Document:

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                                                                   EXHIBIT 10.67

                                       *** Text Omitted and Filed Separately
                                       Confidential Treatment Requested Under
                                       17 C.F.R. Sections 200.80(b)(4),
                                       200.83 and 240.24b-2

                                  CONFIDENTIAL

                         PURCHASE AND LICENSE AGREEMENT

This PURCHASE AND LICENSE AGREEMENT (the "Agreement") effective as of the last
date of execution below (the "Effective Date") is made by and between Specialty
Laboratories (hereinafter referred to as "SPECIALTY"), a California corporation
having its principal place of business at 2211 Michigan Avenue, Santa Monica,
California 90404 and Sequenom, Inc., a Delaware corporation having its principal
place of business at 11555 Sorrento Valley Road, San Diego, California 92121
(hereinafter referred to as "SEQUENOM").

                                    RECITALS

WHEREAS, SEQUENOM has expertise in the development and utilization of mass
spectrometry for biopolymer analysis, and expertise in biopolymer assay design
(MassARRAY(TM)Assays), and more specifically, has developed SEQUENOM's
proprietary MassARRAY(TM) technology for high-throughput DNA analysis
(hereinafter "MassARRAY");

WHEREAS, SPECIALTY desires to purchase certain MassARRAY Products (as
hereinafter defined) from SEQUENOM to be used for SPECIALTY's Internal Research
Purposes (as hereinafter defined), and Commercial Diagnostics Services (as
hereinafter defined) and also desires that SEQUENOM design MassARRAY Assays (as
hereinafter defined) for SPECIALTY, for these Purposes and Services;

WHEREAS, SEQUENOM is willing to supply MassARRAY Products and to design
MassARRAY Assays for SPECIALTY in accordance with the terms and conditions set
forth in this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants and promises contained
herein, SPECIALTY and SEQUENOM (each a "party" and collectively the "parties")
agree as follows:

                            ARTICLE 1.  DEFINITIONS

1.1  "Affiliate" shall mean with respect to either party, a person or entity,
     including without limiting the generality of the foregoing, organizations,
     corporations, partnerships and joint ventures, that directly or indirectly
     through one or more intermediaries, controls, is controlled by or is under
     common control with such person or entity. "Control" (and, with correlative
     meanings, the term "controlled by" and "under common control with") means
     the possession of the power to direct or cause the direction of the
     management and policies of such person or entity, whether through the
     ownership of voting stock, by contract or otherwise. In the case of a
     corporation, "control" shall mean, among other things, the direct or
     indirect ownership of fifty percent (50%) or more of its outstanding voting
     stock.

1.2  "Commercial Diagnostics Services" shall mean developing, validating and
     performing in-house genotyping services in conjunction with a clinical
     diagnostic test to detect known disease mutations or known prognostic
     polymorphisms for specialty customers.
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1.3  "Element" shall mean the SpectroCHIP(TM)technology, and the Reaction
     Components B, as set forth in Appendix B, required for the MassARRAY System
     to produce a mass spectrum from the reaction products located at a single
     defined area (a.k.a. "Position") located on the SpectroCHIP, **************
     ***************************************************************************
     **************************************************************************.
     By way of example, for the 96-D SpectroCHIP, each SpectroCHIP contains
     ninety six (96) Positions, so that for the MassARRAY System processing a
     SpectroCHIP that has a biopolymer sample *******************************,
     ninety six (96) Elements are used and consumed under this definition.

1.4  "Exclusive Rights" means rights to the exclusion of SEQUENOM.

1.5  "Internal Research Purposes" shall mean purposes and activities within
     SPECIALTY that are limited to research and development activities involving
     discovery, testing, confirming or validating SNP Associations. Internal
     Research Purposes does not mean and is not meant to include activities
     performed under grant money, funding, and non-funding arrangements with
     third party companies, enterprises, or institutions (for example, but not
     limited to pharmaceutical research or manufacturing organizations) under
     which results, products, or information from such activities are to be
     provided to the third party.

1.6  "MassARRAY Assay" or "Assay" shall mean an assay for the purpose of
     genotyping a particular Proprietary SNP or Non-proprietary SNP or a group
     of more than one Proprietary or Non-Proprietary SNPs, and that may be used
     with MassARRAY Products for performing MassEXTEND(TM)Methods and Processes.

1.7  "MassARRAY Products" shall mean the MassARRAY System (as described in
     Appendix A hereto), the MassARRAY Kit (as described in Appendix B hereto),
     and the additional MassARRAY Consumables (as described in Appendix C
     hereto).

1.8  "MassEXTEND(TM) Methods and Processes" shall mean SEQUENOM's proprietary
     MassEXTEND(TM) reactions claimed under Patent Rights including United
     States Patent Application Serial No. *********, related applications, and
     foreign equivalents thereof.

1.9  "Net Revenue" means the amount invoiced by SPECIALTY to its customers for a
     SPECIALTY Product or Service (i) less cash discounts and/or quantity
     discounts allowed, (ii) less sales and use taxes, duties or other
     government tariffs and other similar taxes incurred and government mandated
     rebates, (iii) less accruals for estimated contract rebates, bid rebates,
     Medicaid rebates and any other similar rebates as SPECIALTY may be required
     to pay from time to time, and (iv) in the event that SPECIALTY must make
     royalty payments to third parties under licenses for any patents that are
     necessary (in the reasonable judgment of SPECIALTY) to develop, make, have
     made, use, sell, have sold or import a SPECIALTY Product or Service (a
     "Third Party Royalty"), then less such Third Party Royalty, provided that
     in no event shall such reduction for Third Party Royalties be collectively,
     in the aggregate, more than ***** of the amount invoiced by

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                                 CONFIDENTIAL

      SPECIALTY for such SPECIALTY Product or Service. All of the foregoing
      shall be determined in accordance with standard accounting methods.

1.10  "Non-proprietary SNP" shall mean a SNP that is not claimed under Patent
      Rights of SPECIALTY and that is not Confidential Information of SPECIALTY.

1.11  "Patent Rights" shall mean ownership of or license rights to (i) any
      United States, or foreign patent application, (ii) any issued United
      States or foreign patent and (iii) any continuation, continuation-in-part,
      divisional, reissue, re-examination, renewal, substitution, addition,
      extension, supplementary protection certificate or foreign counterpart
      thereof of any of the foregoing.

1.12  "Proprietary SNP" shall mean a SNP that is claimed under Patent Rights of
      SPECIALTY or that is Confidential Information of SPECIALTY.

1.13  "SEQUENOM Know-How" shall mean any and all proprietary data, information,
      know-how, inventions, trade secrets, copyrights, regulatory submissions or
      other intellectual property of any kind, other than Patent Rights, owned
      or controlled by SEQUENOM as of the Effective Date or during the term of
      this Agreement.

1.14  "SNP" shall mean a single nucleotide polymorphism.

1.15  "SNP Association" shall mean an association between one or more SNPs and a
      phenotype, including but not limited to the presence of, or susceptibility
      for, any disease or condition in humans, or response to a drug.

1.16  "SPECIALTY Product or Service" means a tangible or intangible item,
      information, services, or any combination thereof that SPECIALTY sells,
      offers for sale, or otherwise provides to a customer that incorporates,
      utilizes, or is generated from the use of, a MassARRAY Assay.

1.17  "Territory" means the United States.

                 ARTICLE 2.  PURCHASING, ORDERS, AND REQUESTS
                           FOR ASSAY DESIGN SERVICES

2.1   SPECIALTY agrees to purchase MassARRAY Products as identified in
      Appendices A and B, and optionally those provided in Appendix C, and
      SEQUENOM agrees to sell and deliver MassARRAY Products to SPECIALTY . Such
      purchase, sale, and delivery shall be under the terms of this Agreement.

2.2   This Agreement contains the exclusive terms and conditions which apply to
      all purchases of MassARRAY Products, notwithstanding any acknowledgment or
      other business forms ("forms" meaning and including SPECIALTY purchase
      orders) transmitted by SEQUENOM or SPECIALTY. All orders for MassARRAY
      Products must reference this

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                                 CONFIDENTIAL

      Agreement and all SEQUENOM and SPECIALTY acknowledgments and transmittals
      will reference this Agreement and the applicable SPECIALTY purchase order.

2.3   This Agreement does not constitute a purchase order. Purchases hereunder
      shall be made utilizing SPECIALTY's written purchase orders issued by
      SPECIALTY.

2.4   All orders for MassARRAY Products must specify delivery within ninety (90)
      days from the order date. All orders are subject to acceptance by
      SEQUENOM, such acceptance not to be unreasonably withheld, and to product
      availability. All orders accepted by SEQUENOM are firm and non-cancelable
      and SEQUENOM shall use its best efforts to fill such orders within ninety
      (90) days from the order date.

2.5   SPECIALTY will use its best efforts to supply SEQUENOM with a forecast of
      its intended purchases on at least a quarterly basis, and SEQUENOM shall
      use its best efforts to meet such forecast.

2.6   When requested by SPECIALTY, SEQUENOM agrees to design MassARRAY Assays to
      be used by SPECIALTY subject to the pricing and other limitations set
      forth in Articles 4 and 5 below. SPECIALTY shall request a group of
      MassARRAY Assays at a time, with the number of Assays in such group to be
      mutually agreed upon by the parties, and SPECIALTY shall provide SEQUENOM
      with the identity of, known alleles of, and local sequence information
      surrounding the SNPs to be genotyped with the MassARRAY Assays. A
      MassARRAY Assay includes the nucleotide sequence information of the
      amplification and extension primers, as well as allele-specific mass
      values, that are necessary for performing the Assay. Physical samples of
      primers in aliquot form and/or validation of a MassARRAY Assay will only
      be provided by SEQUENOM at SPECIALTY's additional expense and subject to
      the agreement of and at a price to be determined by the parties. SPECIALTY
      will be responsible for and bear all of the costs associated with
      purchasing and performing quality control experiments on all MassARRAY
      Assays that it uses or plans to use, and will bear the complete cost and
      responsibility and provide all resources and documentation necessary for
      compliance with CLIA guidelines and requirements.

2.7   In consideration for the pricing, fees, royalties, and license rights set
      forth in Articles 4 and 5, SPECIALTY has agreed, to use its best
      commercial efforts to utilize MassARRAY Assays for all of the clinical
      diagnostic areas of interest identified in Appendix D.

                ARTICLE 3.  DELIVERY, SHIPMENT AND RISK OF LOSS

3.1   Delivery of MassARRAY Products is subject to acceptance of the order by
      SEQUENOM, such acceptance not to be unreasonably withheld and to product
      availability, and to SEQUENOM's lead times which may change from time to
      time.

3.2   SEQUENOM will ship according to SEQUENOM's standard commercial practice.
      All shipments by SEQUENOM shall be FOB SEQUENOM's point of manufacture in
      the United States. Title to and risk of loss for the MassARRAY Products
      shall pass to

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      SPECIALTY upon delivery by SEQUENOM to a carrier designated by SPECIALTY
      or selected by SEQUENOM if SPECIALTY does not designate a carrier. Special
      packing or shipping instructions requested by SPECIALTY must be agreed to
      by SEQUENOM in writing, and any charges will be billed to SPECIALTY.

                      ARTICLE 4.  PRICE AND PAYMENT TERMS

4.1   MassARRAY System Price. SPECIALTY agrees to purchase one MassARRAY System
      ----------------------
      (as set forth in Appendix A) for which SPECIALTY has agreed to pay
      *********** *******************************. Payment will be made to
      SEQUENOM within thirty (30) days of execution of this Agreement. Payment
      must be received by SEQUENOM prior to delivery and installation of the
      MassARRAY System. Delivery and installation of the MassArray system to
      occur within ninety (90) days of execution of this agreement.

4.2   Upgrade.  SEQUENOM agrees to upgrade, ************to SPECIALTY the
      -------
      MassARRAY System purchased by SPECIALTY pursuant to section 4.1 to provide
      a capacity for simultaneously processing three hundred eighty four (384)
      samples after such upgrade becomes commercially available and agrees that
      such upgrade shall include replacement of components of the MassARRAY
      System installed at SPECIALTY if necessary to achieve such capacity.
      Further, if a technology is made commercially available by SEQUENOM for
      upgrading or replacing its present nanoliter transfer device
      configuration, SEQUENOM will provide SPECIALTY will ****************credit
      toward the list purchase price of an upgraded or replacement nanoliter
      transfer device in exchange for return of the present transfer device
      configuration. In addition, subject to mutual agreement of the parties,
      SPECIALTY will be considered and may be included as a beta test site for
      the introduction of new products by SEQUENOM.

4.3   MassARRAY Kit Price.  The price of a MassARRAY Kit is *******************
      -------------------
      *****************. This price for the MassARRAY Kit is based upon a fee of
      *** *********************** per Element. This price is for the MassARRAY
      Kit set forth in Appendix B, each Kit including a ten (10) chip 384-D
      SpectroCHIP(TM) pack, wherein each SpectroCHIP(TM) chip contains three-
      hundred eighty four (384) Positions. Until the 384-D SpectroCHIP becomes
      available, SEQUENOM will sell SPECIALTY MassARRAY Kits that include a ten
      (10) chip 96-D SpectroCHIP(TM) pack, wherein each SpectroCHIP(TM) chip
      contains ninety six (96) Positions, for a price of ***************
      **************************. This price for MassARRAY Kits having the ten
      (10) chip 96-D SpectroCHIP(TM) pack is based upon the same fee of
      ****************** ******* per Element. Should the parties agree to extend
      this Agreement beyond its two (2) year duration, SEQUENOM reserves the
      right to adjust the price for its MassARRAY Kits at its option, but not
      above fair market price. Payments for the MassARRAY Kits will be due
      thirty (30) days from the date of shipment. Upon shipment of MassARRAY
      Kits, SEQUENOM will submit an invoice reflecting an invoice number, date,
      remit to address, purchase order number, quantity ordered, unit price, and
      any applicable tax and shipping and handling charges. The configuration of
      the MassARRAY Kit may change and/or be improved from time to time and may
      or may not be accompanied by a change

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      in purchase price, although the fees per Element agreed to will not
      increase during the two (2) year duration of this Agreement .

4.4   Additional MassARRAY Consumables.  Current prices for additional MassARRAY
      --------------------------------
      Consumables used in performing SEQUENOM's proprietary MassEXTEND Methods
      and Processes are shown in Appendix C and may also be purchased by
      SPECIALTY at its option, subject to the same terms and conditions of this
      Agreement that apply to MassARRAY Kits. These additional MassARRAY
      Consumables include reagents required for DNA extraction, preparation and
      amplification; enzyme and nucleotide mixes required for the MassEXTEND
      reaction; and positive controls.

4.5   Sales Tax.  For all purchases, SEQUENOM will add to the purchase price,
      ---------
      applicable sales tax for all shipments to California and Massachusetts
      destinations.

4.6   SEQUENOM MassARRAY Assay Design Services. SEQUENOM will design and develop
      ----------------------------------------
      MassARRAY Assays requested by SPECIALTY, subject to the provisions below,
      for an Assay Fee according to the following schedule:

                           in silico MassARRAY Assays
                           --------------------------

     4.6.1  MassARRAY Assays for Non-Proprietary SNPs will be provided in
            silico, in either monoplex or biplex formats, without validation, by
            SEQUENOM to SPECIALTY, **************.

     4.6.2  MassARRAY Assays for Proprietary SNPs that SPECIALTY will maintain
            Exclusive Rights to, will be provided in silico, in either monoplex
            or biplex formats, without validation, by SEQUENOM to SPECIALTY for
            an Assay Fee of ************** per Assay. Should SPECIALTY request
            an in silico MassARRAY Assay for a Proprietary SNP and should
            SPECIALTY also be willing to permit SEQUENOM to sell or otherwise
            provide the same MassARRAY Assay to other SEQUENOM customers,
            SEQUENOM will design (in either a monoplex or biplex format) the
            MassARRAY Assay, without validation, and provide the Assay to
            SPECIALTY, *********.

                           Validated MassARRAY Assays
                           --------------------------

     4.6.3  For Non-Proprietary SNPs, SEQUENOM will design (in either a monoplex
            or biplex format) and validate MassARRAY Assays and provide the
            Assays to SPECIALTY for an Assay Fee of ********************* per
            Assay.

     4.6.4  For Proprietary SNPs that SPECIALTY will maintain Exclusive Rights
            to, SEQUENOM will design (in either a monoplex or biplex format) and
            validate MassARRAY Assays and provide the Assays to SPECIALTY for an
            Assay Fee of ************************* per Assay. Should SPECIALTY
            request a MassARRAY Assay for a Proprietary SNP and should SPECIALTY
            also be willing to permit SEQUENOM to sell or otherwise provide the
            same

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            MassARRAY Assay to other SEQUENOM customers, SEQUENOM will design
            (in either a monoplex or biplex format) and validate the MassARRAY
            Assay and provide the Assay to SPECIALTY for an Assay Fee of
            **************** per Assay.

     4.6.5  For any and all Proprietary SNPs that SPECIALTY will maintain
            Exclusive Rights to, SPECIALTY will specifically identify such
            Proprietary SNPs to SEQUENOM in writing prior to the performance of
            any Assay Design Services by SEQUENOM.

     4.6.6  For any Assays (in silico or validated) requested by SPECIALTY to be
            provided in a format other than in a monoplex or biplex format, the
            Assay Fee will be determined by Sequenom on a case by case basis.
            Further, while SEQUENOM will use commercially reasonable efforts to
            provide MassARRAY Assays requested by SPECIALTY, depending upon the
            Assay complexity, as well as operational, administrative, technical,
            and biological limitations that may exist, SEQUENOM reserves the
            right to refuse Assay Design Services under appropriate
            circumstances upon notice to SPECIALTY of the same.

                       ARTICLE 5.  LICENSE AND ROYALTIES

5.1  With the purchase of MassARRAY Kits, SEQUENOM grants SPECIALTY a non-
     exclusive, limited right to use, without the right to sublicense or
     otherwise permit third parties to use, the MassARRAY Kits, in conjunction
     with the MassARRAY System, for the defined Internal Research Purposes,
     within the Territory. The MassARRAY Kits provided under this Agreement may
     be used in performing SEQUENOM's proprietary MassEXTEND(TM) Methods and
     Processes claimed under Patent Rights including United States Patent
     Application Serial No. *********, related applications, and foreign
     equivalent Patent Rights. The pricing of the MassARRAY Kit set forth in
     section 4.3 includes a prepaid royalty in consideration for which SEQUENOM
     grants SPECIALTY a non-exclusive right, without transfer or sublicense
     rights, under United States Patent Application Serial No. *********, and
     related applications, and SEQUENOM Know-How, to use the MassARRAY Kits to
     perform SEQUENOM's proprietary MassEXTEND(TM) Methods and Processes, such
     right granted being limited to the number of Elements provided per
     MassARRAY Kit purchased, and such right granted being limited to use by
     SPECIALTY for the defined Internal Research Purposes, in the Territory.

5.2  MassARRAY Assays

     5.2.1  MassARRAY Assays Designed and Developed by SEQUENOM
     -----  ---------------------------------------------------

            For MassARRAY Assays designed and developed solely by SEQUENOM for
            either Non-Proprietary SNPs or for Proprietary SNPs that SPECIALTY
            will not maintain Exclusive Rights to, SEQUENOM hereby grants
            SPECIALTY a ********* license, without sublicense or transfer
            rights, to use MassARRAY

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            Assays designed and developed by SEQUENOM in conjunction with the
            MassARRAY Products and MassEXTEND Methods and Processes, for
            SPECIALTY's Commercial Diagnostics Services, in the Territory, in
            consideration for a royalty payment to SEQUENOM of ************** of
            Net Revenues associated with such Commercial Diagnostics Services.

            For MassARRAY Assays designed and developed by SEQUENOM (for
            Proprietary SNPs that SPECIALTY will maintain Exclusive Rights to) a
            separate license agreement for Commercial Diagnostics Services will
            be negotiated in good faith based upon factors including MassARRAY
            Assay and MassARRAY Product volume commitments by SPECIALTY and a
            time limited period of exclusivity, in exchange for a royalty
            payment to SEQUENOM, all to be negotiated hereafter.

     5.2.2  MassARRAY Assays Designed and Developed by SPECIALTY
     -----  ----------------------------------------------------

            For MassARRAY Assays designed and developed solely by SPECIALTY,
            SEQUENOM hereby grants SPECIALTY a ********* license, without
            sublicense or transfer rights, to use MassARRAY Products and
            MassEXTEND Methods and Processes in conjunction with the MassARRAY
            Assays designed and developed by SPECIALTY for SPECIALTY's
            Commercial Diagnostics Services, in the Territory, in consideration
            for a royalty payment to SEQUENOM of ************** of Net Revenues
            associated with such Commercial Diagnostics Services.

     5.2.3  MassARRAY Assays Jointly Designed and Developed by SEQUENOM and
     -----  ---------------------------------------------------------------
            SPECIALTY
            ---------

            For MassARRAY Assays jointly designed and developed by SEQUENOM and
            SPECIALTY, SEQUENOM hereby grants SPECIALTY ********* license,
            ************************ from Assay validation, without sublicense
            or transfer rights, to use MassARRAY Assays jointly designed and
            developed by SEQUENOM and SPECIALTY in conjunction with the
            MassARRAY Products and MassEXTEND Methods and Processes, for
            SPECIALTY's Commercial Diagnostics Services, in the Territory, in
            consideration for a royalty payment to SEQUENOM of ************* of
            Net Revenues associated with such Commercial Diagnostics Services.
            ************************* *********,SPECIALTY is granted *********
            license without sublicense or transfer rights, to use MassARRAY
            Assays jointly designed and developed by SEQUENOM and SPECIALTY in
            conjunction with the MassARRAY Products and MassEXTEND Methods and
            Processes, for SPECIALTY's Commercial Diagnostics Services, in the
            Territory, in consideration for a royalty payment to SEQUENOM of
            **************** of Net Revenues associated with such Commercial
            Diagnostics Services.

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     5.2.4  Unaffected Rights of SEQUENOM
     ------------------------------------

            Further, nothing in this Agreement is meant to prevent SEQUENOM or
            other SEQUENOM customers from developing, using, and selling new
            MassARRAY Assays based on independently discovered SNPs (or other
            form of marker) associated with one or more of the areas identified
            in Appendix D provided that such development, use, or sale is not
            based upon any Confidential Information of SPECIALTY.

5.3  The purchase price and royalty terms agreed to under Article 4 and this
     Article 5 of this Agreement, are based upon the parties' mutual
     understanding of the restrictions and limited rights placed on SPECIALTY's
     use of MassARRAY Products and MassARRAY Assays provided for under this
     Article. Any other uses of the MassARRAY Products and Assays, and any terms
     and conditions related thereto, must be agreed to, in writing, by the
     parties. With the exception of the rights granted under this Article 5, no
     other right or license is granted to SPECIALTY either directly, indirectly,
     by implication, estoppel, or otherwise by SEQUENOM under this limited
     grant.

5.4  Except as otherwise expressly provided in this Agreement, under no
     circumstances shall a party hereto, as a result of this Agreement, obtain
     any ownership interest in or other right to any technology, know-how,
     Patent Rights, data, products, or biological materials of the other party,
     including items owned, controlled or developed by the other party, or
     transferred by the other party to said party, at any time pursuant to this
     Agreement. Any compounds, technology or know-how derived, developed or
     acquired by either party independent of this Agreement or Confidential
     Information derived from this Agreement shall be the property of such
     party.

5.5  Both parties recognize that an opportunity exists for co-branding and co-
     marketing of MassARRAY Assays and MassARRAY Assay design services. The
     parties agree to cooperate when it is deemed appropriate in the business
     judgment of both parties, on a case by case basis, to employ co-branding
     and/or joint marketing programs in order to maximize investment return for
     each party.

                  ARTICLE 6.  ROYALTY PAYMENTS AND ACCOUNTING

6.1  Royalty Payments/Reports.  Payments of royalties to SEQUENOM under Article
     ------------------------
     5.2 based upon Net Revenues will be made on a monthly basis and within
     thirty (30) days of the close of each calendar month. With each monthly
     payment, SPECIALTY shall provide SEQUENOM with a written report setting
     forth sufficient information to verify Net Revenues received by SPECIALTY.

6.2  Audits. SPECIALTY shall keep true and accurate books of account and records
     ------
     in sufficient detail to properly determine the amounts payable to SEQUENOM
     under this Agreement. SPECIALTY shall keep such books and records for at
     least three (3) years following the termination or expiration of this
     Agreement, and shall make available such books and records for inspection
     during such three (3) year period by a certified public

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     accountant retained by SEQUENOM for such purpose, solely for the purpose of
     verifying the amount of Net Revenues hereunder. Such inspections may be
     made no more than once in any six (6) month period, at reasonable times
     mutually agreed upon by the parties after at least five (5) days written
     notice to SPECIALTY. The certified public accountant shall, execute a
     reasonable confidentiality agreement prior to commencing any such
     inspection.

6.3  Costs.  Inspections conducted under Section 6.2 shall be shall be at the
     -----
     expense of SEQUENOM, unless an underpayment of at least ************* of
     the amount due for the audited period is established in the course of any
     such inspection, whereupon all reasonable costs relating to such inspection
     shall be paid by SPECIALTY.

                       ARTICLE 7.  TERM AND TERMINATION

7.1  The term of this Agreement will be from the Effective Date and will
     continue for a period of two (2) years, unless terminated by a party or the
     parties under one of the provisions of this Article 7. Upon written notice
     provided at least ninety (90) days before the end of the initial term of
     this Agreement, SPECIALTY may elect at its option to renew this Agreement
     for an additional two (2) year term.

7.2  This Agreement shall terminate upon written notice by one party to the
     other party in the event the other party shall become insolvent, asks its
     creditors for a moratorium, files a bankruptcy petition, or suffers
     appointment of a temporary or permanent receiver, trustee, or custodian,
     for all or a substantial portion of its assets.

7.3  Either party may terminate this Agreement for default by the other party in
     performing any of its material obligations under this Agreement by
     notifying the other party in writing of such default and allowing the other
     party thirty (30) days within which to cure such default, unless the
     default is the failure to pay money, in which case the defaulting party
     shall have only ten (10) business days to cure such default after receiving
     written notice of non-payment. If such default is not cured within thirty
     (30) days from receipt of such notice of default (or ten (10) business days
     in the case of non-payment of money owed), the non-defaulting party may
     terminate this Agreement by written notice to the defaulting party.

7.4  Effect of Expiration or Termination of Agreement.  Within thirty (30) days
     ------------------------------------------------
     after expiration or termination under this Article 7, each party shall
     return to the other party or destroy any and all Confidential Information
     provided by the other party pursuant to this Agreement according to section
     11.3. SPECIALTY shall have the right to use all MassARRAY Kits for which
     SPECIALTY has paid and are in SPECIALTY's possession at the time of
     termination, and the licenses granted SPECIALTY pursuant to sections 5.1
     and 5.2 shall continue until all such MassARRAY Kits are used. Except to
     the extent expressly provided to the contrary, the rights and obligations
     of the parties pursuant to Articles 4.1, 4.3, 4.5, 6.1, 6.2, 6.3, 11, 12
     and 14.14 shall survive the expiration or termination of this Agreement.
     Any and all rights of SEQUENOM to purchase price and royalty payments
     accrued through expiration or termination as well as obligations of the

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                                 CONFIDENTIAL

     parties under firm orders for purchase and delivery of MassARRAY Products
     at the time of such expiration or termination shall remain in effect,
     except that SEQUENOM will have no obligation to sell and deliver MassARRAY
     Products that have delivery dates more than three (3) months after the date
     of termination, and in the case of termination under sections 7.2 or 7.3,
     the terminating party has discretion in electing whether obligations under
     firm orders will remain in effect.

                    ARTICLE 8.  INSTALLATION AND ACCEPTANCE

8.1  Installation of the MassARRAY System by SEQUENOM at a location designated
     by SPECIALTY is included in the price under sections 4.1 and 4.2. SEQUENOM
     shall install the MassARRAY System in accordance with SEQUENOM's standard
     installation practice and will use commercially reasonable efforts to
     schedule and complete installation in a timely fashion. SPECIALTY and
     SEQUENOM will cooperate with each other to coordinate the installation
     effort.

8.2  Installation shall be complete, and acceptance by SPECIALTY shall occur,
     when the MassARRAY System passes SEQUENOM's standard installation and test
     procedures. In the event the MassARRAY System delivered will not pass
     SEQUENOM's standard installation and test procedures, SEQUENOM will use
     reasonable commercial efforts to make the necessary adjustments and/or to
     replace the MassARRAY System in whole or in part until the MassARRAY System
     performs as intended and passes such tests.

                             ARTICLE 9.  TRAINING

9.1  Included in the price under sections 4.1 and 4.2, SEQUENOM will train
     designated SPECIALTY employees in the installation, use, and routine
     maintenance of the MassARRAY Products in accord with SEQUENOM's standard
     training program. SPECIALTY may request from time to time, due to
     additional instrument purchases, employee changes, increased use, or
     otherwise, additional training as the need arises. SEQUENOM will provide
     additional training according to a mutually convenient schedule and at a
     price to be mutually agreed.

                   ARTICLE 10.  REPRESENTATIONS AND WARRANTY

10.1  Representations, Warranties and Covenants of SPECIALTY.  SPECIALTY
      ------------------------------------------------------
      represents and warrants to and covenants with SEQUENOM that:

          (a)  SPECIALTY is a corporation duly organized, validly existing and
               in corporate good standing under the laws of California;

          (b)  SPECIALTY has the legal right, authority and power to enter into
               this Agreement;

          (c)  SPECIALTY has taken all necessary action to authorize the
               execution, delivery and performance of this Agreement;

                                       11
<PAGE>

                                 CONFIDENTIAL

          (d)  upon the execution and delivery of this Agreement, this Agreement
               shall constitute a valid and binding obligation of SPECIALTY
               enforceable in accordance with its terms, except as
               enforceability may be limited by applicable bankruptcy,
               insolvency, reorganization, moratorium or similar laws affecting
               creditors' and contracting parties' rights generally and except
               as enforceability may be subject to general principles of equity
               (regardless of whether such enforceability is considered in a
               proceeding in equity or at law); and

          (e)  the performance of its obligations under this Agreement will not
               conflict with its charter documents or result in a breach of any
               agreements, contracts or other arrangements to which it is a
               party.

10.2  Representations, Warranties and Covenants of SEQUENOM.  SEQUENOM
      -----------------------------------------------------
      represents and warrants to and covenants with SPECIALTY that:

          (a)  SEQUENOM, Inc. is a corporation duly organized, validly existing
               and in corporate good standing under the laws of Delaware, United
               States;

          (b)  SEQUENOM has the legal right, authority and power to enter into
               this Agreement;

          (c)  SEQUENOM has taken all necessary action to authorize the
               execution, delivery and performance of this Agreement;

          (d)  upon the execution and delivery of this Agreement, this Agreement
               shall constitute a valid and binding obligation of SEQUENOM
               enforceable in accordance with its terms, except as
               enforceability may be limited by applicable bankruptcy,
               insolvency, reorganization, moratorium or similar laws affecting
               creditors' and contracting parties' rights generally and except
               as enforceability may be subject to general principles of equity
               (regardless of whether such enforceability is considered in a
               proceeding in equity or at law); and

          (e)  the performance of its obligations under this Agreement will not
               conflict with its charter documents or result in a breach of any
               agreements, contracts or other arrangements to which it is a
               party.

10.3  Limited Warranty Relating to MassARRAY Products.  SEQUENOM warrants that
      -----------------------------------------------
      the MassARRAY System will be free from defects in materials and
      workmanship and will conform to SEQUENOM's current specifications, or as
      amended in the future by mutual written agreement of the parties, and
      perform accordingly, from the time of installation and for a period of at
      least one (1) year thereafter, so long as the MassARRAY System remains
      unchanged and in the original condition supplied by SEQUENOM. SEQUENOM
      warrants that the MassARRAY Kits will be free from defects in materials
      and workmanship and will conform to SEQUENOM's specifications and perform
      accordingly, for a period of at least two (2) months from the date of
      shipment, so long as the MassARRAY Kits are stored according to
      specifications, and remain unchanged and

                                       12
<PAGE>

                                 CONFIDENTIAL

            in the original condition supplied by SEQUENOM. The foregoing
            warranty does not include periodic maintenance or calibration
            recommended for some MassARRAY Products. This warranty does not
            apply to defects resulting from improper or inadequate maintenance
            or calibration by SPECIALTY; defects resulting from hardware,
            software, interfacing, or supplies provided by parties other than
            SEQUENOM; defects resulting from unauthorized modification,
            maintenance, or repair, or improper use or operation outside of
            SEQUENOM's specifications for the MassARRAY Products or by personnel
            not authorized by SEQUENOM, and; defects resulting from abuse,
            negligence, accident, loss or damage in transit. In addition, this
            warranty does not apply to damage due to (1) environmental
            conditions at the site of installation; (2) operator failure to
            perform standard operating procedures and routine maintenance as
            prescribed in the operator manuals; (3) moving (by other than
            SEQUENOM authorized personnel) the MassARRAY System from its
            installed location; (4) exposure of the MassARRAY Products to Bio-
            Safety Level 3 or 4 (as defined by the United States Occupational
            Health and Safety Administration) agents; or (5) exposure to
            radioactivity.

            10.3.1  SEQUENOM's sole obligation and liability for any breach of
                    the limited warranty set forth herein shall be at SEQUENOM's
                    sole discretion and option: (1) to replace the MassARRAY
                    Products, in whole or in part, provided that SPECIALTY
                    notifies SEQUENOM of the defects, SEQUENOM directs SPECIALTY
                    to return the defective MassARRAY Products to SEQUENOM and
                    SPECIALTY returns the MassARRAY Products as directed, at
                    SEQUENOM's expense; or (2) to repair (and recalibrate as
                    necessitated by repair) the MassARRAY Products in whole or
                    in part. MassARRAY Products may not be returned to SEQUENOM
                    under any circumstances without SEQUENOM's prior
                    authorization. Except as provided in Article 12, SEQUENOM
                    shall not be liable, to any extent whatsoever, for any
                    damages resulting from or arising out of the use or
                    performance of the MassARRAY Products provided under this
                    Agreement, regardless of foreseeability or the form of the
                    cause of action, whether in contract, breach of warranty,
                    tort (including negligence, strict liability, or otherwise),
                    and including but not limited to damages resulting from loss
                    of data, loss of anticipated profits or revenue, or any
                    special, direct, indirect, incidental or consequential
                    damages.

            10.3.2  The limited warranty set forth herein states SEQUENOM's sole
                    and exclusive responsibility with respect to any alleged
                    breach of this limited warranty. Except as provided herein,
                    the MassARRAY Products are provided without warranty of any
                    kind or nature. SEQUENOM does not warrant, guarantee, or
                    make any representations regarding the use or the results of
                    the use, of the MassARRAY Products in terms of correctness,
                    accuracy, reliability, or otherwise. SPECIALTY assumes the
                    entire risk as to the results and performance of the
                    MassARRAY Products. The foregoing warranty is exclusive and
                    is made in lieu of and to the exclusion of any other
                    warranties, whether oral or written, express or implied,
                    direct, indirect, by estoppel or otherwise, or created by
                    the Uniform Commercial Code or the usage in the industry or
                    the course of dealings of the parties, as to any

                                       13
<PAGE>

                                 CONFIDENTIAL

                    matter whatsoever, including but not limited to those
                    concerning merchantability or fitness for a particular
                    purpose.

                          ARTICLE 11. CONFIDENTIALITY

     11.1   For the purpose of this Agreement, Confidential Information means
            all information, data, and material, labeled or otherwise designated
            or identified as confidential by SEQUENOM or by SPECIALTY or their
            Affiliates.

            11.1.1  All information relating to SEQUENOM's MassARRAY Products
                    including but not limited to, price, quantity, discount,
                    delivery schedule, improvements, standard operating
                    procedure documents, operation manuals, schematics, design
                    specifications, manufacturing and related specifications, is
                    hereby designated as SEQUENOM's Confidential Information.
                    SEQUENOM agrees that it will, in writing, clearly identify
                    as confidential, any and all additional information that it
                    provides to SPECIALTY that it considers to be the
                    Confidential Information of SEQUENOM.

            11.1.2  SPECIALTY agrees that it will, in writing, clearly identify
                    as confidential, any and all SNPs and any other information
                    that it provides to SEQUENOM and that it considers to be the
                    Confidential Information of SPECIALTY.

     11.2  Each party may use the other party's Confidential Information only
           for the purpose of performing under this Agreement. All Confidential
           Information remains the sole property of the disclosing party. Upon
           termination or expiration of this Agreement, all materials and all
           copies of all materials containing Confidential Information,
           including but not limited to papers, books, logs, correspondence and
           records, in any form, whether written, typed, electronic, videotape,
           audiotape, etc., shall be returned to the disclosing party within
           thirty (30) days of the termination or expiration of this Agreement,
           except that each party may retain a single copy of the other party's
           Confidential Information solely for the purpose of ensuring
           compliance under this Agreement.

     11.3  Except as expressly provided herein, SEQUENOM and SPECIALTY
           Affiliates, officers, employees, agents, consultants, and authorized
           representatives (a) shall hold in strict confidence all Confidential
           Information from the other party or any of its Affiliates, officers,
           employees, agents or representatives and (b) shall not distribute,
           disclose or disseminate such Confidential Information to any third
           party without the prior written approval of the other party (that is,
           the original disclosing party).

     11.4  For purposes of this section, information will not be considered to
           be Confidential Information of a party if the information:

           (i)  was lawfully in the receiving party's possession prior to
                disclosure under this Agreement and was not acquired directly or
                indirectly from the disclosing party; or

                                       14
<PAGE>

                                 CONFIDENTIAL

           (ii)   was, at the date of disclosure by the disclosing party, public
                  knowledge; or subsequently becomes public knowledge other than
                  through the failure of the receiving party to comply with its
                  obligations of confidentiality under the terms of this
                  Agreement; or

           (iii)  was or is acquired by the receiving party from any third party
                  lawfully having possession of such information and who is not
                  under an obligation of confidentiality to the disclosing
                  party; or

           (iv)   was or becomes independently known by the receiving party
                  without utilizing information provided by the disclosing party
                  and wherein such independent knowledge is supported in
                  contemporaneously written and dated documentation of the
                  receiving party; or

           (v)    is required to be disclosed, retained, or maintained by either
                  party, by applicable law or regulation or under the rules of
                  any regulatory or governmental authority, provided however
                  that each party shall immediately notify the other party in
                  writing of such required disclosure and must provide such
                  notice at least thirty (30) days prior to the date when
                  disclosure is proposed to take place, and provided that the
                  party or third party required to make disclosure shall use its
                  best efforts to secure confidential treatment of any such
                  information required to be disclosed.

     11.5  The parties hereto understand and agree that remedies at law may be
           inadequate to protect against any breach of any of the provisions of
           this Article 11 by either party or their Affiliates, employees,
           agents, officers or directors or any other person acting in concert
           with it or on its behalf. Accordingly, each party shall be entitled
           to the granting of injunctive relief by a court of competent
           jurisdiction against any action that constitutes any such breach of
           this Article 11.

     11.6  Either party may publish or present data and/or results generated
           under this Agreement, provided that, the proposed disclosure shall be
           subject to the prior review by the other party solely to determine
           (i) whether the proposed disclosure contains the Confidential
           Information of the other party, (ii) whether the information
           contained in the proposed disclosure should be the subject of a
           patent application prior to such disclosure or (iii) whether the
           disclosure would be adverse to the business interests of the other
           party. Each party shall provide the other party with the opportunity
           to review any proposed abstract, manuscript or presentation by
           delivering a copy thereof to the other party no less than thirty (30)
           days before its intended submission for publication or presentation.
           The other party shall have thirty (30) days from its receipt of any
           such abstract, manuscript or presentation in which to notify the
           party in writing of any specific objections to the disclosure. In the
           event a party objects to the disclosure, the other party agrees not
           to submit the publication or make the presentation containing the
           objected-to information until the party is given a reasonable
           additional period of time (not to exceed an additional thirty (30)
           days) to seek patent protection for any material in the disclosure
           which it believes is patentable or, in the case of Confidential
           Information, to allow the party to delete any Confidential
           Information of the other party from the proposed disclosure.

                                       15
<PAGE>

                                 CONFIDENTIAL

           Each party agrees to delete from the proposed disclosure any
           Confidential Information or information that would be adverse to the
           business interests of the other party upon request.

     11.7  The provisions of Article 11 shall survive any termination or
           expiration of this Agreement and continue in perpetuity thereafter.

                         ARTICLE 12.  INDEMNIFICATION

     12.1  In the event of an accusation, claim or lawsuit brought by a third
           party for infringement of a patent, copyright, or other proprietary
           right of a third party, based upon SPECIALTY's use of the MassARRAY
           Products or use of MassEXTEND(TM) Methods and Processes in accordance
           with the product information, notices, and instructions for use
           provided therewith, SEQUENOM shall use its reasonable efforts to
           procure for SPECIALTY the right to continue such use, or if unable to
           procure such continued use, then SEQUENOM shall use its reasonable
           efforts to provide a substitute, non-infringing product which
           provides substantially the same results. Further, SEQUENOM shall
           defend the accusation, claim or lawsuit and indemnify SPECIALTY for
           any damages which may be awarded, provided that SPECIALTY (1) provide
           prompt written notice of the accusation, claim or lawsuit to
           SEQUENOM; (2) authorize and provide SEQUENOM with complete control of
           the defense of the accusation, claim or lawsuit and any and all
           settlements, negotiations, compromises, and discussions thereof; (3)
           cooperate fully with SEQUENOM and provide SEQUENOM with such
           reasonable assistance, as SEQUENOM may request in the defense of such
           accusation, claim or lawsuit; and (4) make no statements or
           admissions directly or indirectly related to the MassARRAY Products,
           MassEXTEND(TM) Methods and Processes, or intellectual property
           related to the accusation, claim, or lawsuit, or the merits or lack
           of merit of any accusation, claim, or lawsuit, without the express
           written permission of SEQUENOM. Nothing in this provision shall be
           construed to prevent SPECIALTY from participating in (but not
           controlling) the defense of any such action, with its counsel and at
           its own expense.

     12.2  SPECIALTY IS HEREBY PUT ON NOTICE THAT SEQUENOM'S MASSARRAY PRODUCTS
           AND MassEXTEND(TM) METHODS AND PROCESSES HAVE NOT BEEN SUBJECTED TO
           REGULATORY REVIEW OR APPROVED BY THE FEDERAL FOOD AND DRUG
           ADMINISTRATION OR ANY OTHER UNITED STATES GOVERNMENTAL AGENCY OR
           ENTITY, AND HAVE NOT BEEN APPROVED FOR CLIA COMPLIANCE, OR OTHERWISE
           APPROVED UNDER ANY STATUTE, RULE, LAW, OR REGULATION, FOR ANY
           PURPOSE, RESEARCH, COMMERCIAL, DIAGNOSTIC, OR OTHERWISE. In the event
           of an accusation, claim or lawsuit brought by a third party against
           SEQUENOM, based upon SPECIALTY's Commercial Diagnostics Services or a
           SPECIALTY Product or Service, SPECIALTY shall defend the accusation,
           claim or lawsuit and indemnify and hold harmless SEQUENOM for any and
           all damages and attorneys' fees which may be awarded, provided that
           SEQUENOM (1) provide prompt written notice of the accusation, claim
           or lawsuit to SPECIALTY; (2) authorize and provide SPECIALTY with
           complete control of the defense of the accusation, claim or lawsuit
           and any and all settlements,

                                       16
<PAGE>

                                 CONFIDENTIAL

           negotiations, compromises, and discussions thereof; (3) cooperate
           fully with SPECIALTY and provide SPECIALTY with such reasonable
           assistance, as SPECIALTY may request in the defense of such
           accusation, claim or lawsuit; and (4) make no statements or
           admissions directly or indirectly related to the Commercial
           Diagnostics Services or SPECIALTY Product or Service, or the merits
           or lack of merit of any accusation, claim, or lawsuit, without the
           express written permission of SPECIALTY. Nothing in this provision
           shall be construed to prevent SEQUENOM from participating in (but not
           controlling) the defense of any such action, with its counsel and at
           its own expense.

                             ARTICLE 13.  NOTICES

     13.1  All notices and requests required or authorized hereunder shall be
           given in writing either by personal delivery; by registered or
           certified mail, return receipt requested; or by confirmed facsimile
           followed by first class mail or express delivery. Such notice shall
           be deemed to have been given upon such date that it is so personally
           delivered; the date three (3) days after it is deposited in the mail;
           or the date the same is received by the receiving party's fax
           machine, irrespective of the date appearing therein.

           If to SPECIALTY:                       If to SEQUENOM:

           Specialty Laboratories                 SEQUENOM, Inc.
           Attention:  Paul Beyer                 Attention:  President & CEO
           2211 Michigan Avenue                   11555 Sorrento Valley Road
           Santa Monica, California 90404         San Diego, CA 92121-1331
           Tel: (805) 501-9252                    Tel: (858) 350-0345
           Fax: (310) 828-5173                    Fax: (858) 350-0344

                                                       and a copy to:

                                                  SEQUENOM, Inc.
                                                  Attention:  Corporate Counsel
                                                  11555 Sorrento Valley Road
                                                  San Diego, CA 92121-1331
                                                  Tel: (858) 350-0345
                                                  Fax: (858) 350-0620

                             ARTICLE 14.  GENERAL

     14.1  Force Majeure. Except with respect to the payment of money, neither
           -------------
           party shall be liable for any failure or delay in its performance
           under this Agreement due to causes, including, but not limited to,
           acts of God, acts of civil or military authority, fires, epidemics,
           floods, earthquakes, riots, wars, sabotage, labor shortages or
           disputes, and governmental actions, which are beyond its reasonable
           control; provided that the delayed party: (i) gives the other party
           written notice of such cause and (ii) uses its reasonable efforts to
           correct such failure or delay in its performance. The delayed party's
           time for

                                       17
<PAGE>

                                 CONFIDENTIAL

            performance or cure under this section 14.1 shall be extended for a
            period equal to the duration of the cause.

     14.2   Relationship of Parties. The parties to this Agreement are
            -----------------------
            independent contractors. Neither party nor their respective
            Affiliates, employees, consultants, contractors or agents, are
            Affiliates, agents, employees, joint ventures of the other, nor do
            they have any authority to bind the other by contract or otherwise
            to any obligation. Neither party will represent anything to the
            contrary, either expressly, implicitly, by appearance or otherwise.

     14.3   Assignment. The parties may not assign this Agreement in whole or in
            ----------
            part without the consent of the other, except if such assignment
            occurs in connection with the sale or transfer of all or
            substantially all of the assets of a party to which the subject
            matter of this Agreement pertains.

     14.4   Successors in Interest. Subject to section 14.3, the rights and
            ----------------------
            liabilities of the parties hereto will bind and inure to the benefit
            of their respective successors, executors and administrators, as the
            case may be.

     14.5   Applicable Law. This Agreement shall be governed by and construed in
            --------------
            accordance with the laws of California, U.S., exclusive of its
            conflicts of law rules.

     14.6   Severability. If for any reason a court of competent jurisdiction
            ------------
            finds any provision of this Agreement, or portion thereof, to be
            unenforceable, that provision of the Agreement shall be enforced to
            the maximum extent permissible so as to effect the intent of the
            parties, and the remainder of this Agreement shall continue in full
            force and effect.

     14.7   No Waiver. Failure by either party to enforce any term, provision,
            ---------
            or condition of this Agreement shall not be deemed a waiver of
            future enforcement of that or any other term, provision, or
            condition. No waiver of a term, provision, or condition of this
            Agreement in any one or more instances, whether by context,
            implication, express, or otherwise, shall be construed to be a
            further or continuing waiver of such term, provision, or condition.

     14.8   Counterparts. This Agreement may be executed in one or more
            ------------
            counterparts, each of which will be deemed an original, but all of
            which will constitute but one and the same instrument.

     14.9   Facsimile Copies. For purposes of this Agreement, a signed facsimile
            ----------------
            copy shall have the same force and effect as an original signed
            Agreement.

     14.10  Complete Agreement. This Agreement, including all Appendices,
            ------------------
            constitutes the entire agreement between the parties with respect to
            the subject matter hereof, and supersedes and replaces all prior or
            contemporaneous understandings or agreements, written or oral,
            regarding such subject matter. No amendment to or modification of
            this Agreement shall

                                       18
<PAGE>

                                 CONFIDENTIAL

            be binding unless in writing and signed by a duly authorized
            representative of both parties.

     14.11  Third Party Beneficiaries. Except as specifically set forth herein,
            -------------------------
            no third party beneficiary rights are conferred or are intended to
            be conferred by this Agreement.

     14.12  Headings. Headings in this Agreement are for convenience only, and
            --------
            shall not be used to and shall not affect the meaning or
            interpretation of this Agreement.

     14.13  Construction. This Agreement shall not be strictly construed against
            ------------
            any party hereto, regardless of which party, or how much a party,
            contributed to the drafting of the Agreement.

     14.14  Public Announcements. Any announcements or similar publicity with
            --------------------
            respect to the execution of this Agreement shall be agreed upon
            among the parties in advance of such announcement. The parties
            understand that this Agreement is likely to be of significant
            interest to investors, analysts and others, and that any of the
            parties therefore may make such public announcements with respect
            thereto, provided that the disclosing party has complied with the
            conditions of this section 14.14. The parties agree that any such
            announcement will not contain Confidential business or technical
            Information and, if disclosure of Confidential business or technical
            Information is required by law or regulation, the disclosing party
            will use its best efforts to minimize such disclosure and obtain
            Confidential treatment for any such information which is disclosed
            to a governmental agency or group. Each party agrees to provide to
            the other party a copy of any public announcement as soon as
            reasonably practicable under the circumstances prior to its
            scheduled release. Each party shall provide the other with an
            advance copy of any press release at least ten (10) business days
            prior to the scheduled disclosure. Each party shall have the right
            to expeditiously review and recommend changes to any announcement
            regarding this Agreement or the subject matter of this Agreement.
            Except as otherwise required by law, the party whose press release
            has been reviewed shall remove any information the reviewing party
            reasonably deems to be inappropriate for disclosure.

     14.15  Conflicts. In the event that a conflict arises between this
            ---------
            Agreement and any work order, purchase order, billing statement, or
            invoice related to the purchase of and right to use MassARRAY(TM)
            Products, this Agreement will govern and the conflicting terms,
            provisions, and conditions of any such other documents shall be
            deemed nonexistent, and shall not be binding upon either party.

                                       19
<PAGE>

                                 CONFIDENTIAL

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

SPECIALTY LABORATORIES                  SEQUENOM, Inc.

By:/s/ Paul Beyer                       By:/s/ Steve Zaniboni
   -------------------                     ---------------------------
Name:  Paul Beyer                       Name:  Steve Zaniboni
Title: President                        Title: Chief Financial Officer
Date:  6/19/00                          Date:  6/20/00

                                       20
<PAGE>

                                 CONFIDENTIAL

                                  APPENDIX A

                            MassARRAY(TM) System

SpectroREADER(TM), high-speed mass spectrometer for separation, detection and
characterization of the analyte molecules from a miniaturized array; configured
with a workstation and post processing software

SpectroJET(TM), 4-Channel, v1.1, dispenser for nanoliter sample transfer,
equipped with:

     .    SPIP Micropump with 800 nl chamber volume
     .    droplet volume range of 0.5-2 nl
     .    CV*2% dispensing precision of the pump
     .    0.1 mm precision of x/y positioning stage
     .    maximum speed of 41.9 cm/sec
     .    PC, controller software

SpectroPREP(TM) Automated Multipipettor including:

     .    96-channel automated pipettor
     .    pipetting volume range of 2-200 il
     .    magnetic lifter for bead separation
     .    six position workdeck
     .    PC, controller software

SpectroTYPER(TM) Workstation for automated genotype calling and data management

     .    Workstation (hardware)
     .    SpectroTYPER(TM) software
     .    Oracle database with a license for up to five (5) users, for single
          location use

*  means Less than.

                                     A-1
<PAGE>

                                 CONFIDENTIAL

                                  APPENDIX B

                                MassARRAY(TM) Kit

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
Kit                 Storage                     Components                          Quantity        Dilutions
Package              Temp.
---------------------------------------------------------------------------------------------------------------
<S>                 <C>                     <C>                                   <C>               <C>

Reaction            2-8(degree) C           Beads                                   16 mL              none
Components                                  Binding Buffer                          60 mL              1:3 &
B                                           Denaturation Solution                   60 mL           undiluted
                                            Wash & Conditioning Buffer            2 x 60 mL            1:10
                                            Recovery Solution                       60 mL              1:10
                                            Calibrant                                                  1:10

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

SpectroCHIP(TM)     15-25(degree)  C        384-D Spectro CHIP(TM) (96-D            10                 n/a
 Pack                                    Spectro CHIP(TM) will be
                                            supplied unitl 384-D available)
---------------------------------------------------------------------------------------------------------------
</TABLE>

                                      B-1
<PAGE>

            ***PORTIONS OF THIS PAGE HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
                 CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE COMMISSION

                                 CONFIDENTIAL

                                  APPENDIX C

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                                                                         <C>
         MassArray                                         Item                                               Price
        Enzyme Pack         ------------------------------------------------------------------------------------------------
                                  MassEXTEND Enzyme                                                                $ *******
                            ------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------
         MassArray                                         Item                                               Price
         Positive           ------------------------------------------------------------------------------------------------
       Control Pack               MassEXTEND Template                                                              $ *******
                            ------------------------------------------------------------------------------------------------
                                  MassEXTEND Primer
----------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------
         MassArray                                         Item                                               Price
    Nucleotide Uni-Mix      ------------------------------------------------------------------------------------------------
          Pack                    EXTEND Mix 1 - ddATP/dCTP/dGTP/dTTP                                              $ *******
                            ------------------------------------------------------------------------------------------------
                                  EXTEND Mix 2 - ddCTP/dATP/dGTP/dTTP
                            ------------------------------------------------------------------------------------------------
                                  EXTEND Mix 3 - ddGTP/dATP/dCTP/dTTP
                            ------------------------------------------------------------------------------------------------
                                  EXTEND Mix 4 - ddTTP/dATP/dCTP/dGTP
----------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------
         MassArray                                         Item                                               Price
     Nucleotide Di-Mix      ------------------------------------------------------------------------------------------------
           Pack                   EXTEND Mix 5 - ddATP/ddCTP/dGTP/dTTP                                             $ *******
                            ------------------------------------------------------------------------------------------------
                                  EXTEND Mix 6 - ddATP/ddGTP/dCTP/dTTP
                            ------------------------------------------------------------------------------------------------
                                  EXTEND Mix 7 - ddATP/ddTTP/dCTP/dGTP
                            ------------------------------------------------------------------------------------------------
                                  EXTEND Mix 8 - ddCTP/ddGTP/dATP/dTTP
                            ------------------------------------------------------------------------------------------------
                                  EXTEND Mix 9 - ddCTP/ddTTP/dATP/dGTP
                            ------------------------------------------------------------------------------------------------
                                  EXTEND Mix 10 - ddGTP/ddTTP/dATP/dCTP
----------------------------------------------------------------------------------------------------------------------------
       MassArray                                           Item                                               Price
  Nucleotide Tri-Mix        ------------------------------------------------------------------------------------------------
         Pack
                                EXTEND Mix 11 - ddATP/ddCTP/ddGTP/dTTP                                             $ *******
                            ------------------------------------------------------------------------------------------------
                                EXTEND Mix 12 - ddATP/ddCTP/ddTTP/dGTP
                            ------------------------------------------------------------------------------------------------
                                EXTEND Mix 13 - ddATP/ddGTP/ddTTP/dCTP
                            ------------------------------------------------------------------------------------------------
                                EXTEND Mix 14 - ddCTP/ddGTP/ddTTP/dATP
---------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      C-1
<PAGE>

            ***PORTIONS OF THIS PAGE HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
                 CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE COMMISSION

                                  CONFIDENTIAL

                                   APPENDIX D

                                      ***

                                      D-1<PAGE>

                                                                   EXHIBIT 10.68

                              SETTLEMENT AGREEMENT

This Settlement Agreement ("Agreement") is made and entered into by and between
Hubert Koster ("Dr. Koster") and Sequenom, Inc. (the "Company"), as of the
eighth day after this Agreement is signed by Dr. Koster as provided in Section
18 herein.  Dr. Koster and the Company hereby agree as follows:

1.  Separation Date.  Dr. Koster's employment with the Company shall be
voluntarily terminated effective May 31, 2000 (the "Separation Date") and he
will resign as an executive officer and employee of the Company as of the
Separation Date.  On or before the Separation Date, Dr. Koster will be appointed
to the office of Vice-Chairman of the Board of Directors with the duties and
responsibilities as set forth from time to time in the Company's Bylaws.  Dr.
Koster shall not be an executive officer of the Company as of the Separation
Date.  Dr. Koster will maintain his position as a member of the Company's Board
of Directors ("BOD") and the Company's Scientific Advisory Board ("SAB").  Dr.
Koster acknowledges and agrees that his positions with the BOD and the SAB will
expire at the Company's next annual shareholder's meeting, unless a majority of
the other members of the BOD at that time, in their sole discretion, elect to
renew Dr. Koster's position on the BOD and/or the SAB.  The Employment Agreement
between Dr. Koster and the Company effective July 1, 1997 (the "Employment
Agreement"), attached hereto as Exhibit A, will terminate as of the Separation
Date and will no longer have any force or effect, except as expressly provided
in this Agreement.

2.  Accrued Salary And Vacation.  The Company agrees that it will pay Dr. Koster
all accrued salary, and all accrued and unused vacation benefits earned through
the Separation Date, if any, subject to standard payroll deductions, withholding
taxes and other obligations. Dr. Koster is entitled to this payment regardless
of whether or not he signs this Agreement

3.  Expense Reimbursement.  Within sixty (60) business days of his execution of
this Agreement, Dr. Koster agrees that he will submit his final documented
expense reimbursement statement reflecting all business expenses he incurred
prior to and including the Separation Date, if any, for which he seeks
reimbursement, pursuant to Company policy and regular business practice.  After
the Separation Date, the Company will reimburse Dr. Koster for all reasonable
business expenses that he incurs in connection with his service as a Vice-
Chairman and member of the BOD, as a member of the SAB, as a consultant
(including his performance under Exhibit B), or in performing any obligation
under Section 14 of this Agreement, pursuant to Company policy and regular
business practice.

4.  Severance.  The Company agrees to make severance payments to Dr. Koster in
the amount of five hundred fifty thousand dollars ($550,000), less standard
deductions and withholdings, on the Effective Date of this Agreement.  In
addition, the Company agrees to pay Dr. Koster thirty thousand dollars
($30,000), less standard deductions and withholdings, per month, as well as the
amount necessary to cover the lease payments on his Company car, through the
earlier of: one (1) year from the Separation Date or the date on which Dr.
Koster commences full-time employment with another employer or entity (the
"Severance Period").  The monthly payments during the Severance Period will be
made on the Company's ordinary payroll dates, and will be subject to standard
payroll deductions and withholdings.

                                       1.
<PAGE>

5.  Consulting.  Dr. Koster and the Company agree that during the Severance
Period and in partial consideration for severance payments provided in Section 4
herein, Dr. Koster shall serve as a consultant, subject to the terms herein.

    (a)  Consulting Services. During the Severance Period, Dr. Koster shall b
available to consult with the Company as requested by the Company's Chief
Executive Officer, Chief Scientific Officer, Chief Financial Officer or Chairman
of the Board of Directors. Dr. Koster's consulting services shall be performed
via telephone, computer communications, or facsimile unless he is specifically
requested, with reasonable advance notice, to come to Company premises; and Dr.
Koster will not have an office on Company premises during the Severance Period.
Dr. Koster agrees not to contact Company employees to discuss Company business,
except as necessary in the performance of his duties as a member of the BOD or
SAB. Dr. Koster agrees not to make any presentations regarding or relating to
the Company without the prior written approval of the Company's CEO.

    (b)  No Agency or Employment Relationship. During the Severance Period, Dr.
Koster will not be considered an agent or an employee of the Company, Dr. Koster
will not have authority to make any representation, contract, or commitment on
behalf of the Company and Dr. Koster agrees not to do so; and, except as
otherwise provided in this Agreement, he will not be entitled to any of the
benefits which the Company may make available to its employees, such as group
insurance, profit sharing, or retirement benefits.

    (C)  Other Work Activities. During the Severance Period, Dr. Koster may
engage in employment, consulting or other work relationships in addition to his
work for the Company, provided that they do not violate the terms of Section 10
herein; provided, however, that upon commencement of full-time employment with
another employer or entity, the Severance Period will end in accordance with
Section 4 herein. The Company agrees to make reasonable arrangements to enable
Dr. Koster to perform his consulting services for the Company at such times and
in such a manner so that it does not unreasonably interfere with other work
activities in which he may engage.

    (d)  Consulting Information. Dr. Koster and the Company will execute and
abide by the Consultant Proprietary Information and Inventions Agreement in the
form attached hereto as Exhibit B (the "Consultant Inventions Agreement").

6.  Insurance Benefits. During the Severance Period, the Company will reimburse
Dr. Koster for the full amount of Dr. Koster's COBRA health insurance premium
necessary to obtain health insurance coverage equivalent to the coverage for Dr.
Koster and his family received during Dr. Koster's employment.

7.  Company Stock.

    (a)  Terminated Stock Option. The Company and Dr. Koster agree that the
stock option to purchase 200,000 shares of the Company's Common Stock granted to
Dr. Koster on February 11, 2000 will be terminated as of the Effective Date of
this Agreement and will no longer have any force or effect.

                                       2.
<PAGE>

    (b)  Repurchased Shares.  The Company and Dr. Koster agree that with respect
to 30,000 shares of Common Stock purchased by Dr. Koster, but subject to a right
of repurchase in favor of the Company, Dr. Koster's service will be deemed to
have been terminated, and pursuant to the Company's 1998 Stock Option/Stock
Issuance Plan and the governing Stock Option Agreements and Stock Purchase
Agreements, the Company will exercise its right to repurchase such thirty
thousand shares of Common Stock in exchange for a payment of ninety thousand
dollars ($90,000) which the Company will pay to Dr. Koster on the Effective
Date. This ninety thousand dollar ($90,000) payment is in addition to the
severance payments described in Section 4 of this Agreement.

    (c)  Unvested Shares.  Thus, as of the Effective Date, Dr. Koster will have
218,929 exercised but unvested shares ("Unvested Exercised Shares") of the
Company's Common Stock and 541,071 vested shares of the Company's Common Stock,
for a total of 760,000 vested and unvested shares of the Company's Common Stock,
which will continue to be governed by the terms of the Company's 1998 Stock
Option/Stock Issuance Plan and the governing Stock Option Agreements and Stock
Purchase Agreements, except as expressly set forth in Section 7(d) herein. Dr.
Koster and the Company agree that in exchange for the promises and covenants set
forth herein and as long as Dr. Koster continues to provide services as a member
of the BOD, the vesting of Dr. Koster's Unvested Exercised Shares of Common
Stock shall continue in accordance with the terms of the Company's 1998 Stock
Option/Stock Issuance Plan and the governing Stock Option Agreements and Stock
Purchase Agreements. The Company retains its right to repurchase the Unvested
Exercised Shares pursuant to the terms of its 1998 Stock Option/Stock Issuance
Plan and the governing Stock Option Agreements and Stock Purchase Agreements.

    (d)  Special Accelerated Vesting.  Notwithstanding the provisions of Section
7(c) herein, the Company and Dr. Koster agree that with respect to 60,000 shares
of Common Stock purchased by Dr. Koster upon early exercise of a stock option
granted to him on or about July 9, 1999 but subject to a right of repurchase in
favor of the Company, on the later of (i) the last day of Dr. Koster's service
as a member of the BOD or (ii) the last day of Dr. Koster's service as a member
of the SAB, the Company will relinquish all of its rights to repurchase any
remaining unvested position of such shares such that all 60,000 of those shares
will be held by Dr. Koster without being subject to a right of repurchase in
favor of the Company as of the applicable last day of service.

8.  Company Car.  In exchange for the promises and covenants set forth herein,
the Company agrees to transfer the lease on Dr. Koster's Company car to Dr.
Koster personally and to pay for the lease payments on the car as provided in
Section 4 herein.

9.  Other Compensation And Benefits.  Except as expressly provided herein, Dr.
Koster acknowledges and agrees that he is not entitled to and will not receive
any additional compensation, severance, stock options, stock or benefits from
the Company.

                                       3.
<PAGE>

10.  Non-compete And Non-solicitation.

     (a)  Non-compete:  In exchange for the promises and covenants herein, Dr.
Koster agrees that during the Severance Period:

          (i)  Dr. Koster will not engage, directly or indirectly, whether as an
owner, employee, officer, director, agent, consultant or otherwise, in a
business using DNA MassARRAY technology or other genomic activities conducted by
the Company, including, but not limited to determination of utility for genetic
materials, provided, however, that the ownership of two percent (2%) or less of
the stock of a company whose shares are listed on a national securities exchange
or are quoted on the National Association of Securities Dealers Automated
Quotation System shall not be deemed ownership or having an interest which is
prohibited hereunder; and

          (ii) Dr. Koster will not solicit or accept any business from any
customer of the Company for products or services relating to DNA MassARRAY
technology or other genomic activities conducted by the Company, including, but
not limited to determination of utility for genetic materials, or request,
induce or advise customers of the Company to withdraw, curtail or cancel their
business with the Company.

     (b)  Nonsolicitation. Pursuant to Section 9 of the Employment Agreement,
Dr. Koster agrees that for one (1) year following the Separation Date, Dr.
Koster will not, either directly or indirectly: (1) call on, solicit, or take
away any of the customers of the Company on whom Dr. Koster called or with whom
he became acquainted or had any personal contact during his employment with the
Company, either for himself of for any other person or entity, or (2) solicit or
take away, or attempt to solicit or take away any employees of the Company,
either for himself or for any other person or entity.

11.  Termination Of Company's Obligations.  Notwithstanding any provisions in
this Agreement to the contrary, the Company's obligations, and Dr. Koster's
rights pursuant to Section 7 herein, regarding the continued or accelerated
vesting of Common Stock held by Dr. Koster may, at the Company's discretion,
cease if both: (a) Dr. Koster fails to comply with any of the provisions of
Section 10 herein; and (b) the Company notifies Dr. Koster in writing that he
has failed to comply. Unless and until both conditions are met, the Common Stock
held by Dr. Koster will continue to vest as provided in Section 7 herein.

12.  No Further Employment With The Company.  Dr. Koster understands and agrees
that, as a condition of this Agreement, Dr. Koster shall not be entitled to any
employment with the Company, its parents or subsidiaries, and Dr. Koster hereby
waives any right, or alleged right, of employment or re-employment with the
Company and any of its parents or subsidiaries. Dr. Koster further agrees that
he will only be eligible to apply for employment with the Company, its parents
or subsidiaries, if he obtains prior written consent from the Company, which
consent may be withheld for any reason or no reason.

13.  Return Of Company Property.  Dr. Koster acknowledges and agrees to comply
with Section 15 of the Employment Agreement, except to the extent that he
reasonably needs property

                                       4.
<PAGE>

described in that section to perform his duties as a member of the BOD or SAB,
or as a consultant.

14.  Proprietary Information Obligations And Company Developments.  Dr. Koster
acknowledges and agrees to comply with Sections 10 and 11 of the Employment
Agreement, as they govern Confidential Information and Developments made while
he was employed with the Company. In addition, Dr. Koster will assist the
Company in every proper way to obtain, and from time to time enforce, United
States and foreign proprietary rights relating to the Company's Developments
made before the Separation Date (as defined in Section 11 of the Employment
Agreement) in any and all countries. To that end Dr. Koster will execute, verify
and deliver such documents and perform such other acts (including appearances as
a witness) as the Company may reasonably request for use in applying for,
obtaining, perfecting, evidencing, sustaining and enforcing such Developments
and the assignment thereof. In addition, he will execute, verify and deliver
assignments of such Developments to the Company or its designee.

In the event the Company is unable for any reason, after reasonable effort, to
secure Dr. Koster's signature on any document needed in connection with the
actions specified in the preceding paragraph, Dr. Koster hereby irrevocably
designates and appoints the Company and its duly authorized officers and agents
as his agent and attorney in fact, which appointment is coupled with an
interest, to act for and in his behalf to execute, verify and file any such
documents and to do all other lawfully permitted acts to further the purposes of
the preceding paragraph with the same legal force and effect as if executed by
Dr. Koster. Dr. Koster hereby waives and quitclaims to the Company any and all
claims, of any nature whatsoever, which he now or may hereafter have for
infringement of any proprietary rights assigned hereunder to the Company.

15.  Non-disparagement.  Dr. Koster agrees on behalf of himself and his family
members and the Company agrees that each of them will not at any time disparage
the other party, and the other party's officers, directors, employees,
shareholders, agents or family members, in any manner likely to be harmful to
them or their business, business reputation or personal reputation; provided
that each party shall respond accurately and fully to any questions, inquiry or
request for information when required by legal process.

16.  Confidentiality And Publicity.  The provisions of this Agreement shall be
held in strictest confidence by Dr. Koster and the Company and shall not be
publicized or disclosed in any manner whatsoever; provided, however, that: (a)
Dr. Koster may disclose this Agreement, in confidence, to Dr. Koster's immediate
family; (b) the parties may disclose this Agreement in confidence to their
respective attorneys, accountants, auditors, tax preparers, and financial
advisors; (c) the Company may disclose this Agreement as necessary to fulfill
standard or legally required corporate reporting or disclosure requirements; and
(d) the parties may disclose this Agreement insofar as such disclosure may be
necessary to enforce its terms or as otherwise required by law. If either party
to this Agreement fails to comply with its obligations under this Section 16,
the other party will be relieved of its obligations under this Section 16.

17.  Release Of Claims.  In exchange for the promises and covenants set forth
herein, Dr. Koster hereby releases, acquits, and forever discharges the Company,
its parents and subsidiaries, and their officers, directors, agents, servants,
employees, attorneys, shareholders,

                                       5.
<PAGE>

partners, successors, assigns, affiliates, customers, and clients of and from
any and all claims liabilities, demands, causes of action, costs, expenses,
attorneys' fees, damages, indemnities and obligations of every kind and nature,
in law, equity, or otherwise, known and unknown, suspected and unsuspected,
disclosed and undisclosed ("Claims"), (including but not limited to any federal,
state or local law or cause of action including, but not limited to, the
California Fair Employment and Housing Act, the federal Civil Rights Act of
1964, as amended; the federal Age Discrimination in Employment Act of 1967, as
amended; the federal Americans With Disabilities Act; tort law; contract law;
wrongful discharge; discrimination; harassment; fraud; defamation; emotional
distress; and breach of the implied covenant of good faith and fair dealing),
but only to the extent that such Claims directly or indirectly arise out of or
are in any way connected with: (a) the Company's employment of Dr. Koster, (b)
the termination of that employment, (c) the Company's performance of its
obligations as Dr. Koster's former employer; (d) claims or demands related to
salary, bonuses, commissions, stock, stock options, or any other ownership
interests in the Company, or (e) vacation pay, fringe benefits, expense
reimbursements, severance pay, or any form of compensation.

     Notwithstanding the foregoing, this release does not include, and Dr.
Koster expressly reserves, any Claims arising out of or in any way connected
with: (a) the Company's obligations under this Agreement, or (b) the Company's
obligations under law or the Company's Bylaws to indemnify, defend, or hold
harmless Dr. Koster.

18.  ADEA Waiver.  Dr. Koster further acknowledges that he is knowingly and
voluntarily waiving and releasing any rights he may have under the Age
Discrimination in Employment Act of 1967 ("ADEA"). Dr. Koster also acknowledges
that the consideration given for the waiver and release in the preceding
paragraphs hereof is in addition to anything of value to which Dr. Koster was
already entitled. Dr. Koster hereby provides the further acknowledgment that he
is advised by this writing, as required by the Older Workers Benefit Protection
Act, that: (a) his waiver and release do not apply to any rights or claims that
may arise after the Effective Date of this Agreement; (b) he has the right to
consult with an attorney prior to executing this Agreement (although Dr. Koster
may voluntarily choose not to do so); (c) Dr. Koster may have at least twenty-
one (21) days to consider this Agreement (although Dr. Koster may by his own
choice execute this Agreement earlier); (d) Dr. Koster has seven (7) days
following the execution of this Agreement to revoke this Agreement; and (e) this
Agreement shall not be effective until the date upon which the revocation period
has expired, therefore making the effective date the eighth day after this
Agreement is signed by Dr. Koster (the "Effective Date").

19.  Section 1542 Waiver.  The Company and Dr. Koster hereby acknowledge that
each has read and understands Section 1542 of the Civil Code of the State of
California which reads as follows:

     A general release does not extend to claims which the creditor does not
     know or suspect to exist in his favor at the time of executing the release,
     which if known by him must have materially affected his settlement with the
     debtor.

Dr. Koster and the Company hereby expressly waive and relinquish all rights and
benefits under this section to the extent it relates to the subject matter of
the releases granted by the parties

                                       6.
<PAGE>

herein and any law or legal principle of similar effect in any jurisdiction with
respect to claims released hereby.

20.  Release Of Claims By The Company.  The Company hereby releases, acquits and
forever discharges Dr. Koster and his agents, successors, assigns and affiliates
from any and all claims, liabilities, demands, causes of action, costs,
expenses, attorneys' fees, damages, indemnities and obligations of every kind in
nature, in law, equity or otherwise arising out of or in any way related to
agreements, events, acts or conduct at any time prior to and including the date
the Company executes this Agreement, relating to any act or omission by Dr.
Koster within the authorized course and scope of his employment with the
Company, with the exception of any claim arising out of his obligations under
this Agreement, including, but not limited to, any obligations relating to the
proprietary information of the Company. The Company, its officers, directors and
managerial employees acknowledge that as of the Separation Date they have no
knowledge, information or belief that Dr. Koster has performed any act or
omission outside the authorized course and scope of his employment.

21.  No Admissions.  The parties hereto hereby acknowledge that this is a
compromise settlement of various matters, and that the promised payments in
consideration of this Agreement shall not be construed to be an admission of any
liability or obligation by either party to the other party or to any other
person whomsoever.

22.  Entire Agreement.  This Agreement, including Exhibits A and B constitutes
the complete, final and exclusive embodiment of the entire Agreement between Dr.
Koster and the Company with regard to the subject matter hereof. It is entered
into without reliance on any promise or representation, written or oral, other
than those expressly contained herein. It may not be modified except in a
writing signed by Dr. Koster and a duly authorized officer of the Company. Each
party has carefully read this Agreement, has been afforded the opportunity to be
advised of its meaning and consequences by his or its respective attorneys, and
signed the same of his or its free will.

23.  Successors And Assigns.  This Agreement shall bind the heirs, personal
representatives, successors, assigns, executors, and administrators of each
party, and inure to the benefit of each party, its agents, directors, officers,
employees, servants, heirs, successors and assigns.

24.  Applicable Law.  This Agreement shall be deemed to have been entered into
and shall be construed and enforced in accordance with the laws of the State of
California as applied to contracts made and to be performed entirely within
California.

25.  Arbitration.  To ensure rapid and economical resolution of any disputes
which may arise under this Agreement or the Consultant Inventions Agreement
(Exhibit B hereto), Dr. Koster and the Company agree that any and all disputes
or controversies of any nature whatsoever, arising from or regarding the
interpretation, performance, enforcement or breach of this Agreement or the
Consultant Inventions Agreement shall be resolved by confidential, final and
binding arbitration (rather than trial by jury or court or resolution in some
other forum) to the fullest extent permitted by law. Any arbitration proceeding
pursuant to this Agreement shall be conducted by the American Arbitration
Association ("AAA") under the then-existing AAA

                                       7.
<PAGE>

employment-related arbitration rules. If for any reason all or part of this
arbitration provision is held to be invalid, illegal or unenforceable in any
respect under any applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability will not affect any other portion of this
arbitration provision or any other jurisdiction, but this provision will be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable part or parts of this provision had never been
contained herein, consistent with the general intent of the parties insofar as
possible. The prevailing party in such arbitration proceeding shall be entitled
to recover from the other party reasonable attorneys' fees, arbitration expenses
and other recoverable costs incurred in connection with such arbitration
proceeding.

26.  Severability.  If a court of competent jurisdiction determines that any
term or provision of this Agreement is invalid or unenforceable, in whole or in
part, then the remaining terms and provisions hereof shall be unimpaired. Such
court will have the authority to modify or replace the invalid or unenforceable
term or provision with a valid and enforceable term or provision that most
accurately represents the parties' intention with respect to the invalid or
unenforceable term or provision.

27.  Indemnification.  Each party will indemnify and save harmless each other
party hereto from any loss incurred directly or indirectly by reason of the
falsity or inaccuracy of any representation made in Section 28 below.
Notwithstanding any other provision of this Agreement, the Company will to the
maximum extent required by law or the Company's Bylaws, indemnify, defend, and
hold harmless Dr. Koster from any loss or claim arising out of or related to Dr.
Koster's past or future service as an employee, consultant, officer, director or
scientific advisor.

28.  Authorization.  Each party warrants and represents that there are no liens
or claims of lien or assignments in law or equity or otherwise of or against any
of the claims or causes of action released herein and, further, that Dr. Koster
are fully entitled and duly authorized to give Dr. Koster complete and final
general release and discharge.

29.  Counterparts.  This Agreement may be executed in two counterparts, each of
which shall be deemed an original, all of which together shall constitute one
and the same instrument.

30.  Section Headings.  The section and paragraph headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

                                       8.
<PAGE>

31.  Press Release.  The Company and Dr. Koster will agree upon a mutually
acceptable press release regarding the termination of Dr. Koster's employment.
In the event that such press release is not mutually agreed upon by the close of
the Nasdaq Stock Market on Wednesday, May 31, 2000, the Company may issue its
version of the press release without Dr. Koster's approval.

Hubert Koster,
an individual.

/s/ HUBERT KOSTER
-------------------------
Hubert Koster

Dated: May 31, 2000
       -----------------

Sequenom, Inc.

By: /s/ HELMUT SCHUHSLER
   ----------------------
Helmut Schuhsler
Chairman of the Board

Dated: June 6, 2000
       ------------------

                                       9.
<PAGE>

                                   EXHIBIT A

                             EMPLOYMENT AGREEMENT
<PAGE>

                                   EXHIBIT B

                      CONSULTANT PROPRIETARY INFORMATION
                           AND INVENTIONS AGREEMENT

     In consideration of entering into a consulting relationship with Sequenom,
Inc. (the "Company") as described in the Settlement Agreement between the
Company and me signed on May 31, 2000 and the fees now and hereafter paid to me
during the Severance Period defined in that Settlement Agreement, I hereby agree
to the terms of this Consultant Proprietary Information and Inventions Agreement
(the "Agreement") as follows:

     1.   Recognition of Company's Rights; Nondisclosure. At all times during
          the term of my consulting relationship and for three (3) years
          thereafter, I will hold in strictest confidence and will not disclose,
          use, lecture upon or publish any of the Company's Proprietary
          Information (defined below), except as such disclosure, use or
          publication may be required in connection with my work for the
          Company, or unless an officer of the Company expressly authorizes such
          in writing. I hereby assign to the Company any rights I may have or
          acquire in such Proprietary Information and recognize that all
          Proprietary Information shall be the sole property of the Company and
          its assigns and the Company and its assigns shall be the sole owner of
          all trade secret rights, patent rights, copyrights, mask work rights
          and all other rights throughout the world (collectively, "Proprietary
          Rights") in connection therewith.

     The term "Proprietary Information" shall mean trade secrets, confidential
knowledge, data or any other proprietary information of the Company. By way of
illustration but not limitation, "Proprietary Information" includes (a) trade
secrets, inventions, mask works, ideas, processes, formulas, source and object
codes, data, programs, other works of authorship, know-how, improvements,
discoveries, developments, designs and techniques (hereinafter collectively
referred to as "Inventions"); and (b) information regarding plans for research,
development, new products, marketing and selling, business plans, budgets and
unpublished financial statements, licenses, prices and costs, suppliers and
customers; and information regarding the skills and compensation of employees or
other consultants of the Company.

     2.   Third Party Information. I understand, in addition, that the Company
          has received and in the future will receive from third parties
          confidential or proprietary information ("Third Party Information")
          subject to a duty on the Company's part to maintain the
          confidentiality of such information and to use it only for certain
          limited purposes. During the term of my consulting relationship and
          thereafter, I will hold Third Party Information in the strictest
          confidence and will not disclose (to anyone other than Company
          personnel who need to know such information in connection with their
          work for the Company) or use, except in connection with my work for

          Third Party Information. I understand, in addition, that the Company
          has received and in the future will receive from third parties
          confidential or proprietary information ("Third Party Information")
          subject to a duty on the Company's part to maintain the
          confidentiality of such information and to use it only for certain
          limited purposes. During the term of my consulting relationship and
          thereafter, I will hold Third Party Information in the strictest
          confidence and will not disclose (to anyone other than Company
          personnel who need to know such information in connection with their
          work for the Company) or use, except in connection with my work for
          the Company, Third Party Information unless expressly authorized by an
          officer of the Company in writing.

                                      1.
<PAGE>

     3.   Assignment of Inventions.

          3.1  Assignment. I hereby assign to the Company all my right, title
and interest in and to any and all Inventions (and all Proprietary Rights with
respect thereto) whether or not patentable or registrable under copyright or
similar statutes, made or conceived or reduced to practice or learned by me,
either alone or jointly with others, during the period of my consulting
relationship with the Company. Inventions assigned to or as directed by the
Company by this paragraph three (3) are hereinafter referred to as "Company
Inventions. " I recognize that this Agreement does not require assignment of any
invention which, if I was an employee of the Company, would fully qualify for
protection under Section 2870 of the California Labor Code (hereinafter "Section
2870"), which provides as follows:

               (a)  Any provision in an employment agreement which provides that
a employee shall assign, or offer to assign, any of his or her rights in an
invention to his or her employer shall not apply to an invention that the
employee developed entirely on his or her own time without using the employer's
equipment, supplies, facilities, or trade secret information except for those
inventions that either:

                    (i)  Relate at the time of conception or reduction to
practice of the invention to the employer's business, or actual or demonstrably
anticipated research or development of the employer.

                    (ii) Result from any work performed by the employee for the
employer.

               (b)  To the extent a provision in an employment agreement
purports to require an employee to assign an invention otherwise excluded from
being required to be assigned under subdivision (i), the provision is against
the public policy of this state and is unenforceable.

          3.2  Works for Hire. I acknowledge that all original works of
authorship which are made by me (solely or jointly with others) within the scope
of my consulting work and which are protectable by copyright are "works made for
hire, " as that term is defined in the United States Copyright Act (17 U.S.C.,
Section 101).

     4.   Enforcement of Proprietary Rights. I will assist the Company in every
          proper way to obtain and from time to time enforce United States and
          foreign Proprietary Rights relating to Company Inventions in any and
          all countries. To that end I will execute, verify and deliver such
          documents and perform such other acts (including appearances as a
          witness) as the Company may reasonably request for use in applying
          for, obtaining, perfecting, evidencing, sustaining and enforcing such
          Proprietary Rights and the assignment thereof. In addition, I will
          execute, verify and deliver assignments of such Proprietary Rights to
          the Company or its designee. My obligation to assist the Company with
          respect to Proprietary Rights relating to such Company Inventions in
          any and all countries shall continue beyond the termination of my
          consulting relationship, but the Company shall

                                      2.
<PAGE>

          compensate me at a reasonable rate after my termination for the time
          actually spent by me at the Company's request on such assistance.

     In the event the Company is unable for any reason, after reasonable effort,
to secure my signature on any document needed in connection with the actions
specified in the preceding paragraph, I hereby irrevocably designate and appoint
the Company and its duly authorized officers and agents as my agent and attorney
in fact, which appointment is coupled with an interest, to act for and in my
behalf to execute, verify and file any such documents and to do all other
lawfully permitted acts to further the purposes of the preceding paragraph with
the same legal force and effect as if executed by me. I hereby waive and
quitclaim to the Company any and all claims, of any nature whatsoever, which I
now or may hereafter have for infringement of any Proprietary Rights assigned
hereunder to the Company.

     5.   Obligation to Keep Company Informed. During the period of my
          consulting and for six (6) months after termination of my consulting
          relationship with the Company, if the Company requests such disclosure
          in writing, I will promptly disclose to the Company fully and in
          writing any Inventions that could relate to the Company's Proprietary
          Information authored, conceived or reduced to practice by me, either
          alone or jointly with others. In addition, I will promptly disclose to
          the Company all patent applications filed by me or on my behalf within
          a year after termination of my consulting relationship. At the time of
          each such disclosure, I will advise the Company in writing of any
          Inventions that I believe fully qualify for protection under Section
          2870 if I was an employee of the Company; and I will at that time
          provide to the Company in writing all evidence necessary to
          substantiate that belief. The Company will keep in confidence and will
          not disclose to third parties without my consent any proprietary
          information disclosed in writing to the Company pursuant to this
          Agreement relating to Inventions that would qualify fully for
          protection under the provisions of Section 2870 if I was an employee;
          and I will preserve the confidentiality of any Invention that does not
          fully qualify for protection under Section 2870.

     I agree to keep and maintain adequate and current records (in the form of
notes, sketches, drawings and in any other form that may be required by the
Company) of all Proprietary Information developed by me and all Inventions made
by me during the period of my consulting relationship with the Company, which
records shall be available to and remain the sole property of the Company at all
times.

     6.   Prior Inventions. Inventions, if any, patented or unpatented, which I
          made prior to the commencement of my consulting relationship with the
          Company are excluded from the scope of this Agreement. To preclude any
          possible uncertainty, I have set forth on Exhibit A attached hereto a
          complete list of all Inventions that I have, alone or jointly with
          others, conceived, developed or reduced to practice or caused to be
          conceived, developed or reduced to practice prior to the commencement
          of my consulting relationship with the Company, that I consider to be
          my property or the property of third parties and that I wish to have
          excluded from the scope of this Agreement. If disclosure of any such
          Invention on Exhibit A would cause me to violate any prior
          confidentiality agreement, I

                                      3.
<PAGE>

          understand that I am not to list such Inventions in Exhibit A but am
          to inform the Company that all such Inventions have not been listed
          for that reason.

     7.   Additional Activities. I agree that during the period of my consulting
          relationship with the Company I retain the right to engage in
          employment or business activities for entities other than the Company,
          so long as such other work activities are not in competition with the
          Company's business endeavors and do not raise a conflict of interest
          with my obligations to the Company.

     8.   No Improper Use of Materials. During my consulting relationship with
          the Company I will not improperly use or disclose any confidential
          information or trade secrets, if any, of any former employer or any
          other person or entity to whom I have an obligation of
          confidentiality, and I will not bring onto the premises of the Company
          any unpublished documents or any property belonging to any former
          employer or any other person or entity to whom I have an obligation of
          confidentiality unless consented to in writing by that former
          employer, person or entity. I will use in the performance of my duties
          only information which is generally known and used by persons with
          training and experience comparable to my own, which is common
          knowledge in the industry or otherwise legally in the public domain,
          or which is otherwise provided or developed by the Company.

     9.   No Conflicting Obligation. I represent that my performance of all the
          terms of this Agreement and as a Consultant for the Company does not
          and will not breach any agreement to keep in confidence information
          acquired by me in confidence or in trust prior to my independent
          consulting relationship with the Company. I have not entered into, and
          I agree I will not enter into, any agreement either written or oral in
          conflict herewith.

     10.  Return of Company Documents. When my consulting relationship with the
          Company terminates, I will deliver to the Company any and all
          drawings, notes, memoranda, specifications, devices, formulas, and
          documents, together with all copies thereof, and any other material
          containing or disclosing any Company Inventions, Third Party
          Information or Proprietary Information of the Company. I further agree
          that any property situated on the Company's premises and owned by the
          Company, including disks and other storage media, filing cabinets or
          other work areas, is subject to inspection by Company personnel at any
          time with or without notice.

     11.  Notices. Any notices required or permitted hereunder shall be given to
          the appropriate party at the address specified below or at such other
          address as the party shall specify in writing. Such notice shall be
          deemed given upon personal delivery to the appropriate address or if
          sent by recognized overnight courier two (2) days after the date of
          mailing.

                                      4.
<PAGE>

     12.  General Provisions.

          12.1    Governing Law. This Agreement will be governed by and
construed according to the laws of the State of California.

          12.2    Entire Agreement. This Agreement and the Settlement Agreement
between Dr. Koster and the Company represent the exclusive agreement of the
parties with respect to the subject matter hereof. No modification of or
amendment to this Agreement, nor any waiver of any rights under this Agreement,
will be effective unless in writing and signed by the party to be charged.

          12.3    Severability. If one or more of the provisions in this
Agreement are deemed unenforceable by law, then such provision will be deemed
stricken from this Agreement and the remaining provisions will continue in full
force and effect.

          12.4    Successors and Assigns. This Agreement will be binding upon my
heirs, executors, administrators and other legal representatives and will be for
the benefit of the Company, its successors, and its assigns.

          12.5    Survival. Sections 1,2,3,4,5,13.1 of this Agreement shall
survive the termination of my consulting relationship and the assignment of this
Agreement by the Company to any successor in interest or other assignee.

          12.6    Consulting Relationship. I agree and understand that nothing
in this Agreement shall confer any right with respect to continuation of my
consulting relationship by the Company, nor shall it interfere in any way with
my right or the Company's right to terminate my consulting relationship.

          12.7    Waiver. No waiver by the Company of any breach of this
Agreement shall be a waiver of any preceding or succeeding breach. No waiver by
the Company of any right under this Agreement shall be construed as a waiver of
any other right. The Company shall not be required to give notice to enforce
strict adherence to all terms of this Agreement.

     This Agreement shall be effective as of the first day of my work as a
Consultant with the Company, namely: June 8, 2000.

     I HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS.  I HAVE
COMPLETELY FILLED OUT EXHIBIT A TO THIS AGREEMENT.

Dated:  May 31, 2000                    /s/  HUBERT KOSTER
      --------------                    ------------------------------------
                                        Signature

                                        Hubert Koster

ACCEPTED AND AGREED TO:

                                      5.
<PAGE>

Dated:  June 6, 2000                    Sequenom, Inc.
      ----------------

                                        /s/ HELMUT SCHUHSLER
                                        --------------------------
                                        Helmut Schuhsler
                                        Chairman of the Board

                                      6.
<PAGE>

                                   Exhibit A

To:       Sequenom, Inc.
From:     Hubert Koster
Date:     _____________
Re:       Prior Inventions

________________________________________________________________________________

     1.  The following is a complete list of all inventions or improvements
relevant to the subject matter of my work as a Consultant with the Company that
have been made or conceived or first reduced to practice by me alone or jointly
with others prior to my engagement by the Company:

     [_]  No inventions or improvements.

     [_]  See below:

 .         1.  US Provisional Patent Application Serial No. 60/015,699, filed
April 17, 1996 and PCT/US97/06509, filed April 17, 1997. Title: A Combinatorial
Protecting Group Strategy for Multifunctional Molecules, Inventors: Hubert
Koster and Eckhart Leihkauf. This technology has relevance to the antisense
concept.

          2.  Development of large scale concepts for oligonucleotide synthesis
in solution. Patent to be filed: Title: A Solution Phase Large Scale Process for
the Synthesis of Biomolecules. Inventors: Hubert Koster and Ralf Worl. This
project again has relevance to the antisense concept.

          3.  Development of membrane immobilized enzymes as solid phase
enzymatic reagents. Inventors: Hubert Koster, Frank Barnekow, Claudia Pauk and
Andreas Ruppert.________________________________________________________________

          ______________________________________________________________________

          ______________________________________________________________________

          ______________________________________________________________________

    [_]   Due to confidentiality agreements with a prior employer or entity, I
          cannot disclose certain inventions that would otherwise be included on
          the above-described list.

    [_]   Additional sheets attached.

     2.   I propose to use during my consulting work for the Company the
following devices, materials and documents of a former employer or other person
or entity to whom I have an obligation of confidentiality that are not generally
available to the public, which materials and documents may be used in my
consulting work pursuant to the express written authorization of my former
employer or such other person or entity (a copy of which is attached hereto):

                                      1.
<PAGE>

    [_]   No material.

    [_]   See below:

          ______________________________________________________________________

          ______________________________________________________________________

    [_]   Additional sheets attached.

                                      2.

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