Document:

<PAGE>   1
                                                                   Exhibit 10.18

                         PURCHASE AND LICENSE AGREEMENT

     THIS IS AN AGREEMENT between Argonaut Technologies, Inc., a Delaware
corporation with an office at 887 Industrial Road, Suite G, San Carlos, CA 94070
("Vendor") and Zeneca Inc., a Delaware corporation with an office at 1800
Concord Pike, Wilmington, Delaware 19850-5437 ("Zeneca").

     WHEREAS, Vendor desires to sell Trident Automation Library System products
to Zeneca and license related software to Zeneca, and

     WHEREAS, Zeneca offers to purchase said Trident Automation Library System
products and obtain a license for such related software from Vendor.

     NOW THEREFORE, this 30th day of September 1998, in consideration of the
terms and conditions recited herein, the parties hereby agree as follows.

                                   Article 1

Definitions

1.1   "Acceptance Date" means the date on which Vendor receives written notice
      from Zeneca that the System meets, and has been demonstrated to meet, the
      Specifications and that all Hardware, Software and Documentation have been
      received and are installed and operational. Such notice shall be on the
      form attached hereto as Exhibit A entitled "Notice of Acceptance Date, and
      no other communication of any sort will establish an Acceptance Date
      hereunder.

1.2   "Agreement" means this Agreement including any exhibits and amendments
      attached hereto.

1.3   "Delivery Date" shall mean the date which Vendor delivers the System to
      the Installation Location at Zeneca and all related Hardware, Software and
      Documentation, as described in Exhibit B hereto, have been received by
      Zeneca.

1.4   "Documentation" means the manuals, instructions and other materials,
      including but not limited to those supplied on paper or electric media
      (such as CD-ROM based media), related to the System and provided by Vendor
      to Zeneca hereunder.

1.5   "Effective Date" means the date upon which this Agreement is executed by
      the last party to execute such Agreement.

1.6   "Hardware" means the hardware components of the System listed in Exhibit B
      attached hereto and incorporated herein.

1.7   "Installation Location" means Room CR&DL 258 on the 2nd floor, Fairfax
      Research Center of the Zeneca facility at 1800 Concord Pike, Wilmington,
      Delaware, USA.

1.8   "Specifications" means the Specifications for the System, as set forth in
      Exhibit C.

1.9   "System" means the Trident Automation Library System comprising the
      Hardware, the Software and the Documentation described in Exhibit B
      hereto.

1.10  "Maintenance Agreement" means the maintenance agreement between the
      parties hereto covering the System, including but not limited to the
      Hardware and Software purchased under this

<PAGE>   2

     Agreement. The terms and conditions of said maintenance agreement, if
     Zeneca desires to purchase one, shall be determined at a later date.

1.11 "Purchase Price" constitutes payment for Hardware and Documentation and a
     license fee for related software.

1.12 "Software" means the software components of the System as listed in
     Exhibit B attached hereto and incorporated herein.

1.13 "Zeneca Group" - For purposes of this Agreement, Zeneca Group means Zeneca
     Inc., Zeneca Ltd. and Zeneca Group PLC; their respective direct and
     indirect parent companies, affiliates, and subsidiaries; their respective
     officers, directors, trustees, shareholders, employees and agents; and
     their respective predecessors, successors and assigns, heirs, executors and
     administrators.

                                   Article 2

Purchase and Sale

2.1  Purchase. Zeneca and Vendor hereby agree that, in return for the payment
     by Zeneca to Vendor of the Purchase Price and subject to the terms and
     conditions of this Agreement;

     (a)  Vendor shall sell, deliver and install, and Zeneca shall purchase and
          receive, the Hardware and Documentation; and

     (b)  Vendor hereby grants to Zeneca in conjunction with the sale of the
          Hardware, a perpetual, non-exclusive, paid-up, freely assignable
          license (the "License") to use and have used the Software, revocable
          only upon termination of this Agreement by Vendor or Zeneca. Zeneca
          shall notify Vendor in writing prior to any assignment.

2.2  Purchase Price.

     (a)  Zeneca and Vendor hereby agree that the Purchase Price is reflected
          in Exhibit G; and

     (b)  Vendor will offer Zeneca a discount of [*] if this Agreement is
          executed prior to September 30, 1998.

     (c)  Vendor will offer Zeneca a second discount of [*] if a second Trident
          System is ordered prior to September 30, 1998.

2.3  Payment Schedule. The Purchase Price shall be due and owing to Vendor
     according to the following schedule:

          Delivery Date:   [*] due within fifteen (15) days after delivery of
                           all components of the System.

          Acceptance Date: [*] due within fifteen (15) days after Zeneca's
                           Acceptance of the System. Such acceptance shall not
                           exceed forty-five (45) days after successful
                           completion of installation.

[*] Confidential Treatment Requested

                                       2

<PAGE>   3
                                   ARTICLE 3
                                   ---------

SHIPMENT AND DELIVERY
---------------------

     3.1  Shipment. Shipment of the System to the Installation Location shall be
          at Vendor's expense. Vendor shall be responsible for all cost, risk
          and expense in delivering to and installing the System at the
          Installation Location and any damage or harm to the System incurred as
          a result of shipment, delivery or installation shall be the
          responsibility of Vendor (FOB Destination). Notwithstanding the
          foregoing, Vendor shall not be liable for damage or harm to the System
          incurred as a result of improper preparation or functioning of the
          Installation Location or negligence or misconduct of Zeneca or its
          agents, employees.

     3.2  Delivery. Delivery shall be completed on the following schedule:

          (a)  The System shall be delivered to Zeneca no later than [12] weeks
               from the effective Date.

          (b)  Installation shall be started at the Installation Location no
               later than [2] week(s) after delivery of the System to Zeneca.

                                   ARTICLE 4
                                   ---------

INSTALLATION AND ACCEPTANCE
---------------------------

     4.1  Installation. Zeneca shall prepare the Installation Location in
          accordance with the specifications set forth in Exhibit D.
          Modifications to the Zeneca facility to accommodate the delivery,
          installation and acceptance of the System shall be the responsibility
          of Zeneca. Such preparation shall be completed prior to delivery of
          the System. Vendor shall, at its own expense, install and take all
          action necessary to ensure the acceptance of the System at the
          Installation Location. Such installation and testing shall conform to
          the delivery schedule and acceptance procedures set forth herein.
          Zeneca shall reasonably cooperate with Vendor to provide access to
          facilities and personnel to ensure a timely installation and
          acceptance of the System.

          The System shall be installed by a qualified System Engineer to be
          selected by Vendor. As used herein, the term "System Engineer" shall
          mean an engineer qualified to test and install the System. To be
          eligible for Zeneca's installation, the System Engineer must have
          previous successful experience in field installations of Vendor's
          equipment.

          All services hereunder shall be performed during Zeneca's normal
          working hours between 8:15 am and 4:50 pm, Wilmington, Delaware local
          time, Monday through Friday, excluding Zeneca holidays unless
          otherwise agreed in writing by the parties. When installation of the
          System has been started by Vendor, installation shall proceed
          continuously during Zeneca's normal working hours until such
          installation is completed.

     4.2  Delays. Time is of the essence in the Agreement.

                                   Article 5
                                   ---------

WARRANTY
--------

     5.1  General. Vendor warrants that the System will conform to the
          Specifications set forth in Exhibit C upon the Acceptance Date and for
          the later of either twelve (12) months thereafter or December 31, 1999
          ("the Initial Warranty Period").

                                       3

<PAGE>   4
5.2 HARDWARE WARRANTY.

     (a)  Vendor represents and warrants the Hardware against defects in
          material and workmanship for the Initial Warranty Period under normal
          use and service.

     (b)  Vendor will make the benefits of any other warranty covering the
          Hardware available to Zeneca.

     (c)  In the event that the Hardware displays or develops defects in
          material or workmanship during the Initial Warranty Period:

          (i)    Vendor shall attempt to remedy such defect by telephone. If
                 Vendor is unable to so remedy such defect within forty-eight
                 (48) hours of notice to Vendor by Zeneca of such defect, then
                 Vendor shall ensure that a qualified service engineer shall
                 arrive at the Installation Location within seventy-two (72)
                 hours of the end of such forty-eight (48) hour period.

          (ii)   Vendor shall provide repair or replacement of any defective
                 parts free of charge.

          (iii)  Vendor shall provide any necessary engineering services
                 required in connection with the repair or replacement of any
                 defective parts free of charge.

          (iv)   All other applicable rights and remedies shall be available to
                 Zeneca.

          (v)    After the Initial Warranty Period. Vendor shall maintain the
                 System as required by Zeneca through telephone support at no
                 charge or by on-site repair at Installation Location under the
                 terms of a Maintenance Agreement.

     (d)  Vendor further agrees that one preventive maintenance visit for the
          System shall be scheduled at a time agreed by Zeneca during the
          Warranty Period.

     (e)  Vendor shall not be responsible under this warranty to the extent that
          defects with the Hardware are caused by misuse, abuse, or other fault
          attributable to Zeneca or its contractors.

5.3  Software Warranty.

     (a)  Vendor warrants that the Software as originally delivered and
          unaltered will, in conjunction with all other components of the
          System, materially perform the functions described in and operate in
          accordance with the Specifications and Documentation and contain no
          viruses or software locks. Vendor further warrants that the Software
          shall continue to meet all acceptance tests throughout the term of
          this Agreement.

     (b)  Vendor hereby represents and warrants to Zeneca that the Software
          licensed to Zeneca hereunder includes Software designed to insure year
          2000 compatibility, which shall specifically include the ability to
          correctly recognize, process, manage, manipulate and store millennial
          dates without affecting the integrity of data, output (including
          reports, screen contents, etc.) or interpretation, without
          interruption, and includes calculations that accommodate same century
          and multi-century formulas and date values, and date data interface
          values that reflect the century, without any errors relating to date,
          and that the Software will continue to be year 2000 compatible.

                                       4
<PAGE>   5
(c)   Vendor further represents and warrants that any modifications made by
      Vendor to the Software or services performed by Vendor in order to bring
      the Software into compliance with these representations and warranties
      does not and will not corrupt any data included in Zeneca's computer
      network and does not or will not contain any computer viruses or introduce
      a computer virus into Zeneca's computer network.

(d)   In the event the Software does not meet any of the above representations
      and warranties, Vendor shall repair or replace such Software.

(e)   Source Code and Source Code Materials. Vendor hereby grants to Zeneca and
      the Zeneca Group a fully-paid perpetual, non-exclusive, worldwide, limited
      license to use, modify, enhance and upgrade the Source Code and the Source
      Code Materials provided, however, that such license shall be exercisable
      solely in the event

      (i)  Vendor is unable, at any time during the Initial Warranty Period
           specified in the Purchase and License Agreement, to correct any
           malfunction, defect or nonconformity in the Software which prevents
           the Software from functioning in accordance with the applicable
           Specifications. Documentation, performance criteria and other
           warranties and descriptions provided in this Agreement, within seven
           (7) business days after Zeneca's notification to Vendor specifying in
           reasonable detail in what aspects the Software fails to conform; or

     (ii)  that the Vendor becomes insolvent, makes a general assignment for
           the benefit of creditors, files a voluntary petition of bankruptcy,
           suffers or permits the appointment of a receiver for its business or
           assets, becomes subject to any proceeding under any bankruptcy or
           insolvency law, whether domestic or foreign, or has wound up or
           liquidated its business voluntarily or otherwise and Zeneca has
           compelling reasons to believe that such event(s) will cause Vendor to
           fail to meet its warranty and maintenance obligations in the
           foreseeable future. If such event should occur, the source code will
           be delivered by the Vendor within fifteen days of written request by
           Zeneca.

5.3   Third Party Rights.  Vendor warrants that the System to (including
      Hardware, Software and Documentation), and use thereof by Zeneca, does not
      violate any rights of any third party, including without limitation any
      patent, trademark, copyright, or service mark or constitute theft or
      misuse of a trade secret owned or controlled by a third party. Vendor
      warrants that for the Software it has ownership of or the right to
      distribute and license such Software. If claim is made with regard to
      Zeneca's use of the System, Vendor shall get permission for Zeneca to use
      such System.

5.4   Disclaimer.  EXCEPT AS SET FORTH IN THIS AGREEMENT, VENDOR MAKES NO
      WARRANTIES, WHETHER EXPRESS OR IMPLIED, OR STATUTORY REGARDING TO RELATING
      TO THE SYSTEM, HARDWARE, SOFTWARE, OR DOCUMENTATION, OR ANY MATERIALS OR
      SERVICES PROVIDED TO ZENECA UNDER THIS AGREEMENT. VENDOR SPECIFICALLY
      DISCLAIMS ALL IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE.

                                   Article 6

Indemnification.

6.1   Third Party Infringement.  If notified promptly in writing of any action
      brought against Zeneca or the Zeneca Group alleging that Zeneca's sale,
      use or other disposition of the System (including

                                       5

<PAGE>   6
     Hardware and Software components and Documentation) infringes a patent,
     trademark, copyright or service mark or constitutes theft or misuse of a
     trade secret owned or controlled by a third party. Vendor shall defend that
     action at its expense and shall pay any costs and damages awarded against
     Zeneca in the action, including external attorney's fees and internal
     counsel expenses, provided that Vendor shall have control of the defense of
     any such action and all negotiations for its supplement or compromise, and
     provided further that no settlement will be made that is contrary to the
     best interests of Zeneca, as may reasonably be determined by Zeneca. If a
     final injunction is obtained in such action against Zeneca's use of the
     System, or any component thereof, or if in Vendor's opinion the System is
     likely to become the subject of a claim of infringement, Vendor shall, at
     its option and expense, either  procure for Zeneca the right to continue
     using the System or any component thereof consistent with the purchase and
     licensing right accorded Zeneca herein, or replace or modify the System or
     any component thereof so that it becomes non-infringing (but is otherwise
     substantially identical to the originally provided System and is also
     suitable for Zeneca's intended uses), or grant Zeneca a credit for the
     infringing System or component thereof. Vendor shall not have any liability
     to Zeneca if the alleged infringement is caused by use or sale of the item
     in combination with other products or devices which are not furnished by
     Vendor.

6.2  Each party agrees to indemnify, defend and hold the other party harmless
     from and against any claim, demand, action, penalty, suit or liability
     (including the cost of defense, settlement, and external attorney's fees
     and internal counsel expenses), which the other party may hereafter incur,
     become responsible for, or pay out as a result of death or bodily injuries
     to any person, destruction or damage to any property caused by

     (a)  the breach of any term, warranty, representation or provision of this
          Agreement, or

     (b)  in the case of Vendor, any failure to warn of damages or defects in
          the System or any component thereof.

     Notwithstanding the foregoing, either party shall not be obligated to
     indemnify or hold harmless the other party against any losses, claims or
     suits caused solely by the willful misconduct or negligence of the other
     party.

                                   ARTICLE 7

INSURANCE.  Vendor shall at its own expense secure and maintain in full force
and effect throughout the term of the Agreement insurance coverage for (a)
Workmen's Compensation, (b) General Liability, and (c) Automobile Liability in
amounts listed on Exhibit E. Certificates evidencing such insurance shall be
provided to Zeneca's Insurance Department.

                                   ARTICLE 8

ANCILLARY OBLIGATIONS

8.1  SYSTEM CHANGES. Zeneca is entitled to receive the most current and complete
     commercially released version of the System (including Hardware, Software
     and Documentation) available at the time of the Acceptance Date.

     Vendor shall promptly furnish to Zeneca any "bug" fixes (a "bug" is defined
     as something that prevents the Software from performing or meeting the
     Specifications) during the term of the license at no charge.

                                       6
<PAGE>   7
8.2  SOFTWARE UPGRADES/UPDATES.  Commercially released updates to all Zeneca
     licensed Software modules shall be provided at no charge without limitation
     during the Initial Warranty Period. Vendor shall provide free support
     during the Initial Warranty Period. Future updates after the Initial
     Warranty Period may be purchased at Vendor's then listed price.

8.3  COMPUTER UPGRADES.  Hardware required for enhanced performance may be
     purchased from Vendor at the time of purchase. Zeneca may choose to upgrade
     the original computer hardware equipment after the initial installation:
     costs and labor for upgraded equipment and connectivity to the system will
     be Zeneca's responsibility.

8.4  SITE INSPECTION.  Upon execution of this Agreement, Vendor shall make
     available a qualified engineer (at no additional charge) for the purpose of
     inspecting the Installation Location. The engineer shall conduct a series
     of standard measurements where required. If these measurements and the site
     facilities meet Vendor's site requirements, the engineer shall certify in
     writing on the form attached hereto as Exhibit F that the Installation
     Location is properly designed and equipped, and that the System will
     perform according to the Specifications (attached hereto as Exhibit C) and
     the Documentation in the environment. If the Installation Location does not
     meet Vendor's site requirements, the engineer shall make  specific written
     recommendations to Zeneca's engineering and building operations staff as to
     how the Installation Location can be made to meet Vendor's site
     requirements and Zeneca shall promptly implement such recommendations. If
     multiple site inspection visits are necessary in order for the Installation
     Location to be certified, Vendor shall provide an engineer for such visits
     at Zeneca's expense. Installation cannot be started until a completed site
     acceptance form (Exhibit F) has been received by Zeneca. Commitment dates
     will be adjusted to allow for days lost due to site facilities being
     unavailable.

                                   ARTICLE 9

DOCUMENTATION.  Vendor shall supply one (1) printed copy and one (1) electronic
media copy of all Documentation for each component of the System as defined
herein.

                                   ARTICLE 10

MISCELLANEOUS

10.1 TAXES. The Purchase Price  does not include any import duties.

10.2 TERMINATION. Termination of this Agreement shall occur in one of the
following manners:

     a.   Termination by mutual agreement of the parties.

     (b)  Zeneca shall have the right to immediately terminate this Agreement
          based upon Vendor's willful misconduct in connection with services
          performed under this Agreement. Willful misconduct shall include, but
          not be limited to, disparagement of Zeneca or the Zeneca Group, as
          defined in Paragraph 10.12 hereof, or their respective products,
          services or management; unethical business conduct; unlawful
          activities; failure to adhere to security, safety, health and
          environmental laws and regulations while on Zeneca's premises; or
          breach of Vendor's obligations under Paragraph 5.1 and 5.2 herein and
          the Confidentiality Agreement signed by Zeneca and Vendor dated
          herein. Such termination shall be effective upon delivery of written
          notice to Vendor.

     (c)  Except as otherwise provided in paragraph 10.2(b), a party shall have
          the right to terminate this Agreement based upon the other party's
          non-performance or breach of any provision of this Agreement. In such
          event, the non-breaching party shall provide the

                                       7

<PAGE>   8
          breaching party with written notice of the reason for the
          non-breaching party's intention to terminate this Agreement and shall
          provide the breaching party within thirty (30) days to correct any
          non-performance or breach to the satisfaction of the non-breaching
          party.

          Except as otherwise provided herein, it is agreed and understood that
          termination of this Agreement for any reason whatsoever will result in
          a termination of Vendor's obligation to provide services to Zeneca
          pursuant to this Agreement and a termination of Zeneca's obligations
          to compensate Vendor pursuant to paragraph 2.2 as of the effective
          date of termination. The other terms of this Agreement shall survive
          the termination of the Agreement.

10.3  EXERCISE OF RIGHTS. Each party's termination of this Agreement pursuant to
      any of the foregoing provisions or exercise of its right to relief as
      otherwise as set forth in this Agreement shall not be construed to limit
      such party's ability to pursue any other legal rights or claims it may
      have.

10.4  ENTIRE AGREEMENT. This Agreement, including any Exhibits thereto,
      constitutes the entire agreement among the parties and supersedes all
      understandings whether written or oral. The text of this Agreement shall
      control in case of any conflict with an Exhibit. Further modifications may
      be made if in writing and signed by all parties.

10.5  CONTROLLING LAW. The laws of the United States shall control and in
      particular, the internal laws of the State of Delaware without regard to
      its conflicts of law provisions.

10.6  CONFIDENTIALITY.

      (a) Each party acknowledges that it may have access to and obtain
          knowledge of certain proprietary and confidential information
          ("Confidential Information") of the other party disclosing such
          information (the "Discloser") in the course of its performance under
          this Agreement, Confidential Information shall not include information
          that: (i) was already in the possession of the party receiving
          Confidential Information ("Recipient") before disclosure thereof by
          Discloser to Recipient as evidenced by Recipient's written records,
          (ii) is independently developed by Recipient as evidenced by
          Recipient's written records, (iii) is or becomes publicly available
          through no fault of Recipient, or (iv) is obtained by Recipient from a
          third party under no obligation to disclose same.

      (b) Recipient agrees to maintain in strictest confidence and to take all
          reasonable steps to maintain the confidentiality of the Confidential
          Information. Recipient also agrees not to disclose Confidential
          Information to any third party, and to use Confidential Information
          only to the extent needed to perform under this Agreement. Recipient
          recognizes that all documents and records received by Recipient from
          Discloser and all copies of such records and documents shall be
          Discloser's property exclusively. Recipient shall at all times keep
          all such documents, records and copies of documents and records in the
          Recipient's custody and subject to the Recipient's control and shall
          surrender the same upon request by Discloser.

10.7 PUBLICATIONS.  Vendor agrees that it will not use the name of Zeneca or
     the names of any of its personnel for promotional literature, advertising,
     or any other reason without the prior written approval of Zeneca, provided
     that Vendor shall have the right to use the name of Zeneca in its customer
     list for the System and to distribute such list to third parties.

10.8 OTHER.

                                       8

<PAGE>   9
       (a)  Vendor shall supply a written list of factory and U.S. headquarters
            contact persons, phone numbers, Internet E-Mail addresses, and
            specialties for the Hardware and the Software at the time of
            delivery of the System.

       (b)  Vendor shall make available to Zeneca a twelve (12) month
            maintenance contract. Zeneca shall have the option to purchase this
            maintenance agreement at any time during the initial warranty
            period. See comments at Section 3.1(3)(e).

       (c)  Vendor shall provide five (5) consecutive days of training on the
            System on-site at Zeneca at the time of installation for up to
            three (3) people at no cost to Zeneca.

10.9   Counterparts. This Agreement may be signed in any number of counterparts,
       each of which shall be an original, with the same effects as if the
       signatures thereto were upon the same instrument.

10.10  Notices. All notices given under this Agreement shall be in writing and
       shall be delivered personally, sent by telegram or facsimile with return
       confirmation, or by first class United States mail, postage pre-paid to
       the parties at the following addresses:

          If to Zeneca:       Zeneca Inc.
                              1800 Concord Pike
                              Wilmington, DE 19850
                              Attn: Jim Campbell
                              Telephone: (302) 886-2673
                              Fax: (302) 886-7409

          If to Vendor:       Argonaut Technologies, Inc.
                              887 Industrial Road, Suite G
                              San Carlos, CA 94070
                              Attn: Vice President of Sales & Services
                              Telephone: 650/598-1350
                              Fax: 650/598-1359

       Notices shall be effective when received.

10.11  Assignment. Neither party may assign or in any way make over any of its
       rights or duties under this Agreement without the prior written consent
       of the other party, except in the event of a sale of company equity or
       assets. Zeneca may assign any of its rights to any duties under this
       Agreement to any company controlled, controlling or under common control
       of Zeneca, in which event this Agreement shall be binding on and inure to
       the benefit of any successor or assignee of Zeneca. In the event of
       assignment, the assignor shall continue to be fully liable for any
       obligations under this Agreement.

10.12  Force Majeure. A party shall be excused from performing its obligations
       under this Agreement if its performance is delayed or prevented by any
       cause beyond such party's control and is without its fault or negligence,
       including but not limited to, acts to God, fire, explosion, weather,
       disease, war, insurrection, civil strife, riots, labor disputes,
       government action, including change in relevant government laws or
       regulations, or power failure. Performance shall be excused only to the
       extent of and during the reasonable continuance of such disability. Any
       deadline or time for performance specified that falls due during or
       subsequent to the occurrence of any of the disabilities referred to
       herein shall be automatically extended for a period of time equal to the
       period of such disability. Vendor shall immediately notify Zeneca if, by
       reason of any of the disabilities referred to herein, Vendor is unable to
       meet any deadline or time for performance.

                                       9

<PAGE>   10
IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL
OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOSS OF PROFITS, REVENUE, DATA OR USE,
INCURRED BY EITHER PARTY OR ANY THIRD PARTY, WHETHER IN AN ACTION IN CONTRACT
OR TORT, EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. VENDOR'S LIABILITY FOR DAMAGES HEREUNDER SHALL IN NO EVENT EXCEED THE
AMOUNT OF PAYMENTS PAID BY ZENECA UNDER THIS AGREEMENT EXCLUDING VENDOR'S
OBLIGATIONS UNDER SECTION 10.6. DAMAGES RELATING TO EITHER PARTY'S OBLIGATIONS
UNDER ALL OTHER SECTIONS, INCLUDING 6.1 AND 6.2 SHALL NOT EXCEED THE LIMITS OF
THEIR INSURANCE.

IN WITNESS WHEREOF the parties hereto have executed this Agreement on the day
and year last written below.

ZENECA, INC.                            ARGONAUT TECHNOLOGIES

By: /s/ Andrew Shaw                     By: /s/ Lissa A. Goldenstein
    -------------------                     ------------------------

Name: A. Shaw                           Name: Lissa A. Goldenstein
      -----------------                       --------------------
          (Print)

Title: VP, LDD                          Title: VP, Sales & Service
       ----------------                        -------------------

Date: 11/2/98                           Date: 10/30/98
      -----------------                       --------------------

<PAGE>   11
                                   EXHIBIT A

                           NOTICE OF ACCEPTANCE DATE

Date: ___________________

Argonaut Technologies, Inc.
887 Industrial Road, Suite G
San Carlos, CA 94070
Attn: VP, Sales & Service

Dear __________:

Zeneca Inc. hereby notifies Argonaut Technologies that it has accepted the
System, as that term is defined in the Purchase and License Agreement between
Zeneca Inc. and Argonaut Technologies, Inc. dated __________, pursuant to the
terms thereof.

Zeneca, Inc.

By: ____________________

Title: _________________

Date: __________________

<PAGE>   12
                                   EXHIBIT B

               DESCRIPTION OF HARDWARE, SOFTWARE & DOCUMENTATION

1)  900132 Trident Automated Library Production Synthesizer

      consisting of: Trident main synthesizer system with two precision metered
      syringe systems, fluid delivery interface, reagent, solvent, waste
      connections, four (4) integrated agitation-thermal units, cabling.

2)  Trident Ship Kit consisting of four (4) Trident Reaction Cassettes, 192
    Trident Reaction Vessel Assemblies, nine (9) 250 mL Reagent bottles, four
    (4) 4 L Solvent carriers, two (2) 15 L HDPE waste reservoir, and spare
    parts.

3)  900136 Gilson 215 Autosampler/Sample Collector Upgrade

4)  900135 Trident Voltage Kit (USA)

5)  Trident Laptop Computer System (Gateway Solo 2500)

      Consisting of: Pentium 233 MHz processor, 64 Mbytes RAM, 4 Gbyte hard
      disk, 20x CDROM, Windows NT.

6)  Trident Control Software provides software routines to define
    solvents/reagents and diversity reagents to be used in synthesis, definition
    of synthesis program based on fluid movements, program control, reaction
    times, and instrument control functions, solvent usage calculations,
    autosampler and sample collector control functions, and system monitors of
    programming, plumbing, and mechanical status. Provided on CD ROM.

<PAGE>   13
                                   EXHIBIT C

                                 SPECIFICATIONS

                     TRIDENT AUTOMATED LIBRARY SYNTHESIZER

                            INSTALLATION VALIDATION

The following document describes validation parameters for installation of the
Trident Automated Library Synthesizer. An instrument which demonstrates
adherence to these parameters is considered by Argonaut Technologies to be a
successfully installed, fully operational instrument capable of meeting all
published specifications, and one which demonstrates no damage in shipment.

SITE REQUIREMENTS

<TABLE>
<CAPTION>

Operational Requirement                    Specification                                   Actual (Result)
-----------------------                    -------------                                   ---------------
<S>                                       <C>                                                 <C>

Lab temp                                   18(degree)C to 25(degree)C

Lab humidity                               (less than or equal to) 70% RH

Recommended ventilation flow               Approx. 40 cfm
(with all doors closed)

Regulated N(2) pressure                    35 to 50 psi

Regulated He pressure                      15 psi

Regulated Compressed dry air pressure      50 psi
(or use N(2) gas)                          Dryness (greater than or equal to) 0.01% H(2)O

Line voltage/current capacity              Dedicated circuit 200 to 240
                                           VAC @ 30 Amps
</TABLE>

ELECTRONIC INTEGRITY

SPECIFICATION:

All circuits working as designed. No connectors loose.

VALIDATION PROCEDURE:

Run pre-programmed automated procedure to exercise all valves and heaters.
Check runfile for valve or heater errors. Attach a copy of the runfile to
installation validation documentation.

RESULT:

(Argonaut Installation Engineer to enter result here and attach supporting
documentation)

PLUMBING INTEGRITY

SPECIFICATION:

All pneumatic and liquid plumbing connects as per plumbing schematics. No loose
or leaking pneumaric fittings.

<PAGE>   14
VALIDATION PROCEDURE:

Check all fittings for tightness. Reconnect and/or tighten as necessary.

RESULT:

(Argonaut Installation Engineer to enter result here and attach supporting
documentation)

INTERNAL LEAK/OBSTRUCTION CHECK

SPECIFICATION:

1.   No leaks or obstructions on pressure supply side (low, high and very low
     inputs).
2.   No leaks or obstructions in delivery/valving/RV side.
3.   RVs hold pressure in cassette when sealed.

VALIDATION PROCEDURE:

1 a) Supply side: Perform a supply side pressure test to validate integrity of
     the gas input pneumatics. Verify no appreciable leaks.

1 b) Bottle leak test: Perform a bottle pressure test to validate integrity of
     bottle sealing and pressure system. Verify no appreciable leaks.

2)   Perform a system leak test, checking for leaks or obstructions in all
     delivery pathways. Verify no obstructions or appreciable leaks.

3)   Perform a leak test on all 192 vessels of 4 cassettes. Verify no
     appreciable leaks.

RESULT:

(Argonaut Installation Engineer to enter result here and attach supporting
documentation)

                                       14

<PAGE>   15
AS CALIBRATION

SPECIFICATION:
AutoSampler performs accurate and precise septa puncture and movement to the
needle wash ports.

VALIDATION PROCEDURE:
Perform an AutoSampler calibration verification procedure, utilizing a visual
verification of XYZ alignment with all vial positions and needle wash/waste
positions.

RESULT:
(Argonaut Installation Engineer to enter result here and attach supporting
documentation)

HEATING

SPECIFICATION:
Rate: Ambient -10(degree)C to 90(degree)C in 30 minutes
Rate: Ambient -10(degree)C to 150(degree)C in 45 minutes
Accuracy: +/-5(degree)C or 5% of setpoint, whichever is greater

VALIDATION PROCEDURE:
Run the preprogrammed "Heating and Cooling Test". Check Runfile for time and
temperature readings in the heating ranges. Verify specifications are met.
Attach runfile to installation validation documentation.

RESULT:
(Argonaut Installation Engineer to enter result here and attach supporting
documentation)

                                       15
<PAGE>   16
COOLING

SPECIFICATION:

Rate: Ambient -40(degrees)C in 30 minutes
Rate: 150(degrees)C to -40(degrees)C in 30 minutes
Accuracy: + or (-) 5(degrees)C or 5% of setpoint, whichever is greater

VALIDATION PROCEDURE:

Make sure a LN cryo tank, with sufficient capacity has been connected before
you run the above "Heating and Cooling test". After the run, check the runfile
for time and temperature readings in the cooling ranges. Verify specifications
are met. Attach runfile to installation validation documentation.

RESULT:

DIVERSITY REAGENT DELIVERY ACCURACY/PRECISION (AUTOSAMPLER)

SPECIFICATION:

Range: minimum 50 (nanoliters) to 3 ml in 5 (nanoliter) increments
Accuracy: + or (-) 15 (nanoliters) (<200(nanoliters)): + or (-) 5%
(>200 (nanoliters))

VALIDATION PROCEDURE:

Run the preprogrammed "Solvent/Reagent Delivery Test" utilizing water or DMF
in the AutoSampler. Reagent and Solvent locations, and a cassette with 48 fully
prepared vials. Measure the volume in the collection vials which correspond to
AutoSampler deliveries using gravemetric determination, or transfer to a
graduated cylinder. All deliveries tested should be within the accuracy range.

RESULT:

(Argonaut Installation Engineer to enter result here and attach supporting
documentation)

                                       16

<PAGE>   17
REAGENT DELIVERY ACCURACY/PRECISION (SMALL AND LARGE SYRINGE)

SPECIFICATION:

Range: minimum 50 (nanoliter) to 3 ml in 10 (nanoliter) increments
Accuracy: + or (-) 5%

VALIDATION PROCEDURE:

As above, run the preprogrammed "Solvent/Reagent Delivery Test" utilizing water
or DMF in the AutoSampler, Reagent and Solvent locations, and a cassette with
48 fully prepared vials. Measure the volume in the collection vials which
correspond to syringe deliveries using gravemetric determination, or transfer
to a graduated cylinder. All deliveries tested should be within the accuracy
range.

RESULT:

(Argonaut Installation Engineer to enter result here and attach supporting
documentation)

AGITATION RATE VALIDATION
SPECIFICATION:
Rate: 0 to 400 strokes per minute
Accuracy: + or (-) 10%

Validation Procedures:
Using a tachometer, check the actual frequency of each agitator against the
programmed frequency at max speed (400 strokes per minute). Result should be
within the accuracy range for each agitator tested.

Result:
(Argonaut Installation Engineer to enter result here and attach supporting
documentation)

SYSTEM INTEGRATION CHECK

SPECIFICATION:

All relevant modules perform as required in a pre-programmed system wide test
utilizing a typical solvent.

VALIDATION PROCEDURE:

Utilize results of "Solvent/Reagent Delivery Test" to validate system
integration check. Analyze runfile for errors. Attach a copy of the runfile to
the installation validation documentation.

RESULT:

(Argonaut Installation Engineer to enter result here and attach supporting
documentation)

                                       17
<PAGE>   18
                                   EXHIBIT D

                            SITE/SPACE REQUIREMENTS

INSTRUMENT COMPONENT DIMENSIONS

The following dimensions represent actual component dimensions. This
information will be useful for instrument clearances and weight support
during transit.

<TABLE>
<CAPTION>
   Component             Height         Width          Length         Weight
--------------------------------------------------------------------------------
<C>                      <C>            <C>            <C>            <C>
Main Module (free        57"            30.25"         63"            800 lbs
standing on wheels)      144.8 cm       76.85 cm       160 cm
--------------------------------------------------------------------------------
AutoSampler (215)
--------------------------------------------------------------------------------
AutoSampler (223)
--------------------------------------------------------------------------------
Syringe Module
--------------------------------------------------------------------------------
</TABLE>

SYSTEM SPACE REQUIREMENTS

The following dimensions represent the requirements for placement of a
Trident(TM) and components in a laboratory, and take into account all
clearances needed for the entire Trident(TM) system.

HEIGHT

With model 215 AutoSampler and Syringe Module on top: 86" - 218.5 cm
With model 223 AutoSampler and Syringe Module on top:

WIDTH

With required rear clearance: 36" - 91.44 cm
With required rear clearance, solvent doors open in front: 55.5" - 141 cm

LENGTH

With side panel access on right side: 80.5" - 204.5 cm
With PC desk on right:
Length, with PC on right, 230L dewar on left.
Length, with PC on right, 230L dewar and 50L solvent kegs(4) on right.

SPECIAL SPACE CONSIDERATIONS

EXTERNAL SOLVENT KEGS - External solvent kegs (up to 4) will need to be located
within several feet of the main module on the left side.

CRYO DEWAR - External cryo dewar used for chilling reactions will need to be
located within 4 feet of the main module to the left side.

PC CONTROLLER - The PC controller can be located to the right or left side of
the Trident(TM) main module within several feet, and on a (user supplied) bench
or table. For ease of operation, it is recommended to locate the PC to the
right of the instrument.

<PAGE>   19
                                   EXHIBIT E

                                   INSURANCE

Evidence of Insurance is attached and marked as Exhibit E.
<PAGE>   20
<TABLE>
<S>  <C>                                 <C>              <C>              <C>                 <C>
                                                                                                                   -----------------
                                                                                                                   DATE (MM/DD/YY)
ACORD(TM) CERTIFICATE OF LIABILITY INSURANCE                                                                             09/22/98
------------------------------------------------------------------------------------------------------------------------------------
PRODUCER                                                     THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS
ABD Technology                                               NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND,
ALBURGER BASSO de GROSZ INS.                                 EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
301 Island Parkway, Suite 100                                -----------------------------------------------------------------------
Belmont, CA 94002                                                                       INSURERS AFFORDING COVERAGE
------------------------------------------------------------------------------------------------------------------------------------
INSURED                                                      INSURER A: St. Paul Fire & Marine
Argonaut Technologies                                        -----------------------------------------------------------------------
887 Industrial Road, Ste G                                   INSURER B: Fireman's Fund Insurance
San Carlos, CA 94070                                         -----------------------------------------------------------------------
                                                             INSURER C:
                                                             -----------------------------------------------------------------------
                                                             INSURER D:
                                                             -----------------------------------------------------------------------
                                                             INSURER E:
------------------------------------------------------------------------------------------------------------------------------------

COVERAGES
------------------------------------------------------------------------------------------------------------------------------------
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY
PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
------------------------------------------------------------------------------------------------------------------------------------
INSR                                                     POLICY EFFECTIVE  POLICY EXPIRATION
LTR  TYPE OF INSURANCE                   POLICY NUMBER    DATE (MM/DD/YY)   DATE (MM/DD/YY)                 LIMITS
------------------------------------------------------------------------------------------------------------------------------------
A    GENERAL LIABILITY                    TE01600570         01/01/98          01/01/99       EACH OCCURRENCE            $1,000,000
     [X] COMMERCIAL GENERAL LIABILITY                                                         --------------------------------------
     [ ] [ ] CLAIMS MADE   [X] OCCUR                                                          FIRE DAMAGE (Any one fire) $1,000,000
     [X] Emp. Benefits                                                                        --------------------------------------
     [ ] 1,000,000 Limit                                                                      MED EXP (Any one person)   $10,000
     GENL AGGREGATE LIMIT APPLIES PER:                                                        --------------------------------------
     [ ] POLICY  [ ] PROJECT  [ ] LOC                                                         PERSONAL & ADV INJURY      $1,000,000
                                                                                              --------------------------------------
                                                                                              GENERAL AGGREGATE          $2,000,000
                                                                                              --------------------------------------
                                                                                              PRODUCTS - COMPROP AGG:    $2,000,000
------------------------------------------------------------------------------------------------------------------------------------
A    AUTOMOBILE LIABILITY                 TE01600570         01/01/98          01/01/99       COMBINED SINGLE LIMIT      $1,000,000
     [ ] ANY AUTO                                                                             (Ea accident)
     [ ] ALL OWNED AUTOS                                                                      --------------------------------------
     [ ] SCHEDULED AUTOS                  Hired Car Phy                                       BODILY INJURY              $
     [X] HIRED AUTOS                      Damage                                              (Per person)
     [X] NON-OWNED AUTOS                  Limit: ACV                                          --------------------------------------
     [X] Comprehensive                    $1,000 Ded.                                         BODILY INJURY              $
     [X] collision                        $1,000 Ded.                                         (Per accident)
                                                                                              --------------------------------------
                                                                                              PROPERTY DAMAGE            $
                                                                                              (Per accident)
------------------------------------------------------------------------------------------------------------------------------------
     GARAGE LIABILITY                                                                         AUTO ONLY - EA ACCIDENT    $
     [ ] ANY AUTO                                                                             --------------------------------------
                                                                                                                 EA ACC  $
                                                                                              OTHER THAN         ------------------
                                                                                              AUTO ONLY:            AGG  $
------------------------------------------------------------------------------------------------------------------------------------
A    EXCESS LIABILITY                     TE01600570         08/17/98         01/04/99        EACH OCCURRENCE            $1,000,000
     [X] OCCUR   [ ] CLAIMS MADE                                                              --------------------------------------
                                                                                              AGGREGATE                  $1,000,000
     [ ] DEDUCTIBLE                                                                           --------------------------------------
     [X] RETENTION $10,000                                                                                               $
                                                                                              --------------------------------------
                                                                                                                         $
                                                                                              --------------------------------------
                                                                                                                         $
------------------------------------------------------------------------------------------------------------------------------------
B    WORKERS COMPENSATION AND             WZC80761613        01/04/98         01/04/99        [X] WC STATUTORY LIMITS
     EMPLOYERS' LIABILITY                                                                     [ ] OTHER
                                                                                              --------------------------------------
                                                                                              E.L. EACH ACCIDENT         $1,000,000
                                                                                              --------------------------------------
                                                                                              E.L. DISEASE - EA EMPLOYEE $1,000,000
                                                                                              --------------------------------------
                                                                                              E.L. DISEASE - POLICY      $1,000,000
                                                                                              LIMIT
------------------------------------------------------------------------------------------------------------------------------------
A    OTHER Blanket                        TE01600570         01/01/98         01/01/99        $1,000 Deductible
     Pers. Property                                                                           $2,700,000 Limit
     Blanket EDP                                                                              $899,800 Limit
------------------------------------------------------------------------------------------------------------------------------------
DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS
Replacement Cost and Special Form incl Theft applies to Property Coverage.
Transit Limit: $60,000; Exhibition Limit: $60,000; AOL Limit: $71,000
Business Income Limit: $5,590,000; Off Premises Power Limit: $1,000,000
Employee Dishonesty Limit: $60,000 - Deductible $1,000
------------------------------------------------------------------------------------------------------------------------------------

CERTIFICATE HOLDER            ADDITIONAL INSURED; INSURER LETTER                   CANCELLATION    Ten Day Notice for Non-Payment
------------------------------------------------------------------------------------------------------------------------------------
Argonaut Technologies, Inc.                                                        SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE
887 Industrial Road, Suite G                                                       CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE
San Carlos, CA 94070                                                               ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS
                                                                                   WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO
                                                                                   THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO
                                                                                   OBLIGATION OR LIABILITY OF ANY KIND UPON THE
                                                                                   INSURER, ITS AGENTS OR REPRESENTATIVES.
                                                                                   -------------------------------------------------
                                                                                   AUTHORIZED REPRESENTATIVE
                                                                                   /s/ [illegible]
------------------------------------------------------------------------------------------------------------------------------------
ACORD 25-S (7/97)          1 of 2          #S117584/M117570                                           MAB (C) ACORD CORPORATION 1988
</TABLE>
<PAGE>   21
                                   IMPORTANT

If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be
endorsed. A statement on this certificate does not confer rights to the
certificate holder in lieu of such endorsement(s).

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,
certain policies may require an endorsement. A statement on this certificate
does not confer rights to the certificate holder in lieu of such
endorsement(s).

                                   DISCLAIMER

The Certificate of Insurance on the reverse side of this form does not
constitute a contract between the issuing insurer(s), authorized representative
or producer, and the certificate holder, nor does it affirmatively or negatively
amend, extend or alter the coverage afforded by the policies listed thereon.
<PAGE>   22
<TABLE>
<S>  <C>                                 <C>              <C>              <C>                 <C>
                                                                                                                   -----------------
                                                                                                                   DATE (MM/DD/YY)
ACORD(TM) CERTIFICATE OF LIABILITY INSURANCE                                                                             09/22/98
------------------------------------------------------------------------------------------------------------------------------------
PRODUCER                                                     THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS
ABD Technology                                               NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND,
ALBURGER BASSO de GROSZ INS.                                 EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
301 Island Parkway, Suite 100                                -----------------------------------------------------------------------
Belmont, CA 94002                                                                       INSURERS AFFORDING COVERAGE
------------------------------------------------------------------------------------------------------------------------------------
INSURED                                                      INSURER A: St. Paul Fire & Marine
Argonaut Technologies                                        -----------------------------------------------------------------------
887 Industrial Road, Ste G                                   INSURER B:
San Carlos, CA 94070                                         -----------------------------------------------------------------------
                                                             INSURER C:
                                                             -----------------------------------------------------------------------
                                                             INSURER D:
                                                             -----------------------------------------------------------------------
                                                             INSURER E:
------------------------------------------------------------------------------------------------------------------------------------

COVERAGES
------------------------------------------------------------------------------------------------------------------------------------
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY
PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
------------------------------------------------------------------------------------------------------------------------------------
INSR                                                     POLICY EFFECTIVE  POLICY EFFECTIVE
LTR  TYPE OF INSURANCE                   POLICY NUMBER    DATE (MM/DD/YY)   DATE (MM/DD/YY)                 LIMITS
------------------------------------------------------------------------------------------------------------------------------------
A    GENERAL LIABILITY                    TE01600604         01/01/98          01/01/99       EACH OCCURRENCE            $1,000,000
     [X] COMMERCIAL GENERAL LIABILITY                                                         --------------------------------------
     [ ] [ ] CLAIMS MADE   [X] OCCUR      Foreign                                             FIRE DAMAGE (Any one fire) $1,000,000
     [ ] _____________________________    Liability                                           --------------------------------------
     [ ] _____________________________                                                        MED EXP (Any one person)   $10,000
     GENL AGGREGATE LIMIT APPLIES PER:                                                        --------------------------------------
     [ ] POLICY  [ ] PROJECT  [ ] LOC                                                         PERSONAL & ADV INJURY      $1,000,000
                                                                                              --------------------------------------
                                                                                              GENERAL AGGREGATE          $2,000,000
                                                                                              --------------------------------------
                                                                                              PRODUCTS - COMPROP AGG     $2,000,000
------------------------------------------------------------------------------------------------------------------------------------
A    AUTOMOBILE LIABILITY                 TE01600604         01/01/98          01/01/99       COMBINED SINGLE LIMIT      $1,000,000
     [ ] ANY AUTO                                                                             (Ea accident)
     [ ] ALL OWNED AUTOS                                                                      --------------------------------------
     [ ] SCHEDULED AUTOS                                                                      BODILY INJURY              $
     [ ] HIRED AUTOS                                                                          (Per person)
     [X] NON-OWNED AUTOS                  Foreign Auto                                        --------------------------------------
     [ ] ____________________________     DIC/Excess                                       BODILY INJURY              $
                                                                                              (Per accident)
                                                                                              --------------------------------------
                                                                                              PROPERTY DAMAGE            $
                                                                                              (Per accident)
------------------------------------------------------------------------------------------------------------------------------------
     GARAGE LIABILITY                                                                         AUTO ONLY - EA ACCIDENT    $
     [ ] ANY AUTO                                                                             --------------------------------------
                                                                                                                 EA ACC  $
                                                                                              OTHER THAN         ------------------
                                                                                              AUTO ONLY:            AGG  $
------------------------------------------------------------------------------------------------------------------------------------
     EXCESS LIABILITY                                                                         EACH OCCURRENCE            $
     [ ] OCCUR   [ ] CLAIMS MADE                                                              --------------------------------------
                                                                                              AGGREGATE                  $
     [ ] DEDUCTIBLE                                                                           --------------------------------------
     [ ] RETENTION   $                                                                                                   $
                                                                                              --------------------------------------
                                                                                                                         $
                                                                                              --------------------------------------
                                                                                                                         $
------------------------------------------------------------------------------------------------------------------------------------
A    WORKERS COMPENSATION AND             TE01600604         01/01/98         01/01/99        [X] WC STATUTORY LIMITS
     EMPLOYERS' LIABILITY                 Foreign Vol.                                        [ ] OTHER
                                          Compensation                                        --------------------------------------
                                                                                              E.L. EACH ACCIDENT         $1,000,000
                                                                                              --------------------------------------
                                                                                              E.L. DISEASE - EA EMPLOYEE $1,000,000
                                                                                              --------------------------------------
                                                                                              E.L. DISEASE - POLICY      $1,000,000
                                                                                              LIMIT
------------------------------------------------------------------------------------------------------------------------------------
     OTHER

------------------------------------------------------------------------------------------------------------------------------------
DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS

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

CERTIFICATE HOLDER            ADDITIONAL INSURED; INSURER LETTER                   CANCELLATION    Ten Day Notice for Non-Payment
------------------------------------------------------------------------------------------------------------------------------------
Argonaut Technologies, Inc.                                                        SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE
887 Industrial Road, Suite G                                                       CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE
San Carlos, CA 94070                                                               ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS
                                                                                   WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO
                                                                                   THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO
                                                                                   OBLIGATION OR LIABILITY OF ANY KIND UPON THE
                                                                                   INSURER, ITS AGENTS OR REPRESENTATIVES.
                                                                                   -------------------------------------------------
                                                                                   AUTHORIZED REPRESENTATIVE
                                                                                   /s/ [illegible]
------------------------------------------------------------------------------------------------------------------------------------
ACORD 25-S (7/97)          1 of 2          #S117602/M117598                                           MAB (C) ACORD CORPORATION 1988
</TABLE>
<PAGE>   23
                                   IMPORTANT

If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be
endorsed. A statement on this certificate does not confer rights to the
certificate holder in lieu of such endorsement(s).

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,
certain policies may require an endorsement. A statement on this certificate
does not confer rights to the certificate holder in lieu of such
endorsement(s).

                                   DISCLAIMER

The Certificate of Insurance on the reverse side of this form does not
constitute a contract between the issuing insurer(s), authorized representative
or producer, and the certificate holder, nor does it affirmatively or negatively
amend, extend or alter the coverage afforded by the policies listed thereon.
<PAGE>   24
                                   EXHIBIT F

                              SITE ACCEPTANCE FORM

Date: _______________________________

Ms. Heather Corcoran
Logistics and Safety - Purchasing
Zenaca, Inc.
1800 Concord Pike
Wilmington, DE 19850

Dear Heather:

Argonaut Technologies, Inc. hereby notifies Zeneca Inc. that it has accepted the
Installation Location, as that term is defined in the Purchase and License
Agreement between Argonaut and Zeneca Inc., dated _______________________, as
acceptable, in its present condition, for installation of the System, as defined
in the Agreement, pursuant to the terms hereof.

_____________________________________

By: _________________________________

Title: ______________________________

Date: _______________________________

<PAGE>   25
                                   EXHIBIT G

                                Proposed Price.
                      (ATTACH FINAL QUOTE FROM ARGONAUT).

                                       21
<PAGE>   26
<TABLE>
<S>                    <C>                                  <C>
[ARGONAUT              887 INDUSTRIAL ROAD, SUITE G         SALES ORDER   SALES ORDER ID   ORDER DATE    ORDER TYPE
TECHNOLOGIES LOGO]     SAN CARLOS, CA 94070                                004736           09/29/98      NORMAL
                       (650) 598-1350                       ------------------------------------------------------------------------
                       FAX (650) 598-1359                   PAGE   CHG NO.     CHANGE DATE     CHANGE DESCRIPTION   CONFIRMED TO
                                                              1      1           10/19/98                           HEATHER CORCORAN
                                                            ------------------------------------------------------------------------
                                                            CURRENCY            TERMS                         REFERENCE
                                                            USD                 NET 15 DAYS
-------------------------------------------------           ------------------------------------------------------------------------
     CUSTOMER P.O. NO.          ATTENTION                               SHIP VIA               FOB                 FREIGHT TERMS
35047657                  R. WILDONGER                      BEST WAY                 DESTINATION              NO CHARGE
-------------------------------------------------           ------------------------------------------------------------------------
   SOLD TO PHONE NO.         SOLD TO FAX NO.                            RESALE NO.                                 TAX CODE:
302-886-2857                 302-886-2909                   DE HAS NO STATE TAX                     T=TAXABLE  R=RESALE N=NONTAXABLE
-------------------------------------------------           ------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>                          <C>                           <C>
SOLD TO                        SHIP TO                      BILL TO
ZENEC002                       ZENECOO2                     ZENEC$02
ZENECA PHARMACEUTICALS         ZENECA PHARMACEUTICALS       ZENECA PHARMACEUTICALS
FAIRFAX RESEARCH CENTER        FAIRFAX RESEARCH CENTER      ATTN: ACCOUNTS PAYABLE FOC 2C
1800 CONCORD PIKE              100 CONCORD PIKE             PO BOX 15437
WILMINGTON, DE 19803           WILMINGTON, DE               WILMINGTON, DE
USA                            USA 19803                    USA 19850-5437
</TABLE>

<TABLE>
<CAPTION>

LINE    DESCRIPTION                                  REQUEST/  ORDER QUANTITY U/M    UNIT PRICE       PRICE     TAX CODE
          PART ID             DWG REV    ECN        SCHEDULED   BALANCE DUE        EXTENDED PRICE     CODE     DISC % VAT CODE
        CUSTOMER PART ID                            SHIP DATE
-----------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                        <C>         <C>         <C>      <C>               <C>       <C>
1.00      TRIDENT AUTOMATED LIBRARY SYNTHESIZER       10/29/98       1         EA        [*]            LP        N
            900132                                    10/29/98       1                       [*]

2.00      TRIDENT AUTOSAMPLER UPGRADE-GILSON 215      10/29/98       1         EA        [*]            LP        N
            900136                2                   10/29/98       1                       [*]

3.00      TRIDENT VOLTAGE KIT, NORTH AMERICA          10/29/98       1         EA        [*]            LP        N
            900135                                    10/29/98       1                       [*]

4.00      TRIDENT LAPTOP COMPUTER SYSTEM              10/29/98       1         EA         [*]           LP        N
                                                      10/29/98       1                       [*]

5.00      ONE-TIME PURCHASE DISCOUNT                  10/29/98       1         EA        [*]            LP        N
                                                      10/29/98       1                     [*]

               ********BACK ORDERED*************
               SEE SCHEDULED SHIP DATE SECTION
               *********************************
-----------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL                         ORDER TAX AMOUNT     ORDER TAX AMOUNT 2     ORDER TAX AMOUNT 3     ORDER VAT      ORDER TOTAL

-----------------------------------------------------------------------------------------------------------------------------------
ORDER TAKER     SALESMAN  REGION
   CY             SV        AMR              3              Customer                           CONTINUED NEXT PAGE
------------------------------------------------
</TABLE>

[*] Confidential Treatment Requested
<PAGE>   27
<TABLE>
<S>                    <C>                                  <C>
[ARGONAUT              887 INDUSTRIAL ROAD, SUITE G         SALES ORDER   SALES ORDER ID   ORDER DATE    ORDER TYPE
TECHNOLOGIES LOGO]     SAN CARLOS, CA 94070                                004736           09/29/98      NORMAL
                       (650) 598-1350                       ------------------------------------------------------------------------
                       FAX (650) 598-1359                   PAGE   CHG NO.     CHANGE DATE     CHANGE DESCRIPTION   CONFIRMED TO
                                                              2      1           10/19/98                           HEATHER CORCORAN
                                                            ------------------------------------------------------------------------
                                                            CURRENCY            TERMS                         REFERENCE
                                                            USD                 NET 15 DAYS
-------------------------------------------------           ------------------------------------------------------------------------
     CUSTOMER P.O. NO.          ATTENTION                               SHIP VIA               FOB                 FREIGHT TERMS
35047657                  R. WILDONGER                      BEST WAY                 DESTINATION              NO CHARGE
-------------------------------------------------           ------------------------------------------------------------------------
   SOLD TO PHONE NO.         SOLD TO FAX NO.                            RESALE NO.                                 TAX CODE:
302-886-2857                 302-886-2909                   DE HAS NO STATE TAX                     T=TAXABLE  R=RESALE N=NONTAXABLE
-------------------------------------------------           ------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>                          <C>                           <C>
SOLD TO                        SHIP TO                      BILL TO
ZENEC002                       ZENECOO2                     ZENEC$02
ZENECA PHARMACEUTICALS         ZENECA PHARMACEUTICALS       ZENECA PHARMACEUTICALS
FAIRFAX RESEARCH CENTER        FAIRFAX RESEARCH CENTER      ATTN: ACCOUNTS PAYABLE FOC 2C
1800 CONCORD PIKE              100 CONCORD PIKE             PO BOX 15437
WILMINGTON, DE 19803           WILMINGTON, DE               WILMINGTON, DE
USA                            USA 19803                    USA 19850-5437
</TABLE>

<TABLE>
<CAPTION>

LINE    DESCRIPTION                                  REQUEST/  ORDER QUANTITY U/M    UNIT PRICE       PRICE     TAX CODE
          PART ID             DWG REV    ECN        SCHEDULED   BALANCE DUE        EXTENDED PRICE     CODE     DISC % VAT CODE
        CUSTOMER PART ID                            SHIP DATE
-----------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                        <C>         <C>         <C>      <C>               <C>       <C>
               ********ORDER CONFIRMATION*******
               Direct all order questions to:
               Cinthia Yesitis - Customer Svc.
                      Phone:  650-598-1350 x220
                        Fax:  650-598-1359
               US Toll Free:  888-598-1350 x220
                *DO NOT PAY FROM THIS DOCUMENT*
               *********************************
               Zeneca Payment Schedule:
               [*] due 15 days after
               delivery of all components of
               the system.
               [*] due 15 days after
               Zeneca's acceptance of the
               system. Such acceptance shall
               not exceed forty five (45) days
               after successful completion of
               installation.
-----------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL                         ORDER TAX AMOUNT     ORDER TAX AMOUNT 2     ORDER TAX AMOUNT 3     ORDER VAT      ORDER TOTAL
    [*]                                                                                                              [*]
-----------------------------------------------------------------------------------------------------------------------------------
ORDER TAKER     SALESMAN  REGION
   CY             SV        AMR              3              Customer
------------------------------------------------
</TABLE>

[*] Confidential Treatment Requested
<PAGE>   28
[ARGONAUT TECHNOLOGIES LOGO]

                TRIDENT(TM) AUTOMATED LIBRARY SYNTHESIZER SYSTEM

900132    TRIDENT AUTOMATED LIBRARY SYNTHESIZER
          -  Operators Manual and Installation Manual
          -  Installation and startup assistance provided by Argonaut service
             engineer.
          -  One year warranty on parts and labor.
          -  Trident Ship Kit
             (4) Trident Reaction Cassettes(TM)
             (192) Trident Reaction Vessel Assemblies
             (9) 250 ml Schott Reagent Bottles
             (4) 4 L Solvent Carriers
             (2) 15 L HDPE Waste Reservoir
             (1) Reagent Syringe
             (1) Solvent Syringe
             (1) Serial Cable

900167    GILSON 223 AUTOSAMPLER/SAMPLE COLLECTOR*: Modified to operate with
          Trident; includes valving, cabling, hardware interface, co-axial
          needle and autosampler and sample collector trays.

900135    TRIDENT VOLTAGE KIT

900091    TRIDENT COMPUTER SYSTEM (GATEWAY): 333 MHz Celeron CPU with 64 Mbytes
          RAM, 3.2 Gbyte hard drive, 13x CDROM, microfloppy disk, 15" svga
          monitor, mouse/keyboard. Windows NT 4.0 and Microsoft Office Pro 97
          supplied with Trident Control Software. Provided with 3 year Gateway
          warranty (1st year on-site; 2nd-3rd years return to Gateway)

SUBSTITUTE OPTIONS:

*900136   GILSON 215 AUTOSAMPLER/SAMPLE COLLECTOR: Modified to operate with
          Trident; includes valving, cabling hardware interface, co-axial needle
          and autosampler and sample collector trays. Substitute 900136 for
          900167.

*900133   TRIDENT COMPUTER SYSTEM (HP). (Substitute for 900091.): 333 MHz
          Pentium II CPU with 64 Mbytes RAM, 6.4 Gbyte hard drive, 32x CDROM,
          microfloppy disk, 17" svga monitor, mouse/keyboard. Windows NT 4.0 and
          Microsoft Office Pro 97 supplied with Trident Control Software.
          Provided with 3 year HP warranty (1st year on-site; 2nd-3rd years
          return to HP).

*LAPTOP   TRIDENT LAPTOP COMPUTER SYSTEM (GATEWAY SOLO 2500): (Special
          substitute for 900091 per Zeneca request) Pentium 233 MHz processor,
          64 Mbytes RAM, 4 Gbyte hard disk, 20x CDROM, Windows NT. This system
          meets or exceeds minimum computer requirements specified by Argonaut
          for operation of Trident.

[ARGONAUT TECHNOLOGIES LETTERHEAD]
<PAGE>   29
SPARE PARTS AND ACCESSORIES:

900168    TRIDENT REACTION CASSETTE WITH 48 REACTION VESSEL ASSEMBLIES

900165    TRIDENT EXTERNAL AGITATION-THERMAL UNIT<PAGE>   1
                                                                   EXHIBIT 10.19

                                     LEASE

     THIS LEASE, executed in duplicate as of this 9th day of July 1999, by and
between TANKLAGE FAMILY PARTNERSHIP, a Limited Partnership hereafter called
LESSOR, and ARGONAUT TECHNOLOGIES, a Delaware Corporation hereafter called the
LESSEE (Lessor and Lessee being for convenience herein, in the singular number
and masculine gender).

     WITNESSETH: Lessor hereby leases to Lessee, and Lessee hereby leases from
Lessor, for and in consideration of the rent herein reserved and covenants
herein contained and upon the conditions hereof, that certain real property
situated in the City of San Carlos, County of San Mateo, State of California,
commonly known as 887 Industrial Road, Units D, E, F & G and 871 Industrial
Road, Units A & B, and 853 Industrial Road, Units A, I, & J and described as
follows:

     853 Industrial, A, I & J: Approximately 8,100 sq. ft.
     887 Industrial, D, E, F, & G: Approximately 11,950 sq. ft.
     871 Industrial, A & B: Approximately 3,910 sq. ft.
     as per exhibits, A, B, C, D, E, F, G, H, I, & J
     on an "AS IS" basis

A.   The terms of this lease shall be for one year, beginning on the 19th day
of July 1999 and ending on the 18th day of July 2000 inclusive, for a monthly
base rental of $30,934.00 per month in advance, commencing with the first day of
said term and on the same day of each succeeding month thereof. Receipt of the
first month's rent in the amount of $-0- is hereby acknowledged.

B.   As consideration for the execution of this lease, the Lessee shall pay to
the Lessor the sum of $30,934.00*, receipt of which is hereby acknowledged. In
the event Lessee is not then in default under the terms of this lease, said sum
of $30,934.00 shall be applied toward the rental due for the last one month of
the term hereof. If this lease is extended, said consideration, if Lessee is not
then in default, shall be applied toward rental due for the last month of the
extended term, in lieu of the last month of the initial term. * see paragraph 9

C.   The base rental above set forth shall be subject to escalation as follows:

     At the end of the first twelve (12) months of the lease term, the monthly
rental shall be increased as follows for the next and each succeeding twelve
(12) month period of the lease term:

  (a) The Consumer Price Index, for all Urban consumers, as published monthly by
the U.S. Department of Labor, Bureau of Labor Statistics, All Items, for the
United States Average (1967 = 100) is the "Index" herein referred to. Said Index
as published shall be used herein, whether or not certain items may hereafter be
added or deleted therefrom by the Bureau of Labor Statistics, or whether a
"successor index" is published.

  (b) The "Base Year Index" shall be the average monthly Index over the twelve
(12) month period ending with the calendar month immediately preceding the month
in which the term of this lease commences.

  (c) Commencing with the second twelve (12) months of the lease term, and
continuing thereafter for each remaining twelve (12) month lease period (and for
the last months of the term if said period is less than twelve (12) months),
monthly rent for each such period of the term shall be increased in the same
ratio that the average monthly Index for the previous twelve (12) months
preceding the month in which such rental period commences, shall have increased
over the Base Year Index. In no event shall the rental for any month of the
lease term be less than the base rental for the first month of the lease term.

     IT IS HEREBY AGREED BY LESSOR AND LESSEE that this lease is made upon the
following terms, covenants and conditions:

     1.   RENTAL. The Lessee will pay said rental monthly in advance and without
deductions to Lessor at the office listed as Lessor's address under Lessor's
signature hereto, or at such place or places as Lessor may in writing designate,
without grace or previous demand.

     2.   POSSESSION. If Lessor is unable to deliver possession of the premises
to Lessee on the date specified for commencement of the term hereof, this lease
shall not be void or voidable, nor shall Lessor be responsible to Lessee for
damages therefor, but there shall in such event be a deduction of rent for the
pro rata period during which possession is delayed. Neither such delay nor
occupancy by Lessee prior to the commencement date shall extend or shorten the
term, but Lessee shall pay rent for such latter period at the initial monthly
rate.

     3.   USES OF PREMISES. The Lessee shall during the term hereof exclusively
and actively conduct therein and thereon the sole business of

     Research and development, manufacturing and laboratory use in connection
     with the development of systems using chemical synthesis

     Roof surfaces shall not be penetrated by Lessee or his agents without prior
written consent of Lessor.

     The premises shall not be used for living quarters.

     Motor vehicle parking, if any, provided to Lessee under this lease shall be
non-exclusive, subject to reallocation by Lessor from time to time, and Lessee
agrees that no vehicle will be parked on the leased premises for longer than
eighteen (18) hours in any twenty-four (24) hour period. Lessee agrees that in
the event this provision is violated, the motor vehicle may at Lessor's option
be towed away at Lessee's expense.

     Lessee shall not use solid hard tires on any fork lifts or dollies on paved
parking, truck loading or driveway areas, and in the event Lessee violates this
provision, Lessee shall be responsible for the cost of resurfacing the entire
area.

     Lessee shall not use any machinery on said premises the use of which will
shake or vibrate the improvements thereon, or any part thereof, to such a degree
that injury will be done to such improvements.

     No use of said premises shall be made, or any act committed thereon, or any
article kept thereon, which would increase the existing rate of fire insurance
upon the improvements upon said premises or cause a cancellation of such
insurance; that Lessee shall not commit any act on said premises, the doing of
which is prohibited by any condition or restriction of record affecting the
title to or the right to occupy that property; that no public sale or auction
shall be conducted on said premises; and that Lessee shall not in the use of
said premises violate any present or future law, ordinance or regulation of any
public authority; and that no waste or public or private nuisance shall be
committed on said premises.

     No corrosive chemicals, acids, inflammable liquids, paints, dangerous or
toxic substances or similar materials shall be used or stored on the leased
premises. Lessee shall comply with all federal, state and local environmental
laws, ordinances and regulations, and shall indemnify Lessor against any
liability, claims and expense at any time incurred for violation of this
subparagraph, including any sum assessed against Lessor for any violations of
said laws, regulations or ordinances or incurred at any time for the elimination
of toxic substances effects or soil removal. Lessee agrees in this connection to
waive the statute of limitations applicable to any action brought hereunder.

     4.   ALTERATIONS. No alterations shall be made on or of said premises
without the written consent of Lessor first have been obtained, and any
alterations of said premises or additions thereto shall, when affixed to the
realty, become a part thereof, except moveable furniture and trade fixtures.

     No additional lock or locks shall be placed by Lessee on any door, nor
shall any existing lock be re-keyed, unless written consent of Lessor shall have
been obtained. Two keys will be furnished by Lessor. All keys shall be
surrendered to Lessor upon termination of the lease term.

                                    page one
<PAGE>   2
     The following items, whether installed by Lessor or Lessee shall be deemed
permanent improvements and not trade fixtures, but shall be subject to the
election by Lessor to require removal of any or all of them at the termination
of the lease:

     Electrical wiring, panels and conduit; all piping and ductwork; heating
units, air conditioners, lighting fixtures, ballasts, globes and tubes; and hot
water heaters, shelving and counters, and partition walls.

     5.   REPAIRS. Lessee accepts said premises (including glazing, outside
adjacent sidewalks and parking areas, if any) in their present condition,
acknowledging same to be in good order and repair; Lessee shall maintain the
said premises in as good order and repair as when received, damage by fire,
war, earthquake, or reasonable use and wear thereof, excepted; unless said fire
be caused by the negligence of Lessee, his employees or invitees. Lessee waives
the provisions of Sections 1941 and 1942 of the California Civil Code, or any
other law which would permit Lessee to make repairs at Lessor's expense.

     Lessee agrees to water, maintain and replace, when necessary, any
shrubbery, landscaping, exterior lighting, sprinklers and other such facilities
provided by Lessor on the leased premises. If parking and landscaping are
provided for an entire building or building site, the maintenance cost of such
parking and landscaping, including sweeping service, by a service designated by
Lessor shall be prorated on a square footage or other equitable basis as
calculated by Lessor. Lessee agrees to pay this cost in addition to the monthly
rental.

     Included in repairs and maintenance for which the Lessee is obligated to
pay are: replacement when necessary of light globes, fluorescent tubes,
ballasts and starters in all lighting equipment; and for repairs to doors,
storefronts and windows, including glazing, door closers, locks and frames,
landscape sprinkler system, toilet fixtures, fire sprinkler and fire sprinkler
supervisory systems, due to damage from any cause. This list is not intended to
be exclusive and shall not limit the general provisions hereof concerning
repairs.

     For the duration of the lease, Lessee agrees to maintain and pay for a
service contract which meets the manufacturer's recommendations of the air
conditioning and heating systems installed in the leased premises. Lessor shall
not be obligated to repair minor settlement cracks on walls or floor of the
leased premises, and shall not be responsible for the leaking of said walls due
thereto or as the result of porosity thereof.

     6. INDEMNIFICATION OF LESSOR; INSURANCE. Lessee assumes all risk of injury
to person and property in or about said premises, including Lessee's property,
and will hold Lessor free and harmless from liability therefor, including costs
and counsel fees. Lessee shall secure and keep in force a public liability
insurance policy on an occurrence basis covering leased premises, including
parking areas, if any, included in this lease, insuring Lessee and naming
Lessor as an additional insured, and a copy of same shall be delivered to
Lessor. Said insurance policy shall have minimum limits of coverage of $500,000
personal injury and property damage. Lessee shall further insure, at his
expense, the glass, glazing, window frames, skylights, door, mullions and
storefront window wall, if any, in said premises in a company and in an amount
acceptable to Lessor; loss, if any, to be payable to Lessor. A copy of said
policy shall be delivered to Lessor; and if the Lessee does not so deliver said
policy to Lessor, Lessor may insure said glass and glazing, and collect the
cost thereof from Lessee. All policies shall be kept current and provide for
non-cancellation and non-modification without 30 days advance notice to Lessor.

     7. UTILITIES. Lessee will pay, when due, all charges incurred by him for
water, light, power, heat, gas, garbage removal, sewer charges and storm drain
charges (rental, tax, assessment or other), telephone and other services
furnished to said premises, including fire sprinkler supervisory. If any such
charges are assessed to a larger building of which the leased premises are a
part, such charges shall be appropriately prorated on the basis of area by the
Lessor. All such charges incurred by Lessor for the common areas of an entire
premises of which the leasehold is a part, including but not limited to
walkways, driveways, parking areas and landscaping, shall be prorated on a
square footage or other equitable basis as calculated by Lessor. Lessee agrees
to pay this cost in addition to the monthly rental.

     8. ASSIGNMENT. Lessee shall not assign this lease, or any interest
therein, or sub-lease said premises, or any portion thereof, or license the use
thereof, or any portion thereof, without the written consent of Lessor first
had and obtained; that consent given by Lessor to one or more assignments,
sub-leases or licenses shall not be construed as a subsequent or continuing
consent; and that any such assignment, sub-letting or licensing (including
transfer by operation of law) without such consent shall at Lessor's option
terminate this lease. In the event of any assignment or sub-lease hereunder
whether consented to by Lessor or not, Lessee agrees to pay Lessor monthly 100%
of the excess of the rent provided under assignment or sub-lease over the rent
specified herein.

     9. SUBORDINATION TO DEED OF TRUST. This lease at the option of Lessor
shall be subordinate to any deed of trust now existing, or which Lessor may in
the future execute covering said premises. Lessee agrees forthwith upon request
of Lessor to execute such documents providing subordination of this lease to
any such deed of trust executed now or in the future.

     Lessee shall from time to time upon ten (10) days' prior written request
by Lessor execute, acknowledge and deliver to Lessor (a) a statement in writing
certifying, if such be true, that his Lease is unmodified and in full force and
effect (or if there have been modifications that the same is in full force and
effect as modified and stating the modifications) and the dates to which rental
and other charges have been paid; and (b) such other instruments as may
reasonably be required or requested by any mortgagee, beneficiary of a deed of
trust or holder of any other encumbrance on the Premises.

     10. DESTRUCTION OF PREMISES. In the event the premises are totally
destroyed, then this lease will be forthwith terminated. In the event the
demised premises are part of a building and such building is damaged to such an
extent that the cost of repairs exceeds one-third of the cost of replacement of
said building, then at the option of the Lessor, this lease shall terminate. In
the event of partial destruction of the premises, which Lessor elects to or is
bound to repair, the same shall be repaired by Lessor as soon as reasonably
possible if such repairs can be made in ninety (90) working days after receipt
of all permits under the laws, ordinances and regulations applicable thereto,
and also if the necessary financing therefor is obtainable on a reasonable
basis from local lending agencies; but if such repairs cannot be so made, then
this lease, at the option of Lessor, shall terminate; but if not so terminated,
then Lessor shall repair the same as soon as reasonably possible. During the
time such repairs are being made Lessor shall not unreasonably interfere with
Lessee's business, and the rent for such period shall be reduced
proportionately to the extent Lessee is deprived of the use of the premises.
Lessee waives the provisions of sections 1932 (subdivision 2) and 1933
(subdivision 4) of the California Civil Code.

     11. DEFAULT. In the event Lessee defaults in the terms hereof, Lessor, at
his option, and in addition to any other rights he may have, may re-enter and
repossess said premises and remove all property therefrom and store the same at
the expense of Lessee. Lessor, upon default of Lessee, may relet said premises
or any portion thereof, in a changed condition or otherwise, for such rental
and upon such terms as he deems reasonable, and hold Lessee for the difference
received, plus expenses of reletting and collecting such rental, and the rental
herein provided. No such re-entry or taking of possession by Lessor shall be
deemed an election to terminate this lease unless Lessee is served with notice
of said termination by Lessor or the same be decreed by a court of competent
jurisdiction.

     In the event Lessee shall breach this lease and abandon the demised
premises, Lessor may also elect to continue the lease in effect and Lessor may
enforce all rights and remedies hereunder, including the right to recover rent
as it becomes due, all pursuant to the provisions of Section 1951.4 of the
California Civil Code. In the event of such election by Lessor to continue the
lease, Lessee hereby irrevocably appoints Lessor the agent of Lessee to enter
upon the demised premises and remove any and all persons and/or property
whatsoever situated upon said premises, and to place all or any portion of said
property, except such property as may become the property of Lessor, in storage
for the account of and at the expense of Lessee; and, in such case, Lessor may
relet the demised premises upon such terms as to it may seem fit, and if a
sufficient sum shall not be thus realized, after paying expenses of such
reletting and collecting, to satisfy the rent and such other sums as may be
reserved herein to be paid, Lessee shall satisfy and pay any deficiency, and
pay the expenses of such reletting and collecting. Lessee hereby releases
Lessor and agrees to save harmless Lessor from any cost, loss or damage arising
out of or caused by any such entry or reentry upon the demised premises and/or
the removal of persons and/or property and storage of such property by Lessor
or his agents.

     Lessee hereby grants to Lessor a security interest in all its fixtures,
machinery, equipment, presently owned by Lessee and located at said demised
premises. While Lessee is not in default in the payment of rent or any of its
obligations under this Lease, it may trade in or replace any of said items free
of this security interest and the security interest shall then apply to the
newly acquired items. All trade fixtures, equipment and other like property
which the Lessee has installed in the building shall remain the property of the
Lessee, subject to Lessor's security interest, and the Lessor agrees that the
Lessee shall have the option at any time, and from time to time, provided the
Lessee is not then in default in the performance of any of the obligations of
the lease on its part to be performed, to trade in or replace any and all of its
trade fixtures, equipment, and other

                                    page two
<PAGE>   3
like property which it may have installed in the building or improvements, and
upon the termination of the lease, to remove same, provided, that if Lessee be
in default it shall not then have any right of trading in, replacing or
removing of such trade fixtures, equipment and other like property which it may
have installed.

     12. ATTORNEY'S FEES. In the event of any suit, action or proceeding
brought by either party for the breach of any term hereof, or to enforce any
provision hereof, or for unlawful detainer, the losing party will pay to the
other reasonable counsel fees in said action or proceeding as fixed by the
court.

     In the event Lessee is in default in payment of rent for any period or in
Lessee's performance of any covenant hereof, and the Lessor engages an attorney
to prepare a notice of such default for service on the Lessee, the Lessee
agrees to reimburse the Lessor for the services of such attorney; and in the
event the default is cured prior to institution of suit, the fee for the
preparation of such notice shall be a reasonable amount therefor, plus actual
costs of service.

     13. ENTRY AND INSPECTION. Lessor reserves the right to enter said premises
at all reasonable times for the purpose of repairing, altering or maintaining
the improvements thereon, inspecting said premises, showing the same to
prospective encumbrancers, lessees, insurers, or purchasers, posting any notice
or sign deemed necessary by him to protect his title or interest in said
property; and during the last one hundred twenty (120) days of the term hereof
placing and maintaining therein customary "for sale" or "to let" signs.

     14. WAIVER. The waiver by Lessor of any breach hereof shall not be deemed
a waiver of any subsequent breach of the terms hereof.

     15. HOLDING OVER. Should Lessee remain in said premises after the
expiration of this lease, such holding over shall be construed as a tenancy
from month to month upon such increase in rental, if any, as established by
notice from Lessor, but otherwise on the terms and conditions hereof so far as
applicable, including rent, and the provisions for cost of living increases
therein (if any) and tax reimbursement. This paragraph shall in no sense imply
any consent by Lessor to such holding over.

     16. NOTICES TO LESSEE. All notices required by law or this lease to be
given to Lessee by Lessor may be given personally to Lessee or mailed to him
by United States mail, postage prepaid and addressed to Lessee at the premises,
whether or not Lessee has abandoned or vacated them.

     17.  TRANSFER OF SECURITY. In the event any security be given by the
Lessee to secure the faithful performance of this lease, Lessor shall not be
chargeable with interest thereon, and in the event of a sale of said premises
he may transfer such security to the purchaser and be relieved of further
liability therefor.

     18.  INSOLVENCY OR BANKRUPTCY. To the extent permitted by law, the
interest of Lessee in such premises and this lease, at the opinion of Lessor,
shall terminate in the event of levy of execution against Lessee upon such
interest (provided Lessee fails for a period of five (5) days to discharge or
bond against said levy), or upon Lessee filing or having filed against him
bankruptcy proceedings or other proceedings under the bankruptcy statutes, or
upon Lessee making a general assignment for the benefits of creditors, or upon
the appointment of a receiver to take possession of all or substantially all of
Lessee's assets.

     19.  LIENS. In the event any lien is filed against said premises for any
claim against Lessee, Lessee shall remove the same forthwith; but failing to do
so, Lessor may remove the same at the expense of Lessee. Lessee may, however,
dispute the validity of such lien, but as a condition thereof, shall file with
Lessor a surety bond covering the amount thereof.

     20.  SIGNS. Lessee shall not place any signs, visible from the exterior,
on any part of the premises without the written consent of Lessor. Upon the
expiration of this lease, Lessee shall remove all signs or decorations placed
on or in said premises and shall repair any damage done by placing, maintaining
or removing of said signs or other equipment on the roof or other portions of
the premises. Lessee may place professionally designed signs in and on said
building advertising Lessee's business after written approval by Lessor, and
governmental entitles. Signs shall include tethered airborne objects and mobile
units.

     21.  SURRENDER OF PREMISES. Lessee agrees to surrender the premises at the
termination of the tenancy herein created, in the same condition as herein
agreed they have been received,* damage caused by war, earthquake, and ordinary
wear and tear excepted; and upon the surrender of the premises, either at the
expiration of the term or otherwise, Lessee agrees to remove all personal
property and rubbish from the premises; but if not so removed by Lessee, Lessor
may have the same removed at Lessee's expense. In the event of surrender of
this lease, Lessor shall have the option of terminating all existing sub-leases
or of assigning said sub-leases to Lessor. At the time of termination of this
lease, Lessor may require any or all of the alterations or additions installed
by Lessee or by Lessor for the benefit of Lessee at Lessee's request, to be
removed and the premises restored to their original condition, whether or not
said alterations or additions have become part of the premises under paragraph
4 hereof. *See paragraph 34

     22.  SUCCESSORS AND ASSIGNS. The covenants and conditions herein
contained, subject to the provisions as to assignment, shall apply to and bind
the heirs, executors, administrators, successors and assigns of Lessor and
Lessee. The term "Lessor" as used herein shall mean only the owner or owners at
the time in question of the fee title or a Lessee's interest in a ground lease
of the Premises, and except as expressly herein provided, in the event of any
transfer of such title or interest, Lessor herein named (and in case of any
subsequent transfers the then grantor) shall be relieved from and after the
date of such transfer of all liability as respects Lessor's obligations
thereafter to be performed, provided that any funds in the hands of Lessor or
the then grantor at the time of such transfer, in which Lessee has an interest,
shall be delivered to the grantee. The obligations contained in this Lease to
be performed by Lessor shall, subject as aforesaid, be binding on Lessor's
successors and assigns, only during their respective periods of ownership.

     23.  TIME. Time is of the essence of this lease.

     24.  RECORDING. This lease shall not be recorded by Lessee, but in the
event the interest of Lessee herein is shown as an exception to title in any
title company report of title, Lessee agrees to execute and deliver to Lessor a
quitclaim deed covering all Lessee's interest in said premises, forthwith upon
termination of this lease.

     25.  TAX INCREASES. Lessee agrees to pay Lessor the amount of any increase
in city, county and district real estate taxes assessed against said premises,
in excess of the taxes for the fiscal year 1999 - 2000. Included in "taxes"
shall be any levy, tax, charge or fee levied by a governmental entity on
parking spaces or privileges or parking uses in the leased premises and any tax
on Lessor's gross rental receipts (other than income tax).

     Also included in said taxes shall be any future special assessments for
local improvements of any sort. If said assessments are permitted to go to
bond, the total amount of the annual installment shall be added to the tax bill
for the purpose of the computation of any increase in taxes; if Lessor
discharges said assessment and does not permit the same to go to bond, the
amount which each annual installment, less interest, would have been if the
same had gone to bond, shall be annually added to Lessor's tax bill for the
purpose of tax increase computation.

     Lessee shall pay Lessor the amount of any such increase in real property
taxes, as above defined, in two equal installments, one on December 1 and the
other on April 1 of the said fiscal tax years. Submission of copies of tax
bills by Lessor shall be evidence of and notice of the amount of said taxes.
The amount of said increase shall be prorated in the event this lease commences
or terminates during any fiscal tax year, and in such event the split-period,
proratable semi-annual installment of the tax increase shall be paid either
thirty (30) days prior to the termination of this lease or within ten (10) days
of notification by the Lessor to the Lessee of the amount of said increase.

     In the event said tax reimbursement payments are not made to Lessor on or
before the dates herein set forth, the Lessee shall pay to Lessor a ten percent
(10%) per annum late charge for such delinquency to be added to the tax
reimbursement payment due. If said taxes and assessments are assessed against
the entire building and building site, the taxes and assessments allocated to
the leased premises shall be prorated on a square footage or other equitable
basis, as calculated by Lessor.

     If the assessed value of the Lessor's premises is increased by the
inclusion therein of a value placed upon the personal property or improvements
of the Lessee, and if the Lessor pays the taxes based on such increased
assessment, the Lessee shall, upon demand, repay to the Lessor the portion of
such taxes resulting from such increase in assessment.

     26.  OUTSIDE STORAGE. No materials, supplies, equipment, finished products
or semi-finished products, raw materials or articles of any nature shall be
stored upon or permitted to remain on any portion of the leased premises
outside of the building constructed thereon, except with the prior written
consent of the Lessor.

     No waste materials or refuse shall be dumped upon or permitted to remain
unreasonably upon any part of the leased premises outside of building proper,
unless approved by Lessor.

     27.  OTHER RULES. Lessor reserves the right to make such other reasonable
rules and regulations, including parking regulations, as in Lessor's judgment
may from time to time be necessary for the safety, cleanliness and orderly
operation of the leased premises for the benefit of all the tenants in the
area. Lessee agrees to require its employees, executive, invitees and customers
to abide by such results and regulations, including parking regulations.

                                   page three
<PAGE>   4
     28.  CONDEMNATION. In the event more than ten per cent (10%) of the
building area or more than twenty per cent (20%) of the surrounding land in the
demised premises shall be condemned by any public authority under eminent
domain, this lease shall terminate and the award for damages shall belong
entirely to Lessor, except as to trade fixtures of Lessee. If a lesser portion
of the premises be condemned, the Lessee shall be entitled to a reasonable
abatement of rent proportionate to the loss of use of space being leased. The
granting by Lessor of storm drainage or utility easements over the demised
premises shall not involve any reduction in rent, unless such easements
materially affect Lessee's use of the demised premises.

     29.  NOTICES TO LESSOR. All notices required by law or this lease to be
given to Lessor by Lessee shall be mailed to Lessor, registered or certified
mail, return receipt requested, by United States Mail, postage prepaid to Lessor
at the following address or such other address as Lessor may direct in writing:

                         1025A Tanklage Road
                         San Carlos, CA 94070

     30.  ROOF MAINTENANCE. Notwithstanding the provisions of Paragraph 5,
Lessor shall maintain the roof and structural components of the leased
premises, such duty to repair being subject to the condition precedent that
Lessee shall give prior written notice of at least 24 hours to Lessor (during
working hours) specifying the need for such repairs. Structural components are
defined as outside walls (excluding windows, doors, doorframes, storefront,
glazing, door closers, locks and hardware), footings, columns, floor slab, and
roof structure systems. The Lessee, however, shall be obligated to make any and
all repairs caused by any act or omission of Lessee, his employees or invitees.

     31.  ADDITIONAL CLAUSES TO THIS LEASE. The following additional paragraphs
have been included in this lease as attachments thereto: No. 32, 33, 34, 35, 36,
37, 38, 39, & 40. In the event any of the provisions of said added paragraphs
conflicts with the provisions of paragraphs 1 through 31 hereof, the additional
paragraphs shall control and shall be effective.

     IN WITNESS WHEREOF, Lessor and Lessee have executed this lease the day and
year first above written.

LESSOR: TANKLAGE FAMILY PARTNERSHIP       LESSEE: ARGONAUT TECHNOLOGIES, a
        a Limited Partnership                     Delaware Corporation

        /s/ DON TANKLAGE                          /s/ D. P. BINKLEY
        ------------------------------            ------------------------------
         Tanklage Construction Co., Inc.          David P. Binkley, Ph.D.
         General Partner
         Don Tanklage, President
Address: 1025 Tanklage Road, Unit A      Address: 887 Industrial Road, Unit G
         San Carlos, California 94070             San Carlos, California 94070

32.) Lessee shall not generate or cause any of the following: Noise,
vibrations, odor or dust discernible or audible to adjoining tenants and in the
event of any complaint by any adjoining tenant, Lessor or any municipal entity
or agency, then Lessee shall cure such breach of the lease within 60 days of
said notice.

33.) Any other provisions of this lease not withstanding, the parties hereby
agree that the demised premises may be subject to the terms and conditions of
the Americans with Disabilities Act of 1990 (herein after the "ADA") as a
result of Lessee's use of said premises. The parties further agrees to
indemnify and hold the Lessor harmless against any claims which may arise out
of Lessee's failure to comply with the ADA. Such indemnification shall include,
but not necessarily be limited to reasonable attorney's fees, court costs and
judgments as a result of said claims.

34.) "received shall be defined as received at the time of the original lease
dated October 9, 1995 for 853 Industrial Road, Units A, I & J; and original
lease dated November 4, 1997 for 871 Industrial Road, Units A & B; and original
lease dated January 19, 1995 for 887 Industrial Road, Units D, E, F & G.

35.) All dumpster and garbage cans to be stored indoors except on day of pickup.

36.) Lessee agrees that only pneumatic tired forklifts and hand trucks shall be
used, operated, parked or stored on the leased premises, and any violation of
this provision shall be deemed a material breach of the lease entitling the
Lessor to exercise any or all of its remedies at law or as provided by this
lease.

37.) Lessee agrees to notify Lessor and P.G.&E. of any electrical loads
connected within the space by filling out a SerCare sheet and submit it to
P.G.&E. with a copy to Lessor. Lessee agrees to indemnify and hold Lessor
harmless and pay for any damages caused by connection of electrical loads to
building electrical system or P.G.&E. transformer.

38.) Lessor acknowledges that Lessee uses and stores small quantities of
products which have as their ingredients items listed on Exhibit "E". Storage
and use of chemicals and hazardous waste to comply with federal, state and
local regulations. Flammable solvent waste to be stored in separate, labeled
containers not exceeding 5 gallons.

39.) Deposits: 887 Industrial Road - $17,327.00 paid to Escagenetics and
received by Tanklage Family Partnership 3/18/96; 853 Industrial Road -
$5,265.00 paid to Escagenetics and received by Tanklage Family Partnership
3/18/96; 871 Industrial Road - $3,206.00 received 11/18/97. The amount of
$5,136.00 due with the execution of this lease dated 7/9/93.

                                   page four
<PAGE>   5
40.) OPTION - The Lessee shall have the right to one, one year option, extending
     the term of the lease from July 19, 2000 through July 18, 2001 providing
     Lessee is not in default of the terms and conditions of this lease and that
     notice of Lessee's exercise of the option is given in writing to Lessor
     prior to January 18, 2000. The base year rent for July 19, 2000 and the
     first year rent for the option period for the new lease shall be the
     greater of the following: 1) 95% of the market rent based on comparable
     properties in the immediate area; 2) the 1999-2000 base year index adjusted
     or updated to July 2000, using the same formula specified in the original
     lease dated July 9, 1999. All terms and conditions agreed upon in the
     original lease shall carry forward to the lease option period with the
     exception of the change in base year rental amount, the lease term and the
     option clause.

                                   page five

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}]]