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                                                                    EXHIBIT 10.8

                          LEXICON GENETICS INCORORATED

                 2000 NON-EMPLOYEE DIRECTORS' STOCK OPTION PLAN

1.      PURPOSES.

        (a) ELIGIBLE OPTION RECIPIENTS. The persons eligible to receive Options
are the Non-Employee Directors of the Company.

        (b) AVAILABLE OPTIONS. The purpose of the Plan is to provide a means by
which Non-Employee Directors may be given an opportunity to benefit from
increases in value of the Common Stock through the granting of Nonstatutory
Stock Options.

        (c) GENERAL PURPOSE. The Company, by means of the Plan, seeks to retain
the services of its Non-Employee Directors, to secure and retain the services of
new Non-Employee Directors and to provide incentives for such persons to exert
maximum efforts for the success of the Company and its Affiliates.

2.      DEFINITIONS.

        (a) "AFFILIATE" means any parent corporation or subsidiary corporation
of the Company, whether now or hereafter existing, as those terms are defined in
Sections 424(e) and (f), respectively, of the Code.

        (b) "ANNUAL GRANT" means an Option granted annually to all Non-Employee
Directors who meet the specified criteria pursuant to subsection 6(b) of the
Plan.

        (c) "ANNUAL MEETING" means the annual meeting of the stockholders of the
Company.

        (d) "BOARD" means the Board of Directors of the Company.

        (e) "CODE" means the Internal Revenue Code of 1986, as amended.

        (f) "COMMON STOCK" means the common stock, par value $.001 per share, of
the Company.

        (g) "COMPANY" means Lexicon Genetics Incorporated, a Delaware
corporation.

        (h) "CONSULTANT" means any person, including an advisor, (i) engaged by
the Company or an Affiliate to render consulting or advisory services and who is
compensated for such services or (ii) who is a member of the Board of Directors
of an Affiliate. However, the term "Consultant" shall not include either
Directors of the Company who are not compensated by the Company for their
services as Directors or

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Directors of the Company who are merely paid a director's fee by the Company for
their services as Directors.

        (i) "CONTINUOUS SERVICE" means that the Optionholder's service with the
Company or an Affiliate, whether as an Employee, Director or Consultant, is not
interrupted or terminated. The Optionholder's Continuous Service shall not be
deemed to have terminated merely because of a change in the capacity in which
the Optionholder renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a change in the entity for which the Optionholder
renders such service, provided that there is no interruption or termination of
the Optionholder's Continuous Service. For example, a change in status from a
Non-Employee Director of the Company to a Consultant of an Affiliate or an
Employee of the Company will not constitute an interruption of Continuous
Service. The Board or the chief executive officer of the Company, in that
party's sole discretion, may determine whether Continuous Service shall be
considered interrupted in the case of any leave of absence approved by that
party, including sick leave, military leave or any other personal leave.

        (j) "DIRECTOR" means a member of the Board of Directors of the Company.

        (k) "DISABILITY" means the permanent and total disability of a person
within the meaning of Section 22(e)(3) of the Code.

        (l) "EMPLOYEE" means any person employed by the Company or an Affiliate.
Mere service as a Director or payment of a director's fee by the Company or an
Affiliate shall not be sufficient to constitute "employment" by the Company or
an Affiliate.

        (m) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

        (n) "FAIR MARKET VALUE" means, as of any date, the value of the Common
Stock determined as follows:

               (i) If the Common Stock is listed on any established stock
        exchange or traded on the Nasdaq National Market or the Nasdaq SmallCap
        Market, the Fair Market Value of a share of Common Stock shall be the
        closing sales price for such stock (or the closing bid, if no sales were
        reported) as quoted on such exchange or market (or the exchange or
        market with the greatest volume of trading in the Common Stock) on the
        last market trading day prior to the day of determination, as reported
        in The Wall Street Journal or such other source as the Board deems
        reliable.

               (ii) In the absence of such markets for the Common Stock, the
        Fair Market Value shall be determined in good faith by the Board.

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        (o) "INITIAL GRANT" means an Option granted to a Non-Employee Director
who meets the specified criteria pursuant to subsection 6(a) of the Plan.

        (p) "IPO DATE" means the effective date of the initial public offering
of the Common Stock.

        (q) "NON-EMPLOYEE DIRECTOR" means a Director who is not an Employee.

        (r) "NONSTATUTORY STOCK OPTION" means an Option not intended to qualify
as an incentive stock option within the meaning of Section 422 of the Code and
the regulations promulgated thereunder.

        (s) "OFFICER" means a person who is an officer of the Company within the
meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

        (t) "OPTION" means a Nonstatutory Stock Option granted pursuant to the
Plan.

        (u) "OPTION AGREEMENT" means a written agreement between the Company and
an Optionholder evidencing the terms and conditions of an individual Option
grant. Each Option Agreement shall be subject to the terms and conditions of the
Plan.

        (v) "OPTIONHOLDER" means a person to whom an Option is granted pursuant
to the Plan or, if applicable, such other person who holds an outstanding
Option.

        (w) "PLAN" means this Lexicon Genetics Incorporated 2000 Non-Employee
Directors' Stock Option Plan.

        (x) "RULE 16B-3" means Rule 16b-3 promulgated under the Exchange Act or
any successor to Rule 16b-3, as in effect from time to time.

        (y) "SECURITIES ACT" means the Securities Act of 1933, as amended.

3.      ADMINISTRATION.

        (a) ADMINISTRATION BY BOARD. The Board shall administer the Plan. The
Board may not delegate administration of the Plan to a committee.

        (b) POWERS OF BOARD. The Board shall have the power, subject to, and
within the limitations of, the express provisions of the Plan:

               (i) To determine the provisions of each Option to the extent not
        specified in the Plan.

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               (ii) To construe and interpret the Plan and Options granted under
        it, and to establish, amend and revoke rules and regulations for its
        administration. The Board, in the exercise of this power, may correct
        any defect, omission or inconsistency in the Plan or in any Option
        Agreement, in a manner and to the extent it shall deem necessary or
        expedient to make the Plan fully effective.

               (iii) To amend the Plan or an Option as provided in Section 12.

               (iv) Generally, to exercise such powers and to perform such acts
        as the Board deems necessary or expedient to promote the best interests
        of the Company that are not in conflict with the provisions of the Plan.

        (c) EFFECT OF BOARD'S DECISION. All determinations, interpretations and
constructions made by the Board in good faith shall not be subject to review by
any person and shall be final, binding and conclusive on all persons.

4.      SHARES SUBJECT TO THE PLAN.

        (a) SHARE RESERVE. Subject to the provisions of Section 11 relating to
adjustments upon changes in the Common Stock, the Common Stock that may be
issued pursuant to Options shall not exceed in the aggregate Two Hundred
Thousand (200,000) shares of Common Stock.

        (b) EVERGREEN SHARE RESERVE INCREASE.

               (i) Notwithstanding subsection 4(a) hereof, on the day after each
        Annual Meeting (the "Calculation Date") for a period of ten (10) years,
        commencing with the Annual Meeting in 2000, the aggregate number of
        shares of Common Stock that is available for issuance under the Plan
        shall automatically be increased by that number of shares equal to the
        greater of (1) three-tenths of one percent (0.3%) of the Diluted Shares
        Outstanding or (2) the number of shares of Common Stock subject to
        Options granted during the prior 12-month period; provided, however,
        that the Board, from time to time, may provide for a lesser increase in
        the aggregate number of shares of Common Stock that is available for
        issuance under the Plan.

               (ii) "Diluted Shares Outstanding" shall mean, as of any date, (1)
        the number of outstanding shares of Common Stock of the Company on such
        Calculation Date, plus (2) the number of shares of Common Stock issuable
        upon such Calculation Date assuming the conversion of all outstanding
        Preferred Stock and convertible notes, plus (3) the additional number of
        dilutive Common Stock equivalent shares outstanding as the result of any
        options or warrants outstanding during the fiscal year, calculated using
        the treasury stock method.

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        (c) REVERSION OF SHARES TO THE SHARE RESERVE. If any Option shall for
any reason expire or otherwise terminate, in whole or in part, without having
been exercised in full, the shares of Common Stock not acquired under such
Option shall revert to and again become available for issuance under the Plan.

        (d) SOURCE OF SHARES. The shares of Common Stock subject to the Plan may
be unissued shares or reacquired shares, bought on the market or otherwise.

5.      ELIGIBILITY.

        The Options as set forth in section 6 automatically shall be granted
under the Plan to all Non-Employee Directors.

6.      NON-DISCRETIONARY GRANTS.

        (a) INITIAL GRANTS. Without any further action of the Board, each person
who is elected or appointed for the first time to be a Non-Employee Director
automatically shall, upon the date of his or her initial election or appointment
to be a Non-Employee Director, be granted an Initial Grant to purchase Ten
Thousand (10,000) shares of Common Stock on the terms and conditions set forth
herein.

        (b) ANNUAL GRANTS. Without any further action of the Board, on the day
following each Annual Meeting, commencing with the Annual Meeting in 2001, each
person who is then a Non-Employee Director, and has been a Non-Employee Director
for at least six (6) months, automatically shall be granted an Annual Grant to
purchase Two Thousand (2,000) shares of Common Stock on the terms and conditions
set forth herein.

7.      OPTION PROVISIONS. Each Option shall be in such form and shall contain
such terms and conditions as required by the Plan. Each Option shall contain
such additional terms and conditions, not inconsistent with the Plan, as the
Board shall deem appropriate. Each Option shall include (through incorporation
of provisions hereof by reference in the Option or otherwise) the substance of
each of the following provisions:

        (a) TERM. No Option shall be exercisable after the expiration of ten
(10) years from the date it was granted.

        (b) EXERCISE PRICE. The exercise price of each Option shall be one
hundred percent (100%) of the Fair Market Value of the stock subject to the
Option on the date the Option is granted. Notwithstanding the foregoing, an
Option may be granted with an exercise price lower than that set forth in the
preceding sentence if such Option is granted pursuant to an assumption or
substitution for another option in a manner satisfying the provisions of Section
424(a) of the Code.

        (c) CONSIDERATION. The purchase price of stock acquired pursuant to an
Option may be paid, to the extent permitted by applicable statutes and
regulations, in any combination of (i) cash or check, or (ii) delivery to the
Company of other Common

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Stock. The purchase price of Common Stock acquired pursuant to an Option that is
paid by delivery to the Company of other Common Stock acquired, directly or
indirectly from the Company, shall be paid only by shares of the Common Stock of
the Company that have been held for more than six (6) months (or such longer or
shorter period of time required to avoid a charge to earnings for financial
accounting purposes). At any time that the Company is incorporated in Delaware,
payment of the Common Stock's "par value," as defined in the Delaware General
Corporation Law, shall not be made by deferred payment.

        (d) TRANSFERABILITY. An Option is not transferable, except (i) by will
or by the laws of descent and distribution, (ii) by instrument to an inter vivos
or testamentary trust, in a form accepted by the Company, in which the Option is
to be passed to beneficiaries upon the death of the trustor (settlor) and (iii)
by gift, in a form accepted by the Company, to a member of the "immediate
family" of the Optionholder as that term is defined in 17 C.F.R. 240.16a-1(e).
In addition, Optionholder may, by delivering written notice to the Company, in a
form satisfactory to the Company, designate a third party who, in the event of
the death of the Optionholder, shall thereafter be entitled to exercise the
Option.

        (e) VESTING. Options shall vest as follows:

               (i) Initial Grants shall provide for vesting of 1/60th of the
        shares subject to the Option each month after grant for five (5) years
        after the date of the grant.

               (ii) Annual Grants shall provide for vesting of 1/12th of the
        shares subject to the Option each month after grant for twelve (12)
        months after the date of the grant.

        (f) TERMINATION OF CONTINUOUS SERVICE. In the event an Optionholder's
Continuous Service terminates (other than upon the Optionholder's death or
Disability), the Optionholder may exercise his or her Option (to the extent that
the Optionholder was entitled to exercise it as of the date of termination) but
only within such period of time ending on the earlier of (i) the date six (6)
months following the termination of the Optionholder's Continuous Service, or
(ii) the expiration of the term of the Option as set forth in the Option
Agreement. If, after termination, the Optionholder does not exercise his or her
Option within the time specified in the Option Agreement, the Option shall
terminate.

        (g) EXTENSION OF TERMINATION DATE. If the exercise of the Option
following the termination of the Optionholder's Continuous Service (other than
upon the Optionholder's death or Disability) would be prohibited at any time
solely because the issuance of shares would violate the registration
requirements under the Securities Act, then the Option shall terminate on the
earlier of (i) the expiration of the term of the Option set forth in subsection
7(a) or (ii) the expiration of a period of three (3) months

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after the termination of the Optionholder's Continuous Service during which the
exercise of the Option would not be in violation of such registration
requirements.

        (h) DISABILITY OF OPTIONHOLDER. In the event an Optionholder's
Continuous Service terminates as a result of the Optionholder's Disability, the
Optionholder may exercise his or her Option (to the extent that the Optionholder
was entitled to exercise it as of the date of termination), but only within such
period of time ending on the earlier of (i) the date twelve (12) months
following such termination or (ii) the expiration of the term of the Option as
set forth in the Option Agreement. If, after termination, the Optionholder does
not exercise his or her Option within the time specified herein, the Option
shall terminate.

        (i) DEATH OF OPTIONHOLDER. In the event (i) an Optionholder's Continuous
Service terminates as a result of the Optionholder's death or (ii) the
Optionholder dies within the three-month period after the termination of the
Optionholder's Continuous Service for a reason other than death, then the Option
may be exercised (to the extent the Optionholder was entitled to exercise the
Option as of the date of death) by the Optionholder's estate, by a person who
acquired the right to exercise the Option by bequest or inheritance or by a
person designated to exercise the Option upon the Optionholder's death, but only
within the period ending on the earlier of (1) the date eighteen (18) months
following the date of death or (2) the expiration of the term of such Option as
set forth in the Option Agreement. If, after death, the Option is not exercised
within the time specified herein, the Option shall terminate.

8.      COVENANTS OF THE COMPANY.

        (a) AVAILABILITY OF SHARES. During the terms of the Options, the Company
shall keep available at all times the number of shares of Common Stock required
to satisfy such Options.

        (b) SECURITIES LAW COMPLIANCE. The Company shall seek to obtain from
each regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to grant Options and to issue and sell shares of
Common Stock upon exercise of the Options; provided, however, that this
undertaking shall not require the Company to register under the Securities Act
the Plan, any Option or any stock issued or issuable pursuant to any such
Option. If, after reasonable efforts, the Company is unable to obtain from any
such regulatory commission or agency the authority which counsel for the Company
deems necessary for the lawful issuance and sale of stock under the Plan, the
Company shall be relieved from any liability for failure to issue and sell stock
upon exercise of such Options unless and until such authority is obtained.

9.      USE OF PROCEEDS FROM STOCK. Proceeds from the sale of stock pursuant to
Options shall constitute general funds of the Company.

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10.     MISCELLANEOUS.

        (a) STOCKHOLDER RIGHTS. No Optionholder shall be deemed to be the holder
of, or to have any of the rights of a holder with respect to, any shares subject
to such Option unless and until such Optionholder has satisfied all requirements
for exercise of the Option pursuant to its terms.

        (b) NO SERVICE RIGHTS. Nothing in the Plan or any instrument executed or
Option granted pursuant thereto shall confer upon any Optionholder any right to
continue to serve the Company as a Non-Employee Director or shall affect the
right of the Company or an Affiliate to terminate (i) the employment of an
Employee with or without notice and with or without cause, (ii) the service of a
Consultant pursuant to the terms of such Consultant's agreement with the Company
or an Affiliate or (iii) the service of a Director pursuant to the Bylaws of the
Company or an Affiliate, and any applicable provisions of the corporate law of
the state in which the Company or the Affiliate is incorporated, as the case may
be.

        (c) INVESTMENT ASSURANCES. The Company may require an Optionholder, as a
condition of exercising or acquiring stock under any Option, (i) to give written
assurances satisfactory to the Company as to the Optionholder's knowledge and
experience in financial and business matters and/or to employ a purchaser
representative reasonably satisfactory to the Company who is knowledgeable and
experienced in financial and business matters and that he or she is capable of
evaluating, alone or together with the purchaser representative, the merits and
risks of exercising the Option; and (ii) to give written assurances satisfactory
to the Company stating that the Optionholder is acquiring the stock subject to
the Option for the Optionholder's own account and not with any present intention
of selling or otherwise distributing the stock. The foregoing requirements, and
any assurances given pursuant to such requirements, shall be inoperative if
(iii) the issuance of the shares upon the exercise or acquisition of stock under
the Option has been registered under a then currently effective registration
statement under the Securities Act or (iv) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not
be met in the circumstances under the then applicable securities laws. The
Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or
appropriate in order to comply with applicable securities laws, including, but
not limited to, legends restricting the transfer of the stock.

        (d) WITHHOLDING OBLIGATIONS. The Optionholder may satisfy any federal,
state or local tax withholding obligation relating to the exercise or
acquisition of stock under an Option by any of the following means (in addition
to the Company's right to withhold from any compensation paid to the
Optionholder by the Company) or by a combination of such means: (i) tendering a
cash payment; (ii) authorizing the Company to withhold shares from the shares of
the Common Stock otherwise issuable to the Optionholder as a result of the
exercise or acquisition of stock under the Option, provided, however, that no
shares of Common Stock are withheld with a value exceeding

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the minimum amount of tax required to be withheld by law; or (iii) delivering to
the Company owned and unencumbered shares of the Common Stock.

11.     ADJUSTMENTS UPON CHANGES IN STOCK.

        (a) CAPITALIZATION ADJUSTMENTS. If any change is made in the stock
subject to the Plan, or subject to any Option, without the receipt of
consideration by the Company (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the
receipt of consideration by the Company), the Plan will be appropriately
adjusted in the class(es) and maximum number of securities subject both to the
Plan pursuant to subsection 4(a) and to the nondiscretionary Options specified
in Section 5, and the outstanding Options will be appropriately adjusted in the
class(es) and number of securities and price per share of stock subject to such
outstanding Options. The Board shall make such adjustments, and its
determination shall be final, binding and conclusive. (The conversion of any
convertible securities of the Company shall not be treated as a transaction
"without receipt of consideration" by the Company.)

        (b) CHANGE IN CONTROL -- DISSOLUTION OR LIQUIDATION. In the event of a
dissolution or liquidation of the Company, then all outstanding Options shall
terminate immediately prior to such event.

        (c) CHANGE IN CONTROL -- ASSET SALE, MERGER, CONSOLIDATION OR REVERSE
MERGER.

               (i) In the event of (i) a sale, lease or other disposition of all
        or substantially all of the assets of the Company, (ii) a merger or
        consolidation in which the Company is not the surviving corporation or
        (iii) a reverse merger in which the Company is the surviving corporation
        but the shares of Common Stock outstanding immediately preceding the
        merger are converted by virtue of the merger into other property,
        whether in the form of securities, cash or otherwise, then any surviving
        corporation or acquiring corporation shall assume any Options
        outstanding under the Plan or shall substitute similar Options
        (including an option to acquire the same consideration paid to the
        stockholders in the transaction described in this subsection 11(c) for
        those outstanding under the Plan).

               (ii) In the event any surviving corporation or acquiring
        corporation refuses to assume such Options or to substitute similar
        Options for those outstanding under the Plan, then the vesting of such
        Options and the vesting of any shares of Common Stock acquired pursuant
        to such Options shall be accelerated in full, and the Options shall
        terminate if not exercised at or prior to such event.

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               (iii) In the event any surviving corporation or acquiring
        corporation assumes such Options or substitutes similar Options for
        those outstanding under the Plan but the Optionholder is not elected or
        appointed to the board of directors of the surviving corporation or
        acquiring corporation at the first meeting of such board of directors
        after such change in control event, then the vesting of such Options and
        the vesting of any shares of Common Stock acquired pursuant to such
        Options shall be accelerated by eighteen (18) months on the day after
        the first meeting of the board of directors of the surviving corporation
        or acquiring corporation.

               (iv) In the event any surviving corporation or acquiring
        corporation assumes such Options or substitutes similar Options for
        those outstanding under the Plan and the Optionholder is elected or
        appointed to the board of directors of the surviving corporation or
        acquiring corporation at the first meeting of such board of directors
        after such change in control event, then the vesting of such Options and
        the vesting of any shares of Common Stock acquired pursuant to such
        Options shall not be accelerated.

12.     AMENDMENT OF THE PLAN AND OPTIONS.

        (a) AMENDMENT OF PLAN. The Board at any time, and from time to time, may
amend the Plan. However, except as provided in Section 11 relating to
adjustments upon changes in stock, no amendment shall be effective unless
approved by the stockholders of the Company to the extent stockholder approval
is necessary to satisfy the requirements of Rule 16b-3 or any Nasdaq or
securities exchange listing requirements.

        (b) STOCKHOLDER APPROVAL. The Board may, in its sole discretion, submit
any other amendment to the Plan for stockholder approval.

        (c) NO IMPAIRMENT OF RIGHTS. Rights under any Option granted before
amendment of the Plan shall not be impaired by any amendment of the Plan unless
(i) the Company requests the consent of the Optionholder and (ii) the
Optionholder consents in writing.

        (d) AMENDMENT OF OPTIONS. The Board at any time, and from time to time,
may amend the terms of any one or more Options; provided, however, that the
rights under any Option shall not be impaired by any such amendment unless (i)
the Company requests the consent of the Optionholder and (ii) the Optionholder
consents in writing.

13.     TERMINATION OR SUSPENSION OF THE PLAN.

        (a) PLAN TERM. The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on the day before the tenth
(10th) anniversary of the date the Plan is adopted by the Board or approved by
the stockholders

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of the Company, whichever is earlier. No Options may be granted under the Plan
while the Plan is suspended or after it is terminated.

        (b) NO IMPAIRMENT OF RIGHTS. Suspension or termination of the Plan shall
not impair rights and obligations under any Option granted while the Plan is in
effect except with the written consent of the Optionholder.

14.     EFFECTIVE DATE OF PLAN. The Plan shall become effective on the IPO Date,
but no Option shall be exercised unless and until the Plan has been approved by
the stockholders of the Company, which approval shall be within twelve (12)
months before or after the date the Plan is adopted by the Board.

15.     CHOICE OF LAW. All questions concerning the construction, validity and
interpretation of this Plan shall be governed by the law of the State of
Delaware,  without regard to such state's conflict of laws rules.

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                                                                   EXHIBIT 10.11

                       MASTER LOAN AND SECURITY AGREEMENT

Master Loan and Security Agreement No.  S7260   Dated May 21, 1999

FINOVA Capital Corporation, with its principal place of business located at 1850
N. Central Avenue, Phoenix, AZ 85004 ("we," "us" or "FINOVA") is willing to make
a loan (the "Loan") to LEXICON GENETICS INCORPORATED ("you" or "Borrower") under
the terms and conditions contained in this Master Loan and Security Agreement
(this "Master Agreement"). The Loan will be secured by the Collateral described
in any schedule to this Master Agreement (a "Schedule"). The Collateral also
includes any replacement parts, additions and accessories that you may add to
the Collateral, as well as any proceeds of sale, lease or rental of the
Collateral. We may treat any Schedule as a separate loan and security agreement
containing all of the provisions of this Master Agreement.

1. THE CREDIT

We may make the Loan in more than one advance (an "Advance", each of which shall
be evidenced by a "Schedule"). All of the Schedules, taken together, will make
up the Loan. We will only make the Loan to you if all the conditions in this
Master Agreement have been met to our satisfaction. We will rely on your
representations and warranties, contained in this Master Agreement, in making
the Loan. The terms of this Agreement will each apply to the Loan.

o    USE OF PROCEEDS. You will use the proceeds of the Loan to pay for the
     Collateral. We may pay the Supplier (whom you have chosen) of the
     Collateral directly from the Loan proceeds. The Supplier will deliver the
     Collateral to you at your expense. You will properly install the Collateral
     at your expense at the location(s) indicated in the Schedule. If you have
     already paid for the Collateral, we will pay the Loan proceeds to you or to
     another person that you may designate in writing.

o    NOTES. Your obligation to repay the Loan and to pay interest on the Loan
     will be evidenced by Notes. Each Note will be dated the date of the
     Schedule to which the Advance evidenced by the Note is related.

o    TERM. The Term of each Schedule (and the related Advance) begins upon the
     date that we make payment for the Collateral covered under each Schedule
     (the "Closing Date"). The Term continues until you fully perform all of
     your obligations under this Agreement and each Schedule and the related
     Note(s). If the Collateral is not delivered, installed and accepted by you
     by the date indicated in the Schedule, we may terminate this Agreement and
     the Schedule as to the Collateral that was not delivered, installed and
     accepted by giving you 10 days written notice of termination. Any advance
     Loan payment you may have paid

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     us is nonrefundable, even if the Term never starts or if we rightfully
     terminate this Master Agreement or the Schedule.

o    LOAN ACCOUNT. We will keep a loan account on our books and records (which
     are computerized) for the Loan. We will record all payments of principal
     and interest in the loan account. Unless the entries in the loan account
     are clearly in error, the loan account will definitively indicate the
     outstanding principal balance and accrued interest on the Loan. We may send
     you loan account statements from time to time or upon your request.

o    PAYMENTS. The scheduled loan payments (the "Payments") are indicated on the
     Schedule. The Payments are payable periodically as specified on the
     Schedule from time to time (for example, monthly). The Schedule also
     indicates whether the Payments are payable "in advance" or "in arrears."
     You agree that you owe us the total of all of these Payments over the Term
     of the Schedule.

o    FIRST PAYMENT. The first Payment is due at the beginning of the Term or at
     a later date that we agree to in writing. Subsequent Payments are due on
     the thirtieth day of each successive period (except the next following
     period if Payments are payable in arrears) until you pay us in full all of
     the Payments and any other charges or expenses you owe us.

o    INTEREST. Prior to maturity of a Schedule, you will pay us interest on each
     Schedule at the Interest Rate indicated in the Schedule. "Maturity" means
     the scheduled maturity or any earlier date on which we accelerate the Loan.
     The Payment amount indicated in the Schedule includes interest at this
     Interest Rate. Interest is calculated in advance using a year of 360 days
     with twelve months of 30 days.

o    DEFAULT INTEREST RATE. After Maturity of the Loan you will pay us interest
     at a rate of four (4%) percent per year above the Interest Rate. This is
     referred to as the "Default Rate."

o    INTERIM PAYMENT. If an Advance is made on a day other than the thirtieth or
     thirty-first day of a period, you will also pay us an interim Payment on
     the first Payment date. The interim Payment will be for the period from the
     beginning of the Term until the twenty-ninth day of the period in which the
     Advance is made, unless the Advance is made on the thirty-first day of a
     period. If the Advance is made on the thirty-first day of a period, the
     interim Payment will be for the period from the beginning of the Term
     through and including the twenty-ninth day of the next following period.
     The Interim Payment will be calculated the same way as the regular Payments
     but pro rata on a daily basis for the number of days for which the interim
     Payment is due.

o    USURY. You and we intend to obey the law. If the Interest Rate charged
     would exceed the maximum legal rate, you will only have to pay the maximum
     legal rate. You do not have to pay any excess interest over and above the
     maximum legal rate of interest. However, if it later becomes legal for you
     to pay all or part of any excess interest, you will then pay it to us upon
     our request.

o    PAYMENT DETAILS. You will make all payments due under this Master Agreement
     by 12:00 P.M., Connecticut time, on the day they are due. You will make all
     payments in US Dollars (US$) in immediately available funds. We do not have
     to make or give "presentment, demand, protest or notice" to get paid. You
     waive "presentment, demand, protest and notice."

o    APPLICATION OF PAYMENTS. Each payment under this Master Agreement is to

                                      -2-
<PAGE>   3

     be applied in the following order: first, to any fees, costs, expenses and
     charges you may owe us; second, to any interest due; and third to the
     principal balance.

o    PREPAYMENT. You may not prepay the Loan, in whole or in part, unless this
     is specifically permitted by Exhibit A to this Agreement. If prepayment is
     permitted by Exhibit A to this Master Agreement, you will give us at least
     30 days advance written notice of prepayment. You will pay us the
     prepayment premium indicated in the Schedule(s). You will also pay us all
     accrued and unpaid interest through the date of prepayment, as well as all
     outstanding fees, costs, expenses and charges then due. Of course, you will
     also pay the entire outstanding principal balance of the Loan. Once you
     give us a notice of prepayment, that notice is final and irrevocable. If we
     accelerate the Loan following an Event of Default, you will also owe us a
     prepayment premium calculated as if the Loan were prepaid on the date of
     acceleration. If no prepayment is permitted, the premium due upon
     acceleration will be five (5%) percent of the outstanding principal
     balance.

o    YOUR OBLIGATION TO PAY US ALL PAYMENTS IS ABSOLUTE AND UNCONDITIONAL. YOU
     ARE NOT EXCUSED FROM MAKING THE PAYMENTS, IN FULL, FOR ANY REASON. YOU
     AGREE THAT YOU HAVE NO DEFENSE FOR FAILURE TO MAKE THE PAYMENTS AND YOU
     WILL NOT MAKE ANY COUNTERCLAIMS OR SETOFFS TO AVOID MAKING THE PAYMENTS.

2. SECURITY INTEREST

o    You grant us a security interest in the Collateral. The Collateral secures
     the full and timely payment and performance of all of your obligations to
     us under this Master Agreement and any other agreement, loan or lease that
     you may have with us (the "Obligations"). You also grant us a security
     interest in any additional collateral identified in any Schedule. Any
     additional collateral is considered to be "Collateral" and it secures all
     of the Obligations.

o    If we request, you will put labels supplied by us stating "PROPERTY SUBJECT
     TO A SECURITY INTEREST HELD BY FINOVA" on the Collateral where they are
     clearly visible.

o    You give us permission to add to this Master Agreement or any Schedule the
     serial numbers and other information about the Collateral.

o    You give us permission to file this Master Agreement or a Uniform
     Commercial Code financing statement, at your expense, in order to perfect
     our security interest in the Collateral. You also give us permission to
     sign your name on the Uniform Commercial Code financing statements where
     this is permitted by law.

o    You will pay our cost to do searches for other filings or judgments against
     you or your affiliates. You will also pay any filing, recording or stamp
     fees or taxes resulting from filing this Agreement or a Uniform Commercial
     Code financing statement. You will also pay our fees in effect from time to
     time for documentation, administration and Termination of this Master
     Agreement.

o    At your expense, you will defend our first priority security interest in
     the Collateral against, and keep the Collateral free of, any legal process,
     liens, other security interests, attachments, levies and executions. You
     will give us immediate written notice of any legal process, liens,
     attachments, levies or executions, and you will indemnify us against any
     loss that results to us from these causes.

                                      -3-
<PAGE>   4

o    You will notify us at least 15 days before you change the address of your
     principal executive office.

o    You will promptly sign and return additional documents that we may
     reasonably request in order to protect our first priority security interest
     in the Collateral.

o    The Collateral is personal property and will remain personal property. You
     will not incorporate it into real estate and will not do anything that will
     cause the Collateral to become part of real estate or a fixture.

3. CONDITIONS OF LENDING

o    See our Commitment Letter to you dated May 11, 1999, which you and we
     consider to be a part of this Master Agreement. The terms and conditions of
     the Commitment Letter continue following the making of the first Advance.
     However, if there is a conflict between the terms and conditions of this
     Master Agreement, any Schedule or any Note and the terms and conditions of
     the Commitment Letter, then you and we agree that the terms and conditions
     of this Master Agreement, the Schedules and the Notes control over the
     Commitment Letter terms and conditions.

o    Before we disburse any proceeds of any Advance, we also require the
     following:

*    That no payment is past due to us under any other agreement, loan or lease
     that you or any guarantor have with us.

*    That you are complying with all terms of this Master Agreement.

*    That we have received all the documents we requested, including the signed
     Schedule, Note and Delivery and Acceptance Certificate.

*    That there has been no material adverse change in your financial condition,
     business, operations or prospects, or that of any guarantor, from the
     financial condition that you disclosed to us in your application for
     credit.

4. REPRESENTATIONS AND WARRANTIES

You represent and warrant to us as follows:

o    All financial information and other information that you or any guarantor
     have given us is true and complete. You or any guarantor have not failed to
     tell us anything that would make the financial information materially not
     misleading. There has been no material adverse change in your financial
     condition, business, operations or prospects, or the financial condition of
     any guarantor, from the financial condition that you disclosed to us in
     your application for credit.

o    You have supplied us with information about the Collateral. You promise to
     us that the amount of our Advance as to each item of Collateral is no more
     than the fair and usual price for this kind of Collateral, taking into
     account any discounts, rebates and allowances that you or any affiliate of
     yours may have been given for the Collateral.

o    You have materially complied with all "environmental laws" and will
     continue to comply with all "environmental laws." No "hazardous substances"
     are used, generated, treated, stored or disposed of by you or at your
     properties except in material compliance with all environmental laws.
     "Environmental laws" mean all federal, state or local environmental laws
     and regulations, including the following laws: CERCLA, RCRA, Hazardous
     Materials Transport Act and The Federal Water Pollution Control Act.
     "Hazardous substances" means all hazardous or toxic wastes, materials or
     substances, as defined

                                      -4-
<PAGE>   5

     in the environmental laws, as well as oil, flammable substances, asbestos
     that is or could become friable, urea formaldehyde insulation,
     polychlorinated biphenyls and radon gas.

5. COVENANTS

You agree to do the following things (or not to do the following things if so
stated) until full payment of all amounts due to us under this Master Agreement,
the Schedules and the Notes:

CARE, USE, LOCATION AND ALTERATION OF THE COLLATERAL

o    You will make sure that the Collateral is maintained in good operating
     condition, and that it is serviced, repaired and overhauled when this is
     necessary to keep the Collateral in good operating condition. All
     maintenance must be done according to the Supplier's or Manufacturer's
     requirements or recommendations. All maintenance must also comply with any
     legal or regulatory requirements.

o    You will maintain service logs for the Collateral and permit us to inspect
     the Collateral, the service logs and service reports. You give us
     permission to make copies of the service logs and service reports.

o    We will give you prior notice if we, or our agent, want to inspect the
     Collateral or the service logs or service reports. We may inspect it during
     regular business hours. You will pay our travel, meals and lodging costs to
     inspect the Collateral, but only for one inspection per year. If we find
     during an inspection that you are not complying with this Master Agreement,
     you will pay our travel, meals and lodging costs, our salary costs, and the
     costs and fees of our agents for reinspection. You will promptly cure any
     problems with the Collateral that are discovered during our inspection.

o    You will use the Collateral only for business purposes. You will obey all
     legal and regulatory requirements in your material use of the Collateral.

o    You will make all additions, modifications and improvements to the
     Collateral that are required by law or government regulation. Otherwise,
     you will not alter the Collateral without our written permission. You will
     replace all worn, lost, stolen or destroyed parts of the Collateral with
     replacement parts that are as good or better than the original parts. The
     new parts will become subject to our security interest upon replacement.

o    You will not remove the Collateral from the location indicated in the
     Schedule without our written permission.

YEAR 2000 COMPLIANT

You represent, warrant and agree to take all action necessary including, but not
limited to due inquiry and due diligence with critical business partners to
assure that there will be no material adverse change to your business by reason
of the advent of the year 2000, including without limitation that all
computer-based systems, embedded microchips and other processing capabilities
effectively recognize and process all dates before and after December 31, 1999
("Y2K Compliant"). At our request, you shall provide to us assurance reasonably
acceptable to us that your computer-based systems, embedded microchips and other
processing capabilities are Y2K Compliant.

RISK OF LOSS

o    You have the complete risk of loss or damage to the Collateral. Loss or
     damage to the Collateral will not relieve you of your obligation to make
     the Payments.

o    If any Collateral is lost or damaged, you have two choices (although if you
     are in

                                      -5-
<PAGE>   6

     default under this Master Agreement, we and not you will have the two
     choices). The choices are:

(1)  Repair or replace the damaged or lost Collateral so that, once again, the
     Collateral is in good operating condition and we have a perfected first
     priority security interest in it.

(2)  Pay us the present value (as of the date of payment) of the remaining
     Payments relating to the damaged or lost Collateral. We will calculate the
     present value using a discount rate of five (5%) percent per year. Once you
     have paid us this amount and any other amount that you may owe us, we will
     release our security interest in the damaged or lost Collateral and you (or
     your insurer) may keep the Collateral for salvage purposes, on an "AS IS,
     WHERE IS" basis.

INSURANCE

o    Until you have made all Payments to us under this Master Agreement, the
     Schedules and the Notes, you will keep the Collateral insured. The amount
     of insurance, the coverage, and the insurance company must comply with the
     requirements of an insurance letter dated _______________, from our Risk
     Management Department.

o    If you do not provide us with written evidence of insurance that complies
     with such requirements, we may buy the insurance ourselves, at your
     expense. You will promptly pay us the cost of this insurance. We have no
     obligation to purchase any insurance. Any insurance that we purchase will
     be our insurance, and not yours.

o    Insurance proceeds may be used to repair or replace damaged or lost
     Collateral or to pay us the present value of the Payments, as provided
     above.

o    You appoint us as your "attorney-in-fact" to make claims under the
     insurance policies, to receive payments under the insurance policies, and
     to endorse your name on all documents, checks or drafts relating to
     insurance claims for Collateral.

TAXES

o    You will pay all sales, use, excise, stamp, documentary and ad valorum
     taxes, license, recording and registration fees, assessments, fines,
     penalties and similar charges imposed on the ownership, possession, use,
     lease or rental of the equipment or on the Loan.

o    You will pay all taxes (other than our federal or state net income taxes)
     imposed on you or on us regarding the Payments.

o    You will reimburse us for any of these taxes that we pay or advance.

o    You will file and pay for any personal property taxes on the Collateral.

FINANCIAL STATEMENTS

o    If you have securities registered under the Securities Exchange Act of
     1934, you will promptly give copies of any filings you make with the
     Securities and Exchange Commission (SEC) during the term. You and any
     guarantor will also provide us with the following financial statements:

o    Quarterly balance sheet and statements of earnings and cash flow - within
     45 days after the end of your first three fiscal quarters in each fiscal
     year. These will be certified by your chief financial officer.

*    Annual balance sheet and statements of earnings and cash flow - within 90
     days after the end of each fiscal year. These will be audited by
     independent auditors that, if not a "Big Five" accounting firm, must be

                                      -6-
<PAGE>   7
     acceptable to us. Their audit report must be unqualified.

Both the quarterly and annual financial statements will be accompanied by a
certificate executed by your chief financial officer that you have complied with
all covenants contained in the Master Agreement and that there are no events of
default thereunder (the "Compliance Certificate").

These financial statements will be prepared according to generally accepted
accounting principles, consistently applied.

All financial statements and SEC filings that you or any guarantor provide us
will be true and complete. They will not fail to tell us anything that would
make them materially not misleading.

6. DEFAULTS

You are in default if any of the following happens:

o    You do not pay us, when it is due, any Payment or other payment that you
     owe us under this Master Agreement, any Schedule, Note or that you owe
     under any other agreement, loan or lease that you have with us.

o    Any of the financial information that you give us is not true and complete,
     or you fail to tell us anything that would make the financial information
     not materially misleading.

o    You do something you are not permitted to do, or you fail to do anything
     that is required of you, under this Master Agreement, any Schedule or any
     other lease, loan or other financial arrangement that you have with us, and
     do not cure this failure within twenty (20) days after we give notice to
     you.

o    An event of default occurs for any other lease, loan or obligation of yours
     (or any guarantor) that exceeds $25,000 and continues beyond any applicable
     grace period provided therein.

o    You or any guarantor file bankruptcy, or involuntary bankruptcy is filed
     against you or any guarantor.

o    You or any guarantor are subject to any other insolvency proceeding other
     than bankruptcy (for example, a receivership action or an assignment for
     the benefit of creditors).

o    Without our permission, you or any guarantor sell all or a substantial part
     of its assets, merge or consolidate, or a majority of your voting stock or
     interests (or any guarantor's voting stock or interests) is transferred.

o    There is a material adverse change in your financial condition, business,
     operations or prospects, or that of any guarantor, from the condition that
     you disclosed to us in your application for credit.

REMEDIES, DEFAULT INTEREST, LATE FEES

If you are in default we may exercise one or more of our "remedies." Each of our
remedies is independent. We may exercise any of our remedies, all of our
remedies or none of our remedies. We may exercise them in any order we choose.
Our exercise of any remedy will not prevent us from exercising any other remedy
or be an "election of remedies." If we do not exercise a remedy, or if we delay
in exercising a remedy, this does not mean that we are forgiving your default or
that we are giving up our right to exercise the remedy. Our remedies allow us to
do one or more of the following:

o    "Accelerate" the Loan balance under any or all Notes. This means that we
     may require

                                      -7-
<PAGE>   8
     you to immediately pay us all Payments for the entire Term for any or all
     Schedules.

o    Require you to immediately pay us all amounts that you are required to pay
     us for the entire Term of any other agreements, loans or leases that you
     have with us.

o    Sue you for all Payments and other amounts you owe us plus the Prepayment
     Premium (see Section 1 above).

o    Require you at your expense to assemble the Collateral at a location we
     request in the United States of America.

o    Remove and repossess the Collateral from where it is located, without
     demand or notice, or make the Collateral inoperable. We have your
     permission to remove any physical obstructions to removal of the
     Collateral. We may also disconnect and separate all Collateral from other
     property. No court order, court hearing or "legal process" will be required
     for us to repossess the Collateral. You will not be entitled to any damages
     resulting from removal or repossession of the Collateral. We may use, ship,
     store, repair or lease any Collateral that we repossess. We may sell any
     repossessed Collateral at private or public sale. You give us permission to
     show the Collateral to buyers at your location free of charge during normal
     business hours. If we do this, we do not have to remove the Collateral from
     your location. If we repossess the Collateral and sell it, we will give you
     credit for the net sale price, after subtracting our costs of repossessing
     and selling the Collateral. If we rent the Collateral to somebody else, we
     will give you credit for the net rent received, after subtracting our costs
     of repossessing and renting the Collateral, but the credit will be
     discounted to present value using a discount rate equal to the Default
     Rate. The credit will be applied against what you owe us under this Master
     Agreement, the Schedules, the Notes and any other agreements, loans or
     leases that you have with us. If the credit exceeds the amount you owe
     under this Master Agreement, the Schedule, the Notes and any other
     agreements, loans or leases that you have with us, we will refund the
     amount of the excess to you.

o    Return conditions: Following an Event of Default, at our request you will
     return the Collateral, freight and insurance prepaid by you, to us at a
     location we request in the United States of America. It will be returned in
     good operating condition, as required by Section 5 above. The Collateral
     will not be subject to any liens when it is returned. All advertising
     insignia will be removed and the finish will be painted or blended so that
     nobody can see that advertising insignia used to be there.

*    You will pack or crate the Collateral for shipping in the original
     containers, or comparable ones. You will do this carefully and follow all
     recommendations of the Supplier and the Manufacturer as to packing or
     crating.

*    You will also return to us the plans, specifications, operating manuals,
     software documentation, discs, warranties and other documents furnished by
     the Manufacturer or Supplier. You will also return to us all service logs
     and service reports, as well as all written materials that you may have
     concerning the maintenance and operation of the Collateral.

*    At our request, you will provide us with up to 60 days free storage of the
     Collateral at your location, and will let us (or our agent) have access to
     the Collateral in order to inspect it and sell it.

*    You will pay us what it costs us to repair the Collateral if you do not
     return it in the required condition.

You will also pay us for the following:

                                      -8-
<PAGE>   9

o    All our expenses of enforcing our remedies. This includes all our expenses
     to repossess, store, ship, repair and sell the Collateral.

o    Our reasonable attorney's fees and expenses.

o    Default interest on everything you owe us from the date of your default to
     the date on which we are paid in full at the Default Rate.

You realize that the damages we could suffer as a result of your default are
very uncertain. This is why we have agreed with you in advance on the Default
Rate to be used in calculating the payments you will owe us if you default. You
agree that, for these reasons, the payments you will owe us if you default are
"agreed" or "liquidated" damages. You understand that these payments are not
"penalties" or "forfeitures."

LATE FEES. You will pay us a late fee whenever you pay any amount that you owe
us more than ten (10) days after it is due. You will pay the late fee within one
month after the late Payment was originally due. The late fee will be ten (10%)
percent of the late Payment. If this exceeds the highest legal amount we can
charge you, you will only be required to pay the highest legal amount. The late
fee is intended to reimburse us for our collection costs that are caused by late
Payment. It is charged in addition to all other amounts you are required to pay
us, including Default Interest.

7. EXPENSES AND INDEMNITIES

PERFORMING YOUR OBLIGATIONS IF YOU DO NOT

If you do not perform one or more of your obligations under this Master
Agreement or a Schedule or Note, we may perform it for you. We will notify you
in writing at least ten (10) days before we do this. We do not have to perform
any of your obligations for you. If we do choose to perform them, you will pay
us all of our expenses to perform the obligations. You will also reimburse us
for any money that we advance to perform your obligations, together with
interest at the Default Rate on that amount. These will be additional "Payments"
that you will owe us and you will pay them at the same time that your next
Payment is due.

o    You will indemnify us, defend us and hold us harmless for any and all
     claims, expenses and attorney's fees concerning or arising from the
     Collateral, this Master Agreement, or any Schedule or Note, or your breach
     of any representation or warranty. It includes any claims concerning the
     manufacture, selection, delivery, possession, use, operation or return of
     the Collateral.

o    This obligation of yours to indemnify us continues even after the Term is
     over.

8. MISCELLANEOUS

WE MAY ASSIGN OR GRANT A SECURITY INTEREST IN THIS AGREEMENT, ANY SCHEDULE, ANY
NOTE OR ANY PAYMENTS WITHOUT YOUR PERMISSION. THE PERSON TO WHOM WE ASSIGN IS
CALLED THE "ASSIGNEE." THE ASSIGNEE WILL NOT HAVE ANY OF OUR OBLIGATIONS UNDER
THIS MASTER AGREEMENT. YOU WILL NOT BE ABLE TO RAISE ANY DEFENSE, COUNTERCLAIM
OR OFFSET AGAINST THE ASSIGNEE.

AFTER ASSIGNMENT YOU MAY "QUIETLY ENJOY" THE USE OF THE COLLATERAL SO LONG AS
YOU ARE NOT IN DEFAULT.

UNLESS YOU RECEIVE OUR WRITTEN PERMISSION, YOU MAY NOT ASSIGN OR TRANSFER YOUR
RIGHTS UNDER THIS MASTER AGREEMENT OR ANY SCHEDULE. YOU ALSO ARE NOT ALLOWED TO
LEASE OR RENT THE COLLATERAL OR LET ANYBODY ELSE

                                      -9-
<PAGE>   10
USE IT UNLESS WE GIVE YOU OUR WRITTEN PERMISSION.

WE DID NOT MANUFACTURE OR SUPPLY THE COLLATERAL. WE ARE NOT A DEALER IN THE
COLLATERAL. INSTEAD, YOU CHOSE THE COLLATERAL.

WE DO NOT MAKE ANY WARRANTY AS TO THE COLLATERAL. WE DO NOT MAKE ANY WARRANTY AS
TO "MERCHANTABILITY" OR "SUITABILITY" OR "FITNESS FOR A PARTICULAR PURPOSE" OR
"NONINFRINGEMENT" OF ANY PATENT, COPYRIGHT OR OTHER INTELLECTUAL PROPERTY RIGHT.

WE WILL NOT BE RESPONSIBLE FOR ANY LOSS, DAMAGE, OR INJURY TO YOU OR ANYBODY
ELSE AS A RESULT OF ANY DEFECTS, HIDDEN OR OTHERWISE, IN THE COLLATERAL UNDER
"STRICT LIABILITY" LAWS OR ANY OTHER LAWS.

WE WILL NOT BE RESPONSIBLE FOR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES,
LOSS OF PROFITS OR GOODWILL.

If the Collateral is unsatisfactory, you will continue to pay us all Payments
and other amounts you are required to pay us. You must seek repair or
replacement of the equipment solely from the Manufacturer or Supplier and not
from us. Neither the Manufacturer nor the Supplier is our "agent," so they
cannot speak for us and they are not allowed to make any changes in this Master
Agreement or any Schedule or Note, or give up any of our rights.

ACCEPTANCE BY FINOVA, GOVERNING LAW, JURISDICTION, VENUE, SERVICE OF PROCESS,
WAIVER OF JURY TRIAL.

THIS MASTER AGREEMENT WILL ONLY BE BINDING WHEN WE HAVE ACCEPTED IT IN WRITING.

THIS MASTER AGREEMENT IS GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF
ARIZONA (NOT INCLUDING THE "CHOICE OF LAW" DOCTRINE), THE STATE IN WHICH OUR
OFFICE IS LOCATED IN WHICH FINAL APPROVAL OF THE TERMS OR CONDITIONS OF THIS
MASTER AGREEMENT OCCURRED AND FROM WHICH DISBURSEMENT OF THE LOAN PROCEEDS WILL
BE ORDERED. HOWEVER, IF THIS MASTER AGREEMENT IS UNENFORCEABLE UNDER ARIZONA
LAW, IT WILL INSTEAD BE GOVERNED BY THE LAWS OF THE STATE IN WHICH THE
COLLATERAL IS LOCATED.

YOU MAY ONLY SUE US IN A FEDERAL OR STATE COURT THAT IS LOCATED IN MARICOPA
COUNTY, ARIZONA. THIS APPLIES TO ALL LAWSUITS UNDER ALL LEGAL THEORIES,
INCLUDING CONTRACT, TORT AND STRICT LIABILITY. YOU CONSENT TO THE PERSONAL
JURISDICTION OF THESE ARIZONA COURTS. YOU WILL NOT CLAIM THAT MARICOPA COUNTY,
ARIZONA, IS AN "INCONVENIENT FORUM" OR THAT IT IS NOT A PROPER "VENUE."

WE MAY SUE YOU IN ANY COURT THAT HAS JURISDICTION. WE MAY SERVE YOU WITH PROCESS
IN A LAWSUIT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO YOUR ADDRESS
INDICATED AFTER YOUR SIGNATURE BELOW.

YOU AND WE EACH WAIVE ANY RIGHT YOU OR WE MAY HAVE TO A JURY TRIAL IN ANY
LAWSUIT BETWEEN YOU AND US.

NOTICES. We may give you written notice in person, by mail, by overnight
delivery service, or by fax. Notice will be sent to your address below your
signature. Mail notice will be effective three (3) days after we mail it with

                                      -10-
<PAGE>   11

prepaid postage to the address stated. Overnight delivery notice requires a
receipt and tracking number. Fax notice requires a receipt from the sending
machine showing that it has been sent to your fax number and received.

You may give us notice the same way that we may give you notice.

This Master Agreement benefits our successors and assigns. This Master Agreement
benefits only those successors and assigns of yours that we have approved in
writing.

This Master Agreement binds your successors and assigns. This Master Agreement
binds only those successors and assigns of ours that clearly assume our
obligations in writing.

TIME IS OF THE ESSENCE OF THIS MASTER AGREEMENT

This Master Agreement, all of the Schedules and the Notes and the Commitment
Letter are together the entire agreement between you and us concerning the
Collateral.

Only an employee of FINOVA who is authorized by corporate resolution or policy
may modify or amend this Loan or any Schedule or Note on our behalf, and this
must be in writing. Only he or she may give up any of our rights, and this must
be in writing. If more than one person is the Borrower under this Master
Agreement, then each of you is jointly and severally liable for your obligations
under this Master Agreement.

This Master Agreement is only for your benefit and for our benefit, as well as
our successors and assigns. It is not intended to benefit any other person.

If any provision in this Master Agreement is unenforceable, then that provision
must be deleted. Only unenforceable provisions are to be deleted. The rest of
this Master Agreement will remain as written.

PUBLICITY. We may make press releases and publish a tombstone announcing this
transaction and its total amount. You may not publicize this transaction in any
way without our prior written consent, although you may disclose information
about this transaction that may be required by applicable law or the rules of
the Nasdaq stock market or any securities exchange.

LENDER:                                     BORROWER:

FINOVA CAPITAL CORPORATION.                 LEXICON GENETICS INCORPORATED
10 WATERSIDE DRIVE                          4000 RESEARCH FOREST DRIVE
FARMINGTON, CT  06032-3065                  THE WOODLANDS, TX  77381

BY:                                         BY:
   ------------------------------              ---------------------------------
PRINTED NAME:                               PRINTED NAME:
             --------------------                        -----------------------
TITLE:                                      TITLE:
      ---------------------------                 ------------------------------
FAX NUMBER: (860) 676-1814                  Taxpayer ID#
                                                        ------------------------
DATE ACCEPTED:                              FAX NUMBER:
              -------------------                      -------------------------
                                            DATED:
                                                  ------------------------------

                                      -11-
<PAGE>   12

STATE OF _______________________
COUNTY OF _____________________

         I acknowledge that ___________________, who stated that he/she is
_______________ of the Borrower named above, signed this Master Loan and
Security Agreement in my presence today: _______________. He/She acknowledged to
me that his/her signature on this Master Loan and Security Agreement was
authorized by a valid resolution or other valid authorization from Borrower's
board of directors or other governing body.

                                               ---------------------------------
                                               Notary Public

[SEAL]

                                      -12-
<PAGE>   13

                                    Exhibit A
    To Master Loan and Security Agreement No. S7260 dated as of May 21, 1999

                               PREPAYMENT PREMIUM

The Prepayment Premium shall be determined by multiplying the outstanding
principal balance by the percentage amount shown below which corresponds with
the month during the Term in which the prepayment occurs:

<TABLE>
<CAPTION>

       MONTH OF THE TERM                        PERCENTAGE AMOUNT
       -----------------                     ------------------------
<S>                                          <C>
         1 THROUGH 24                        NO PREPAYMENT IS ALLOWED

         25 THROUGH 36                                   3%

         37 THROUGH 48                                   2%
</TABLE>

                                                               ---------
                                                                INITIAL

                                      -13-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}]]