Document:

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                                                                    EXHIBIT 10.6

                            CONFIDENTIAL TREATMENT
                            ----------------------

ORCHID BIOSCIENCES, INC. HAS REQUESTED THAT THE MARKED PORTIONS OF THIS DOCUMENT
BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
                             OF 1933, AS AMENDED.

[*]  CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
             EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

                         LICENSE AND OPTION AGREEMENT

     LICENSE AND OPTION AGREEMENT (the "Agreement"), dated as of December 10,
1997 (the "Effective Date"), between SARNOFF CORPORATION, a New Jersey
corporation having its offices at 201 Washington Road, Princeton, New Jersey
08543 ("Sarnoff"), and ORCHID BIOCOMPUTER, INC., a Delaware corporation having
its offices at 201 Washington Road, Princeton, New Jersey 08543 ("Orchid").

     WHEREAS, Sarnoff is (and will be) the owner or licensee of rights in
certain existing and future Intellectual Property and certain Patent Rights
relating thereto.

     WHEREAS, Sarnoff is willing to grant to Orchid and Orchid desires to
acquire from Sarnoff, certain rights under such Intellectual Property and Patent
Rights for the purpose of allowing Orchid to research, develop, manufacture,
market, sell, import, lease and/or deliver, within the Orchid Field, Products
and Services.

     NOW, THEREFORE, in consideration of the mutual covenants set forth herein
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Sarnoff and Orchid, intending to be legally
bound, hereby agree as follows:

1.   Definitions.

     As used herein, capitalized terms shall have the respective meanings set
forth below:

     1.1. "Affiliate" means any corporation, firm, limited liability company,
partnership or other entity which directly or indirectly controls or is
controlled by or is under common control with a party to this Agreement.
"Control" means ownership of, or the ability to vote, directly or through one or
more Affiliates, fifty percent (50%) or more of the shares of stock entitled to
vote for the election of directors, in the case of a corporation, or fifty
percent (50%) or more of the equity interests in the case of any limited
liability company or other type of legal entity, status as a general partner in
any partnership, or any other arrangement whereby a party controls or has the
right to control the board of directors or equivalent governing body of a
corporation or other entity. Notwithstanding the foregoing, Sarnoff and SRI and
companies controlled by Sarnoff and SRI shall not be deemed to be Affiliates of
Orchid, and Orchid shall not be deemed to be an Affiliate of such entities for
purposes of this Agreement.

     1.2  "Ancillary Device" shall mean a detector or other device (but not a
Storage Device or Input/Output Device) that is specifically designed by Sarnoff
to interface with a Chip,
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Storage Device or Input/Output Device to the extent such detector or other
devices are incorporated in Delivered Chips and Instruments. Ancillary Devices
shall not include (without upper or lower limitations as to size or volume), (i)
generic robotic fluid delivery systems, (ii) transport through synthetic or
natural membranes, tubes or capillaries except when part of a Chip or
Input/Output Device, (iii) conventional, non-electrokinetic fluid pumping or
valving technology except when part of a Chip or Input/Output Device and (iv) 3D
microimaging and modeling.

     1.3.  "Chip" shall mean a microfabricated flat structure device in one or
more layers having a plurality of Microchannels or Microchannels and
Microchambers in the form of (A) arrays (containing at least (i) six (6)
Microchambers or (ii) two Circuits, each of which contains at least one Active
Element), or (B) at least one Circuit containing at least three (3) serially
connected Elements, at least one of which is an Active Element, to carry out or
enable synthesis, reactions, assays, analyses or sample preparation by
transporting or retaining aqueous or organic fluids that are solvents,
solutions, mixtures or suspensions, including those containing chemicals,
particles, membranes, membrane fragments, cells, cell components or other
biologically derived substances. "Microchannels" shall mean enclosed channels
having a cross section at least 10 microns by 10 microns and no more than 2
millimeters by 2 millimeters. "Microchambers" shall mean chambers having a
volume of at least 10 picoliters and no more than 10 microliters.

     1.4.  "Circuit" shall mean a combination of at least two (2) Elements.

     1.5.  "Combinatorial Chemistry" shall mean the synthesis of one or more
compounds as part of a process to create compounds or resynthesize known
compounds, where such compounds are to be used in clinical applications or in
the discovery, development, testing or optimization of molecules, materials, or
compounds, or mixtures thereof.

     1.6.  "Confidential Information" shall mean all proprietary confidential
technology disclosed by Sarnoff to Orchid or by Orchid to Sarnoff during the
term of this Agreement. For the purposes of this Agreement, Research Technology
shall be deemed Confidential Information of both Orchid and Sarnoff.

     1.7.  "Covered By" shall mean, with respect to any act, an act that would,
in the absence of a license provided hereunder, constitute an infringement of a
claim of a pending patent application, or a claim of an issued patent which has
not been held invalid or unenforceable by a court of competent jurisdiction in a
decision which is unappealable or the appeal period for which has expired
without an appeal being taken.

     1.8.  "Delivered Chips and Instruments" shall mean Chips and/or related
instruments based on the design of the Chips and related instruments that are
(i) delivered by Sarnoff under a Funded Research Program, (ii) delivered by
Sarnoff to SB under the SB Agreement, or (iii) delivered by Sarnoff to the
Government under NIST Control No. 7ONANB5HlO37 prior to June 30, 1997, or under
DARPA Control No. N66001-96-8630 prior to June 30, 1999.

     1.9  "Dynal Agreements" shall mean the proposed Joint Venture Master
Agreement between Orchid and Dynal, Inc. ("Dynal"), as executed, and the
agreements between Orchid and Dynal entered into pursuant thereto, pertaining to
the creation of a joint venture to combine

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Orchid's chip technology and Dynal's bead technology to create "Cassettes" for
use in the h-vitro Diagnostic Field.

     1.10.  "Elements" shall mean any pump, Microchannel or Microchamber.  An
Element is "Active" if it is a pump or a Microchannel or a Microchamber in which
a chemical or binding reaction or physical separation by fractionation or
differentiation of various constituents within a sample by such parameters as
molecular size, binding affinity, charge or other physical properties occurs.
An Element is "Passive" if it is not Active, including without limitation,
Microchambers or Microchannels for storage, transport, analyses other than by
chemical or binding reaction, or division of a sample into multiple samples or
streams into multiple streams.

     1.11.  "Environmental Testing" shall mean the determination of the presence
or effect of molecular analytes, chemicals, microbes (including, without
limitation, viruses and bacteria), parasites or other harmful elements in the
environment utilizing nucleic acid-based analyses, immunoassays or functional
assays involving cells, cellular components or extra- or intra-cellular
interactions.

     1.12.  "Force Majeure" shall mean any act of God, any accident, explosion,
fire, storm, earthquake, flood, drought, peril of the sea, riot, embargo, war or
foreign, federal, state or municipal order of general application, seizure,
requisition or allocation, any failure or delay of transportation, shortage of
or inability to obtain supplies, equipment, fuel or labor or any other
circumstances or event beyond the reasonable control of the party relying upon
such circumstance or event.

     1.13. "Funded Research Program" shall mean the research or development
activities under a research agreement for an Option Field in which, considering
each Option Field separately, Orchid or its designee reasonably acceptable to
Sarnoff agrees to (a) fund at least $9 million to Sarnoff in research funding
over a period lasting up to three (3) years and a minimum of $3 million for each
year after the first three years with a minimum first year funding of $1.75
million to undertake research or development activities in such Option Field, or
(b) pay an option exercise fee determined by the formula set forth below to
Sarnoff and fund at least $4.5 million to Sarnoff in research funding over a
period lasting up to three years, which shall commence within one year after the
exercise of the Option. The option exercise fee shall be calculated as follows:

      F = ((R - X)/M) times FF

where F = the prorated option exercise fee;

      R = $9 million;

      X = the level of research funding to be provided to Sarnoff over the first
          three years;

      M = $4.5 million; and

      FF= $1 million.

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     1.14.  "Input/Output Device" shall mean fluidic transport, fluid transfer
or fluid connection means which is specifically designed to bring a fluid to a
Chip or Storage Device or remove a fluid from a Chip or a Storage Device.

     1.15.  "Intellectual Property" shall mean proprietary technical or other
information, know-how, data, materials, devices, systems, software, trade
secrets, processes or formulations, and any and all Patent Rights thereon.

     1.16. "In-vitro Diagnostic Field" shall mean the use of a Chip to undertake
any medical or clinical assessment of the health or physical condition of a
human or animal, or the assessment of the condition of a plant, when such
assessment is performed outside the body of the human, animal or plant and
environmental or food testing where testing is for the presence of microbes or
cellular components such as nucleic acids, proteins or toxins. Such assessment
includes, but is not limited to, the testing of body tissue, fluids, or cells;
nucleic acid analysis; immunological analysis; therapy monitoring;
predisposition analysis; viral analysis; microbiological analysis; therapeutic
or abused drug analysis; and chemical analysis of tissue, fluids or cells.
Without limiting the generality of the foregoing, the In-vitro Diagnostic Field
does not include the use of a Chip for the purpose of discovering, developing,
manufacturing, using and selling pharmaceutical products, but does include the
use of Chips for Environmental Testing.

     1.17.  "Licensed Technology" shall mean: (a) Intellectual Property licensed
or developed under the SB Agreement including Intellectual Property funded by
such agreements, but developed prior to August 30, 1995 and listed on Schedule
A; (b) Intellectual Property embodied in the deliverable "Chips" and
"Instruments" as defined in and developed under the SB Agreement; (c)
Intellectual Property (i) developed under NIST Contract No. 7ONANB5H 1037
through June 30, 1997, (ii) developed under DARPA Contract No. N66001-96-8630
through June 30, 1999, and listed on Schedule A and (iii) certain Intellectual
Property claiming technology relating to Chips developed by Sarnoff on or before
August 30, 1995 and listed on Schedule A, (d) Research Technology, (e)
Intellectual Property incorporated in devices or systems as part of a Funded
Research Program and (f) subject to any of Sarnoff's present or future third
party arrangements, Intellectual Property directed to Chips, Storage Devices and
Input/ Output Devices developed by Sarnoff and its wholly-owned subsidiaries
during the Option Period or during the term of any and all Funded Research
Programs at Sarnoff, and/or the research program under the SB Agreement, but
outside such programs and incorporated by Orchid into a Chip or a system
incorporating a Chip during the Option Period, or during the term of any and all
Funded Research Programs at Sarnoff, or the research program under the SB
Agreement and (g) Joint Inventions and Joint Patent Rights as defined in Section
2.6. Specifically excluded from Licensed Technology is the Intellectual Property
developed under DARPA Contract DABT63-95-C-0057 3D entitled "3D Microimaging".
Licensed Technology shall not include rights to general purpose electrical,
electronic, optical, electro-optical, mechanical or electro-mechanical
inventions.

     1.18.  "Life Science Field" means the Orchid Field, the Option Fields and
the use of Chips in the fields of the biological sciences, human healthcare,
animal healthcare or agriculture.

     1.19. "Net Sales" shall mean the amount billed or invoiced on sales of all
Products or Services by Orchid, its Affiliates or sublicensees less: (a) trade,
quantity or cash discounts and non-affiliated brokers' or agents' commissions
actually allowed and taken; (b) amounts repaid or credited by reason of
rejection or return; (c) taxes and duties levied on and/or other governmental
charges made as to production, sale, transportation, importation, delivery or
use and paid by or on behalf of Orchid; and/or (d) shipping and insurance
charges. In the event a Product consists of a system which incorporates
substantial elements which are not Chips, Input/Output Devices, Storage Devices,
Ancillary Devices or other components or software which employ Licensed
Technology licensed to Orchid under Section 2.1 (for example computers or
separate sample preparation devices), Net Sales for such product shall be
determined by multiplying Net Sales for the entire system by a fraction, the
numerator of which is the fair market value of the Chips, Input/Output Devices
or Storage Devices, Ancillary Devices or other components or software which
employ Licensed Technology licensed to Orchid under Section 2.1 in the system
and the denominator of which is the Net Sales for the entire system. Any sales,
leases or transfers between or among Orchid, its Affiliates or sublicensees
shall not be treated as Net Sales unless there is no further sale, lease or
transfer to a third party.

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     1.20.  "Non-Exclusive Licensed Technology" shall mean general purpose
electrical, electronic, optical, electro-optical, mechanical or electro-
mechanical inventions and devices to the extent such inventions and devices are
incorporated in Delivered Chips and Instruments, but not otherwise.

     1.21.  "Option Field(s)" shall mean the use of Chips in:

     (a) Genomics, that is, nucleic acid-based analysis for discovery or
development of human and animal pharmaceuticals or agricultural chemicals to
treat plant diseases and pests and for the discovery of plant genes for the
purpose of modifying plant traits;

     (b) Non-nucleic acid-based and non-cell based analyses for high throughout
screening, that is for discovering and developing human and animal
pharmaceuticals and agricultural chemicals to treat plant diseases and pests;

     (c) Analysis and synthesis Research Products for use in the Life Sciences
and in chemistry and materials research; and

     (d) Cell-based assays for lead discovery, lead optimization and
pharmaceutical development, including assays for drug metabolism,
pharmacokinetics, toxicology and bioavailability.

     1.22.  "Option Period" means that period during which any Option exists as
defined in Section 2.3.

     1.23.  "Orchadyne" means Orchadyne, LLC, the limited liability company
created pursuant to the Dynal Agreements.

     1.24. "Orchid Field" shall mean (a) the use of Chips to carry out
Combinatorial Chemistry for the purpose of discovering human, animal or plant
pharmaceuticals, herbicides or pesticides, (b) the In-vitro Diagnostic Field,
and (c) all Option Fields for which Orchid has exercised its Option hereunder as
provided in Section 2.3 and has an exclusive license.

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     1.25.  "Owned or Controlled" shall mean Intellectual Property which Sarnoff
owns, or under which Sarnoff is licensed and has the right to grant sublicenses
and/or grant immunity from suit. Intellectual Property "Owned or Controlled" as
of a certain date includes Intellectual Property first invented on or prior to
such date, and shall include all related patent applications and patents or
other intellectual property rights issuing thereon, whenever filed or obtained.

     1.26.  "Parties" means Sarnoff and Orchid.

     1.27.  "Partner" shall mean SB, Dynal, Orchadyne or any other Person with
whom Orchid shall have a written research and/or development agreement or other
collaborative arrangement whereby Orchid receives (a) ownership rights or
license rights in products or services based on or resulting from such research
and/or development, (b) royalty payments based on the sales of such products or
services, or (c) supply rights for such products.

     1.28.  "Party" means Sarnoff or Orchid.

     1.29.  "Patent Rights" shall mean rights (including, ,without limitation,
rights as licensee) Owned or Controlled, subject to Section 2.1.6 hereof, by
Sarnoff under (a) issued U.S. and foreign patents, (b) U.S. or foreign patent
applications, including any patent application constituting an equivalent,
counterpart, reissue, extension or continuation of any of the foregoing
applications (including, without limitation, a continuation in part or
divisional application), or (c) any patent issued or issuing upon any of the
foregoing applications.  A list of Patent Rights included in Licensed Technology
as of the date of this Agreement is attached hereto as Schedule A.

     1.30.  "Person" shall mean any individual, partnership, limited liability
company, corporation, firm, association, unincorporated organization, joint
venture, trust or other entity.

     1.31.  "Product" shall mean a Chip or a system incorporating a Chip with or
without Storage Devices, Input/Output Devices or Ancillary Devices developed
using, incorporating, utilizing, manufactured using, based upon, arising out of,
or derived from the Licensed Technology.

     1.32. "Research Products" shall mean standardized instruments or devices
and related consumables designed for sale in the open market in the ordinary
course of business without substantial specialized modification for each
customer and intended to be used in vitro in a research laboratory environment.
Research Products shall not include instruments for diagnostics, clinical,
investigational or therapeutic uses requiring notification to or approval from
any regulatory or governmental body or general purpose devices not related
specifically to the subject of the research (e.g., computers).

     1.33.  "Research Technology" shall mean Intellectual Property developed by
Sarnoff in Funded Research Programs.

     1.34.  "SB Agreement" shall mean the Development and License Agreement
executed by and among Orchid, Sarnoff and SmithKline Beecham PLC/SmithKline
Beecham Corporation as of August 30, 1995, as amended.

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     1.35.  "Services" shall mean the performance of services for a fee
utilizing a Product, but shall not include performance of research or
development services.

     1.36.  "SmithKline Beecham" or "SB" shall mean SmithKline Beecham
PLC/SmithKline Beecham Corporation.

     1.37.  "SRr" shall mean SRI International, a California not for profit
corporation having its principal offices at 333 Ravenswood Avenue, Menlo Park,
CA 94025.

     1.38.  "Storage Device" shall mean a microfabricated flat structure device
containing Microchambers, but not Microchannels or other Elements, that is
either (i) specifically designed for interacting with or connecting to a Chip or
(ii) broadly useful with Chips and other devices or primarily designed to be
interfaced with micropipetting systems. A Storage Device of the type described
in clause (i) is referenced to herein as a Type 1 Storage Device. A Storage
Device described in clause (ii) is referred to herein as a Type 2 Storage
Device.

     1.39.  "Valid Claim" shall mean an unexpired claim of (i) any issued patent
which has not been finally declared invalid or unenforceable by a patent office
or by a court or other body of competent jurisdiction in any unappealed or
unappealable decision and which has not been lost through an interference or
opposition proceeding or (ii) any pending patent application which has not been
finally rejected by a patent office of competent jurisdiction in any unappealed
or unappealable decision and which has not been pending for more than four (4)
years.

2.   Grant of Rights.

     2.1.   Licenses to Orchid.

            2.1.1.  Exclusive Rights. Subject to the terms and conditions of
this Agreement, Sarnoff hereby grants to Orchid an exclusive, worldwide, right
and license under the Licensed Technology, with the right to sublicense, to
develop, have developed, make, have made, use, have used, import, have imported,
offer for sale, sell, have sold or lease, any Products, Storage Devices and/or
Input/Output Devices for Type 1 Storage Devices and Chips and/or to provide any
Services in the Orchid Field, provided, however, that with respect to Type 2
Storage Devices and Input/Output Devices for Type 1 Storage Devices, such
License shall only be exclusive for Licensed Technology described in clauses
(a)-(e) and (g) of Section 1.17 and further provided however with respect to the
exercised Option of the Option Field of Section 1.2 1(c), the license shall be
exclusive for the Life Science Field and non-exclusive for materials and
chemical research. In addition, the license granted under this Section 2.1.1
with regard to Ancillary Devices shall be limited to the designs of the
Ancillary Devices in the Delivered Chips and Instruments and shall include the
right to modify such designs using Orchid or third party Intellectual Property.

            2.1.2.  Non-Exclusive Rights.

                    2.1.2.1  Subject to the terms and conditions of this
Agreement, Sarnoff hereby grants to Orchid a non-exclusive, worldwide, right and
license under the Licensed Technology, with the right to sublicense, to develop,
have developed, make, have made, use,

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have used, import, have imported, offer for sale, sell have sold or lease (a)
any Products, Storage Devices and Input/ Output Devices and provide any Services
(i) in those Option Fields for which Orchid has not exercised its Option
hereunder as provided in Section 2.3, and (ii) which use Chips to carry out
Combinatorial Chemistry for purposes not included in the Orchid Field provided
however that such license under this Section 2.1.2.1 (ii) outside the Life
Science Field shall be limited to use for industrial materials and chemicals and
shall be limited to Licensed Technology under Section 1.1 7(a)-(e) and (g).
However, the license granted under this Section 2.1.2.1 with regard to Ancillary
Devices shall be limited to the designs of the Ancillary Devices in the
Delivered Chips and Instruments and shall include the right to modify such
designs using Orchid or third party Intellectual Property. The licenses granted
pursuant to this Section 2.1.2 shall in no way be deemed to limit the scope of
any exclusive license granted pursuant to Section 2.1.1.

                    2.1.2.2  Subject to the terms and conditions of this
Agreement, Sarnoff hereby grants to Orchid a non-exclusive, worldwide, right and
license under Non-Exclusive Licensed Technology, with the right to sublicense,
to develop, have developed, make, have made, use, have used, import, have
imported, offer for sale, sell, have sold or lease any Products, Storage Devices
and Input/Output Devices and provide any Services (i) in the Orchid Field and in
those Option Fields for which Orchid has not exercised its Option hereunder as
provided in Section 2.3, and (ii) which use Chips to carry out Combinatorial
Chemistry for purposes not included in the Orchid Field to the extent such uses
of Chips is licensed under Section 2.1.2.1.

                    2.1.2.3  Subject to the terms and conditions of this
Agreement, Sarnoff hereby grants to Orchid a non-exclusive, worldwide, right and
license under LicensedTechnology, with the right to sublicense, to develop, have
developed, make, have made, use, have used, import, have imported, offer for
sale, sell, have sold or lease Input/ Output Devices for Type 2 Storage Devices
in the Orchid Field.

            2.1.3.  Bead Handling. Sarnoff and Orchid shall negotiate in good
faith regarding a license upon commercially reasonable, mutually agreeable terms
to develop, have developed, make, have made, use, have used, import, have
imported, offer for sale, sell, have sold or lease any instrument based on the
bead handling technology to be developed by Sarnoff in a program funded by or in
collaboration with Orchid and useful in connection with Chips. The license will
be governed by a separate agreement which will cover the scope of the license,
field of use, statement of work to be performed by Sarnoff, the specifications
and drawings of the bead handling instrument and all other terms. No license is
granted to Orchid for such bead handling instruments by this Agreement.

            2.1.4.  Additional Licenses. In addition to the Options set forth in
Section 2.3, at Orchid's request Sarnoff will negotiate in good faith with
Orchid at any time for the terms and conditions of an exclusive license in one
or more Option Fields which are not the subject of a current or past Funded
Research Program.

            2.1.5.  Restrictions on Licenses. All licenses granted to Orchid
hereunder and all restrictions under Section 2.2. are subject to (a) a non-
exclusive, worldwide, royalty-free license which the U.S. Government may retain
under any Intellectual Property whose development was funded by the U.S.
Government, (b) a worldwide, non-exclusive, royalty-free license to Sarnoff

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and the U.S. Government to permit Sarnoff to engage in research. or .
development contracts or to prepare prototypes for the U.S. Government, and (c)
any rights previously granted to SmithKline Beecham under the SB Agreement.
Notwithstanding anything to the contrary in this Agreement, no licenses are
granted to Orchid under this Agreement to make, have made, use, sell, offer for
sale, lease or import (except as Ancillary Devices otherwise permitted
hereunder) printers, cameras, imaging systems or displays which employ Chips,
and materials for use with any of the foregoing.

            2.1.6.  Third-Party Technology. In the event that Sarnoff has
licensed from a third party any of the Licensed Technology, Sarnoff's license to
Orchid of such Licensed Technology is granted hereby to the extent that, and for
as long as, Sarnoff can provide such rights and subject to any royalty
obligations as hereinafter provided. Orchid shall be provided with timely notice
of the terms of any such license under which such sublicense is granted, and
Orchid may choose to accept or not accept such sublicense. To the extent that
the sale or other action by Orchid or its permitted sublicensees of Products or
Services would give rise to a royalty or other payment obligation by Sarnoff
under any license under which Orchid accepts a sublicense, Orchid shall pay and
require its sublicensees to pay such amount to Sarnoff or directly to the third
party if so requested by Sarnoff.

            2.1.7.  Algorithms.  Except as included in Licensed Technology,
access by Orchid to algorithms for data mining and for informatics is not
included in the licenses granted herein, but may be the subject of a separate
agreement, subject to any Sarnoff agreements with third parties.

            2.1.8.  Tangible Results.  All tangible instruments, devices,
prototypes or components thereof which are produced in Funded Research Programs
at Sarnoff funded by Orchid shall be owned by Orchid and delivered to Orchid no
later than upon completion of the relevant Funded Research Program.  Orchid
shall have the right to use and to reproduce all such instruments, devices,
prototypes or components under the terms of this Agreement.

     2.2.   Restrictions on Sarnoff's Other Businesses. Nothing in this
Agreement shall be interpreted to preclude Sarnoff or any of its subsidiaries or
licensees or sublicensees from engaging in their businesses; provided that
nothing in this Section 2.2 shall limit the exclusive grant to Orchid under
Section 2.1. Notwithstanding the foregoing, during the Option Period and the
duration of any Funded Research Program and for a period of ninety (90) days
after the last to terminate of the Funded Research Programs, Sarnoff and its
wholly-owned subsidiaries shall not:

     (a)    collaborate with or enter into any agreement to provide research
services or grant any license to any commercial third party for (i) designing or
modifying Chips or Input/ Output Devices for Chips for use in the Orchid Field
or any Option Field in which the Option continues to be in effect, (ii)
designing or modifying Type I Storage Devices or Input/ Output Devices for Type
1 Storage Devices that are customized or designed by Sarnoff for use with Chips
in the Orchid Field or any Option Field in which the Option continues to be in
effect, or (iii) designing or modifying Ancillary Devices, whether or not
incorporated in Delivered Chips and Instruments, that are designed or customized
by Sarnoff in collaboration with the third party while Sarnoff itself is in
possession of the third party's Chips as part of a joint effort to design or

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optimize a system that includes Chips for use in the Orchid Field or any Option
Field in which the Option continues to be in effect; or

     (b)    sell products which contain Chips, Type 1 Storage Devices,
Input/Output Devices for Chips or Type 1 Storage Devices to any commercial third
party for use in the Orchid Field or any Option Field in which the Option
continues to be in effect.

The foregoing:

     (w)    shall not prevent Sarnoff or any of its subsidiaries from providing
services related to, or from developing, licensing or selling printers, cameras,
imaging systems or displays including but not limited to those which employ
Chips therein so long as they are not Ancillary Devices exclusively licensed to
Orchid or designed or customized in violation of 2.2(i)(a)(iii);

     (x)    shall not prevent Sarnoff or any of its subsidiaries from providing
services related to, or from developing, licensing or selling (a) Type 2 Storage
Devices, or (b) Ancillary Devices, Type 1 Storage Devices or Input/ Output
Devices for use outside the Orchid Field and any Option Field in which the
Option continues to be in effect or from developing, licensing or selling
products of general applicability which may be useful in the Orchid Field and
the Option Fields in which the Option continues to be in effect as long as such
products are not specifically designed or modified for use with Chips, Type 1
Storage Devices, or Input/ Output Devices for Chips or Type 1 Storage Devices,

     (y)    shall not require Sarnoff to prevent purchasers of such Ancillary
Devices, Storage Devices or Input/ Output Devices from using such Ancillary
Devices, StorageDevices or Input/ Output Devices in the Orchid Field and any
Option Field in which the Option continues to be in effect, and

     (z)    shall not require Sarnoff to prevent parties with whom Sarnoff
collaborates or provides research services or to whom Sarnoff grants any license
from modifying, for use in the Orchid Field or any Option Field in which the
Option remains in effect, products developed or licensed to them by Sarnoff, as
long as Sarnoff or its wholly-owned subsidiaries do not contribute to the
modification.

            2.2.1  Notwithstanding anything to the contrary in this Agreement,
this Agreement shall not be construed as any limitation or restriction on
Sarnoff's dry powder technology or on Sarnoff's right to grant any license to a
third party for its dry powder technology or its ability to apply or employ, or
collaborate with others to apply or employ, its dry powder technology for any
purpose.

     2.3.   Option to Orchid.

     Subject to the terms and conditions of this Agreement, Sarnoff hereby
grants Orchid the exclusive option to include one or more Option Fields in the
Orchid Field and to receive exclusive licenses in such Option Field(s) as
specified in Section 2.1 above (the "Option") as follows:

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            2.3.1.  Option Exercise.  Any Option with respect to an Option Field
hereunder may be exercised by Orchid upon written notice and by timely entering
into an agreement for a Funded Research Program with Sarnoff relating to any
such Option Field during the Term of the Option as set forth below and upon
payment of the consideration as specified in Section 3.2 hereof

            2.3.2.  Term of Option.  The Option(s) set forth in this Section 2.3
shall continue for a period of four (4) years unless extended or sooner
terminated as provided below (the "Option Period"). In order to maintain Options
to all remaining unexercised Option Fields during the Option Period, upon each
anniversary of the Effective Date, Orchid shall be required to have entered into
at least one Funded Research Program agreement in one new Option Field for each
year that has elapsed since the Effective Date. Notwithstanding the foregoing,
in the event Orchid has exercised at least three (3) Options during the Option
Period, then the Option Period for the remaining Option may be extended at
Orchid's sole discretion for up three additional years upon payment of an Option
Extension Fee of $200,000 per remaining Option Field per year.

            2.3.3.  Loss of Option Rights.  Except as otherwise provided above,
if upon any anniversary of the Effective Date, Orchid shall have failed to
exercise at least one Option per year as set forth in Section 2.3.2 above,
Orchid shall lose rights to one of the remaining unexercised Option Fields. For
any two-year period during which Orchid has failed to exercise rights to at
least one Option Field, Orchid shall lose the rights to two of the remaining
unexercised Option Fields. Upon the occurrence of any such event, Orchid shall
have sixty (60) days in which to elect the Option Field or Fields to be removed
from its Option rights hereunder. If Orchid makes no such election, Sarnoff may,
within sixty (60) additional days, elect the Option Field(s) to be removed by
notice to Orchid. For any three-year period during which Orchid has failed to
exercise rights to at least one Option Field, Orchid shall lose the rights to
all of the remaining unexercised Option Fields. Failure by Orchid to comply with
the provisions of Section 3.2 or to fully fund and make payment for a Funded
Research Program in accordance with the agreement executed pursuant to Section
2.3.1 shall give Sarnoff the right to terminate this license in accordance with
the provisions of Section 7.2 for the corresponding Option Field.

            2.3.4.  Extension of Funded Research Programs.  Orchid shall have
the right to extend any Funded Research Program or to fund additional related
research at Sarnoff at Orchid's request upon reasonable terms to be negotiated
in good faith. Such extensions may include funding for the transfer of Licensed
Technology to the Combinatorial Chemistry Field, the In-vitro Diagnostic Field
or any other Option Field for which Orchid has an exclusive license hereunder.

            2.3.5.  Technology Audits.  Upon termination or expiration of each
Funded Research Program, Sarnoff and Orchid shall, within 90 days of such
termination or expiration, meet in good faith to compile a detailed list of all
Licensed Technology invented, or developed during the course of such Funded
Research Program or incorporated in devices or systems as part of such Funded
Research Program. Such list shall be mutually agreed between the parties and
appended to this Agreement as a description of the Licensed Technology
attributable to such Funded Research Program and licensed hereunder as Research
Technology. Sarnoff will provide reasonable assistance to Orchid to transfer all
of such Licensed Technology to Orchid.

                                       11
<PAGE>

     2.4.   No Waiver of Rights.  Notwithstanding any provision of this
Agreement, (a) the failure by Orchid to exercise any Option hereunder shall not
in any way affect any exclusive licenses granted to Orchid herein or any
licenses subsequently granted to Orchid by Sarnoff, and (b) the scope of any
licenses granted to Orchid in the SB Agreement shall not be limited or affected
in any way by this Agreement.

     2.5.   Provision of Services. For the duration of the Option Period, in
order to facilitate agreements with Partners for Funded Research Programs, in
connection with the licenses and rights granted herein to Orchid, Sarnoff agrees
to provide reasonable assistance to Orchid in the area of business development
in the Orchid Field and any available Option Fields as requested by Orchid.

     2.6.   Rights to Jointly Developed Inventions.

            2.6.1.  Joint Inventions Jointly Owned.  All right, title and
interest to any inventions or improvements within or outside the Orchid Field
jointly invented by the Parties prior to or during the term of this Agreement
shall be the joint property of the Parties ("Joint Inventions") unless otherwise
agreed in writing, and any resulting Patent Rights ("Joint Patent Rights") shall
be jointly owned.

            2.6.2.  Restrictions on Licensing Joint Inventions.  Unless
otherwise agreed in writing, without the prior written consent of Sarnoff,
Orchid shall not grant a license or other right to any third party to use or
practice outside the Orchid Field and those Option Fields for which Orchid has
not exercised its Option, any Joint Invention or Joint Patent Right, or to
develop, have developed, make, have made, use, have used, offer to sell, sell,
have sold, import, have imported, lease, or otherwise distribute any products or
deliver any services outside the Orchid Field Covered By Joint Patent Rights.
Unless otherwise agreed in writing, without the prior written consent of Orchid,
Sarnoff shall not grant a license or other right to any third party to use or
practice in the Orchid Field and those Option Fields for which the Orchid Option
has not expired, any Joint Invention or Joint Patent Right, or to develop, have
developed, make, have made, use, have used, offer to sell, sell, have sold,
import, have imported, lease or otherwise distribute any products or deliver any
services, within the Orchid Field Covered By Joint Patent Rights.

            2.6.3   Sarnoff Interest in Joint Inventions.  Sarnoff's interest in
Joint Inventions and Joint Patent Rights shall be deemed to be Licensed
Technology.

     2.7    Grant Back to Sarnoff.  To the extent permitted by present or future
agreements with third parties, Orchid hereby grants to Sarnoff a paid up,
royalty-free, non-exclusive license, with right to sublicense, to all
Intellectual Property relating to Chips, Storage Devices, and Input/ Output
Devices developed by Orchid during the term of the restrictions set forth in
Section 2.2, to develop, have developed, make, have made, use, have used,
import, have imported, offer for sale, sell have sold or lease products and
practice processes outside the Life Science Field. Such license shall survive
the termination or expiration of this Agreement.

                                       12
<PAGE>

3.   Consideration.

     3.1    License Consideration.  In consideration of the licenses and rights
granted herein, Orchid:

     (a)    has previously issued to Sarnoff an aggregate of 79,300 shares of
Common Stock, par value $.001, of Orchid, subject to the terms and conditions
set forth in the Shareholder Common Stock Purchase Agreement dated August 30,
1995 and 670,000 shares of Series A Convertible Preferred Stock, par value
$.001, of Orchid, subject to the terms and conditions set forth in the Series A
Convertible Preferred Stock Purchase Agreement dated August 30, 1995;

     (b)    shall issue to Sarnoff or to Sarnoff's designated employees Eighty
Two Thousand Five Hundred (82,500) shares of Common Stock, par value $.001, of
Orchid and One Hundred Sixty Seven Thousand Five Hundred (167,500) shares of
Series A Convertible Preferred Stock, par value $0.001, of Orchid in
consideration of the license granted hereunder in the In-vitro Diagnostic Field;
and

     (c)    shall pay Sarnoff royalties for Products and Services as set forth
in Section 3.4 and 3.5.

     3.2    Option Consideration.  Upon exercise of an Option with respect to
any Option Field, Orchid shall issue to Sarnoff or its designated employees
33,300 shares of Common Stock, par value $.001, of Orchid and shall issue to
Sarnoff 66,700 shares of Class A Preferred Stock, par value $.001, of Orchid.
Orchid shall also issue to Sarnoff or its designated employees an additional
50,000 shares of Common Stock, par value $.001, of Orchid for each year during
the term of the related Funded Research Program at the end of each funding year.

     3.3    Restrictions and Limits.  All shares of Common Stock or Preferred
Stock issued to Sarnoff pursuant to this Agreement shall contain restrictive
legends as determined by counsel to Orchid to be required under the securities
laws of the United States and the relevant states or any stock subscription
agreement and shall be subject to existing Shareholder Agreements and Charter or
By-Law limitations on transfer.

     3.4    Royalties under Exclusive License.  Except for Products which
incorporate no Licensed Technology other than Developed Technology (as defined
in the SB Agreement), and/or technology developed under the Dynal Agreements or
Services provided using such Products which incorporate no Licensed Technology
other than Developed Technology (as defined in the SB Agreement), and/or
technology developed under the Dynal Agreements, commencing on January 1 of the
calendar year following the date on which the percentage of Orchid stock
represented by the total shares of Series A Convertible Preferred Stock and
Common Stock issued to Sarnoff as set forth in Sections 3.1(a) and (b) and
Section 3.2 (the "Issued Shares"), and regardless of whether or not Sarnoff may
have sold all or a portion of such Issued Shares, drops below 20% of all shares
of capital stock of Orchid then outstanding (calculated by assuming conversion
of all outstanding convertible securities and exercise of all outstanding
warrants) (such January 1 being referred to herein as the "Royalty Commencement
Date"), in consideration of the exclusive licenses granted pursuant to Section
2.1.1 and the non-

                                       13
<PAGE>

exclusive licenses granted pursuant to Section 2.1.2 Orchid shall make payments
to Sarnoff of royalties as follows:

     (a) One and one-half percent (1.5%) of Net Sales by Orchid and its
Affiliates of Products and Services whose discovery, development, testing,
manufacture, use, sale, importation, lease or offer for sale would, but for the
licenses granted hereunder, infringe a Valid Claim of a Patent Right included in
the Licensed Technology which is not a Joint Patent Right and which is
exclusively licensed hereunder, or whose discovery, development, testing,
manufacture, use, sale, importation, lease or offer for sale directly employs or
embodies proprietary Licensed Technology which is not a Joint Invention and
which is exclusively licensed hereunder, provided however that for Products
which incorporate Licensed Technology and either Developed Technology (as
defined in the SB Agreement), or technology developed under the Dynal Agreements
or Services provided using such Products, the royalty rate shall be one percent
(1%) of Net Sales;

     (b) Three fourths of one percent (.75%) of Net Sales by Orchid and its
Affiliates of Products and Services whose discovery, development, testing,
manufacture, use, sale, importation, lease or offer for sale would, but for the
licenses granted hereunder, infringe a Valid Claim of a Joint Patent Right, but
not any other Patent Right, which is included in the Licensed Technology and
which is exclusively licensed hereunder, or whose discovery, development,
testing, manufacture, use, sale, importation, lease or offer for sale directly
employs or embodies only such Licensed Technology which is a Joint Invention and
which is exclusively licensed hereunder;

     (c) for (i) sales by any licensees or sublicensees of Orchid of any such
Products or Services as specified in Section 3.4(a) or (b), and (ii) payments
received by Orchid under a sublicense of exclusive Licensed Technology, Orchid
shall pay Sarnoff ten percent (10%) of any non-refundable amounts received by
Orchid from such licensees or sublicensees, including but not limited to
advanced and minimum royalties, up front and milestone project and licensing
fees (excluding equity investments by licensees or sublicensees and excluding
fees paid to Orchid in any form which are required to be used for research or
other services to be performed by Orchid).

     3.5    Royalties under Non-exclusive License.  In consideration of the non-
exclusive licenses granted pursuant to Section 2.1.2, except for Products which
incorporate no Licensed Technology other than Developed Technology (as defined
in the SB Agreement), and/or technology developed under the Dynal Agreements or
Services provided using such Products which incorporate no Licensed Technology
other than Developed Technology (as defined in the SB Agreement), and/or
technology developed under the Dynal Agreements, Orchid shall make payments to
Sarnoff of royalties without regard to Sarnoff's ownership of Issued Shares as
follows:

     (a) One and one-half percent (1.5%) of Net Sales by Orchid and its
Affiliates of Products and Services whose discovery, development, testing,
manufacture, use, sale, importation, lease or offer for sale would, but for the
licenses granted hereunder, infringe a Valid Claim of a Patent Right included in
the Licensed Technology which is not a Joint Patent Right and which is non-
exclusively licensed hereunder, or whose discovery, development, testing,

                                       14
<PAGE>
manufacture, use, sale, importation, lease or offer for sale directly employs
or embodies proprietary Licensed Technology which is not a Joint Invention and
which is non-exclusively licensed hereunder, provided however that for Products
which incorporate Licensed Technology and either Developed Technology (as
defined in the SB Agreement), or technology developed under the Dynal Agreements
or Services provided using such Products, the royalty rate shall be one percent
(1%) of Net Sales; and

     (b) Three fourths of one percent (.75%) of Net Sales by Orchid and its
Affiliates of Products and Services whose discovery, development, testing,
manufacture, use, sale, importation, lease or offer for sale would, but for the
licenses granted hereunder, infringe a Valid Claim of a Joint Patent Right, but
not any other Patent Right, which is included in the Licensed Technology and
which is non-exclusively licensed hereunder, or whose discovery, development,
testing, manufacture, use, sale, importation, lease or offer for sale directly
employs or embodies only such Licensed Technology which is a Joint Invention and
which is non-exclusively licensed hereunder; and

     (c) for (i) sales by any licensees or sublicensees of Orchid of any such
Products or Services as specified in Section 3.5(a) or (b) and (ii) payments
received by Orchid under a sublicense of non-exclusive Licensed Technology,
Orchid shall pay Sarnoff ten percent (10%) of any non-refundable amounts
received by Orchid from such licensees or sublicensees, including but not
limited to advanced and minimum royalties, up front and milestone project and
licensing fees (excluding equity investments by licensees or sublicensees and
excluding fees paid to Orchid in any form which are required to be used for
research or other services to be performed by Orchid).

     (d) In addition, Orchid shall pay Sarnoff for each Option Field for which
Orchid has a non-exclusive license under Section 2.1.2 on the relevant date the
following minimum royalties for each Option Field: (i) on January 1, 2002,
$50,000 per Option Field, (ii) on January 1, 2003, $100,000 per Option Field,
and (iii) on January 1, 2004 and each subsequent January 1, $200,000 per Option
Field per year. These minimum royalties shall be a credit for royalties to be
paid under Section 3.5(a) on an Option Field-by-Option Field basis for the
calendar year for which the minimum royalty payment is made. For Option Fields
which are exclusively licensed to Orchid, the provisions of Section 3.4 shall
govern and no royalties or fees shall be due pursuant to this Section 3.5. For
Option Fields where Orchid notifies Sarnoff, at least thirty (30) days prior to
the minimum royalty due date, that Orchid does not wish to maintain its non-
exclusive license, no minimum royalty payment shall be due and Orchid shall no
longer have a non-exclusive license for such Option Field.

     3.6  Royalty Reductions. In the event that royalties and fees paid to
Sarnoff pursuant to Section 3.4 or 3.5 shall become a significant factor in the
return realized by Orchid such as to substantially diminish its capability to
respond to competitive pressures in the market, the parties shall mutually agree
on a reasonable reduction in the royalties and fees payable under this Agreement
with respect to the affected Products and Services.  Factors to be considered in
agreeing on the royalty reduction shall include but not be limited to the profit
margin on such

                                       15
<PAGE>

Products and Services and on analogous and/or competitive Products and Services
and prices and expenditures therefor.

     3.7  Royalty Term.  Royalties hereunder shall be payable only until the
expiration of the last to expire of the Patent Rights covering a particular
Product or Service.  Thereafter, Orchid shall have a fully paid up, perpetual
non-exclusive license to all Licensed Technology for such Product or Service.

     3.8  Royalty Reporting Provisions.

     (a)  Orchid agrees to submit to Sarnoff within sixty (60) days after the
calendar quarters ending March 31, June 30, September 30, and December 31 of
each year in which royalties are due hereunder, reports setting forth for the
preceding three (3) month period at least the following information for Orchid,
its Affiliates and sublicensees:

          i)    total billings for Products sold;

          ii)   total billings for all Services provided or sold;

          iii)  deductions applicable to determine the Net Sales thereof;

          iv)   the amount of royalty due thereon; and with each such royalty
                report to pay the amount of royalty due.

     (b)  All such reports shall be maintained in confidence by Sarnoff, except
as required by law.

     (c)  All payments due hereunder shall be payable in United States dollars.
Conversion of foreign currency to U.S. dollars shall be made at the conversion
rate existing in the United States (as reported in The Wall Street Journal) on
the last working day of each royalty period.

     (d)  Any tax paid or required to be withheld by Orchid on account of
royalties payable to Sarnoff under this Agreement shall be deducted from the
amount of royalties otherwise due. Orchid shall secure and send to Sarnoff proof
of any such taxes withheld and paid by Orchid for the benefit of Sarnoff.

     (e)  If governmental regulations prevent remittances from a foreign country
with respect to sales made or fees received in that country, the obligation of
Orchid to pay royalties on such sales and/of fees shall be suspended until such
remittances are permitted. Sarnoff shall have the right, upon giving written
notice to Orchid, to receive payment in such country in local currency.

     3.9  Royalties to Third Parties. In the event Orchid becomes liable to pay
royalties or other amounts to any third party as a result of the sale of any
product or the delivery of any services by Sarnoff or any Affiliate of Sarnoff
under Section 6 of the SB Agreement or otherwise, then Sarnoff shall be liable
for all such royalties or other amounts and shall, at Orchid's option, either
pay such amounts directly to the third party or shall reimburse Orchid for such
royalties or other amounts within thirty (30) days after receipt of an invoice
from Orchid.

                                       16
<PAGE>

     3.10  Royalty Audits. Orchid shall keep complete, true and accurate books
of account and other appropriate records for the purpose of showing the amount
payable to Sarnoff by way of royalty and of cumulative Net Sales and otherwise
showing Orchid's compliance with Section 3 of this Agreement. Said books and the
supporting data and other documentation, including technical information
relevant to the determination of Orchid's obligations hereunder, shall be kept
at Orchid's principal office and maintained for three (3) years following the
end of the calendar year to which they pertain.  Such records, solely to the
extent relevant to the determination of Orchid's obligations under Section 3 of
this Agreement shall be open, upon reasonable notice and at reasonable times
during normal business hours, to the inspection by independent, certified public
accounts (to be selected solely by Sarnoff and reasonably acceptable to Orchid)
at Sarnoff's expense.  However, if a discrepancy of more than five percent (5%)
of royalties due Sarnoff is discovered by the inspection, then the cost of the
inspection shall be performed at Orchid's expense.

4.  Representations and Warranties.

    4.1.  Representations, Warranties and Covenants of Sarnoff. Sarnoff
represents, warrants and covenants to Orchid as follows:

          4.1.1.  Sarnoff is a corporation duly organized, validly existing and
in good standing under the laws of the State of New Jersey with corporate powers
adequate for executing and delivering, and performing its obligations under,
this Agreement;

          4.1.2.  The execution, delivery and performance of this Agreement have
been duly authorized by all necessary corporate action on the part of Sarnoff;

          4.1.3.  This Agreement has been duly executed and delivered by Sarnoff
and is a legal, valid and binding obligation of Sarnoff, enforceable against it
in accordance with its terms;

          4.1.4.  The execution, delivery and performance of this Agreement does
not and will not conflict with or contravene any provision of the charter
documents or bylaws of Sarnoff or any material agreement, document, instrument,
indenture or other obligation of Sarnoff;

          4.1.5.  Sarnoff shall not enter into any agreement, make any
commitment, take any action or fail to take any action that would contravene any
material provision of, or materially derogate or restrict any of the rights and
licenses granted to Orchid under, this Agreement; and

          4.1.6.  Schedule A sets forth a list of all Patent Rights relating to
Licensed Technology Owned or Controlled by Sarnoff as of the Effective Date.  To
the best of Sarnoff's knowledge, all patents listed in Schedule A are valid and
in full force and all applications listed therein as pending have been
prosecuted in good faith as required by law and are in good standing.  To the
best of Sarnoff's knowledge, there has been no infringement by Sarnoff or its
Affiliates with respect to any patent rights of others in the conduct of the
research activities that have resulted in the existing Licensed Technology owned
by Sarnoff.  None of the patents or patent applications listed or described in
Schedule A is involved in any interference or opposition proceeding, and there
has been no written notice received by Sarnoff or any of its Affiliates that any
such proceeding will hereafter be commenced.  Also, included in Schedule A is a
list of all

                                       17
<PAGE>

licenses and license agreements relating to Licensed Technology. To the best of
Sarnoff's knowledge (i) all of the licenses listed or described in Schedule A
are legally valid and binding and in full force and effect, (ii) Sarnoff is not
in default under any such license, and (iii) there are no defaults by any other
party to any such license. None of Sarnoff's rights under any such license will
be impaired by the consummation of the transactions contemplated hereby. Except
for licenses granted under the SB Agreement and except as described in Schedule
A, Sarnoff has not granted any person or entity any right to use any of the
patents or patent applications listed therein in the Orchid Field or the Option
Fields.

           4.1.7.  Sarnoff shall diligently prosecute and maintain all Patent
Rights licensed to Orchid in accordance with the provisions set forth in Section
5.2 and shall not take or fail to take any actions which would impair such
Patent Rights without prior written notice to Orchid as provided in Section
5.2.4.

     4.2.  Representations, Warranties and Covenants of Orchid. Orchid
represents, warrants and covenants to Sarnoff as follows:

          4.2.1.  Orchid is a corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware with corporate powers
adequate for executing and delivering, and performing its obligations under,
this Agreement;

          4.2.2.  The execution, delivery and performance of this Agreement have
been duly authorized by all necessary corporate action on the part of Orchid;

          4.2.3.  This Agreement has been duly executed and delivered by Orchid
and is a legal, valid and binding obligation of Orchid, enforceable against
Orchid in accordance with its terms;

          4.2.4.  The execution, delivery and performance of this Agreement do
not and will not conflict with or contravene any provision of the charter
documents or bylaws of Orchid or any material agreement, document, instrument,
indenture or other obligation of Orchid; and

          4.2.5.  Orchid shall not enter into any agreement, make any
commitment, take any action or fail to take any action that would contravene any
material provisions of, or materially derogate or restrict any of the rights and
licenses granted to, Sarnoff under this Agreement.

5.   Disclosure of Licensed Technology.

     5.1. Documentation and Access.  Upon request by Orchid from time to time,
Sarnoff shall, within a reasonable time thereafter, deliver to Orchid copies of
reasonable documentation describing the Licensed Technology and Sarnoff shall
give access to and use reasonable efforts to keep Orchid apprised of all ongoing
and future Licensed Technology created or acquired by Sarnoff and its Affiliates
and subject to a license or Option to Orchid hereunder. In the event that Orchid
shall have reason to believe that Sarnoff has not complied with the requirements
of this Section 5.1, it shall so notify Sarnoff and Sarnoff shall be given a
reasonable opportunity to cure such non-compliance.

                                       18
<PAGE>

     5.2. Patents.

          5.2.1.  Patent Prosecution.

          Sarnoff shall, by qualified independent patent counsel, prepare, file,
prosecute and maintain patent applications, and maintain and enforce Patent
Rights included in the Licensed Technology in the countries of United States,
Canada, Australia, Europe Patent Office (designating Austria, France, Germany,
Spain, Ireland, Italy, Netherlands, Sweden, Switzerland, United Kingdom), Japan,
and Korea and such other countries as mutually agreed between Orchid and Sarnoff
and shall have all rights to otherwise deal in and to enforce rights associated
with Licensed Technology except as otherwise provided in Section 6.2. Sarnoff
shall provide Orchid with copies of all proposed patent and other applications
and filings and communications and give Orchid the reasonable opportunity to
comment thereon and Sarnoff will consider in good faith any comments provided to
Sarnoff by Orchid prior to filing. Sarnoff agrees to deliver to Orchid copies of
any communications with the applicable patent office, including without
limitation, all office actions and responses, each patent application and
filing, and each registration that issues thereon.

          5.2.2.  Cooperation. Orchid agrees to cause each of its employees and
agents to take all actions and to execute, acknowledge and deliver all
instruments or agreements reasonably requested by Sarnoff, and necessary for the
perfection, maintenance, enforcement or defense of Patent Rights as set forth
above.

          5.2.3. Financing of Costs. Orchid agrees to pay to Sarnoff fifty
percent (50%) of Sarnoff's reasonable out of pocket costs incurred in the
preparation, filing, translation, prosecution, issuance and maintenance of any
such patent applications or patents relating to Licensed Technology except for
Licensed Technology under Section 1.17(f) prepared or filed after the Effective
Date and fifty percent (50%) of the maintenance costs for such Patent Rights
incurred by Sarnoff after the Effective Date, provided that such prosecution is
conducted as set forth in Section 5.2.1 above. If Orchid declines in writing to
pay to Sarnoff its fifty percent (50%) share of the costs of a particular Patent
Right in a particular country, Orchid's license to such Patent Right in such
particular country shall be terminated as of the Due Date. If Orchid fails to
pay to Sarnoff within thirty (30) days from date of receipt of invoice (the "Due
Date"), and such failure continues for a period of 30 days after written notice
to Orchid by Sarnoff of such failure to pay, Orchid's license to such Patent
Right in such particular country shall be terminated as of the Due Date.

          5.2.4.  Election to Discontinue Prosecution.  Sarnoff may, with
respect to the Patent Rights, at any time, in its sole discretion decide that it
desires to discontinue its responsibility for the prosecution or maintenance of
a particular patent application or patent in one or more countries of Patent
Rights which are Licensed Technology under Section 1.17(a), (b), (c), (d), (e)
and (g).  In such event, Sarnoff shall notify Orchid promptly in writing of its
intention to discontinue responsibility for the prosecution or maintenance for
such patent application or patent, and, in any event, shall give such notice at
least sixty (60) days prior to the effective date of such proposed
discontinuance in order to permit Orchid to determine whether it wishes to
assume the responsibility therefor.  Orchid shall have the right and option, but
not the obligation, to assume responsibility for prosecution and maintenance of
such patent or patent

                                       19
<PAGE>

application which Sarnoff desires to discontinue. Orchid shall inform Sarnoff in
writing of its decision to assume responsibility for prosecution and maintenance
of such patent or patent application and Sarnoff shall execute and deliver such
documents and take such actions as are reasonably necessary or appropriate to
effect such assumption and transfer of responsibility in a timely and efficient
manner. In the event Orchid exercises such right, such patent or patent
application shall be assigned to Orchid and removed from operation of this
Agreement; provided that, Sarnoff shall have a royalty free, non-exclusive,
worldwide, right and license under such Licensed Technology with the right to
sublicense, to develop, have developed, make, have made, use, have used, import,
have imported, offer for sale, sell have sold or lease products and practice
processes outside the Orchid Field and the Option Fields so long as the Options
remain in effect and further provided that upon termination of this Agreement,
such patents and patent applications shall be assigned to Sarnoff. However, if
Sarnoff elects to use or sublicense a particular patent in a particular country
assigned by Sarnoff to Orchid under this Section 5.2.4, then Sarnoff shall pay
to Orchid one half of the out of pocket costs expended by Orchid in obtaining
and maintaining the particular patent in the particular country.

     5.3.  Confidential Information.  Any Party receiving or possessing
Confidential Information of the other Party shall use commercially reasonable
efforts to: (i) maintain the confidential and proprietary status of such
Confidential Information; (ii) keep such Confidential Information and each part
thereof within its possession or under its control sufficient to prevent any
activity with respect to the Confidential Information that is not specifically
authorized by this Agreement; (iii) prevent the disclosure of any Confidential
Information to any other Person; and (iv) ensure that such Confidential
Information is used only for those purposes specifically authorized herein;
provided, however, that such restriction shall not apply to any Confidential
Information which is (a) independently developed by the receiving Party without
reference to Confidential Information of the disclosing Party, (b) in the public
domain at the time of its receipt or thereafter becomes part of the public
domain through no fault of the receiving Party, (c) received by the receiving
Party without an obligation of confidentiality from a third party having the
right to disclose such information, (d) released from the restrictions of this
Section 5.3 by the express written consent of the disclosing Party, (e)
disclosed to any actual or prospective permitted assignee, Partner, investor,
licensee, sublicensee or subcontractor of either Sarnoff or Orchid (if such
actual or prospective assignee, Partner, investor, licensee, sublicense or
subcontractor is subject to the provisions of this Section 5.3 or comparable
provisions of other documents), or (f) required by law, statute, rule or court
order to be disclosed (the disclosing party shall, however, use commercially
reasonable efforts to obtain confidential treatment of any such disclosure and
shall notify the other party in writing of the request or requirement as soon as
feasible so that such other party may make timely effort to protect or limit the
conditions of disclosure of its Confidential Information). Without limiting the
generality of the foregoing, Sarnoff and Orchid each shall use its commercially
reasonable efforts to obtain confidentiality agreements from its respective
Partners, investors, licensees, sublicensees, subcontractors employees and
agents, similar in scope to this Section 5.3, to protect the Confidential
Information.

     5.4.  Permitted Disclosures. Notwithstanding the provisions of Section 5.3
hereof, Sarnoff and Orchid may, to the extent necessary, disclose and use
Confidential Information, consistent with the rights of Sarnoff and Orchid
otherwise granted hereunder (a) for the purpose of securing institutional or
government approval to clinically test or market any Product, or (b)

                                       20
<PAGE>

for the purpose of securing patent protection for an invention within the scope
of the Patent Rights. This Agreement and the terms hereof may be disclosed by
either Party only to a third party which executes an agreement requiring such
third party to maintain the confidentiality thereof

6.   Infringement.

     6.1.  Notification of Infringement.  Orchid and Sarnoff each shall notify
the other of any infringement or misappropriation by any Person of any Licensed
Technology rights in the Orchid Field and shall provide the other with the
available evidence, if any, of such infringement.  In such case, the respective
officers of Sarnoff and Orchid shall confer to determine in good faith an
appropriate course of action to enforce the Licensed Technology rights or
otherwise abate the infringement thereof.

     6.2.  Enforcement of Licensed Technology Rights.  If the parties have not
agreed on a course of action pursuant to Section 6.1, then if Orchid determines
that enforcement of the Licensed Technology rights in the Orchid Field is
appropriate, Orchid shall have the right, but not the obligation, at its own
expense, to take appropriate action to enforce such rights; provided, however,
that, if Orchid elects to so act, Sarnoff shall have the right to participate in
the enforcement of such rights by agreeing to bear a percentage of the costs of
such enforcement in such amount as the parties shall determine. All amounts
recovered in any action to enforce rights in Licensed Technology in the Orchid
Field undertaken by Orchid, whether by judgment or settlement, shall be retained
by Orchid after reimbursing the expenses borne by both parties in enforcing such
Licensed Technology rights.  If, within six (6) months after notice of
infringement, Orchid has not commenced action to enforce such rights or
thereafter ceases to diligently pursue such action, Sarnoff shall have the
right, at its expense, to take appropriate action to enforce such rights. Orchid
shall have the right to participate separately in such enforcement. All amounts
recovered in any action to enforce Licensed Technology rights undertaken by
Sarnoff solely at its expense, whether by judgment or settlement, shall be
retained by Sarnoff after reimbursing the expenses borne by both parties in
enforcing such Licensed Technology rights. Sarnoff and Orchid shall fully
cooperate with each other in the planning and execution of any action to enforce
rights. Sarnoff shall not enter into any settlement that includes the grant of a
license under, agreement not to enforce, or any statement prejudicial to the
validity or enforceability of any Licensed Technology in the Orchid Field
without the consent of the Orchid.

     6.3.  Disclaimer of Warranty; Consequential Damages.

           6.3.1.  SARNOFF EXPRESSLY DISCLAIMS ANY WARRANTY, EXPRESS OR IMPLIED,
WITH RESPECT TO THE LICENSED TECHNOLOGY, INCLUDING, W1THOUT LIMITATION, ANY
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

           6.3.2.  NEITHER PARTY TO THIS AGREEMENT SHALL BE ENTITLED TO RECOVER
FROM THE OTHER ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL, MULTIPLE OR PUNITIVE
DAMAGES.

                                       21
<PAGE>

     6.4   Infringement. In the event that an action for patent infringement is
commenced against Orchid and/or its sublicensees, whether severally or jointly,
based on the manufacture, use or sale of any Product or Service in any country,
Orchid may, without limitation: (i) terminate and revert its license hereunder
to such Product or Service in such country, which shall be deemed an abandonment
of such Product or Service in such country, or (ii) defend such action on
behalf, of the appropriate parties at its own expense.

     6.5   Markings. Set forth in Exhibit A is a list of the Patent Rights,
which list shall be updated from time to time by Sarnoff Orchid shall refer to
this list and affix appropriate markings and legends on Products or Services
sold or distributed by or on behalf of Orchid using such Patent Rights.

     6.6   Limitations. Sarnoff makes no representations or warranties that the
rights granted to Orchid pursuant to Section 2.1 hereof may be exercised by
Orchid and its sublicensees without infringing any third party rights in any
country in the world. Sarnoff assumes no responsibility hereunder for the
manufacturing, product specifications, or end-uses of Products or Services by
Orchid or its customers or sublicensees.  No warranties made by Orchid in
connection with its Products or Services shall expressly or implicitly obligate
Sarnoff in any manner.

     6.7   Product Indemnification.  Subject to the provisions of this Section
6.7, Orchid agrees to defend, indemnify and hold harmless Sarnoff from any and
all damages arising from injury or damage to persons or property (including
without limitation, product liability or infringement of any proprietary rights)
resulting directly or indirectly from Orchid's use, development, manufacture,
licensing, marketing, sale or other disposition or any other commercial
exploitation of any Product or Service, except those which result from the gross
negligence or willful misconduct of Sarnoff.  Sarnoff shall promptly notify
Orchid of any claim which is to be indemnified hereunder and Orchid shall have
the sole right to defend, settle or compromise any such action or claim.

     7.    Term and Termination.

     7.1.  Term.  This Agreement shall be effective as of the Effective Date and
shall continue in full force and effect unless terminated by mutual agreement or
as set forth below.

     7.2.  Termination. In the event Orchid fails to make payments due
hereunder, Sarnoff shall have the right to terminate this Agreement upon ninety
(90) days' written notice, unless Orchid makes such payments within the ninety
(90) day notice period or unless any such payment is contested in good faith, in
which event Sarnoff shall not have the right to terminate this Agreement until
the matter is resolved in Sarnoff's favor pursuant to Section 13 hereof and
Orchid still fails to make any such payment for thirty (30) days after such
resolution.

     7.3.  Survival of Sublicenses.  In the event any license granted to Orchid
hereunder terminates for any reason, any sublicenses granted by Orchid under
this Agreement shall continue.

                                       22
<PAGE>

8.   No Implied Waivers; Rights Cumulative.

     The delay or failure of any Party at any time or times to require
performance of any provisions shall in no manner affect the rights at a later
time to enforce the same. No waiver by any Party of any condition or of the
breach of any term contained in this Agreement, whether by conduct, or
otherwise, in any one or more instances, shall be deemed to be, or considered
as, a further or continuing waiver of any such condition or of the breach of
such term or any other term of this Agreement.

9.   Force Majeure.

     Sarnoff and Orchid shall each be excused for any failure or delay in
performing any of its respective obligations under this Agreement, if such
failure or delay is caused by Force Majeure.

10.  Notices.

     All notices, requests and other communications to Sarnoff or Orchid
hereunder shall be in writing (including telecopy or similar electronic
transmissions), shall refer specifically to this Agreement and shall be
personally delivered, by registered mail or certified mail, return receipt
requested, postage prepaid or by reliable overnight courier service providing
evidence of receipt, in each case to the respective address specified below (or
to such address as may be specified in writing to the other party hereto):

     Sarnoff Corporation
     201 Washington Road
     Princeton, NJ 08543
     Attn:  Vice President, IP and Licensing

     With a copy to:

     Allen Bloom, Ph.D., Esq.
     Dechert Price & Rhoads
     Princeton Pike Corporate Center
     Princeton, NJ 08543-5218

     Orchid Biocomputer, Inc.
     201 Washington Road
     Princeton, NJ 08543
     Attn:  President

     With a copy to:

     Jeffrey M. Wiesen, Esq.
     Mintz, Levin, Cohn, Ferris,
     Glovsky and Popeo, P.C.
     One Financial Center
     Boston, MA 02111

                                       23
<PAGE>

     Any notice or communication given in conformity with this Section 12 shall
be deemed to be effective: (i) when received by the addressee, if delivered by
hand; (ii) three (3) days after mailing, if mailed; and (iii) one (1) business
day after delivery to a reliable overnight courier service providing evidence of
receipt.

11.  Successors and Assigns.

     The terms and provisions of this Agreement shall inure to the benefit of,
and be binding upon, Sarnoff, Orchid, and their respective successors and
assigns.

12.  Amendments.

     No amendment, modification, waiver, termination or discharge of any
provision of this Agreement, nor any consent to any departure by Sarnoff or
Orchid therefrom, shall in any event be effective unless the same shall be in
writing specifically identifying this Agreement and the provision intended to be
amended, modified, waived, terminated or discharged and signed by Sarnoff and
Orchid, and each such amendment, modification, waiver, termination or discharge
shall be effective only in the specific instance and for the specific purpose
for which given.  No provision of this Agreement shall be varied, contradicted
or explained by any oral agreement, course of dealing or performance or any
other matter not set forth in an agreement in writing and signed by Sarnoff and
Orchid.

13.  Arbitration

     13.1.  The Parties shall attempt to resolve any dispute or controversy
arising under or relating to the interpretation or meaning of this Agreement by
good faith negotiations. Any matter that cannot be resolved by such good faith
negotiation shall be resolved by final and binding arbitration conducted by
three (3) arbitrators in Princeton, New Jersey, in accordance with the then-
current American Arbitration Association ("AAA") Commercial Arbitration Rules
(the "AAA Rules") as modified by this Section 13.

     13.2.  The arbitrators shall be selected by mutual agreement of the parties
or, failing such agreement, in accordance with the aforesaid AAA Rules.  At
least one (1) of the arbitration panel shall be reasonably familiar with the
industry in which Orchid operates.  The parties shall bear the costs of the
arbitrators equally.

     13.3.  The parties shall have the right of limited pre-hearing discovery,
in accordance with the U.S. Federal Rules of Civil Procedure, as then in effect,
for a period not to exceed sixty (60) days.

     13.4.  As soon as the discovery is concluded, but in any event with thirty
(30) days thereafter, the arbitrators shall hold a hearing in accordance with
the AAA Rules.  Thereafter, the arbitrators shall promptly render a written
decision, together with a written opinion setting forth in reasonable detail the
grounds for such a decision.

     13.5.  Judgment may be entered in any court of competent jurisdiction to
enforce the award entered by the arbitrator.

                                       24
<PAGE>

     13.6.  The duty of the parties to arbitrate any dispute hereunder shall
survive expiration or termination of this Agreement for any reason.

14.  Governing Law.

     This Agreement shall be governed by and construed in accordance with the
laws of the State of New Jersey.

15.  Severability.

     If any provision hereof should be held invalid, illegal or unenforceable in
any respect in any jurisdiction, then, to the fullest extent permitted by law,
(a) all other provisions hereof shall remain in full force and effect in such
jurisdiction and shall be liberally construed in order to carry out the
intentions of the parties hereto as nearly as may be possible and (b) such
invalidity, illegality or unenforceability shall not affect the validity,
legality or enforceability of such provision in any other jurisdiction. To the
extent permitted by applicable law, Sarnoff and Orchid hereby waive any
provision of law that would render any provision hereof prohibited or
unenforceable in any respect.

16.  Headings.

     Headings used herein are for convenience only and shall not in any way
affect the construction of, or be taken into consideration in interpreting, this
Agreement.

17.  Execution in Counterparts.

     This Agreement may be executed in any number of counterparts, each of which
counterparts, when so executed and delivered, shall be deemed to be an original,
and all of which counterparts, taken together, shall constitute one and the same
instrument.

18.  Interpretation.

     The parties hereto acknowledge and agree that (i) each Party and its
counsel reviewed and negotiated the terms and provisions of this Agreement and
have contributed to its revision; (ii) the rule of construction to the effect
that any ambiguities are resolved against the drafting Party shall not be
employed in the interpretation of this agreement; and (iii) the terms and
provisions of this Agreement shall be construed fairly as to all Parties hereto
and not in a favor of or against any Party, regardless of which Party was
generally responsible for the preparation of this Agreement.

19.  Entire Agreement.

     This Agreement, together with any agreements referenced herein,
constitutes, on and as of the date hereof, the entire agreement of Sarnoff and
Orchid with respect to the licensing or transfer of technology from Sarnoff to
Orchid and all prior or contemporaneous understandings or agreements, whether
written or oral, between Sarnoff and Orchid with respect to such subject matter
are hereby superseded in their entirety except for the SB Agreement. In the case
of any conflict between the terms of this Agreement and the SB Agreement, the SB
Agreement shall govern.

                                       25
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this License Agreement
to be duly executed under seal and delivered as of the date first above written.

          SARNOFF CORPORATION

     By: /s/ Carmen A. Catanese, Ph.D.
         ------------------------------
             Carmen A. Catanese, Ph.D.

     Title: Vice President
           ----------------------------

          ORCHID BIOCOMPUTER, INC.

     By: /s/ Dale R. Pfost, Ph.D.
         ------------------------------
             Dale R. Pfost, Ph.D.

     Title: Chief Executive Officer
            and President
            ----------------------------

                                       26
<PAGE>
                               LICENSE AGREEMENT
                                   SCHEDULE A
                             PRESENT PATENT RIGHTS

<TABLE>
<CAPTION>
TITLE                                                     INVENTORS            COUNTRY   DOCKET     STATUS       SERIAL NO.
------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                          <C>        <C>      <C>          <C>
Partitioned Microelectronic And Fluidic Device   Zanzucchi, P.J. Cherukui,    U.S.         11402  PATENT            08/338703
 Array For Clinical Diagnostics And Chemical     S.C. McBride, S.E.
 Synthesis
------------------------------------------------------------------------------------------------------------------------------
Partitioned Microelectronic Device Array         Zanzucchi, P.J. Cherukui,    U.S.       11402A   PATENT            08/455016
                                                 S.C. McBride, S.E., Judd,
                                                 A.K.
------------------------------------------------------------------------------------------------------------------------------
Method of Synthesis of Plurality of Compounds    Zanzucchi, P.J. Cherukui,    U.S.       11402C   PATENT            08/454781
 in Parallel Using a Partitioned Solid Support   S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    U.S.       11402D   PATENT            08/454774
                                                 S.C. McBride, S.E. Judd,
                                                 A.K.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    U.S.       11402G   APPLICATION       08/556036
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    EPO        11402G   APPLICATION      95939862.9
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    EPO          11402  APPLICATION      95940666.1
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A partitioned Microelectronic Device Array       Zanzucchi, P.J Cherukui,     JAPAN        11402  APPLICATION        8-516200
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    SINGAPORE  11402G   APPLICATION       9701983-0
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    SINGAPORE    11402  APPLICATION       9701985-5
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    AUSTRALIA    11402  APPLICATION         4233796
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    AUSTRALIA  11402G   APPLICATION       4,152,396
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    CANADA       11402  APPLICATION         2205066
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    CANADA     11402G   APPLICATION         2204912
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    KOREA        11402  APPLICATION       703200/97
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    JAPAN      11402G   APPLICATION        8-516201
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    KOREA      11402G   APPLICATION  (PCT)703201/97
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    U.S.       11402EA  APPLICATION       08/705058
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    U.S.       11402BA  APPLICATION       08/789739
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Immunological Assay Conducted In A               Zanzucchi, P.J. Cherukui,    U.S.       11402FA  APPLICATION       08/914941
 Microlaboratory Array                           S.C. McBride, S.E. Judd,
                                                 A.K.
------------------------------------------------------------------------------------------------------------------------------
System For Liquid Distribution                   Levine, A.W. Cherukui,       U.S.         11637  APPLICATION       08/745767
                                                 S.C. Matey, J.R.
------------------------------------------------------------------------------------------------------------------------------
Apparatus And Methods For Controlling Fluid      Zanzucchi, P.J. McBride,     U.S.         11717  PATENT            08/469238
 Flow In Microchannels                           S.E. Burton, C.A.
                                                 Cherukui, S.C.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     U.S.       11717A   APPLICATION       08/556423
                                                 S.E. Burton C. A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     EPO        11717A   APPLICATION  US95/14586
                                                 S.E., Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     JAPAN      11717A   APPLICATION
                                                 S.E. Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     KOREA      11717A   APPLICATION
                                                 S.E. Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     SINGAPORE  11717A   APPLICATION  US95/14586
                                                 S.E. Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     AUSTRALIA  11717A   APPLICATION        95/14586
                                                 S.E. Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     CANADA     11717A   APPLICATION  US95/14586
                                                 S.E. Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     U.S.       11717B   APPLICATION       08/645966
                                                 S.E. Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     PCT        11717B   APPLICATION        97/07880
                                                 S.E. Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Method And System For Inhibiting                 Cherukui, S.C. Demers,       U.S.         11740  PATENT            08/483331
 Cross-Contamination In Fluids Of                Fan, Z.H. Levine, A.W.
 Combinatorial Chemistry Device                  McBride, S.E. Zanzucchi,
                                                 P.J.
------------------------------------------------------------------------------------------------------------------------------
Method And System For Inhibiting                 Cherukui, S.C. Demers,       U.S.       11740A   APPLICATION       08/726953
 Cross-Contamination In Fluids Of                Fan, Z.H. Levine, A.W.
 Combinatorial Chemistry Device                  McBride, S.E. Zanzucchi,
                                                 P.J.
------------------------------------------------------------------------------------------------------------------------------
Assay System                                     Andrevski, Z.M. Roach, W.R.  U.S.         11772  APPLICATION       08/742317
------------------------------------------------------------------------------------------------------------------------------
Assay System And Method For Conducting Assays    Andrevski, Z.M. Roach,       PCT          11772  APPLICATION        96/17116
                                                 W.R. Southgate, D.
                                                 Zanzucchi, P.J.
------------------------------------------------------------------------------------------------------------------------------
Field-Assisted Sealing                           Fan, Z.H. Cherukui, S.C.     PCT          11865  APPLICATION        95/14654
                                                 Levine, A.W. Lipp, S.A
------------------------------------------------------------------------------------------------------------------------------
Field-Assisted Sealing                           Fan, Z.H. Cherukui, S.C.     U.S.         11865  APPLICATION       08/745766
                                                 Levine, A.W. Lipp, S.A
------------------------------------------------------------------------------------------------------------------------------
Parallel Reaction Cassette And Associated        Roach, W.R. Southgate,       U.S.         11895  APPLICATION       08/786956
 Devices                                         P.D. Andrevski, Z.M.
                                                 Zanzucchi, P.J.
------------------------------------------------------------------------------------------------------------------------------
Parallel Reaction Cassette And Associated        Roach, W.R. Southgate,       PCT          11895  APPLICATION        97/00298
 Devices                                         P.D. Andrevski, Z.M.
                                                 Zanzucchi, P.J.
------------------------------------------------------------------------------------------------------------------------------
Magnet                                           McBride, S.E.                U.S.       11904A   APPLICATION       08/742971
------------------------------------------------------------------------------------------------------------------------------
Magnet                                           McBride, S.E.                PCT          11904  APPLICATION        96/17398
------------------------------------------------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits      Thaler, B.J. Quinn, R.L.     U.S.         11948  APPLICATION       08/554887
                                                 Braun, P.L. Zanzucchi,
                                                 P.J. Burton, C.A. McBride,
                                                 S.E.
------------------------------------------------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits      Thaler, B.J. Quinn, R.L.     EPO          11948  APPLICATION  PCT95/14587
                                                 Braun, P.L. Zanzucchi,
                                                 P.J. Burton, C.A. McBride,
                                                 S.E.
------------------------------------------------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits      Thaler, B.J. Quinn, R.L.     JAPAN        11948  APPLICATION  PCT95/14587
                                                 Braun, P.L. Zanzucchi,
                                                 P.J. Burton, C.A. McBride,
                                                 S.E.
------------------------------------------------------------------------------------------------------------------------------
Method Of Producing Micro-Electric conduits      Thaler, B.J. Quinn, R.L.     KOREA        11948  APPLICATION  PCT95/14587
                                                 Braun, P.L. Zanzucchi,
                                                 P.J. Burton, C. A.
                                                 McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits      Thaler, B.J. Quinn, R.L.     CANADA       11948  APPLICATION  PCT95/14587
                                                 Braun, P.L. Zanzucchi,
                                                 P.J. Burton, C. A.
                                                 McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits      Thaler, B.J. Quinn, R.L.     AUSTRALIA    11948  APPLICATION  PCT95/14587
                                                 Braun, P.L. Zanzucchi,
                                                 P.J. Burton, C. A.
                                                 McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits      Thaler, B.J. Quinn, R.L.     SINGAPORE    11948  APPLICATION  PCT95/14587
                                                 Braun, P.L. Zanzucchi,
                                                 P.J. Burton, C. A.
                                                 McBride, S.E
------------------------------------------------------------------------------------------------------------------------------
Bead Disbursement Devices                        Demers, R. Cherukui, S.C.    U.S.         12012  APPLICATION       08/805413
------------------------------------------------------------------------------------------------------------------------------
Method For Polynucleotide Sequencing             Kumar, R. Heaney, P.         U.S.         12024  APPLICATION       08/665210
------------------------------------------------------------------------------------------------------------------------------
Method For Polynucleotide Sequencing             Kumar, R. Heaney, P.         PCT          12024  APPLICATION        97/09664
------------------------------------------------------------------------------------------------------------------------------
Method For Polynucleotide Sequencing             Kumar, R. Heaney, P.         U.S.       12024A   APPLICATION      08/950,709
------------------------------------------------------------------------------------------------------------------------------
Massively Parallel Detection                     Stabile, P. Ludington, D.    U.S.       12034B   APPLICATION       08/721427
                                                 York, P.K. Rosen, A.
                                                 Cherukui, S. Zanzucchi, P.
------------------------------------------------------------------------------------------------------------------------------
Massively Parallel Detection                     Stabile, P. Ludington, D.    U.S.       12034A   APPLICATION       08/721432
                                                 York, P.K.
------------------------------------------------------------------------------------------------------------------------------
Massively Parallel Detection                     Stabile, P. Ludington, D.    PCT          12034  APPLICATION        97/17930
                                                 York, P. K. Rosen, A.
                                                 Cherukui, S. Zanzucchi, P.
------------------------------------------------------------------------------------------------------------------------------
Nuclease Protection Assays                       Kumar, R.                    U.S.         12038  APPLICATION       08/665104
------------------------------------------------------------------------------------------------------------------------------
Nuclease Protection Assays                       Kumar, R.                    PCT          12038  APPLICATION        97/09800
------------------------------------------------------------------------------------------------------------------------------
Method For Capturing A Nucleic Acid              Loewy, Z. Kumar, R.          U.S.         12049  APPLICATION       08/881282
------------------------------------------------------------------------------------------------------------------------------
Microfluidic Method For Nucleic Acid             Loewy, Z. G. Kumar, R.       U.S.         12050  APPLICATION       08/665209
 Amplification
------------------------------------------------------------------------------------------------------------------------------
Microfluidic Method For Nucleic Acid             Loewy, Z. G. Kumar, R.       PCT          12050  APPLICATION        97/09663
 Amplification
------------------------------------------------------------------------------------------------------------------------------
Method For Amplifying A Polypeptide              Loewy, Z. G.                 U.S.         12081  APPLICATION      08/6633688
------------------------------------------------------------------------------------------------------------------------------
Method For Amplifying A Polynucleotide           Loewy, Z. G. Kumar, R.       PCT          12081  APPLICATION        97/09665
------------------------------------------------------------------------------------------------------------------------------
Apportioning System                              Demers, R. R.                PCT          12087  APPLICATION        97/05153
------------------------------------------------------------------------------------------------------------------------------
Apportionment System                             Demers, R. R.                U.S.         12087  APPLICATION       08/630047
------------------------------------------------------------------------------------------------------------------------------
Plate For Reaction System                        Demers, R. R. Cherukui,      U.S.         12098  APPLICATION       08/630018
                                                 S.C. Levine, A. W. O'Mara,
                                                 K. D.
------------------------------------------------------------------------------------------------------------------------------
Plate For Reaction System                        Demers, R. R. Cherukui,      PCT          12098  APPLICATION        97/05841
                                                 S.C. Levine, A. W. O'Mara,
                                                 K. D.
------------------------------------------------------------------------------------------------------------------------------
Plate For Reaction System                        Demers, R. R. Cherukui,      U.S.       12098A   APPLICATION       08/850669
                                                 S.C. Levine, A. W. O'Mara,
                                                 K. D.
------------------------------------------------------------------------------------------------------------------------------
Automated nucleic Acid Preparation               Southgate, P. D. Loewy,      U.S.         12120  APPLICATION       08/664780
                                                 Z.G.
------------------------------------------------------------------------------------------------------------------------------
Automated Nucleic Acid Isolation                 Southgate, P. D. Loewy, Z.   PCT          12120  APPLICATION        97/09801
                                                 G.
------------------------------------------------------------------------------------------------------------------------------
Padlock Probe Detection                          Kumar, R.                    U.S.         12162  APPLICATION       08/665208
------------------------------------------------------------------------------------------------------------------------------
Padlock Probe Detection                          Kumar, R.                    PCT          12162  APPLICATION        97/09802
------------------------------------------------------------------------------------------------------------------------------
Indirect Electrode-Based Pumps                   McBride, S.E. Chiang, W.     U.S.         12189  APPLICATION       08/848413
                                                 Heaney, P.J. Cherukui, S.C.
------------------------------------------------------------------------------------------------------------------------------
Method for Enhancing Fluorescence                Zanzucchi, P.J.              U.S.         12215  APPLICATION       08/961860
------------------------------------------------------------------------------------------------------------------------------
Capacitive Denaturation Of Nucleic Acid          Moroney, R. M. Kumar, R.     U.S.         12288  APPLICATION       08/936323
                                                 Fishman, D.M.
------------------------------------------------------------------------------------------------------------------------------
Amplification Method For A Polynucleotide        Kumar, R.                    U.S.         12317  APPLICATION       08/924763
------------------------------------------------------------------------------------------------------------------------------
Balanced Asymmetric Electronic Pulse Patterns    McBride, S.E.                U.S.         12337  APPLICATION       08/821480
 For Operating Electrode-Based Pumps
------------------------------------------------------------------------------------------------------------------------------
Method For Capturing A Microorganism             Kumar, R. Fan, Z.H.          U.S.         12339  APPLICATION       08/927389
                                                 Hoghoogi, B. Stabile, P.J.
------------------------------------------------------------------------------------------------------------------------------
Flow Control In Microfluidics Devices By         Fare, T. L. Fan, Z. H.       U.S.         12365  APPLICATION             08/
 Controlled Bubble Formation                     Heaney, P. J.
------------------------------------------------------------------------------------------------------------------------------
Method For Translocating Microparticles In A     Fan, Z. H. McBride, S.E.     U.S.         12368  APPLICATION       08/838102
 Microfabricated Device                          Cherukui, S.C.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    U.S.       12385A   APPLICATION       08/744386
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    PCT          12385  APPLICATION        97/18266
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Vertical EHD Pump Integrated With Capillary      McBride, S.E. York, P. K.    U.S.       12519P   APPLICATION       60/046321
 Stop Or Break
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TITLE                                             PATENT NO.  FILING DATE  ISSUE DATE
-------------------------------------------------------------------------------------
<S>                                               <C>         <C>          <C>
Partitioned Microelectronic And Fluidic Device     5,585,069     11/10/94    12/17/96
 Array For Clinical Diagnostics And Chemical
 Synthesis
-------------------------------------------------------------------------------------
Partitioned Microelectronic Device Array           5,593,838    5/31/1995     1/14/97

-------------------------------------------------------------------------------------
Method of Synthesis of Plurality of Compounds      5,643,738    5/31/1995      7/1/97
 in Parallel Using a Partitioned Solid Support
-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array         5,681,484    5/31/1995    10/28/97

-------------------------------------------------------------------------------------
Liquid Distribution System                                      11/9/1995

-------------------------------------------------------------------------------------
Liquid Distribution System                                      11/9/1995

-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array         0 808 456    11/9/1995

-------------------------------------------------------------------------------------
A partitioned Microelectronic Device Array                      11/9/1995

-------------------------------------------------------------------------------------
Liquid Distribution System                                      11/9/1995

-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array                      11/9/1995

-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array                      11/9/1995

-------------------------------------------------------------------------------------
Liquid Distribution System                                      11/9/1995

-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array                      11/9/1995

-------------------------------------------------------------------------------------
Liquid Distribution System                                      11/9/1995

-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array                      11/9/1995

-------------------------------------------------------------------------------------
Liquid Distribution System                                      11/9/1995

-------------------------------------------------------------------------------------
Liquid Distribution System                                      11/9/1995

-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array                      8/29/1996

-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array                        1/27/97

-------------------------------------------------------------------------------------
Immunological Assay Conducted In A                                8/20/97
 Microlaboratory Array

-------------------------------------------------------------------------------------
System For Liquid Distribution                                 11/08/1996

-------------------------------------------------------------------------------------
Apparatus And Methods For Controlling Fluid        5,632,876     6/6/1995     5/27/97
 Flow In Microchannels

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                          11/9/1995

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                          11/9/1995

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                          11/9/1995

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                          11/9/1995

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                          11/9/1995

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                          11/9/1995

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                          11/9/1995

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                            5/10/96

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                            5/12/97

-------------------------------------------------------------------------------------
Method And System For Inhibiting                   5,603,351     6/7/1995     2/18/97
 Cross-Contamination In Fluids Of
 Combinatorial Chemistry Device

-------------------------------------------------------------------------------------
Method And System For Inhibiting                                  10/7/96
 Cross-Contamination In Fluids Of
 Combinatorial Chemistry Device

-------------------------------------------------------------------------------------
Assay System                                                    11/1/1996
-------------------------------------------------------------------------------------
Assay System And Method For Conducting Assays                   11/1/1996

-------------------------------------------------------------------------------------
Field-Assisted Sealing                                          11/9/1995

-------------------------------------------------------------------------------------
Field-Assisted Sealing                                         11/08/1996

-------------------------------------------------------------------------------------
Parallel Reaction Cassette And Associated                       1/23/1997
 Devices

-------------------------------------------------------------------------------------
Parallel Reaction Cassette And Associated                       1/24/1997
 Devices

-------------------------------------------------------------------------------------
Magnet                                                            11/1/96
-------------------------------------------------------------------------------------
Magnet                                                          11/3/1996
-------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits                     11/9/1995

-------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits                     11/9/1995

-------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits                     11/9/1995

-------------------------------------------------------------------------------------
Method Of Producing Micro-Electric conduits                     11/9/1995

-------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits                     11/9/1995

-------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits                     11/9/1995

-------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits                     11/9/1995

-------------------------------------------------------------------------------------
Bead Disbursement Devices                                         2/26/97
-------------------------------------------------------------------------------------
Method For Polynucleotide Sequencing                            6/14/1996
-------------------------------------------------------------------------------------
Method For Polynucleotide Sequencing                              6/13/97
-------------------------------------------------------------------------------------
Method For Polynucleotide Sequencing                             10/15/97
-------------------------------------------------------------------------------------
Massively Parallel Detection                                    9/26/1996

-------------------------------------------------------------------------------------
Massively Parallel Detection                                    9/26/1996

-------------------------------------------------------------------------------------
Massively Parallel Detection                                      9/25/97

-------------------------------------------------------------------------------------
Nuclease Protection Assays                                      6/14/1996
-------------------------------------------------------------------------------------
Nuclease Protection Assays                                      6/16/1997
-------------------------------------------------------------------------------------
Method For Capturing A Nucleic Acid                               6/24/97
-------------------------------------------------------------------------------------
Microfluidic Method For Nucleic Acid                            6/14/1996
 Amplification
-------------------------------------------------------------------------------------
Microfluidic Method For Nucleic Acid                            6/13/1997
 Amplification
-------------------------------------------------------------------------------------
Method For Amplifying A Polypeptide                             6/14/1996
-------------------------------------------------------------------------------------
Method For Amplifying A Polynucleotide                          6/13/1997
-------------------------------------------------------------------------------------
Apportioning System
-------------------------------------------------------------------------------------
Apportionment System                                               4/9/96
-------------------------------------------------------------------------------------
Plate For Reaction System                                          4/9/96

-------------------------------------------------------------------------------------
Plate For Reaction System                                          4/9/97

-------------------------------------------------------------------------------------
Plate For Reaction System                                          5/2/97

-------------------------------------------------------------------------------------
Automated nucleic Acid Preparation                              6/14/1996

-------------------------------------------------------------------------------------
Automated Nucleic Acid Isolation                                6/16/1997

-------------------------------------------------------------------------------------
Padlock Probe Detection                                         6/14/1996
-------------------------------------------------------------------------------------
Padlock Probe Detection                                           6/16/97
-------------------------------------------------------------------------------------
Indirect Electrode-Based Pumps                                     5/8/97

-------------------------------------------------------------------------------------
Method for Enhancing Fluorescence                                10/31/97
-------------------------------------------------------------------------------------
Capacitive Denaturation Of Nucleic Acid                           9/24/97

-------------------------------------------------------------------------------------
Amplification Method For A Polynucleotide                         8/27/97
-------------------------------------------------------------------------------------
Balanced Asymmetric Electronic Pulse Patterns                     3/21/97
 For Operating Electrode-Based Pumps
-------------------------------------------------------------------------------------
Method For Capturing A Microorganism                              8/26/97

-------------------------------------------------------------------------------------
Flow Control In Microfluidics Devices By                         11/19/97
 Controlled Bubble Formation
-------------------------------------------------------------------------------------
Method For Translocating Microparticles In A                      4/15/97
 Microfabricated Device
-------------------------------------------------------------------------------------
Liquid Distribution System                                        11/7/96

-------------------------------------------------------------------------------------
Liquid Distribution System                                       10/10/97

-------------------------------------------------------------------------------------
Vertical EHD Pump Integrated With Capillary                       5/13/97
 Stop Or Break
-------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                   Amendment to License and Option Agreement

     THIS AMENDMENT, dated as of April 13, 2000 ("Closing Date"), is by and
between SARNOFF CORPORATION, a New Jersey corporation having a principal place
of business at 201 Washington Road, Princeton, New Jersey 08543 ("Sarnoff"), and
ORCHID BIOSCIENCES, INC.(formerly known as Orchid Biocomputer, Inc.), a Delaware
corporation having a principal place of business at 303 College Road East,
Princeton, New Jersey 08540 ("Orchid").

     WHEREAS, Orchid (as Orchid Biocomputer, Inc.) and Sarnoff entered into a
License and Option Agreement dated as of December 10, 1997 ("License
Agreement"); and

     WHEREAS, Orchid and Sarnoff wish to amend the License Agreement as set
forth herein.

     NOW, THEREFORE, Sarnoff and Orchid hereby agree that the License Agreement
is amended as follows:

1.  DEFINITIONS.

        (a) All capitalized terms, unless otherwise defined herein, will have
the meanings given to them in the License Agreement.

        (b) The following definitions in Section 1 of the License Agreement are
amended as follows:

        1.13   The definition of "Funded Research Program" deleted in its
  entirety and the following is inserted in its place:

               "Funded Research Program" means the research or development
               activities that have been conducted by the Parties (or their
               respective designees) for the Option Fields set forth in Section
               1.21(a) and (c) and for which Sarnoff received research funding
               from Orchid prior to December 31, 1999.

                                       28
<PAGE>

        1.19   The definition of "Net Sales" is deleted in its entirety and
        "Intentionally Omitted" is inserted in its place.

        1.21   The definition of "Option Fields" is deleted in its entirety and
        the following is inserted in its place:

        "Option Field(s)" shall mean the use of Chips in:

        (a) Genomics, that is, nucleic acid-based analysis for discovery or
        development of human and animal pharmaceuticals or agricultural
        chemicals to treat plant diseases and pests and for the discovery of
        plant genes for the purpose of modifying plant traits ("Genomics
        Field");

        (b) Non-nucleic acid-based and non-cell based analyses for high
        throughout screening, that is for discovering and developing human and
        animal pharmaceuticals and agricultural chemicals to treat plant
        diseases and pests ("HTS Field");

        (c) Analysis and synthesis Research Products for use in the Life
        Sciences and in chemistry and materials research ("Research Products
        Field"); and

        (d) Cell-based assays for lead discovery, lead optimization and
        pharmaceutical development, including assays for drug metabolism,
        pharmacokinetics, toxicology and bioavailability ("Cell-Based Assay
        Field").

        1.22. The definition of "Option Period" is deleted in its entirety and
        the following is inserted in its place:

        "Option Field" means that period of time terminating on the Closing
        Date.

        1.24. The definition of "Orchid Field" is deleted in its entirety and
        the following is inserted in its place:

        "Orchid Field" shall mean (a) the use of Chips to carry out
        Combinatorial Chemistry for the purpose of discovering human, animal or
        plant pharmaceuticals, herbicides or pesticides, (b) the In-vitro
        Diagnostic Field, (c) the Genomics Field; and (d) the Research Products
        Field. The Orchid Field does not include the HTS Field and the Cell-
        based Assay Field.

                                       29
<PAGE>

        (c) The following definition is added to Section 1 of the License
        Agreement:

        1.40 "IPO Price" means the price per share of the common stock of Orchid
        upon the closing of a firm commitment underwritten initial public
        offering by Orchid of its common stock to the public pursuant to an
        effective registration statement under the Securities Act of 1933, as
        amended ("IPO").

2.  AMENDMENTS TO GRANT OF RIGHTS.

        (a) Section 2.1 of the License Agreement is amended as follows:

                 2.1.1 Section 2.1.1 of the License Agreement is deleted in its
            entirety and the following is inserted in its place:

            Subject to the terms and conditions of this Agreement, Sarnoff
            hereby grants to Orchid an exclusive, fully paid-up, worldwide,
            right and license under the Licensed Technology, with the right to
            sublicense, to develop, have developed, make, have made, use, have
            used, import, have imported, offer for sale, sell, have sold or
            lease, any Products, Storage Devices and/or Input/Output Devices for
            Type 1 Storage Devices and Chips and/or to provide any Services in
            the Orchid Field, provided, however, that with respect to Type 2
            Storage Devices and Input/Output Devices for Type 1 Storage Devices,
            such License shall only be exclusive for Licensed Technology
            described in clauses (a)-(e) and (g) of Section 1.17 and further
            provided however with respect to the Research Products Field, the
            license shall be exclusive for the Life Science Field and non-
            exclusive for materials and chemical research. In addition, the
            license granted under this Section 2.1.1 with regard to Ancillary
            Devices shall be limited to the designs of the Ancillary Devices in
            the Delivered Chips and Instruments and shall include the right to
            modify such designs using Orchid or third party Intellectual
            Property.

                 2.1.2 Section 2.1.2.1 of the License Agreement is deleted in
            its entirety and the following is inserted in its place:

            Subject to the terms and conditions of this Agreement, Sarnoff
            hereby grants to Orchid a non-exclusive, fully paid-

                                       30
<PAGE>

            up, worldwide, right and license under the Licensed Technology, with
            the right to sublicense, to develop, have developed, make, have
            made, use, have used, import, have imported, offer for sale, sell
            have sold or lease (a) any Products, Storage Devices and Input/
            Output Devices and provide any Services (i) in the HTS Field and the
            Cell-Based Assay Field, and (ii) which use Chips to carry out
            Combinatorial Chemistry for purposes not included in the Orchid
            Field provided however that such license under this Section
            2.1.2.1(ii) outside the Life Science Field shall be limited to use
            for industrial materials and chemicals and shall be limited to
            Licensed Technology under Section 1.17(a)-(e) and (g). However, the
            license granted under this Section 2.1.2.1 with regard to Ancillary
            Devices shall be limited to the designs of the Ancillary Devices in
            the Delivered Chips and Instruments and shall include the right to
            modify such designs using Orchid or third party Intellectual
            Property. The licenses granted pursuant to this Section 2.1.2 shall
            in no way be deemed to limit the scope of any exclusive license
            granted pursuant to Section 2.1.1.

                 2.1.2.2 Section 2.1.2.2 of the License Agreement is deleted in
            its entirety and the following is inserted in its place:

            Subject to the terms and conditions of this Agreement, Sarnoff
            hereby grants to Orchid a non-exclusive, fully paid-up, worldwide,
            right and license under Non-Exclusive Licensed Technology, with the
            right to sublicense, to develop, have developed, make, have made,
            use, have used, import, have imported, offer for sale, sell, have
            sold or lease any Products, Storage Devices and Input/Output Devices
            and provide any Services (i) in the Orchid Field and in the HTS
            Field and the Cell-Based Assay Field, and (ii) which use Chips to
            carry out Combinatorial Chemistry for purposes not included in the
            Orchid Field to the extent such uses of Chips is licensed under
            Section 2.1.2.1.

                2.1.2.3 Section 2.1.2.3 of the License Agreement is deleted in
            its entirety and the following is inserted in its place:

            Subject to the terms and conditions of this Agreement, Sarnoff
            hereby grants to Orchid a non-exclusive, fully paid-up,
            worldwide, right and license under Licensed Technology, with the
            right to sublicense, to develop, have developed, make, have made,
            use, have used, import, have

                                       31
<PAGE>

            imported, offer for sale, sell, have sold or lease Input/Output
            Devices for Type 2 Storage Devices in the Orchid Field.

                  2.1.3 Section 2.1.3 of the License Agreement is deleted in its
            entirety and "Intentionally Omitted" is inserted in its place.

                  2.1.4  Section 2.1.4 is hereby deleted in its entirety and
            "Intentionally Omitted" is inserted in its place.

                  2.1.6 Section 2.1.6 is deleted in its entirety and the
            following is inserted in its place:

            Sarnoff represents to Orchid that, as of the Closing Date, none of
            the Licensed Technology has been licensed from a third party.

                  2.1.8 Section 2.1.8 is deleted in its entirety and the
            following is inserted in its place:

            All tangible instruments, devices, prototypes or components thereof
            which are produced in Funded Research Programs at Sarnoff funded by
            Orchid (collectively, the "Tangible Instruments") shall be owned by
            Orchid. Sarnoff will deliver all Tangible Instruments of which it is
            aware to Orchid by no later than August 31, 2000. Thereafter, Orchid
            will notify Sarnoff in writing of any Tangible Instruments that
            Sarnoff is required, but failed, to deliver to Orchid under this
            Section 2.1.8, and Sarnoff will deliver to Orchid any such Tangible
            Instrument within 30 days of Orchid's notice. Orchid shall have the
            right to use and to reproduce all such Tangible Instruments under
            the terms of this Agreement.

                  2.2 Section 2.2 is deleted in its entirety and the following
            is inserted in its place:

            Nothing in this Agreement shall be interpreted to preclude Sarnoff
            or any of its subsidiaries or licensees or sublicensees from
            engaging in their businesses; provided that nothing in this Section
            2.2 shall limit the exclusive grant to Orchid under Section 2.1.
            Notwithstanding the

                                       32
<PAGE>

            foregoing, for a period of one (1) year, Sarnoff and its wholly-
            owned subsidiaries will not:

                 (a) collaborate with or enter into any agreement to provide
            research services or grant any license to any commercial third party
            for (i) designing or modifying Chips or Input/Output Devices for
            Chips for use in the Orchid Field, (ii) designing or modifying Type
            1 Storage Devices or Input/Output Devices for Type 1 Storage
            Devices that are customized or designed by Sarnoff for use with
            Chips in the Orchid Field, or (iii) designing or modifying Ancillary
            Devices, whether or not incorporated in Delivered Chips and
            Instruments, that are designed or customized by Sarnoff in
            collaboration with the third party while Sarnoff itself is in
            possession of the third party's Chips as part of a joint effort to
            design or optimize a system that includes Chips for use in the
            Orchid Field; or

                 (b) sell products which contain Chips, Type 1 Storage Devices,
            Input/Output Devices for Chips or Type 1 Storage Devices to any
            commercial third party for use in the Orchid Field.

            The foregoing:

                 (w) shall not prevent Sarnoff or any of its subsidiaries from
            providing services related to, or from developing, licensing or
            selling printers, cameras, imaging systems or displays including but
            not limited to those which employ Chips therein so long as they are
            not Ancillary Devices exclusively licensed to Orchid or designed or
            customized in violation of 2.2(i)(a)(iii);

                 (x) shall not prevent Sarnoff or any of its subsidiaries from
            providing services related to, or from developing, licensing or
            selling (a) Type 2 Storage Devices, or (b) Ancillary Devices, Type 1
            Storage Devices or Input/Output Devices for use outside the Orchid
            Field or from developing, licensing or selling products of general
            applicability which may be useful in the Orchid Field as long as
            such products are not specifically designed or modified for use with
            Chips, Type 1 Storage Devices, or Input/Output Devices for Chips or
            Type 1 Storage Devices,

                 (y) shall not require Sarnoff to prevent purchasers of such
            Ancillary Devices, Storage Devices or

                                       33
<PAGE>

            Input/Output Devices from using such Ancillary Devices, Storage
            Devices or Input/Output Devices in the Orchid Field, and

                 (z) shall not require Sarnoff to prevent parties with whom
            Sarnoff collaborates or provides research services or to whom
            Sarnoff grants any license from modifying, for use in the Orchid
            Field, products developed or licensed to them by Sarnoff, as long as
            Sarnoff or its wholly-owned subsidiaries do not contribute to the
            modification.

2.      2.3  Amendments to Option Grant.

             2.1 (a) Sections 2.3 (paragraphs 2.3.1 - 2.3.5 inclusive), 2.4 and
        2.5 of the License Agreement are deleted in their entirety and the
        following is inserted in their place:

             2.3. The Parties acknowledge that Orchid has exercised the
        exclusive option to include the Genomics Field and the Research Products
        Field in the Orchid Field and to receive exclusive licenses in such
        Option Fields. No other options are granted by Sarnoff to Orchid
        hereunder to the remaining Option Fields, with respect to which
        remaining Option Fields Orchid has and retains a non-exclusive license
        pursuant to the terms and conditions of this Agreement, as amended.

                 2.3.1 The Parties agree that, in consideration of the payments
             to be made and securities to be delivered by Orchid to Sarnoff
             pursuant to Sections 3.1(c) and 3.5 below, as of the Closing Date
             of this Amendment:

                     (i)    Sarnoff will not conduct any further research and
                     development activities for Orchid with respect to the
                     Genomics Field and the Research Products Field; the Funded
                     Research Program in connection with the Genomics Field and
                     the Research Products Field are deemed to be fully paid-up,
                     funded and completed and Orchid does not and will not owe
                     Sarnoff any monies for

                                       34
<PAGE>

                     royalties, option exercise fees or otherwise in connection
                     with such fields;

                     (ii)   no further options are exercisable under the License
                     Agreement; and

                     (iii) the Parties will not engage in any further funded
                     research or development activities in connection with any
                     Option Field, unless under a separate written agreement.

                     2.3.2  Intentionally omitted.

                     2.3.3  Intentionally omitted.

                     2.3.4  Intentionally omitted.

                     2.3.5 Sarnoff has delivered to Orchid and Orchid has
                 accepted a detailed list of all Licensed Technology which, to
                 the best of Sarnoff's knowledge, was invented or developed
                 during the course of the Funded Research Programs, or
                 incorporated in devices or systems as part of any such Funded
                 Research Programs as of the Closing Date. A list which has been
                 mutually agreed upon by the Parties and appended to this
                 Agreement (as amended) (Exhibit A) includes Licensed Technology
                 attributable to such Funded Research Programs as well as other
                 technology licensed hereunder as Research Technology. After the
                 Closing Date, if Sarnoff becomes aware of any Licensed
                 Technology that had not been delivered, Sarnoff will promptly
                 deliver such Licensed Technology to Orchid. If Orchid becomes
                 aware of any Licensed Technology that had not been delivered by
                 Sarnoff on or after the Closing Date in accordance with this
                 Section 2.3.5, Orchid will notify Sarnoff in writing and the
                 parties will negotiate the terms of its delivery to Orchid.

     2.4 Notwithstanding any provision of this Agreement, (a) the failure by
Orchid to exercise any Option which was granted by Sarnoff under this

                                       35
<PAGE>

                 Agreement shall not in any way affect any exclusive licenses
                 granted to Orchid hereunder, any non-exclusive licenses granted
                 to Orchid with respect to the HTS Field and the Cell-Based
                 Assay Field and (b) the scope of any licenses granted to Orchid
                 in the SB Agreement shall not be limited or affected in any way
                 by this Agreement.

                 2.5 Section 2.5 of the License Agreement is deleted in its
           entirety and "Intentionally Omitted" is inserted in its place.

        (b) Section 2.6.2 of the License Agreement is deleted in its entirety
and the following is inserted in its place:

                 2.6.2 Unless otherwise agreed in writing, without the prior
          written consent of Sarnoff, Orchid shall not grant a license or
          other right to any third party to use or practice outside the
          Orchid Field any Joint Inventions or Joint Patent Right, or to
          develop, have developed, make, have made, use, have used, offer
          to sell, sell, have sold, import, have imported, lease, or
          otherwise distribute any products or deliver any services
          outside the Orchid Field Covered By Joint Patent Rights. Unless
          otherwise agreed in writing, without the prior written consent of
          Orchid, Sarnoff shall not grant a license or other right to any third
          party to use or practice in the Orchid Field, any Joint Invention or
          Joint Patent Right, or to develop, have developed, make, have made,
          use, have used, offer to sell, sell, have sold, import, have imported,
          lease or otherwise distribute any products or deliver any services,
          within the Orchid Field Covered By Joint Patent Rights.

3.  AMENDMENTS TO CONSIDERATION.

        (a)  Section 3.1(b) of the License Agreement is amended as follows:

             has previously issued to Sarnoff or to Sarnoff's designated
             employees Eighty Two Thousand Five Hundred (82,500) shares of
             Common Stock, par value $.001, of Orchid and One Hundred Sixty
             Seven Thousand Five

                                       36
<PAGE>

             Hundred (167,500) shares of Series A Convertible Preferred Stock,
             par value $0.001, of Orchid in consideration of the license granted
             hereunder in the In-vitro Diagnostic Field; and

         3.2 (b)  Section 3.1(c) of the License Agreement is deleted in its
     entirety and the following is inserted in its place:

             agrees, as full and final payment for all obligations of Orchid to
             Sarnoff under this License Agreement with respect to the Research
             Products Field and the Genomics Field including, without
             limitation, any and all obligations to conduct or fund research
             and/or development, make royalty or other payments or issue any of
             its common or preferred stock or any other Orchid security, to:

                     (i)    Pay $970,000 and issue 50,000 shares of Orchid's
                            common stock to Sarnoff with respect to the Research
                            Products Field;

                     (ii)   Pay $2,000,000 and issue 100,000 shares of Orchid's
                            common stock to Sarnoff with respect to the Genomics
                            Field; and

                     (iii)  Issue an additional 50,000 shares of Orchid's common
                            stock to Sarnoff as a full, advance payment of any
                            and all future royalties that may be owed to Sarnoff
                            by Orchid with respect to royalty-bearing Products
                            or Services marketed in the Genomics Field or
                            Research Products Field.

          3.3 (c)  Section 3.2 of the License Agreement is deleted in its
      entirety and the following is inserted in its place:

                 3.2  Option Consideration.

                 (a) With respect to the exercise of the Option for the Research
                 Products Field, Orchid previously issued to Sarnoff 33,300
                 shares of

                                       37
<PAGE>

                 Common Stock of Orchid, par value $.001 and 66,700 shares of
                 Class A Preferred Stock of Orchid, par value $.001. With
                 respect to the exercise of the Option for the Genomics Field,
                 Orchid previously issued to Sarnoff 100,000 shares of Common
                 Stock of Orchid, par value $.001 of Common Stock of Orchid.

                 (b) Subject to the performance by Orchid of its obligations
                 under Sections 3.1(c) and 3.5, from and after the Closing Date
                 of this Amendment, (i) Orchid and Sarnoff will have no further
                 obligations to the other to conduct, continue or fund any
                 research program in any field, including any Funded Research
                 Program, and (ii) the Options to the HTS Field and the Cell-
                 Based Assay Field are terminated and without further force and
                 effect.

     (d) Sections 3.4, 3.5 and 3.6 are each deleted in their entirety and the
following is inserted in the place of each such Section:

               3.4   The Parties agree that in consideration of the delivery of
         securities by Orchid to Sarnoff pursuant to Sections 3.1(c) and Section
         3.5 below, any and all royalty obligations (including any minimum
         payments) under the License Agreement, whether under the exclusive or
         non-exclusive licenses granted to Orchid thereunder and whether in the
         Orchid Field or any Option Field, are fully paid-up, and the licenses
         granted to Orchid under the License Agreement are royalty-free, as of
         the Closing Date of this Amendment.

               3.5 As additional consideration for Sarnoff granting Orchid a
         fully paid-up license under the License Agreement, Orchid will deliver
         to Sarnoff:

                     (i)   50,000 shares of Orchid common stock as a full,
                           advance payment of any and all future royalties that
                           may be owed to Sarnoff by Orchid with respect to
                           royalty-bearing Products or Services marketed in

                                       38
<PAGE>

                           the HTS Field or Cell-Based Assay Field under the
                           non-exclusive license granted to Orchid by Sarnoff
                           under the License Agreement; and

                     (ii)  a warrant to purchase 75,000 shares of Orchid common
                           stock as a full, advance payment of any and all other
                           future obligations of Orchid to pay royalties to
                           Sarnoff under the License Agreement, pursuant to a
                           Warrant Agreement in the form attached as Exhibit A
                                                                     ---------
                           ("Warrant Agreement").

                 3.6 All payments and delivery of securities to be made by
           Orchid pursuant to Sections 3.1(c) and 3.5 above shall be made
           as of the Closing Date.

          3.4 (e)  Sections 3.7, 3.8 and 3.10 are each deleted in their entirety
and "Intentionally Omitted " is inserted in the place of each such Section.

4.  AMENDMENT TO DISCLOSURE OF LICENSED TECHNOLOGY.

          Section 5.2.4 of the License Agreement is amended as follows:

                 5.2.4. Sarnoff may, with respect to the Patent Rights, at any
           time, in its sole discretion decide that it desires to discontinue
           its responsibility for the prosecution or maintenance of a particular
           patent application or patent in one or more countries of Patent
           Rights which are Licensed Technology under Section 1.17(a), (b), (c),
           (d), (e) and (g). In such event, Sarnoff shall notify Orchid promptly
           in writing of its intention to discontinue responsibility for the
           prosecution or maintenance for such patent application or patent,
           and, in any event, shall give such notice at least sixty (60) days
           prior to the effective date of such proposed discontinuance in order
           to permit Orchid to determine whether it wishes to assume the
           responsibility therefor. Orchid shall have the right and option, but
           not the
                                       39
<PAGE>

           obligation, to assume responsibility for prosecution and maintenance
           of such patent or patent application which Sarnoff desires to
           discontinue. Orchid shall inform Sarnoff in writing of its decision
           to assume responsibility for prosecution and maintenance of such
           patent or patent application and Sarnoff shall execute and deliver
           such documents and take such actions as are reasonably necessary or
           appropriate to effect such assumption and transfer of responsibility
           in a timely and efficient manner. In the event Orchid exercises such
           right, such patent or patent application shall be assigned to Orchid
           and removed from operation of this Agreement; provided that, Sarnoff
           shall have a royalty free, non-exclusive, worldwide, right and
           license under such Licensed Technology with the right to sublicense,
           to develop, have developed, make, have made, use, have used, import,
           have imported, offer for sale, sell have sold or lease products and
           practice processes outside the Orchid Field and further provided that
           upon termination of this Agreement, such patents and patent
           applications shall be assigned to Sarnoff. However, if Sarnoff elects
           to use or sublicense a particular patent in a particular country
           assigned by Sarnoff to Orchid under this Section 5.2.4, then Sarnoff
           shall pay to Orchid one half of the out of pocket costs expended by
           Orchid in obtaining and maintaining the particular patent in the
           particular country.

5.  INFRINGEMENT.

        There are no modifications to Section 6 of the License Agreement.

6.  TERM.

        6.1  Section 7.1 of the License Agreement is amended to read as follows:

             This Agreement shall be effective as of the Effective Date and
             shall continue in full force and effect unless terminated by mutual
             agreement.

        6.2  Section 7.2 of the License Agreement is deleted in its entirety and
    "Intentionally Omitted" is inserted in its place.

8.  MISCELLANEOUS.

                                       40
<PAGE>

        8.1  (a) Except as amended or modified hereby, the License Agreement
  remains in full force and effect.

        8.2  (b) In the case of any conflict between the terms of this Amendment
  and the terms of the License Agreement, the terms of this Amendment will
  govern.

       IN WITNESS WHEREOF, the parties have executed this Amendment as of the
Closing Date.

SARNOFF CORPORATION                 ORCHID BIOSCIENCES, INC.

By: /s/ William J. Burke            By: /s/ Donald R. Marvin
    ----------------------------        --------------------------
Name: William J. Burke              Name: Donald R. Marvin
Title: VP, Patents & Licensing      Title: SVP, COO and CFO

                                       41
<PAGE>

                                   Exhibit A

                              Licensed Technology

                                       42
<PAGE>

                                                                  Execution Copy
                                                                  --------------

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE
TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS IT HAS BEEN REGISTERED UNDER THE ACT
AND SUCH LAWS OR (1) REGISTRATION UNDER APPLICABLE STATE SECURITIES LAWS IS NOT
REQUIRED AND (2) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY IS
FURNISHED TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE ACT IS NOT
REQUIRED.

                           ORCHID BIOSCIENCES, INC.

                       WARRANT TO PURCHASE COMMON STOCK

  This certifies that, for value received, Sarnoff Corporation (the "Holder") is
                                                                     ------
entitled to subscribe for and purchase up to Seventy Five Thousand (75,000)
shares (subject to adjustment from time to time pursuant to the provisions of
Section 5 hereof) of fully paid and nonassessable Common Stock of Orchid
BioSciences, Inc., a Delaware corporation (the "Company"), at the Warrant Price
                                                -------
(as defined in Section 2 hereof), subject to the provisions and upon the terms
and conditions hereinafter set forth.

  As used herein, the term "Common Stock" shall mean the Company's Common Stock,
                            ------------
$.001 par value per share, and any stock into or for which such Common Stock may
hereafter be converted or exchanged.

     1.  Term of Warrant. The purchase or conversion right represented by this
         ---------------
         warrant (hereinafter the "Warrant") is exercisable, in whole or in part
                                   -------
         at any time during the period commencing on April 13, 2000 (the
         "Effective Date") and continuing until the fifth anniversary thereof.
          --------------

     2.  Warrant Price. The initial exercise price of this Warrant shall be
         -------------
         equal to the price per share of the Company's Common Stock in the
         Initial Public Offering, subject to adjustment from time to time
         pursuant to the provisions of Section 5 hereof (the "Warrant Price").
                                                              -------------
         If there is no Initial Public Offering on or prior to April 13, 2001,
         the Warrant Price shall be twelve dollars ($12.00) per share.

     3.  Method of Exercise or Conversion; Payment; Issuance of New Warrant.
         ------------------------------------------------------------------

          (a) Exercise.  Subject to Section 1 hereof, the purchase right
              --------
     represented by this Warrant may be exercised by the Holder hereof, in whole
     or in part, by the surrender of this Warrant (with the notice of exercise
     form attached hereto as Exhibit 1 duly executed) at the principal office of
                             ---------
     the Company and (i) by the payment to the Company, by check or wire
     transfer, of an amount equal to the then applicable Warrant Price per share
     multiplied by the number of shares then being purchased; or (ii) by
     exercise of the Conversion Right under paragraph (b) below.  The Company
     agrees that the shares so purchased shall be deemed to be issued to the
     Holder hereof as the record owner of such shares as of the close of
     business on the date on which this Warrant shall have been surrendered and
     payment (or exercise of the

                                      43
<PAGE>

     Conversion Right) made for such shares as aforesaid. In the event of any
     exercise of this Warrant and, in any event, certificates for the shares of
     stock so purchased shall be delivered promptly to the Holder hereof (and,
     in any event, within 15 days thereafter) and, unless this Warrant has been
     fully exercised or expired, a new Warrant representing the portion of the
     shares, if any, with respect to which this Warrant shall not then have been
     exercised, shall also be issued promptly to the Holder hereof (and, in any
     event, within fifteen (15) days).

          (b) Conversion.  Subject to Section 1 hereof, the Holder may convert
              ----------
     this Warrant (the "Conversion Right"), in whole or in part, into the number
                        ----------------
     of shares of Common Stock of the Company calculated pursuant to the
     following formula by surrendering this Warrant (with the notice of exercise
     form attached hereto as Exhibit 1 duly executed) at the principal office of
                             ------- -
     the Company specifying the number of shares of Common Stock of the Company,
     the rights to purchase which the Holder desires to convert:

                             X    =    Y (A - B)
                                       ---------
                                          A

     where:     X =  the number of shares of Common Stock to be issued to the
                     Holder;
                Y =  the number of shares of Common Stock subject to this
                     Warrant for which the Conversion Right is being exercised;
                A =  the fair market value of one share of Common Stock; and
                B =  the Warrant Price.

     As used herein, the fair market value of a share of Common Stock shall mean
     with respect to each share of Common Stock the closing price per share of
     the Company's Common Stock on the principal national securities exchange on
     which the Common Stock is then listed or admitted to trading or, if not
     then listed or admitted to trading on any such exchange, on the NASDAQ
     National Market System, or if not then listed or traded on any such
     exchange or system, the average of the bid and asked prices per share on
     NASDAQ Small-Cap Market or, if not then listed or traded, in the sole
     discretion of the Board of Directors of the Company, any other over-the-
     counter market, including the OTC Bulletin Board, which reports bid, asked
     and last sale prices and volume of sales, averaged over the 10 trading days
     consisting of the day as of which the current fair market value of Common
     Stock is being determined and the nine consecutive business days prior to
     such day.  If at any time such quotations are not available, the current
     fair market value of a share of Common Stock shall be the highest price per
     share which the Company could obtain from a willing buyer (not a current
     employee or director) for shares of Common Stock sold by the Company, from
     authorized but unissued shares, as reasonably determined in good faith by
     the Board of Directors of the Company, unless (i) the Company shall become
     subject to a merger, acquisition or other consolidation pursuant to which
     the Company is not the surviving party, in which case the current fair
     market value of a

                                      44
<PAGE>

     share of Common Stock shall be deemed to be the value received by the
     holders of the Company's Common Stock for each share of Common Stock
     pursuant to the Company's acquisition; or (ii) the Holder shall exercise
     its Conversion Right to purchase such shares within 15 days prior to the
     closing date of the initial underwritten public offering of the Company's
     Common Stock pursuant to a registration statement filed under the Act, in
     which case, the fair market value of a share of Common Stock shall be the
     price per share at which all registered shares are sold to the public in
     such offering. The Company agrees that the shares so converted shall be
     deemed to be issued to the Holder hereof as the record owner of such shares
     as of the close of business on the date on which this Warrant shall have
     been surrendered as aforesaid. In the event of any conversion of this
     Warrant, certificates for the shares of stock so converted shall be
     delivered promptly to the holder hereof (and, in any event, within 15 days
     thereafter) and, unless this Warrant has been fully converted or expired, a
     new Warrant representing the portion of the shares, if any, with respect to
     which this Warrant shall not then have been converted, shall also be issued
     promptly to the holder hereof (and, in any event, within fifteen (15)
     days).

     4.  Stock Fully Paid; Reservation of Shares.  All Common Stock which may be
         ---------------------------------------
issued upon the exercise or conversion of this Warrant will, upon issuance, be
duly authorized, validly issued, fully paid and nonassessable, and free from all
taxes, liens and charges with respect to the issue thereof.  During the period
within which the rights represented by this Warrant may be exercised, the
Company will at all times have authorized, and reserved for the purpose of the
issuance upon exercise of the purchase rights evidenced by this Warrant, a
sufficient number of shares of its Common Stock to provide for the exercise of
the rights represented by this Warrant.  The Company will take all such action
as may be necessary to ensure that such shares of Common Stock will be issued
without violation of any applicable law or regulation or of any requirements of
any domestic securities exchange or quotation system upon which the Common Stock
may be traded; provided, however, that the Company shall not be required to
effect a registration under federal or state securities laws with respect to
such exercise.  The Company shall use its best efforts, on and after the date
the Company shall file a registration statement covering the shares of Common
Stock issued upon exercise of this Warrant, to list such shares upon any
securities exchange or quotation system on which the Common Stock is traded.

     5.  Adjustment of Purchase Price and Number of Shares.  The kind of
         -------------------------------------------------
securities purchasable upon the exercise of this Warrant, the Warrant Price and
the number of shares purchasable upon exercise of this Warrant shall be subject
to adjustment from time to time upon the occurrence of certain events as
follows:

          (a) Reclassification, Consolidation or Merger.  In case of any
              -----------------------------------------
     reclassification, recapitalization, reorganization or change of outstanding
     securities of the class issuable upon exercise of this Warrant (other than
     a change in par value, or from par value to no par value, or from no par
     value to par value, or as a result of a subdivision or combination), or in
     case of any consolidation or merger of the Company with or into another
     corporation, other than a merger with another corporation in which the
     Company is a continuing corporation and which does not

                                      45
<PAGE>

     result in any reclassification or change of outstanding securities issuable
     upon exercise of this Warrant, or in case of any sale of all or
     substantially all of the assets of the Company, the Company, or such
     successor or purchasing corporation, as the case may be, shall execute a
     new Warrant, providing that the Holder of this Warrant shall have the right
     to exercise such new Warrant and procure upon such exercise, in lieu of
     each share of Common Stock theretofore issuable upon exercise of this
     Warrant, the kind and amount of shares of stock, other securities, money
     and property receivable upon such reclassification, recapitalization,
     reorganization, change, consolidation, or merger by a holder of one share
     of Common Stock. Such new Warrant shall provide for adjustments which shall
     be as nearly equivalent as may be practicable to the adjustments provided
     for in this Section 5. No consolidation or merger of the Company with or
     into another corporation referred to in the first sentence of this
     paragraph (a) shall be consummated unless the successor or purchasing
     corporation referred to above shall have agreed to issue a new Warrant as
     provided in this Section 5. The provisions of this subsection (a) shall
     similarly apply to successive reclassification, changes, consolidations,
     mergers and transfers.

          (b) Subdivision or Combination of Shares.  If the Company at any time
              ------------------------------------
     while this Warrant remains outstanding and unexpired shall subdivide or
     combine its Common Stock, the Warrant Price shall be proportionately
     decreased in the case of a subdivision or increased in the case of a
     combination.

          (c) Stock Dividends.  If the Company at any time while this Warrant is
              ---------------
     outstanding and unexpired shall pay a dividend with respect to Common Stock
     payable in, or make any other distribution with respect to Common Stock
     (except any distribution specifically provided for in the foregoing
     subparagraphs (b) or (c)) of, Common Stock, then the Warrant Price shall be
     adjusted, from and after the date of determination of stockholders entitled
     to receive such dividend or distribution, to that price determined by
     multiplying the Warrant Price in effect immediately prior to such date of
     determination by a fraction (a) the numerator of which shall be the total
     number of shares of Common Stock outstanding immediately prior to such
     dividend or distribution and (b) the denominator of which shall be the
     total number of shares of Common Stock outstanding immediately after such
     dividend or distribution.

          (d) Cash Dividends and Distributions.  If at any time or from time to
              --------------------------------
     time the holders of Common Stock (or any shares of stock or other
     securities at the time receivable upon the exercise of this Warrant) shall
     have received or become entitled to receive, without payment therefor, any
     cash, stock, other securities or property, the holder hereof shall, upon
     the exercise of this Warrant, receive, in addition to the number of shares
     of Common Stock receivable thereupon, and without payment of any additional
     consideration therefor, the amount of cash, stock, other securities and
     property which such holder would have received had he been the holder of
     record of such Common Stock as of the date on which holders of Common Stock
     received or became entitled to receive such cash, stock, other securities
     and property.

                                      46
<PAGE>

          (e) Adjustment of Number of Shares.  Upon each adjustment in the
              ------------------------------
     Warrant Price pursuant to any of Sections 5 (a) through (c), the number of
     shares of Common Stock purchasable hereunder shall be adjusted, to the
     nearest whole share, to the product obtained by multiplying the number of
     shares purchasable immediately prior to such adjustment in the Warrant
     Price by a fraction, the numerator of which shall be the Warrant Price
     immediately prior to such adjustment and the denominator of which shall be
     the Warrant Price immediately thereafter.

     6.   Notice of Adjustments.  Whenever any Warrant Price shall be
          ---------------------
adjusted pursuant to Section 5 hereof, the Company shall prepare a certificate
signed by its chief financial officer setting forth, in reasonable detail, the
event requiring the adjustment, the amount of the adjustment, the method by
which such adjustment was calculated, the Warrant Price after giving effect to
such adjustment and the number of shares then purchasable upon exercise of this
Warrant, and shall cause copies of such certificate to be mailed (by first class
mail, postage prepaid) to the holder of this Warrant at the address specified in
Section 11(d) hereof, or at such other address as may be provided to the Company
in writing by the holder of this Warrant.

     7.   Fractional Shares.  No fractional shares of Common Stock will be
          -----------------
issued in connection with any exercise hereunder, but in lieu of such fractional
shares the Company shall make a cash payment therefor upon the basis of the
Warrant Price then in effect.

     8.   Compliance with the Act.  The holder of this Warrant, by
          -----------------------
acceptance hereof, agrees that this Warrant and the shares of Common Stock to be
issued upon exercise hereof are being acquired for investment for such holder's
own account and not with a view toward distribution thereof, and that it will
not offer, sell or otherwise dispose of this Warrant or any shares of Common
Stock to be issued upon exercise hereof unless this Warrant has been registered
under the Act and applicable state securities laws or registration under
applicable state securities laws is not required and (ii) if reasonably
requested by the Company, an opinion of counsel reasonably satisfactory to the
Company is furnished to the Company to the effect that registration under the
Act is not required.

     9.   Transfer and Exchange of Warrant.
          --------------------------------

          (a) Transfer. This Warrant may be transferred to or succeeded by any
     person; provided, however, that the Company is given written notice by the
             --------- -------
     transferee at the time of such transfer stating the name and address of the
     transferee and identifying the securities with respect to which such rights
     are being assigned.

          (b) Exchange.  Subject to compliance with the terms hereof, this
              --------
     Warrant and all rights hereunder are transferable, in whole or in part, at
     the office of the Company by the holder hereof in person or by duly
     authorized attorney, upon surrender of this Warrant properly endorsed.
     Each taker and holder of this Warrant, by taking or holding the same,
     consents and agrees that this Warrant, when endorsed in blank, shall be
     deemed negotiable; provided, that the last holder of this Warrant as
                        --------
     registered on the books of the Company may be treated by the

                                      47
<PAGE>

     Company and all persons dealing with this Warrant as the absolute owner
     hereof for any purposes and as the person entitled to exercise the rights
     represented by this Warrant or to transfer hereof on the books of the
     Company, any notice to the contrary notwithstanding, unless and until such
     holder seeks to transfer registered ownership of this Warrant on the books
     of the Company and such transfer is effected.

     10.  Liquidating Dividends.  If the Company pays a dividend or makes a
          ---------------------
distribution on the Common Stock payable otherwise than in cash out of earnings
or earned surplus (determined in accordance with generally accepted accounting
principles) except for a stock dividend payable in shares of Common Stock (a
"Liquidating Dividend"), then the Company will pay or distribute to the holder
of this Warrant, upon the exercise hereof, in addition to the Common Stock
purchased upon such exercise, the Liquidating Dividend which would have been
paid to such holder if he had been the owner of record of such shares of Common
Stock immediately prior to the date on which a record was taken for such
Liquidating Dividend or, if no record was taken, the date as of which the record
holders of Common Stock entitled to such dividends or distribution were
determined.

     11.  Miscellaneous.
          -------------

          (a) No Rights as Shareholder.  Except as provided in the Agreement, no
              ------------------------
     holder of the Warrant or Warrants shall be entitled to vote or receive
     dividends or be deemed the holder of Common Stock or any other securities
     of the Company which may at any time be issuable on the exercise hereof for
     any purpose, nor shall anything contained herein be construed to confer
     upon the holder of this Warrant, as such, any of the rights of a
     stockholder of the Company or any right to vote for the election of
     directors or upon any matter submitted to stockholders at any meeting
     thereof, or to give or withhold consent to any corporate action (whether
     upon any recapitalization, issuance of stock, reclassification of stock,
     change of par value or change of stock to no par value, consolidation,
     merger, conveyance or otherwise) or to receive notice of meetings, or to
     receive dividends or subscription rights or otherwise until the Warrant or
     Warrants shall have been exercised and the shares purchasable upon the
     exercise hereof shall have become deliverable, as provided herein.

          (b) Replacement.  On receipt of evidence reasonably satisfactory to
              -----------
     the Company of the loss, theft, destruction or mutilation of this Warrant
     and, in the case of loss, theft or destruction, on delivery of an indemnity
     agreement, or bond reasonably satisfactory in form and amount to the
     Company or, in the case of mutilation, on surrender and cancellation of
     this Warrant, the Company, at its expense, will execute and deliver, in
     lieu of this Warrant, a new Warrant of like tenor.

          (c) Notice of Capital Changes.  In case:
              -------------------------

              (i) the Company shall declare any dividend or distribution
          payable to the holders of its Common Stock;

                                      48
<PAGE>

               (ii) there shall be any capital reorganization or
          reclassification of the capital stock of the Company, or consolidation
          or merger of the Company with, or sale of all or substantially all of
          its assets to, another corporation or business organization in which
          the holders of the Company's voting securities before the transaction
          beneficially own less than 50% of the voting securities of the
          surviving entity; or

               (iii)  there shall be a voluntary or involuntary dissolution,
          liquidation or winding up of the Company;

     then, in any one or more of said cases, the Company shall give the holder
     of this Warrant written notice, in the manner set forth in subparagraph (d)
     below, of the date on which a record shall be taken for such dividend, or
     distribution or for determining stockholders entitled to vote upon such
     reorganization, reclassification, consolidation, merger, sale, dissolution,
     liquidation or winding up and of the date when any such transaction shall
     take place, as the case may be. Such written notice shall be given at least
     30 days prior to the transaction in question and not less than 20 days
     prior to the record date in respect thereof.

          (d) Notice.  Any notice given to either party under this Warrant shall
              ------
     be in writing, and any notice hereunder shall be deemed to have been given
     upon the earlier of delivery thereof by hand delivery, by courier, or by
     standard form of telecommunication or three (3) business days after the
     mailing thereof if sent registered mail with postage prepaid, addressed to
     the Company at its principal executive offices and to the holder at its
     address set forth in the Company's books and records or at such other
     address as the holder may have provided to the Company in writing.

          (e) No Impairment.  The Company will not, by amendment of its
              -------------
     Certificate of Incorporation or through any reorganization,
     recapitalization, reclassification, transfer of assets, consolidation,
     merger, dissolution, issue or sale of securities or any other voluntary
     action, avoid or seek to avoid the observance or performance of any of the
     terms to be observed or performed hereunder by the Company, but will at all
     times in good faith assist in the carrying out of all the provisions in the
     Warrant.

          (f) Governing Law.  This Warrant shall be governed by and construed
              -------------
     under the laws of the State of Delaware.

          (g) Issue Tax.  The issuance of certificates for shares of Common
              ---------
     Stock upon the exercise of the Warrant shall be made without charge to the
     holder of the Warrant for any issue tax in respect thereof; provided,
     however, that the Company shall not be required to pay any tax which may be
     payable in respect of any transfer involved in the issuance and delivery of
     any certificate in a name other than that of the then holder of the Warrant
     being exercised.

          (h) Amendments and Waiver. Any term of this Warrant may be amended or
              ---------------------
     waived only with the written consent of the Company and by a majority in
     interest of the holders of

                                      49
<PAGE>

     outstanding Warrants of the Company issued under the Purchase Agreement
     (determined by reference to the number of shares underlying such Warrants).
     In the event that such required consent is obtained, such amendment or
     waiver shall be binding on the holder of this Warrant, the other Warrants
     and such holders' assigns. Any such waiver of a breach of any provision of
     this Warrant shall not operate as or be construed to be a waiver of any
     other breach of such provision or of any breach of any other provision of
     this Warrant.

          (i) Automatic Conversion.  In the event that the holder of this
              --------------------
     Warrant has not exercised this Warrant or any portion hereof as of the
     expiration date hereof and on such date the Warrant Price is less than the
     fair market value of the Company's Common Stock, the holder of this Warrant
     shall be deemed to have exercised this Warrant in accordance with the
     Conversion Right under Section 3(b) as of the date of expiration of the
     Warrant.

IN WITNESS WHEREOF, this Warrant is executed as of this 13th day of April, 2000.

                                    Orchid BioSciences, Inc.

                                    By:
                                         ---------------------
                                         Donald R. Marvin
                                         Senior Vice President
                                         & Chief Operating Officer

                                      50

<PAGE>

                                                            EXHIBIT 1

                               NOTICE OF EXERCISE

TO:       ORCHID BIOSCIENCES, INC.

          1.    Check Box that Applies:

  __            The undersigned hereby elects to purchase _________ shares of
Common Stock of ORCHID BIOSCIENCES, INC. pursuant to the terms of the attached
Warrant, and tenders herewith payment of the purchase price of such shares in
full.

  __            The undersigned hereby elects to convert the attached warrant
into _________ shares of Common Stock of ORCHID BIOSCIENCES, INC. pursuant to
the terms of the attached Warrant.

          2.    Please issue a certificate or certificates representing said
shares of Common Stock in the name of the undersigned or in such other name as
is specified below:

                    -------------------------------------
                                   (Name)

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

                    -------------------------------------
                                  (Address)

         3.     The undersigned represents that the aforesaid shares of Common
Stock are being acquired for the account of the undersigned for investment and
not with a view to, or for resale in connection with, the distribution thereof
and that the undersigned has no present intention of distributing or reselling
such shares.

                                           -------------------------------------
                                           Signature

                                      51<PAGE>

                                                                    EXHIBIT 10.9

                            CONFIDENTIAL TREATMENT
                            ----------------------

ORCHID BIOSCIENCES, INC. HAS REQUESTED THAT THE MARKED PORTIONS OF THIS DOCUMENT
    BE ACCORDED 406 CONFIDENTIAL TREATMENT PURSUANT TO RULE 406 UNDER THE
                      SECURITIES ACT OF 1933, AS AMENDED.

[*] CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
             EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

              AGREEMENT FOR THE LICENSE AND SUPPLY OF TERMINATORS

     This Agreement, effective this 16th day of February, 2000, (the "Effective
Date") is between ORCHID BIOCOMPUTER, INC., a corporation organized and existing
under the laws of the State of Delaware, having a principal place of business at
303 College Road East, Princeton, New Jersey 08543 ("Orchid"), and NEN LIFE
SCIENCE PRODUCTS, INC., a corporation organized and existing under the laws of
the State of Delaware, having a principal place of business at 549 Albany
Street, Boston, Massachusetts 02118-2512 ("NEN").

     WHEREAS, NEN develops, manufactures and sells Terminators for use in the
detection of genetic polymorphisms by the method of GBA;

     WHEREAS, NEN owns rights and interests in and to the NEN Patents and other
proprietary rights in and to certain Terminators;

     WHEREAS, Orchid uses and sells Kits containing Terminators as a component
or part for the detection of genetic polymorphisms by the method of GBA;

     WHEREAS, Orchid owns, or is licensor of, rights and interests in and to
patents and other proprietary rights in and to the detection of polymorphisms by
the method of GBA;

     WHEREAS, NEN desires to make an equity investment in Orchid; and

     WHEREAS, NEN and Orchid mutually desire to conduct research to further the
development of detection of polymorphisms by the method of GBA; NOW THEREFORE,
the parties, agree as follows:

1.   Definitions

     For all purposes of this Agreement, the following terms have the meanings
set forth below:

     1.1  "Affiliate" means any legal entity directly or indirectly controlling,
          controlled by or under common control with Orchid or NEN. For purposes
          of this Agreement, "control" means the direct or indirect ownership of
          more than fifty percent (50%) of the outstanding voting securities of
          the legal entity, or the right to receive more than fifty percent
          (50%) of the profits or earnings of the legal entity.

     1.2  "Commercially Reasonable Efforts" means efforts and resources used to
          bring to market an idea, discovery, product, or method of similar
          market potential at a similar stage in its life taking into
          consideration potential and market established competitive
          alternatives, the competitiveness of the market place, the proprietary
          nature of the idea, discovery, product, or method, the regulatory
          structure involved, the profitability potential of the idea,
          discovery, product or method, and

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          other relevant factors. The level of efforts and resources appropriate
          are unique for each idea, discovery, product, or method, and change
          over time in reflection of changes in its development and in the
          marketplace.

     1.3  "GBA" means Genetic Bit Analysis or a primer extension assay defined
          in the claims of Orchid Patents.

     1.4  "Kit" means a kit containing one or more Terminators other than ddNTPs
          and one or more reagents to be used for performing GBA.

     1.5  "NEN Build-to-Ship Lead Time" means [*][[*]] days measured from the
          date an order for Terminators is submitted by Orchid, or such time
          period as NEN and Orchid may agree to from time to time, provided,
          that if the total quantity ordered for delivery in a given month
          exceeds the amount forecasted by Orchid for that month by the lesser
          of [*][[*]] percent ([*][[*]]%) of the forecast or [*][[*]]
          micromoles, the parties shall negotiate an acceptable lead time.

     1.6  "NEN Patents" means U.S. Patent Nos. 5,047,519 and 5,151,507, any
          issued divisions, continuations, continuations-in-part re-issues, re-
          examinations, renewals or extensions thereof, and any non-U.S.
          counterpart of either of said U.S. patents and any divisions,
          continuations, continuations-in-part re-issues, re-examinations,
          renewals or extensions thereof, which are owned by NEN, or under which
          NEN has or obtains the right to grant rights, and which claim a
          Terminator or the use of a Terminator, which claim has not lapsed,
          become abandoned or been declared invalid or unenforceable by a non-
          appealed or unappealable decision or judgement of a court or tribunal
          of competent jurisdiction.

     1.7  "Net Sales Revenues" means the total revenues invoiced by Orchid for
          sales of Kits to third parties for use in the detection of genetic
          polymorphisms by a method encompassed by at least one claim in the
          Orchid Patents but using a technology platform other than an Orchid
          technology platform less (i) sales taxes, tariff duties, and value
          added or other excise taxes; (ii) transportation costs; (iii) amounts
          credited on returns, replacements and allowances; and (iv) adjustments
          for invoice errors (such as pricing errors) that do not involve
          product returns, and excluding samples provided for promotional
          purposes.

     1.8  "Orchid Patents" means U.S. Patent No. 5,888,819, 5,952,174, 6,004,744
          and 6,013,431 and any and all patent applications pending and patents
          issuing from patent applications pending, or filed during the term of
          this Agreement, any where in the world, or issuing from any divisions,
          continuations, continuations-in-part of such applications, as well as
          all other patents, including re-issues, re-examinations, renewals or
          extensions thereof, any where in the world which are owned by Orchid,
          or under which Orchid has or obtains the right to grant rights, and
          which claim the use of a Terminator, or a method in which a Terminator
          may be used, which claim has not lapsed, become abandoned or been
          declared invalid or unenforceable by a non-appealed or unappealable
          decision or judgment of a court or tribunal of competent jurisdiction.

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    COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

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     1.9   "Specifications" means the physical, chemical, quality, technical and
           other standards for Terminators set forth on attached Schedule 1.9,
           as same may be amended from time to time.

     1.10  "Term" means the period beginning on the Effective Date and
           continuing until the date of the last to expire NEN Patent, unless
           earlier terminated as provided herein.

     1.11  "Terminators" means alkynylamino acycloterminator analogs ("acyNTP"),
           alkynylamino dideoxynucleotide analogs ("ddNTPs"), and other analogs
           as to which the parties may agree, which are defined in NEN Patents
           and act as chain terminators for a DNA/RNA polymerase.

2.   License

     2.1   NEN grants to Orchid an exclusive, royalty free, worldwide right and
           license in and to the NEN Patents to manufacture, distribute, sell
           and use Kits (with the right to grant sub-licenses to resellers who
           are not Orchid distributors to sell Kits and to end-users to use
           Kits) solely for the detection of genetic polymorphisms by GBA. The
           right and license to manufacture granted in this provision does not
           include the right to manufacture Terminators except as provided in
           paragraphs 3.4.3 and 3.10.2. NEN further grants to Orchid a non-
           exclusive, royalty free, worldwide right and license in and to the
           NEN Patents to use Terminators, other than ddNTPs, (with the right to
           grant sub-licenses) alone for GBA.

     2.2   Orchid has been a distributor of ddNTPs purchased from NEN since
           January 1, 1998, and, as such a distributor, has had and will
           continue to have the right to use and sell ddNTPs purchased by Orchid
           from NEN.

     2.3   The right to grant sub-licenses under paragraph 2.1 to end-users to
           use Terminators, other than ddNTPs, alone and not as a component or
           part of a Kit is limited to the use by each end-user of no more than
           one (1) micromole of Terminators in any consecutive twelve (12) month
           period.

     2.4   Notwithstanding paragraph 2.3, in the event Orchid no longer
           manufactures, distributes, sells or uses Kits, then Orchid will have
           a non-exclusive, royalty-free, worldwide right and license in and to
           the NEN Patents to distribute, sell and use Terminators purchased
           from NEN(with the right to grant sub-licenses) alone for GBA.

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3.   Supply of Terminators

     3.1  Purchase

          3.1.1  During the Term of this Agreement, NEN will sell to Orchid, and
                 Orchid will purchase from NEN all of Orchid's requirements of
                 Terminators, except as provided by paragraphs 3.4.3 and 3.10.2.

          3.1.2  All purchase orders placed by Orchid with NEN for Terminators
                 under this Agreement shall be in writing. The purchase orders
                 are subject and subordinate to and do not vary the terms and
                 provisions of this Agreement which, if other or different than
                 those of the purchase order, will be controlling even if the
                 purchase order is accepted and filled by NEN.

          3.1.3  All purchase orders will be accepted on receipt unless NEN
                 notifies Orchid within ten (10) days of receipt of the purchase
                 order that NEN cannot or will not fill the purchase order.

          3.1.4  Orchid agrees to provide NEN on the date that this Agreement is
                 signed by Orchid, and thereafter by the last business day of
                 each following calendar quarter, with a written, good faith,
                 rolling twelve (12) month, non-binding monthly forecast of its
                 expected purchases of Terminators. No forecast can increase the
                 purchase quantity forecasted for the first quarter over the
                 quantity forecasted in the last previous forecast for that
                 quarter by more than the lesser of [*][[*]] percent ([*][[*]]%)
                 of the last previous forecast for that quarter and [*][[*]]
                 micromoles.

          3.1.5 Orchid agrees to place within fifteen (15) calendar days from
                 the date Orchid signs this Agreement a binding, non-cancelable
                 purchase order with NEN to purchase at least two hundred fifty
                 thousand dollars ($250,000) of Terminators for the year 2000;
                 such purchase order not to be deferrable beyond December 31,
                 2000.

          3.1.6  Orchid agrees that it shall not, in any purchase order placed
                 with NEN pursuant to this Agreement or in any instructions or
                 other communication related thereto, specify a release or
                 shipment date to NEN with respect to any order or any portion
                 thereof such that the period from the date of submission of
                 order to (i) the release date is less than the NEN Build-to-
                 Ship Lead Time in effect as of the date of the submission of
                 the order and (ii) the delivery date is less than the NEN
                 Build-to-Ship Lead Time in effect as of the date of the
                 submission of the order plus one (1) business day.

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    COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

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          3.1.7  Orchid may defer or cancel delivery of any portion or all of
                 the Terminators specified in a purchase order by notifying NEN
                 at least three (3) business days prior to the requested
                 delivery date; provided that any such deferment or cancellation
                 shall not result in Orchid not meeting its purchase commitment
                 set forth in paragraph 3.1.5.

     3.2  Minimum Orders

          3.2.1  During the Term of this Agreement, Orchid will order and take
                 delivery of the following minimum quantities of Terminators
                 from NEN:

                 (1) During the first twelve (12) month period following the
                     Effective Date:

                         two hundred (200) micromoles;

                 (2) During the second twelve (12) month period:

                         five hundred (500) micromoles;

                 (3) During the third twelve (12) month period:

                         seven hundred fifty (750) micromoles;

                 (4) During the fourth twelve (12) month period, and each
                     subsequent twelve (12) month period:

                         one thousand (1,000) micromoles.

          3.2.2  In the event that Orchid fails to order and take delivery of
                 the minimum quantity of Terminators in a twelve-month period,
                 Orchid will pay to NEN, within thirty (30) days after receipt
                 of an invoice therefore at the end of that twelve-month period,
                 a sum equal to the purchase price of the quantity of
                 Terminators by which Orchid failed to reach the minimum
                 quantity, calculated as if such quantity of Terminators were
                 purchased in a single order for single delivery at the average
                 price chargeable for all Terminators in such single order
                 quantity for that twelve-month period.

          3.2.3  If this Agreement is terminated by NEN without cause or by
                 Orchid for cause (as the term "cause" is used in section 14 of
                 this Agreement) or pursuant to paragraph 14.2 prior to the end
                 of a twelve-month period, the minimum quantity of Terminators
                 Orchid is obligated to order and take delivery from NEN for
                 that twelve-month period will be pro-rata reduced in proportion
                 to the time the Agreement was not in effect during the twelve-
                 month period.

          3.2.4  Receipt of payment of the sum set forth in paragraph 3.2.2 is
                 NEN's sole

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<PAGE>

                 and exclusive remedy for any failure of Orchid to order from
                 NEN any quantity of Terminators, but not for any failure of
                 Orchid to meet its purchasing obligations under paragraph 3.1.5
                 or for any failure of Orchid to accept delivery of any quantity
                 of Terminators ordered if such order is not timely deferred or
                 canceled pursuant to paragraph 3.1.7.

          3.2.5  The minimum quantity of Terminators of Orchid's purchase
                 commitment set forth in paragraph 3.2.1 for any given twelve-
                 month period, or shorter period if the Agreement is terminated,
                 shall be reduced to the extent that, during that twelve-month
                 period, (a) NEN is unable or fails for any reason to supply or
                 deliver a quantity of Terminators against an order submitted by
                 Orchid and Orchid is not in material breach of this Agreement,
                 unless such inability or failure is by reason of (i) Orchid not
                 complying with the provisions of paragraph 3.1.6 or (ii)
                 Orchid's failure to place and not cancel or defer beyond the
                 period in question purchase orders for delivery of the minimum
                 quantity, (b) Orchid purchases Third Party Terminators as
                 provided by paragraph 3.4.3, and (c) Orchid manufactures or
                 obtains from another source Terminators as provided by
                 paragraph 3.10.2.

     3.3  Preferred Terminators

          3.3.1  Orchid and NEN mutually prefer that, at some future time,
                 Orchid will have no need for ddNTP Terminators and that NEN
                 will supply and sell to Orchid all acyNTP Terminators needed.

          3.3.2  Both Orchid and NEN, however, recognize that at present Orchid
                 needs [*] Kits and GBA instrumentation.

          3.3.3  Orchid will use Commercially Reasonable Efforts to diligently
                 refine and develop Kits and GBA instrumentation.

          3.3.4  NEN will use Commercially Reasonable Efforts to diligently
                 refine and develop acyNTP Terminators for optimal use in Kits
                 and Orchid's present and future GBA instrumentation.

          3.3.5  Until such time as Orchid's Kits and GBA instrumentation make
                 optimal use of acyNTP Terminators to the satisfaction of Orchid
                 and Orchid's customers, to the extent manufactured by NEN, NEN
                 will continue to supply and sell to Orchid ddNTP Terminators
                 and other Terminators under this Agreement.

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    COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

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     3.4  Improved Terminators

          3.4.1  NEN will promptly notify Orchid of any new Terminators
                 developed by or for it, or supplied to it, when any such new
                 Terminator is ready for evaluation, and will provide samples of
                 such new Terminators for Orchid to determine whether the new
                 Terminator is an improvement (in price or performance) over
                 existing Terminators.

          3.4.2  NEN will offer for sale to Orchid any new Terminators developed
                 by or for it, or supplied to or manufactured by it, and will
                 sell such new Terminators to Orchid, if Orchid so desires, on
                 mutually agreeable terms and conditions; such terms and
                 conditions to be no less favorable than those by which NEN may
                 sell such new Terminator to any third party and include a
                 provision that NEN will not sell such new Terminator to any
                 third party in quantities of [*] micromoles or more for use in
                 genotyping applications at a price that is less than [*]
                 percent ([*]%) of the price charged Orchid for equivalent
                 quantities of that Terminator.

          3.4.3  In the event that, at any time during the Term of this
                 Agreement, any third party sells or offers to sell any chain
                 terminators for a DNA/RNA polymerase reactions ("Third Party
                 Terminator") which is not subject of a claim of a NEN Patent,
                 and which, in Orchid's reasonable judgment, is an improvement
                 (in price for similar quantities to be purchased or
                 performance) over a Terminator then sold to Orchid by NEN,
                 Orchid may meet any or all of its requirements for Terminators
                 through purchase of Third Party Terminators from the third
                 party.

          3.4.4  Orchid's right to purchase Third Party Terminators from third
                 parties notwithstanding the provisions of paragraph 3.1.1 may
                 not be exercised until NEN has been afforded thirty (30) days
                 to make an offer to sell to Orchid Terminators which are, in
                 Orchid's sole and reasonable judgment, at least equal or better
                 in price and performance to the Third Party Terminators offered
                 by the third party. The thirty (30) day period mentioned in
                 this provision shall not begin until Orchid has advised NEN in
                 writing of the performance and/or price specifications of the
                 Third Party Terminator and the basis on which Orchid has
                 concluded that the Third Party Terminator is an improvement
                 over a Terminator then sold to Orchid by NEN.

     3.5  Delivery

          3.5.1  Time of Delivery

                 (1) NEN's obligation of delivery is and will remain on a best
                     efforts basis. NEN will use its best efforts to deliver to
                     Orchid such quantity of Terminators or any portion thereof
                     on or before the date requested in Orchid's purchase order;
                     provided Orchid is not

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    COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

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<PAGE>

                     in material breach of this Agreement and each such purchase
                     order and other written communication from Orchid to NEN as
                     to the delivery of such quantity or any portion thereof is
                     in compliance with paragraphs 3.1.6.

                 (2) Orchid may cancel any purchase order, in whole or in part
                     if not delivered on time.

                 (3) In case of deliveries that would be late if shipped through
                     normal shipment channels, Orchid may require NEN to ship by
                     express and NEN will pay the difference between the freight
                     and the express rate.

          3.5.2  NEN will ship Terminators, freight prepaid, F.O.B. NEN's
                 facility at 549 Albany Street, Boston, Massachusetts.

          3.5.3  Orchid will be invoiced for all taxes assessed and NEN's
                 standard handling fee in lieu of all shipping charges, freight,
                 insurance, special handling (where required) and similar costs.

     3.6  Price

          3.6.1  Price Schedule

                 (1) The price schedule for Terminators is on attached Schedule
                     3.6.1(1). The prices are for Terminators defined as either
                     ddNTPs or acyNTPs and each group has attached either a
                     hapten or dye marker and are for single shipment orders.
                     Quantities of different Terminators within each grouping
                     and marker type ordered in the same purchase order and
                     shipped in a single shipment may be added to determine the
                     lowest unit price for that grouping.

                 (2) Orchid will be entitled to the single shipment price even
                     in the event NEN is unable, or unwilling, to ship an order
                     in a single shipment if the Terminators have been ordered
                     by Orchid in a single purchase order with a specified
                     preference in said purchase order for a single shipment of
                     all Terminators ordered.

                 (3) The prices for acyNTP Terminators are discounted from the
                     prices for ddNTP Terminators based on their having equal
                     biological performance. This discount may be adjusted by
                     mutual agreement of the parties to reflect any inequity in
                     performance, but NEN agrees that, during the Term of this
                     Agreement, the prices for acyNTP Terminators will always be
                     at discounted prices from those charged by NEN for ddNTP
                     Terminators.

          3.6.2  (1) The prices set forth on attached Schedule 3.6.1(1) are most
                     preferred customer prices exclusive to Orchid in the field
                     of genotyping and represent a discount from the prices NEN
                     will charge any third party for the same or lesser quantity
                     per order of any terminator for us in genotyping
                     applications as to any order for more than [*] per order.

                 (2) In consideration for the exclusivity of the most preferred
                     customer prices, Orchid will pay to NEN a one-time only,
                     non-refundable, non-creditable, lump sum, fee of seven
                     hundred fifty thousand dollars ($750,000) within five (5)
                     business days of the Effective Date.

                 (3) If at any time in a given calendar year during the term of
                     this Agreement, NEN should sell Terminators to any third
                     party in single order quantities of [*] or more for use in
                     genotyping applications at a price that is less than [*] of
                     the price charged or offered to Orchid for purchase by a
                     single order of equivalent quantities of Terminators, then
                     NEN will immediately (i) notify Orchid of such sale and
                     (ii) adjust the price charged Orchid such that the price of
                     sale to the third party is at least [*] of the adjusted
                     price to Orchid, refund the difference in price paid by
                     Orchid for any order filled by NEN on or after the date of
                     such sale, and offer the adjusted price to Orchid for
                     accepted and unfilled orders and future orders. (By way of
                     example, and not limitation, if the price to Orchid for a
                     single order of [*] to [*] micromoles of Terminators is
                     $[*] per micromole and NEN sells [*] micromoles of
                     Terminators for use in genotyping to a third party for $[*]
                     per micromole in fulfillment of a single order, the price
                     to Orchid for each single order for [*] to [*] micromoles
                     of Terminators will be adjusted to $[*] per micromole.)

          3.6.3  Price Increases

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    COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

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          (1) NEN, at any time after one (1) year from the Effective Date of
              this Agreement, may increase its prices (and amend Schedule
              3.6.1(1) accordingly) if it incurs extraordinary increases in its
              cost of delivering (including manufacture) Terminators to Orchid
              by giving Orchid thirty (30) days prior written notice of such
              price change and documentation demonstrating the extraordinary
              costs. Prices may be increased by any amount up to [*] of that
              Terminator before NEN incurred the extraordinary cost. For the
              purpose of this provision, "extraordinary increases" in cost of
              delivery means a cumulative increase during the term hereof in
              NEN's total cost of delivery (including manufacture) of more than
              [*] percent ([*]%) since the latter of the Effective Date or the
              last previous price adjustment pursuant to this paragraph.

          (2) Orders accepted by NEN prior to the effective date of any price
              increase will be invoiced at the accepted price and will not be
              subject to the price increase.

          (3) As of the effective date of any price increase to Orchid, the
              prices charged third parties will be adjusted by NEN such that
              they are at least [*] percent ([*]%) of the increased price to
              Orchid for equivalent quantities of the same Terminator.

     3.7  Premium

          3.7.1 In addition to the price to be paid to NEN for Terminators set
                forth in paragraph 3.6.1, Orchid shall pay to NEN within thirty
                (30) days of the last day of each calendar year during the term
                of this Agreement a share of the Net Sales Revenues received by
                Orchid during that year based on the [*] A separate calculation
                shall be done as to each Kit sold during the year. The sum of
                all such calculations shall be the amount that Orchid shall pay
                to NEN. To the extent that the result of any calculation based
                on sales of a given Kit is $0 or less, that result, when summing
                the results of all the calculations shall be deemed to be $0 and
                not a negative number. Net Sales Revenues from the purchase of
                any Kit will not offset Net Sales Revenues from another Kit.
                With respect to any Net Sales Revenues received in currencies
                other than U.S. Dollars, all amounts shall be converted into
                U.S. Dollars in accordance with generally accepted accounting
                principles, consistently applied before using the formula set
                forth in this paragraph.

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    COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

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                 (1)

          3.7.2  Orchid shall, for a period of at least three (3) years after
                 any report required by paragraph 3.7.3, maintain at its
                 principal place of business true and complete books of account,
                 records and other data (hereinafter "Records") containing all
                 particulars reasonably necessary to determine the amounts
                 payable by Orchid to NEN at the end of each year pursuant to
                 paragraph 3.7.1. During such three-years periods, NEN shall
                 have the right to engage an independent, nationally-recognized
                 accounting firm, reasonably acceptable to Orchid, which firm
                 may examine during normal business hours and at times
                 reasonably acceptable to Orchid, on at least two (2) weeks
                 prior written notice, such Records reasonably necessary to
                 verify the accuracy of any amounts paid by Orchid to NEN
                 pursuant to paragraph 3.7.1; provided, however, that such
                 examination shall not take place more often than once per year
                 and shall not cover such Records for more than the preceding
                 three (3) years and provided further that such accounting firm
                 shall report only to NEN and Orchid only as to the accuracy of
                 the payments and the reports thereof and shall not disclose any
                 other information to NEN or any third party disclosed,
                 discerned or derived from the examination. In the event any
                 examination on behalf of NEN of Orchid's Records disclose
                 underpayment to NEN which for any year exceeds [*] percent
                 ([*]%) of the amount theretofore actually paid by Orchid to NEN
                 with respect to such year, Orchid shall reimburse NEN on demand
                 for the reasonable and documented costs and expenses,
                 including, but not limited to, all professional fees, incurred
                 in connection with any such examination and shall compensate
                 NEN in an amount equal to the sum of the amount of the
                 underpayment and all applicable late fees.

          3.7.3  The payments set forth in paragraph 3.7.1 shall, if overdue,
                 bear interest until payment at an annual rate of [*] percent
                 ([*] %) computed from the date when the payment became overdue;
                 provided, however, that if such [*] percent ([*] %) rate shall
                 be in excess of that allowed by applicable law, then the
                 highest rate permitted by law shall apply.

     3.8  Payment

          3.8.1  Payments will be made in United States Dollars within thirty
                 (30) days of the invoice date or the shipment date, whichever
                 is later.

                 (1) Late payments shall bear interest at the prime rate as
                     published in The Wall Street Journal on the first business
                     day of each month in which the payment is late plus two
                     percent (2%), and calculated on the basis of a three
                     hundred sixty (360) day year.

     3.9  Inspection and Return or Refund

          3.9.1  Within thirty (30) days of delivery, Orchid may conduct
                 acceptance

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                 testing or verification by [*] that received Terminators are in
                 conformance with Specifications, are not defective, and are in
                 good order and condition.

          3.9.2  At Orchid's option, NEN will promptly replace, or refund any
                 payment made on, any Terminator that is in nonconformance with
                 Specifications, defective or not in good order or condition.

          3.9.3  Orchid will as directed by NEN either destroy or return, at
                 NEN's expense, Terminators that do not conform to their
                 Specifications, are defective, or are not in good order or
                 condition.

          3.9.4  Orchid's right to replacement or refund does not limit its
                 rights under paragraph 3.10.2.

     3.10 Allocation and Alternate Source

          3.10.1  In the event that demand for any Terminator should at any time
                  exceed NEN's capacity to fill and deliver all of its orders
                  (and its own need for Terminators), NEN will notify Orchid of
                  the excess demand. Until such time as the excess demand abates
                  or NEN's capacity becomes sufficient to meet such demand, NEN
                  will have the right to equitably allocate its available
                  supplies, manufacturing capacity, inventory and other
                  resources, among Orchid, itself and its other customers.

          3.10.2  In the event NEN is unable for any reason, other than by
                  reason of Orchid placing orders that fail to comply with the
                  provisions of paragraph 3.1.6, to supply Orchid's total
                  requirements of Terminators for [*] ([*]) days from the
                  delivery date set out in Orchid's purchase order, Orchid may
                  itself manufacture or obtain from any other source any portion
                  or all of its requirements for Terminators for so long as NEN
                  is unable to supply all of Orchid's requirements and for [*]
                  months from the date NEN notifies Orchid it is once again able
                  to meet all of Orchid's requirements. NEN will provide Orchid
                  with technical assistance and information as may be reasonably
                  required by Orchid to establish an alternate source of
                  Terminators, including, but not limited to the right to
                  manufacture Terminators.

4.   Collaborative Research Program

     4.1  The parties shall, within [*] days from the Effective Date negotiate
          in good faith a collaborative research program agreement.

5.   Patent Enforcement

     5.1  In the event either party learns that any third party is or might be
          infringing, or preparing to infringe, any NEN Patent or Orchid Patent,
          it will promptly notify the other of such third-party activity.

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     5.2  Each party will be solely responsible for and have the sole right of
          taking any action against infringement of a patent or other
          proprietary right which is exclusive to it, at its expense and for its
          benefit. Neither party, however, has any obligation to take any action
          against any infringement.

6.   Labeling

     6.1  Orchid will mark or label in an appropriate manner each Kit it sells
          containing a Terminator encompassed by a claim of a NEN Patent with a
          patent notice in accordance with the provisions of 35 U.S.C. (S) 287.

     6.2  Orchid will label or mark in an appropriate manner each Kit it sells
          containing an acyNTP Terminator(s) supplied by NEN with a statement
          that the Kit incorporates a reagent(s) manufactured and supplied by
          NEN.

     6.3  Orchid also will label or mark in an appropriate manner each Kit it
          sells containing an acyNTP Terminator with the respective language set
          forth in attached Schedule 6.3.

     6.4  For each Kit Orchid will display NEN's logo in an appropriate manner.

     6.5  At NEN's earliest opportunity, but in no event later than ninety (90)
          days from the Effective Date, NEN will label or mark in an appropriate
          manner each Terminator (and in all marketing, advertising, promotional
          and sales materials, whether print or electronic media, which
          materials relate to the use of Terminators for genotyping) it sells to
          any third party which may be used to practice any method encompassed
          by a claim of an Orchid Patent with the language set forth in attached
          Schedule 6.5.

7.   Use of Names

     7.1  Except as obligated by section 6, nothing in this Agreement confers to
          either party any right to use in publicity, advertising, promotion, or
          marketing any name, trade name, trade mark or other designation of the
          other party, without the other party's prior permission, such
          permission not to be unreasonably withheld.

     7.2  Neither Orchid nor NEN will advertise, promote, market or sell any
          product (including Terminators and Kits) under any trade name, trade
          mark or trade dress which is the same as, or confusingly similar to,
          any trade name, trademark, or trade dress in which the other, or its
          Affiliates, have a prior and existing interest, whether as owner,
          licensee or licensor.

8.   Confidentiality

     8.1  Both NEN and Orchid will keep confidential all (i) prices and price
          schedules, (ii) information received from the other that is identified
          in writing as being confidential or proprietary at the time it is
          delivered or communicated, and (iii)

                                       12
<PAGE>

          information of the other which is delivered or disclosed in
          performance of this Agreement and within thirty (30) days from and
          after disclosure is identified in writing by the disclosing party to
          the recipient as confidential, (collectively, and individually,
          "Confidential Information").

     8.2  Orchid and NEN will not disclose any Confidential Information of the
          other to any person or party other than to employees, consultants or
          agents of NEN and of its Affiliates or employees, consultants or
          agents of Orchid and of its Affiliates engaged directly or indirectly
          in activities related to the supply of Terminators or the
          Collaborative Research Program and who have been properly instructed
          to and have agreed in writing to maintain the Confidential Information
          in confidence.

     8.3  Orchid and NEN will take all steps as are reasonably required to
          ensure that all persons to whom it is authorized to disclose
          Confidential Information of the other will not disclose the same to
          any unauthorized person.

     8.4  Either Orchid or NEN, however, may disclose:

                                       13
<PAGE>

          8.4.1  Confidential Information of the disclosing party that is known
                 to the receiving party prior to the time of its disclosure or
                 communication thereto, to the extent evidenced by written
                 records;

          8.4.2  Confidential Information of the disclosing party that is
                 disclosed to the receiving party by a third party not under an
                 obligation of confidentiality;

          8.4.3  Confidential Information that becomes published or otherwise
                 part of the public domain other than as a result of acts by the
                 receiving party not authorized by this Agreement or otherwise
                 authorized by the disclosing party; and

          8.4.4  Confidential Information that is required to be disclosed by
                 order of any governmental authority or court of competent
                 jurisdiction, provided, if the receiving party becomes legally
                 compelled to disclose Confidential Information of the
                 disclosing party, the receiving party will provide the
                 disclosing party with prompt notice so that the disclosing
                 party may seek a protective order or other appropriate remedy
                 and/or waive compliance with the provisions of this Agreement,
                 and, if in the absence of a protective order or the receipt of
                 a waiver, the receiving party nevertheless is legally required
                 to disclose Confidential Information of the other to any
                 governmental authority or court of competent jurisdiction or
                 else stand liable for contempt or suffer other censure or
                 penalty, the receiving party may disclose such Confidential
                 Information, to the most limited extent feasible, without
                 liability under this Agreement.

     8.5  The obligations of this section 8 survive any termination or
          expiration of this Agreement.

9.   Option to Manufacture

     9.1  In the event that Orchid decides to engage a third party to
          manufacture Kits for it, Orchid will notify NEN and afford NEN the
          opportunity to make an offer to manufacture Kits for Orchid. At the
          same time Orchid may solicit and entertain offers from third parties
          for the manufacture of Kits. However, Orchid may not accept any third-
          party offer until thirty (30) days after it offers the same terms and
          conditions as the third-party offer to NEN and NEN has not accepted
          such terms and conditions. The option and rights provided by this
          paragraph are personal to NEN and may not be sub-licensed or otherwise
          transferred without the prior express written approval of Orchid.

     9.2  Notwithstanding paragraph 9.1, Orchid agrees not to engage any third
          party to manufacture for it any Kit containing a Terminator supplied
          to Orchid by NEN.

10.  Equity Investment

                                       14
<PAGE>

     10.1 On or before the date Orchid fulfills its payment obligation under
          paragraph 3.6.2(2) to NEN, NEN will purchase one hundred twenty-five
          thousand (125,000) shares of Orchid common stock, par value $0.001 per
          share, at six dollars ($6.00) per share for an aggregate purchase
          price of seven hundred fifty thousand dollars ($750,000), pursuant to
          the terms and conditions set forth in the Common Stock Purchase
          Agreement to be executed between Orchid and NEN in substantially the
          form attached as Schedule 10.1. The parties acknowledge that the per
          share purchase price includes a premium over current fair market value
          of Orchid's Common Stock as partial consideration for the obligations
          of Orchid set forth herein.

11.  Announcements

     11.1 NEN and Orchid will together draft and make public a joint press
          release announcing their execution of this Agreement and its general
          terms, but not any prices or price schedules, within ten (10) days of
          execution of this Agreement by both parties.

     11.2 Any further public announcements of the existence, terms or
          performance of this Agreement will be at times and in manners as NEN
          and Orchid may mutually agree.

     11.3 Nothing in this Agreement, however, prevents either party from making
          any public announcement which it is or becomes legally obligated to
          make.

12.  Warranties

     12.1 NEN warrants that, at the time of shipment, any Terminator supplied or
          sold to Orchid will (i) be free and clear of all liens and
          encumbrances, with NEN having good title thereto, (ii) be free from
          any defects in materials and workmanship, and (iii) conform to its
          Specifications. NEN warrants that the sale of any Terminator delivered
          hereunder will not infringe the claims of any patent covering the
          Terminators themselves, but does not warrant against infringement by
          reason of the use thereof in combination with other products or in the
          operation of any process. Unless stated elsewhere in this Agreement,
          NEN MAKES NO OTHER WARRANTY, EXPRESSED OR IMPLIED, WITH RESPECT TO THE
          PRODUCTS INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY
          PARTICULAR PURPOSE. Notification of any breach of warranty under (ii)
          and (iii), above, must be made within thirty (30) days of Orchid's
          receipt of the order unless otherwise provided in writing by NEN. No
          claim shall be honored if Orchid fails to notify NEN within the period
          specified. THE SOLE AND EXCLUSIVE REMEDY OF ORCHID FOR ANY LIABILITY
          OF NEN OF ANY KIND INCLUDING LIABILITY BASED UPON WARRANTY (EXPRESSED
          OR IMPLIED, WHETHER CONTAINED HEREIN OR ELSEWHERE), STRICT LIABILITY,
          CONTRACT, OR OTHERWISE IS LIMITED TO THE REPLACEMENT OF THE GOODS OR
          THE REFUND OF THE INVOICE PRICE OF THE GOODS. NEN SHALL

                                       15
<PAGE>

           NOT IN ANY CASE BE LIABLE FOR SPECIAL, INCIDENTAL, OR CONSEQUENTIAL
           DAMAGES OF ANY KIND.

     12.2  NEN represents and warrants that none of the NEN Patents are the
           subject of any litigation and that it is not aware of any
           infringement of any of the NEN Patents.

     12.3  NEN MAKES NO WARRANTY OR REPRESENTATION THAT ANY COMBINATION OF A
           TERMINATOR WITH ANY OTHER PRODUCT, OR ANY USE OF A TERMINATOR WILL
           NOT INFRINGE ANY PATENT, TRADE SECRET OR OTHER PROPRIETARY RIGHT,
           FOREIGN OR DOMESTIC, OF ANY THIRD PARTY.

     12.4  THERE ARE NO OTHER WARRANTIES, EXPRESS OR IMPLIED, RESPECTING
           TERMINATORS AND NONE ARE CREATED, WHETHER UNDER THE UNIFORM
           COMMERCIAL CODE, CUSTOM OR USAGE IN THE INDUSTRY OR THE COURSE OF
           DEALINGS BETWEEN THE PARTIES.

13.  Indemnification

     13.1  NEN agrees to indemnify, defend, and hold harmless Orchid, its
           Affiliates and their directors, officers, agents, employees,
           representatives and assigns, from and against all liabilities,
           damages, expenses and losses (including reasonable attorney fees and
           costs), arising out of (i) the negligent actions of NEN, its
           employees or any third party acting on behalf or under authority of
           NEN in the performance of this Agreement, (ii) any alleged patent
           infringement, contributory patent infringement, inducing patent
           infringement, or trade secret infringement based on Orchid's purchase
           or sale pursuant to the provisions of this Agreement of the
           Terminators. At any time during the course of any action involving a
           Terminator, or if in NEN's opinion a Terminator is likely to become
           the subject of a patent infringement claim, NEN may at its option and
           expense, (i) procure for Orchid the right to continue using and
           selling pursuant to the provisions of this Agreement the Terminator,
           (ii) replace or modify the Terminator so that it becomes non-
           infringing or (iii) accept return of the Terminator and refund the
           purchase price.

     13.2  NEN will not be liable to Orchid under paragraph 13.1 if the patent
           or trade secret infringement claim is based on an alteration or
           modification of the Terminator.

     13.3  Orchid agrees to indemnify, defend and hold harmless NEN, its
           Affiliates, and their directors, officers, agents, employees, and
           assigns, from and against all liabilities, demands, damages, expenses
           and losses (including reasonable attorney fees and costs) arising out
           of (i) the negligent actions of Orchid, its employees or any third
           party acting on behalf or under authority of Orchid in the
           performance of this Agreement, (ii) any sale or use by Orchid of any
           Kit or Terminator, except those liabilities, demands, damages,
           expenses and losses resulting from NEN's (or its employees' or
           agents') negligence, willful misconduct or breach of any
           representation or warranty and (iii) any alleged patent infringement,
           contributory

                                       16
<PAGE>

           patent infringement, inducing patent infringement, or trade secret
           infringement based on Orchid's use of the Terminators.

     13.4  A party seeking indemnification under this Agreement will give prompt
           written notice to the indemnifying party of the commencement of any
           action (and any prior claims relating to such action) for which the
           party seeks indemnification. An indemnifying party will have no
           liability or responsibility of any kind to the party seeking the
           indemnification if it is not promptly notified.

     13.5  If an indemnifying party is given prompt notice, but fails or
           declines to assume the defense of any such claim or action within
           fifteen (15) days after notice thereof, the indemnified party may
           assume the defense of such claim or action for the account and at the
           risk of the indemnifying party, and any liabilities related thereto
           shall be conclusively deemed a liability of the indemnifying party.

     13.6  Except as provided in paragraph 13.5, an indemnifying party will have
           sole control of the defense of the action and of all negotiations for
           its settlement or compromise. An indemnifying party, however is not
           permitted to settle or compromise any claim or action giving rise in
           a manner that imposes any restrictions or obligations on the
           indemnified party, without the indemnified party's prior written
           consent.

     13.7  The indemnification rights of an indemnified party under this
           Agreement are in addition to all other rights which the indemnified
           party may have at law or in equity or otherwise.

     13.8  Nothing in this section 13 shall be construed to prohibit the
           indemnified party, at its own cost and expense, from retaining
           counsel to participate in the claim or action as to which the party
           is indemnified.

     13.9  This section 13 survives any termination or expiration of this
           Agreement.

14.  Term and Termination

     14.1  The Term of this Agreement is from the Effective Date through to the
           expiration date of the last to expire NEN Patent, unless this
           Agreement is earlier terminated pursuant to the provisions of
           paragraph 14.2, 14.3 or 14.4.

     14.2  Orchid and NEN each has the right to terminate this Agreement at any
           time after four (4) years from the Effective Date, without reason or
           cause, upon ninety (90) days prior written notice.

     14.3  Orchid and NEN each have the right to terminate this Agreement for
           cause if the other fails to make any payment due and owing, or
           commits breach of any material provision of this Agreement and fails
           to make such payment or remedy such breach within sixty (60) days
           after receiving written notice of such default or breach.

                                       17
<PAGE>

     14.4  NEN and Orchid each have the right to terminate this Agreement for
           cause if any proceeding is instituted by or against the other seeking
           to adjudicate it bankrupt or insolvent, or seeking liquidation,
           winding up, reorganization, arrangement, adjustment, protection,
           relief or composition of it or its debts under any law relating to
           bankruptcy, insolvency or reorganization or relief of debtors, or
           seeking an entry of an order for relief or the appointment of a
           receiver, trustee or other similar official for it or any substantial
           part of its property or taking any action to authorize any of the
           foregoing or similar actions if the proceeding or order or action is
           not vacated, denied or dismissed within ninety (90) days after the
           other receives written notice of termination from the terminating
           party. All rights and licenses granted under this Agreement are
           deemed to be, for purposes of Section 365(n) of the United States
           Bankruptcy Code, license or rights to "intellectual property" as
           defined by Section 101(56) of the United States Bankruptcy Code. The
           parties agree to relief from the automatic stay provisions under
           Section 362 of the Bankruptcy Code.

     14.5  Termination or expiration of this Agreement does not release Orchid
           or NEN from any obligation theretofore accrued.

15.  Rights After Termination

     15.1  Upon a party giving notice of termination of this Agreement, NEN will
           fill all accepted purchase orders of Orchid, unless cancelled by
           Orchid, and Orchid, its Affiliates and sub-licensees may finish all
           Kits in the process of manufacture, and advertise, promote, market
           and sell such Kits and all Kits in inventory. Orchid shall pay for
           all such outstanding purchase orders filled and shall not submit any
           purchase orders after the date of the notice of termination.

     15.2  This section 15 shall survive termination of this Agreement.

16.  Miscellaneous

     16.1  The relationship of Orchid and NEN under this Agreement is that of
           independent contractors. The provisions of this Agreement will not be
           construed to create between Orchid and NEN the relationship of
           principal and agent, joint venturers, co-partners or any other
           similar relationship, the existence of which is hereby denied by
           Orchid and NEN. Neither party will be liable in any way for any
           engagement, obligation, liability, contract, representation or
           warranty of the other party to or with any third party. Orchid is not
           an agent for NEN and NEN is not an agent for Orchid for any purpose
           and each party has no right or authority to assume or create any
           obligations, express or implied, on behalf or in the name of the
           other party.

     16.2  No waiver of any breach of any provision of this Agreement will
           constitute a waiver of any prior, concurrent or subsequent breach of
           the same or any other provision of this Agreement; and no waiver will
           be effective unless in writing.

                                       18
<PAGE>

     16.3  Any notice required or permitted under this Agreement will be
           sufficiently provided and effectively made as of the delivery date if
           sent by facsimile and either hand-delivered or sent by overnight
           express courier (e.g. Federal Express) and addressed to the receiving
           party at its respective address as follows:

           Orchid Biocomputer, Inc.
           303 College Road East
           Princeton, NJ 08540
           Facsimile: 609-750-2250
           Attn: President

           With a courtesy copy to:
           Kalow Springut & Bressler LLP
           488 Madison Avenue
           New York, NY 10022
           Facsimile: (212) 813-9600
           Attn.: David A. Kalow
                  Kenneth L. Bressler

           NEN Life Science Products, Inc.
           549 Albany Street
           Boston, MA 02118
           Facsimile: 617-542-8463
           Attn: President

           With a courtesy copy to:

           NEN Life Science Products, Inc.
           549 Albany Street
           Boston, MA 02118
           Facsimile: 617-542-8463
           Attn: Company Secretary

           or such other address of which the receiving party has given notice
           pursuant to this paragraph 16.3. The effective date of the notice is
           the date of receipt of the hand or courier delivery.

     16.4  In the event that the performance of this Agreement or of an
           obligation hereunder, other than the payment of money, is prevented,
           restricted or interfered with by reason of any cause not within the
           control of the respective party, and which could not by reasonable
           diligence have been avoided by such party, the party so affected,
           upon the giving of prompt notice to the other party, as to the nature
           and probable duration of such event, will be excused from such
           performance to the extent and for the duration of such prevention,
           restriction or interference,

                                       19
<PAGE>

           provided that the party so affected uses its reasonable efforts to
           avoid or remove such cause of non-performance and will fulfill and
           continue performance under this Agreement whenever and to the extent
           such cause or causes are removed. For the purpose of this paragraph,
           but without limiting the generality hereof, the following are not
           within the control of a party: acts of God; acts or omissions of a
           governmental agency or body; compliance with requests,
           recommendations, rules, regulations, or orders of any governmental
           authority or any officer, department, agency, or instrument thereof;
           flood; storm; earthquake; fire; war; insurrection; riot; accidents;
           acts of the public enemy; invasion; disease: quarantine restrictions;
           strike; labor lockout; differences with workmen; embargoes; delays or
           failures in transportation; and acts of a similar nature.

     16.5  The laws of the State of Delaware, without regard to conflicts of
           laws provisions, govern this Agreement.

     16.6  Both NEN and Orchid consent to the personal jurisdiction and venue of
           the United States District Court for the District of Delaware; and
           such court will have exclusive jurisdiction over any dispute between
           the parties arising under this Agreement. NEN and Orchid both further
           consent that any process or notice of motion or other application to
           the Court or Judge thereof may be served by registered or certified
           mail or by personal service, provided a reasonable period of time for
           appearance is allowed.

     16.7  If any provision of this Agreement is held to be invalid, illegal,
           unenforceable or void, such will be without effect on the validity,
           legality and enforceability of the remaining provisions or this
           Agreement as a whole. Both parties will endeavor to replace the
           invalid, illegal, unenforceable or void provision with a valid and
           enforceable one which in its equitable effect is most consistent with
           the prior provision.

     16.8  The section and paragraph headings and numbering are for convenience
           only and cannot have any effect on the interpretation or construction
           of this Agreement.

     16.9  This Agreement is binding upon and inures to the benefit of the
           heirs, successors and assigns of the parties hereto, provided that
           this Agreement, in whole or in part, is not assignable by either
           party without the prior written consent of the other party, such
           consent not to be unreasonably withheld, except that either party may
           assign this Agreement to any successor by merger or sale of a party
           or of substantially all of its business or assets to which this
           Agreement pertains and Orchid may assign this Agreement to an
           Affiliate of Orchid without any such consent, provided Orchid
           guarantees all performance obligations of Affiliate under this
           Agreement post assignment. Any effort to assign in violation hereof
           is void. In the event of any assignment, the assigning party must
           provide the other party with appropriate documentation of the
           assignment.

     16.10 Each party acknowledges that it has read this Agreement, understands
           it, and agrees to be bound by its terms and further agrees that it
           constitutes the complete

                                       20
<PAGE>

           and exclusive understanding between the parties, which supersedes and
           merges all prior proposals, understandings and all other agreements,
           oral and written, between the parties regarding the subject matter of
           this Agreement, including without limitation the letter from NEN to
           Orchid dated August 19, 1999; and no party has relied on any
           representation not expressly set forth or referred to in this
           Agreement.

     16.11 No amendment, variation, waiver or modification of any of the terms
           or provisions of this Agreement will be effected unless set forth in
           writing, specifically referencing this Agreement, and duly signed by
           an authorized officer of the party to be bound thereby.

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

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the
Effective Date.

NEN LIFE SCIENCE PRODUCTS, INC.              ORCHID BIOCOMPUTER, INC.

By: /s/ Russell D. Hays                      By: /s/ Dale R. Pfost
   -----------------------------                -----------------------------
   Russell D. Hays                           Name: Dale Pfost
   President and Chief Executive Officer          ---------------------------
                                            Title: CEO
                                                   --------------------------
                                       21
<PAGE>

                                 SCHEDULE 1.9
                                SPECIFICATIONS
                                --------------

[*] CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
    COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

                                       22
<PAGE>

                               SCHEDULE 3.6.1(1)
                                     PRICE
                                     -----

1.   AcyNTP Pricing per Micromole (based on per purchase order/single shipment)

                         TERMINATOR          REPORTER
                         MICROMOLES     HAPTEN       DYE
                         ----------     ------       ---
                       [*]

2.   ddNTP Pricing per Micromole (based on per purchase order/single shipment)
     -------------------------------------------------------------------------

                         TERMINATOR          REPORTER
                         MICROMOLES     HAPTEN       DYE
                         ----------     ------       ---
                       [*]

[*] CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
    COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

                                       23
<PAGE>

                                 SCHEDULE 6.3
                      ORCHID KIT AND TERMINATOR LABELING
                      ----------------------------------

Labeling to be placed on Kits by Orchid:
---------------------------------------

"This product is distributed and sold under licenses from Orchid Biocomputer,
Inc. and contains reagents sold under license from NEN LIFE SCIENCE PRODUCTS,
INC., for research use only for the detection of genetic polymorphisms by the
method of Genetic Bit Analysis (GBA/(R)/) and are not authorized nor intended
for diagnostic or therapeutic use or for any development of these products. No
other license is intended or granted through sale of this product to purchaser.
Purchase other than by an authorized distributor or reseller does not include
the right to resell or transfer this product either as a stand alone product or
as a component of another product or to otherwise commercially exploit this
product. Any use of this product other than the licensed use without the prior,
express written authorizations of Orchid Biocomputer, Inc. and NEN LIFE SCIENCE
PRODUCTS, INC. is strictly prohibited."

Labeling to be placed by Orchid on acyNTP Terminators sold independent of Kits:
------------------------------------------------------------------------------

"This product is distributed and sold under licenses from Orchid Biocomputer,
Inc. and NEN LIFE SCIENCE PRODUCTS, INC., for research use only for the
detection of genetic polymorphisms by the method of Genetic Bit Analysis
(GBA/(R)/) and are not authorized nor intended for diagnostic or therapeutic use
or for any development of these products. No other license is intended or
granted through sale of this product to purchaser. Purchase does not include or
carry any right to resell or transfer this product either as a standalone
product or as a component of another product or to otherwise commercially
exploit this product. Any use of this product other than the licensed use
without the prior, express written authorization of Orchid Biocomputer, Inc. and
NEN LIFE SCIENCE PRODUCTS, INC. is strictly prohibited.

"This product may not be used for DNA sequencing unless (a) used with a DNA
sequencer instrument purchased from NEN Life Science Products, Inc. or its
sublicensees, or (b) a separate license for such use is obtained from PE
Biosystems, Inc., Foster City, CA."

Labeling to be placed by Orchid on ddNTP Terminators:
----------------------------------------------------

"This product is distributed and sold under licenses from Orchid Biocomputer,
Inc. and NEN LIFE SCIENCE PRODUCTS, INC., for research use only for the
detection of genetic polymorphisms by the method of Genetic Bit Analysis
(GBA/(R)/) and are not authorized nor intended for diagnostic or therapeutic use
or for any development of these products. No other license is intended or
granted through sale of this product to purchaser. Purchase does not include or
carry any right to resell or transfer this product either as a stand alone
product or as a component of another product or to otherwise commercially
exploit this product. Any use of this product other than the licensed use
without the prior, express written authorization of Orchid Biocomputer, Inc. and
NEN LIFE SCIENCE PRODUCTS, INC. is strictly prohibited.

"This product may not be used for DNA sequencing unless (a) used with a DNA
sequencer instrument purchased from NEN Life Science Products, Inc. or its
sublicensees, or (b) a separate license for such use is obtained from PE
Biosystems, Inc., Foster City, CA.

"For Research Use Only: This product is distributed and sold under an
arrangement between ENZO DIAGNOSTICS, INC. and NEN LIFE SCIENCE PRODUCTS, INC.
for research purposes only by the end-user in the research market and is not
intended for diagnostic or therapeutic use.  Purchase does not include or carry
any right or license to use, develop, or otherwise exploit this product
commercially.  Any commercial use, development or exploitation of this product
without the express prior written authorization of ENZO DIAGNOSTICS, INC. and
NEN LIFE SCIENCE PRODUCTS, INC. is strictly prohibited.

"This product or the use of this product may be covered by one or more Enzo
patents, including the following:  U.S. Patent Nos. 4,994,373, 5,476,928,
5,328,824; 5,449,767; 4,707,440; 4,952,685; 5,002,885; and 5,013,831; and DK 164
407 8; and by one or more patents owned by NEN, including U.S. Patent Nos.
5,047,519; 5,151,507; and 5,608,063."

                                       24
<PAGE>

                                 SCHEDULE 6.5
                            NEN TERMINATOR LABELING
                            -----------------------

Labels to be placed by NEN on Terminators:
-----------------------------------------

"This product may not be used for Genetic Bit Analysis(R) unless (A) used with a
SNPstream(R) instrument purchased from Orchid Biocomputer, Inc., or (B) a
separate license for such use is obtained from Orchid Biocomputer, Inc. of
Princeton NJ."

                                       25
<PAGE>

                                 SCHEDULE 10.1
                        COMMON STOCK PURCHASE AGREEMENT
                        -------------------------------

     THIS AGREEMENT dated as of February 16, 2000 is by and between ORCHID
BIOSCIENCES, INC. (the "Company"), a Delaware corporation with principal offices
at 303 College Rd. East, Princeton, NJ 08543, USA, and NEN Life Science
Products, Inc. (the "Purchaser"), a Delaware corporation with principal offices
at 549 Albany St., Boston, MA 02118.

     WHEREAS the Company wishes to obtain equity financing and the Purchaser is
willing to purchase and the Company is willing to sell, on the terms and
conditions contained in this Agreement, shares of Common Stock of the Company.

     IN CONSIDERATION of the mutual covenants contained in this Agreement, the
parties agree as follows:

     SECTION 1.  Authorization of Sale of the Shares. The Company has authorized
                 -----------------------------------
the sale to the Purchaser of 125,000 shares (the "Shares") of the Common Stock,
par value per share, of the Company (the "Common Stock") at a purchase price of
$6.00 per share, which price is at a premium to the current fair market value of
the Common Stock.

     SECTION 2.  Sale and Purchase of Shares; Limitations on Transfer; Certain
                 -------------------------------------------------------------
Other Rights.
------------

     2.1  Sale and Purchase of Shares.  At the Closing (as defined in Section
          ---------------------------
3), the Company will sell to the Purchaser, and the Purchaser will buy from the
Company, upon the terms and conditions hereinafter set forth, the Shares, at an
aggregate purchase price of $750,000 (the "Purchase Price").

     2.2  Right of First Refusal. If the Purchaser desires to sell all or any
          ----------------------
part of the Shares at any time after the Closing and has received in writing an
irrevocable and unconditional bona fide offer (the "Bona Fide Offer") for the
purchase thereof from a third party (the "Offeror"), the Purchaser shall give
written notice (the "BFO Notice") to the Company setting forth the

                                       26
<PAGE>

Purchaser's desire to sell such Shares, which BFO Notice shall be accompanied by
a photocopy of the original executed Bona Fide Offer and shall set forth at
least the name and address of the Offeror and the price and terms of the Bona
Fide Offer. The Company and/or its designees may elect to purchase some or all
of the Shares to be transferred (the "Offered Shares") upon the terms and
conditions set forth in the BFO Notice by delivering a written notice of such
election to the Purchaser within twenty (20) days after the date of mailing of
the BFO Notice by the Purchaser. The closing of the purchase and sale of the
Offered Shares shall take place on a date agreed upon by the Purchaser and the
Company but in any event within forty-five (45) days after the date of the
mailing of the BFO Notice, at the principal office of the Company, or such other
place as may be agreed to by the Purchaser and the Company. If the Company and
its designees do not elect to purchase all of the Offered Shares, the Purchaser
may transfer and sell any Offered Shares for which such an election is not made
to the Offeror at a price and on terms no more favorable to the Offeror than
those specified in the BFO Notice, provided that such transfer and sale is
consummated during the 60-day period immediately following the date of mailing
of the BFO Notice by the Purchaser. Any Offered Shares not sold or transferred
during such 60-day period will again be subject to the provisions of this
Section 2.2.

     2.3  Restrictions on Offeror.  Any Offeror purchasing all or any portion of
          -----------------------
the  Shares from the Purchaser under Section 2.2 shall be subject to the terms
of this Agreement.

     2.4  Exempted Transfers.  (a) The Purchaser shall be permitted to transfer
          ------------------
the Shares owned by it without complying with the provisions of this Section 2
solely in the event of transfer by the Purchaser to any Affiliate of the
Purchaser (a "Permitted Transferee"), provided that any such Permitted
Transferee shall have delivered to the Company the written agreement of such
Permitted Transferee to be bound by all of the provisions of this Agreement to
the same extent as the Purchaser. For the purposes of this Section, "Affiliate"
shall mean any corporation, firm, partnership or other entity which directly or
indirectly controls or is controlled by or is under common control with a party
to this Agreement. "Control" means ownership, directly or through one or more
affiliates, of fifty percent (50%) or more of the shares of stock entitled to
vote for the election of directors, in the case of a corporation, or fifty
percent (50%) or more of the equity interests in the case of any limited
liability company or other type of legal entity, status as a general partner in
any partnership, or any other arrangement whereby a

                                       27
<PAGE>

party controls or has the right to control the Board of Directors of directors
or equivalent governing body of a corporation or other entity.

          (b)  The rights of the Company under Section 2.2 hereof shall not
apply to any pledge of Shares by the Purchaser which creates a mere security
interest, provided the pledgee provides the Company with a written agreement to
be bound hereby to the same extent as the Purchaser.

     2.5  Failure to Deliver Shares.  If the Purchaser becomes obligated to sell
          -------------------------
any Shares to the Company or its designee under this Section 2 and fails to
deliver such Shares in accordance with the terms of this Agreement, the Company
or its designee may, at its option, in addition to all other remedies it may
have, send to the Purchaser the purchase price for such Shares as is herein
specified. Thereupon, the Company upon written notice to the Purchaser, (i)
shall cancel on its books the certificate or certificates representing the
Shares to be sold and (ii) shall issue, in lieu thereof, in the name of the
Company or its assignee, a new certificate or certificates representing such
Shares, and thereupon all of the Purchaser's rights in and to such Shares shall
terminate.

     2.6  Term.  The provisions of Sections 2.2 through 2.5 shall terminate upon
          ----
the effective date of the registration of the Shares pursuant to the United
States Securities Exchange Act of 1934.

     2.7  Legend.  Each certificate evidencing any of the Shares shall bear a
          ------
legend substantially as follows:

          "The shares represented by this certificate are subject to
          restrictions on transfer and may not be sold, exchanged, transferred,
          pledged, hypothecated, or otherwise disposed of except in accordance
          with and subject to all the terms and conditions of a certain Common
          Stock Purchase Agreement dated as of March __, 2000, a copy of which
          the Company will furnish to the holder of this certificate upon
          request and without charge."

     2.8  Lock-Up.  If, in connection with a registration statement filed by the
          -------
Company pursuant to the Securities Act, the Company or its underwriter so
requests, the Purchaser will agree not to sell any Shares for a period not to
exceed 180 days following the effectiveness of such registration.

                                       28
<PAGE>

     SECTION 3.  Delivery of the Shares at the Closing. The completion of the
                 -------------------------------------
purchase and sale of the Shares being purchased and sold pursuant to this
Agreement (the "Closing") shall occur on a date to be specified by the parties
which shall be no later than March __, 2000, at the offices of Mintz, Levin,
Cohn, Ferris, Glovsky and Popeo, P.C., One Financial Center, Boston,
Massachusetts 02111 (the "Closing Date"). At the Closing, the Purchaser shall
pay to the Company an amount equal to the Purchase Price and the Company shall
deliver to the Purchaser one or more stock certificates representing the Shares
purchased by the Purchaser, each such certificate to be registered in the name
of the Purchaser. The Company's obligation to close the transaction shall be
subject to the following conditions, any of which may be waived by the Company:
(y) receipt by the Company of funds in the full amount of the Purchase Price for
the Shares being purchased hereunder; and (z) the accuracy of the
representations and warranties made by the Purchaser and the fulfillment of
those undertakings of the Purchaser to be fulfilled prior to the Closing. The
Purchaser's obligation to close the transaction shall be subject to the
fulfillment of the following conditions: (a) the execution and delivery by the
Company of the Registration Rights Agreement in the form attached on Exhibit 1
                                                                     ---------
attached hereto (the "Registration Rights Agreement"); (b) the receipt by the
Purchaser of an opinion of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.,
counsel to the Company, in the form attached hereto as Exhibit 2; (c) the
                                                       ---------
receipt by the Purchaser of a copy of a certificate, dated on or immediately
prior to the Closing Date, as to the good standing of the Company in the state
of Delaware; (d) the receipt by the Purchaser of a stock certificate,
representing the Shares; and (e) the receipt by the Purchaser of a certificate
of the Secretary of the Company as to the incumbency of certain officers
executing the Transaction Documents in the form attached hereto as Exhibit 3.
                                                                   ---------
This Agreement and the Registration Rights Agreement are collectively referred
to herein as the "Transaction Documents".

     SECTION 4.  Representations, Warranties and Covenants of the Company. As
                 --------------------------------------------------------
used herein, "best knowledge" shall mean and include only actual knowledge of
any officers or directors of the Company. The Company hereby represents and
warrants to, and covenants with, the Purchaser as follows:

          4.1.   Organization. The Company is duly organized, validly existing
                 ------------
and in

                                       29
<PAGE>

good standing under the laws of the State of Delaware. The Company has full
corporate power and authority to own, operate and occupy its properties and to
conduct its business as presently conducted and is registered or qualified to do
business and in good standing in each jurisdiction in which it owns or leases
property or transacts business and where the failure to be so qualified would
have a material adverse effect upon the business, financial condition,
properties or operations of the Company. The Company has delivered to the
Purchaser an accurate and complete copy of its Certificate of Incorporation and
all amendments thereto, including without limitation, all Certificates of
Designation filed with the Secretary of State of Delaware.

          4.2.   Due Authorization. The Company has all requisite corporate
                 -----------------
power and authority to execute, deliver and perform its obligations under the
Transaction Documents, and the Transaction Documents have been duly authorized
and validly executed and delivered by the Company and constitute legal, valid
and binding agreements of the Company enforceable against the Company in
accordance with their terms.

          4.3.   Non-Contravention. The execution and delivery of the
                 -----------------
Transaction Documents, the issuance and sale of the Shares to be sold by the
Company hereunder, the fulfillment of the terms of the Transaction Documents and
the consummation of the transactions contemplated by the Transaction Documents
will not conflict with or constitute a violation of, or default or give rise to
any benefits or an acceleration of any rights of any third party (with the
passage of time or otherwise) under, any material agreement or instrument to
which the Company is a party or by which it is bound or the charter, by-laws or
other organizational documents of the Company nor result in the creation or
imposition of any lien, encumbrance, claim, security interest or restriction
whatsoever upon any of the material properties or assets of the Company or an
acceleration of indebtedness pursuant to any obligation, agreement or condition
contained in any material bond, debenture, note or any other evidence of
indebtedness or any material indenture, mortgage, deed of trust or any other
agreement or instrument to which the Company is a party or by which it is bound
or to which any of the property or assets of the Company is subject, nor
conflict with, or result in a violation of, any law, administrative regulation,
ordinance or order of any court or governmental agency, arbitration panel or
authority applicable to the Company. No consent, approval, authorization or
other order of, or registration, qualification or filing with, any regulatory
body, administrative agency, or other governmental body is required

                                       30
<PAGE>

for the valid issuance and sale of the Shares to be sold pursuant to the
Agreement, other than such as have been or will be made or obtained.

          4.4  Capitalization.  The Shares to be sold pursuant to this Agreement
               --------------
have been duly authorized, and when issued and paid for in accordance with the
terms of this Agreement will be validly issued, fully paid and non-assessable
and free of restrictions on transfer, other than restrictions on their transfer
under this Agreement, and under applicable state and federal securities laws.
The outstanding shares of capital stock of the Company have been duly and
validly issued and are fully paid and non-assessable.

          4.5  Related-Party Transactions.  Except as disclosed on Schedule 4.5
               --------------------------                          ------------
attached hereto, no employee, officer, or director of the Company or member of
his or her immediate family is indebted to the Company, nor is the Company
indebted (or committed to make loans or extend or guarantee credit) to any of
them.  To the best of the Company's knowledge, none of such persons has any
direct or indirect ownership interest in any firm or corporation with which the
Company is affiliated or with which the Company has a business relationship, or
any firm or corporation that competes with the Company, except that employees,
officers, or directors of the Company and members of their immediate families
may own stock in publicly traded companies that may compete with the Company.
To the best of the Company's knowledge, no officer or director or any member of
their immediate families is, directly or indirectly, interested in any material
contract with the Company.

          4.6  Permits.  The Company has all franchises, permits, licenses, and
               -------
any similar authority necessary for the conduct of its business as now being
conducted by it, the lack of which could materially and adversely affect the
business, properties, prospects, or financial condition of the Company and
believes it can obtain, without undue burden or expense, any similar authority
for the conduct of its business as planned to be conducted.  The Company is not
in default in any material respect under any of such franchises, permits,
licenses or other similar authority.

          4.7  Compliance With Other Instruments.  The Company is not in
               ---------------------------------
violation or default of any provision of its Certificate of Incorporation or
Bylaws or in any material respect of any provision of any mortgage, indenture,
agreement, instrument, or contract to which it is a party or by which it is
bound or, to the best of its knowledge, of any federal or state judgment,

                                       31
<PAGE>

order, writ, decree, statute, rule, or regulation applicable to the Company. The
execution, delivery, and performance by the Company of this Agreement, the
Registration Rights Agreement and the consummation of the transactions
contemplated hereby and thereby will not result in any such violation or be in
material conflict with or constitute, with or without the passage of time or
giving of notice, either a material default under any such provision or an event
that results in the creation of any material lien, charge, or encumbrance upon
any assets of the Company or the suspension, revocation, impairment, forfeiture,
or non-renewal of any material permit, license, authorization, or approval
applicable to the Company, its business or operations, or any of its assets or
properties.

          4.8  Litigation.  There is no action, suit, proceeding, or
               ----------
investigation, to the best of the Company's knowledge, pending or currently
threatened against the Company that questions the validity of this Agreement,
the Registration Rights Agreement or the right of the Company to enter into such
agreements, or to consummate the transactions contemplated hereby or thereby, or
that might result, either individually or in the aggregate, in any material
adverse change in the assets, business, properties, prospects, or financial
condition of the Company, or in any material change in the current equity
ownership of the Company.  The foregoing includes, without limitation, any
action, suit, proceeding, or investigation pending or currently threatened
involving the prior employment of any of the Company's employees, their use in
connection with the Company's business of any information or techniques
allegedly proprietary to any of their former employers, their obligations under
any agreements with prior employers, or negotiations by the Company with
potential backers of, or investors in, the Company or its proposed business.
The Company is not a party to, or to the best of its knowledge, named in any
order, writ, injunction, judgment, or decree of any court, government agency, or
instrumentality.  There is no action, suit, or proceeding by the Company
currently pending or that the Company currently intends to initiate.

          4.9  Offering.  Subject in part to the truth and accuracy of the
               --------
Purchaser's representations set forth in Section 5.1 of this Agreement, the
offer, sale and issuance of the Shares as contemplated by this Agreement are
exempt from the registration requirements of the Securities Act, and neither the
Company nor any authorized agent acting on its behalf will take any action
hereafter that would cause the loss of such exemption.

                                       32
<PAGE>

          4.10 Title to Property and Assets; Leases.  The Company owns no real
               ------------------------------------
estate and leases facilities in Princeton, New Jersey.  Except (i) as reflected
in the Financial Statements (as defined in paragraph 4.11), (ii) for liens for
current taxes not yet delinquent, (iii) for liens imposed by law and incurred in
the ordinary course of business for obligations not past due to carriers,
warehousemen, laborers, materialmen and the like, (iv) for liens in respect of
pledges or deposits under workers' compensation laws or similar legislation or
(v) for minor defects in title, none of which, individually or in the aggregate,
materially interferes with the use of such property, the Company owns its
property and assets free and clear of all mortgages, liens, claims, and
encumbrances.  With respect to the property and assets it leases, the Company is
in compliance with such leases and, to the best of its knowledge, holds a valid
leasehold interest free of any liens, claims, or encumbrances, subject to
clauses (i)-(v) above.

          4.11 Financial Statements and Preliminary Financial Statements.  The
               ---------------------------------------------------------
Company has delivered to the Purchaser its audited financial statements (balance
sheet and profit and loss statement, statement of stockholders' equity and
statement of cash flows including notes thereto) at December 31, 1998 and 1997
for the fiscal years then ended and shall, within thirty (30) days of the date
hereof, deliver to the Purchaser its audited financial statements for the fiscal
year ending December 31, 1999 and the twelve months ended December 31, 1999 (the
"Financial Statements").  The Financial Statements will have been prepared in
accordance with U.S. Generally Accepted Accounting Principles ("GAAP") applied
on a consistent basis throughout the periods indicated and with each other,
except that unaudited financial statements may not contain all footnotes
required by GAAP.  The Financial Statements will fairly present the financial
condition and operating results of the Company as of the dates, and for the
periods, indicated therein.  Except as set forth in the Financial Statements,
the Company has no material liabilities, contingent or otherwise, other than (i)
liabilities incurred in the ordinary course of business and (ii) obligations
under contracts and commitments incurred in the ordinary course of business and
not required under generally accepted accounting principles to be reflected in
the Financial Statements, which, in both cases, individually do not exceed
$125,000, and in the aggregate do not exceed $800,000, other than commitments
set forth on Schedule 4.11 attached hereto.  Except as disclosed in the
             -------------
Financial Statements, the Company is not a guarantor or indemnitor of any
indebtedness of any other person, firm, or corporation.  The Company maintains
and will

                                       33
<PAGE>

continue to maintain a standard system of accounting established and
administered in accordance with GAAP.

          4.12 Changes.  To the best of the Company's knowledge and except as
               -------
set forth in Schedule 4.12 herein or as otherwise permitted by this Agreement,
             -------------
since December 31, 1999, there has not been:

     (a)  any change in the assets, liabilities, financial condition, business
prospects or operating results of the Company from that reflected in the
Financial Statements, except changes in the ordinary course of business that
have not been, in the aggregate, materially adverse;

     (b)  any damage, destruction or loss, whether or not covered by insurance,
materially and adversely affecting the business, properties, prospects, or
financial condition of the Company (as such business is presently conducted and
as it is proposed to be conducted);

     (c)  any material change to a material contract or arrangement by which the
Company or any of its assets is bound or subject;

     (d)  any indebtedness incurred by the Company in excess of $25,000;

     (e)  any change made or authorized to the Company's By-Laws or Charter;

     (f)  any dividends, whether declared, set aside or paid, with respect to
its capital stock (whether in cash or in kind) or redemptions of any such
capital stock;

     (g)  any resignation or termination of employment of any key officer of the
Company; and the Company, to the best of its knowledge, does not know of the
impending resignation of termination of employment of any such officer;

     (h)  receipt of notice that there has been a loss of, or material order
cancellation by, any major customer of the Company;

     (i)  to the best of the Company's knowledge, any other event or condition
of any character that might materially and adversely affect the business,
properties, prospects, or financial condition of the Company (as such business
is presently conducted and as it is proposed to be conducted); or

     (j)  any agreement or commitment, whether written or oral, by the Company
to do any of the things described in this Section 4.12.

          4.13 Patents and Trademarks.  The Company owns or possesses sufficient
               ----------------------
legal rights to all patents, trademarks, service marks, trade names, copyrights,
trade secrets, licenses,

                                       34
<PAGE>

information, and proprietary rights and processes presently used by the Company
in its business (the "Intellectual Property Rights"). To the best knowledge of
the Company, the Intellectual Property Rights are the only intellectual property
rights necessary for its business as now conducted and as proposed to be
conducted and, to the best knowledge of the Company, do not conflict with, or
infringe the rights of others. Except for agreements with its own employees or
consultants, there are no outstanding options, licenses, or agreements of any
kind relating to the foregoing, nor is the Company bound by or a party to any
options, licenses, or agreements of any kind with respect to the patents,
trademarks, service marks, trade names, copyrights, trade secrets, licenses,
information, and proprietary rights and processes of any other person or entity.
The Company has not received any communications alleging that the Company has
violated or, by conducting its business as proposed, would violate any of the
patents, trademarks, service marks, trade names, copyrights, trade secrets, or
other proprietary rights or processes of any other person or entity. The Company
is not aware that any of its employees is obligated under any contract
(including licenses, covenants, or commitments of any nature) or other
agreement, or subject to any judgment, decree, or order of any court or
administrative agency, that would interfere with the use of such employee's best
efforts to promote the interests of the Company or that would conflict with the
Company's business as proposed to be conducted. Neither the execution nor
delivery of this Agreement, nor the carrying on of the Company's business by the
employees of the Company, nor the conduct of the Company's business as proposed,
will, to the best of the Company's knowledge, conflict with or result in a
breach of the terms, conditions, or provisions of, or constitute a default
under, any contract, covenant, or instrument under which any of such employees
is now obligated.

          4.14 Employees; Employee Compensation.  To the best of the Company's
               --------------------------------
knowledge, there is no strike, or labor dispute or union organization activities
pending or threatened between it and its employees.  None of the Company's
employees belongs to any union or collective bargaining unit.  To the best of
its knowledge, the Company has complied in all material respects with all
applicable state and federal equal opportunity and other laws related to
employment.  To the best of the Company's knowledge, no employee of the Company
is or will be in violation of any judgment, decree, or order, or any term of any
employment contract, patent disclosure agreement, or other contract or agreement
relating to the relationship of any such

                                       35
<PAGE>

employee with the Company, or any other party because of the nature of the
business conducted or to be conducted by the Company or to the use by the
employee of his best efforts with respect to such business. The Company is not
aware that any officer or key employee, or that any group of key employees,
intends to terminate their employment with the Company, nor does the Company
have a present intention to terminate the employment of any of the foregoing.

          4.15 Tax Returns, Payments, and Elections.  The Company has filed all
               ------------------------------------
tax returns and reports as required by all applicable state and Federal laws.
These returns and reports are true and correct in all material respects.  The
Company has paid all taxes and other assessments due, except those contested by
it in good faith; provided that for such contested taxes, the Company has
maintained an adequate reserve.  The provision for taxes of the Company as shown
in the Financial Statements is adequate for taxes due or accrued as of the date
thereof.  The Company has not elected pursuant to the Internal Revenue Code of
1986, as amended ("Code"), to be treated as an S corporation or a collapsible
corporation pursuant to Section 1362(a) or Section 341(f) of the Code, nor has
it made any other elections pursuant to the Code (other than elections that
relate solely to methods of accounting, depreciation, or amortization) that
would have a material effect on the business, properties, prospects, or
financial condition of the Company.  The Company has never had any tax
deficiency proposed or assessed against it and has not executed any waiver of
any statute of limitations on the assessments or collection of any tax or
governmental charge.  None of the Company's federal income tax returns and none
of its state income or franchise tax or sales or use tax returns has ever been
audited by governmental authorities.  Since the date of the Financial
Statements, the Company has made adequate provisions on its books of account for
all taxes, assessments, and governmental charges with respect to its business,
properties, and operations for such period.  The Company has withheld or
collected from each payment made to each of its employees, the amount of all
taxes, including, but not limited to, federal income taxes, Federal Insurance
Contribution Act taxes and Federal Unemployment Tax Act taxes required to be
withheld or collected therefrom, and has paid the same to the proper tax
receiving officers or authorized depositories.

          4.16 Insurance.  The Company has in full force and effect fire and
               ---------
casualty insurance policies, with extended coverage, sufficient in amount
(subject to reasonable deductibles) to allow it to replace any of its properties
that might be damaged or destroyed.  The

                                       36
<PAGE>

Company has in full force and effect products liability and errors and omissions
insurance in amounts customary for companies similarly situated.

          4.17 Environmental and Safety Laws. To the best of its knowledge, the
               -----------------------------
Company is not in violation of any applicable statute, law, or regulation
relating to the environment or occupational health and safety (including without
limitation the Federal Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended) and to the best of its knowledge, no material
expenditures are or will be required in order to comply with any such existing
statute, law, or regulation.

          4.18 Disclosure.  The Company has provided the Purchaser with all the
               ----------
information reasonably available to it that the Purchaser has requested for
deciding whether to purchase the Shares.  To the best of the Company's
knowledge, neither this Agreement nor any other written statements or
certificates made or delivered in connection herewith contains any untrue
statement of a material fact or omits to state a material fact necessary to make
the statements herein or therein not misleading.

          SECTION 5.  Representations, Warranties and Covenants of the
                      ------------------------------------------------
Purchaser.
---------

          5.1. The Purchaser represents and warrants to, and covenants with, the
Company, as of the date hereof and as of the Closing Date, that: (i) the
Purchaser is an "accredited investor" as defined in Regulation D under the
United States Securities Act of 1933, as amended (the "Securities Act"); and
also is knowledgeable and experienced in making investments in private placement
transactions such as the purchase of the Preferred Shares; (ii) the Purchaser is
knowledgeable, sophisticated and experienced in making, and is qualified to
make, decisions with respect to investments in securities presenting an
investment decision like that involved in the purchase of the Shares, including
investments in securities issued by companies comparable to the Company, and has
requested, received, reviewed and considered all information it deems relevant
in making an informed decision to purchase the Shares; (iii) the Purchaser is
acquiring the Shares set forth above for its own account for investment and with
no present intention of distributing any of such Shares, and no arrangement or
understanding exists with any other person regarding the distribution of any of
such Shares; (iv) the Purchaser will not, directly or indirectly, voluntarily
offer, sell, pledge, transfer or otherwise dispose of (or solicit

                                       37
<PAGE>

any offers to buy, purchase or otherwise acquire or take a pledge of) any of the
Shares except (a) in the event the Shares are registered pursuant to an
effective registration statement under the Securities Act, (b) upon delivery of
an opinion of counsel (which shall be in form and substance reasonably
satisfactory to the Company) that such registration is not required, (c) in
connection with a sale, transfer or other disposition made pursuant to Section
144(k) of the Securities Act or (d) to an Affiliate of the Purchaser provided
that (i) in each of cases (a), (c) and (d) set forth above no opinion of counsel
shall be required and (ii) such offer, sale, pledge or transfer does not
otherwise violate the terms of this Agreement; and (v) the Purchaser has had an
opportunity to ask questions and receive answers from the management of the
Company regarding the Company, its business and the offering of the Shares.

          5.2. The Purchaser further represents and warrants to, and covenants
with, the Company that (i) the Purchaser has full right, power, authority and
capacity to enter into this Agreement and the Registration Rights Agreement and
to consummate the transactions contemplated hereby and has taken all necessary
action to authorize the execution, delivery and performance of this Agreement
and the Registration Rights Agreement, and (ii) upon the execution and delivery
of this Agreement and the Registration Rights Agreement, this Agreement and the
Registration Rights Agreement shall constitute valid and binding obligations of
the Purchaser enforceable in accordance with their terms.

          5.3. The Purchaser acknowledges and understands that there is no
public market for the Shares and that the Purchaser must bear the economic risk
of its investment in the Shares for an indefinite period of time because the
Shares have not been registered under the Securities Act and, therefore, cannot
be sold unless subsequently registered under the Securities Act or an exemption
from such registration is available.  The certificates representing the Shares
issued to Purchaser will bear a legend in substantially the following form:

          THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
          UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
          "SECURITIES ACT"). SUCH SECURITIES MAY NOT BE OFFERED, SOLD,
          TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF, IN THE
          ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR AN
          OPINION OF COUNSEL (WHICH SHALL BE IN FORM AND SUBSTANCE REASONABLY
          SATISFACTORY TO THE COMPANY), THAT SUCH

                                       38
<PAGE>

          REGISTRATION IS NOT REQUIRED, UNLESS SUCH SALE, TRANSFER OR OTHER
          DISPOSITION IS MADE PURSUANT TO RULE 144(K) OF THE SECURITIES ACT, IN
          WHICH CASE SUCH SALE, TRANSFER OR OTHER DISPOSITION MAY BE MADE AND NO
          OPINION OF COUNSEL SHALL BE REQUIRED.

The Company agrees to remove such legend from the certificates representing the
Shares issued to Purchaser at such time as such Shares may be legally sold under
Rule 144 of the Securities Act (or any successor rule) without registration
under the Securities Act, at the request of the Purchaser and upon receipt from
the Purchaser of an opinion, which shall be in form and substance reasonably
satisfactory to the Company, that such legend may be removed.

     The Purchaser agrees that any sale, transfer, pledge, hypothecation or
other disposition of the  Shares shall be made in compliance with such legend
and the requirements set forth in Section 2.2.

     SECTION 6.  Survival of Representations, Warranties and Agreements.
                 ------------------------------------------------------
Notwithstanding any investigation made by any party to this Agreement, all
covenants, agreements, representations and warranties made by the Company and
the Purchaser herein shall survive the execution of this Agreement, the delivery
to the Purchaser of the Shares being purchased, and the payment therefor.

     SECTION 7.  No Fee.  The parties hereto hereby represent that there are no
                 ------
brokers or finders entitled to compensation in connection with the transactions
contemplated hereby.

     SECTION 8.  Notices.  All notices, requests, consents and other
                 -------
communications hereunder shall be in writing, shall be addressed to the
receiving party's address set forth below or to such other address as a party
may designate by notice hereunder, and shall be either (i) delivered by hand,
(ii) made by telex, telecopy or facsimile transmission, (iii) sent by overnight
courier, or (iv) sent by registered or certified mail, return receipt requested,
postage prepaid:

          (a)    if to the Company, to:

                 Orchid BioSciences, Inc.
                 303 College Road East

                                      39
<PAGE>

                 Princeton, NJ 08543
                 USA
                 Facsimile: (609) 750-22-50
                 Attn:  President

                 with a copy to:

                 Mintz, Levin, Cohn, Ferris,
                 Glovsky and Popeo, P.C.
                 One Financial Center
                 Boston, Massachusetts 02110
                 USA
                 Facsimile: (617) 542-22-41
                 Attn: Jeffrey M. Wiesen, Esq.

          (b)    if to the Purchaser, to:

                 NEN Life Science Products, Inc.
                 549 Albany Street
                 Boston, MA 02118
                 Facsimile: 617-542-8463
                 Attn: President

                 With a courtesy copy to:
                 NEN Life Science Products, Inc.
                 549 Albany Street
                 Boston, MA 02118
                 Facsimile: 617-542-8463
                 Attn: Company Secretary

 All notices, requests, consents and other communications hereunder shall be
deemed to have been given either (i) if by hand, at the time of the delivery
thereof to the receiving party at the address of such party set forth above,
(ii) if made by telex, telecopy or facsimile transmission, at the time that
receipt thereof has been acknowledged by electronic confirmation or otherwise,
(iii) if sent by overnight courier, on the next business day following the day
such notice is delivered to the courier service, or (iv) if sent by registered
or certified mail, on the 5th business day following the day such mailing is
made.

                                       40
<PAGE>

    SECTION 9.   Changes.  Any term of this Agreement may be amended or
                 -------
compliance therewith waived only with the written consent of both parties
hereto.

     SECTION 10. Assignment.  The rights and obligations under this Agreement
                 ----------
may not be assigned by either party hereto without the prior written consent of
the other party; provided, that such rights and obligations may be assigned by
the Purchaser to a Permitted Transferee (as defined herein).

     SECTION 11. Benefit.  All statements, representations, warranties,
                 -------
covenants and agreements in this Agreement shall be binding on the parties
hereto and shall inure to the benefit of the respective successors and permitted
assigns of each party hereto.  Nothing in this Agreement shall be construed to
create any rights or obligations except among the parties hereto, and no person
or entity shall be regarded as a third-party beneficiary of this Agreement.

     SECTION 12. Expenses.  Each of the parties hereto shall pay its own fees
                 --------
and expenses (including the fees of any attorneys, accountants, appraisers or
others engaged by such party) in connection with this Agreement and the
transactions contemplated hereby whether or not the transactions contemplated
hereby are consummated.

     SECTION 13. No Waiver; Cumulative Remedies.  No failure or delay on the
                 ------------------------------
part of any party to this Agreement in exercising any right, power or remedy
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right, power or remedy preclude any other or further
exercise thereof or the exercise of any other right, power or remedy hereunder.
The remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

     SECTION 14. Headings.  The headings of the various sections of this
                 --------
Agreement have been inserted for convenience of reference only and shall not be
deemed to be part of this Agreement.

                                       41
<PAGE>

     SECTION 15. Severability.  In case any provision contained in this
                 ------------
Agreement should be invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby.

     SECTION 16. Governing Law.  This Agreement shall be governed by and
                 -------------
construed in accordance with (a) the internal laws of the State of New Jersey
without giving effect to principles of conflicts of law, and (b) United States
federal law.

     SECTION 17. Counterparts.  This Agreement may be executed in counterparts,
                 ------------
each of which shall constitute an original, but all of which, when taken
together, shall constitute but one instrument, and shall become effective when
one or more counterparts have been signed by each party hereto and delivered to
the other parties.

     SECTION 18. Further Assurances.  From and after the date of this
                 ------------------
Agreement, upon the request of the Purchaser or the Company, the Company and the
Purchaser shall execute and deliver such instruments, documents and other
writings as may be reasonably necessary or desirable to confirm and carry out
and to effectuate fully the intent and purposes of this Agreement and the
Shares.

                                       42
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as
of the 16 day of February, 2000.

                                        ORCHID BIOSCIENCES, INC.

                                       By:______________________________________
                                              Dale Pfost

                                           Chairman and Chief Executive Officer

                                        NEN LIFE SCIENCE PRODUCTS, INC.

                                        By:_____________________________________
                                              Name:
                                              Title:

                                       43
<PAGE>

                                                                    Schedule 4.5
                                                                    ------------

                           Related Party Transaction
                           -------------------------

                                     None

                                                                   Schedule 4.12
                                                                   -------------

                             Material Liabilities
                             --------------------

The Board of Directors of the Company has approved the adoption of a Restated
Certificate of Incorporation and Amended and Restated By laws in anticipation of
a possible public offering by the Company, which documents will be submitted to
the stockholders of the Company for approval at the Annual Meeting of the
shareholders scheduled to be held in March 2000.

                                       44
<PAGE>

                                   Exhibit 1

                         REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this "Agreement") is made and entered
into as of February ____, 2000 by and among Orchid BioSciences, Inc., a Delaware
corporation (the "Company"), with principal offices at 303 College Road East,
Princeton, New Jersey 08540 and NEN Life Science Products Inc. (the
"Stockholder") with principal offices at 549 Albany Street, Boston, MA 02118.

                                   Recitals

     WHEREAS, the Company has issued to the Stockholder shares of its Common
Stock, par value per share (the "Common Stock"), pursuant to a Common Stock
Purchase Agreement dated as of the date hereof (the "Purchase Agreement"); and

     WHEREAS, among the conditions to the consummation of the transactions
contemplated by the Purchase Agreement is the execution and delivery of a
Registration Rights Agreement providing for the registration rights described
herein.

     NOW THEREFORE, in consideration of the foregoing and the mutual promises
herein contained the parties agree as follows:

                                   Agreement

1.   RESTRICTIONS ON TRANSFERABILITY OF SECURITIES; REGISTRATION RIGHTS

     1.1  Certain Definitions
          -------------------

     As used in this Agreement, the following terms shall have the meanings set
forth below:

     (a)  "Commission" shall mean the Securities and Exchange Commission or any
other federal agency at the time administering the Securities Act.

     (b)  "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, or any similar successor federal statute and the rules and regulations
thereunder, all as the same shall be in effect from time to time.

     (c)  "Holder" shall mean the Stockholder and any transferee to whom the
registration rights conferred by this Agreement have been transferred in
compliance with Section 1.2 and Section 1.8 hereof.

                                       45
<PAGE>

     (e)  "Registrable Securities" shall mean (i) shares of Common Stock and
(ii) any shares of Common Stock issued as a dividend or other distribution with
respect to or in exchange for or in replacement of the shares referenced in (i)
above; provided however, that Registrable Securities shall not include any
shares of Common Stock (i) which have previously been registered or which have
been sold to the public, or which have been sold in a private transaction in
which the transferor's rights under this Agreement are not assigned, or (ii)
with respect to which the registration rights under this Agreement have
terminated under Section 1.15 of this Agreement.

     (f)  The terms "register," "registered" and "registration" shall refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act and the declaration or ordering of the
effectiveness of such registration statement.

     (g)  "Registration Expenses" shall mean all expenses incurred in effecting
any registration pursuant to this Agreement, including, without limitation, all
registration, qualification, and filing fees, printing expenses, escrow fees,
fees and disbursements of counsel for the Company, blue sky fees and expenses,
and expenses of any regular or special audits incident to or required by any
such registration, but shall not include Selling Expenses.

     (h)  "Restricted Securities" shall mean any Registrable Securities required
to bear the legends set forth in Section 1.2(b) hereof.

     (i)  "Rule 144" shall mean Rule 144 as promulgated by the Commission under
the Securities Act, as such Rule may be amended from time to time, or any
similar successor rule that may be promulgated by the Commission.

     (j)  "Rule 145" shall mean Rule 145 as promulgated by the Commission under
the Securities Act as such Rule may be amended from time to time, or any similar
successor rule that may be promulgated by the Commission.

     (k)  "Securities Act" shall mean the Securities Act of 1933, as amended, or
any similar successor federal statute and the rules and regulations thereunder,
all as the same shall be in effect from time to time.

     (l)  "Selling Expenses" shall mean all underwriting discounts, selling
commissions and stock transfer taxes applicable to the sale of Registrable
Securities and fees and disbursements of counsel for any Holder (other than the
fees and disbursements of counsel included in Registration Expenses).

1.2  Restrictions on Transfer
     ------------------------

     (a)  Each Holder agrees not to make any disposition of all or any portion
of the Registrable Securities unless and until (i) there is then in effect a
registration statement under the

                                       46
<PAGE>

Securities Act covering such proposed disposition and such disposition is made
in accordance with such registration statement or (ii) the transferee has agreed
in writing for the benefit of the Company prior to such transfer, and as a
condition thereof, delivers to the Company a written instrument by which such
transferee agrees to be bound by this Section 1.2, provided and to the extent
such Section is then applicable, and (A) such Holder shall have notified the
Company of the proposed disposition and shall have furnished the Company with a
detailed statement of the circumstances surrounding the proposed disposition,
and (B) if requested by the Company, such Holder shall have furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company, that
such disposition will not require registration of such shares under the
Securities Act. It is agreed that the Company will not require any of the
documents described in Section 1.2(a) above in connection with any transactions
made pursuant to Rule 144(k), except in unusual circumstances.

     Notwithstanding the provisions of 1.2(i) and (ii) above, no such
registration statement or opinion of counsel shall be necessary for a transfer
by a Holder which is (A) a partnership to its partners or retired partners (who
retire after the date hereof) in accordance with partnership interests, of (B)
to the Holder's family member or trust for the benefit of an individual Holder,
provided such transfer is without consideration and the transferee will be
subject to the terms of this Section 1.2 to the same extent as if he were an
original Holder hereunder.

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

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT").  SUCH
SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR
OTHERWISE DISPOSED OF, IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
UNDER SAID ACT OR AN OPINION OF COUNSEL WHICH SHALL BE IN FORM AND SUBSTANCE
REASONABLY SATISFACTORY TO THE COMPANY (WHICH MAY BE THE HOLDER'S IN-HOUSE
COUNSEL), THAT SUCH REGISTRATION IS NOT REQUIRED, UNLESS SUCH SALE, TRANSFER OR
OTHER DISPOSITION IS MADE PURSUANT TO RULE 144 OF THE SECURITIES ACT, IN WHICH
CASE SUCH SALE, TRANSFER OR OTHER DISPOSITION MAY BE MADE AND NO OPINION OF
COUNSEL SHALL BE REQUIRED, OR EXCEPT AS OTHERWISE PERMITTED UNDER A CERTAIN
COMMON STOCK PURCHASE AGREEMENT DATED MARCH __, 2000 BETWEEN THE COMPANY AND THE
ORIGINAL HOLDER, A COPY OF WHICH IS AVAILABLE UPON REQUEST FROM THE COMPANY FOR
INSPECTION.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE REGISTRATION
RIGHTS AGREEMENT DATED FEBRUARY __, 2000, AS AMENDED, A COPY OF WHICH IS
AVAILABLE FOR INSPECTION AT THE OFFICES OF THE

                                       47
<PAGE>

COMPANY OR MAY BE AVAILABLE UPON REQUEST.

     (c)  The Company shall be obligated to reissue promptly unlegended
Registrable Securities at the request of any Holder thereof if the Holder shall
have obtained an opinion of counsel (which counsel may be counsel to the
Company) reasonably acceptable to the Company to the effect that the Registrable
Securities proposed to be disposed of may lawfully be so disposed of without
registration, qualification or legend.

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

1.3  REGISTRATION ON FORM S-3
     ------------------------

     (a)  After the effective date of the Company's initial public offering (the
"Offering Effective Date"), the Company shall use its best efforts to qualify
for registration on Form S-3 or any comparable or successor form or forms.
After the Company has qualified for the use of Form S-3, the Holder of
Registrable Securities shall have the right, at any time on or after the first
anniversary of the Offering Effective Date, to request registrations on Form S-3
(such request shall be in writing and shall state the number of shares of
Registrable Securities to be disposed of and the intended methods of disposition
of such shares by such Holder); provided, however, that the Company shall not be
                                --------  -------
obligated to effect any such registration if (i) the Holder, together with the
holders of any other securities of the Company entitled to inclusion in such
registration, propose to sell Registrable Securities and such other securities
(if any) on Form S-3 at an aggregate price to the public of less than
$1,000,000; (ii) in a given twelve-month period, the Company has effected two
(2) such registrations, (iii) it is to be effected more than five (5) years
after the Offering Effective Date; or (iv) the Company shall have furnished to
such Holder a certificate signed by the President of the Company stating that in
good faith judgment of the Board of Directors of the Company, it would be
materially detrimental to the Company for such registration statement to be
filed in the near future and that it has, therefore, determined to defer the
filing of such registration statement, in which case the Company shall have the
right to defer such filing for a period of not more than one hundred eighty
(180) days after receipt of the request of the Holder, and, provided ,further,
                                                            --------  -------
that the Company shall not defer its obligation in this manner more than once in
any twelve-month period.

     (b)  The Company shall not be obligated to effect, or to take any action to
effect, any such registration pursuant to this Section 1.3:

               (i)   In any particular jurisdiction in which the Company would
          be required to execute a general consent to service of process in
          effecting such registration, qualification or compliance, unless the
          Company is already subject to service in such jurisdiction and except
          as may be required by the Securities Act;

                                       48
<PAGE>

               (ii)  After the Company has initiated two (2) such registrations
          for the Holder pursuant to this Section 1.3 (counting for these
          purposes only registrations which have been declared or ordered
          effective and pursuant to which securities have been sold and
          registrations which have been withdrawn by the Holder as to which the
          Holder has not elected to bear the Registration Expenses pursuant to
          Section 1.3(d) hereof and would, absent such election, have been
          required to bear such expenses);

               (iii) During the period starting with the date sixty (60) days
          prior to the Company's good faith estimate of the date of filing of
          and ending on a date one hundred eighty (180) days after the effective
          date of, a Company-initiated registration, including a demand
          registration initiated by the Company on behalf of any holder of
          demand registration rights; provided that the Company is actively
          employing in good faith all reasonable efforts to cause such
          registration statement to become effective.

     (c)  Subject to the foregoing, upon delivery by the Holder of the notice
described in Section 1.3(a) above, the Company shall (i) promptly give written
notice of the proposed registration to all other Holders (if any) and (ii) as
soon as practicable, use its best efforts to effect such registration
(including, without limitation, filing post-effective amendments, appropriate
qualifications under applicable blue sky or other state securities laws and
appropriate compliance with the Securities Act) as would permit or facilitate
the sale and distribution of all or such portion of such Registrable Securities
as are specified in such request, together with all or such portion of the
Registrable Securities of any other Holder joining in such request as are
specified in a written request received by the Company within twenty (20) days
after such written notice from the Company is mailed or delivered. The
registration statement filed pursuant to the request of the Holder may, subject
to the provisions of Sections 1.3(b) and 1.10 hereof, include other securities
of the Company with respect to which registration rights have been granted, and
may include securities of the Company being sold for the account of the Company.

     (d)  All Registration Expenses incurred in connection with any
registration, qualification or compliance pursuant to Section 1.3 hereof shall
be borne by the Company.

     (e)  If the registration requested pursuant to Section 1.3 is underwritten,
the rights of the Holder to registration pursuant to Section 1.3 shall be
conditioned upon such Holder's participation in such underwriting and the
inclusion of such Holder's Registrable Securities in the underwriting to the
extent provided herein. The Holder may elect to include in such underwriting all
or a part of its Registrable Securities. Notwithstanding the foregoing, the
Company shall not be obligated to register the Registrable Securities of any
Holder who fails promptly to provide to the Company such information as the
Company may reasonably request at the time to enable the Company to comply with
applicable laws or regulations or to facilitate preparation of the registration
statement.

     (f)  If the Company shall request inclusion in any registration pursuant to
Section 1.3

                                       49
<PAGE>

of securities being sold for its own account, or if other persons shall request
inclusion in any registration pursuant to Section 1.3, the Holder shall offer to
include such securities in the underwriting and may condition such offer on
their acceptance of the further applicable provisions of this Section 1
(including Section 1.10). The Company shall (together with the Holder and other
persons proposing to distribute their securities through such underwriting)
enter into an underwriting agreement in customary form with the representative
of the underwriter or underwriters. Notwithstanding any other provision of this
Section 1.3, if the representative of the underwriters advises the Holder in
writing that marketing factors require a limitation on the number of shares to
be underwritten, the number of shares to be included in the underwriting or
registration shall be allocated as set forth in Section 1.10 hereof. If a person
who has requested inclusion in such registration as provided above does not
agree to the terms of any such underwriting, such person shall be excluded
therefrom by written notice from the Company, the underwriter or the Holder. Any
Registrable Securities or other securities excluded shall also be withdrawn from
such registration. If shares are so withdrawn from the registration and if the
number of shares to be included in such registration was previously reduced as a
result of marketing factors pursuant to this Section 1.3(f), then the Company
shall offer to all persons who have retained rights to include securities in the
registration the right to include additional securities in the registration in
an aggregate amount equal to the number of shares so withdrawn, with such shares
to be allocated among such persons requesting additional inclusion in accordance
with Section 1.10.

1.4  Registration Procedures
     -----------------------

     In the case of each registration effected by the Company pursuant to
Section 1.3, the Company will keep each Holder advised in writing as to the
initiation of each registration and as to the completion thereof. At its
expense, the Company will use its best efforts to:

     (a)  Keep such registration effective for a period of one hundred twenty
(120) days or until the Holder has completed the distribution described in the
registration statement relating thereto, whichever first occurs; provided,
                                                                 --------
however, that such 120-day period shall be extended, if necessary, to keep the
-------
registration statement effective until all such Registrable Securities are sold,
provided that Rule 145, or any successor rule under the Securities Act, permits
an offering on a continuous or delayed basis, and provided further that
applicable rules under the Securities Act governing the obligation to file a
post-effective amendment permit, in lieu of filing a post-effective amendment
that (I) includes any prospectus required by Section 10(a)(3) of the Securities
Act or (II) reflects facts or events representing a material or fundamental
change in the information set forth in the registration statement, the
incorporation by reference of information required to be included in (I) and
(II) above to be contained in periodic reports filed pursuant to Section 13 or
15(d) of the Exchange Act in the registration statement;

     (b)  Prepare and file with the Commission such amendments and supplements
to such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement;

                                       50
<PAGE>

     (c)  Furnish such number of prospectuses and other documents incident
thereto, including any amendment of or supplement to the prospectus, as the
Holder from time to time may reasonably request;

     (d)  Notify each seller of Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event
as a result of which the prospectus included in such registration statement as
then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading or incomplete in the light of the
circumstances then existing, and at the request of any such seller prepare and
furnish to such seller a reasonable number of copies of a supplement to or an
amendment of such prospectus as may be necessary so that as thereafter delivered
to the purchasers of such shares such prospectus shall not include an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading or
incomplete in the light of the circumstances then existing;

     (e)  Cause all such Registrable Securities registered pursuant hereunder to
be listed on each securities exchange on which similar securities issued by the
Company are then listed;

     (f)  Provide a transfer agent and registrar for all Registrable Securities
registered pursuant to such registration statement and a CUSIP number for all
such Registrable Securities, in each case not later than the effective date of
such registration; and

     (g)  Otherwise use its best efforts to comply with all applicable rules and
regulations of the Commission, and make available to its security holders, as
soon as reasonably practicable an earnings statement covering the period of at
least twelve months, but not more than eighteen months, beginning with the first
month after the effective date of the Registration Statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act.

1.5  Indemnification
     ---------------

     (a)  The Company will indemnify each Holder, each of its officers,
directors and partners, legal counsel and accountants and each person
controlling such Holder within the meaning of Section 15 of the Securities Act,
with respect to which registration, qualification, or compliance has been
effected pursuant to this Section 1, and each underwriter, if any, and each
person who controls within the meaning of Section 15 of the Securities Act any
underwriter, against all expenses, claims, losses, damages, and liabilities (or
actions, proceedings, or settlements in respect thereof) arising out of or based
on any untrue statement (or alleged untrue statement) of a material fact
contained in any prospectus, offering circular, or other document (including any
related registration statement, notification, or the like) incident to any such
registration, qualification, or compliance or based on any omission (or alleged
omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, or any violation by the
Company of the Securities Act or any rule or regulation

                                       51
<PAGE>

thereunder applicable to the Company and relating to action or inaction required
of the Company in connection with any such registration, qualification, or
compliance, and will reimburse each such Holder, each of its officers,
directors, partners, legal counsel, and accountants and each person controlling
such Holder, each such underwriter, and each person who controls any such
underwriter for any legal and any other expenses reasonably incurred in
connection with investigating and defending or settling any such claim, loss,
damage, liability or action, provided that the Company will not be liable in any
such case to the extent that any such claim, loss, damage, liability or expense
arises out of or is based on any untrue statement or omission based upon written
information furnished to the Company by such Holder or underwriter specifically
for use in the preparation thereof. It is agreed that the indemnity agreement
contained in this Section 1.5(a) shall not apply to amounts paid in settlement
of any such loss, claim, damage, liability or action if such settlement is
effected without the consent of the Company (which consent shall not be
unreasonably withheld).

     (b)  Each Holder will, if Registrable Securities held by him are included
in the securities as to which such registration, qualification, or compliance is
being effected, indemnify the Company, each of its directors, officers, legal
counsel, and accountants and each underwriter, if any, of the Company's
securities covered by such a registration statement, each person who controls
the Company or such underwriter within the meaning of Section 15 of the
Securities Act, each other such Holder, and each of their officers, directors,
and partners, and each person controlling such Holder, against all expenses,
claims, losses, damages and liabilities (or actions, proceedings, or settlements
in respect thereof) arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in any prospectus, offering
circular, or other document (including any related registration statement,
notification, or the like) incident to any such registration, qualification, or
compliance, or based on any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and will reimburse the Company and such Holder,
directors, officers, partners, legal counsel, and accountants, persons,
underwriters, or control persons for any legal or any other expenses reasonably
incurred in connection with investigating and defending or settling any such
claim, loss, damage, liability, or action, in each case to the extent, but only
to the extent, that such untrue statement (or alleged untrue statement) or
omission (or alleged omission) is made in such registration statement,
prospectus, offering circular, or other document in reliance upon and in
conformity with written information furnished to the Company by such Holder
specifically for use in the preparation thereof; provided, however, that the
obligations of such Holder hereunder shall not apply to amounts paid in
settlement of any such claims, losses, damages, or liabilities (or actions in
respect thereof) if such settlement is effected without the consent of such
Holder (which consent shall not be unreasonably withheld); and provided that in
no event shall any indemnity under this Section 1.5 exceed the gross proceeds
from the offering received by such Holder.

     (c)  Each party entitled to indemnification under this Section 1.5 (the
"Indemnified Party") shall give notice to the party required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of such

                                       52
<PAGE>

claim or any litigation resulting therefrom, provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or any
litigation resulting therefrom, shall be approved by the Indemnified Party
(whose approval shall not unreasonably be withheld), and the Indemnified Party
may participate in such defense at such party's expense, and provided further
that the failure of any Indemnified Party to give notice as provided herein
shall not relieve the Indemnifying Party of its obligations under this Section
1.5 to the extent such failure is not prejudicial. No Indemnifying Party in the
defense of any such claim or litigation shall, except with the consent of each
Indemnified Party, consent to entry of any judgment or enter into any settlement
that does not include as an unconditional term thereof, the giving by the
claimant or plaintiff to such Indemnified Party of a release from all liability
in respect to such claim or litigation and no Indemnified Party shall consent to
entry of any judgment or settle such claim or litigation without the prior
written consent of the Indemnifying Party. Each Indemnified Party shall furnish
such information regarding itself or the claim in question as an Indemnifying
Party may reasonably request in writing and as shall be reasonably required in
connection with defense of such claim and litigation resulting therefrom.

     (d)  If the indemnification provided for in this Section 1.5 is held by a
court of competent jurisdiction to be unavailable to an Indemnified Party with
respect to any loss, liability, claim, damage, or expense referred to therein,
then the Indemnifying Party, in lieu to indemnifying such Indemnified Party
hereunder, shall contribute to the amount paid or payable by such Indemnified
Party as a result of such loss, liability, claim, damage, or expense in such
proportion as is appropriate to reflect the relative fault of the Indemnifying
Party on the one hand and of the Indemnified Party on the other in connection
with the statements or omissions that resulted in such loss, liability, claim,
damage, or expense, as well as any other relevant equitable considerations. The
relative fault of the Indemnifying Party and of the Indemnified Party shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission to state a material fact
relates to information supplied by the Indemnifying Party or by the Indemnified
Party and the parties' relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement or omission.

     (e)  Notwithstanding the foregoing, to the extent that the provisions on
indemnification and contribution contained in the underwriting agreement entered
into in connection with the underwritten public offering are in conflict with
the foregoing provisions, the provisions in the underwriting agreement shall
control.

1.6  Information by Holder
     ---------------------

     Each Holder of Registrable Securities shall furnish to the Company such
information regarding such Holder and the distribution proposed by such Holder
as the Company may reasonably request in writing and as shall be reasonably
required in connection with any registration, qualification, or compliance
referred to in this Section 1, except to the extent that the furnishing of such
information would violate any law or any contractual arrangement.  The Company
shall not be obligated to register the Registrable Securities of any Holder who
fails promptly to provide to the Company such information as the Company may
reasonably request

                                       53
<PAGE>

at the time to enable the Company to comply with applicable laws or regulations
or to facilitate preparation of the registration statement, including any
information that the Holder fails to provide on the basis that such information
would violate any law or any contractual arrangement.

1.7  Rule 144 Reporting
     ------------------

     With a view to making available the benefits of certain rules and
regulations of the Commission that may permit the sale of the Restricted
Securities to the public without registration, the Company agrees to use its
best efforts to:

     (a)  Make and keep public information regarding the Company available as
those terms are understood and defined in Rule 144 under the Securities Act, at
all times from and after ninety (90) days following the effective date of the
first registration under the Securities Act filed by the Company for an offering
of its securities to the general public;

     (b)  File with the Commission in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act
at any time after it has become subject to such reporting requirements;

     (c)  So long as a Holder owns any Restricted Securities, furnish to the
Holder forthwith upon written request a written statement by the Company as to
its compliance with the reporting requirements of Rule 144 (at any time from and
after ninety (90) days following the effective date of the first registration
statement filed by the Company for an offering of its securities to the general
public), and of the Securities Act and the Exchange Act (at any time after it
has become subject to such reporting requirements), a copy of the most recent
annual or quarterly report of the Company, and such other reports and documents
so filed as a Holder may reasonably request in availing itself of any rule or
regulation of the Commission allowing a Holder to sell any such securities
without registration.

1.8  Transfer or Assignment of Registration Rights
     ---------------------------------------------

     The rights to cause the Company to register securities granted to a Holder
by the Company under this Section 1 may be transferred or assigned by a Holder
only to a transferee or assignee of not less than 50,000 shares of Registrable
Securities (as presently constituted and subject to subsequent adjustments for
stock splits, stock dividends, reverse stock splits, and the like), provided
that the Company is given written notice at the time of said transfer or
assignment stating the name and address of the transferee or assignee and
identifying the securities with respect to which such registration rights are
being transferred or assigned, and, provided further, that the transferee or
assignee of such rights assumes the obligations of such Holder under this
Section 1 and prior to such transfer, as a condition thereof, delivers to the
Company a written instrument by which such transferee agrees to be bound by this
Agreement.

1.9  "Market Stand-Off" Agreement
      ---------------------------

                                       54
<PAGE>

     If requested by the Company and an underwriter of Common Stock (or other
securities) of the Company, a stockholder shall not sell or otherwise transfer
or dispose of any Common Stock (or other securities) of the Company held by such
stockholder (other than those included in the registration) during the one
hundred eighty (180) day period following the effective date of a registration
statement of the Company filed under the Securities Act, provided that:

     (a)  if the stockholder is not an "affiliate" (as defined under Rule 144)
of the Company nor does it hold beneficially or of record 10% or more of the
outstanding equity securities of the Company at the time a registration
statement is filed, then such agreement shall only apply to the first such
registration statement of the Company including, without limitation, the
Company's initial public offering, including securities to be sold on its behalf
to the public in an underwritten offering; and

     (b)  all officers and directors of the Company enter into similar
agreements.

     The obligations described in this Section 1.9 shall not apply to a
registration relating solely to employee benefit plans on Form S-8 or similar
forms that may be promulgated in the future, or a registration relating solely
to a Commission Rule 145 transaction on Form S-4 or similar forms that may be
promulgated in the future. The Company may impose stop-transfer instructions
with respect to the shares (or securities) subject to the foregoing restriction
until the end of said one hundred eighty (180) day period.

1.10 Allocation of Registration Opportunities
     ----------------------------------------

     In any circumstance in which all of the Registrable Securities and other
shares of Common Stock of the Company (including shares of Common Stock issued
or issuable upon conversion of share of any currently unissued series of
Preferred Stock of the Company) with registration rights (the "Other Shares")
requested to be included in a registration on behalf of the Holder or other
selling stockholders cannot be so included as a result of limitations of the
aggregate number of shares of Registrable Securities and Other Shares that may
be so included, the number of shares of Registrable Securities and Other Shares
that may be so included shall be allocated among the Holders and the other
selling stockholders requesting inclusion of shares pro rata on the basis of the
number of shares of Registrable Securities and Other Shares held by such Holders
and other selling stockholders, assuming conversion, that such Holders and
selling stockholders had requested to be included in the registration.

1.11 Delay of Registration Opportunities
     -----------------------------------

     No Holder shall have any right to take any action to restrain, enjoin, or
otherwise delay any registration as the result of any controversy that might
arise with respect to the interpretation or implementation of this Section 1.

1.12 Termination of Registration Rights
     ----------------------------------

                                       55
<PAGE>

     The right of any Holder to request registration or inclusion in any
registration pursuant to Section 1.3 shall terminate on such date after the
Offering Effective Date as all shares of Registrable Securities held or entitled
to be held upon conversion by such Holder may immediately be sold under Rule 144
during any ninety (90) day period.

2.   MISCELLANEOUS

2.1  Governing Law
     -------------

     This Agreement shall be governed in all respects by the laws of the State
of New Jersey, as if entered into by and between New Jersey residents
exclusively for performance entirely within New Jersey, and excluding that body
of laws pertaining to conflicts of laws.

2.2  Successors and Assigns
     ----------------------

     Except as otherwise expressly provided herein, the provisions hereof shall
inure to the benefit of and be binding upon the successors, assigns, heirs,
executors and administrators of the parties hereto.

2.3  Entire Agreement; Amendment: Waiver
     -----------------------------------

     This Agreement (including the Exhibits hereto) constitutes the full and
entire understanding and agreement between the parties with regard to the
subjects hereof and thereof. This Agreement supersedes any and all prior
understandings as to the subject matter of this Agreement.  Neither this
Agreement nor any term hereof may be amended, waived, discharged or terminated,
except by a written instrument signed by the Company and the Holders of at least
fifty percent (50%) of the Registrable Securities.  Any such amendment, waiver,
discharge or termination shall be binding on all the Holders, but in no event
shall the obligation of any Holder hereunder be materially increased, except
upon the written consent of such Holder.

2.4  Notices, etc.
     -------------

     All notices and other communications required or permitted hereunder shall
be in writing and shall be mailed by United States first-class mail, postage
prepaid, or delivered personally by hand or nationally recognized courier
addressed (a) if to the Stockholder, at the address set forth on the first page
of this Agreement, or at such other address as such holder or permitted assignee
shall have furnished to the Company in writing, or (b) if to the Company, at 303
College Road East, Princeton, New Jersey 08540, or at such other address as the
Company shall have furnished to each holder in writing. All such notices and
other written communications shall be effective on the date of mailing or
delivery.

2.5  Delays or Omissions
     -------------------

     No delay or omission to exercise any right, power or remedy accruing to any
Holder,

                                       56
<PAGE>

upon any breach or default of the Company under this Agreement shall impair any
such right, power or remedy of such Holder nor shall it be construed to be a
waiver of any such breach or default, or an acquiescence therein, or of or in
any similar breach or default thereafter occurring; nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or default
therefore or thereafter occurring. Any waiver, permit, consent or approval of
any kind or character on the part of any Holder of any breach or default under
this Agreement or any waiver on the part of any Holder of any provisions or
conditions of this Agreement must be made in writing and shall be effective only
to the extent specifically set forth in such writing. All remedies, either under
this Agreement or by law or otherwise afforded to any Holder, shall be
cumulative and not alternative.

2.6  Rights; Separability
     --------------------

     Unless otherwise expressly provided herein, a Holder's rights hereunder are
several rights, not rights jointly held with any of the other Holders. In case
any provision of the Agreement shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

2.7  Confidential Information
     ------------------------

     Each Holder acknowledges that the information received by them pursuant
hereto may be confidential and for its use only, and it will not use such
confidential information in violation of the Exchange Act or reproduce, disclose
or disseminate such information to any other person (other than its employees or
agents having a need to know the contents of such information, and its
attorneys), except in connection with the exercise of rights under this
Agreement, unless the Company has made such information available to the public
generally or such Holder is required to disclose such information by a
governmental body.

2.8  Titles and Subtitles
     --------------------

     The titles of the paragraphs and subparagraphs of this Agreement are for
convenience of reference only and are not to be considered in construing this
Agreement.

2.9  Counterparts
     ------------

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

                 [Remainder of page intentionally left blank]

                                       57
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Registration
Rights Agreement effective as of the day and year first above written.

ORCHID BIOSCIENCES, INC.

By ____________________________
   Name:
   Titles:

NEN LIFE SCIENCES PRODUCTS, INC.

By ____________________________
   Name:
   Title:

                                       58

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