent contains at
least one claim covering the performance of LICENSED SERVICES.

            8.2 If in the course of performing and offering LICENSED SERVICES,
ELI fails to comply with the quality assurance provision of Article 5, ELI shall
so notify RMS immediately upon such failure and shall have thirty (30) days from
receipt of such notice to cure all defects of which it is notified. If ELI does
not cure all such defects within the designated thirty (30) days, RMS may then
in its sole discretion terminate this Agreement in its entirety, or any portion
thereof immediately. For the purposes of this Section and this Agreement, ELI's
failure to provide an accurate and correct test result when participating in an
independent proficiency testing program pursuant to Article 5, on two
consecutive evaluations, shall automatically be deemed a failure to comply with
Article 5 and shall be a material breach of this Agreement.

            8.3 Notwithstanding any other Section of this Agreement, ELI may
terminate this Agreement for any reason on thirty (30) days' written notice to
RMS.

            8.4 The decision of a Court or Administrative body finding RMS
liable or culpable due to ELI's performance of LICENSED SERVICES shall give RMS
the right to terminate this Agreement immediately upon notification to RMS of
said decision.

            8.5 The immunity from suit granted hereunder to ELI shall
automatically terminate upon (a) an adjudication of ELI as bankrupt or
insolvent, or ELI's admission in writing of its inability to pay its obligations
as they mature; or (b) an assignment by ELI for the benefit

                                      -7-
<PAGE>

of creditors; or (c) ELI's applying for or consenting to the appointment of a
receiver, trustee or similar officer for any substantial part of its property;
or such receiver, trustee or similar officer's appointment without the
application or consent of ELI, if such appointment shall continue undischarged
for a period of ninety (90) days; or (d) ELI's instituting (by petition,
application, answer, consent or otherwise) any bankruptcy, insolvency
arrangement, or similar proceeding relating to ELI under the laws of any
jurisdiction; or (e) the institution of any such proceeding (by petition,
application or otherwise) against ELI, if such proceeding shall remain
undismissed for a period of ninety (90) days or the issuance or levy of any
judgment, writ, warrant of attachment or execution or similar process against a
substantial part of the property of ELI, if such judgment, writ, or similar
process shall not be released, vacated or fully bonded within ninety (90) days
after its issue or levy; or (f) loss of ELI's federal or state licenses permits
or accreditation necessary for operation of ELI as a health care institution.

                  8.6 RMS shall have the right to terminate this Agreement by
written notice to ELI upon any change in the ownership or control of ELI or of
its assets. Termination under this Section shall be effective immediately upon
receipt by ELI of RMS's notice of termination. For such purposes, a "change in
ownership or control" shall mean that 30% or more of the voting stock of ELI
become subject to the control of a person or entity, or any related group of
persons or entities acting in concert, which person(s) or entity(ies) did not
control such proportion of voting stock as of the EFFECTIVE DATE of the
Agreement. Analogously, RMS shall have the right to terminate this Agreement
upon any transfer or sale of 30% or more of the assets of ELI to another panty.

                  8.7 BREACH. Upon any breach of or default of a material term
under this Agreement by ELI, RMS may terminate this Agreement upon thirty (30)
days' written notice to ELI. Said notice shall become effective at the end of
the thirty-day period, unless during said period ELI fully cures such breach or
default and notifies RMS of such a cure.

                  8.8 Upon termination of this Agreement as provided herein, all
immunities and rights granted to ELI hereunder shall revert to or be retained by
RMS.

                  8.9 ELI's obligations to report to RMS and to pay royalties to
RMS as to the LICENSED SERVICES performed under the Agreement prior to
termination or expiration of the Agreement shall survive such termination or
expiration.

         9. CONFIDENTIALITY-PUBLICITY

            9.1 Except as otherwise specifically provided in Section 2.5, ELI
agrees to obtain RMS's approval before distributing any written information,
such as Press Releases, to THIRD PARTIES which contains references to RMS or
this Agreement. RMS's approval shall not be unreasonably withheld or delayed
and, in any event, RMS's decision shall be rendered within three (3) weeks of
receipt of the written information. Once approved, such materials, or abstracts
of such materials, which do not materially alter the context of the material
originally approved may be reprinted during the term of the Agreement without
further approval by RMS unless RMS has notified ELI in writing of its decision
to withdraw permission for such use.

                                      -8-
<PAGE>

            9.2 Each Party agrees that any financial, legal or business
information or any technical information disclosed to it (the "Receiving Party")
by the other (the "Disclosing Party") in connection with this Agreement shall be
considered confidential and proprietary and the Receiving Party shall not
disclose same to any THIRD PARTY and shall hold it in confidence for a period of
five (5) years and will not use it other than as permitted under this Agreement
provided, however, that any information, know-how or data which is orally
disclosed to the Receiving Party shall not be considered confidential and
proprietary unless such oral disclosure is reduced to writing and given to the
Receiving Party in written form within thirty (30) days after oral disclosure
thereof. Such confidential and proprietary information shall include, without
limitation, marketing and sales information, commercialization plans and
strategies, research and development work plans, and technical information such
as patent applications, inventions, trade secrets, systems, methods, apparatus,
designs, tangible material, organisms and products and derivatives thereof.

            9.3 The above obligations of confidentiality shall not be applicable
to the extent:

            a) such information is general public knowledge or, after
               disclosure hereunder, becomes general or public knowledge
               through no fault of the Receiving Party; or

            b) such information can be shown by the Receiving Party by its
               written records to have been in its possession prior to
               receipt thereof hereunder; or

            c) such information is received by the Receiving Party from any
               THIRD PARTY for use or disclosure by the Receiving Party
               without any obligation to the Disclosing Party provided,
               however, that information received by the Receiving Party
               from any THIRD PARTY funded by the Disclosing Party (e.g.
               consultants, subcontractors, etc.) shall not be released from
               confidentiality under this exception; or

            d) the disclosure of such information is required or desirable
               to comply with or fulfill governmental requirements,
               submissions to governmental bodies, or the securing of
               regulatory approvals.

            9.4 Each Party shall, to the extent reasonably practicable,
maintain the confidentiality of the provisions of this Agreement and shall
refrain from making any public announcement or disclosure of the terms of
this Agreement without the prior consent of the other Party, except to the
extent a Party concludes in good faith that such disclosure is required under
applicable law or regulations, in which case the other Party shall be
notified in advance.

         10. COMPLIANCE

                                      -9-
<PAGE>

            In exercising any and all rights and in performing its obligations
hereunder, ELI shall comply fully with any and All applicable laws, regulations
and ordinances and shall obtain and keep in effect licenses, permits and other
governmental approvals, whether at the federal, state or local levels, necessary
or appropriate to carry on its activities hereunder. ELI further agrees to
refrain from any activities that would have an adverse effect on the business
reputation of RMS. RMS will advise ELI of any such activities and ELI will have
thirty (30) days to correct such activity.

         11. ASSIGNMENT

         This Agreement shall not be assigned or transferred by ELI (including
without limitation any purported assignment or transfer that would arise from a
sale or transfer of ELI's business) without the express written consent of RMS.
RMS may assign all or any part of its rights and obligations under this
Agreement at any time without the consent of ELI. ELI agrees to execute such
further acknowledgments or other instruments as RMS may reasonably request in
connection with such assignment.

         12. NEGATION OF WARRANTIES AND INDEMNITY

             12.1 Nothing in this Agreement shall be construed as:

                  a) a warranty or representation by RMS as to the validity or
                     scope of any patent included within PCR TECHNOLOGY;

                  b) a warranty or representation that the practice of the PCR
                     TECHNOLOGY and/or the performance of LICENSED SERVICES are
                     or will be free from infringement of patents of THIRD
                     PARTIES;

                  c) an obligation to bring or prosecute actions or suits
                     against THIRD PARTIES for infringement;

                  d) except as expressly set forth herein, conferring the right
                     to use in advertising, publicity or otherwise any
                     trademark, trade name, or names, or any contraction,
                     abbreviation, simulation or adaptation thereof, of RMS;

                  e) conferring by implication, estoppel or otherwise any
                     license, right or immunity under any patents or patent
                     applications of RMS other than those specified in PCR
                     TECHNOLOGY, regardless of whether such other patents and
                     patent applications are dominant or subordinate to those in
                     PCR TECHNOLOGY;

                  f) an obligation to furnish any know-how not provided in PCR
                     TECHNOLOGY; or

                                      -10-
<PAGE>

                  g) creating any agency, partnership, joint venture or similar
                     relationship between RMS and ELI.

         12.2 RMS MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE.

         12.3 ELI shall assume full responsibility for its use of the PCR
TECHNOLOGY and shall defend, indemnify and hold RMS harmless from and against
all liability, demands, damages, expenses (including attorneys' fees) and losses
for death, personal injury, illness, property damage or any other injury or
damage, including any damages or expenses arising in connection with state or
federal regulatory action (collectively "Damages"), resulting from the use by
ELI, including its officers, directors, agents and employees, of the PCR
TECHNOLOGY except, and to the extent that such Damages are caused by the
negligence or willful misconduct of RMS.

     13. GENERAL

         13.1 This Agreement constitutes the entire agreement between The
Parties as to the subject matter hereof, and all prior negotiations,
representations, agreements and understandings are merged into, extinguished by
and completely expressed by it. This Agreement may be modified or amended only
by a writing executed by authorized officers of each of The Parties.

         13.2 Any notice required or permitted to be given by this Agreement
shall be given by postpaid, first class, registered or certified mail, or by
courier, properly addressed to the other Party at the respective address as
shown below:

              If to RMS: Roche Molecular Systems, Inc.
                         1145 Atlantic Avenue
                         Alameda, California 94501
                         Attn: General Counsel

              If to ELI: Exact Laboratories, Inc.
                         63 Great Road
                         Maynard, Massachusetts 01754
                         Attn: President

         Either Party may change its address by providing notice to the other
Party. Unless otherwise specified herein, any notice given in accordance with
the foregoing shall be deemed given within four (4) full business days after the
day of mailing, or one full day after the date of delivery to the courier, as
the case will be.

                  13.3 GOVERNING LAW AND VENUE. This Agreement and its effect
are subject to and shall be construed and enforced in accordance with the law of
the State of California, U.S.A., except as to any issue which by the law of
California depends upon the validity, scope or

                                      -11-
<PAGE>

enforceability of any patent within the PCR TECHNOLOGY, which issue shall be
determined in accordance with the applicable patent laws of the United States.
The Parties agree that the exclusive jurisdiction and venue for any dispute or
controversy arising from this Agreement shall be in the United States District
Court for the Northern District of California if federal jurisdiction exists,
and if no federal jurisdiction exists, then in the Superior Court of the County
of Alameda, California.

               13.4 ARBITRATION. Notwithstanding the provisions of Section
13.3 above, any dispute concerning solely the determination of facts such as,
but not limited to, (a) the value of a COMBINATION SERVICES and a LICENSED
SERVICE pursuant to Section 1.7; (b) a determination of royalty rate payments
owed pursuant to Section 4.1; (c) compliance with quality assurance pursuant to
Article 5; or (d) good faith compliance with Section 6.1; and which dispute does
not involve a question of law, shall be settled by final and binding arbitration
at a mutually convenient location in the State of California pursuant to the
commercial arbitration rules of the American Arbitration Association, in
accordance with the following procedural process:

                    i)   The arbitration tribunal shall consist of three
                         arbitrators. In the request for arbitration and the
                         answer thereto, each Party shall nominate one
                         arbitrator and the two arbitrators so named will then
                         jointly appoint the third arbitrator as chairman of the
                         arbitration tribunal.

                    ii)  The decision of the arbitration tribunal shall be final
                         and judgment upon such decision may be entered in any
                         competent court for juridical acceptance of such an
                         award and order of enforcement. Each Party hereby
                         submits itself to the jurisdiction of the courts of the
                         place of arbitration, but only for the entry of
                         judgment with respect to the decision of the
                         arbitrators hereunder.

               13.5 Nothing in this Agreement shall be construed so as to
require the commission of any act contrary to law, and wherever there is any
conflict between any provision of this Agreement or concerning the legal right
of The Parties to enter into this contract and any statute, law, ordinance or
treaty, the latter shall prevail, but in such event the affected provisions of
the Agreement shall be curtailed and limited only to the extent necessary to
bring it within the applicable legal requirements.

               13.6 If any provision of this Agreement is held to be
unenforceable for any reason, it shall be adjusted rather than voided, if
possible, in order to achieve the intent of RMS's to the extent possible. In any
event, all other provisions of this Agreement shall be deemed valid and
enforceable to the full extent possible.

         IN WITNESS WHEREOF, The Parties hereto have set their hands and seals
and duly executed this Agreement on the date(s) indicated below, to be effective
on Effective Date as defined herein.

                                      -12-
<PAGE>

ROCHE MOLECULAR SYSTEMS, INC.               EXACT LABORATORIES, INC.

By: /s/ Thomas White                        By: /s/ Donna K. Hazard
    ------------------------------              --------------------------
    Thomas White, Ph.D                          Donna K. Hazard
    Title: Vice President, R&D                  Title: Vice President, Business
                                                Development

Date: May 6, 1999                               Date: June 3, 1999
      ----------------------------                    -------------------------

                                      -13-
<PAGE>

ATTACHMENT I

                              COMBINATION SERVICES

                                          PERCENT OF NET SERVICE
                                          REVENUES FOR COMBINATION
                                          SERVICES WHICH IS
                                          ATTRIBUTABLE TO LICENSED
LICENSED SERVICES                         SERVICES

                               [TO BE DETERMINED]
<PAGE>

ATTACHMENT II

                                              SUMMARY ROYALTY REPORT
                                         for the Period _______ to _______

Licensee:  Exact Laboratories, Inc.     Field of Use: In Vitro Human Diagnostic
Effective Date:                         Services
                                        Royalty Rate: [CONFIDENTIAL TREATMENT
                                                       REQUESTED]/*/%

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
          LICENSED SERVICE                AMOUNT           NUMBER OF         COMPILATION       DEDUCTIONS        COMBINATION
                                        BILLED PER       LIC. SERVICE            OF             ALLOWED*          SERVICE %
                                       LIC. SERVICE        PERFORMED          BILLINGS                           (FROM ATT.I)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>               <C>                 <C>               <C>               <C>
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------

                                                                                                              Royalty Payment Due
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------
  NET SERVICE        EARNED
    REVENUE         ROYALTY

-------------------------------
<S>                 <C>
-------------------------------

-------------------------------

-------------------------------

-------------------------------

-------------------------------

-------------------------------

-------------------------------
</TABLE>

*   PLEASE ATTACH, TO THIS FORM, DOCUMENTATION OR SUPPLEMENTAL DATA FOR
    "DEDUCTIONS ALLOWED".
**  COMBINATION SERVICES %'S MUST BE PREVIOUSLY AGREED UPON. TO CONFIRM THAT A
    COMBINATION SERVICES % HAS BEEN ESTABLISHED OR TO PROPOSE THIS STATUS,
    PLEASE CONTACT RMS LICENSING DEPT. @(510)814-2984.

    CHECK HERE IF THERE WERE NO LICENSED SERVICES PERFORMED FOR THIS REPORT
    PERIOD: _____

I hereby certify the information set forth above is correct and complete with
respect to the amounts due under the applicable license agreement.

By:_____________________________   Title:______________ Date:__________________
       (authorized signature)

Name (please print):_________________________________________

-------------------------------------------------------------------------------
MAIL REPORT WITH ANY ROYALTY PAYMENT DUE TO: ROCHE MOLECULAR SYSTEMS, INC., P.O.
BOX 18139, NEWARK, NEW JERSEY 07191

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

<PAGE>

                RIDER CONCERNING SUPPLEMENTAL PATENT RIGHTS TO
                       PCR DIAGNOSTIC SERVICES AGREEMENT

The purpose of this rider is to set forth the agreement of Exact Laboratories,
Inc. ("ELI") and Roche Molecular Systems, Inc. ("RMS") concerning the
supplemental rights to additional patents relating to PCR TECHNOLOGY which RMS
offers and The Parties agree to add to the rights granted to ELI by the
Agreement between The Parties, executed on even date herewith (the "PCR
Diagnostic Services Agreement").

1.       It is understood by The Parties that RMS may, from time to time, come
         into possession or control of additional patents or claims of patents
         relating to PCR TECHNOLOGY rights to which RMS may decide to offer to
         add to the PCR Diagnostic Services Agreement and which ELI may desire
         to accept. Accordingly, appended hereto as APPENDIX A is a list of such
         additional patents or claims of patents as RMS is currently offering to
         which ELI, by its authorized representative, has indicated its
         acceptance thereof in accordance with the rights of use and all other
         pertinent obligations, restrictions and limitations as set forth in the
         PCR Diagnostic Services Agreement.

2.       APPENDIX A may be amended by mutual agreement of The Parties in writing
         so as to add additional patent rights being offered by RMS.
         Accordingly, a new APPENDIX A signed and dated by both parties shall
         supersede any prior APPENDIX A and shall become a part of this rider.

3.       It is expressly understood and agreed by The Parties that the grant of
         additional patent rights herein does not in any way otherwise modify
         the PCR Diagnostic Services Agreement and that all provisions of that
         Agreement shall remain in full force and effect as originally set forth
         therein. The term of the PCR Diagnostic Services Agreement shall
         control the enjoyment of rights hereunder and is not extended by the
         rights granted hereby nor shall there be any additional royalty
         obligation to RMS beyond that set forth in said Agreement.

4.       In consideration of the further rights being granted it hereunder, ELI
         agrees to remain in good faith compliance with the applicable terms of
         the PCR Diagnostic Services Agreement, including reporting and payment
         of royalties and the limitation on use of PCR TECHNOLOGY strictly for
         the performance of LICENSED SERVICES and not to make products.

5.       In the event that ELI's obligation to pay royalties under the PCR
         Diagnostic Services Agreement for its rights to use the PCR TECHNOLOGY
         shall cease for any reason, whether by termination, expiry,
         invalidation or otherwise, then The Parties agree that this rider shall
         become null and void and the rights granted hereunder terminated
         without notice and The Parties shall be free to negotiate a new
         agreement with respect to the patent rights listed on APPENDIX A.

<PAGE>

                                              Accepted and Agreed
Roche Molecular Systems, Inc.                 Exact Laboratories, Inc.

By: /s/ Thomas White                          By: /s/ Donna K. Hazard
    ------------------------------                -----------------------------
        Thomas White                                  Donna Hazard
Title:  Vice President, R&D                   Title:  Vice President, Business
                                                      Development
Date: May 6, 1999                             Date: June 3, 1999
      ----------------------------                  ---------------------------
<PAGE>

APPENDIX A TO RIDER

ADDITIONAL PATENTS

U.S. Patent Number 5,008,182

U.S. Patent Number 5,176,995

U.S. Patent Number 5,219,727

U.S. Patent Number 5,110,920

ROCHE MOLECULAR SYSTEMS, INC.                    EXACT LABORATORIES, INC.

By: /s/ Thomas White                             By: /s/ Donna K. Hazard
        -------------------------                    --------------------------
           Thomas White, Ph.D                            Donna Hazard
Title:     Vice President, R&D                   Title: Vice President, Business
                                                        Development
Date: May 6, 1999                                Date: June 3, 1999
      ---------------------------                      ------------------------

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