Document:

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                                                                  EXHIBIT 10.18

                             C O N F I D E N T I A L

                        RESEARCH & DEVELOPMENT AGREEMENT

                                    Between:

                             Roche Diagnostics GmbH
                              Sandhofer Strasse 16
                                 68305 Mannheim
                           Federal Republic of Germany

                       (hereinafter referred to as "RDG")

                                       and

                             CombiMatrix Corporation
                           6500 Harbour Heights Pkwy.
                               Mukilteo, WA 98275
                                       USA

                       - hereinafter referred as to "CBMX"

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This Research & Development Agreement ("Agreement"), is made and entered into by
and between RDG and CBMX. RDG and CBMX may be referred to herein individually as
a "Party" and collectively as the "Parties."

RECITALS

WHEREAS:

(1)      CBMX and RDG have entered into a broad strategic collaboration in
         nucleic acid microarray technology comprising a License & Supply
         Agreement and a Research & Development Agreement on July 1st 2001.

(2)      Due to changes in CBMX business model for the collaboration the Parties
         have decided to reformulate their mutual relationship with this
         Agreement dated as of July 1st 2002 which shall replace in its
         entirety, including all existing amendments, such Research and
         Development Agreement of July 1st 2001 and with a new License Agreement
         (the "License Agreement") which replaces in its entirety the existing
         License and Supply Agreement dated July 1st 2001 and is signed
         concurrently with this Agreement.

(3)      CBMX shall develop for RDG under the terms and conditions of this
         Agreement prototypes and products.

1.       DEFINITIONS

1.1      Capitalised terms in this Agreement shall have the same meaning as in
         the License Agreement unless defined otherwise in this Agreement. The
         following terms shall have the following meaning:

         (1)      "Agreement" shall mean this Research and Development Agreement
                  and all Annexes hereto.

         (2)      "Chiplettes" shall mean smaller (in size) Chips (with Chips
                  being generally about * cm2 or larger) that have Content
                  synthesized prior to dicing to Chiplette size (approximately *
                  cm2 or smaller) and do not have separate electrical contact
                  points.

         (3)      "Development Program" shall mean the development program as
                  attached to this Agreement as ANNEX I for the development of
                  products under this Agreement, which Development Program may

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.
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                  be amended from time to time by the Parties in the Development
                  Steering Committee as set forth herein.

         (4)      "Development Steering Committee or DSC" shall mean a group of
                  technical and business representatives from RDG and CBMX
                  responsible for managing the Development Program and the R&D
                  collaboration under this Agreement as detailed in Section 3 of
                  this Agreement.

         (5)      "Development and Payment Schedule" shall mean the time
                  schedule for the development and payments based on milestones
                  as attached to this Agreement as ANNEX I.

         (6)      "Effective Date" shall mean the effective date of a settlement
                  of the law suit between CBMX and its employee Donald
                  Montgomery on one side and Nanogen, Inc, of San Diego,
                  California on the other side at the United States District
                  Court, Southern District of California; Case No.: CV2369 JM
                  RBB, in which settlement Nanogen irrevocably confirms and
                  accepts CBMX sole ownership to U.S. Patents 6,093,302 and
                  6,280,595 and covenants not to sue or make any claim against
                  CBMX in the future regarding CBMX legitimate ownership of U.S.
                  Patents 6,093,302 and 6,280,595.

         (7)      "Miniarrays" shall mean smaller (in size) Chips (with Chips
                  being generally *) that are *.

         (8)      "Mono-Cassette" shall have the meaning set forth in the
                  License Agreement.

         (9)      "Results" shall mean any and all results (including but not
                  limited to products, inventions, data, Know-How, Software,
                  ideas and other expertise) developed under the Development
                  Program and to be delivered to RDG, whether patentable or not.

         (10)     "Specifications" shall mean the general specifications for all
                  Deliverables and SOP's for functional test of Deliverables
                  preliminarily set forth in Annex II, Attachments 1 - 9
                  attached hereto and as amended from time to time by the DSC.

         (11)     "Wafer(s)" shall mean the generally circular silicon-based
                  semiconductor product having the circuitry etched thereon and
                  arranged for a plurality of Arrays, Blank Chips, Miniarrays or
                  Chiplettes to be diced out.

         (12)     "Derivative Work" means any RDG developed or funded
                  translation (including any translation into other computer
                  languages), modification, correction, addition, extension,
                  upgrade, improvement, compilation, abridgement or other form
                  in which the Software may be recast, transformed or adapted
                  including but not limited to all forms in which such
                  Derivative Work would infringe any of the copyrights,
                  including audiovisual copyrights, in the Software..

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

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         (13)     "Errors" shall mean (i) defects in the Software that cause it
                  not to operate in conformance with the Specifications; and
                  (ii) defects in the documentation, if supplied by CBMX, that
                  render it inaccurate, erroneous, unreliable, or not in
                  conformance with the Specifications.

         (14)     "Object Code" means Software written in machine readable form
                  generated by compilation of the Source Code and contained in a
                  medium that permits it to be loaded in and operated on an
                  electronic computer.

         (15)     "Source Code" means Software written in programming language
                  in a form intelligible to trained programmers and capable of
                  being translated into Object Code readable and usable by
                  machines.

         (16)     "Deliverable(s)" shall mean the Deliverables as listed in
                  Annex I to this Agreement as accepted by RDG according to the
                  Specifications in Annex II ("Acceptance"). For Software, the
                  following shall also be part of the Deliverables:

                  o        the Source Code of the Software

                  o        the Object Code of the Software

                  o        a detailed description of the development platform

                  o        documentation containing the algorithms and the
                           mathematical routines behind them

2.       OBLIGATIONS OF CBMX

2.1 EXPANSION. Subject to the terms of this Agreement, CBMX shall endeavour
using reasonable and diligent efforts with technical support from RDG if needed
to conduct the development pursuant to the Development Program and deliver the
Results of according to the Development Program and the Specifications.

2.2 MODIFICATIONS. The Parties may further modify the Specifications and
Development Program for the products listed in Annex 1 based upon the advice and
guidance of the DSC. However, both Parties must mutually agree in the DSC to any
such modifications. RDG and CBMX may both propose changes of and additions to
the Specifications with the goal of improving performance and quality. The
change notification procedures to be implemented in such updating of the
Specifications shall be agreed upon by the DSC.

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

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2.3 MODIFICATIONS OF SRD'S. Notwithstanding the above paragraph and anything
else in this Agreement, regarding the Specifications (Software Requirement
Documents) of the Software to be developed under the Development Program RDG
will have the continuing right to modify the Specifications after consultation
with CBMX prior to CBMX delivery and RDG's final acceptance. CBMX will develop
the Software to conform to such modifications of the Specifications at no
additional charge, unless any such modification of the Specifications by RDG
does require CBMX's expenditure of more time and effort, in which case both
Parties have to agree to the changes and will negotiate an appropriate
consideration. CBMX shall also have the right to propose changes to the
Specifications and such changes may be implemented upon RDG's prior
approval.

2.4 MAINTENANCE, UPDATES AND NEW VERSIONS OF SOFTWARE. Following the Acceptance
of Software by RDG, CBMX will provide resources at RDG's request to promptly
correct any Errors or bugs that RDG becomes aware of at terms and conditions to
be negotiated between the Parties. Subject to future payments, terms and
conditions, CBMX will also at RDG's request provide resources for updates
and new versions of Software during the lifetime of the commercialisation of
Software and Licensed Products using Software.

3.       COLLABORATION STRUCTURE

3.1 EXCHANGE OF INFORMATION. The Parties hereto agree that the success of the
mutual collaboration is dependent in part on mutual trust and on a regular
exchange of information between both Parties. To this extent the Parties shall
exchange regularly, depending on the progress made, experiences, information and
all Results in appropriate written or oral form, preferably through the exchange
of electronic files. The exchange of information relating to the Development
Program shall be made to all members of the DSC.

3.2 COMMITTEE FORMATION. Upon execution of this Agreement by both Parties, the
DSC shall be formed and shall consist of three (3) individuals designated from
time-to-time by RDG and three (3) individuals designated from time-to-time by
CBMX. The DSC shall be co-chaired by one representative from RDG and one
representative from CBMX. The DSC shall manage the collaboration, and if
necessary amend the Development Program and Payment Schedule and the
Specifications. The DSC shall meet at least once every calendar quarter year in
person alternating between Europe and the Seattle area and shall meet more
frequently through other means (E.G., video conferencing, telephone
conferencing, emails, etc.) as needed. The DSC has the following
responsibilities:

         o        to change and amend the Development Program,

         o        to approve, change and amend the Specifications,

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

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         o        to attest the fulfilment of research milestones and to trigger
                  the related milestone payments to affect, and if necessary
                  change and amend milestones under the Development Program,

         o        to keep track of progress with respect to the Development
                  Program,

         o        to inform each other about the acquisition of additional
                  funding (e.g. external R&D funding from national government
                  and/or EU bodies),

         o        to approve publications by CBMX and by RDG, as the case may
                  be,

         o        to recommend and supervise the patenting strategy for Results
                  that constitute new inventions in the Field.

3.3 COMMUNICATIONS. All communications regarding this Agreement between the
Parties, other than communications among the DSC members, shall be directed to
the persons set forth below:

              for RDG:         Roche Diagnostics GmbH
                               Legal Department
                               Sandhofer Strasse 116
                               68305 Mannheim
                               Germany

                               Tel.: 0621-759 2971
                               Fax: 0621-759 8508

                               cc: Head of R&D

                               Nonnenwald 2,
                               82372 Penzberg,
                               Germany

              for CBMX:        Combimatrix Corporation
                               6500 Harbour Heights Parkway
                               Mukilteo, WA 98275
                               US
                               Attn: General Counsel

                               Tel +425 493 2000
                               Fax + 425 493 2010

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

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3.4 Decisions of the Development Steering Committee require the majority of each
of the members designated by each Party either at a meeting or by written
consent. All decisions and meetings of the Development Steering Committee shall
also be recorded in meeting minutes and signed by both Parties. The Development
Steering Committee shall cast votes only when at least 2 members of each Party
are present. In the event that the Development Steering Committee - despite
good-faith efforts - should be unable to reach a decision on any issue, it will,
upon request of the members of either Party, submit the issue to an executive
panel consisting of one member (member of the DSC or executive) appointed by the
President of each Party. If this panel is unable to solve the issue in mutual
agreement, the Parties will appoint a panel of three arbitrators. Each Party
shall have the right to appoint one arbitrator and the two arbitrators will then
appoint a third arbitrator. The arbitration procedures will take place in New
York, NY according to the rules laid out in Section 11.2 of the License
Agreement. The arbitration panel shall make decisions with the majority of its
members and such decision shall be final and binding on both Parties with regard
to the issue in question.

4.       CONSIDERATION  FOR  DEVELOPMENT  EFFORTS

4.1 PAYMENTS. In consideration of CBMX development efforts and delivery of the
Deliverables under this Agreement, RDG shall make the payments according to the
Development Program and Payment Schedule according to Section 4.2 within thirty
(30) days from the date of each invoice by CBMX.

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

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4.2 PAYMENTS BASED ON MILESTONE. The payments for fulfilment of milestones are
contingent upon timely delivery of the Deliverables in Annex 1 according to the
Development Program and the Specifications, that each is themselves subject to
change by the Development Steering Committee. If such timely delivery cannot be
achieved by CBMX and such delay has not previously been considered by the
Development Steering Committee by way of a revision of the timeline in the
Development Schedule or the Specifications, the payments under this 4.2 and the
Payment Schedule in Annex 1 shall be put on hold until the milestone has been
completed. If the Milestone cannot be completed according to revised
Specifications within 3 months from the original date or 3 months from the date
of Specification revisions (if the Specification revision was made to provide
for a more achievable metric), the Development Steering Committee shall decide
on a further course of action. For Software, CBMX will promptly correct any
Errors in any Software set forth in a statement of Errors to be submitted by RDG
to CBMX within 20 days from delivery of a testable version of the respective
Software prior to its acceptance. CBMX will redeliver a corrected version to RDG
within thirty (30) working days after receipt of the statement of Errors (unless
CBMX is unable to provide such cure within such time period without unreasonable
effort or expense, in which case the cure period shall extend beyond thirty (30)
days so long as CBMX diligently pursues a cure). RDG will, within ten (10)
working days after such redelivery, provide CBMX with written acceptance or
another statement of Errors. The procedure set forth in this Section will be
repeated until RDG's Acceptance of the Software.

4.3 PAYMENTS UPON TERMINATION. In the event of a termination by RDG of the
License Agreement under Section 9.4 therein and concurrent or subsequent
termination of this Agreement under Section 8.1 d), all payments due at such
time for Deliverables ready for delivery or Deliverables for which payments by
CBMX are due to a Third Party shall be paid by RDG upon delivery of Deliverables
according to the Specifications and the Development Program. For commenced
projects under the Development Program where no Deliverables are due and
deliverable upon termination and payment has not already been made, RDG shall
reimburse CBMX for the actual internal costs spent by CBMX up until the
effective date of termination. Such cost calculation shall be provided to RDG by
CBMX and prepared according to US GAAP accounting rules. RDG shall have the
right and opportunity to audit the correctness of such calculation.

5.       INTELLECTUAL PROPERTY

5.1 RESULTS. Any and all Results under this Agreement shall be owned by the
Party or its employees, agents or consultants obligated to assign to a Party who
generated or invented such Results. Joint Results and related intellectual
property (E.G., patents and patent applications) shall be owned jointly and
either party may pursue or license its interest therein without the approval of
or accounting to the other party. Inventorship of any inventions arising from
work performed under this Agreement shall be determined according to the
applicable patent laws of the country where the invention has occurred. The
strategy about how best to exploit the Results in the Field will be determined
jointly by the Development Steering Committee and patent counsel for RDG and

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

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CBMX, as well as any issues regarding the cost of obtaining and maintaining
patents covering the Results. Any and all Results within the Field that are
Licensed Products and owned partly or entirely by CBMX shall automatically and
without further payments be part of the Technology of the License Agreement and
fall under the License grant in Section 2 of the License Agreement on an
exclusive basis if so elected by RDG without any further up-front payments or
minimum royalties and at running royalty terms and conditions to be negotiated
by the Parties in good faith at such time when the Result is commercialized by
RDG, unless the Parties have previously agreed to a running royalty.

5.2 PRODUCTS. Miniarrays, Chiplettes, Desk Top Synthesizers or any other
products developed partially or in their entirety under this Agreement for use
in the Field shall automatically be included without further initial payments in
the definition of Licensed Products and the license grant under the License
Agreement. In addition the rights to the Mono-Cassette that is designed to only
fit the Hybridizer/Reader shall be exclusive to RDG as detailed in the license
grant of the License Agreement.

6.       CONFIDENTIALITY

The confidentiality provisions under Section 10 the License Agreement shall also
apply for this Agreement.

7.       PUBLICATIONS

In case of scientific publications that concern the Development Program, each
Party agrees to take the other Party' s interests into account. Therefore, each
Party will send the other Party a manuscript of any intended publication prior
to its publication in order to give the other Party the opportunity to make
comments and to make sure that any applications for intellectual property rights
are not endangered by such publication. Each Party will send its comments within
three weeks after receipt of the manuscript. Special agreements can be made for
"abstracts" because of their urgency.

8.       TERM AND TERMINATION

8.1 TERM AND TERMINATION. This Agreement shall commence on the Effective Date
and shall continue thereafter for five years from the Effective Date unless
terminated in accordance with the clauses set forth herein. Either Party shall
have the right to terminate this Agreement with immediate effect by notice in
writing to the other Party, upon occurrence of any of the following events:

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

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         (a) If the other Party commits a material breach of any of the terms
         and conditions of this Agreement or the License Agreement and does not
         cure a material breach susceptible of being cured within a period of 60
         (sixty) days after having been requested to do so by the non-defaulting
         Party period (provided, however, that nothing in this subsection shall
         prevent a Party from seeking immediate, injunctive relief where
         appropriate to protect proprietary information or such Party's
         proprietary or intellectual property rights); or

         (b) if the other Party enters into liquidation whether compulsorily or
         voluntarily otherwise than for the purpose of amalgamation or
         reconstruction, or a petition in bankruptcy is filed by or against
         either Party in any competent court and the same is not dismissed
         within 120 days; or

         (c) if the other Party is adjudicated bankrupt or insolvent or ceases
         to do business, or otherwise terminates its business operations; or

         (d) Either party may terminate this Agreement if the License Agreement
         is terminated by the other Party, such termination to be effective upon
         the later of termination of the License Agreement and thirty (30) days
         after the written notice of termination or RDG may terminate this
         Agreement with 120 days prior notice concurrently with RDG's
         termination of the License Agreement for any reason it deems reasonable
         and upon effectiveness of such of termination shall make the payments
         as described in Section 4.3 of this Agreement and Section 9.4 of the
         License Agreement.

8.2      EFFECTS OF TERMINATION. Subject to this Section 8.2, upon any
         termination or expiration of this Agreement, the Parties' rights and
         obligations under this Agreement shall terminate and expire. Upon any
         termination or expiration of this Agreement, the rights and obligations
         of the Parties as set forth out in Paragraphs 5-11 of this Agreement
         and any accrued obligations under this Agreement at the date of such
         termination or expiration shall survive any termination or expiration
         as well as any other provision intended by their nature to survive
         termination or expiration of this Agreement.

9.       DISPUTE RESOLUTION

9.1 FIRST STAGE CONSULTATION. The Parties agree to first try in good faith to
resolve and settle all disputes, controversies and differences that may arise
between them in respect of this Agreement, including specifications, through
mutual consultation among senior representatives of the Parties within thirty
(30) days of a written settlement request of either Party.

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

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9.2 ICC ARBITRATION. Any disputes arising out of or in connection with this
Agreement, including specifications and any question regarding its existence,
validity, breach, violation or termination, shall be exclusively and finally
settled under the Rules of Conciliation and Arbitration of the International
Chamber of Commerce effective January 1st 1998 in the then applicable form ("ICC
Rules") by three arbitrators (the "Arbitral Tribunal") appointed in accordance
with the said Rules. Any award granted by the Arbitral Tribunal shall be final,
binding and enforceable against the Parties. The arbitration shall at all times
be held in the English language, provided, however, that (i) a Party may submit
documents in the German language and such submitted documents will only be
translated into the English language if the Arbitral Tribunal or a Party so
requests, and (ii) that the cost of translation of any such German language
documents shall be at the sole expense of the Party submitting such documents.
Any arbitration arising pursuant to this Agreement shall be held in New York,
N.Y., and discovery shall only be admissible to the extent permitted under or
not prohibited under Art. 20 of the ICC-Rules and agreed upon by the Parties who
shall cooperate with one another at the outset of the proceeding to define the
extent of discovery reasonably needed to complete the proceeding. The procedural
law of the State of New York shall otherwise be applied to any proceedings held
in connection with said arbitration. Judgment upon an award rendered by the
Arbitrator shall be binding and may be entered in any court with appropriate
jurisdiction, and the Parties consent to jurisdiction therein for the purpose of
such enforcement. Notwithstanding anything to the contrary contained in this
Agreement or elsewhere, each of the parties hereby acknowledges and expressly
agrees that any breach by it of this Agreement, which does or may result in loss
of confidentiality or improper use of Confidential Information, would cause
irreparable harm to the other party for which money damages would not be an
adequate remedy. Therefore, each of the Parties hereby agree, that in the event
of any breach of this Agreement by it, the non-breaching Party will have the
right to seek injunctive relief in a court of competent jurisdiction against
continuing or further breach by the breaching Party, without the necessity of
proof of actual damages, in addition to any other right which either Party may
have under this Agreement, or otherwise in law or in equity.

10.      APPLICABLE LAW.

This Agreement shall be governed by and construed under the laws of the State of
New York, and the United States without regard to conflicts of laws provisions
thereof and without regard to the United Nations Convention on Contracts for the
International Sale of Goods. In any action or proceeding to enforce rights under
this Agreement, the prevailing Party shall be entitled to recover costs and
attorneys' fees.

11.      MISCELLANEOUS.

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

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11.1 ENTIRE AGREEMENT. This Agreement constitutes the entire understanding
between the Parties hereto concerning the subject matter hereof and supersedes
all other agreements, arrangements and understandings, written or oral,
concerning such subject matter between the Parties, not including any existing
confidentiality agreement between them and except for the accompanying License
Agreement.

11.2 AMENDMENTS. Any modification of or amendment to this Agreement must be made
in writing. The same applies to any agreement waiving this requirement.

11.3 WAIVERS. A failure or delay on the part of any Party hereto in exercising
any power or right hereunder shall not operate as a waiver by such Party of any
succeeding default by the other, nor shall any single or partial exercise of
such right or power preclude any other or further exercise thereof or the
exercise of any other right or power. A Party's consent to or waiver, express or
implied, of the other Party's breach of its obligations hereunder shall not be
deemed to be construed as a consent to or waiver of any other breach of the same
or any other obligations of the other Party. A Party's failure to complain of
any act, or failure to act, by the other Party, to declare the Party in default,
to insist upon the strict performance of any obligation or condition of this
Agreement or to exercise any right or remedy consequent upon a breach thereof,
no matter how such failure continues, shall not constitute a waiver by such
Party of its rights hereunder, of any such succeeding breach, or of any other
obligation or condition. A Party's consent in any one instance shall not limit
or waive the necessity to obtain such Party's consent in any future instance and
in any event no consent or waiver shall be effective for any purpose hereunder
unless such consent or waiver is in writing and signed by the Party granting
such consent or waiver.

11.4 STATUS OF PARTIES. In its performance under this Agreement, each Party
shall be an independent contractor and neither Party (nor any employee or agent
thereof) shall be an agent or partner of the other Party. Neither party shall
have the right to assume or create obligations on the others behalf, express or
implied.

11.5 HEADINGS. The headings of the various Paragraphs and Sections of this
Agreement are used solely for the convenience of the Parties, do not form part
of this Agreement and are not intended to affect the interpretation or meaning
of this Agreement or to define, limit, extend or describe its scope or intent.

11.6 THIRD PARTIES. None of the provisions of this Agreement shall be for the
benefit of or enforceable by any Third Party except where otherwise expressly
provided in this Agreement.

11.7 DATES. In computing any period of time pursuant to this Agreement, the day
or date of the act, notice, event or default from which the designated period of
time begins to run will not be included. The last day of the period so computed
will be included, unless it is a Saturday or Sunday or other public holiday in
either of the Parties countries of origin in which event the period runs until
the end of the next day which is not a Saturday or Sunday or public holiday.

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

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11.8 CONSTRUCTION. The Parties agree that each Party has reviewed this Agreement
and that any rule of construction, to the effect of ambiguities, are to be
resolved against the drafting Parties shall not apply to the interpretation of
this Agreement.

11.9 ASSIGNMENT. This Agreement, and the rights and duties contained in this
Agreement shall not be assigned by RDG to any Third Party, except as part of a
sale of substantially all of RDG's business(es) pertaining to all of the
Licensed Products and, in such event, only collectively and in their entirety.
RDG shall give CBMX prior written notice of such assignment and obtain RDG's
assignees' written agreement to abide by the terms of this Agreement and assume
all of RDG's obligations under this Agreement. Upon such assignment, the term
RDG as used in this Agreement shall thereafter mean the assignee of RDG. This
Agreement and rights and duties contained in this Agreement shall not be
assigned by CBMX to any Third Party, except as part of a sale of substantially
all of CBMX's business(es) pertaining to all of the Licensed Products and, in
such event, only collectively and in their entirety. CBMX shall give RDG
reasonable prior written notice of such assignment and obtain CBMX's assignees'
written agreement to abide by the terms of this Agreement and assume all of
CBMX's obligations under this Agreement. Upon such assignment, the term CBMX as
used in this Agreement shall thereafter mean the assignee of CBMX. Except as
otherwise provided in this Agreement, neither Party will have the right to
assign or transfer any of its rights or to delegate any of its duties under this
Agreement to any Third Party without the prior written consent of the other
Party. Any attempted assignment or transfer without such consent will be void
and of no effect, and will automatically terminate all rights of the Party
attempting such assignment or transfer under this Agreement.

11.10 SEVERABILITY. Should any provision of this Agreement be or become invalid
or unenforceable, then the validity and enforceability of the remaining
provisions shall thereby not be affected. The Parties to this Agreement are
under the obligation to use good faith efforts to substitute, if possible, any
invalid or unenforceable provision by a legally effective provision which comes
as close as possible to the economic purpose of the invalid or unenforceable
provision. The same applies to any amendment to this Agreement.

11.10 SURVIVORSHIP. The Agreement will be binding upon and will inure to the
benefit of the Parties hereto and their respective successors and permitted
assigns.

11.11 OFFICIAL LANGUAGE. The official language of this Agreement is English.
Documents or notices not originally written in English will have no effect under
this Agreement until they have been translated into English and the English
translation will then be the controlling form of the document or notice.

11.12 INTERPRETATION. When a reference is made in this Agreement to Paragraphs
or Sections, such reference will be to a Paragraph or Section of this Agreement
unless otherwise indicated. The headings contained in this Agreement are for
reference purposes only and will not affect in any way the meaning or
interpretation of this Agreement. Whenever the words "include", "includes" or
"including" are used in this Agreement they will be deemed to be followed by the
words "without limitation." The phrases "the date of this Agreement," "the date
hereof" and terms of similar import, unless the context otherwise requires, will
be deemed to refer to the date appearing in the introductory paragraph of this
Agreement.

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                             C O N F I D E N T I A L

                                      -14-

11.13 COUNTERPARTS. This Agreement may be executed in two or more counterparts,
all of which taken together will be considered one and the same agreement and
will become effective when two or more counterparts have been signed by each of
the Parties and delivered to the other Parties, it being understood that all
Parties need not sign the same counterpart.

11.14 FORCE MAJEURE. If the performance of any obligation under this Agreement
(except payment of monies due) by either Party is prevented, restricted or
interfered with by reason of casualty, accident, fire, strikes or labor
disputes, inability to procure materials or components, power or supplies, war
or other violence, any law, order, proclamation, regulation, ordinance, demand
or requirement of any government agency or intergovernmental body, or any other
act, circumstance or condition whatsoever beyond the reasonable control of such
Party, the Party so affected, upon giving notice to the other Party, shall be
excused from such performance to the extent of such prevention, restriction or
interference.

11.16 LIMITATION OF LIABILITY. Notwithstanding anything to the contrary in this
Agreement, in no event will either Party be liable for any indirect, punitive,
special, incidental or consequential damage in connection with or related to
this Agreement (including loss of profits, use, data, or other economic
advantage), howsoever arising, either out of breach of this Agreement, including
breach of warranty, or in tort, even if the other Party has been previously
advised of the possibility of such damage.

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                             C O N F I D E N T I A L

                                      -15-

IN WITNESS WHEREOF the Parties hereto have signed this Agreement:

Mannheim, Germany, September 25, 2002           Mukilteo, Washington .......2002

ROCHE DIAGNOSTICS GMBH                          COMBIMATRIX CORPORATION

By: /S/ DR. RAEHS                               By: /S/ AMIT KUMAR PH.D
    ------------------------                        ------------------------
    Dr. Raehs                                       Amit Kumar Ph.D.

i.V.

By: /S/ S. WILLEMSEN                            By: /S/ EDWARD EADEH
    ------------------------                        ------------------------
    S. Willemsen                                    Edward Eadeh

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                              C O N F I D E N T I A L

                                                       -16-

                                                      ANNEX I

DEVELOPMENT PROGRAM AND PAYMENT SCHEDULE
----------------------------------------

<TABLE>
<CAPTION>

A                 * SYSTEM

Product          Due Date        Deliverable                                         Milestone Payment
                                                                                       in Mio US $
----------------------------------------------------------------------------------------------------------------------
<S>              <C>             <C>                                            <C>
Hybridizer/      *               Delivery of a total of * of                                      *
Reader                           Hybridizer/Readers according to
including                        Hybridizer/Reader Specifications (Attachment
operating                        1a and 8). Acceptance and payment when * have
software                         passed according to Specs. (1a + 8) *
Old Lic&Supply                   additional * until * at *.). * additional *
                                 until * at *.
----------------------------------------------------------------------------------------------------------------------
Flowcell
*)
*                *               Acceptance and payment when * have passed                        *
                                 according to Flowcell Specifications and          (Manufacturing Transfer Payment
                                 functional test assay specs (attachment 8).       according to Section 4.4 of the
                                                                                         License Agreement)
                                 Availability of * Flowcell in quantities
                 *               according to forecast made by Roche
                                 (attachment 9).

                                 Series production established at * according
                 *               to Flowcell Specifications. Acceptance and                       *
                                 payment when series Flowcells have passed         (Manufacturing Transfer Payment
                                 functional test according to Flowcell Specs       according to Section 4.4 of the
                                 (att. 2 and 1b, 8).                                     License Agreement)

                                 Delivery of * Mono-Cassette (based on *)
                                 data, comparing * versus * side by side
                 *               showing * experiment. (according to
                                 attachment 7 and 8)                                               *
----------------------------------------------------------------------------------------------------------------------

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                              C O N F I D E N T I A L

                                                       -17-

Mono-Cassette    *               Acceptance and payment when * have passed
*                                according to Mono-Cassette Specs (Attachment                      *
MFG                              3) and functional test assay specs                (Manufacturing Transfer Payment
                                 (Attachment 8). Availability of *                according to Section 4.4. of the
                                 Mono-Cassette in quantities according to                License Agreement)
                                 forecast made by Roche.

                 *               Acceptance and payment when series                                *
                                 Mono-Cassette have passed functional test         (Manufacturing Transfer Payment
                                 according to Mono-Cassette Specifications        according to Section 4.4. of the
                                 (Attachment 3 and 1b, 8).                               License Agreement)
----------------------------------------------------------------------------------------------------------------------
* including
operating
/synthesis
software         *               Delivery of * and * to CBMX from * according
                                 to specifications. (OldLic&Supply)
                                                                                                  *

                                 Acceptance of * and * according to
                                 Specifications (Attachment 4 and 8). Delivery
                 *               of * and * (* in *, * in *)                                      *
                                                                                   (Manufacturing Transfer Payment
                                 Final Specifications for * Instrument            according to Section 4.4. of the
                                 available - mutual agreed. Production                   License Agreement)
                                 manufacturer identified.

                 *
                                 Availability of * instrument and accepted by
                                 Roche according to * Specifications

                 *                                                              * if not manufactured by RDG

----------------------------------------------------------------------------------------------------------------------
Probe Design
and layout
software         *               Delivery of *according to Probe Design                           *
                                 Software Specifications and accepted by Roche     (Manufacturing Transfer Payment
                                 according to Specifications.                     according to Section 4.4. of the
                                                                                         License Agreement)
----------------------------------------------------------------------------------------------------------------------

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                              C O N F I D E N T I A L

                                                       -18-

Data Extraction
Software                         Delivery of * according to Data Extraction
Additional       *               Software Specifications (Attachment 6) and
                                                                                * (invoice * payment in *)
                                 accepted by Roche according to Specifications.
                 *               Delivery of * according to Specifications and
                                 acceptance by Roche according to
                                 Specifications.
----------------------------------------------------------------------------------------------------------------------
* System         *               Acceptance of Roche of the * System according
                                 to functional test and System Specifications.                    *
                                 (Attachment 1b and 8)
----------------------------------------------------------------------------------------------------------------------
Desk Top         *               Milestones and * Specifications will be
Synthesizer                      decided in the Steering Committee.
Including                                                                                         *
synthesis                        Expected development time from architectural
software and                     drawings to launch are *
reagents
Project 3 from
July 1st 2001
R&D
----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
B

* System and other development projects

--------------------------------------------------------------------------------------------------------------
<S>              <C>             <C>                                                                   <C>
* Project 5      *               Milestones and Specifications will be decided in the Steering
                                 Committee.                                                            *
--------------------------------------------------------------------------------------------------------------
*                *               Milestones and Specifications will be decided in the Steering
Project 5                        Committee.                                                            *

--------------------------------------------------------------------------------------------------------------
*                *               Milestones and Specifications will be decided in the Steering         *
Project 2 from                   Committee.
July 1st 2001
R&D
--------------------------------------------------------------------------------------------------------------
</TABLE>

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                              C O N F I D E N T I A L

                                                       -19-

                                                     ANNEX II

<TABLE>
<CAPTION>

SPECIFICATIONS

ATTACHEMENTS 1 - 9

------------------------------------------------------------------------------------------------------------------
                              Titel                       File                        Responsible
------------------------------------------------------------------------------------------------------------------
<S>                           <C>                         <C>                         <C>
Attachment 1a                 Hybridizer/ Reader          see attached                *
                              Specifications
------------------------------------------------------------------------------------------------------------------
Attachment 1b                 System Specifications       see attached                *

------------------------------------------------------------------------------------------------------------------
Attachment 2                  Flowcell specifications     see attached                *

------------------------------------------------------------------------------------------------------------------
Attachment 3                  Mono-Cassette               see attached                *
                              specifications
------------------------------------------------------------------------------------------------------------------
Attachment 4a                 * Spec                      see attached                *

------------------------------------------------------------------------------------------------------------------
Attachment 4b                 * spec                      see attached                *
                                                                                      Final version in *

------------------------------------------------------------------------------------------------------------------
Attachment 5                  Probe Design Software SRD   see attached                *

------------------------------------------------------------------------------------------------------------------
Attachment 6                  Data Extraction Software    see attached                *
                              (and Run software)
------------------------------------------------------------------------------------------------------------------
Attachment 7                  Project 4                   see attached                *

------------------------------------------------------------------------------------------------------------------
Attachment 8                  Functional Test for *       see attached                *
                              maybe adopted according to                              Final version *
                              development status/
                              mutually agreed)
------------------------------------------------------------------------------------------------------------------
Attachment 9                  Mono-Cassette/ Flowcell     see attached                *
                              forecast
------------------------------------------------------------------------------------------------------------------
</TABLE>

Research & Development Agreement, Combimatrix                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.<PAGE>

                                                                  EXHIBIT 10.19

                                  CONFIDENTIAL

===============================================================================

                                LICENSE AGREEMENT

===============================================================================

                                     between

                                CombiMatrix Corporation.
                                6500 Harbour Heights Pkwy.
                                Mukilteo, WA 98275
                                USA

                                (hereinafter referred to as "CBMX")

                                                          [LICENSOR]

                                      and

                                Roche Diagnostics GmbH
                                Sandhofer Stra(beta)e 116
                                68305 Mannheim
                                Germany

                                (hereinafter referred to as "RDG")

                                                          [LICENSEE]

<PAGE>

                                  CONFIDENTIAL

                                      -2-

This License Agreement (the "Agreement"), is made and entered into by and
between RDG and CBMX. RDG and CBMX may be referred to herein individually as a
"Party" and collectively as the "Parties."

RECITALS

WHEREAS

(1)      CBMX and RDG have entered into a broad strategic collaboration in
         nucleic acid microarray technology comprising a License & Supply
         Agreement and a Research & Development Agreement on July 1st 2001.

(2)      Whereas due to changes in CBMX business model for the collaboration the
         Parties have decided to reformulate their mutual relationship with this
         Agreement which shall replace in its entirety and including all
         existing amendments such License and Supply Agreement of July 1st 2001,
         and a new R&D Agreement (the "R&D Agreement") which replaces in its
         entirety the existing Research and Development Agreement dated July 1st
         2001 and is signed concurrently with this Agreement.

(3)      CBMX is the owner of intellectual property rights, including Know-How
         and various patents, patent applications, copyrights and trademarks in
         the field of nucleic acid microarray technology, including its
         proprietary micro chip technology, and is willing to grant to RDG a
         license under the terms and conditions of this Agreement;

(4)      CBMX and RDG have now agreed to enter into this Agreement and to
         regulate their mutual rights and obligations in the manner hereinafter
         appearing.

NOW, THEREFORE the Parties hereto in consideration of the premises and of the
mutual covenants, agreements, representations and warranties hereinafter set
out, the Parties hereto agree to enter into this Agreement according to the
following terms and conditions:

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -3-

                                   PARAGRAPH 1
                                   DEFINITIONS
                                   -----------

The following terms shall be defined as follows for the purpose of this
Agreement:

         (1) "Affiliate" shall mean any person, company or entity that, directly
or indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with, RDG or CBMX. For purposes of this definition,
"control" shall mean the direct or indirect ownership of (a) at least fifty per
cent (50%) or the maximum controlling percentage, if less than fifty per cent
(50%), as allowed by applicable law, of the outstanding voting securities or
participating profit interest of such entity, (b) at least fifty per cent (50%)
of the decision making authority of such entity, or (c) otherwise has the
ability to direct the management of such entity. Notwithstanding the foregoing,
the term "Affiliate" shall not include Genentech, Inc. a company located at 1
DNA Way, South San Francisco, California, U.S.A.

         (2) "Agreement" shall mean this License Agreement and all Annexes and
Exhibits hereto.

         (3) "Agreements" shall mean this Agreement and the R&D Agreement
collectively."

         (4) "* Instrument" shall mean a hardware device with operating software
supporting the electrochemical in situ synthesis of oligonucleotides on Chips,
capable of synthesizing * or more Flow-Cells or Slide-Chips in parallel.

         (5) "Chip(s)" shall mean an electrode-containing microarray device
containing a three-dimensional, porous reaction layer (PRL), wherein the device
is capable of synthesizing nucleic acids using a CBMX patented electrochemical
process.

         (6) "Slide-Chips" shall mean a Chip mounted on any device that is not a
Mono-cassette.

         (7) "Confidential Information" shall mean information, including,
without limitation, information related to inventions, technology, know-how,
trade secrets, plans, data, research, development, design, processes,
manufacture, marketing, financial matters, and personnel matters that one Party
or its Affiliates discloses to the other Party or its Affiliates in any form,
written, oral or otherwise, with the exception of information which

              (i) at the time of disclosure is in the public domain or which
              after disclosure becomes part of the public domain through no
              fault of the recipient; or

              (ii) the recipient can show, by its written records, was already
              in its possession at the time of disclosure hereunder; or

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -4-

              (iii) the recipient can prove was rightfully received from a Third
              Party, which to the recipient's knowledge, the Third Party,
              without breach of any obligation of secrecy, is free to disclose
              to others; or

              (iv) the recipient can prove, by its written records, was
              independently developed by the recipient without reference to the
              confidential information disclosed to it pursuant to this
              Agreement; or

              (v) is required by law, regulation, rule, act or order of any
              governmental authority to be disclosed: provided that the
              recipient shall give the disclosing party timely, prior
              notification if it intends to disclose any Confidential
              Information in order that disclosing party shall have an
              opportunity to intervene to limit or prevent disclosure of such
              Confidential Information; and provided further that the recipient
              disclose only the minimum Confidential Information required to be
              disclosed in order to comply with its disclosure obligations.

         (8) "Content" shall be the compilation of nucleic acid capture probes
on a Chip, including their pattern of distribution. Content may include
proprietary nucleic acid sequences and/or may be separately protectable by
patent rights.

         (9) "Commercial Launch" shall mean the first commercial sale or other
disposition of a Licensed Product to an End User in the Territory on a Licensed
Product-by-Licensed Product basis.

         (10) "Desk Top Synthesizer" shall mean a hardware device with operating
software supporting the electrochemical in situ synthesis of oligonucleotides on
Chips, capable of synthesizing up to * Flow--Cells in parallel.

         (11) "Distributor" shall mean a reseller, which is not an Affiliate of
a Party, of a Licensed Product purchased from such Party or one of its
Affiliates or Sales Representatives for resale, transfer or other disposition to
an End User.

         (12) "Effective Date" shall mean the effective date of a settlement of
the law suit between CBMX and its employee Donald Montgomery on one side and
Nanogen, Inc, of San Diego, California on the other side at the United States
District Court, Southern District of California; Case No.: CV2369 JM RBB, in
which settlement Nanogen irrevocably confirms and accepts CBMX sole ownership to
U.S. Patents 6,093,302 and 6,280,595 and covenants not to sue or make any claim
against CBMX in the future regarding CBMX legitimate ownership of U.S. Patents
6,093,302 and 6,280,595.

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -5-

         (13) "End User" means any person, firm, entity or corporation that
purchases or takes possession from RDG or its Affiliates and Distributors of any
of the Licensed Products for intended use within the Field.

         (14) "Field" shall mean all fields of * application within the
Technology regardless of user type or market segment using * means. However, the
field shall exclude applications in Proteomics and electrochemical detection

         15) "Flowcell(s)" shall mean a device consisting of a Chip with a flow
through cavity.

         (16) "Hybridizer/Reader" shall mean a hardware device and embedded
operating Software that combines a nucleic acid hybridization function and an
optical Chip reader, and related components, capable of optically reading a
Chip, but only if the Chip is housed in a Mono-Cassette format.
Hybridizer/Reader shall exclude hardware devices that combine a nucleic acid
hybridization function and an optical Chip reader function that cannot read
Chips in a Mono-Cassette format.

         (17) "Know-How" shall mean all technical information, trade secrets,
know-how and knowledge owned or licensed by CBMX, patentable or not, (including
without limitation all "Results" owned party or entirely by CBMX under the R&D
Agreement), which is proprietary and confidential. "Know-How" shall exclude
rights to Content.

         (18) "Major Markets" means the United States, the European Union and
Japan.

         (19) "Mono-Cassette(s)" shall mean a device consisting of a Flowcell
containing oligonucleotides synthesized on a Chip designed to be read by the
Hybridizer/Reader, provided however that a Slidechip format shall not be a
Mono-Cassette.

         (20) "Net Sales" shall mean, with respect to sales or other
dispositions of a Licensed Product the amount invoiced by RDG, RDG's Affiliate
or Sublicensees to End Users, Distributors or agents less

         a)       value added tax, sales tax and similar taxes levied on such
                  sales or other dispositions (provided that such taxes are
                  separately invoiced to such End Users, distributors or agents)
                  as reported in RDG's or RDG Affiliates' internal accounting
                  system (I.E. DIASIS);

         b)       the Refund Deduction in the amount of * percent (* %);

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -6-

         c)       the Reagent Rental Deduction which shall be mutually agreed to
                  by the Parties in the event that RDG enters into a Reagent
                  Rental Agreement with any End User customer.

In the event one or more Licensed Product(s) is/are sold together or otherwise
disposed of with one or more other Licensed Products at a single price (such
combination is hereinafter referred to as "Combination Product"), such single
price shall be allocated among the Licensed Product(s) in the Combination
Product based on the market price for such products when sold separately. If any
such product is not being sold alone with a market price, CBMX and RDG shall
agree upon a fair market price for that product. Solely this price agreed upon
shall be used to calculate Net Sales.

         (21) "Licensed Patents" means any and all patents or patent
applications owned or controlled by CBMX (including without limitation all
"Results" owned partly or entirely by CBMX under the R&D Agreement),
divisionals, continuations-in-part, reissues, reexaminations, extensions and
corresponding foreign patents and patent applications) in existence or hereafter
filed and as disclosed in ANNEX I to this Agreement, at least, one Valid Claim
of which would be infringed by the making, using or selling of any Licensed
Product by an unauthorized party.

         (22) "Licensed Product(s)"shall mean any product the making, using or
selling of which would, but for this license, infringe at least one Valid Claim
of the Licensed Patents. Licensed Products shall include but not be limited to
Mono-Cassette, Flow-Cell, Hybridizer/Reader, Desk Top Synthesizer, Reagents,
Synthesis Reagents and Software as defined under this Agreement. Licensed
Products shall include all products to be developed under the R&D Agreement (as
defined in the R&D Agreement) not specifically mentioned above and covered by,
at least, one Valid Claim of a Licensed Patent.

         (23) "Party or Parties" shall mean RDG and/or CBMX.

         (24) "Phosphoramidites" shall mean a nucleotide monomer having a
phosphoramidite moiety for linking one nucleotide to the next.

         (25) "Proteomics" shall mean any method of protein detection or
detection using proteins.

         (26) "Reagents" shall mean all chemicals, solutions, reagents materials
and buffers used in labeling, processing and detection on Chips.

         (27) "Reagent Rental Deduction" shall mean a lump sum deduction of fees
for all services which are included in reagent prices such as instrument service
costs, instrument depreciation, finance costs, disposables and rental fees and
shall apply only if Licensed Products are sold by RDG in an arrangement whereby

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -7-

the cost of an Instrument is financed by the sale of other Licensed Products
(Reagent Rental Agreement).

         (28) "Refund Deduction" shall mean a deduction from the Gross Amount of
Licensed Products equal to * percent (* %) of the amount determined by
subtracting from such Gross Amount all value added taxes, sales taxes and
similar taxes reflected in such Gross Amount, intended by the Parties, in lieu
of deductions for actual expenses, as an allowance for all expenses to be
deducted from Gross Amount to calculate Net Sales, including, without limitation
(a) amounts repayable or creditable because of charge backs, refunds, rebates or
retroactive price reductions, (b) tariffs, duties, excises and other taxes
imposed upon the production, sale, delivery or use of Licensed Products
(excluding value added taxes, sales taxes and similar taxes), and (c)
distribution and other customary expenses, such as freight, transportation and
insurance expenses.

         (29) "Software" shall mean, (i) software in machine-readable form for
operating the Hybridizer/Reader(s) and Desk Top Synthesizer and the * Instrument
("OPERATING SOFTWARE") (ii) nucleic acid probe chip design software ("PROBE
DESIGN SOFTWARE"), software for preparation of raw data from the Operating
Software for later analysis ("DATA EXTRACTION SOFTWARE"), (iii) Derivative
Works, and (iv) any future software developed by CBMX for RDG for use with any
other Licensed Product, in each case only if such Software is supplied to RDG or
its Affiliate by CBMX sold and/or licensed as a separate stand-alone product by
RDG to an End User.

         (30) "Synthesis Reagents" shall mean chemicals, solutions and materials
used in the electrochemical synthesis process.

         (31) "Sublicensing Income" shall mean any consideration paid to RDG by
Third Parties for the sublicensing of Licensed Patents including but not limited
to up-front fees and royalties.

         (32) "Technology" shall mean all Licensed Patents, and Know-How.

         (33) "Territory" shall mean the entire world.

         (34) "Third Party" or "Third Parties" shall mean any person or persons
or entity or entities other than RDG or CBMX, or an Affiliate of RDG or CBMX at
the time of the conclusion of this Agreement.

         (35) "Valid Claim" shall mean an issued claim of a patent within the
Licensed Patents which has not otherwise been held invalid or unenforceable by a
court from which no appeal has or can be taken, or has not otherwise finally
been held not patentable by the appropriate administrative agency after all
rights of appeal have been exhausted, or a claim in a pending patent application

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -8-

within the Licensed Patents, the subject matter of which claim, as well as the
application containing said claim, not having been pending for more than six
years from the Effective Date of this Agreement.

                                   PARAGRAPH 2
                                GRANT OF LICENSE
                                ----------------

         2.1 LICENSE GRANT. Subject to the terms and conditions of this
Agreement, CBMX hereby grants to RDG a royalty-bearing world-wide and
non-exclusive (subject to co-exclusivity to Desk Top Synthesizers below) license
- with the unlimited right to sublicense to its Affiliates as long as they
remain Affiliates - to use the Technology only within the Field only for the
purposes of manufacturing, having manufactured, distributing, selling and having
sold Licensed Products, in the Territory to End Users, together with an
exclusive right to sublicense Licensed Patents to Third Parties for the
manufacturing, having manufactured, selling and distributing of Mono Cassettes.
CBMX may not license to Third Parties any of its Licensed Patents for
manufacturing, selling and sublicensing of the Hybridizer/Reader. The license
granted hereunder shall be co-exclusive to RDG for the Desk Top Synthesizer. RDG
hereby grants back to CBMX a non-exclusive license without the right to
sublicense, except to sublicense its Affiliates, so long as they remain
Affiliates, under the Licensed Patents to manufacture, have manufactured,
distribute and sell the Desk Top Synthesizer; PROVIDED, HOWEVER, that CBMX may
not sell to End Users any model of the Desk Top Synthesizer with the same
features as listed in the features section of the Specifications as amended from
time to time by the Parties for new developments. If RDG due to reasons within
its reasonable control does not achieve the first Commercial Launch of the Desk
Top Synthesizer within 18 months from the date where the prototype of the Desk
Top Synthesizer is delivered to RDG according to the Specifications, RDG shall
grant back to CBMX the full right to sublicense the Desk Top Synthesizer at
terms and conditions to be negotiated at such time in good faith; PROVIDED,
HOWEVER, that any delay of the Commercial Launch caused by a delay in the
development and delivery of the Chip and/or Synthesis Reagent under the R&D
Agreement shall not be deemed a reason which is under RDG's reasonable control.
For Software, RDG is granted additional rights to:

         a)       modify, adapt, enhance or otherwise create Derivative Works
                  (as defined in the R&D Agreement) of the Software

         b)       Make, have made, use, sell and have sold Licensed Products
                  which include, Software at the royalty rate applicable for
                  such Licensed Product under this Agreement or use, sell and
                  have sold Software separately as a stand alone products under
                  the royalty rate for Software in this Agreement.

         c)       grant implied sublicenses to the Software to End-Users.

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -9-

         2.2 TRADEMARKS AND PATENT MARKINGS. CBMX grants to RDG and its
Affiliates a non-exclusive, royalty-free right and license in the Territory to
use and refer to the CBMX names, trademarks, logos, symbols, designs, and other
designations ("CBMX Brands") used in connection with the Licensed Products as
the source of origin in order to advertise and market same to End Users together
with the right to sublicense Affiliates so long as they remain Affiliates of
RDG. RDG shall, however, not have any obligation to use such CBMX Brands in
connection with any of the Licensed Products. In addition, RDG shall mark all
Licensed Products, including promotional brochures and the like, with the
appropriate patent numbers appropriate for each Licensed Product.

                                   PARAGRAPH 3
                         REPRESENTATIONS AND WARRANTIES

         3.1 (a) CBMX represents and warrants that it has full legal rights,
title and the corporate authority to grant the license to RDG under the
Technology, the Agreements create legal, valid and binding obligations on it and
are enforceable against it in accordance with their respective terms; it is
neither aware of the existence of any lawsuits nor has received notice of any
claims, either asserted or implied, of CBMX Technology's infringement of a
patent or other proprietary right anywhere in the world.

                  (b) To the best of its knowledge, CBMX is not aware of any
rights of Third Parties that, in the legal opinion of CBMX, are valid and
enforceable and are infringed by the making, using or selling of the Licensed
Products. CBMX represents that it owns and controls the U.S. 6,093,302 patent
and all divisionals, continuations and corresponding foreign patents and patent
applications ("Core Patent").

                  (c) CBMX further represents and warrants that it will take all
necessary measures and pay all official fees (such as annuities) necessary to
maintain the Licensed Patents needed to protect commercial products throughout
the term of this Agreement. CBMX does not assume any liability that the Licensed
Product shall be approved by governmental authorities or any other institution
or supervisory board or similar agencies. CBMX, however, shall support RDG in
its efforts to obtain such approvals, by providing documentary, technical and
other information already in its possession requested by any regulatory
authority if requested to do so by RDG provided however that if CBMX is required
to provide statements and deliver documentation not already in its possession,
RDG shall compensate CBMX for such efforts on a cost plus 25% basis to be agreed
upon in good faith.

                  (d) Except as explicitly set forth in this Agreement CBMX,
however, does not assume any liability of any kind over and above the
representations and warranties related to the infringement or non infringement
of any third Party intellectual property rights or for the efficiency and
merchantability of the Licensed Products.

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -10-

         3.2 RDG RDG represents and warrants that it has the authority to enter
into the Agreements and it is not a party to any agreement, understanding or
business relationship that prevents it from carrying out its obligations under
the Agreements; the Agreements create legal, valid and binding obligations on it
and are enforceable against it in accordance with their respective terms; and
RDG has the full right and corporate power to enter into and perform its
obligations under the Agreements. RDG shall not promote or advertise the use of
Licensed Products outside the Field, however, RDG shall not be held responsible
or liable by CBMX for any application of Licensed Products outside the Field
that is initiated by End-users or other customers.

         3.3 INDEMNITY. Each Party agrees to indemnify, defend and hold harmless
the other Party, its Affiliates and their respective officers, directors,
employees and agents (collectively hereinafter referred to as the "Indemnities")
from and against any and all claims, damages, losses, expenses, fines,
penalties, costs, obligations and other liabilities (including legal cost and
fees) resulting from Third Party claims actually incurred by any of them arising
from, related to or caused by the material breach of any representation or
warranty contained in this Paragraph 3, provided that any such indemnity shall
not exceed individually or collectively an amount equal to the sum of all
payments made by RDG to CBMX under this Agreement and the R&D Agreement through
the date of the event or occurrence giving rise to the breach.

                                   PARAGRAPH 4
                                    PAYMENTS
                                    --------

         4.1 RUNNING ROYALTIES. In consideration of the granting of the rights
hereunder, RDG shall pay to CBMX a Running Royalty in percentage amounts
staggered per any twelve month period ("Year") as described below following the
First Commercial Launch of the Hybridizer/Reader for Category 1 Products and
following the First Commercial Launch of the Desk Top Synthesizer for Category 2
Products and any future Licensed Products not presently covered by any of
Category 1 and Category 2:

Instruments, including but not limited to, Hybridizer/Reader (Category 1) and
Desk Top Synthesizer (Category 2).

         o        Year 1=* % of Net Sales
         o        Year 2=* % of Net Sales
         o        Year 3=* % of Net Sales

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -11-

         o        Year 4=* % of Net Sales
         o        Year 5 onward=* % of Net Sale

Reagents (Category 1):

         o        Year 1=* % of Net Sales
         o        Year 2=* % of Net Sales
         o        Year 3=* % of Net Sales
         o        Year 4=* % of Net Sales
         o        Year 5=* % of Net Sales
         o        Year 6 onward * % of Net Sales

Synthesis Reagents/Phosphoramidites (Category 2):

         o        Year 1=* % of Net Sales
         o        Year 2=* % of Net Sales
         o        Year 3=* % of Net Sales
         o        Year 4=* % of Net Sales
         o        Year 5 onward=* % of Net Sales

Synthesis Reagents/Non-Phosphoramidites (Category 2):

         o        Year 1=* % of Net Sales
         o        Year 2=* % of Net Sales
         o        Year 3=* % of Net Sales
         o        Year 4=* % of Net Sales
         o        Year 5= * % of Net Sales

Mono-Cassette (Category 1):

         o        Year 1=* % of Net Sales
         o        Year 2=* % of Net Sales
         o        Year 3=* % of Net Sales
         o        Year 4=* % of Net Sales
         o        Year 5=* % of Net Sales
         o        Year 6 onward * % of Net Sales

Flow Cells (Category 2):

         o        Year 1=* % of Net Sales
         o        Year 2=* % of Net Sales

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -12-

         o        Year 3=* % of Net Sales
         o        Year 4=* % of Net Sales
         o        Year 5=* % of Net Sales
         o        Year 6 onward * % of Net Sales

Software if sold separately (Category 1):

         o        Year 1=* % of Net Sales
         o        Year 2=* % of Net Sales
         o        Year 3=* % of Net Sales
         o        Year 4=* % of Net Sales
         o        Year 5=* % of Net Sales
         o        Year 6 onward * % of Net Sales

         4.2 MINIMUM ROYALTIES. Moreover, commencing with the First Commercial
Launch of a Licensed Product, RDG shall pay to CBMX in quarterly installments
beginning with the beginning of the first full calendar quarter following the
First Commercial Launch of a Licensed Product, minimum royalties in the
following amount throughout a period of * Years ("Minimum Period"):

Year 1:           $ * ($ * per calendar quarter)
Year 2:           $ * ($* per calendar quarter)
Year 3:           $ * ($* per calendar quarter)

Such minimum royalties shall be fully creditable against any Running Royalties
during the entire period of Year 1 - Year 3, in the sense that no Running
Royalties and no Sublicensing Income share under Section 4.1 and Section 4.3 is
payable to CBMX per calendar quarter unless and only to the extent that the
amount of Running Royalties due based on Net Sales of Licensed Products and
Sublicensing Income share under Section 4.3 during any calendar quarter
reporting period exceeds *. At the end of the Minimum Period any excess or
shortfall of minimum royalties versus Running Royalties and Sublicensing Income
Share shall be compensated making sure that during the entire Minimum Period,
RDG shall not have paid to CBMX more (but also not less) than the minimum
royalties unless and only to the extent that Running Royalties and Sublicensing
Income Share accrued during the entire Minimum Period exceed the total amount of
minimum royalties ($*) plus the total amount of the creditable portion of * ($*)
under Section 4.4. If the total amount of Running Royalties and Sublicensing
Income Share accrued during the Minimum Period does not reach or exceed $*, only
the creditable portion of the Manufacturing Transfer payments in the amount of
$* shall after the Minimum Period be creditable against Running Royalties and
Sublicensing Income Share. If such total amount accrued is between $* and $*,
the remaining amount of the creditable portion of the Manufacturing Transfer
Payments shall also be creditable against Running Royalties and Sublicensing
Income share after the Minimum Period.

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -13-

         4.3 SUBLICENSING INCOME SHARE. RDG shall pay to CBMX * of all
Sublicensing Income except for Software sold or licensed separately where the
Running Royalty for Software shall apply.

         4.4 MANUFACTURING TRANSFER PAYMENTS. RDG shall pay CBMX a total of $*
for the granting of rights under the Technology and the transfer of certain
Deliverables as noted below. A sum of $ * of such amount shall be paid as a
non-reimbursable up-front component within 30 days following the Effective Date.
A sum of $ * of such amount shall be payable for Deliverables attached to
milestones as indicated in Annex 1 of the R&D Agreement and such amount shall be
fully deductible under Section 4.2 above.

         4.5 STATEMENTS. The amount of the Running Royalty and/or minimum
royalty payable shall be determined with effect to the end of each applicable
calendar quarter. For that purpose RDG shall prepare and deliver to CBMX an
accurate statement. Such statement shall set forth Sublicensing Income and the
Net Sales by Licensed Product (Category) by country and applicable exchange
rates and shall be forwarded to CBMX within thirty (30) days from the end of
each calendar quarter together with the respective payment. The responsible
financial officer of RDG shall certify in writing that such statement is correct
and complete.

         4.6 PAYMENT TIMING. The Running Royalties, Sublicensing Income Share
and Minimum Royalties, as applicable, shall be paid in immediately available
funds together with delivery of the statement described in Section 4.5 above.
Payment will not be deemed to have been made until such time as the funds are
available to CBMX at the designated location.

         4.7 PAYMENT FORM. Unless otherwise stated, all payments between the
Parties are to be made in US dollars in the United States. All conversions from
foreign currency to US dollars will be determined on the last business day of
each calendar quarter in the calendar quarter in which the payment, revenue,
expenditure, or other transaction involving non-US currency occurred, based on
the exchange rate of WALL STREET JOURNAL on the last day of that quarter. RDG
agrees to take all reasonable and necessary steps to register this Agreement in
any country of the Licensed Patents where such is required to permit the
transfer of funds and/or payment of Royalties to CBMX hereunder or is otherwise
required by the government or law of such country to effectuate or carry out
this Agreement.

         4.8 TAXES ON SALES OF LICENSED PRODUCTS. CBMX will pay all taxes or
withholding taxes payable on CBMX's income generated from the sale of Licensed
Products and deductible under applicable laws of the United States ("Withholding
Taxes"); and RDG agrees to use its best efforts to do anything necessary to
enable CBMX to claim exemption from the payment of Withholding Taxes under
double taxation or similar agreements in force and shall produce to CBMX proper
evidence of payments of any Withholding Taxes.

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -14-

         4.9 LATE PAYMENTS. In the event that payments under this Paragraph are
more than thirty (30) days late, the Party whose payments are late shall be
obliged to pay to the other an interest charge at an annual rate of three months
LIBOR plus 3% (three per cent) compounded weekly for each week that payments are
late.

                                   PARAGRAPH 5
                                BOOKS AND RECORDS
                                -----------------

RDG shall keep during the term of this Agreement and for five years thereafter
complete and accurate records reflecting all information necessary or useful in
verifying the accuracy of the reports required by this Agreement and relevant to
determination of payments to be made by the Parties hereunder. CBMX shall have
the right to hire an independent certified public accountant to inspect all such
records so required to be kept by RDG (which accountant shall be reasonably
acceptable to RDG and shall agree in writing to keep all information
confidential except as needed to disclose any discovered discrepancies);
provided, such audit: (i) is conducted during normal business hours, (ii) is
conducted no more often then once per year and (iii) is conducted only after
CBMX has given reasonable prior written notice. CBMX shall bear the full cost
and expense of such audit, unless a discrepancy in excess of * % of the amount
due in favor of CBMX is discovered, in which event RDG shall bear the full cost
and expense of such audit. Regardless of the amount of discrepancy discovered,
all discrepancies (and interest thereon) shall be immediately due and payable.

                                   PARAGRAPH 6
                       INFRINGEMENT AND VALIDITY CHALLENGE
                       -----------------------------------

The Parties hereto shall inform each other promptly on any infringement of the
Licensed Patents in the Field. CBMX shall defend the Licensed Patents against
validity challenges of Third Parties. Upon reasonable request by RDG, CBMX shall
take commercially reasonable actions against any infringer of the Licensed
Patents in the Field. Any monetary damage, award or other judgment or recovery
that will be adjudicated in favor of CBMX as a result of such infringement shall
belong exclusively to CBMX. All cost for litigation as a result of a validity
challenge or an infringement shall be borne by CBMX. RDG may join any such
action if it is invited to so join by CBMX. The terms and conditions applicable
in such a scenario, including sharing of any damage, award or other judgment or
recovery that will be adjudicated in favor of CBMX as a result of such
infringement would be reflected in a written amendment to this Agreement signed
by both Parties, it being understood that if RDG joins in such action and bears
part of the cost, it would also obtain an equitable amount of the proceeds
depending on its share of cost participation.

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -15-

                                   PARAGRAPH 7
                               THIRD PARTY RIGHTS
                               ------------------

         7.1 COOPERATION AGAINST INFRINGEMENT CLAIMS. The Parties, after
consultation with their respective legal counsel, in order to reduce expenses
and avoid duplication of defense efforts, have concluded that they will have
certain interests in common in the event either Party is charged, formally or
informally, with or it is alleged by a Third Party that either Party in making,
using or selling the Licensed Products infringes a Third Party right and may be
able to assert certain common defenses. The Parties and counsel for the Parties
emphasize that the purpose of this Section is not to prevent or impede a jury
from fully considering all evidence that should properly come before it at the
trial of such a case, but rather to enable the Parties to minimize the cost and
expense involved in the efforts directed toward their common interests and
defenses and in defending against certain claims made (and expected to be made)
in the lawsuit that are applicable to the Parties. The Parties and their
respective counsel understand that it may become necessary to exchange and
discuss privileged information relating to their common interests and defenses.
The Parties and their counsel desire to set forth the terms under which
privileged information will be exchanged and discussed and wish to memorialize
their agreement relating to such charges and the sharing of privileged
information and for the protection of such exchanges and discussions in reliance
upon the joint defense privilege. Accordingly, because it is in their common
interests and to assist the defense of such claims, the Parties and their
counsel may share documents, files, letters, plans or evidence they have in
their possession whether or not same is privileged, proprietary, or
confidential. In order to render legal services to the Parties and for the
purposes of a joint defense, the Parties and their counsel may find it advisable
and necessary to communicate with one another. These communications may include,
without limitation, joint conferences of counsel, joint interviews of witnesses,
deponents, experts, and consultants, and exchanges of documents and information.
The subject matter of these communications and exchanges may include but may not
be limited to (a) strategy and tactics regarding defense of the litigation; (b)
legal memoranda, factual and background memoranda, legal theories, deposition
summaries, notes of witness interviews, and witness statements and descriptions
of produced documents, and (c) other privileged documents. All such
communications and exchanges would be protected from disclosure to any Third
Party by the attorney/client privilege, the attorney work-product privilege, the
trial preparation exclusion, the joint defense privilege, the party
communication privilege, and any other applicable privileges and protections,
and such privileges and protections will not be waived as a result of such
communications and exchanges among the Parties and their counsel. The documents
and information described in this Section and exchanged and discussed pursuant
to this Section would be subject to the following conditions which the Parties
believe and intend will preserve the confidentiality of such communications and
work product pursuant to the joint defense, common defense and party
communication privileges: (a) such documents would be maintained in confidence
by counsel and used by counsel solely for purposes of rendering legal advice to
and defending the Parties in the applicable proceedings; (b) such documents and
information may be disclosed to outside or in-house counsel (and such counsel's

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -16-

legal assistants, secretaries, word processing personnel and consultants)
representing the Parties in connection with the defense; (c) such documents and
information additionally may be disclosed to present or former directors,
officers or employees of a Party, for purposes of preparing for deposition or
trial, or for purposes of interviewing potential deponents or witnesses, or for
other purposes in connection with the defense; (d) such documents and
information additionally may be disclosed to expert witnesses and consultants
retained by one or more of the Parties in connection with defense.

         7.2 STRATEGY. If either Party is charged with or it is alleged by a
Third Party in a manner that either Party in making, using or selling the
Licensed Products within the Field infringes a Third Party right, then the
Parties shall immediately confer in good faith regarding strategy and a course
of action. In consultation with the other Party, the Party charged with any
infringement shall use best efforts to defend itself against any such
infringement claim provided however that RDG may determine in its sole business
judgement to negotiate a license with such Third Party according to Section 7.4
while considering CBMX interests before potentially affecting such interests by
way of settlement, cross claim or Third Party claim or otherwise. Each Party
shall be entitled to engage legal counsel of its own choosing and * the
reasonable costs and expenses of such proceedings (to be calculated, reconciled
and paid within 90 days of the end of a fiscal quarter) insofar as they relate
to common issues of law and/or fact; provided that *.

         7.3 STOP ORDER. If RDG is, as a result of a final, unappealable and
conclusive judgment of a court, ordered to cease making, using or selling the
Licensed Products in any of the Major Markets, and if CBMX finally fails to
secure RDG's right to further exploit the Licensed Products in any of the Major
Markets, RDG shall be entitled to immediately stop payment of any Royalties
payable hereunder and terminate this Agreement.

         7.4 THIRD PARTY LICENSE. If RDG deems it reasonable under its sole
business judgement to obtain or maintain a license * regarding the
commercialization of a Licensed Product in any of the Major Markets, it may
negotiate or maintain a license from such Third Party at its sole discretion and
*. However such * shall be calculated and applied on a country-by-country basis
where the Third Party agreement applies and shall not exceed a * of the
royalties under Section 4.1 of * from Net Sales for * and * from Net Sales for
all other Licensed Products (except for * ) provided however that such deduction
shall apply only after *. For * of such Third Party royalties and/or license
issuance fees shall be * royalties owed by RDG to CBMX for * without any time
limitation following the Effective Date, however such *may not exceed * of the
royalty amount owed to CBMX for *.

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -17-

                                   PARAGRAPH 8
                              MOST FAVORED LICENSEE
                              ---------------------

CBMX is under the obligation to offer to RDG the same favorable royalty terms as
CBMX grants to other non exclusive licensees of the Licensed Patents in the
Field before or after the Effective Date, to the extent such other licenses
involve similar volumes and up-front payments and a similar scope of the license
with the proviso that any license grant and related pricing and royalty terms by
CBMX to any governmental entity or otherwise used to settle a pending or
threatened legal dispute shall be excluded from this paragraph.

                                   PARAGRAPH 9
                              TERM AND TERMINATION
                              --------------------

         9.1 TERM. This Agreement shall commence on the Effective Date and shall
continue thereafter in each country in the Territory for as long as the earlier
of fifteen years from the Effective Date or expiration of the Core Patent unless
terminated in accordance with the clauses set forth herein.

         9.2 TERMINATION. Either Party shall have the right to terminate this
Agreement with immediate effect by notice in writing to the other Party, upon
occurrence of any of the following events:

         (a)      If the other Party commits a material breach of any of the
                  terms and conditions of this Agreement or the R&D Agreement
                  and does not cure a material breach susceptible of being cured
                  within a period of 60 (sixty) days after having been requested
                  to do so by the non-defaulting Party period (provided,
                  however, that nothing in this subsection shall prevent a Party
                  from seeking immediate, injunctive relief where appropriate to
                  protect proprietary information or such Party's proprietary or
                  intellectual property rights); or

         (b)      if the other Party enters into liquidation whether
                  compulsorily or voluntarily otherwise than for the purpose of
                  amalgamation or reconstruction, or a petition in bankruptcy is
                  filed by or against either Party in any competent court and
                  the same is not dismissed within 120 days; or

         (c)      if the other Party is adjudicated bankrupt or insolvent or if
                  the other ceases to do business, or otherwise terminates its
                  business operations;

         (d)      if either Party terminates this Agreement in accordance with
                  the terms of this Agreement.

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -18-

         9.3 EFFECTS OF TERMINATION. Upon any termination or expiration of this
Agreement, the licenses granted under Section 2 shall terminate and RDG shall no
longer be authorized to purchase Licensed Products. However RDG shall have the
right to sell off any Licensed Products on stock at any of its facilities upon
termination and shall pay the royalties owed for such sales under Section 4 to
CBMX. Upon any termination or expiration of this Agreement, the rights and
obligations of the Parties as set forth out in Paragraphs 9, 10, 11, 12 and 13
of this Agreement and any accrued obligations under this Agreement at the date
of such termination shall survive any termination as well as any other provision
intended by their nature to survive termination of this Agreement. With the
exception of the foregoing rights and obligations and, if applicable, those
under Section 9.4, all rights and obligations hereunder shall immediately
terminate and cease upon termination or expiration of this Agreement.

         9.4 UNILATERAL TERMINATION BY RDG. After one hundred and twenty (120)
days' prior written notice to CBMX, RDG may terminate this Agreement for any
reason it deems reasonable. Upon any such termination RDG shall pay to CBMX in
one lump sum an amount equal to the sum of Running Royalties owed for the
selling of Licensed Products upon the effective date of termination. No other
payments and obligations of any kind shall be due to CBMX except as those set
forth in the R&D Agreement in the event it is also terminated.

                                  PARAGRAPH 10
                                 CONFIDENTIALITY
                                 ---------------

         10.1 GENERALLY. CBMX and RDG shall each retain in confidence and not
disclose to Third Parties Confidential Information obtained from the other under
this Agreement. Receiving party will not utilize Confidential Information except
for the express purposes of: performing this Agreement. Both Parties shall be
allowed to disclose Confidential Information if it is disclosed to:

              (i) Consultants and Affiliates of the receiving party who have a
              genuine need to know in connection with the receiving Party's
              performance of this Agreement and are obligated to maintain it in
              confidence pursuant to written agreements.

              (ii) A governmental agency or authority if necessary to obtain
              regulatory approval, reviews clearance, registration, or
              authorization in order to manufacture, develop, market or sell any
              of the Licensed Products, provided that the receiving Party or its
              may, without liability hereunder, disclose only that portion of
              the which legal counsel advises the receiving Party is legally
              required to be disclosed (and only to such persons as such counsel
              advises the receiving Party are legally required) and that the
              receiving Party exercise its best efforts to preserve the
              confidentiality of the Confidential Information, including,
              without limitation, by cooperating with the providing Party to
              obtain an appropriate protective order or other reliable assurance
              that confidential treatment will be accorded the Confidential
              Information.

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -19-

              (iii) To patent authorities as reasonably may be required in a
              patent application filed by CBMX or RDG covering subject matter
              which is encompassed within this Agreement upon consent of the
              originator of the Confidential Information, which consent shall
              not be unreasonably withheld; or

              (iv) To other entities as may be required by law, regulation or
              judicial order, subject to the proviso in clause (ii) above.

Each Party acknowledges that the restrictions contained in this Paragraph 11 are
necessary and reasonable to protect the legitimate interests of the Parties. The
provisions of this Paragraph 11 shall survive the expiration or termination of
this Agreement for a period of five (5) years. Notwithstanding any other
provision of this Agreement, the receiving party or its Affiliates will be
permitted to disclose any Confidential Information if such disclosure:

         (a)      Is in response to a valid order by a court or other
                  governmental body having jurisdiction; or
         (b)      Is otherwise required by law or by the requirements of any
                  competent securities regulatory authority;

PROVIDED, HOWEVER, that the receiving Party will make every effort to inform the
disclosing Party of the order, law or requirement such that the disclosing Party
will have a reasonable opportunity to seek an appropriate protective order.

                                  PARAGRAPH 11
                            DISPUTES AND ARBITRATION
                            ------------------------

         11.1 FIRST STAGE CONSULTATION. All disputes, controversies and
differences which may arise between the Parties hereto in respect of this
Agreement shall tried to be settled amicably through mutual consultation within
thirty (30) days of a written settlement request of either Party.

         11.2 ICC ARBITRATION. Any disputes arising out of or in connection with
this Agreement, including any question regarding its existence, validity,
breach, violation or termination, shall be exclusively and finally settled under
the Rules of Conciliation and Arbitration of the International Chamber of
Commerce effective January 1st 1998 in the then applicable form ("ICC Rules") by
three arbitrators (the "Arbitral Tribunal") appointed in accordance with the
said ICC Rules. Any award granted by the Arbitral Tribunal shall be final,
binding and enforceable against the Parties. The arbitration shall at all times
be held in the English language, provided, however, that (i) a Party may submit
documents in the German language and such submitted documents will only be
translated into the English language if the Arbitral Tribunal or a Party so
requests, and (ii) that the cost of translation of any such German language

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -20-

documents shall be at the sole expense of the Party submitting such documents.
Any arbitration arising pursuant to f this Agreement shall be held in New York,
N.Y. Discovery shall only be admissible to the extent permitted and not
prohibited under Article 20 of the ICC-Rules and agreed upon by the Parties who
shall cooperate with one another at the outset of the proceeding to define the
extent of discovery reasonably needed to complete the proceeding. The procedural
law of the State of New York shall otherwise be applied to any proceedings held
in connection with said arbitration. Judgment upon an award rendered by the
Arbitrators shall be binding and may be entered in any court with appropriate
jurisdiction, and the Parties consent to jurisdiction therein for the purpose of
such enforcement. Notwithstanding anything to the contrary contained in this
Agreement or elsewhere, each of the parties hereby acknowledges and expressly
agrees that any breach by it of this Agreement, which does or may result in loss
of confidentiality of the Confidential Information, would cause irreparable harm
to the other party for which money damages would not be an adequate remedy.
Therefore, each of the Parties hereby agree, that in the event of any breach of
this Agreement by it, the non-breaching Party will have the right to seek
injunctive relief in a court of competent jurisdiction against continuing or
further breach by the breaching Party, without the necessity of proof of actual
damages, in addition to any other right which either Party may have under this
Agreement, or otherwise in law or in equity.

                                  PARAGRAPH 12
                                 APPLICABLE LAW
                                 --------------

This Agreement shall be governed by and construed under the laws of the State of
New York, and the United States without regard to conflicts of laws provisions
thereof and shall not apply the United Nations Convention on Contracts for the
International Sale of Goods. In any action or proceeding to enforce rights under
this Agreement, the prevailing Party shall be entitled to recover costs and
attorneys' fees.

                                  PARAGRAPH 13
                                FINAL PROVISIONS
                                ----------------

         13.1 ENTIRE AGREEMENT. This Agreement constitutes the entire
understanding between the Parties hereto concerning the subject matter hereof
and supersedes all other agreements, arrangements and understandings, written or
oral, concerning such subject matter between the Parties, not including any
existing confidentiality agreement between them and the accompanying R&D
Agreement but including the agreements cited in Recital (1) of this Agreement.

         13.2 AMENDMENTS. Any modification of or amendment to this Agreement
must be made in writing. The same applies to any agreement waiving this
requirement.

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -21-

         13.3 WAIVERS. A failure or delay on the part of any Party hereto in
exercising any power or right hereunder shall not operate as a waiver by such
Party of any succeeding default by the other, nor shall any single or partial
exercise of such right or power preclude any other or further exercise thereof
or the exercise of any other right or power. A Party's consent to or waiver,
express or implied, of the other Party's breach of its obligations hereunder
shall not be deemed to be construed as a consent to or waiver of any other
breach of the same or any other obligations of the other Party. A Party's
failure to complain of any act, or failure to act, by the other Party, to
declare the Party in default, to insist upon the strict performance of any
obligation or condition of this Agreement or to exercise any right or remedy
consequent upon a breach thereof, no matter how such failure continues, shall
not constitute a waiver by such Party of its rights hereunder, of any such
succeeding breach, or of any other obligation or condition. A Party's consent in
any one instance shall not limit or waive the necessity to obtain such Party's
consent in any future instance and in any event no consent or waiver shall be
effective for any purpose hereunder unless such consent or waiver is in writing
and signed by the Party granting such consent or waiver.

         13.4 STATUS OF PARTIES. In its performance under this Agreement, each
Party shall be an independent contractor and neither Party (nor any employee or
agent thereof) shall be an agent or partner of the other Party. Neither party
shall have the right to assume or create obligations on the others behalf,
express or implied.

         13.5 HEADINGS. The headings of the various Paragraphs and Sections of
this Agreement are used solely for the convenience of the Parties, do not form
part of this Agreement and are not intended to affect the interpretation or
meaning of this Agreement or to define, limit, extend or describe its scope or
intent.

         13.6 THIRD PARTIES. None of the provisions of this Agreement shall be
for the benefit of or enforceable by any Third Party except where otherwise
expressly provided in this Agreement.

         13.7 DATES. In computing any period of time pursuant to this Agreement,
the day or date of the act, notice, event or default from which the designated
period of time begins to run will not be included. The last day of the period so
computed will be included, unless it is a Saturday or Sunday or other public
holiday in either of the Parties countries of origin in which event the period
runs until the end of the next day which is not a Saturday or Sunday or public
holiday.

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -22-

         13.8 CONSTRUCTION. The Parties agree that each Party has reviewed this
Agreement and that any rule of construction to the effect of ambiguities are to
be resolved against the drafting Parties shall not apply to the interpretation
of this Agreement.

         13.9 ASSIGNMENT. This Agreement, and the License, rights and duties
contained in this Agreement shall not be assigned by RDG to anyThirtd Party,
except as part of a sale of RDG's business(es) pertaining to all of the Licensed
Products and, in such event, only collectively and in their entirety. RDG shall
give CBMX prior written notice of such assignment and obtain RDG's assignees'
written agreement to abide by the terms of this Agreement and assume all of
RDG's obligations under this Agreement. Upon such assignment, the term RDG as
used in this Agreement shall thereafter mean the assignee of RDG. This Agreement
and rights and duties contained in this Agreement shall not be assigned by CBMX
to any Third Party, except as part of a sale of CBMX's business(es) pertaining
to all of the Licensed Products and, in such event, only collectively and in
their entirety. CBMX shall give RDG prior written notice of such assignment and
obtain CBMX's assignees' written agreement to abide by the terms of this
Agreement and assume all of CBMX's obligations under this Agreement. Upon such
assignment, the term CBMX as used in this Agreement shall thereafter mean the
assignee of CBMX. Except as otherwise provided in this Agreement, neither Party
will have the right to assign or transfer any of its rights or to delegate any
of its duties under this Agreement to any Third Party without the prior written
consent of the other Party. Any attempted assignment or transfer without such
consent will be void and of no effect, and will automatically terminate all
rights of the Party attempting such assignment or transfer under this Agreement.

         13.10 SEVERABILITY. Should any provision of this Agreement be or become
invalid or unenforceable, then the validity and enforceability of the remaining
provisions shall thereby not be affected. The Parties of this Agreement are
under the obligation to use good faith efforts to substitute, if possible, any
invalid or unenforceable provision by a legally effective provision which comes
as close as possible to the economic purpose of the invalid or unenforceable
provision. The same applies to any amendment to this Agreement.

         13.11 NOTICES. Notices, requests, reports and other communication in
connection with this Agreement shall be delivered to the addresses of the
Parties appearing in the heading of this Agreement for the attention of

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -23-

         Roche Diagnostics GmbH
         Legal Department
         Sandhofer Stra(beta)e 116
         68305 Mannheim
         Germany

         Tel. 0621-759-2971 Fax. 0621-759-8508

         if addressed to CBMX
         6500 Harbour Heights Parkway
         Mukilteo, Washington 98275
         US

         Tel +425 493 2000
         Fax +425 493 2010
         for the attention of General Counsel

The address and the person to whom notice should be provided may be altered by
notice so given. Such delivery will be deemed to have occurred upon proof of
delivery by mail, telex, telecopy, or courier.

         13.12 SURVIVORSHIP. The Agreement will be binding upon and will inure
to the benefit of the Parties hereto and their respective successors and
permitted assigns.

         13.13 OFFICIAL LANGUAGE. The official language of this Agreement is
English. Documents or notices not originally written in English will have no
effect under this Agreement until they have been translated into English and the
English translation will then be the controlling form of the document or notice

         13.14 INTERPRETATION. When a reference is made in this Agreement to
Articles ors Sections, such reference will be to an Article or Section of this
Agreement unless otherwise indicated. The headings contained in this Agreement
are for reference purposes only and will not affect in any way the meaning or
interpretation of this Agreement. Whenever the words "include", "includes" or
"including" are used in this Agreement they will be deemed to be followed by the
words "without limitation." The phrases "the date of this Agreement," "the date
hereof" and terms of similar import, unless the context otherwise requires, will
be deemed to refer to the date appearing in the introductory paragraph of this
Agreement.

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                  CONFIDENTIAL

                                      -24-

         13.15 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, all of which taken together will be considered one and the same
agreement and will become effective when two or more counterparts have been
signed by each of the Parties and delivered to the other Parties, it being
understood that all Parties need not sign the same counterpart.

         13.16 FORCE MAJEURE. If the performance of any obligation under this
Agreement (except payment of monies due) by either Party is prevented,
restricted or interfered with by reason of casualty, accident, fire, strikes or
labor disputes, inability to procure materials or components, power or supplies,
war or other violence, any law, order, proclamation, regulation, ordinance,
demand or requirement of any government agency or intergovernmental body, or any
other act, circumstance or condition whatsoever beyond the reasonable control of
such Party, the Party so affected, upon giving notice to the other Party, shall
be excused from such performance to the extent of such prevention, restriction
or interference.

         13.17 LIMITATION OF LIABILITY. Notwithstanding anything to the contrary
in this Agreement, in no event will either Party be liable for any indirect,
punitive, special, incidental or consequential damage in connection with or
related to this agreement (including loss of profits, use, data, or other
economic advantage), howsoever arising, either out of breach of this agreement,
including breach of warranty, or in tort, even if the other Party has been
previously advised of the possibility of such damage.

IN WITNESS WHEREOF the Parties hereto have signed this Agreement on this 25th
day of September 2002.

Mannheim, Germany                               Mukilteo, Washington

ROCHE DIAGNOSTICS GMBH                          COMBIMATRIX CORPORATION

By: /S/ DR. RAEHS                               By: /S/ AMIT KUMAR PH.D
    ------------------------                        ------------------------
    Dr. Raehs                                       Amit Kumar Ph.D.

i.V.

By: /S/ S. WILLEMSEN                            By: /S/ EDWARD EADEH
    ------------------------                        ------------------------
    S. Willemsen                                    Edward Eadeh

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                                     CONFIDENTIAL

                                                         -25-

                                                        ANNEX I
                                                   LICENSED PATENTS

<TABLE>
-------------------- ------------------------------ -------------- ---------------------------------------------------
                        SERIAL NUMBER OR
    DOCKET NUMBER        PATENT NUMBER              COUNTRY        TITLE
-------------------- ------------------------------ -------------- ---------------------------------------------------
<S>                  <C>                            <C>            <C>
    0101             *                              US             Electrochemical Solid Phase Synthesis of Polymers
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0101WO             PCT/US97/11463                 PCT            Electrochemical Solid Phase Synthesis of Polymers
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0101AU             35884/97                       AU             Electrochemical Solid Phase Synthesis of Polymers
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0101BE             0910467                        BE             Electrochemical Solid Phase Synthesis of Polymers
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0101CH             0910467                        CH             Electrochemical Solid Phase Synthesis of Polymers
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0101DK             0910467                        DK             Electrochemical Solid Phase Synthesis of Polymers
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0101EP             97 932 422.5                   EP             Electrochemical Solid Phase Synthesis of Polymers
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0101ES             0910467                        ES             Electrochemical Solid Phase Synthesis of Polymers
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0101FR             0910467                        FR             Electrochemical Solid Phase Synthesis of Polymers
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0101GB             0910467                        GB             Electrochemical Solid Phase Synthesis of Polymers
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0101IE             0910467                        IE             Electrochemical Solid Phase Synthesis of Polymers
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0101IT             0910467                        IT             Electrochemical Solid Phase Synthesis of Polymers
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0101JP             PCT/US97/11463                 JP             Electrochemical Solid Phase Synthesis of Polymers
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0101NL             0910467                        NL             Electrochemical Solid Phase Synthesis of Polymers
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0101SE             0910467                        SE             Electrochemical Solid Phase Synthesis of Polymers
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0102               6,093,302                      US             Electrochemical Solid Phase Synthesis
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0102WO             PCT/US99/00599                 PCT            Gettering Device for Ion Capture
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0102A              *                              USO1           Electrochemical Solid Phase Synthesis
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0102B              *                              US02           Electrochemical Solid Phase Synthesis
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0102C              *                              US03           Electrochemical Solid Phase Synthesis
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0102AU             22216/99                       AU             Gettering Device for Ion Capture
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0102CA             2317537                        CA             Gettering Device for Ion Capture
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0102CN             99803184.4                     CN             Gettering Device for Ion Capture
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0102EP             99 902 174.4-1270              EP             Gettering Device for Ion Capture
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0102JP             2000-527976                    JP             Gettering Device for Ion Capture
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0104               *                              US             *
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0201               *                              US             *
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0202               *                              US             *
-------------------- ------------------------------ -------------- ---------------------------------------------------
                                                                   A Method for Selecting Oligonucleotides Having
  0202WO             PCT/US00/02000                 PCT            Low Cross Hybridization
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0203B              *                              US             *
-------------------- ------------------------------ -------------- ---------------------------------------------------

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

<PAGE>

                                                     CONFIDENTIAL

                                                         -26-

-------------------- ------------------------------ -------------- ---------------------------------------------------
                        SERIAL NUMBER OR
    DOCKET NUMBER        PATENT NUMBER              COUNTRY        TITLE
-------------------- ------------------------------ -------------- ---------------------------------------------------
                                                                   Automated System and Process for Custom-Designed
  0203B-WO                                          PCT            Biological Chip Design and Analysis
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0401               *                              US             *
-------------------- ------------------------------ -------------- ---------------------------------------------------
                                                                   Microchips of Peptide Affinity Probes for
                                                                   Analyzing Gene Products and Methods for Analyzing
  0401WO             PCT/US00/06676                 PCT            Gene Products
-------------------- ------------------------------ -------------- ---------------------------------------------------
  0402               *                              US             *
-------------------- ------------------------------ -------------- ---------------------------------------------------

-------------------- ------------------------------ -------------- ---------------------------------------------------
  ??                 *                                             *
-------------------- ------------------------------ -------------- ---------------------------------------------------
</TABLE>

License Agreement Combimatrix                                September 25th 2002

* Confidential materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote commissions.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]