Document:

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                                                                  EXHIBIT 10.42

                                SUPPLY AGREEMENT

                                     BETWEEN

                           AGILENT TECHNOLOGIES, INC.

                                       AND

                           ROSETTA INPHARMATICS, INC.

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

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Exhibit A   -   Array Products; Part Numbers; Pricing Schedule
Exhibit B   -   Array Lead Times in Calendar Days
Exhibit C   -   Array Product Geometric Specifications for [***]
Exhibit D   -   % Forecast/Order Flexibility & Baseline Forecast
Exhibit E   -   Agilent's Bioscience Products QA/QC Strategy
Exhibit F   -   Agilent BSP Quality Plan - Rosetta Inpharmatics
Exhibit G   -   [***]
Exhibit H   -   [***]

                                       ii

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

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                                SUPPLY AGREEMENT

     THIS SUPPLY AGREEMENT is entered into between AGILENT TECHNOLOGIES, INC., a
Delaware corporation ("AGILENT"), and ROSETTA INPHARMATICS, INC., a Delaware
corporation ("ROSETTA"), effective as of May 25, 2000 (the "EFFECTIVE DATE").

WHEREAS, Rosetta and Agilent have entered into that certain Gene Expression
Collaboration Agreement dated as of October 1, 1999 (the "COLLABORATION
AGREEMENT"); and

WHEREAS, Rosetta wishes to purchase from Agilent, and Agilent wishes to supply
to Rosetta, Arrays (as hereinafter defined) pursuant to the terms and conditions
contained herein.

NOW, THEREFORE, the parties hereto agree as follows:

1.        SCOPE OF AGREEMENT

1.1       TERM OF AGREEMENT.  This Agreement will commence as of the Effective
Date.

1.2       SUPPLY. Subject to Section 12, this Agreement shall have an initial
term of three (3) years, and shall be extended automatically for successive
additional one-year terms unless either party provides written notice of its
intent not to renew, no less than ninety (90) days prior to the expiration of
the initial term or any extension term.

2.        DEFINITIONS

The following capitalized terms will have these meanings throughout this
Agreement.

2.1       "AFFILIATE" of a party to this Agreement means any present or future
Entity that Controls, is Controlled by, or is under the Control of the same
Entity or Entities as the party, but only for so long as such Control continues.

2.2       "AGILENT OGT LICENSE" means the License Agreement dated December 6,
1999 between Agilent and Oxford Gene Technology [***]

2.3       "ARRAY" means an array of nucleic acids attached to a solid support.

2.4       "ARRAY PRODUCTS" means the Arrays listed and described in EXHIBIT A
to this Agreement.

                                       -1-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

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2.5       "CONTROL (S)(LED)" of an Entity means, the possession, directly or
indirectly, of more than fifty percent (50%) of the issued share capital or
other issued stock or securities of, or the voting power in, the Entity.

2.6       "COST OF GOODS" means manufacturing production cost as provided in
Agilent's Accounting and Financial Manual, a copy of which has been provided to
Rosetta pursuant to the Collaboration Agreement.

2.7       "DELIVERY DATE" means the date specified in an Order as the "Delivery
Date," which date shall in no event occur prior to lapse of the applicable Lead
Time related to the type of Arrays subject to such Order.

2.8       "DOCUMENTATION" means, as the context may require, any documentation
that Agilent makes available with the Array Products and any documentation that
Rosetta makes available with the [***]. To the extent any such documentation
is proprietary or confidential it must be marked as such prior to delivery.

2.9       "ENTITY" means any natural or legal person, partnership, joint
venture, association or governmental authority.

2.10      "FORECAST" means the written monthly estimate of Rosetta's Array
Product needs for the [***] period following delivery of such Forecast pursuant
to Section 3.3 hereof.

2.11      "KANBAN PART" means any Agilent part number identified on EXHIBIT B
(as may be amended at any time and from time to time during the term hereof)
with (i) a specific geometry and (ii) a specific oligonucleotide set design as
specified in an oligo set design file delivered to Agilent by Rosetta.

2.12      "LEAD TIME" means the period of time as specified on EXHIBIT B between
receipt by Agilent of an Order for a particular type of Array and shipment to
Rosetta of such Array.

2.13      "MARKS" means the trademarks, service marks, trademark and service
mark applications, trade dress, trade names, logos, insignia, symbols, designs
or other marks identifying a party or its products.

2.14      "ORDER" means a written or electronic notification issued to
Agilent by Rosetta for delivery of Array Products containing (i) part
numbers and oligo set identification numbers, (ii) the identified oligo set
design file (unless already in Agilent's possession), (iii) volume of each
item, (iv) the Delivery Date and (v) price per Array Product.

2.15      "PRODUCTS" means one or more Array Products as the context
requires.

2.16      "ROSETTA OGT LICENSE" means the License Agreement between Rosetta and
Oxford Gene Technology dated March 16, 2000 providing Rosetta certain rights
under the patents described therein.

                                       -2-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

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2.17      "SPECIFICATIONS" means the technical and functional requirements for
the Array Products as specified or referenced in EXHIBIT A, EXHIBIT C and
EXHIBIT F, as each thereof may be amended at any time and from time to time.
Specifications may also include other technical and/or functional requirements
of any such Array Products as the parties may agree in writing constitute
"Specifications."

2.18      "SUBSIDIARY" of a party means an Entity directly or indirectly
Controlled by a party.

2.19      "TECHNICAL INFORMATION" means Agilent's manufacturing information and
technology reasonably required to allow Rosetta to use the Array Products,
including supplier names, and component and/or reagent names and catalog
numbers.

3.        ORDER AND DELIVERY OF AGILENT ARRAY PRODUCTS

3.1       ORDERS. Each delivery of Array Products shall be initiated by an
Order. To the extent of any inconsistency between the terms of an Order and the
terms of this Agreement, the terms specified in this Agreement will control
and take precedence, and to the extent of any inconsistency between the terms
of an Order or the terms of this Agreement and the Collaboration Agreement,
the terms specified in the Collaboration Agreement will control and take
precedence.

3.2       ORDER ACKNOWLEDGMENT. An Order will be deemed to have been placed
and shall be automatically binding upon and enforceable against Agilent as of
the date of receipt of the Order by Agilent, but only to the extent that the
Order is within the scheduled percentage flexibility of the Forecast related
to that particular month as determined in accordance with EXHIBIT D and as
modified by the provisions of Section 3.3(b), if applicable. Agilent shall
reply to the Order within three (3) days of receipt thereof, providing an
acknowledgement confirming (i) part numbers and oligo set identification
numbers, (ii) the oligo set design file, (iii) volume of each item, (iv)
Delivery Dates and (v) prices per Array Product and total invoice amount for
the Order. For Orders exceeding Forecasts by more than the scheduled
percentage for any particular month, Agilent will have five days in which to
confirm the Order with respect to the excess. If an Order exceeds the
Forecast for any particular month by more than the scheduled percentage set
forth on EXHIBIT D, Agilent shall fabricate and deliver on or prior to the
Delivery Date that portion of the Order that does not exceed the Forecast by
more than such scheduled percentage, and as an accommodation to Rosetta, use
reasonable commercial efforts to fabricate and deliver on or prior to the
Delivery Date and thereafter the remainder of such Order. An Order may not be
amended except by a written amendment executed according to Section 15.10
below. Agilent will notify Rosetta within three (3) days if it determines
that it will not be able to meet any of the terms of a Order, including, but
not limited to, Delivery Dates. In addition, Agilent will notify Rosetta
promptly of any supply constraints (e.g., materials, vendor contracts,
facilities, capacity, or failure of the [***] of which it becomes aware or
significant commercial relationships with third-party purchasers of Array
Products that in any case may affect its ability to fabricate and deliver the
Array Products in

                                       -3-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

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accordance with the terms of any Order. Subject to Section 3.3(b), no such
notification by Agilent or acknowledgement of such notification by Rosetta
shall relieve Agilent of any liability for a breach of this Agreement or an
Order.

3.3       PURCHASE AND DELIVERY COMMITMENTS.

          (a) Rosetta shall, not later than the 10th day of each month, deliver
to Agilent a [***] rolling Forecast of its projected Orders for each month
during such period. Subject to Section 3.4, the quantities and product mix
listed in any Forecast shall be binding purchase obligations of Rosetta and,
provided the quantities contained in such Forecast are within the range of
Rosetta's scheduled flexibility determined in accordance with Table 1 and Table
2 (or Table 2A if a Financing Event (as defined in Section 3.3(d)) shall have
occurred) of EXHIBIT D for such month determined by reference to the most
recently delivered Forecast, Agilent shall be obligated to fabricate and deliver
such quantities and product mix. The foregoing obligations of Rosetta and
Agilent are subject to the baseline forecast amounts made pursuant hereto and
set forth on EXHIBIT D (as may be adjusted in the case of a Financing Event).

          (b) During the period beginning [***] (the [***] PRODUCTION
PERIOD"), the baseline capacity forecast of Table 2A of EXHIBIT D (as may be
adjusted pursuant to Section 3.3(d)) from which Rosetta's scheduled
flexibility is determined shall be adjusted to the extent the actual number
of [***] and to the extent that the average [***] For any time during the
[***] Production Period where the number of [***] the baseline forecast amount
shall be adjusted by multiplying the baseline number applicable (as may be
adjusted pursuant to Section 3.3(d)) in the case of a Financing Event) to
that time period as provided in EXHIBIT D by a fraction, the numerator of
which is the total number of [***] and the denominator of which is the total
number of [***] For any time during the [***] Production Period where the
"average" percent uptime of the [***] the baseline from which Rosetta's
scheduled flexibility is determined shall be adjusted by multiplying the
baseline number (as may be adjusted pursuant to Section 3.3(d)) otherwise
applicable to that time period [***] by a fraction the numerator of which is
the actual percent uptime during the affected time period and the denominator
of which is [***] Agilent shall promptly notify Rosetta of any periods where
the baseline capacity forecast is affected by a shortfall in [***] or in
scheduled uptime and provide Rosetta reasonable access to its production
records to verify such circumstances. During [***], if the actual number of
[***] or the average [***] uptime provided in the [***] the parties agree to
discuss in good faith necessary adjustments, if any, to the baseline capacity
forecast of Table 2 of EXHIBIT D.

                                       -4-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

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          (c) The quantities of Array Products set forth in Table 2 of
EXHIBIT D for [***] constitute Rosetta's initial Forecast to be provided
hereunder, and Rosetta hereby agrees to purchase, and Agilent hereby agrees
to deliver, the quantities of Array Products indicated in Table 2 for each
month for the period beginning [***], PROVIDED, HOWEVER, in the case of a
Financing Event, the quantities of Array Products set forth in Table 2A of
Exhibit D for [***] shall constitute Rosetta's Forecast from and after such
Financing Event, and Rosetta hereby agrees to purchase, and Agilent hereby
agrees to deliver, subject to Section 3.3(d) the quantities of Array Products
indicated in Table 2A beginning the first full calendar month commencing [***]
 days after consummation of the Financing Event to and including [***].
Rosetta hereby agrees to place the initial Order with respect to the [***]
quantities of Array Products set forth in Table 2 of EXHIBIT D not later than
[***].

          (d) If between [***], Rosetta successfully closes [***] then the
parties' obligations with respect to the [***]

3.4       ORDER CHANGES; CANCELLATIONS. Rosetta may postpone, decrease,
increase or cancel any Order with scheduled Delivery Dates subsequent to [***],
by written notice to Agilent to the extent such changes or cancellations are
not within the Lead Times specified in EXHIBIT B. In the event that Rosetta
shall change specific part numbers and/or volumes outside the Lead Time related
to any Array Product, Agilent shall accommodate such change, and in the event
Rosetta shall change specific part numbers and/or volumes within the Lead Time
related to any Array Product, Agilent shall exercise its reasonable commercial
efforts to accommodate such change, PROVIDED, HOWEVER, in the event of any
such change in either case Rosetta shall be obligated to pay not less than the
dollar commitment set forth in the Order which Rosetta desires to change. In
addition, in the event any change to the specific part numbers and/or volumes
related to an Order results in under utilization of Agilent's capacity
previously allocated to Rosetta, Agilent

                                       -5-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

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will promptly notify Rosetta thereof and thereafter will accept for fabrication
and delivery additional Orders by Rosetta in amounts to fill such under
utilized capacity.

          In the event of a failure to accept delivery of conforming Array
Products constituting at least [***] of any Forecast (as modified by the
scheduled flexibility set forth on EXHIBIT D and Section 3.3(d), Rosetta
shall pay a cancellation fee equal to the [***] for the Array Products
subject to such cancellation or for which Rosetta did not accept delivery.
The cancellation fees provided in this Section 3.4 are intended as liquidated
damages which are intended to fully compensate Agilent for costs incurred
related to the event giving rise to such damages, including [***] for items
partially manufactured, and losses suffered by Agilent due to interruptions
to manufacturing schedules and dedication of resources, including opportunity
costs and lost sales. The parties agree that such losses are difficult to
quantify but nevertheless real and that the cancellation fees are a fair
approximation of actual losses and are not a forfeiture or penalty. No
cancellation fees shall be due and payable in the event Rosetta shall
determine to cancel an Order pursuant to Section 5.2 hereof. Agilent may
request a commitment beyond standard Lead Times in order to smooth production
volumes.

3.5       FAILURE TO SUPPLY GUARANTEED AMOUNTS. Subject to Section 3.3(b),
Section 3.3(d), Section 11 and Exhibit D hereof, if Agilent fails to deliver
(i) at least [***] of the Array Products related to any particular Order placed
between the Effective Date and [***] and (ii) at least [***] of the Array
Products related to any particular Order placed between [***], in each case
within [***] after the Delivery Date set forth in the Order related to such
Array Products, Agilent shall use reasonable commercial efforts to deliver the
delayed portion of such Order as soon as practicable and shall sell such
portion of such Order in accordance with the next following paragraph.

          In the event such failure occurs:

          (i)     prior to [***], Agilent shall sell such Array Products at (A)
                  [***] of the original unit price specified therefor if such
                  Array Products are delivered within [***] after the Delivery
                  Date therefor, (B) [***] of the original unit price specified
                  therefor if such Array Products are delivered between [***]
                  after the Delivery Date therefor and (C) [***] of the original
                  unit price specified therefor if such Array Products are
                  delivered later than [***] after the Delivery Date therefor;

          (ii)    after [***], Agilent shall sell such Array Products at (A)
                  [***] of the original unit price specified therefor if such
                  Array Products are delivered within [***] after the Delivery
                  Date therefor, (B) [***] of the original unit price specified
                  therefor if such Array Products are delivered between [***]
                  after the Delivery Date therefor and (C) [***] of the original
                  unit price specified therefor if such Array Products are
                  delivered later than [***] after the Delivery Date therefor;
                  or

          (iii)   after [***], Agilent shall sell such Array Products at (A)
                  [***] of the original unit price specified therefor if such
                  Array Products are delivered within [***] after the Delivery
                  Date therefor and (B) [***] of the original unit price
                  specified therefor if

                                       -6-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

                  such Array Products are delivered later than [***] after
                  the Delivery Date therefor.

3.6       KANBAN PARTS. Agilent agrees to maintain during the term hereof the
Kanban Parts identified on Exhibit B hereto, as amended from time to time, at
the levels (calculated by reference to days of supply) set forth therein. In the
event that for whatever reason EXHIBIT B is amended to remove any Array Product
from the list of Kanban Parts, [***].

3.7       SHIPMENT REQUIREMENTS. Whenever reasonably possible, Orders shall be
shipped complete. In the event an Order cannot be shipped complete, Agilent
will ship the available Array Products unless directed by Rosetta to reschedule
shipment. By directing Agilent to reschedule shipping to a later date, Rosetta
waives any rights it has to a reduced price under Paragraph 3.5 provided
Agilent ships the delayed portion of such order on or before the rescheduled
shipping date.

3.8       PACKING LIST.  Each delivery of Array Products to Rosetta will be
accompanied by a packing list that contains at least:

          (a) The Order number and (where available) the Agilent part number
and the [***]

          (b) Information indicating the date of manufacture for each Array
Product;

          (c) The quantity of Array Products; and

          (d)  The date of shipment.

3.9       PACKAGING. Agilent shall preserve, package, handle, and pack all Array
Products so as to protect them from loss or damage in conformance with good
commercial practice, the Specifications, government regulations, and other
applicable standards.

3.10      RESPONSIBILITY FOR DAMAGE. Agilent will be liable for any loss or
damage due to its failure to properly preserve, package, handle, or pack the
products.

3.11      PERFORMANCE REVIEW.

          (a) Metrics. In order to facilitate management and performance of the
purchase and delivery of Array Products hereunder, Agilent and Rosetta will
monitor and review the performance metrics indicated below monthly and jointly
develop process improvements as necessary.

                                       -7-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

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<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
METRICS                      DATA SOURCE            FREQUENCY        CALCULATION TYPE                TARGET
----------------------------------------------------------------------------------------------------------------
<S>                          <C>                    <C>              <C>                             <C>
On-time delivery             Rosetta purchasing     Weekly           Percent of units received on    [***]
                             system                                  scheduled date
----------------------------------------------------------------------------------------------------------------
Quality conformance          In-house Tracking      Monthly          Measure:  % Conforming units,   [***]
                             System                                  % Conforming shipments
----------------------------------------------------------------------------------------------------------------
Forecast accuracy            In-house Tracking      Monthly          Percent of forecast ordered     [***]
                             System
----------------------------------------------------------------------------------------------------------------
</TABLE>

          (b)   Calculation.

          On-time delivery: Orders received on or up to two days prior to
          Delivery Date.

          Quality conformance: Percent of units received without
          non-conformances. Percent of shipments received with accurate packing
          list, invoice, and quantity.

          Forecast accuracy: Percent of Forecast for a month where orders were
          placed for delivery in the month, based on the forecast provided three
          months prior.

          (c)   Review.

          Performance to target should be reviewed on a regular basis, with a
          consistent set of representatives and following a standard agenda. The
          information below provides a basis for these meetings.

          Agenda

          -  Review of action items from last meeting
          -  Metric performance and corrective actions necessary
          -  Future plans - Rosetta
          -  Potential constraints - Agilent
          -  Any revisions required - Both parties
          -  Date, location and time for next performance review meeting

          Attendees and Frequency

          Reviews for the first [***] of the term will be held monthly, at
          alternating sites, on the first Tuesday of the first full week of the
          month. The attendee list will be as follows:

<TABLE>
<CAPTION>
                  AGILENT                                            ROSETTA
          <S>                                                        <C>

                                       -8-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

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          MANUFACTURING OPERATIONS MANAGER                      VP, OPERATIONS
          PRODUCTION MANAGER(S)                                 LOGISTICS MANAGER
          MATERIALS MANAGER                                     PLANNER/BUYER
          QUALITY MANAGER                                       SUPPLIER QUALITY ENGINEER
</TABLE>

          After the initial [***] the review will either be re-established at
          monthly intervals or in the case of superior performance, the interval
          for review meetings will be quarterly.

4.        PRICES AND PAYMENT TERMS

4.1       PRICES. The prices to be paid for purchase of the Array Products
during the term of this Agreement are stated in EXHIBIT A ("AGILENT ARRAY
PRICING SCHEDULE") and will be referenced in each Order, and Order
acknowledgement provided in accordance with Section 3.2 hereof. Prices shall
be as set forth in EXHIBIT A during the initial term of this Agreement,
except for price increases made in accordance with the provisions of Section
9.2. In addition to price increases imposed in accordance with Section 9.2,
prices may increase in any renewal term, PROVIDED, HOWEVER, such increases
not attributable to additional royalties shall not exceed [***]. In no event
will the prices set forth on the Agilent Array Pricing Schedule at any time
during the term (or any renewal term) hereof be [***] Agilent will invoice
Rosetta, in duplicate, accompanied (if applicable) by a bill of lading or
airway bill, for all Array Products purchased hereunder promptly upon
delivery of such Array Products pursuant to Section 5 below.

4.2       [***].

4.3       PAYMENT. The prices stated in the Agilent Array Pricing Schedule and
referenced in each Order do not include sales, use, excise or any other similar
taxes imposed by international, federal, state or local governments or shipping
charges but are inclusive of handling and all other charges unless otherwise
specifically provided in the Agilent Array Pricing Schedule or Order. Taxes and
shipping charges will be itemized separately in each invoice. Unless otherwise
provided in the Order, terms of payment will be net [***] from Rosetta's receipt
of the Array Product or invoice, whichever occurs later, subject to Rosetta's
acceptance of the Product and the resolution of any good faith disputes relating
to the invoiced amount. No payment of an invoice will be deemed to constitute
acceptance of the Array Product by Rosetta. If Rosetta disputes any invoice,
Rosetta will, within [***] of receipt of such invoice, notify Agilent that it
disputes the accuracy or appropriateness of such invoice and provide the basis
for such dispute.

5.        DELIVERY; ACCEPTANCE

5.1       SHIPPING AND DELIVERY.

          (a) Agilent will arrange for transportation of the Array Products to
the destination designated and in the manner described in the Order. Unless
otherwise specified in the Order, all freight expenses for delivery of the Array
Products will be prepaid by Agilent and added to Agilent's invoice to Rosetta
for payment by Rosetta.

                                       -9-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

          (b) Unless otherwise specified in the Order, the F.O.B. point will be
Rosetta's location as designated in the Order. Agilent will bear all risk of
loss or damages to any Array Product, and title to the Array Products will not
transfer to Rosetta until delivery of the Array Product to Rosetta's designated
location.

5.2       CERTIFICATES OF ANALYSIS/COMPLIANCE. Agilent will furnish to Rosetta
with each shipment of the Array Product, certificates of analysis or compliance,
as required by the Specifications, the Agilent Bioscience Products QA/QC
Strategy and the Agilent BSP Quality Plan-Rosetta Inpharmatics in each case as
set forth on EXHIBIT E and EXHIBIT F, respectively, certifying that such Array
Product meets the Specifications or similar document if required by law or
requested by Rosetta and all other documentation required by the Specifications
and such Exhibits.

6.        QUALITY CONTROL; LEGAL; REGULATORY REQUIREMENTS

6.1       QUALITY TESTING AND INSPECTION.

          (a) Agilent will cooperate with Rosetta in developing, and thereafter
Agilent will use, the Agilent BSP Quality Plan-Rosetta Inpharmatics defined in
EXHIBIT F of this Agreement for determining the quality of, and consistency of
manufacturing processes related to, Array Products shipped pursuant to this
Agreement as provided in the Specifications. No Array Products will be released
that do not meet the Specifications. Rosetta may, at its discretion, inspect and
test the Array Products delivered under this Agreement, using Rosetta's standard
testing procedures as well as any procedures set forth in the Specifications.
If, as a result of such Rosetta test procedures, Rosetta determines that any
Array Product fails to conform to the Specifications, Rosetta may reject such
Product. Rosetta will give notice of its rejection of any Array Product within
[***] of receipt of such Array Product, such notice providing specific and
detailed data demonstrating the failure of the Array Product rejected to conform
to the Specifications.

          (b) If, within [***] of delivery, any Array Product is found by
Rosetta to be defective in material or workmanship, Rosetta will have the
option to return the Array Product to Agilent for replacement or refund. Such
replacements shall be at Agilent's expense.

6.2       COMPLIANCE WITH LAW AND REGULATIONS. Agilent will (i) comply with all
international, national, state and local laws, ordinances, rules and regulations
applicable to the conduct of its business, its performance of its obligations
hereunder and the fabrication, sale and delivery of the Array Products and (ii)
maintain during the term of this Agreement, a manufacturing facility, personnel,
quality control and quality assurance programs and a documentation control and
change system that comply with good manufacturing practices.

                                       -10-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

6.3       FACILITY INSPECTION. Rosetta will have reasonable access at
reasonable times during normal business hours, subject to the parties' mutual
agreement, to Agilent's facilities for the purpose of inspecting Agilent's
testing and manufacturing processes to determine compliance with the Quality
Testing and Quality Assurance Strategy, or to review any documents relating
to the Array Products provided under this Agreement. Access for such purposes
will not be unreasonably withheld.

6.4       RECORDS RETENTION. All records relating to the manufacture of Array
Products and the fulfillment of each Order shall be retained by Agilent for a
period of at least [***] from the date of fabrication. Prior to the destruction
of any such records, written notice will be provided to Rosetta and Rosetta
will have the right to request and retain them.

6.5       CHANGES TO FACILITY OR MATERIALS. Agilent will notify Rosetta in
writing at least [***] prior to making any change in materials, fabrication
process or manufacturing facility that may affect the form, fit or function of
Array Products. Rosetta may require reasonable testing by Agilent to confirm
that such changes do not cause any Array Product to fail to meet the
Specifications.

6.6       PRODUCT RECALL. Agilent shall immediately notify Rosetta if any Array
Product is the subject of a recall, market withdrawal or correction and the
parties shall cooperate in the handling and disposition of any such recall,
market withdrawal or correction.

7.        [***]

7.1       PURCHASE AND SUPPLY OF [***]. As soon as practicable after the
Effective Date, Agilent shall purchase and Rosetta shall deliver [***],
manufactured and built according to the [***]. Upon delivery by Rosetta of
each such [***], Agilent shall pay to Rosetta [***].

7.2       USE AND OWNERSHIP OF [***]. The [***] will at all times after the
purchase thereof be the property of Agilent, PROVIDED, HOWEVER, no [***] may
be transferred to any third party without Rosetta's prior written consent. At
the end of the useful life of each [***].

7.3       ROSETTA SUPPORT. Rosetta will provide [***] to approximately [***]
Prior to the [***] Rosetta and Agilent each hereby agree to perform the
obligations set forth on EXHIBIT H and, in the event either party needs
assistance in connection therewith, the other party will exercise
commercially reasonable efforts to assist such party in order to timely
maintain the [***] Responsibility for any delay in the [***] will be borne by
both parties, subject to Section 3.3(b), and each party will be responsible
for and pay any and all costs, fees and expenses incurred by it in connection
with the performance of its obligations set forth on

                                       -11-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

EXHIBIT H. After [***] Agilent shall be responsible for and pay all costs
associated with [***], and Rosetta will use reasonable efforts to provide
support to Agilent in [***] After [***] if support is provided by Rosetta
on-site  at Agilent's facilities, Agilent will reimburse Rosetta for
reasonable expenses  and personnel time spent in providing such support.

8.        WARRANTIES; INTELLECTUAL PROPERTY LICENSES

8.1       WARRANTIES.

          (a) Agilent hereby warrants that all Array Products purchased by
Rosetta under this Agreement (i) will meet the Specifications, (ii) will for a
period of 90 days from the date of delivery be free from defects in workmanship,
materials and design, (iii) will be free from all liens and security interests,
(iv) have been developed, designed, labeled, packaged, manufactured, tested,
stored, supplied and sold in accordance with the terms of this Agreement and (v)
will have the benefit of the terms associated with the commercial warranty terms
provided to other customers upon finalization of such terms after the Effective
Date.

          (b) Rosetta hereby warrants [***]

8.2       DISCLAIMER. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, AGILENT
AND ROSETTA MAKE NO OTHER WARRANTIES, EITHER EXPRESS OR IMPLIED, REGARDING
THE ARRAY PRODUCTS [***] AS THE CASE MAY BE, OR REGARDING THEIR
MERCHANTABILITY OR THEIR FITNESS FOR ANY PARTICULAR PURPOSE.

8.3       DOCUMENTATION LICENSE. Agilent hereby grants Rosetta, and Rosetta
hereby grants to Agilent, a non-exclusive, non-transferable, fully paid up
license to use Documentation internally. Either party may reproduce such
Documentation only for archival purposes and must mark all such reproductions
(other than documents which Agilent acknowledges are public) with the other's
proprietary rights notices and confidential notices in such form as shall be
provided one to the other.

8.4       LIMITATIONS ON USE/SUPPLEMENTAL LICENSE. Rosetta hereby acknowledges
that the license granted to Agilent under the Agilent OGT License does not
permit Rosetta [***] In connection with such [***]Rosetta hereby represents
to Agilent that the right to [***] is licensed to Rosetta pursuant to the
Rosetta OGT License Agreement and, unless and until Rosetta notifies Agilent
otherwise, the Arrays purchased and to be purchased hereunder are being
ordered under Rosetta's "have made" rights pursuant to the Rosetta OGT
License. [***]

                                       -12-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

[***] The Array Products provided Rosetta hereunder are not to be [***]

9.        INTELLECTUAL PROPERTY INFRINGEMENT CLAIMS OF THIRD PARTIES

9.1       INDEMNIFICATION. Agilent's indemnification obligations and Rosetta's
notification obligations are as set out in Article 11 of the Collaboration
Agreement, which Article is incorporated herein by reference.

9.2       REMEDIES FOR INFRINGING PRODUCTS. Without prejudice to Section 9.1
above, if the fabrication, sale, delivery or use of any of the Array Products
provided or to be provided to Rosetta hereunder is enjoined (the "INFRINGING
PRODUCT"), Agilent will, at its sole expense and option:

          (a)  procure for Rosetta the right to continue using the Infringing
Product;

          (b)  replace the Infringing Product with a noninfringing product of
equivalent function and performance; or

          (c)  modify the Infringing Product to be noninfringing, without
detracting from function or performance.

If in procuring the right to continue using the Infringing Product under
Section 9.2(a), Agilent is required to make additional royalty payments, such
payments may be reflected in increased pricing of Array Products sold to
Rosetta. Notwithstanding Agilent's right to increase pricing as set forth
herein, if the total of such increases due to additional royalty payments
shall [***], Rosetta will have the right to (i) accept the increase, (ii)
renegotiate the price of the Infringing Product subject to the dispute
resolution provisions of the Collaboration Agreement or (iii) should any
dispute resolution fail to resolve the issue, terminate the Agreement if,
[***]. In the event that Agilent is determined to owe royalties
retrospectively, such retrospectively owed royalties will not be passed on to
Rosetta.

9.3       LIMITATION ON REMEDIES. [***] the parties hereto acknowledge and
agree that Rosetta shall have no further remedy against Agilent in respect of
the sale and delivery to Rosetta of an Infringing Product if Agilent's
reasonable commercial efforts, fail to provide any of the remedies provided
in Section 9.2.

                                       -13-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

9.4       INDEMNITY CLAIMS ARISING FROM ROSETTA ACTIONS. Except as otherwise
provided herein, Rosetta agrees to indemnify and hold Aglient harmless from
and against any losses, liabilities, damages and expenses (including
reasonable attorny's fees and costs) suffered or incurred, and claims made,
in connection with third party claims, demands, actions or other proceedings
for personal injuries or any product recall to the extent caused by or
arising out of (a) Rosetta's provision of services using Array Products, (b)
Rosetta's use of Array Products or (c) any other act or omission of Rosetta
in connection with the use of supply or provision of services in connection
with Array Products, except to the extent such losses, liabilities, damages
and expenses (including reasonable attorney's fees and costs) resulted from
negligence, recklessness or intentional misconduct of Agilent or its
officers, agents or employees.

9.5       LIMITATION ON INDEMNITY. Agilent will be relieved of its
indemnification obligations to Rosetta under this Article 9 to the extent
that a thrid party claim results from Rosetta's breach of this Agreement and
to the extent that a third party claim is made in connection with something
other than an Array Product [***], including, without limitation and by way
of example, claims arising from [***].

10.       COUNTRY OF MANUFACTURE AND DUTY DRAWBACK RIGHTS

10.1      COUNTRY OF ORIGIN CERTIFICATION. Upon Rosetta's request, Agilent
will provide Rosetta with an appropriate certification stating the country of
origin for any products provided to Rosetta hereunder, sufficient to satisfy
the requirements of the customs authorities of the country of receipt and any
applicable export licensing regulations.

10.2      COUNTRY OF ORIGIN MARKING. Agilent will mark each Array Product
with the country of origin. Agilent will, in marking such products, comply
with the requirements of the customs authorities of the country of receipt.

11.       FORCE MAJEURE

11.1      NO LIABILITY. Neither party will be liable for any failure to
fulfill any term or condition of this Agreement, other than the payment of
amounts owed hereunder, nor will such failure constitute a breach of or
default under this Agreement, if fulfillment has been delayed, hindered or
prevented by an event of force majeure, including any war, riot, strike,
lock-out or other industrial dispute, acts of the elements, acts or
compliance with any order of any government or agency thereof (including the
enactment of any new laws, rules or regulations), sabotage or industrial
accident.

11.2      NOTICE OF FORCE MAJEURE. Promptly following the date any event of
force majeure occurs, the party so affected will advise the other party in
writing of the date and nature of the event and the period of time such event
is expected to continue. During the existence of such event, the duties and
obligations of the parties under this Agreement will be suspended and the
parties will

                                       -14-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

take all reasonable action to ensure resumption of normal performance under this
Agreement as soon as possible.

11.3      TERMINATION RIGHT. If, as a result of any such force majeure event,
a party is unable fully to perform its obligations hereunder for a period of
[***] the other party will have the right to terminate this Agreement upon
written notice, effective the date of such notice, and, in the case of a
force majeure event preventing performance by Agilent, Rosetta may also
exercise its rights under Section 3.6 hereof.

12.       TERMINATION

12.1      TERMINATION EVENTS. This Agreement may be terminated as follows:

          (a)  The parties may terminate at any time by mutual consent.

          (b)  Either party may terminate this Agreement in the event of a
material breach by the other party provided that the defaulting party fails
to cure such breach within [***] after receipt of notice of such
breach, or in the case of a breach that is not capable of cure within
[***] if the defaulting party fails to begin cure within [***]
after receipt of notice of such breach or to continue to pursue such
diligently thereafter.

          (c)  Either party may terminate in the event of (i) the making by
either party of any general assignment for the benefit of creditors, (ii) the
filing by or against either party of a petition for reorganization or
arrangement under any law relating to bankruptcy (unless, in the case of a
petition filed against such party, the same is dismissed within [***] , (iii)
the appointment of a trustee or receiver to take possession of substantially
all of either party's assets, where possession is not restored to such party
within [***] or (iv) the attachment, execution or other judicial seizure of
substantially all of either party's assets, where such seizure is not
discharged within [***]

          (d)  Rosetta or its successor or assignee may terminate this
Agreement in the event any successor to all or substantially all of the
business and assets of Rosetta by merger, consolidation, reorganization or
otherwise elects not to cross-license to Agilent the intellectual property
rights described in Section 15.4(d).

12.2      EFFECT OF TERMINATION OR EXPIRATION. Neither party will be
relieved of any obligations incurred under this Agreement prior to the date of
such termination or expiration by the termination or expiration thereof, and the
provision of Sections 3.5, 4.1, 4.3, 5, 6, 7.2, 8, 9, 10, 13, 14, 15.1, and 15.3
will survive any such termination or expiration.

13.       CONFIDENTIAL INFORMATION

13.1      CONFIDENTIAL INFORMATION. During the Term, a party (the "RECIPIENT")
may receive or have access to certain information of the other party (the
"DISCLOSER") that is marked as "Confidential Information," including, though not
limited to, information or data concerning the

                                       -15-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

Discloser's products or product plans, business operations, strategies,
customers and related business information. The Recipient will protect the
confidentiality of Confidential Information with the same degree of care as
the Recipient uses for its own similar information, but no less than a
reasonable degree of care. Confidential Information may not be disclosed to
any third party and may only be used by those employees of the Recipient who
have a need to know such information for the purposes related to this Agreement.
 The parties acknowledge that all Technical Information and Forecasts are
deemed Confidential Information to be protected for a term of [***]
from the date of disclosure.

13.2      EXCLUSIONS. The foregoing confidentiality obligations will not
apply to any information that is (a) already known by the Recipient prior to
disclosure and not subject to any obligations of confidence (b) independently
developed by the Recipient prior to or independent of the disclosure, (c)
publicly available through no fault of the Recipient, (d) rightfully received
from a third party with no duty of confidentiality, and (e) disclosed by the
Recipient with the Discloser's prior written approval.

14.       LIMITATION OF LIABILITY

UNLESS OTHERWISE STATED IN THIS AGREEMENT, NEITHER PARTY WILL BE LIABLE FOR
ANY SPECIAL OR CONSEQUENTIAL DAMAGES OF THE OTHER ARISING OUT OF ANY
PERFORMANCE OR NONPERFORMANCE OF THIS AGREEMENT OR IN FURTHERANCE OF THE
PROVISIONS OR OBJECTIVES OF THIS AGREEMENT, REGARDLESS OF WHETHER SUCH
DAMAGES ARE BASED ON TORT, WARRANTY, CONTRACT OR ANY OTHER LEGAL THEORY, EVEN
IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. This limitation does not apply
to the indemnification obligations of each party in respect of third-part
claims set forth in Section 9 above.

15.       MISCELLANEOUS

15.1      NOTICES. All notices to be given under this Agreement must be in
writing addressed to the receiving party's designated recipient at the
address specified below. Notices are validly given upon the earlier of
confirmed receipt by the receiving party or five days after dispatch by
courier or certified mail, postage prepaid, properly addressed to the
receiving party. Notices may also be delivered by telefax and will be validly
given upon oral or written confirmation of receipt. Either party may change
its address for purposes of notice by giving notice to the other party in
accordance with these provisions.

          Rosetta:                   Rosetta Inpharmatics, Inc.
                                     12040 - 115th Ave. NE
                                     Kirkland, WA  98034
                                     Attn.:  President

              With a copy to:        Venture Law Group
                                     4750 Carillon Point

                                       -16-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

                                     Kirkland, WA 98033
                                     Attn: Mark J. Handfelt

            Agilent:                 Agilent Technologies, Inc.
                                     3500 Deer Creek Road
                                     Palo Alto, CA  94304
                                     Attn: General Manager,
                                     Bioscience Products

              With a copy to:        Agilent Technologies, Inc.
                                     Agilent Legal Department
                                     3000 Hanover Street
                                     Palo Alto, CA  94304
                                     Attn: General Counsel

15.2      EXHIBITS. Each EXHIBIT attached to this Agreement is deemed a part
of this Agreement and incorporated herein wherever reference to it is made
and may be amended from time to time only in accordance with Section 15.10.

15.3      INDEPENDENT CONTRACTORS. The relationship of the parties
established under this Agreement is that of independent contractors and
neither party is a partner, employee, agent or joint venturer of or with the
other.

15.4      ASSIGNMENT OR CHANGE OF CONTROL.

          (a) Neither this Agreement nor any right, license, privilege or
obligation provided herein may be assigned, transferred or shared by either
party without the other party's prior written consent. Notwithstanding the
foregoing, either party may assign this Agreement or any rights under this
Agreement in part or in whole, to any affiliate of that party or any person
or entity into which the assigning party has merged or which has otherwise
succeeded to all or substantially all of the business and assets to which
this Agreement pertains, by merger, consolidation, reorganization or
otherwise, provided the acquiring party complies with the provisions of this
Section 15.4.

          (b) The assigning party must ensure that such person or entity has
assumed in writing or by operation of law the assigning party's obligations
under this Agreement.

          (c) Each party agrees to give the other party prior notice of any
agreement to merge or transfer its business to a third party as of the date
of such agreement and to make any such agreement subject to the conditions
set forth in this Section.

          (d) To the extent any party seeking to assume the obligations and
receive the benefits of Rosetta hereunder owns directly or beneficially any
intellectual property rights which cover manufacture, sale or use of Array
Products, as an additional condition precedent to any assignment such party
shall provide Agilent a royalty-free fully paid up license to such technology.

                                       -17-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

          (e) This Agreement will be binding on the successors and permitted
assigns of the parties and the name of the party appearing herein will be
deemed to include the names of such party's successors or permitted assigns
to the extent necessary to carry out the intent of this Agreement.

          (f) Notwithstanding the foregoing Sections 15.4(a)-(e), this
Agreement may not be assigned by a party to a third party unless such party's
rights and obligations under the Collaboration Agreement are also assigned to
such third party.

15.5      NO WAIVER. The waiver of any term, condition, or provision of this
Agreement must be in writing and signed by an authorized representative of
the waiving party. Any such waiver will not be construed as a waiver of any
other term, condition, or provision except as provided in writing, nor as a
waiver of any subsequent breach of the same term, condition, or provision nor
shall the exercise by either party of any right, power or remedy preclude
other or further exercise thereof, or the exercise of any other right, power
or remedy.

15.6      REFERENCE TO DAYS. All references in this Agreement to "days" will,
unless otherwise specified herein, mean calendar days.

15.7      HEADINGS. The Section headings used in this Agreement are for
convenience of reference only. They will not limit or extend the meaning of
any provision of this Agreement, and will not be relevant in interpreting any
provision of this Agreement.

15.8      NO PUBLICATION. Neither party may publicize or disclose to any
third party, without the written consent of the other party, the terms of
this Agreement. Without limiting the generality of the foregoing sentence, no
press releases relating to this Agreement may be made without the mutual
written consent of the parties.

15.9      SEVERABILITY. If any provision in this Agreement is held invalid or
unenforceable by a body of competent jurisdiction, such provision will be
construed, limited or, if necessary, severed to the extent necessary to
eliminate such invalidity or unenforceability. The parties agree to negotiate
in good faith a valid, enforceable substitute provision that most nearly
effects the parties' original intent in entering into this Agreement or to
provide an equitable adjustment in the event no such provision can be added.
The other provisions of this Agreement will remain in full force and effect.

15.10     ENTIRE AGREEMENT. This Agreement together with the Collaboration
Agreement comprise the entire understanding between the parties with respect
to its subject matters and supersedes any previous communications,
representations, or agreements, whether oral or written. For purposes of
construction, this Agreement will be deemed to have been drafted by both
parties and no draft (or any differences between drafts and this Agreement)
shall be utilized in any manner, including as evidence by the parties intent
or the interpretation of this Agreement. No modification of this Agreement
(including any Exhibit) or any Order will be binding on either party unless
in writing and signed by an authorized representative of each party.

                                       -18-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

15.11     DISPUTE RESOLUTION. Disputes between the parties shall be subject
to the dispute resolution provisions of the Collaboration Agreement.

15.12     GOVERNING LAW. This Agreement and all questions, claims, disputes,
remedies or procedural matters shall be interpreted in accordance with and
governed exclusively by the laws of the State of California, U.S.A., without
regard to the principles of conflicts of law.

APPROVED AND AGREED TO:

AGILENT TECHNOLOGIES, INC.             ROSETTA INPHARMATICS, INC.

By: /s/ William Buffington             By: /s/ Stephen Friend
    -------------------------              -------------------------
      William Buffington                      Stephen Friend
      General Manager                         President

                                       -19-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

                                    EXHIBIT A

                 ARRAY PRODUCTS; PART NUMBERS; PRICING SCHEDULE

<TABLE>
<CAPTION>

-------------------------------------------------------------------------------------------------------------
Part Number             Description           Timeframe            Volume                Price per array
-------------------------------------------------------------------------------------------------------------
<S>                     <C>                   <C>                  <C>
[***]                   [***]                 [***]                [***]                 [***]
----------------------------------------------         ------------------------------------------------------
</TABLE>

                                       -20-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

                                   EXHIBIT B

                        ARRAY LEAD TIMES IN CALENDAR DAYS

Table 1: Lead Times:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
                             MANUFACTURING
PART TYPE                    TECHNOLOGY USED           INITIAL ORDER              SUBSEQUENT ORDERS

<S>                          <C>                        <C>                        <C>
---------------------------------------------------------------------------------------------------
Custom                       [***]                      [***]                      [***]
---------------------------------------------------------------------------------------------------
                             [***]                      [***]                      [***]
---------------------------------------------------------------------------------------------------
Kanban                       [***]                      [***]                      [***]
---------------------------------------------------------------------------------------------------
                             [***]                      [***]                      [***]
---------------------------------------------------------------------------------------------------
</TABLE>

     Lead Times associated with Array Products never before ordered by Rosetta
shall be as mutually agreed in good faith between the parties.

Table 2: List of Custom Parts:

----------------------------
PART NUMBER
----------------------------
[***]
----------------------------

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

Table 3: List of Kanban Parts: (None identified as of the Effective Date)

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
PART NUMBER                    [***]                   MINIMUM DAYS OF SUPPLY     ROSETTA PURCHASE
                                                       AT AGILENT                 TIMEFRAME
-----------------------------------------------------------------------------------------------------------
<S>                            <C>                     <C>                        <C>
                                                       [***]                      [***]
-----------------------------------------------------------------------------------------------------------
</TABLE>

                                      -21-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

                                    EXHIBIT C

                ARRAY PRODUCT GEOMETRIC SPECIFICATIONS FOR [***]

These specifications are intended solely for constraints on chip production QC
with regard to this Supply Agreement. The actual scanned and printed area on a
[***]

                                      -22-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

                                    EXHIBIT D

                % FORECAST/ORDER FLEXIBILITY & BASELINE FORECAST

TABLE 1. % FORECAST/ORDER FLEXIBILITY

                  MONTHS FROM DATE OF FORECAST

<TABLE>
<CAPTION>
   For
 Forecast
 Provided
  During
<S>                        <C>
2H'00       +%             [***]
            -%

1H'01       +%
            -%

2H'01       +%
            -%
</TABLE>

2H'00 means July 1, 2000 through December 31, 2000 1H'01 means January 1, 2001
through June 30, 2001 2H'01 means July 1, 2001 through the end of the term

TABLE 2. ROSETTA BASELINE FORECAST

                                     2000
                                     [***]

TABLE 2A. ROSETTA BASELINE FORECAST IN THE CASE OF A FINANCING EVENT

                                     2000
                                     [***]

Order flexibility for Rosetta will be derived by applying the appropriate upside
or downside percentage in Table 1. against the baseline forecast volume in Table
2 or Table 2A, as the case may be. The result is the maximum or minimum order
volume over the following [***] from the given monthly forecast. The intent of
the flexibility matrix is to allow month to month variability and longer term
capacity increases or decreases to Rosetta. The process is intended to prevent
compounding of forecasts up or down over time.

Table 2. Rosetta baseline forecast will contain a minimum [***] forward
projection of the current demand and capacity estimates for Rosetta and Agilent,
respectively. Changes to Table 2. may be made by mutual agreement between
Rosetta and Agilent on a semi-annual basis at a performance review meeting. The
only changes reviewed on a semi-annual basis are those in months [***] following
the date of the review meeting.

                                      -23-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

Table 2A. Upon consummation of a Financing Event, Table 2A will represent
Rosetta's baseline forecast, which forecast is subject to adjustments made in
accordance with Section 3.3(d). Additional changes to Table 2A may be made by
mutual agreement between Rosetta and Agilent on a semi-annual basis at a
performance review meeting. The only changes reviewed on a semi-annual basis are
those in months [***] following the date of the review meeting.

                                      -24-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

                                    EXHIBIT E

                  AGILENT'S BIOSCIENCE PRODUCTS QA/QC STRATEGY

     [***]

             OUTLINE OF AGILENT'S BIOSCIENCE PRODUCTS QUALITY SYSTEM

     [[***]

                                      -25-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

                                EXHIBIT E, CONT.

                                      [***]

                                      -33-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

                                EXHIBIT E, CONT.

               BIOSCIENCE PRODUCTS QUALITY SYSTEM - PROCEDURE LIST
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
<S>                                              <C>
[***]                                            [***]
-------------------------------------------------------------------------------
</TABLE>

                                      -33-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

                                    EXHIBIT F

                 AGILENT BSP QUALITY PLAN - ROSETTA INPHARMATICS

            (TO BE MUTUALLY AGREED AND THEN ADDED TO THIS AGREEMENT)

                                       -1-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

                                    EXHIBIT G

           [***]

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
                               METRIC                                  QUANTITY             UNIT
<S>                                                                    <C>                  <C>
---------------------------------------------------------------------------------------------------------
[***]                          [***]                                   [***]                [***]
</TABLE>

                                       -2-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

                                    EXHIBIT H

                          [***]

                                      [***]

                                       -3-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, AND
SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.<PAGE>

                                                                  EXHIBIT 10.43
                                                                   CONFIDENTIAL

                                 SUN CHANNEL AGREEMENT

                                     MASTER TERMS

THIS SUN MICROSYSTEMS, INC. CHANNEL AGREEMENT MASTER TERMS ("Master Terms"),
is made as of the 1st day of February, 2000 ("Effective Date") between Sun
Microsystems, Inc., with its address at 901 San Antonio Road, Palo Alto, CA
94303 ("Sun"), and Rosetta Inpharmatics, Inc., with its address at 12040
115th Avenue NE, Kirkland, WA 98034 ("GSP").

The parties agree as follows:

1.     SCOPE OF AGREEMENT

1.1    Exhibits and Schedules. These Master Terms describe the general terms
by which GSP may purchase Products and Services from Sun or from a Sun
authorized Master Reseller as set forth in an Exhibit. The specific terms
related to the purchase of Equipment, Software and Services are described in
the appropriate Product Exhibits or Service Exhibits and Schedules
(collectively referred to as "Exhibits"). Each Exhibit and these Master Terms
together constitute a separate agreement ("the Agreement"). Exhibits may be
added or deleted from time to time by the agreement of the parties, but GSP
is only authorized to purchase Products or Services hereunder to the extent
that one or more applicable Exhibit(s) is executed and in force.

1.2    Order of Precedence. The provisions of any Exhibit will take
precedence over these Master Terms, to the extent that they are inconsistent.

2.     DEFINITIONS

2.1    EQUIPMENT means the hardware components (may also be referred to as
"hardware") of Product and includes the media on which Software is pre-loaded.

2.2    PRODUCT(S) means any Equipment and Software delivered by Sun directly
or indirectly to GSP under the Agreement.

2.3    SERVICE(S) means any consulting, educational and support services
provided directly or indirectly to GSP under the Agreement.

2.4    SOFTWARE means any binary software (and related documentation)
provided by Sun directly or indirectly to GSP under the Agreement.

3.     TERM AND TERMINATION

3.1    Term. These Master Terms commence on the Effective Date and will
continue until the expiration or termination of all Exhibits. Each Exhibit
shall detail the commencement date of the Exhibit ("Exhibit Effective Date").

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT,
AND SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

3.2    Termination at Will. Either party may terminate these Master Terms for
convenience on written notice to the other party in the event that all
Exhibits have been terminated or have expired.

3.3    Termination for Cause. Either party may terminate these Master Terms
and any or all Exhibits.

(a) immediately, by written notice, upon material breach by the other party
of the Agreement, if such breach cannot be remedied;

(b)    by written notice, if the other party fails to cure any material
remediable breach of the Agreement within thirty (30) days of receipt of
written notice of such breach;

(c) automatically if GSP ceases to do business in the normal course, becomes
or is declared insolvent or bankrupt, is the subject of any proceeding
relating to the liquidation or insolvency of GSP which is not dismissed
within ninety (90) days or makes an assignment for the benefit of its
creditors;

(d)    immediately by written notice if GSP undergoes any change its
ownership or control (whether by way of voting or contract rights or
otherwise) or in its business, which change Sun considers material, in light
of the fact that GSP has been appointed by Sun because of its present
financial, technical and managerial conditions

3.4    Termination by Sun. In addition to the general reasons set forth in
Sections 3.2 and 3.3 above, Sun may terminate these Master Terms and any or
all Exhibits, immediately by written notice if GSP:

(a)    breaches any Sun Software license;

(b)    breaches Section 5 (Confidential Information) of these Master Terms;

(c)    breaches (or Sun reasonably believes GSP will breach) the U.S. Export
Administration Regulations, the U.S. Foreign Corrupt Practices Act or similar
laws or regulations of any other government; or

(d)    infringes or challenges the validity of any Sun copyright or Sun
Trademark (as defined herein).

3.5    Consequences of Termination or Expiration. Upon any expiration or
termination of the Agreement (or all of them), the following will occur:

(a)    all outstanding invoices and amounts owing from GSP to Sun will
thereupon become immediately due and payable;

(b)    Sun will [***]. If Sun [***]. Except in the case of [***].

                                      -2-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT,
AND SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

(c) Sun will have the right to cancel by written notice all or part of any
unfulfilled order previously accepted by Sun. To the extent that Sun does not
cancel any such other, the Agreement will continue to apply to such order;

(d) GSP will immediately return all Sun property under GSP's control
(including without limitation all Sun confidential information, schematics,
manuals, Software and Sun business plans) and remove, cancel and/or cease to
use the Sun Trademarks, any signs or other advertising materials referring to
Sun, or Products or Services or to GSP as an authorized reseller of Sun; and

(e) all of GSP's rights under the Agreement shall immediately cease and GSP
shall at no time in the future represent that it is an authorized reseller of
Sun or that it is in any way associated with Sun or Products or Services.

3.6 Survival. Rights and obligations under the Agreement which by their
nature should survive, will remain in effect after termination or expiration
of the Agreement.

3.7 No Liability for Termination or Expiration. The right of termination or
expiration provided herein is absolute. Each party waives and releases the
other from any claim to compensation or indemnity related to the permitted or
lawful termination of the business relationship established under the
Agreement.

4.  COMMERCIAL TERMS

4.1 Commercial terms for GSPs who purchase Products or Services from a Sun
authorized Master Reseller will be determined by GSP's agreement with such
Master Reseller. This Section 4.1 applies only to GSPs who purchase Products
or Services directly from Sun.

(a) Prices and Taxes. Prices and fees for Products and Services are exclusive
of all shipping and insurance charges, and do not include sales tax or any
other tax based upon the value of Products and/or Services. GSP is
responsible for payment of all such charges and taxes.

(b) Payments. If GSP satisfies Sun's credit requirements, payment terms are
net thirty (30) days from (i) the date of invoice for Products or Services,
or (ii) where GSP is purchasing Products, the date of shipment of Products,
whichever is the later. Otherwise terms are cash in advance of delivery. Sun
in its reasonable commercial judgment may place GSP on credit hold, in which
event, Sun will promptly inform GSP and may: i) with respect to Product
purchases, delay or reschedule GSP orders, and ii) with respect to Services,
discontinue delivery upon thirty (30) days' written notice to GSP. Interest
will accrue from the date on which payment is due at the lesser of fifteen
percent (15%) per annum or the maximum rate permitted by applicable law. GSP
will not be required to pay the disputed portion of any invoice, pending
resolution of that dispute, provided that written notice of the dispute has
been forwarded to Sun in writing within fifteen (15) days of the date of that
invoice.

4.2 Records and Audits. During the term of the Agreement and for a period of
five (5) years thereafter, GSP will maintain accurate records as necessary to
verify compliance with the Agreement. Sun may audit these records at any time
after reasonable written notice to verify compliance. Sun will conduct this
audit through an independent auditor of Sun's choice

                                      -3-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT,
AND SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

("Auditor"). Auditor will be bound to keep confidential the details of the
business affairs of GSP and to limit disclosure of the audit results to only
the sufficiency of the records, including, whether GSP is in compliance with
the terms of the Agreement and the amount, if applicable, of any required
additional payment or other payment adjustment. Except as described below,
Sun will bear all costs and expenses associated with the exercise of its
audit rights. Any errors in payments identified will be corrected by GSP by
appropriate adjustment in payment for the quarterly period during which the
error is discovered. In the event of an underpayment of more than [***] GSP
will reimburse Sun the amount of the underpayment, the reasonable charges of
the Auditor in performing the audit that identified the underpayment, and
interest on the overdue amount at the maximum allowable interest rate from
the date the obligation accrued.

5. CONFIDENTIAL INFORMATION

If either party desires that information provided to the other party under
the Agreement be held in confidence, that party will, prior to or at the time
of disclosure, identify the information in writing as confidential or
proprietary. The recipient may not disclose such confidential or proprietary
information, may use it only for purposes specifically contemplated in the
Agreement, and must treat it with the same degree of care as it does its own
similar information, but with no less than reasonable care. These obligations
do not apply to information which; a) is or becomes known by recipient
without an obligation to maintain its confidentiality; b) is or becomes
generally known to the public through no act or omission of recipient, or c)
is independently developed by recipient without use of confidential or
proprietary information. This section will not affect any other confidential
disclosure agreement between the parties.

6. LIMITED WARRANTIES

6.1 Product and Service Warranties. Any warranties for Products and Services
will be specified in the Exhibit(s).

6.2 Year 2000 Warranty.

(a) Sun warrants that specified versions of Products identified on Sun's
external Website (url: www.sun.com/cpl.html) as being Year 2000 compliant
("Listed Products") will not produce errors in the processing of date data
related to the year change from December 31, 1999 to January 1, 2000. Date
representation, including leap years, will be accurate when Listed Products
are used in accordance with their accompanying documentation, provided that
all hardware and software products used in combination with Listed Products
properly exchange date data with them.

(b) Versions of Products identified on Sun's external Web site as not yet
compliant, but which are scheduled to be made compliant, will become Listed
Products when remedial replacement plans, patches, software updates or
subsequent releases ("Y2K Fixes") are issued and properly installed.

(c) Other Products are not covered by these warranties.

                                      -4-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT,
AND SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC
<PAGE>

(d)   To the extent that Sun installs Y2K Fixes or performs other Services
under the Agreement for GSP, Sun respectively warrants that

(i)   upon installation of the Y2K Fixes, Products will become Listed
Products; and

(ii)  Services performed on Listed Products will not result in them ceasing
to be Listed Products.

(e)   GSP's sole and exclusive remedy for Sun's breach of these warranties
will be for Sun at its option: (i) to use commercially reasonable efforts to
repair Listed Products or provide Y2K Fixes, as the case may be; (ii) to
supply functionally equivalent Year 2000 compliant products; or (iii) if (i)
and (ii) are commercially unreasonable, to refund to GSP its net book value
respectively for non-compliant Listed Products or products for which
scheduled Y2K Fixes were not provided

6.3   DISCLAIMER OF WARRANTIES. UNLESS SPECIFIED IN THE AGREEMENT, ALL
EXPRESS OR IMPLIED CONDITIONS, REPRESENTATIONS AND WARRANTIES, INCLUDING ANY
IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR
NON-INFRINGEMENT, ARE DISCLAIMED, EXCEPT TO THE EXTENT THAT SUCH DISCLAIMERS
ARE HELD TO BE LEGALLY INVALID.

7     IMPORT AND EXPORT LAWS

All Products, Services and technical data delivered under the Agreement are
subject to U.S. export control laws and may be subject to export or import
regulations in other countries. GSP agrees to comply strictly with all such
laws and regulations and acknowledges that it has the responsibility to
obtain such licenses to export, re-export or import as may be required after
delivery to GSP.

8.    NUCLEAR APPLICATIONS

GSP acknowledges that Products and/or Services are not designed or intended
for use in the design, construction, operation or maintenance of any nuclear
facility. SUN DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY OF FITNESS FOR SUCH
USES

9.    TRADEMARKS

9.1   Trademarks. "Sun Trademarks" means all names, marks, logos, designs,
trade dress and other brand designations used by Sun in connection with
Products and Services. GSP may refer to Products and Services by the
associated Sun Trademarks provided that such reference is not misleading and
complies with Sun's Trademark and Logo Policies. GSP may not remove or alter
any Sun Trademarks, nor may it co-logo Products. GSP agrees that any use of
Sun Trademarks by GSP will inure to the sole benefit of Sun or its licensors.
GSP agrees not to incorporate any Sun Trademarks into GSP's trademarks,
service marks, company names, internet addresses, domain names, or any other
similar designations.

                                      -5-
*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT,
AND SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

92    Special Program Logos. GSP may use the special program logo, if any,
applicable to GSP's appointment, as established in any Exhibit only: (a) as
shown in the artwork provided by Sun; (b) in pre-sale marketing materials and
advertising, but not on goods, packaging, product labels, documentation or
other materials distributed with Products; (c) in a manner no more prominent
than GSP's corporate name and logo; and (d) otherwise in accordance with the
then current Sun Trademark and Logo Policies.

93    Use of GSP Information. Sun has the right to disclose and publish GSP's
name, address and profile information in connection with Sun's GSP programs.

10.   INTELLECTUAL PROPERTY CLAIMS

Sun will indemnify GSP for its reasonable expenses and will defend or settle
at Sun's option and expense any legal proceeding brought against GSP, to the
extent that it is based on a claim that Products infringe a trade secret, a
trademark, a mask work, a copyright or a patent Sun will pay all damages and
costs awarded by the court of which finally determines the case or are
incurred in the settlement thereof, provided that GSP: (a) gives written
notice of the claim promptly to Sun; (b) gives Sun sole control of the
defense and settlement of the claim; (c) provides to Sun all available
information and assistance; and (c) has not compromised or settled such
claim. If any Products or Materials are found to infringe, or in Sun's
opinion are likely to be found to infringe, Sun may elect to: (a) obtain for
GSP the right to use such Products and/or Materials; (b) replace or modify
such Products and/or Materials so that they become non-infringing, or if
neither of these alternatives is reasonably available, (c) remove such
Products and/or Materials and refund GSP's net book value for these Products
and/or Materials. Sun has no obligation under this Section 10 for any claim
which results from: (a) use of Products and/or Materials in combination with
any equipment, software or data not provided by Sun; (b) Sun's compliance
with designs or specifications of GSP; (c) modification of Products and/or
Materials; or (d) use of an allegedly infringing version of any Products
and/or Materials, if the alleged infringement could be avoided by the use of
a different version made available to GSP. THIS SECTION 10 STATES THE ENTIRE
LIABILITY OF SUN AND EXCLUSIVE REMEDIES OF GSP FOR CLAIMS OF INFRINGEMENT.

11.   LIMITATION OF LIABILITY

Except for obligations under Section 10 (Intellectual Property Claims), or
Section 12 (indemnity and Insurance) or breach of any applicable license
grant, and to the extent not prohibited by applicable law (i) each party's
aggregate liability to the other for claims relating to the Agreement,
whether for breach or in tort, including but not limited to negligence, will
be limited to the amount paid to Sun for Products, Services, or Materials
which are the subject matter of the claims, and (ii) neither party will be
liable for any indirect, punitive, special, incidental or consequential
damages in connection with or arising out of the Agreement (including loss of
business, revenue, profits, use, data or other economic advantage) however it
arises, whether for breach or in tort, even if that party has been previously
advised of the possibility of such damage. LIABILITY FOR DAMAGES WILL BE
LIMITED AND EXCLUDED EVEN IF ANY EXCLUSIVE REMEDY PROVIDED FOR IN THE
AGREEMENT FAILS OF ITS ESSENTIAL PURPOSE.

                                      -6-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT,
AND SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

12.   INDEMNITY AND INSURANCE

Except for claims arising under Section 10 (Intellectual Property Claims),
GSP will indemnify Sun and its suppliers from and against all claims,
liabilities, damages and costs (including legal fees and costs), relating to
(i) GSP's use or distribution of Products and Services under the Agreement or
(ii) any acts or omissions of GSP. GSP shall carry liability insurance to
protect Sun from all such claims, pay the premiums therefor, and deliver to
Sun, upon request, proof of such insurance (which shall require thirty (30)
days' written notice to Sun in event of modification or termination).

13.   FORCE MAJEURE

A party is not liable under the Agreement for non-performance caused by
events or conditions beyond that party's control, if the party makes
reasonable efforts to perform. This provision does not relieve either party
of its obligation to make payments then owing.

14.   WAIVER OR DELAY

Any express waiver or failure to exercise promptly any right under the
Agreement will not create a continuing waiver or any expectation of
non-enforcement.

15.   ASSIGNMENTS

Neither party may assign or otherwise transfer any of its rights or
obligations under the Agreement, without the prior written consent of the
other party, except that Sun may assign its right to payment, assign the
Agreement to an affiliated company, or subcontract the delivery of Services
or Products. If Sun elects to subcontract Service or Product delivery, Sun
will remain primarily responsible for delivery.

16.   RELATIONSHIP OF THE PARTIES

An Agreement is not intended to create a relationship such as a partnership,
franchise, joint venture, agency, or fiduciary or employment relationship.
Neither party may act in a manner which expresses or implies a relationship
other than that of independent contractor, nor bind the other party.

17.   NOTICES

All written notices required by the Agreement must be delivered in person or
by means evidenced by a delivery receipt or via email or website and will be
effective upon receipt.

18.   SEVERABILITY

If any provision of the Agreement is held invalid by any law or regulation of
any government or by any court or arbitrator, such invalidity will not affect
the enforceability of any other provisions.

                                      -7-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT,
AND SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

19.   GOVERNING LAW

Disputes which cannot be settled amicably will be governed by the laws of
California and controlling US Federal law. Choice of law rules of any
jurisdiction and the United Nations Convention on Contracts for the
International Sale of Goods will not apply.

20.   ENTIRE AGREEMENT

20.1  An Agreement (which Includes the applicable Exhibit) is the parties'
entire agreement relating to its subject matter. It cancels and supersedes
all prior or contemporaneous oral or written communications, proposals,
conditions, representations and warranties and prevails over any conflicting
or additional rents of any quote, order, acknowledgment, or other
communication between the parties relating to its subject matter.

20.2  No modification to the Agreement will be binding, unless in writing and
signed by an authorized representative of each party.

20.3  The provisions of this Agreement are not altered by the terms and
conditions of any other agreement GSP may have with Sun.

21.   SURVIVAL

Rights and obligations under this Agreement which by their nature should
survive, will remain in effect after termination or expiration.

IN WITNESS WHEREOF, THE DULY AUTHORIZED REPRESENTATIVES OF THE PARTIES HAVE
EXECUTED THESE MASTER TERMS AS OF THE EFFECTIVE DATE.

SUN MICROSYSTEMS, INC.                 GLOBAL SOLUTIONS PARTNER

By:  /s/                               By:
    ------------------------------         -----------------------------------

Name:  John J. King                    Name:
      ----------------------------           ---------------------------------

Title:  SR VP & COO                    Title:
       ---------------------------            --------------------------------

Date:  4/7/00                          Date:
      ----------------------------           ---------------------------------

                                      -8-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT,
AND SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

                                             SUN GSP AGREEMENT #________________

                                   EXHIBIT B

                              EQUIPMENT PRODUCTS

This Sun Equipment Exhibit ("Equipment Exhibit") is effective on February 1,
2000 ("Equipment Exhibit Effective Date") between Sun Microsystems Inc. and
GSP, and is an attachment to the Master Terms between Sun and GSP. The Master
Terms are an integral part of this Equipment Exhibit and are incorporated by
reference.

1     DEFINITIONS

A.    "End User" means the entity purchasing Equipment for its own use.

B.    "Guide" means the Sun GSP Reference Guide.

C.    "Master Reseller" means a designated Sun Authorized master reseller.

D.    "Price List" means the applicable Sun Price list current at the time of
execution of this Equipment Exhibit and any subsequent price changes made by
Sun.

E.    "Sun Funds" means Sun Solutions Development Funds.

2.    APPOINTMENT OF GSP

A.    Appointment.

(1)   Sun appoints GSP as a non-exclusive GSP ("GSP). GSP is authorized to
purchase available Product directly from Sun or from its designated Master
Reseller. Product must be (i) sold, leased or rented (collectively referred to
as "sold"); (ii) sold directly to End Users via personal contact web or
telesales basis; and (10) installed and supported on a face to face basis at an
End User site In the United States ("Authorized Sale"). GSP is permitted to
outsource services up to [***] of its purchases of Product under this Exhibit B.

(2)   The sale of Products to the Federal Government is prohibited unless GSP
executes a Government System (GSA) Agreement. GSP's primary business must at
all times be the sale and support of computer systems and related proprietary
solution.

(3)   GSP may distribute Products to End Users Indirectly through resellers
("resellers"), provided that GSP enters into and rigorously enforces a written
agreement under which each reseller agrees to:

(a)   resell Sun Products only as incorporated in systems directly to end users;

                                       -9-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT,
AND SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

(b)   comply with the terms of Paragraphs 7 (except 7(F) and 7(I)) and 8 of
this Equipment Exhibit and Paragraphs 6, 7, 8, 9, 10 and 11 in the Master
Terms as they apply to GSP, provided that End User support and maintenance
may be provided by GSP on Reseller's behalf;

(c)   identify Sun as a third party beneficiary of those End User obligations
related to Sun or Sun Products; and;

(d)   acknowledge that it is not entitled to any other benefits of this
Agreement

B.    Guide. Sun's GSP policies are detailed in its GSP Reference Guide located
at http://channel.sun.com/US/GSP represents that it has read the Guide and will
comply with all applicable rules and procedures. Sun may modify the Guide from
time to time upon thirty (30) day's Notice.

3.    SUN FUNDS

GSP will receive from Sun, Sun Funds on certain sales of Products computed at
Sun's list price, excluding Products not purchased for resale and Products that
GSP's Master Reseller did not purchase from Sun. Sun may modify this Section
upon thirty (30) days' Notice.

4     GSP ELIGIBILITY REQUIREMENTS. In order to maintain GSP status, the
following qualifications are mandatory at all times throughout the duration of
this Agreement. Periodic reviews will be conducted to assure compliance with
all requirements.

A.    The GSP's primary business model and revenue stream must be derived from
their custom solution, "Proprietary Solution" which is identified in the
Business Plan;

B.    100% of Sun Product sold (peripherals not included) must include the
Proprietary Solution (on same or separate Purchase Order);

C.    A GSP's solution can be either non-Sun hardware or software based;

D.    A GSPs hardware or software solution must be developed by GSP and cannot
be third party solution;

E.    The GSP must have a dedicated product engineering team or department that
engineers their solution;

F     The GSP agrees to make their product compatible with Sun hardware and the
Solaris operating environment (Including Java based applications) in the time
frame detailed in the Business Plan; and

G     The GSP agrees to offer, sell, and/or license their products to Sun end
users.

5.    BUSINESS PLAN

GSP has submitted a Business Plan to, and which has been reviewed by, Sun
(attached as Attachment B). GSP has represented to Sun that the Business Plan
accurately reflects the manner

                                      -10-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT,
AND SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

in which it intends to market and support Products. Either party may initiate
a review of the accuracy of GSP's Business Plan upon thirty (30) days'
notice, provided that Sun shall initiate no more than [***].

6.  ATTACHMENTS

The Attachments may be modified only upon the mutual consent of the parties,
except that Sun may modify Attachment C (Object Code License) at any time.
The current version of each Attachment is hereby incorporated by reference.

7.  GSP'S OBligations

A.  Sale and Support.  GSP shall use its best efforts to promote the sale of
Products, and shall purchase and maintain the demonstration equipment
identified in the Guide.  GSP shall provide to each End User, as detailed in
the Guide and the Business Plan, (1) complete pre- and post-Installation
support, including complete installation, training, and continuous technical
service and (ii) hardware and software maintenance support. The sale and
direct support of Products must be performed at all times by full-time
employees.  Training and certification may be secured directly from Sun or
from any Sun Authorized training provider.  Sun's support options are set out
in the Guide.

B.  Spare Parts.  The use of spare parts purchased under the authority
granted by this Agreement is strictly limited to (i) resale to any GSP's End
user for internal use, or (ii) the service of Products sold and installed by
GSP under this Agreement except that GSP may use such parts to service all of
an End users systems, if GSP has sold and installed at least [***] of the
systems for which service is being provided.

C.  Upgrades. The list price of upgrades is based upon the return to Sun of
specified parts from the system(s) being upgraded, as set out in the U.S.
Price List.  GSP is responsible for assuring that the specified parts are
received by Sun within thirty (30) days after shipment of the upgrade to GSP
If the specified parts are not timely received, Master Reseller or Sun will
invoice and GSP agrees to pay Master Reseller or Sun (net 30 days) for the
non-returned parts, the difference between the list price of the purchased
upgrade(s) and the list price of the upgraded system(s) if purchased new.

D.  GSP Documentation Business Records, and Reports. GSP shall furnish to its
End Users, at the time of delivery of Products, a sales receipt stating the
date of sale, and, if applicable, the serial number of Products sold. GSP
shall, during the term of this Agreement and for [***] years thereafter, keep
and maintain complete and accurate business records with respect to its
purchase and sale of all Products, including all documents relating to or
exchanged between GSP and its End users, Master Reseller and Sun. Sun may
review these records upon request.

GSP shall provide monthly Productivity Status Reports ("PSR's) to Sun All PSR
reports shall be Java-based PSR reports only, in accordance with the
Java-based PSR guidelines beginning at
url:http//channel.sun.com/US/policies/newpsrguide.html. GSP must include in
their report to Sun all sales by Resellers to End Users. Upon the Initial
failure to timely submit a complete PSR, Sun

                                     -11-
*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT,
AND SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

may cancel Sun Fund accruals and suspend participation in other
programs. Any subsequent failure to remedy or timely submit a PSR may result
in immediate termination of this Agreement.

E.  Indemnify and Insurance. GSP agrees to Indemnify and hold Sun harmless
from and against all claims from GSP's End Users or third parties arising out
of any acts and/or omissions of GSP or its employees or representatives. GSP
shall carry liability insurance to protect Sun from all such claims, pay the
premiums therefor, and deliver to Sun, upon request, proof of such Insurance
(which shall require thirty (30) days' written notice to Sun In event of
modification or termination).

F.  Fair Representation. GSP shall display, demonstrate, and represent
Products fairly and shall make no representations concerning Sun or its
Products which are false, misleading, or Inconsistent with those
representations set forth in promotional materials, literature and manuals
published and supplied by Sun. GSP shall comply with all applicable laws and
regulations in performing under this Agreement.

G.  Sun SPARC Only. Except as otherwise provided in willing by Sun, GSP shall
not sell, lease, or otherwise deal in any product based on SPARC
Architecture, unless such product (i) is a Sun Product or (ii) is a "laptop
system." A product is a "laptop" system if it is (i) transportable, (ii)
battery operated, (iii) under sixteen (16) pounds total weight including
case, and (iv) packaged without a CRT. GSP is not prohibited by this
Agreement from selling any product that does not contain the SPARC
Architecture.

H.  GSP shall purchase all Sun Products for resale directly from Sun or from
its designated Master Reseller unless an exception is granted by Sun in
writing. Purchase terms and conditions as may be agreed upon between GSP and
designated Master Reseller shall govern the purchase of Products from the
Master Reseller. Sun will permit GSP to change the identity of its designated
Master Reseller only once per year, by Notice (which shall include the
effective date of the transition), during the thirty (30) days' period prior
to each years Expiration Date.

No Simultaneous Orders. The Intention of the parties, and the goal of this
Agreement, is that GSP will not issue the same purchase orders for Products
from both Sun and Master Reseller with the intention that one order be
canceled in favor of the other order. GSP must not issue orders directly to
Sun and to a Master Reseller at the same time for the same Products. Failure
to comply with this section will be considered a material breach, and may
result in immediate termination of the Agreement. This section does not
otherwise affect terms and conditions regarding cancellations of or changes
to, orders that may exist In the Agreement or in any agreement with a Master
Reseller.

I.  Limited Warranty. GSP must provide a warranty to Its End Users at least
equivalent to the warranty provided by Sun. GSP agrees to indemnify Sun for
any liability or damages caused by GSP's provision of any other warranty.

J.  Failure to comply with any of the foregoing obligations will constitute a
material breach of this Agreement.

                                     -12-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT,
AND SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

8 LIMITED WARRANTY

8.1  GSP shall arrange for all Bid Users to be notified that they will
receive the following warranty ("the Warranty") directly from Sun. This
Warranty will be included in Sun product packaging. The duration of the
Warranty, applicable response times, start dates and other Warranty details
are specified at http://channel.sun.com/service/global/warranty/ ("the
Warranty Web Page) and are applicable as at the date an order is accepted, or
at End Users option, the Effective Date of this Agreement. Any subsequent
changes to Warranty details specified on the Warranty Web Page will not apply
to Products purchased by End Users prior to any change. GSP is responsible
for notifying its end users that they will receive the following warranty
("the Warranty") directly from Sun.

8.2 Subject to 8.1 above, Sun warrants that

(a) the Hardware will be free from defects in materials and workmanship.

(b) The Software will be warranted either according to the warranty set
forth in 8.2 (c) below or the warranty set out at the Warranty Web-Page,
whichever is greater, for such software specifically mentioned therein.

(c) the media on which Software is furnished (if any) will, for a period of
ninety (90) days from the date of purchase, as evidenced by a copy of the
receipt be free from defect in materials and workmanship under normal use.
Except for the foregoing, Software is provided "AS IS."

8.3 GSP's sole and exclusive remedy and Sun's entire liability for breach of
the warranties specified in this Section 8, will be, at Sun's option, the
repair, replacement of, or refund of the actual cost paid for the Products
(less reasonable wear and tear) and/or to replace the media for Software or
refund the associated license fee paid.

8.4 This Warranty is contingent upon proper treatment and use of the Products
and maintenance of a safe and suitable site. No warranty will apply to any
Product that has been (i) modified, altered or adapted without Sun's written
consent (ii) maltreated or used in a manner other than in accordance with the
Product manual or, (iii) repaired by any third party in a manner which fails
to meet Sun's maintenance requirements and quality standards. Product
problems attributable to the use of the Products with equipment or software
not supplied or expressly approved by Sun are not covered under warranty. Any
services provided for Product or problems which are out of warranty will be
billed for on a time and materials basis.

9. COMMERCIAL TERMS FOR PRODUCTS

Prices and Discounts. For Products on Sun's then current, applicable U.S.
Computer Systems Price List, Sun agrees to grant to GSP the following
discounts when GSP purchases directly from Sun: [***] on Category A Product,
[***] on Category B Products and [***] on Category H Products. Such discounts
will not apply to those Products which are listed as "non-discountable in
the appropriate price list, nor may they be applied to exceed any listed
maximum discount. Such discounts will apply towards purchases of discountable
spare parts, but such discounts will

                                   -13-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT,
AND SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

not apply to purchases of training, installation (except where included in
the purchase price of the Products), consulting, repairs, maintenance work or
similar services and source code license fees.

Orders and Delivery. When GSP purchases from Sun, GSP shall submit purchase
orders in witting or electronically via Sun's eCommerce site in accordance
with the requirements defined on that site. Order acceptance will only be
effective upon issuance of Sun's order acknowledgement. Each order must be
for a minimum of [***]. Sun will use reasonable efforts to meet target
delivery dates identified on the order acknowledgement. Title to Products
(except Software) and risk of loss or damage to Products will pass to GSP
upon shipment, FOB Sun's Product Delivery Center. Sun reserves the right to
make Product substitutions and modifications that do not cause a material
adverse affect in overall Product performance.

Rescheduling and Reconfiguration. GSP may, when purchasing direct from Sun,
reschedule or reconfigure all or part of any specific orders once at no
charge, at long as a Change Purchase Order is received by Sun at least [***]
prior to the scheduled delivery date and the rescheduled delivery date is
within [***] of the original date. If an order is rescheduled or reconfigured
at GSPs request on any other basis, or if Sun rescheduled the order because
GSP fails to meet an obligation under this Agreement, Sun may charge GSP a
restocking fee equal to [***] of the list price of the rescheduled or
reconfigured portion of the order. If GSP refuses shipment at its requested
delivery location, Sun may charge GSP a restocking fee of [***] of the list
price of the shipment.

10. ASSIGNMENT OF PURCHASING

GSP may receive an assignment of purchase rights from an approved third
party when the third party receives a purchase order from its end user so
that GSP may procure Product for said third party. A separate assignment
agreement ("Assignment Agreement') must be signed by Sun, GSP and third
party authorized signatories.

11. TERM AND TERMINATION

Term. This Agreement shall commence on the Equipment Exhibit Effective Date
and shall remain in force until the date established according to the
following schedule:

<TABLE>

<S>                         <C>
Effective Date              Expiration Date:
                            (of each following year)

March 1-August31            August 31

September 1-February 28     February 28

</TABLE>

It shall be automatically renewed on an annual basis thereafter, unless at
least thirty (30) days prior to any year's Expiration Date, Sun or GSP
tenders Notice of intention not to renew.

12. STATUTE OF LIMITATIONS

                                 -14-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT,
AND SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

<PAGE>

No claim or action, regardless of form, arising out of this Agreement may be
brought by either party more than [***] after the claim or cause of action
has arisen, or in the case of nonpayment, more than [***] from the date
payment was due.

13. GOVERNING LAW

Any claim or cause of action must be brought solely and exclusively in the
courts of the State of California.

IN WITNESS WHEREOF, THE DULY AUTHORIZED REPRESENTATIVES OF THE PARTIES HAVE
EXECUTED THIS AGREEMENT, AS OF THE DATE FIRST ABOVE WRITTEN.

SUN MICROSYSTEMS, INC.          GLOBAL SOLUTIONS PARTNER

By:  /s/                        By:
   -------------------------       -------------------------
Name:  John J. King             Name:
     -----------------------         -----------------------
Title:  SR VP & COO             Title:
      ----------------------          ----------------------
Date:  4/7/00                   Date:
     -----------------------         -----------------------

                                 -15-

*MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT,
AND SUCH MATERIAL HAS BEEN FILED SEPARATELY WITH THE SEC.

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