Document:

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                                                                   EXHIBIT 10.27

                    LIFEARRAY(TM) SOFTWARE LICENSE AGREEMENT

                                    Between

                                    diaDexus

                                      and

                          INCYTE PHARMACEUTICALS, INC.

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     This agreement ("Agreement") is entered into as of this ____ day of
________, 1999 (the "Effective Date") by and between diaDexus, a Delaware
Limited Liability Company, having its principle place of business at 3303
Octavius Drive, Santa Clara, CA 95054 ("CUSTOMER") and Incyte Pharmaceuticals
Inc., a Delaware corporation having its principal place of business at 3160
Porter Drive, Palo Alto, CA 94304 ("Incyte").

     WHEREAS, Incyte has developed and owns certain computer software for use
in the processing and analysis of microarray expression data either generated
from Incyte microarrays or from other sources (third party expression data); and

     WHEREAS, CUSTOMER desires to implement selected Incyte database and
software products within a bioinformatics environment at CUSTOMER and CUSTOMER
desires to have Incyte assist with such implementation described herein.

     NOW, THEREFORE, Incyte and CUSTOMER hereby agree as follows:

                                1.0 DEFINITIONS.

When used in this Agreement, the following definitions shall apply:

     1.1 "Access Term": means the period commencing on the Acceptance Date and
     extending up until twelve (12) months (unless terminated earlier as
     provided for in Article 7 (Term; Termination), during which CUSTOMER and
     CUSTOMER Affiliates shall have access to the LifeArray(TM) Product(s)
     pursuant to the terms and conditions of this Agreement. The Access Term may
     be extended for an one (1) additional twelve (12) month period upon written
     request made by CUSTOMER to Incyte to extend the Access Term. Such request
     must be made prior to the expiration of the first twelve (12) month period
     of the Access Term and will be under financial terms as found in Section
     5.1.1 (Access Term Fees).

     1.2 "Acceptance Date": means the date on which diaDexus provides written
     confirmation of acceptance of installation of the LifeArray(TM) Product.

     1.3 "CUSTOMER Affiliate(s)": means any corporation, firm, partnership, or
     other legal entity, which directly or indirectly, is owned or under common
     ownership by CUSTOMER to the extent of which the common stock or other
     equity ownership thereof is One Hundred percent (100%) owned by CUSTOMER;
     provided, however, that where local laws require a minimum percentage of
     local ownership, the status of CUSTOMER Affiliate will be established if
     CUSTOMER directly or indirectly owns or controls the maximum ownership
     percentage that may, under such local laws, be owned or controlled by
     foreign interests.

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1.4 "Incyte Technology": means proprietary know-how and patent rights with
respect to the LifeArray(TM) Product(s) which is owned or controlled by Incyte
and which Incyte has an unrestricted right to license without obligation of
payment to a third party.

1.5 "Installation Site(s)": means the research facilities of CUSTOMER located
at 3303 Octavius Drive, Santa Clara, California, that will have access to the
LifeArray(TM) Product(s) and any alternate or additional sites requested by
CUSTOMER in writing to Incyte during the Access Term in accordance with Section
1.2 (CUSTOMER Affiliate) above and 4.1 (License Grant) below, subject to
appropriate provisions of this Agreement, including Articles 4.0 (Intellectual
Property and License Grants), 5 (Schedule of Payments) and 7.0 (Term;
Termination).

1.6 "Integration Program" means the Integration Project(s) (defined below) and
the Integration Specification (defined below) related thereto, that shall be
undertaken in accordance with this Agreement.

1.7 "Integration Project" means the scope of the Integration Specification for
each individual project(s), as reasonably agreed to and undertaken by CUSTOMER
and Incyte, with respect to the implementation and integration of the LifeArray
Product(s), including such modifications as may be mutually agreed in writing
between the parties, all of which shall be deemed incorporated into this
Agreement as if set forth herein. The Integration Specifications for such
Integration Project(s) shall include:

     (a) mutually agreed written statements of work with specific requirements,
     project report provisions, timetables for development and implementation
     and acceptance criteria; and

     (b) mutually agreed project cost and payment schedules in accordance with
     the provisions of Section 5.3 (Consulting Services);

     (c) mutually agreed maintenance and support services; and

     (d) mutually agreed to exclusivity provisions with regard to items that
     are truly unique and specific to CUSTOMER and not generic in nature.

1.8 "Integration Specifications" means the systems integration specifications
developed by Incyte in cooperation with CUSTOMER, and as the same may be
hereafter supplemented or modified in writing by the parties, on which Incyte
will rely in modifying, adapting or otherwise altering the LifeArray(TM)
Product(s) for installation and implementation at the Installation Site(s).

1.9 "LifeArray(TM) Product(s)": means Incyte's set of proprietary software
modules providing analysis and data-management tools for handling complex array

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information from multiple sources, together with related software and
documentation including all additions, enhancements and modifications by
Incyte, all of which are made available by Incyte in object code format on a
non-exclusive basis to CUSTOMER and CUSTOMER Affiliates.

1.10 "Party": means CUSTOMER or Incyte and, when used in the plural, shall mean
CUSTOMER and Incyte.

1.11 "Research Field of Use": means all research and development applications
of the LifeArray(TM) Product(s) that are internal to CUSTOMER and CUSTOMER
Affiliates in compliance with Section 3.3.5 (Modifications) and/or Article 7.0
(Term; Termination). The Research Field of Use does not include the right to
sell the LifeArray(TM) Product(s), including Modifications, or the sale or
license of data analysis services, or the use of LifeArray(TM) Product(s) or
Modifications to develop commercial database products or services.

1.12 "Software": as generally used herein, means software in various stages of
development or any product thereof and includes without limitation the literal
elements of a program (source code, object code, manuals, instructions or
otherwise), its audiovisual components (menus, screens, structure and
organization), any human or machine readable form of the program, and any
writing or medium in which the program or information therein is stored,
written or described, including without limitation, diagrams, flow charts,
designs, drawings, specifications, models, data, development tools and
routines, bug reports and customer information.

1.13 "Other Definitions": The following terms shall have the meanings assigned
in the corresponding sections or subsections below:

"Confidential Information"         6.1
"Escrow Agent"                     7.6
"Escrow Agreement"                 7.6
"Escrowed Source Code"             7.6
"Integration Team"                 2.2.1
"Modifications"                    3.3.5
"Notice"                           10.8

1.14 "Year 2000 Compliant": means:

     (a) the product performs in a consistent manner and functions without
     interruptions regardless of the date in time on which the product is
     delivered, used and/or further distributed, whether before, on or after
     January 1, 2000 and whether or not the dates are affected by leap years;

     (b) the product, if computerized, accepts, calculates, compares, sorts,
     extracts, sequences and otherwise processes date inputs and date values,
     and returns and

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     displays date values and performs, in a consistent manner regardless of the
     dates used, whether before, on or after January 1, 2000;

     (c) the product, if computerized, accepts and responds to two-digit
     year-date input in a manner that resolves any ambiguities as to the
     century in a defined, predetermined and appropriate manner;

     (d) the product, if computerized, stores and displays data information in
     ways that are unambiguous as to the determination of the century;

     (e) the product will be delivered and the services will be scheduled and
     performed in a timely manner without interruptions caused by the date in
     time on which the product is ordered or is actually delivered or the
     services are scheduled or actually performed under normal procedures in
     the ordinary course, whether before, on or after January 1, 2000;

     (f) Incyte is now planning and taking action to implement, and will
     continue to implement, in a commercially reasonable manner, any and all
     measures to continue to perform this Agreement according to its terms and
     otherwise to meet the needs of its relationship with CUSTOMER, with
     respect to Year 2000 Compliance of the LifeArray(TM) Product(s), including
     without limitation those required for due performance and continued
     performance without impairment due to interruption and/or disruption of
     estimates, performance schedules, orders, confirmations, manufacture and
     delivery of conforming products and/or services in a timely and efficient
     manner to fulfill CUSTOMER's requirements and to enable CUSTOMER to deal
     with its own business and its clients' needs and contract requirements, as
     well as to invoice CUSTOMER and credit its payments in a timely and
     accurate manner;

     (g) Incyte will promptly provide to CUSTOMER, in response to CUSTOMER's
     periodic requests for updates, information concerning Incyte's Year 2000
     compliance program to the extent it affects performance of this Agreement
     itself according to the terms hereof or affects the performance of the
     product and/or services that are the subject matter of this Agreement and
     might impair its supplier-customer relationship with CUSTOMER.

     (h) CUSTOMER may cancel, refuse to order and/or take delivery, reject
     and/or return non-complying goods and/or services and receive a full
     refund or credit against invoices, as applicable.

     (i) Incyte agrees to hold CUSTOMER harmless against any liability,
     judgment, damages, loss or expense, including without limitation
     reasonable counsel fees, resulting from Incyte's failure to meet the
     requirements of any of the foregoing provisions.

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     (j)  In no event shall delays and failures caused by failures of Incyte,
     its products or services to be fully Year 2000 Compliant constitute a force
     majeure event or excuse Incyte from timely performance of its obligations.

                     2.0 INSTALLATION; SYSTEMS INTEGRATION

2.1  Installation. At a date and time mutually acceptable to the Parties, Incyte
     agrees to provide CUSTOMER with on-site access to LifeArray[TM] Product(s)
     at the Installation Site.

2.2  Integration Program. As required or desired, Incyte and CUSTOMER shall
     reasonably agree upon the scope of the Integration Program to be undertaken
     by Incyte with respect to the implementation and integration of the
     LifeArray[TM] Product(s).

     2.2.1     Integration Team. CUSTOMER and Incyte shall each designate
     respective employees to work on the development of the Integration
     Specifications and the Integration Project(s) (the "Integration Team").
     Furthermore:

               (a)  CUSTOMER and Incyte shall cause their respective Integration
               Teams to (i) consult with one another regularly by telephone,
               electronic mail and any other reasonable remote means, and (ii)
               make themselves available at mutually convenient times for in
               person consultation, as reasonably required by the needs of the
               project. In conjunction with the Integration Project(s), Incyte
               and CUSTOMER may utilize those employees, contractors,
               consultants and affiliates as deemed reasonably appropriate,
               provided that each is made aware of and subject to the terms and
               conditions of this Agreement. Except as agreed in Section 5.3
               (Consulting Services), Incyte and CUSTOMER shall each be
               responsible for its own out-of-pocket expenses incurred by it or
               its respective personnel in connection with the Integration
               Project(s).

               (b)  The parties acknowledge that the success of this
               collaboration depends upon, among other things, full, frank and
               timely disclosures and communications between the parties
               regarding their respective efforts. Incyte and CUSTOMER will each
               respectively use reasonable efforts to provide the other in a
               prompt, clear and concise manner, all information that each Party
               generates or develops pursuant to its obligations hereunder.

               (c)  In the event the joint Integration Team is unable to reach
               agreement upon any decision within its area of responsibility,
               Incyte and CUSTOMER agree that such decision shall be presented
               to the president (or chief operating officer

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               (COO) if there is no president) of each company for consideration
               and resolution. If an issue remains unresolved after
               consideration by the president (or COO if no president) of each
               company, such issue shall be resolved in the manner described in
               Section 7.5 (Dispute Resolution Procedures).

     2.2.2     Management of Changes.

               (a) CUSTOMER acknowledges that Incyte's performance is dependent
               in part on CUSTOMER's actions. Accordingly, CUSTOMER will use
               reasonable efforts to provide Incyte with such cooperation and
               assistance of CUSTOMER as Incyte may reasonably request to
               facilitate implementation of the Integration Project(s).

               (b)  If a Party proposes a change to previously agreed
               Integration Specifications with respect to a given Integration
               Project, the other Party will reasonably consider the proposed
               change. However, any change authorization must be in writing and
               must be signed by both parties to authorize implementation of any
               such changes. In addition, if any such change would substantially
               affect the economics of Incyte's performance, then: i) any dates
               or time periods relevant to performance by Incyte hereunder,
               shall be appropriately and equitably extended to account for any
               delays resulting from such changes, and ii) the parties will
               negotiate in good faith with respect to appropriate compensation
               to Incyte in accordance with a reasonable proposal from Incyte
               with respect to such changes.

     2.2.3     Acceptance. After the Integration Project(s) have been received,
     examined and/or tested by CUSTOMER and demonstrated to perform in
     accordance with mutually agreed acceptance criteria, then CUSTOMER will
     provide prompt written confirmation of acceptance of the Integration
     Project(s) to Incyte and forwards to Incyte any payments due in accordance
     with Article 5.0 (Schedule of Payments).

2.3  Support Services. During the term of the Access Term and subject to the
payment terms of Section 5.1 (License Payment) and 5.2 (License Fees), Incyte
agrees to provide support services to CUSTOMER and CUSTOMER Affiliates with
respect to LifeArray(TM) Product(s) as described below at no additional cost,
Incyte agrees to provide CUSTOMER with a full set of documentation for the
LifeArray(TM) Product(s), including a complete description of LifeArray(TM)
Product(s) logic and program schematics;

     (a)  at no additional cost, with respect to support of the LifeArray(TM)
          Product(s) as installed, Incyte agrees to furnish reasonable
          assistance to CUSTOMER and CUSTOMER Affiliates in the installation and
          achievement of routine operation of the LifeArray(TM) Product(s) (and
          updates and modifications thereof) at the Installation Site(s),
          including reasonable, support, problem determination and

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          resolution service by telephone and electronic mail during each
          business day of the calendar year;

     (b)  at not additional cost, Incyte will reasonably maintain and support
          the LifeArray(TM) Product(s) with respect to current releases of
          applicable operating systems, database management systems, and any
          applicable third party current vendor supported software programs,
          including without limitation the software programs referenced in
          Section 4.3 (Third Party Intellectual Property) below.

     (c)  at no additional cost, Incyte shall also furnish updates and current
          releases of the LifeArray(TM) Product(s), and maintenance and support
          as contemplated herein with respect to such updates and new releases.

     (d)  at CUSTOMER'S written request, maintenance and support of the
          LifeArray(TM) Product(s) as modified under the Integration Program,
          may be provided to CUSTOMER subject to additional terms, conditions
          and fees as reasonably negotiated between the parties and based on
          the modifications, adaptations or other altering of the LifeArray(TM)
          Product(s) consistent with the Integration Programs;

2.4  Training.

     (a)  With respect to operation of the LifeArray(TM) Product(s), after the
     Effective Date and at a time mutually agreeable to Incyte and CUSTOMER,
     Incyte agrees to provide CUSTOMER with two (2) days of training at Incyte's
     Palo Alto, California location.

     (b)  CUSTOMER may designate no more than eight (8) employees, or such
     other number as mutually agreed, from each Installation Site to attend
     training at Incyte with regard to 2.4(a) above.

     (c)  Each Party shall bear the out-of-pocket expenses of its employees.

     (d)  Additional training by Incyte for CUSTOMER may be mutually agreed to
     by the parties. Any additional training shall be at times mutually
     agreeable to the parties and at an additional cost to CUSTOMER (the cost
     to be mutually agreed to between the Parties prior to such training).

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                  3.0 ACCESS RIGHTS, SOFTWARE USE RESTRICTIONS
                      AND SECURITY REQUIREMENTS

3.1  Access Rights.

          (a)  Incyte hereby grants to CUSTOMER and CUSTOMER Affiliates
          non-exclusive access and the right to use the Life Array(TM)
          Product(s) in the Research Field of Use solely for CUSTOMER's and
          CUSTOMER Affiliate's own internal use, by authorized personnel of
          CUSTOMER and CUSTOMER Affiliates, in secure work facilities at the
          Installation Site(s) at CUSTOMERS and CUSTOMER Affiliate(s) locations
          and in accordance with the terms and conditions of this Agreement.
          CUSTOMER and CUSTOMER Affiliates shall have no access to or right to
          use the LifeArray(TM) Product(s) except at an Installation Site under
          the terms and conditions of this Agreement.

          During the Access Term, CUSTOMER shall have the right, at its
          discretion to: (i) designate one or more additional Installation
          Site(s) for the LifeArray(TM) Product(s) subject to the payment terms
          set forth in Sections 5.1 (License Payments) and 5.2 (License Fees);
          and/or (ii) relocate the Installation Site(s) from time to time
          without additional fees or costs (except as set forth in Section 5.3
          (Consulting Services); provided that any such sites are in compliance
          with appropriate provisions of this Agreement, including Articles 3.0
          (Software Use Restrictions and Security Requirements) and 6.0
          (Confidentiality). Any additional implementation or support services
          provided by Incyte with respect to the LifeArray(TM) Product(s) at
          such site(s) shall be in manner consistent with and under terms
          consistent with those of comparable users of the LifeArray(TM)
          Product(s).

3.2  Ownership. CUSTOMER hereby acknowledges that (i) Incyte has expended and
     will expend significant resources and efforts to develop the LifeArray(TM)
     Product(s); (ii) the LifeArray(TM) Product(s) represent highly valuable
     and confidential assets of Incyte; (iii) Incyte is willing to grant
     CUSTOMER and CUSTOMER Affiliates access to the LifeArray(TM) Product(s) in
     reliance that CUSTOMER and CUSTOMER Affiliates shall protect the Software
     from unauthorized disclosure and use; and (iv) except as otherwise
     expressly provided under this Agreement, the LifeArray(TM) Product(s) at
     all times during the term of this Agreement shall remain the sole and
     exclusive property of Incyte.

3.3. Restrictions on Use of Software.

     3.3.1 Designated CPUs. The LifeArray(TM) Product(s) shall only be installed
     at the Installation Site(s) on a single hard disk(s) or the hard disk(s)
     of a designated file server whereby multiple workstation(s) do not contain
     copy(s) of LifeArray(TM) Product(s) installed, other than ephemerally, on
     the workstation hard disk. A back-up

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computer or file server may be designated such that a copy of the LifeArray(TM)
Product(s) may be installed on this computer in the event that the primary
computer fails. Under no circumstances will the LifeArray(TM) Product(s) be
installed on any designated CPU(s) which would allow unauthorized network
access (e.g. third party access via the Internet). All other access to
LifeArray(TM) Product(s), including access by facilities of CUSTOMER or
CUSTOMER Affiliates other than those designated as Installation Sites is
prohibited.

3.3.2  Disclosure. Except as permitted under subsection 3.3.5. (Modifications),
CUSTOMER and CUSTOMER Affiliates shall not disclose Software, related source
code or Confidential Information of Incyte or transfer the LifeArray(TM)
Product(s), or any portion thereof, to any third party.

3.3.3  No Transfer. Except as provided under Section 3.3.5 (Modifications) or as
otherwise agreed by Incyte in writing, CUSTOMER and CUSTOMER Affiliates shall
not sublicense, sell, assign, convey, transfer, publish, display, copy,
duplicate, adapt, merge, embed, disassemble, decompile, translate, reverse
engineer or otherwise modify any portion of the LifeArray(TM) Product(s) (by any
means whatsoever whether now known or hereafter invented) of the LifeArray(TM)
Product(s). Furthermore, CUSTOMER and CUSTOMER Affiliates shall not remove any
product identification, trademark or other notices.

3.3.4  Loss or Theft. CUSTOMER promptly shall notify Incyte of any loss, theft
or unauthorized disclosure or use of LifeArray(TM) Product(s) which comes to
CUSTOMER's attention.

3.3.5  Modifications. Solely for purposes of system integration and/or to
facilitate data analysis and relational analysis, CUSTOMER, CUSTOMER Affiliates,
or consultants may, as set forth below, adapt, reproduce, and modify such
LifeArray(TM) Product(s) and prepare derivative works based on the LifeArray(TM)
Product(s) and may incorporate information that is proprietary to CUSTOMER and
CUSTOMER Affiliates (all the foregoing collectively, "Modifications"). All
Modifications shall only be used solely for CUSTOMER's and CUSTOMER Affiliates'
own internal use by authorized personnel of CUSTOMER and CUSTOMER Affiliates, at
the Installation Site(s) in secure work facilities of CUSTOMER and CUSTOMER
Affiliates pursuant to the terms and conditions of this Agreement. All
Modifications shall be kept in confidence in the same manner as, and shall be
subject to, the same terms and conditions that apply to the LifeArray(TM)
Product(S) licensed to CUSTOMER and CUSTOMER Affiliates herein. Except as
otherwise agreed in writing, Incyte shall have no obligation to support any such
Modifications, nor any ownership interest therein. CUSTOMER and CUSTOMER
Affiliates shall not acquire by reason of this Section 3.3.5 any ownership of
LifeArray(TM) Product(s), any portions thereof or any title or rights therein.
It is further agreed that to the extent CUSTOMER and CUSTOMER Affiliates utilize
consultants for systems integration or data analysis services: i) each such
consultant

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     shall have executed a written agreement which includes customary provisions
     regarding non-use and non-disclosure of confidential information,
     including, in specific, Incyte Confidential Information (such agreement or
     a substantially comparable example thereof having been previously approved
     by Incyte in writing), and ii) such third party shall have no ownership
     interest in, nor, except any right to use, sublicense, sell, assign,
     convey, transfer, disclose, publish, display, copy, duplicate, adapt,
     merge, embed, disassemble, decompile, translate, reverse engineer or
     otherwise modify any portion of the LifeArray(TM) Product(s) or
     Modifications, to or for any other than CUSTOMER or CUSTOMER Affiliates.

                 4.0 INTELLECTUAL PROPERTY AND LICENSE GRANTS.

4.1  License Grant. Incyte hereby grants to CUSTOMER and CUSTOMER Affiliates a
     worldwide, non-exclusive license under Incyte Technology to access and use
     the LifeArray(TM) Product(s) in the Research Field of Use. Except as
     provided below, such license shall be without any right of CUSTOMER and
     CUSTOMER Affiliates to grant sublicenses thereunder to market, license,
     sublicense, manufacture, sell or distribute any LifeArray(TM) Product(s)
     or Modifications thereof, or data analysis services, for the benefit of a
     third party.

4.2  Ownership of LifeArray(TM) Product(s). Subject to the grant of license
     rights to CUSTOMER and CUSTOMER Affiliates hereunder, the LifeArray(TM)
     Product(s), including fully-documented source code and object code
     resulting from the Integration Project(s), created in the course of this
     Agreement, and all proprietary rights, title, and other intellectual
     property rights, including, without limitation, patent, copyright,
     trademark, service mark, trade secret and trade name rights, in and to
     such LifeArray(TM) Product(s) are hereby owned by Incyte. Except as
     expressly provided herein, Incyte shall have the sole right to use, copy,
     modify, adapt, create derivative works from, distribute and have
     distributed, sell, sublicense, license or otherwise dispose of such
     LifeArray(TM) Product(s) and/or any product(s) incorporating such
     LifeArray(TM) Product(s).

4.3  Third Party Intellectual Property. Subject to the warranties made in
     Article 8.0 (Representations and Warranties), the parties acknowledge
     that, in order to access or utilize LifeArray(TM) Product(s), they may
     require licenses under third party patent rights or such other third party
     intellectual property rights, (including by way of example a Silicon
     Graphics of Oracle license), and it is hereby agreed that it shall be each
     Party's responsibility to satisfy itself as to the need for such licenses
     and, if necessary, to obtain such licenses, at such Party's expense.
     Incyte has delivered a true and complete list of third party software
     programs which are required for CUSTOMER to access and utilize the
     LifeArray(TM) Product(s).

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4.4  CUSTOMER Proprietary Data. Any proprietary data of CUSTOMER added to
     LifeArray(R) Products (i.e. non-Incyte data) by CUSTOMER, CUSTOMER
     Affiliate or consultant(s) (as provided for in Section 3.3.5
     (Modifications), above) shall remain the sole property of CUSTOMER and
     Incyte shall have no ownership rights to data.

                           5.0 SCHEDULE OF PAYMENTS.

5.1  License Fees: During the Access Term and for each additional Installation
     Site, yearly license fees with respect to the LifeArray(TM) Product(s)
     shall be payable by CUSTOMER on the following schedule:

     5.1.1 Access Term Fees. During the Access Term, CUSTOMER shall pay to
     Incyte yearly license fees of seventy-five thousand dollars (US$75,000) per
     year. The first payment of seventy five thousand dollars (US$75,000) shall
     be due and payable within thirty (30) days of the Effective Date. In the
     event CUSTOMER has extended the Access Term, the second payment of seventy
     five thousand dollars (US$75,000) shall be due and payable on or before the
     first anniversary of the Effective Date.

     5.1.2 Additional Installation Site. With respect to the designation of an
     additional Installation Site, after payment for that additional
     Installation Site of the License Payment specified in Section 5.1 (License
     Payment), the corresponding yearly Access Term Fees for such additional
     Installation Site shall be prorated for the remainder of such year of the
     Access Term.

5.2  Consulting Services. At CUSTOMER'S written request, the following
     consulting services may be provided to CUSTOMER by Incyte at the additional
     fees provided for below:

          (a) With respect to consulting services in excess of the time
          necessary for installation of LifeArray(TM) Product(s) or the
          Integration Project(s) as set forth in Sections 2.1 (Installation) and
          2.2 (Integration Program), CUSTOMER shall pay Incyte on a time and
          materials basis at a rate of $2,000 per-person-day plus expenses.

          (b) Payments shall be due in arrears within thirty (30) days receipt
          of invoice from Incyte in reasonably detailed form. All other expenses
          incurred by CUSTOMER or Incyte or their respective personnel in
          connection with Integration Project shall be the responsibility of
          each respective Party.

          (c) Incyte agrees to keep records of its costs associated with the
          consulting services performed by Incyte in sufficient detail to permit
          CUSTOMER to confirm the accuracy of Incyte's time and materials
          calculations. At the request and the expense of CUSTOMER (but no more
          than once a year), upon at least five (5) business days prior written
          notice to Incyte, Incyte shall permit a

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        nationally recognized, independent, certified public accountant
        appointed by CUSTOMER and reasonably acceptable to Incyte, to examine
        such records solely to the extent necessary to verify the amount of
        payments due to Incyte hereunder, provided that such accountant has
        entered into a confidentiality agreement with Incyte substantially
        similar to the confidentiality provisions of this agreement, limiting
        the use and disclosure of such information to purposes germane hereto.
        Such accountant shall solely disclose to CUSTOMER whether or not an
        accounting discrepancy was found and the extent of such discrepancy,
        however, the results of any such examination shall be made available to
        both parties. If the examination reveals an overpayment by CUSTOMER to
        Incyte of project costs, then the amount of such overpayment will be
        refunded to CUSTOMER by Incyte. If the examination reveals an
        underpayment by CUSTOMER to Incyte of project costs, then the amount of
        such underpayment shall be paid by CUSTOMER to Incyte. Any refund or
        payment under this Section 5.3(c), shall be made to the appropriate
        Party within thirty (30) days of the date CUSTOMER delivers to Incyte
        such accountant's written report.

5.3  Payments and Taxes.

        (a) Unless otherwise provided for in this Agreement, CUSTOMER agrees to
        submit payments for services and materials provided by Incyte within
        thirty (30) days from receipt of an invoice from Incyte. All payments
        shall be made by check or bank wire transfer in immediately available
        funds to such account as Incyte shall designate before such payment is
        due, free and clear of any taxes, duties, levies, fees or charges.
        CUSTOMER shall pay and indemnify Incyte against any sales, use, value
        added/ad valorum, surtax and personal property taxes, customs, duties,
        registration fees and the like, including penalties and interest, levied
        by any governmental authority, (other than taxes based upon Incyte's net
        income) arising out of this Agreement and the transactions contemplated
        herein, including the costs and responsibility of any withholding taxes
        as below.

        (b) CUSTOMER shall make any withholding payments due on behalf of Incyte
        and shall promptly provide Incyte with written documentation of any such
        payment made on behalf of Incyte. Such written documentation shall be
        sufficiently detailed so as to satisfy any requirements of the United
        States Internal Revenue Service, or foreign government, as applicable,
        related to an application by Incyte for a foreign tax credit or refund
        for such payment to the extent applicable. However, in the case where
        Incyte can apply for and actually receives a credit or refund against
        its tax liability for the withholding payments due on behalf of Incyte
        and made by CUSTOMER, then such credited or refunded withholding payment
        will be reimbursed by Incyte to CUSTOMER. The parties agree to take
        reasonable and lawful steps to minimize the amount of tax to which
        payments to Incyte are subject.

                                       12
<PAGE>   14
               (c) All payments due Incyte under this Agreement may be
               creditable against any balance of the Five Million Dollars
               (US$5,000,000) due Incyte for sequencing and other services.

5.4     Late Payments. Any amounts payable hereunder that are not paid when due,
        shall bear interest to the extent permitted by applicable law, at two
        percentage points over the prime rate of interest as reported by Bank
        of America NT&SA in San Francisco, California, from time to time,
        calculated on the number of days such payment is delinquent.

5.5     Shipping. CUSTOMER shall pay, for its own account, any shipping,
        freight, mailing expenses and the like payable to third parties not
        affiliated with Incyte and arising out of obtaining tangible materials
        under this Agreement and the transactions contemplated herein.

5.6     Miscellaneous Payments. Unless otherwise provided in this Agreement,
        neither Party shall provide services or information to the other on a
        chargeable basis without the prior written agreement of the other
        Party, with regard to such services or information as well as to the
        charges and payment schedules therefor.

                              6.0 CONFIDENTIALITY

6.1     Confidentiality. The Parties acknowledge that during the course of this
        Agreement they will each receive from the other information which is
        proprietary, confidential and of commercial value to the disclosing
        Party. For purposes of this Agreement, "Confidential Information" shall
        mean scientific, technical or business information belonging to the
        disclosing Party, which the disclosing Party marks "Confidential" if
        disclosed in writing, or which the disclosing Party identifies as
        confidential at the time of any visual or oral disclosure and promptly
        confirms in writing to have been confidential. Except to the extent
        expressly authorized by this Agreement, the Parties agree that, for the
        Access Term and for five (5) years thereafter, the receiving Party shall
        keep confidential and shall not publish or otherwise disclose and shall
        not use for any purpose (except those expressly permitted under this
        Agreement) any Confidential Information furnished to it by the other
        Party pursuant to this Agreement, and regardless of the medium on which
        it is provided, including know-how, except to the extent that it can be
        established by the receiving Party by competent proof that such
        information:

               (a) was already known to the receiving Party, other than under
               an obligation of confidentiality, at the time of disclosure by
               the other Party;

                                       13

<PAGE>   15
          (b) was generally known to the public or otherwise part of the public
          domain at the time of its disclosure to the receiving Party;

          (c) became generally available to the public or otherwise part of the
          public domain after its disclosure other than through any act or
          omission of the receiving Party in breach of this Agreement;

          (d) was subsequently lawfully disclosed to the receiving Party by a
          third party having no confidentiality obligations to the disclosing
          Party with respect thereto;

          (e) was independently discovered or developed by the receiving Party
          without the use of the other Party's Confidential Information, and
          such independent discovery or development can be documented by the
          receiving Party's tangible records created at the time of such
          independent development.

6.2  Circumstances for Limited Disclosure. Each Party may disclose the other's
     information to the extent such disclosure is reasonably necessary in (i)
     filing, prosecuting patent applications and maintaining patents, or (ii)
     prosecuting or defending litigation or (iii) complying with applicable
     governmental regulations, including laws and regulations governing the
     testing, approval, manufacture and marketing of foods, drugs, biologicals
     and medical devices; provided, however, that if a Party is required to
     make any disclosure of the other Party's secret or confidential
     information it will give reasonable advance Notice to the other Party of
     such disclosure requirement and will use its reasonable efforts to secure
     confidential treatment of such information required to be disclosed.

6.3  Other Disclosures. Notwithstanding anything to the contrary set forth
     herein, this Article 6.0 (Confidentiality) shall not be construed to allow
     CUSTOMER, CUSTOMER Affiliates, sublicensees, collaborators or consultants
     to publish or disclose the LifeArray(TM) Product(s), including
     Modifications, or substantial portions thereof, or any Incyte software or
     hardware configurations, at any time without the express written consent
     of Incyte.

                             7.0 TERM; TERMINATION.

7.1  Term.

     7.1.1 Termination. This Agreement shall commence as of the Effective Date
     and shall terminate as provided herein.

     7.1.2 Term. Unless sooner terminated pursuant to the terms hereof, the
     terms of this Agreement shall be the term of the Access Term.

                                       14
<PAGE>   16
7.2   Expiration of the Access Term. Upon expiration of the Access Term,
      CUSTOMER, at its election:

            (a)   shall have the option of extending the term of its license to
            the LifeArray(TM) Product(s) and the maintenance and support
            services under Section 2.3 (Support Services), under terms
            demonstrably consistent with and comparable to those secured by
            comparable users of the LifeArray(TM) Product(s) at the time of
            extension; or

            (b)   shall discontinue use of LifeArray(TM) Products(s), and
            remove such LifeArray(TM) Products(s), including Modifications,
            from each Installation Site(s) and promptly return to Incyte, or
            upon Incyte's written instruction destroy, all portions and copies
            of such LifeArray(TM) Products(s), including Modifications.
            Thereafter, CUSTOMER shall have no right to the LifeArray(TM)
            Products(s) or Modifications, including any right to use, copy,
            modify, adapt, create derivative works with respect to same.

7.3   Breach.

            (a)   Failure by either Party to comply with any of the material
            obligations contained in this Agreement shall entitle the other
            Party to give to the Party in default written notice specifying the
            nature of the default and requiring it to make good such default.
            If such default is not cured within ninety (90) days after the
            receipt of such written notice, the notifying Party shall be
            entitled, without prejudice to any of its other rights conferred on
            it by this Agreement and in addition to any other remedies
            available to it by law or in equity, to immediately terminate this
            Agreement by giving written notice to the other Party. The right of
            a Party to terminate this Agreement, as hereinafter provided, shall
            not be affected in any way by its waiver or failure to take action
            with respect to any previous default.

            (b)   Upon the happening of any of the following events there shall
            be deemed to be a breach of the terms of this Agreement and the
            non-breaching Party, at its option, shall have the right to cease
            performance hereunder until such breach is remedied, or to
            terminate this Agreement as provided for above in this Section 7.4
            (Breach):

            (i)   a Party fails to make any payment when due as required by
                  this Agreement; provided, however, that the first occurrence
                  of late payment shall not constitute breach unless not cured
                  within thirty (30) days of notice of such failure by the
                  other Party;

                                       15
<PAGE>   17
          (ii)  the other Party violates or fails to perform any of the other
                material representations, warranties, covenants or agreements
                contained in this Agreement for a period of sixty (60) days
                following its receipt from the other Party of written notice
                specifying such material violation or material failure and
                demanding that it be cured; or

          (iii) the other Party ceases doing business as a going concern; makes
                an assignment for the benefit of creditors; admits in writing
                its inability to pay its debts as they become due; or becomes
                the subject of any other voluntary or involuntary bankruptcy or
                insolvency proceedings.

7.4  Events Upon Termination or Expiration. Upon termination or expiration of
     this Agreement:

          (a) Incyte will be entitled to payment, under the payment terms of
          Article 5.0 (Schedule of Payments), for all authorized services
          rendered to CUSTOMER under Article 2.0 (Installation; Systems
          Integration) that are performed in accordance with the specifications
          therefor prior to the effective date of termination; and

          (b) CUSTOMER will be entitled to a return of any payments made in
          excess of work actually performed by Incyte under Article 2.0
          (Installation;  Systems Integration) in accordance with the
          applicable statement of work, prior to the effective date of
          termination.

          (c) In the event of: i) termination of the Agreement by Incyte for
          breach by CUSTOMER, or ii) upon expiration, then it shall be
          CUSTOMER's obligation at CUSTOMER's expense, to discontinue use of
          LifeArray(TM) Product(s) and any Modifications thereof as provided
          for in Section 7.2 (Expiration of the Access Term).

7.5  Dispute Resolution Procedures. If the parties cannot resolve a dispute
     arising out of or in connection with this Agreement, then either Party
     may, by upon written notice to the other, have such dispute referred to
     their respective officers designated below or their successors, for
     attempted resolution by good faith negotiations within thirty (30) days
     after such notice is received:

               For Incyte:         President

               For CUSTOMER:       President or Chief Operating Officer

                                       16
<PAGE>   18

7.6  Insolvency or Bankruptcy.

          (a) Either Party may, in addition to any other remedies available to
          it by law or in equity, terminate this Agreement (in whole or in part
          as the terminating Party may determine) by written notice to the
          other Party in the event the other Party shall have: i) become
          insolvent or bankrupt, or ii) shall have made an assignment for the
          benefit of its creditors, or iii) there shall have been appointed a
          trustee or receiver of the other Party or for all or a substantial
          part of its property, or iv) any case or proceeding shall have been
          commenced or other action taken by or against the other Party in
          bankruptcy or seeking reorganization, liquidation, dissolution,
          winding-up, arrangement, composition or readjustment of its debts or
          any other relief under any bankruptcy, insolvency, reorganization or
          other similar act or law of any jurisdiction now or hereafter in
          effect.

          (b) Promptly following the Acceptance Date, Incyte shall deposit with
          an independent software source code escrow agent selected by Incyte
          and acceptable to CUSTOMER (the "Escrow Agent") a complete and
          correct copy of the source code for the LifeArray(TM) Product(s)
          provided to CUSTOMER hereunder (the "Escrowed Source Code"), and
          shall enter into an escrow agreement with CUSTOMER and the Escrow
          Agent (the "Escrow Agreement"). The Escrow Agreement shall provide
          that the Escrowed Source Code shall be delivered to CUSTOMER only
          upon the: i) filing by Incyte of a voluntary bankruptcy petition; ii)
          the filing against Incyte of an involuntary bankruptcy petition where
          the same is not withdrawn or vacated within ninety (90) days after
          the filing thereof; iii) failure of Incyte to provided maintenance
          and support services hereunder; or iv) the liquidation or dissolution
          of Incyte. From time to time after the initial escrow deposit, if
          Incyte makes any material modifications, updates or enhancements to
          any of the Escrowed Source Code, Incyte shall deposit with the Escrow
          Agent a copy of such modified, updated or enhanced source code.
          CUSTOMER shall pay all fees and expenses of the Escrow Agent under
          the Escrow Agreement only if any Escrowed Source Code is delivered
          to CUSTOMER pursuant to the Escrow Agreement, and such source code
          shall be subject to all the confidentiality and use restrictions
          contained in this Agreement.

7.7  Accrued Rights Surviving Obligations.

          (a) Termination or expiration of this Agreement for any reason shall
          be without prejudice to any rights that have accrued to the benefit
          of either Party prior to such termination or expiration.

                                       17
<PAGE>   19
          (b)  Upon any termination or expiration of this Agreement, the
          following provisions will not terminate, but will continue in full
          force and effect:

               -    Article 3.0 (Access Rights, Software Use Restrictions and
                    Security Requirements),

               -    Article 4.0 (Intellectual Property and License Grants)

               -    Article 6.0 (Confidentiality),

               -    Article 8.0 (Representations and Warranties),

               -    Article 9.0 (Indemnity),

               -    Article 10.0 (Miscellaneous Provisions),

               -    and any payment obligations pursuant to CUSTOMER's rights
                    under Articles 5.0 (Schedule of Payments) and 6.0
                    (Confidentiality), as of the termination or expiration of
                    this Agreement.

                      8.0 REPRESENTATIONS AND WARRANTIES.

8.1  From Incyte. Incyte represents and warrants to CUSTOMER as follows:

          (a)  Incyte has full corporate power and authority to enter into this
          Agreement and to perform its obligations hereunder. The execution and
          delivery of this Agreement and the consummation of the transactions
          contemplated hereby have been duly authorized by all necessary
          corporate action on the part of Incyte. This Agreement, when duly
          executed and delivered by Incyte, constitutes a valid and binding
          obligation of Incyte, enforceable against it in accordance with its
          terms.

          (b)  the execution, delivery or performance of this Agreement by
          Incyte will not conflict with or result in the breach of any
          agreement to which Incyte is a party, or conflict with or result in
          the breach of any instrument, document, law, regulation, judgment,
          order or decree by which Incyte or its assets are bound.

          (c)  there are no material adverse proceedings, claims or actions
          pending, or to the best of Incyte's knowledge, threatened, relating
          to the Incyte Technology as of the Effective Date of this Agreement
          that would materially interfere with Incyte's performance of its
          obligations under this Agreement. Furthermore, Incyte shall disclose
          to CUSTOMER any material adverse proceedings, claims or action that
          arise and come to the knowledge of Incyte (without undertaking a
          special investigation) relating to Incyte Technology during the
          Access Term, that would materially interfere with Incyte's
          performance of its obligations under this Agreement.

          (d)  Incyte hereby represents and warrants to CUSTOMER that the
          LifeArray(TM) Product(s) provided hereunder will be free from
          material defects in workmanship

                                       18

<PAGE>   20
        and materials and will substantially perform in accordance with the
        specifications therefor.

        (e) the LifeArray(TM) Product(s) will be Year 2000 compliant no later
        than December 31, 1999. Year 2000 Compliant LifeArray(TM) Product(s)
        will be provided to CUSTOMER under this Agreement in a timely and
        efficient manner without interruption and/or disruption and at no
        additional fee or charge of any kind (including any installation,
        freight, or other costs or fees) to CUSTOMER.

8.2  From CUSTOMER. CUSTOMER represents and warrants to Incyte as follows:

        (a) CUSTOMER has full corporate power and authority to enter into this
        Agreement and to perform its obligations hereunder. The execution and
        delivery of this Agreement and the consummation of the transactions
        contemplated hereby have been duly authorized by all necessary corporate
        action on the part of CUSTOMER. This Agreement, when duly executed and
        delivered by CUSTOMER, constitutes a valid and binding obligation of
        CUSTOMER, enforceable against it in accordance with its terms.

        (b) the execution, delivery or performance of this Agreement by CUSTOMER
        will not conflict with or result in the breach of any agreement to which
        CUSTOMER is a party, or conflict with or result in the breach of any
        instrument, document, law, regulation, judgment, order or decree by
        which CUSTOMER or its assets are bound.

8.3  Exclusive Warranty; Limitation of Liability.

        (a) EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, INCYTE DOES NOT MAKE
        ANY AND EXPRESSLY DISCLAIMS ALL WARRANTIES WITH RESPECT TO THE
        LIFEARRAY(TM) PRODUCT(S), WHETHER ORAL OR WRITTEN, EXPRESS OR IMPLIED,
        OR ARISING BY USAGE OR TRADE OR COURSE OF DEALING INCLUDING, WITHOUT
        LIMITATION THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
        PARTICULAR PURPOSE.

        (b) EXCEPT AS EXPLICITLY STATED HEREIN, NEITHER PARTY WILL BE LIABLE FOR
        ECONOMIC, INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL OR EXEMPLARY
        DAMAGES, WHETHER CLAIMED UNDER CONTRACT, TORT OR ANY OTHER LEGAL THEORY
        ARISING FROM SUCH PARTY'S ACTIVITIES UNDER THIS AGREEMENT.

8.4  Compliance with Law. Incyte and CUSTOMER shall comply in all material
     respects with all applicable laws, regulations and guidelines in connection
     with that Party's performance of its obligations and rights pursuant to
     this Agreement. Without limiting

                                       19
<PAGE>   21

     the generality of the foregoing, each Party shall be responsible for
     compliance with all applicable product safety, product testing, product
     labeling, package marking, and product advertising laws and regulations
     with respect to its own activities and products. Furthermore, Incyte and
     CUSTOMER shall each comply with the regulations of the United States and
     any other relevant nation concerning any export or other transfer of
     technology, services, or products.

                                 9.0 INDEMNITY.

9.1  Incyte. Incyte shall indemnify and hold CUSTOMER and its directors,
     officers, employees, agents, representatives and affiliates harmless from
     and against any loss, liability, cost or expense (including, but not
     limited to, reasonable attorneys' fees and costs) arising from: (i) any
     claim, action or demand by any third party alleging that the LifeArray(TM)
     Product(s) or any portion thereof violates any copyright, patent, trade
     secret, intellectual property or other proprietary right of such party, or
     (ii) any breach or nonperformance by Incyte of any of its representations,
     warranties, covenants or agreements under this Agreement; except to the
     extent such loss, liability, cost or expense (including attorney's fees
     and costs) is attributable to: (1) a violation of law, regulation or court
     order by CUSTOMER, (2) a violation of any contractual or fiduciary duty
     (including misappropriation of trade secrets) owed by CUSTOMER to a third
     party, (3) recklessness or intentional misconduct of CUSTOMER, (4) any
     breach of this Agreement or misrepresentation contained herein by
     CUSTOMER, or (5) infringement by CUSTOMER (other than by use of the
     LifeArray(TM) Product(s) or any portion thereof) of any third party's
     patent rights, copyrights or other intellectual property rights.
     Notwithstanding the foregoing, it shall be CUSTOMER's sole responsibility
     to procure, at CUSTOMER's expense, license(s) under third party patent
     rights or such other rights with respect to hardware or database platform
     (e.g. Silicon Graphics or Oracle licenses, as under Section 4.3 (Third
     Party Intellectual Property)).

9.2  CUSTOMER. CUSTOMER shall indemnify and hold Incyte and its directors,
     officers, employees, agents, representatives and affiliates harmless from
     and against any loss, liability, cost or expense (including, but not
     limited to, reasonable attorneys' fees and costs) arising from (i) any
     claim, action or demand by any third party alleging that the CUSTOMER
     Modifications developed and used by CUSTOMER or any portion thereof
     violates any copyright, patent, trade secret, intellectual property or
     other proprietary right of such party, or (ii) any breach or
     nonperformance by CUSTOMER of any of its representations, warranties,
     covenants or agreements under this Agreement; except to the extent such
     loss liability, cost or expense (including attorney's fees and costs) is
     attributable to: (1) a violation of law, regulation or court order by
     Incyte, (2) a violation of any contractual or fiduciary duty (including
     misappropriation of trade secrets) owed by Incyte to a third party, (3)
     recklessness or intentional misconduct of Incyte, (4) any breach of this
     Agreement or

                                       20
<PAGE>   22
          misrepresentation contained herein by Incyte, or (5) infringement by
          Incyte of any third party's patent rights, copyrights or other
          intellectual property rights.

     9.3  Claims. If any claim is made against either Party under Sections
          9.1(i) (Incyte) or 9.2(i) (CUSTOMER), above for which indemnification
          is available hereunder, the indemnifying Party, at its option, shall:

               (a)  defend the other Party against such claim;

               (b)  acquire for the other Party the right to continue using any
               Software or product licensed hereunder that is the subject of
               such claim;

               (c)  replace any Software or product licensed hereunder with
               other Software or product for which there exists no infringement
               claim, which serves materially the same purpose and function as
               the claimed infringing Software or product; or

               (d)  modify the Software or product to make it non-infringing;
               provided, however, that no Party shall have any liability or
               obligation to the other under this Section 9.3 if any such
               infringement claim is based upon or arises out of:

                    (i)   any modification by the indemnified Party of any
                    portion of any Software or data not authorized by the
                    indemnifying Party in writing unless without such
                    modifications the Software would not be infringing;

                    (ii)  the use of any Software or product in violation of the
                    license granted in this Agreement; or

                    (iii) a patent, copyright or other intellectual property
                    right claim in which the indemnified Party or any affiliate
                    thereof has any direct or indirect interest by license or
                    otherwise; or

                    (iv)  use of old Software after receipt or replacement of
                    modified Software under 9.3(c) or (d) above.

     If the indemnifying Party elects 9.3(a) above, the indemnifying Party, at
     its expense, shall have the right to control the defense and settlement of
     any such claim and the indemnified Party shall reasonably cooperate with
     the indemnifying Party in such defense and settlement. If the indemnifying
     Party elects 9.3(c) above, the indemnified Party shall return to the
     indemnifying Party the claimed infringing Software or product, along with
     any copies, duplicates and other manifestations thereof in whatever form.

                                       21
<PAGE>   23
      This Section 9.3 states a Party's entire liability and obligation, and
      the other Party's exclusive remedy for infringement with respect to the
      first Party's software.

                         10.0 MISCELLANEOUS PROVISIONS.

10.1  Force Majeure. Force Majeure shall mean an Act of God, flood, fire,
      explosion, earthquake, strike, lockout, casualty or accident, war, civil
      commotion, act of public enemies, blockage or embargo, or any injunction,
      law, order, proclamation, regulation, ordinance, demand or requirement of
      any government or any subdivision, authority representative thereof, or
      the inability to procure or use materials, labor, equipment,
      transportation or energy sufficient to meet manufacturing needs without
      the necessity of allocation, or any other cause whatsoever, whether
      similar or dissimilar to those enumerated above, which are beyond the
      reasonable control of such Party, which the Party affected has used its
      reasonable best efforts to avoid, and which prevent, restrict or
      interfere with the performance by a Party of its obligations hereunder.
      The Party affected by Force Majeure shall give notice to the other Party
      promptly in writing and whereupon shall be excused from those obligations
      hereunder, to the extent of such prevention, restriction or interference,
      provided that the affected Party shall use its commercially reasonable
      efforts to avoid or remove such cause(s) of non-performance and shall
      continue performance whenever such cause(s) is removed.

10.2  Governing Law. This Agreement shall be governed by and construed in
      accordance with the laws of the State of Delaware, without regard to any
      such laws relating to choice or conflict of laws.

10.3  Entire Agreement. This Agreement and the other agreements executed in
      connection herewith constitute the entire agreement between the parties
      with respect to the subject matter hereof and supersede or incorporate
      all prior or contemporaneous representations, understandings or
      agreements, written or oral, between the parties with respect to such
      subject matter. No waiver, modification or amendment of any provision of
      this Agreement shall be valid or effective unless made in writing and
      signed by a duly authorized officer of each of the parties.

10.4  Headings. The headings and captions used in this Agreement are intended
      for convenience only and shall have no force or effect whatsoever in the
      interpretation of this Agreement.

10.5  Assignment. Neither Party shall assign any of its rights or obligations
      hereunder except: (i) as incident to the merger, consolidation,
      reorganization or acquisition of stock or assets or similar transaction
      affecting all or substantially all of the assets or voting control of the
      assigning Party; (ii) to any directly or indirectly wholly-owned
      affiliate if the assigning Party remains liable and responsible for the
      performance and observance of all of the subsidiary's duties and
      obligations hereunder; (iii) with respect

                                       22
<PAGE>   24
      to either Party as the assignor, as incident to the acquisition or
      transfer of the assets affecting all or substantially all of the assets
      of the business of the Party relating to a given field of use, provided
      that the acquiring entity or transferee continues to fulfill its
      obligations to the other Party hereunder; or (iv) with the consent of the
      other Party, which consent shall not be withheld unreasonably. This
      Agreement shall be binding, upon the successors and permitted assigns of
      the parties and the name of a Party appearing herein shall be deemed to
      include the names of such Party's successor's and permitted assigns to
      the extent necessary to carry out the intent of this Agreement. Any
      assignment not in accordance with the above shall be void. Any assignment
      by CUSTOMER hereunder shall be subject to CUSTOMER's obligations under
      Section 5.4 (Payments and Taxes).

10.6  Counterparts.  This Agreement may be executed in two or more
      counterparts, each of which shall be deemed an original for all purposes.

10.7  Severability.  If any term, clause or provision of this Agreement shall
      be judged invalid for any reason whatsoever by a court of competent
      jurisdiction, such invalidity shall not affect the validity or operation
      of any other term, clause or provision and such invalid term, clause or
      provision shall be deemed to have been deleted from this Agreement.

10.8  Notices.  Any notice, requests, delivery, approval or consent required or
      permitted to be given under this Agreement shall be in writing and shall
      be deemed to have been sufficiently given if delivered in person,
      transmitted by commercial overnight courier, or transmitted by telex
      telegram or telecopy (facsimile, with confirmed receipt) to the Party to
      whom it is directed at its address shown below or such other address as
      such Party shall have last given by notice to the other Party (referred
      to herein as "Notice"). All Notices shall be effective upon receipt.

             If to Incyte, addressed to:        If to CUSTOMER, addressed to:
             Incyte Pharmaceuticals, Inc.       diaDexus, LLC
             3174 Porter Drive                  3303 Octavius Drive
             Palo Alto, CA 94304                Santa Clara, CA 95054
             Attn: Roy Whitfield,               Attn: Patrick Plewman
             Chief Executive Officer            Chief Operating Officer

10.9  Waiver.  The failure of either Party to enforce at any time any of the
      provisions of this Agreement, or the failure to require at any time
      performance by the other Party of any of the provisions of this
      Agreement, shall in no way be construed to be a present or future waiver
      of such provisions, nor in any way affect the validity of either Party to
      enforce each and every such provision thereafter. The express waiver by
      either Party

                                       23
<PAGE>   25
      of any provision of this Agreement shall not constitute a waiver of any
      future obligation to comply with such provision.

10.10 Remedies. All rights and remedies conferred upon either Party under this
      Agreement or by any other instrument or law shall be cumulative and may be
      exercised singularly or cumulatively.

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

10.12 Injunctive Relief. The parties acknowledge that because of the
      confidential and proprietary nature of the Confidential Information,
      neither termination of this Agreement nor an action at law would be an
      adequate remedy for a material breach by either Party of its obligations
      under Article 6.0 (Confidentiality). Accordingly, each Party agrees and
      consents that in the event of such breach, in addition to all other
      remedies which the other Party may have, such other Party shall be
      entitled to seek appropriate equitable relief in addition to whatever
      remedies it might have at law, including injunctive relief, specific
      performance or such other relief as such Party may request to enjoin or
      otherwise restrain any act prohibited hereby without the necessity of
      proof of actual damages, as well as the recovery of all costs and
      expenses, including attorney's fees incurred. Nothing in this Agreement
      shall be construed to prevent or restrict a Party from seeking relief in a
      court of competent jurisdiction to protect, enforce or defend any patent
      rights, copyrights, names, marks, or other proprietary or confidential
      information owned or possessed by, or licensed by or to, a Party.

10.13 Exhibits. Each reference in this Agreement to an Exhibit shall mean a
      Exhibit attached to this Agreement and incorporated into this Agreement by
      such reference.

10.14 No Employment Relationship or Partnership. The parties shall at all times
      be independent contractors and nothing in this Agreement shall be deemed
      to create a partnership or joint venture between the parties. Neither any
      Party nor any of its employees shall have any ability to legally bind the
      other Party with respect to any third party or to incur any obligation or
      liability on behalf of the other Party.

10.15 Public Announcements. Except as may otherwise be required by law or
      regulation, neither Party shall make any public announcement concerning
      this Agreement or the subject matter hereof without first submitting a
      copy of the proposed announcement to the other Party for review. The other
      Party shall have seven (7) business days to consent to the publication of
      such announcement, such consent not to be unreasonably withheld.

10.16 Further Actions. Each Party agrees to execute, acknowledge and deliver
      such further instruments, and to do all such other acts, as may be
      necessary or appropriate in order to carry out the purposes and intent of
      this Agreement.

                                       24

<PAGE>   26
10.17  No Trademark Rights. Except as otherwise provided herein, no right,
       express or implied, is granted by this Agreement to use in any manner the
       names "diaDexus" or "Incyte", or any other trade name or trademark of
       CUSTOMER or Incyte, including, without limitation, "LifeArray(TM)" or
       "LifeSeq(R)", in connection with the performance of this Agreement.

10.18  Attorney's Fees. In any litigation relating to or arising out of this
       Agreement, the prevailing Party shall be entitled to reasonable
       attorneys' fees, including expert witness costs, and all costs of
       proceedings incurred in such litigation, in addition to any other relief
       that may be awarded.

10.19  Affiliate Performance. To the extent that any CUSTOMER affiliate has
       access to any LifeArray(TM) Product(s), has the right to receive any
       other rights or benefits under this Agreement or otherwise is obligated
       to perform any obligations under this Agreement, CUSTOMER shall cause
       such CUSTOMER Affiliate to perform in full, when due, all applicable
       obligations under this Agreement to the same extent as if such affiliate
       were a party to this Agreement; provided, however, that nothing in this
       Section 10.19 shall expand the rights or benefits of CUSTOMER or CUSTOMER
       Affiliates, or the obligations of Incyte, beyond those otherwise
       expressly set forth in this Agreement. CUSTOMER shall guaranty timely
       performance in full by such CUSTOMER Affiliate of all such obligations. A
       breach by such CUSTOMER Affiliate of any such obligation shall constitute
       a breach by CUSTOMER of this Agreement and shall entitle Incyte to
       exercise its rights under Article 7.0 (Term and Termination) above, in
       addition to any other rights and remedies to which Incyte may be
       entitled.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on
their behalves by their respective duly authorized representatives as of the
Effective Date.

CUSTOMER                                  INCYTE PHARMACEUTICALS, INC.

By: /s/ PATRICK PLEWMAN                   By: /s/ ROY WHITFIELD
   ----------------------------              ----------------------------

Title:      C.O.O.                        Title:     C.E.O.
      -------------------------                 -------------------------

                                       25

<PAGE>   27
                                   EXHIBIT A

Attach the LifeArray(TM) Version 2.0 Product Overview

                                       26<PAGE>   1
                                                                   EXHIBIT 10.28

                         INTERCOMPANY SERVICES AGREEMENT

        THIS INTERCOMPANY SERVICES AGREEMENT ("Agreement"), is entered into on
September 2, 1997, to be effective as of the Effective Date (as defined herein),
by and among INCYTE PHARMACEUTICALS, INC., a Delaware corporation ("Incyte"),
SMITHKLINE BEECHAM CORPORATION, a Pennsylvania corporation ("SB") and DIADEXUS,
LLC, a Delaware limited liability company (the "LLC").

                                   RECITALS:

        A. Incyte and SB each own beneficially a substantial portion of the
membership interests in the LLC.

        B. The LLC is a development stage biotechnology company that will be
engaged in the business of discovering, developing, manufacturing and marketing
molecular diagnostic Tests (as defined in that certain Collaboration and License
Agreement by and among Incyte, SB and the LLC of even date herewith), and doing
all things necessary or related to these purposes as may be determined from time
to time by the LLC in accordance with the Operating Agreement governing the LLC.

        C. In connection with the LLC's formation, the parties desire (i) to set
forth the terms and conditions under which the LLC may retain Incyte and/or SB
to perform certain services (the "Services"), and (ii) to establish and maintain
certain other policies and procedures in connection with the LLC.

        NOW, THEREFORE, in consideration of the foregoing and the mutual
agreements, provisions and covenants contained in this Agreement, the parties
hereby agree as follows:

                                   ARTICLE I.

                              PROVISION OF SERVICES

SECTION 1.1. TYPES OF SERVICES

        The LLC hereby engages and retains Incyte and SB to provide any of the
Services set forth below, subject to Section 1.2(b), from time to time as and to
the extent reasonably requested by the LLC and agreed to by the Service Provider
(as defined below) from time to time, upon the terms and conditions hereinafter
set forth:

                (i) executive and administrative;

                (ii) regulatory, including such Services as are necessary or
        useful to assist the LLC in meeting reporting requirements of regulatory
        agencies;

                                       1

<PAGE>   2
                (iii) tax advice and services, including, without limitation,
        assistance in the preparation of federal, state, local and foreign tax
        returns;

                (iv) auditing, accounting, payroll and bookkeeping advice and
        services, including services related to financial reporting and
        assistance in the preparation of financial statements whether or not
        related to the reporting requirements under the federal securities laws;

                (v) financial advice and services, including, without
        limitation, assistance with respect to cash management, treasury and
        risk management;

                (vi) human resources and personnel policies, including, without
        limitation, wage and salary, administrative, employee relations and
        administration of employee insurance plans and other employee benefits
        plans;

                (vii) assistance with marketing projects, consumer studies and
        other information gathering or promotional activities;

                (viii) purchasing services, and assistance in the purchase or
        leasing of equipment and supplies, including where possible and
        acceptable to Incyte and SB making available to the LLC volume purchase
        discount arrangements and group rates for purchasing insurance,
        equipment and other supplies and services;

                (ix) facilities services, including mail, telephone, supply,
        food service and employee services;

                (x) management information, supplemental data processing,
        telecommunications, computer programming and other computer systems
        services; and

                (xi) such other services, advice and assistance as may be
        reasonably requested by the LLC and agreed to by a Service Provider
        from time to time.

SECTION 1.2. PERFORMANCE

        (a) All Services provided by Incyte or SB hereunder shall be performed
only at the request and under the general direction of the LLC and neither
Incyte nor SB shall have any power to act independently on behalf of the LLC in
performing Services hereunder other than as specifically authorized hereunder or
as requested from time to time by the LLC. Neither Incyte, SB, nor the
employees, vendors, agents, affiliates or suppliers of either of them, shall be
deemed to be agents, representatives, employees or servants of the LLC, except
to the extent expressly provided pursuant to the authority granted under this
Agreement.

        (b) Each of Incyte and SB shall have sole discretion as to whether
Incyte or SB, respectively, shall provide any Service requested by the LLC. The
specified Services provided to the LLC at any time by either Incyte or SB and
the specified terms and conditions under which they shall be provided shall be
set forth in a separate schedule to this Agreement, which shall

                                       2

<PAGE>   3
become effective only upon its execution by Incyte or SB (or such other person
or entity designated as a Service Provider pursuant to section 1.2(c)), as the
case may be, and the LLC, or, to the extent agreed by the Service Provider and
the LLC, in a separate agreement, in each case subject to any approval as is
necessary under that certain LLC Operating Agreement by and between SB and
Incyte of even date herewith.

        (c) Any Services provided to the LLC by Incyte or SB, as the case may
be, may be performed by such entity or by such affiliates or agents thereof as
such entity may reasonably determine so long as such entity providing the
Service is obligated to the LLC hereunder (or, if such entity and the LLC so
agree, is obligated to the LLC under a separate agreement). Any entity
performing services for the LLC under this Agreement on behalf of either Incyte
or SB, as the case may be, shall be included in the definition of "Service
Provider," but all such references to Service Provider shall in any event refer
to whichever of Incyte or SB, as the case may be, is obligated to perform such
Services for the LLC.

        (d) A Service Provider shall, in its sole discretion, determine which of
its corporate facilities to be used in rendering a Service and the individuals
who will render such Service.

        (e) Services provided to the LLC hereunder shall be performed by those
employees of the Service Provider who perform comparable services for the
Service Provider in the normal course of their employment. A Service Provider
shall not be obligated to make available any Services to the LLC that the
Service Provider does not perform with respect to its own operations, or if
providing such Service would unreasonably interfere with the performance by any
employee of Services for the Service Provider, or otherwise cause an
unreasonable burden to the Service Provider.

        (f) Nothing herein shall be deemed to restrict the Service Provider or
its directors, officers or employees from engaging in any business other than
that contemplated herein, or from contracting with other parties, including, its
subsidiaries or affiliates, for similar or different services.

SECTION 1.3. COMPENSATION; REIMBURSEMENTS

        The LLC shall pay to the Service Provider, with respect to the Services
performed by the Service Provider hereunder, reasonable compensation to
reimburse it for the costs incurred by the Service Provider in providing
Services to the LLC; the exact amount of such compensation shall be agreed to by
the LLC and the respective Service Provider and set forth in the applicable
schedule hereto (or separate agreement) from time to time. In addition to the
costs of providing the Services, the Service Provider shall be entitled to
reimbursement of the costs of goods or materials purchased on behalf of the LLC
and paid for by the Service Provider. It is not the intention of the parties
that the Service Provider should obtain profit from providing Services to the
LLC under this Agreement.

                                       3

<PAGE>   4
SECTION 1.4. BOOKS AND RECORDS

        The Service Provider shall keep accurate books and records with respect
to the costs and expenses incurred in connection with the Services, and the LLC
and its auditors shall be permitted from time to time upon reasonable notice to
inspect the books and records with respect to such costs and expenses.

                                   ARTICLE II.

                               OTHER COORDINATION

        (a) Incyte and SB, in the sole discretion of Incyte and SB, as the case
may be, may use reasonable efforts to assist the LLC in obtaining the benefits
of any available group pricing or group discounts for the purchase of equipment,
supplies or services (including without limitation insurance) available to
Incyte and SB, as the case may be.

        (b) If a Service Provider provides the LLC with human resources
Services, such Service Provider, if it so elects, may provide the following
health and welfare benefits coverage to the LLC employees on the same terms and
conditions as provided to employees of the Service Provider, but in no event at
a cost to such employees greater than the cost to the Service Provider (except
to the extent of state, regulatory or other factors which cause variance in
premium costs):

                (i) comprehensive health insurance, including medical and dental
        insurance, and covering active and retired employees;

                (ii) life insurance;

                (iii) accidental death or dismemberment;

                (iv) long-term disability insurance; and

                (v) travel accident insurance.

        (c) The LLC shall pay or reimburse the Service Provider for the costs of
any such insurance and health and welfare benefits coverage in accordance with
Section 1.3, provided that such costs shall be no greater than as charged to,
and on substantially the same terms as made available to, internal units of the
Service Provider.

                                       4

<PAGE>   5
                                  ARTICLE III.

                        STANDARD OF CARE; INDEMNIFICATION

SECTION 3.1. STANDARD OF CARE

        (a) Each of Incyte and SB makes no express or implied representations,
warranties, or guarantees relating to the Services or the quality or results of
Services to be performed under this Agreement. For purposes of this Article III,
"Incyte" and "SB" shall be deemed to include any of their respective affiliates
that are Service Providers pursuant to this Agreement.

        (b) Nothing in this Agreement shall require Incyte or SB to provide or
develop additional support or to render any Service which it does not
specifically agree to provide pursuant to the terms hereof, or in a manner or
pursuant to methods different from that provided herein, in a schedule hereto or
a separate agreement contemplated hereby, or, in performing Services hereunder,
to make any change or addition which will require capital expenditures.

        (c) The duties of each of Incyte and SB under this Agreement are subject
to interruption or discontinuance by the Service Provider or the LLC at any time
and from time to time, for force majeure or other causes beyond Incyte's, SB's
or the LLC's control, without incurring liability to any party or any other
person for any loss, damage or expense which may result therefrom.

        (d) Either Incyte or SB, as applicable, will use reasonable efforts to
provide any Services with substantially the same degree of care as it provides
the same Services to its own operations. Neither Incyte nor SB shall be liable
to the LLC or any other person for any loss, damage or expense which may result
therefrom or from Incyte or SB's changing its manner of rendering the Services
if Incyte or SB, as applicable, deems that such change is necessary to
desirable in the conduct of its own operations.

        (e) Neither Incyte, SB, their respective officers and employees, nor any
Service Provider shall be liable to the LLC or any third party, including
governmental agencies, for any claims, damages or expenses relating to the
Services provided pursuant to this Agreement except for willful misconduct, bad
faith or gross negligence in their respective performance of Services hereunder
and the LLC shall have the ultimate responsibility for all Services provided
herein.

        (f) Neither Incyte, SB nor any Service Provider shall be liable to the
LLC for the consequences of any failure or delay to perform any of its
respective obligations under this Agreement other than for damages arising from
either of Incyte or SB's willful misconduct, bad faith or gross negligence;
provided that Incyte, SB or a Service Provider, as the case may be, shall
provide reasonably prompt notice to the LLC of such liability and the reasons
therefor.

SECTION 3.2. INDEMNIFICATION FOR SERVICES

        (a) Each of Incyte and SB will indemnify, defend and hold harmless the
LLC and its directors, officers, employees and agents from and against any and
all claims, actions,

                                       5

<PAGE>   6
proceedings, judgments, expenses, damages and liabilities, including court costs
and reasonable attorneys fees (collectively, "Claims"), arising out of the
indemnifying party's performance, as applicable, of the Services provided by
such party hereunder (including Services provided by other Service Providers
designated by the indemnifying party, as applicable) due to the indemnifying
party's willful misconduct, bad faith or gross negligence.

        (b) The LLC will indemnify, defend and hold harmless each of Incyte and
SB and other Service Providers designated by either of them and their respective
directors, officers, employees and agents from and against any and all Claims
arising out of the indemnified party's performance, as applicable, of the
Services provided by such party hereunder (including Services provided by other
Service Providers designated by the indemnified party, as applicable), other
than Claims due to the indemnified party's willful misconduct, bad faith or
gross negligence.

                                  ARTICLE IV.

                                  MISCELLANEOUS

SECTION 4.1. ASSIGNMENTS.

        This Agreement shall be binding upon and inure to the benefit of the
successors in interest of the respective parties. Neither this Agreement nor any
interest hereunder shall be assignable by any party without the written consent
of the other; provided, however, that either party may assign this Agreement or
any of its rights or obligations hereunder to any affiliate or to any third
party with which it may merge or consolidate, or to which it may transfer all or
substantially all of its assets to which this Agreement relates, without
obtaining the consent of the other party, provided the assigning party remains
liable under this Agreement and that the, third party assignee or surviving
entity assumes in writing all of the assigning party's obligations under this
Agreement.

SECTION 4.2. FURTHER ACTIONS.

        Each party agrees to execute, acknowledge and deliver such further
instruments, and to do all such other acts, as may be necessary or appropriate
in order to carry out the purposes and intent of this Agreement.

SECTION 4.3. SEVERABILITY.

        In the event any one or more of the provisions of this Agreement should
for any reason be held by any court or authority having jurisdiction over this
Agreement (including arbitrators) or any of the parties to be invalid, illegal
or unenforceable, such provision or provisions shall be validly reformed to as
nearly as possible approximate the intent of the parties and, if unreformable,
shall be divisible and deleted in such jurisdiction; elsewhere, this Agreement
shall not be affected so long as the parties are still able to realize the
principal benefits bargained for in this Agreement.

                                       6

<PAGE>   7
SECTION 4.4. CAPTIONS.

        The captions to this Agreement are for convenience only, and are to be
of no force or effect in construing or interpreting any of the provisions of
this Agreement.

SECTION 4.5. APPLICABLE LAW.

        This Agreement shall be governed by and interpreted in accordance with
the laws of the State of California, without reference to the conflicts of law
principles thereof.

SECTION 4.6. NOTICES AND DELIVERIES.

        All notices, requests, demands, consents and other communications given
or required to be given under this Agreement and under the related documents
shall be in writing and delivered to the applicable party at the address
indicated below:

        If to Incyte:   Incyte Pharmaceuticals, Inc.
                        3174 Porter Drive
                        Palo Alto, CA 94304
                        Attention: Chief Executive Officer
                        Tel: (650) 855-0555
                        Fax: (650) 845-4500

        If to SB:       SmithKline Beecham Corporation
                        709 Swedeland Road
                        P.O. Box 1539
                        King of Prussia, PA 19406
                        Attention: John Keller
                        Tel: (610) 270-5973
                        Fax: (610) 270-5964

        With a copy to: SmithKline Beecham Corporation
                        One Franklin Plaza
                        Philadelphia, PA 19406
                        Attention: Don Parman
                        Tel: (215) 751-4000
                        Fax: (215) 751-5349

       If to the LLC:   To be provided by notice to Incyte and SB.

        With a copy to: each of Incyte and SB.

or, as to each party at such other address as shall be designated by such party
in a written notice to the other party complying as to delivery with the terms
of this Section. Any notices shall be in writing, including telegraphic or
facsimile communication, and may be sent by registered or

                                       7

<PAGE>   8
certified mail, return receipt requested, postage prepaid, by fax or by
overnight delivery service. Notice shall be effective upon actual receipt
thereof.

SECTION 4.7. COUNTERPARTS.

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

        IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed as of the date first above written.

                                   INCYTE PHARMACEUTICALS, INC.

                                   By: /s/ RANDAL SCOTT
                                      -------------------------------

                                   Name:
                                        -----------------------------

                                   Title:

                                   SMITHKLINE BEECHAM CORPORATION

                                   By: /s/ GEORGE POSTE
                                      -------------------------------

                                   Name:
                                        -----------------------------

                                   Title:
                                         ----------------------------

                                   DIADEXUS, LLC

                                   By: /s/ PATRICK PLEWMAN
                                      -------------------------------

                                   Name: Patrick Plewman
                                        -----------------------------

                                   Title: VP, Corporate Development
                                         ----------------------------

                                       8

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