Document:

<PAGE>

                             COLLABORATION AGREEMENT

     This Collaboration Agreement ("Agreement") is entered into as of December
20, 1999 (the "Effective Date"), by and between Rosetta Inpharmatics, Inc.,
("Rosetta"), a corporation organized and existing under the laws of the State of
Delaware and having a place of business at 12040 - 115th Avenue Northeast,
Kirkland, Washington 98034-6900 and Corixa Corporation ("Corixa"), a corporation
organized and existing under the laws of the State of Delaware and having a
place of business at 124 Columbia Street, Suite 200, Seattle, Washington
98104-2040.

     The parties agree as follows:

     1. BASIS FOR AGREEMENT. Corixa has samples of normal and diseased tissues
and wants to obtain information about the difference between those tissues.
Corixa has or will make certain nucleic acid material including cDNA for
constructing microarrays ("PCR Product" described in Section 2 below) and
ribonucleic acid samples from the normal and diseased tissues for hybridizing to
microarrays ("Sample RNA"). Corixa desires to know which genes are expressed in
cells in the diseased tissue relative to the normal tissue. Rosetta has
expertise in the area of using microarrays and analyzing microarray data to
determine gene expression. The purpose of this Agreement is to set forth the
terms and conditions under which (a) Corixa will supply Rosetta with PCR Product
and Sample RNA, and (b) Rosetta will conduct experiments using microarrays
constructed using PCR Product and hybridized with Sample RNA and provide Corixa
with an analysis of the data generated from such experiments. The procedures
that each party will follow in performing this Agreement are set forth in the
provisions herein and in Appendix A hereto, which is incorporated herein by this
reference.

     2. SUPPLY OF PCR PRODUCT. For each cDNA clone that corresponds to a gene
of interest, Corixa shall supply Rosetta with PCR amplified product from each
cDNA clone ("PCR Product") with [***] of approximately [***] being supplied
per month; however, the number of clones per set can range from [***].
Corixa will use reasonable efforts to deliver the PCR Product to Rosetta
during the first [***] of each month, in order to permit Rosetta to establish
a schedule for its personnel and facilities; this delivery date can be
changed by agreement of the parties. Corixa shall provide no more than [***]
of PCR Product per month to Rosetta for up to [***] unless the parties agree
[***]. The procedures to be used for supply of the PCR Product by Corixa to
Rosetta are set forth in Appendix A under the heading "PCR Product Provided
by Corixa."

     3. USE OF THE PCR PRODUCT BY ROSETTA. Within [***] of receipt of PCR
Product by Rosetta, Rosetta shall employ commercially reasonable efforts to
fabricate [***] microarrays that utilize the PCR Product provided by Corixa.

     4. SUPPLY OF THE SAMPLE RNA. Sample RNA will be in the form of poly A+
RNA in matched sample pairs of no more than [***] per month. Corixa shall
deliver appropriate Sample RNA in [***] to Rosetta within [***] after
delivery of the PCR Product in any given month so that the appropriate
microarrays are available when Sample RNA is received. The procedures to be
used by Corixa for providing Sample RNA to Rosetta are set forth in Appendix
A under the heading "Sample RNA Provided by Corixa."

     5. USE OF SAMPLE RNA BY ROSETTA. Within [***] of receipt
of Sample RNA, Rosetta will (a) label the Sample RNA, (b) hybridize the Sample
RNA to a microarray, (c) scan the microarray, (d) compile the experimental data
("Array Data"), and (e) provide an analysis of the data to Corixa in a written
form agreed upon by the parties.

* Material has been omitted pursuant to a request for confidential treatment,
  and such material has been filed separately with the SEC.

<PAGE>

Collaboration Agreement
Corixa/Rosetta Inpharmatics                                          Page 2 of 7

     6. ARRAY DATA ANALYSIS. Information that is the result of the microarray
experiments performed by Rosetta in analyzed form shall be termed herein the
"Analyzed Data." The Analyzed Data, whether or not the result of successful
experiments, shall be disclosed in a written report to Corixa within the
[***] period set forth in Section 5 herein. Array Data associated with
Analyzed Data will be provided to Corixa in spreadsheet form on a floppy disk
or other computer-readable format agreed upon by the parties.

     7. ROSETTA DEVELOPED SOFTWARE TOOLS. In the event Corixa requires
Rosetta to provide Analyzed Data in other than spreadsheet form, Rosetta
shall use reasonable commercial efforts to develop and provide to Corixa
software tools for interpretation of Analyzed Data on site at Corixa. For
such development efforts by Rosetta, Corixa shall pay Rosetta the sum of [***]
per year for licensing the software tools. Corixa shall pay Rosetta [***]
upon initiation of such development efforts and the balance of [***] upon
delivery of the software tools to Corixa. The license fee of [***] for the
first-year license of the software tools shall be due upon delivery of the
software tools to Corixa. These development and licensee fees are in addition
to the compensation for services set forth in Section 10. Rights in the
software tools is described in Section 13. The capabilities and features of
the software tools to be provided to Corixa pursuant to this Section 7, if
any, shall be agreed upon between the parties prior to the initiation of any
development work by Rosetta.

     8. QUALITY CONTROL. To determine whether failed results of a microarray
experiment are the result of Rosetta's procedures or material provided by
Corixa, the procedures of this Section 8 will be followed.

          8.1 QUALITY OF PCR PRODUCT AND MICROARRAYS. Procedures to check the
     quality of PCR Product provided by Corixa and the procedure used to
     determine which party should pay for a repeated microarray experiment
     are set forth in Appendix A under the heading "Quality of PCR Products
     and Microarrays." In the event that a set of microarrays are re-printed
     pursuant to the procedures set forth in the section entitled "Quality of
     PCR Product and Microarrays" in Appendix A, Corixa will be invoiced the
     sum of [***] for such re-printing. A set of microarrays shall comprise
     [***] microarrays. If Corixa decides to provide Rosetta with a new batch
     of PCR Product for re-printing a set of microarrays, the parties agree
     to adjust the time-frames set forth in this Agreement in an appropriate
     manner. For microarray experiments that are repeated by Rosetta because
     of inadequate or poor quality PCR Product, Corixa will be invoiced for
     such experiments at the following rates: [***]

          8.2 QUALITY OF SAMPLE RNA. Procedures to check the quality of Sample
     RNA provided by Corixa and the procedure used to determine which party
     should pay for a repeated microarray experiment are set forth in Appendix A
     under the heading "Quality of Sample RNA." For microarray experiments
     repeated by Rosetta because of low Sample RNA quality, Corixa will be
     invoiced for such experiments at the following rates: [***]

     9. RETURN OF UNUSED REAGENTS. All PCR Product and Sample RNA provided by
Corixa that is not used by Rosetta shall be returned to Corixa.

     10. COMPENSATION. As compensation for the services to be provided under
this

* Material has been omitted pursuant to a request for confidential treatment,
  and such material has been filed separately with the SEC.

<PAGE>

Collaboration Agreement
Corixa/Rosetta Inpharmatics                                          Page 3 of 7

Agreement, excluding the fees for software development described in Section
7, Corixa will pay Rosetta [***]. This sum shall be paid on the following
schedule: (a) [***]

     11. CONFIDENTIAL INFORMATION. For the purposes of this Agreement, the term
"Confidential Information" shall mean, and collectively include, all non-public
information relating to the business, plans and/or technology of either party
including, but not limited to, technical information including inventions,
methods, plans, processes, specifications, source code, object code,
characteristics, raw data, equipment design, know-how, experience, and trade
secrets, developmental, marketing, sales, operating, performance, and cost
information; computer programming techniques; information relating to the PCR
Product, Sample RNA, Array Data, and Analyzed Data; and all record bearing media
containing or disclosing the foregoing information and techniques including
written business plans, patents and patent applications, grant applications,
notes, and memoranda, whether in writing or presented, stored or maintained in
or by electronic, magnetic, or other means, to the extent that such information,
as of the date of disclosure by the disclosing party to the receiving party, was
not (a) known to the receiving party as evidenced by written documentation; (b)
disclosed in published literature or otherwise generally available to the
public; or (c) obtained from a third party without binder of secrecy, PROVIDED,
HOWEVER, that such third party has no confidentiality obligations to the
disclosing party or any of its affiliates. Rosetta agrees to treat Array Data
and Analyzed Data as Confidential Information disclosed by Corixa to Rosetta
within the scope of this Agreement.

          11.1. RESTRICTIONS ON USE AND DISCLOSURE OF CONFIDENTIAL INFORMATION.

               11.1.1. Subject to the right of publication pursuant to Section
          12 hereof and Rosetta's right to use Array Data and Analyzed Data
          pursuant to Section 13 hereof, the receiving party agrees to treat as
          confidential and not to use other than to perform this Agreement, and
          not to reverse engineer or decompile any Confidential Information
          disclosed to it by the disclosing party. The receiving party agrees
          not to disclose to any third party any Confidential Information
          disclosed to it by the disclosing party. The receiving party further
          covenants that it will exercise every reasonable precaution to
          preclude the unauthorized disclosure by any of its personnel or
          employees to other parties of any Confidential Information disclosed
          to it by the disclosing party under the provisions of this Agreement.
          The receiving party agrees not to disclose the Confidential
          Information it receives from the disclosing party to anyone except its
          own personnel and employees, who (a) are actively and directly
          evaluating the Confidential Information, and consequently need to know
          such information and (b) are bound by confidentiality, nondisclosure,
          and nonuse obligations AT LEAST AS STRINGENT AS THOSE SET forth in
          this paragraph 11.1.1.

               11.1.2. The obligations of paragraph 11.1.1 hereof will expire
          with respect to each item of Confidential Information [***] from the
          termination date of this Agreement.

               11.1.3. Any such information which is characterized as
          Confidential Information on the date of initial disclosure to the
          receiving party shall cease to be Confidential Information and the
          receiving party shall be released from the provisions of paragraph
          11.1.1 hereof on the date when, through no fault or omission on the
          part of the

* Material has been omitted pursuant to a request for confidential treatment,
  and such material has been filed separately with the SEC.

<PAGE>

Collaboration Agreement
Corixa/Rosetta Inpharmatics                                          Page 4 of 7

          receiving party, such information becomes (a) disclosed in published
          literature or otherwise generally available to the public, or (b)
          obtained by the receiving party from a third party without binder of
          secrecy, provided, however, that such third party has no
          confidentiality obligations to the disclosing party or any of its
          affiliates.

               11.1.4. Notwithstanding the obligations of paragraph 11.1.1, the
          receiving party shall be permitted to disclose Confidential
          Information that is required to be disclosed by the receiving party to
          comply with applicable laws, court order, or governmental regulations,
          provided that the receiving party provides prior written notice of
          such disclosure to the disclosing party and takes reasonable and
          lawful actions to avoid and/or minimize the degree of such disclosure.
          The prior written notice must be given in sufficient time to permit
          the disclosing party to seek a protective order or some other
          accommodation.

          11.2 TERMS OF THIS AGREEMENT. The parties will keep the terms of this
     Agreement confidential and not disclose them to any third party, except as
     may be required by regulatory agencies or courts or as required by law, and
     will then use all reasonable precautions to keep the terms of this
     Agreement confidential.

     12. PUBLICATION. Publication rights for the Array Data and Analyzed Data
shall belong to Corixa. Corixa agrees that in the event that it decides to
prepare and submit a manuscript that includes Array Data and/or Analyzed Data
for publication, it will include appropriate Rosetta personnel as authors on the
manuscript.

     13. INTELLECTUAL PROPERTY.

          13.1 All Array Data and Analyzed Data ("Intellectual Property") shall
     be [***]. Any inventions or discoveries made solely by Rosetta through
     use of the Intellectual Property in the field of [***] shall be owned by
     Rosetta and Rosetta hereby grants Corixa an exclusive, royalty-free
     license to use such inventions or discoveries to research, develop and
     commercialize products in all other fields. [***] shall be deemed to mean
     [***]. At Corixa's request, Rosetta shall promptly execute such
     instruments as are necessary to perfect Corixa's rights to any Intellectual
     Property.

          13.2 Any and all intellectual property rights to the software tools
     developed by Rosetta pursuant to Section 7 including, but not limited to,
     patents, patent applications, trademarks, copyrights, know-how, moral
     rights, and similar rights of any type under the laws of any governmental
     authority, domestic or foreign, including all applications and
     registrations relating to any of the foregoing, shall remain with Rosetta.
     Upon development of the software tools and payment of the license fee set
     forth in Section 7 to Rosetta, Rosetta grants Corixa a nonexclusive,
     nontransferable, revocable license to use the software tools (in object
     code form only, and without any right to sublicense or make derivative
     works or any changes, modifications, corrections, improvements, or
     extensions of the software tools) for internal use only in the United
     States at Corixa's site located at Seattle, Washington.

* Material has been omitted pursuant to a request for confidential treatment,
  and such material has been filed separately with the SEC.

<PAGE>

Collaboration Agreement
Corixa/Rosetta Inpharmatics                                          Page 5 of 7

     14. DISCLAIMER OF REPRESENTATIONS AND WARRANTIES. NEITHER PARTY MAKES ANY
REPRESENTATIONS OR EXTENDS ANY WARRANTIES, EXPRESS OR IMPLIED, AS TO ANY MATTER
WHATSOEVER INCLUDING, WITHOUT LIMITATION, THE PCR PRODUCT, THE SAMPLE RNA, THE
ARRAY DATA OR THE ANALYZED DATA INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF
OWNERSHIP, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE. Without
limitation of the foregoing generality, nothing contained herein or in any
disclosure of research conducted by Rosetta shall be construed as extending any
representation or warranty with respect to research using PCR Product or Sample
RNA or the results to be obtained by the use thereof or any products resulting
therefrom, or that use of the Array Data or Analyzed Data will be free from
infringement of patents or other proprietary rights of third parties. Neither
party makes any warranties whatsoever as to the commercial or scientific value
of the Array Data or Analyzed Data. NOTWITHSTANDING ANYTHING HEREIN TO THE
CONTRARY, CORIXA REPRESENTS AND WARRANTS THAT IT HAS THE RIGHT TO TRANSFER THE
PCR PRODUCT AND SAMPLE RNA TO ROSETTA ON THE TERMS AND CONDITIONS OF THIS
AGREEMENT.

     15. INDEMNITY. Corixa agrees to indemnify and hold harmless Rosetta, its
directors, officers, employees, and agents, from all costs, expenses (including
attorneys' fees), interest, losses, obligations, liabilities, and damages paid
or liability for which is incurred by any of said parties, and which arise out
of or are in connection with or are for the purpose of avoiding any and all
claims, demands, actions, causes of action, suits, appeals, and proceedings, all
whether groundless or not, or the settlement thereof, based on any actual or
alleged injuries, damages, or liability of any kind whatsoever (including,
without limitation, personal injury, death, property damage, breach of warranty,
or breach of contract) arising, directly or indirectly, out of (a) any
manufacture, marketing, possession, use, sale, or other disposition of Array
Data and/or Analyzed Data and/or subject matter derived therefrom or by use
thereof by Corixa, its Affiliates, its sublicensees, or anyone claiming by,
through, or under any of them, or (b) any manufacture, possession, or use of PCR
Products or Sample RNA; PROVIDED, HOWEVER, that Corixa shall have no such
obligation to indemnify or hold harmless (x) in connection with Rosetta's
practice of the license granted to it by Corixa pursuant to Section 13.1 hereof
or (y) to the extent that the costs, expenses (including attorneys' fees),
interest, losses, obligations, liabilities, or damages referred to hereinabove
are the result of the negligence or willful misconduct of Rosetta or its
directors, officers, employees or agents. Corixa's indemnification obligations
under this Section 15 arise only if Rosetta: (i) notifies Corixa as soon as it
becomes aware of a claim; (ii) permits Corixa to control the defense and
settlement, at Corixa's expense, of any such claim; and (iii) does not settle
any such claim without the prior written approval and consent of Corixa.

     16. TERM AND TERMINATION. This Agreement may expire or be terminated, as
follows:

          16.1. COMPLETION OF WORK. This Agreement shall expire on December 31,
     2000.

          16.2. BY BREACH. In the event either party shall materially breach
     any of the terms, conditions and agreements contained in this Agreement
     to be kept, observed and performed by it, then the other party may
     terminate this Agreement, at its option and without prejudice to any of
     its other legal and equitable rights and remedies, by giving the party
     who committed the breach [***] notice in writing, particularly
     specifying the breach, unless the notified party within such [***]
     period shall have rectified the breach.

          16.3. BY ROSETTA. Rosetta may terminate this Agreement by giving
     Corixa [***] notice in writing setting forth the effective date of such
     termination.

          16.4. BY CORIXA. Corixa may terminate this Agreement by giving Rosetta
     [***] notice in writing setting forth the effective date of such
     termination.

* Material has been omitted pursuant to a request for confidential treatment,
  and such material has been filed separately with the SEC.

<PAGE>

Collaboration Agreement
Corixa/Rosetta Inpharmatics                                          Page 6 of 7

     17. SURVIVAL OF OBLIGATIONS. The rights and obligations of Sections 11, 12,
13, 14, and 15 shall survive expiration or termination of this Agreement. In the
event of early termination of this Agreement pursuant to paragraphs 16.2, 16.3,
or 16.4, Rosetta shall provide Corixa with Array Data and Analyzed Data and
Corixa shall pay Rosetta for work completed prior to termination.

     18. NO OBLIGATION TO LICENSE. Nothing contained herein shall be construed
by implication or otherwise (a) so as to obligate either of the parties to enter
into an agreement for purchase of or license to any products, technology, or
services; or (b) as the grant of any right or license by either party to any
Confidential Information or any intellectual property rights, except for the
rights provided in Section 13.

     19. GENERAL PROVISIONS. The following general provisions shall apply to
this Agreement:

          19.1. NOTICES. All notices and communications provided for hereunder
     shall be in writing and shall be mailed, faxed, or otherwise delivered to
     the business address or fax number of the respective parties
     aforementioned, or to such other address or fax number as either party
     shall designate in writing to the other.

          19.2. BENEFITS. All terms and provisions of this Agreement shall bind
     and inure to the benefit of the parties hereto, and upon their respective
     successors and assigns.

          19.3. COUNTERPARTS. This Agreement may be executed simultaneously in
     one or more counterparts, each of which shall be deemed to be original but
     all of which together shall constitute one and the same Agreement.

          19.4. CONSTRUCTION AND INTERPRETATION. This Agreement shall be
     construed and fairly interpreted in accordance with its terms, without any
     strict construction in favor of or against either party. Ambiguities shall
     not be interpreted against the drafting party. Any ambiguities in this
     Agreement shall be interpreted in accordance with the objectives stated in
     Section 1. In construing or interpreting this Agreement, the word "or"
     shall not be construed as exclusive, and the word "including" shall not be
     limiting. The use of the singular or plural form shall include the other
     form and the use of the masculine, feminine or neuter gender shall include
     the other genders. All captions and headings in this Agreement are for
     convenience only and shall not be considered as substantive parts of this
     Agreement or determinative in the interpretation of this Agreement.

          19.5. ENTIRE UNDERSTANDING. This Agreement constitutes the entire
     understanding between the parties hereto with respect to the subject matter
     hereof. No modifications, extensions or waiver of any provisions hereof or
     release of any right hereunder shall be valid, unless the same is in
     writing and is consented to by both parties hereto.

          19.6. CHOICE OF LAW. This Agreement shall be governed by the laws of
     the State of Washington, excluding choice of law principles that would
     cause the law of any other jurisdiction to apply.

          19.7. AMENDMENT. This Agreement may be amended only by a written
     agreement signed by both Parties hereto.

* Material has been omitted pursuant to a request for confidential treatment,
  and such material has been filed separately with the SEC.

<PAGE>

Collaboration Agreement
Corixa/Rosetta Inpharmatics                                          Page 7 of 7

          19.8. WAIVER. Waiver of any provision of this Agreement shall not be
     deemed a waiver of any other provision of this Agreement.

          19.10. FORCE MAJEURE. The failure of any party to perform hereunder as
     a result of governmental action, laws, orders, or regulations, or as a
     result of events, such as war, acts of public enemies, fires, floods,
     earthquakes, acts of God or any causes of like kind beyond the reasonable
     control of such party is excused for so long as such cause exists, but only
     to the extent such failure is caused by such law, order, regulation, or
     event.

          19.11. SUBSEQUENT DISCUSSIONS. The parties agree to discuss in good
     faith the use of other technologies resident at Rosetta for providing
     Corixa with expression data. Such technologies include, but are not
     limited to, ink-jet produced microarrays and a proprietary RNA
     amplification procedure.

     IN WITNESS WHEREOF, the parties hereto have caused their duly authorized
representatives to execute this Agreement as of the date and year first written
above.

CORIXA CORPORATION                     ROSETTA INPHARMATICS, INC.

BY /s/  Mark McDade                    BY /s/ John J. King, II
----------------------------------     ----------------------------------

       MARK MCDADE                               JOHN J. KING, II
----------------------------------     ----------------------------------
       PRINT NAME                                   PRINT NAME

          PRESIDENT &                       SR. VICE PRESIDENT,
  CHIEF OPERATING OFFICER                  CHIEF OPERATING OFFICER
----------------------------------     ----------------------------------
         TITLE                                       TITLE

       22 DEC '99                                  DECEMBER 21, 1999
----------------------------------     ----------------------------------
         DATE                                          DATE

* Material has been omitted pursuant to a request for confidential treatment,
  and such material has been filed separately with the SEC.

<PAGE>

                                   APPENDIX A

PCR PRODUCT PROVIDED BY CORIXA

                                     [***]

* Material has been omitted pursuant to a request for confidential treatment,
  and such material has been filed separately with the SEC.

                                        A-1<PAGE>

                                                                   Exhibit 10.34

ROSETTA

June 21, 1997

Dr. Stephen H. Friend, M.D., Ph.D.
Fred Hutchinson Cancer Research Center
110 Fairview Ave. N. MS M-477

Seattle, WA 98104

Dear Stephen:

         On behalf of Rosetta Biosystems, Inc. (the "COMPANY"), I am pleased to
offer you the position of Acting President and Chief Scientific Officer of the
Company. Speaking for myself, as well as the other members of the Company's
Board of Directors, we are all very impressed with the job you have done to get
the Company organized and financed and we look forward to your future success in
this position.

         The terms of your new position with the Company are as set forth below:

         1.       POSITION.

                  a. You will become the Acting President and Chief Scientific
Officer of the Company, working out of the Company's headquarters office in
Kirkland, Washington. As Acting President, you will have overall responsibility
for the operations of the Company. You will report to the Company's Board of
Directors. You understand that the Company intends to hire a full-time President
and/or Chief Executive Officer, and that at such time, your title and
responsibilities will be advised appropriately to, at a minimum, Senior Vice
President and Chief Scientific Officer.

                  b. You agree to the best of your ability and experience that
you will at all times loyally and conscientiously perform all of the duties and
obligations required of and from you pursuant to the express and implicit terms
hereof, and to the reasonable satisfaction of the Company. During the term of
your employment, you further agree that you will devote all of your business
time and attention to the business of the Company, the Company will be entitled
to all of the benefits and profits arising from or incident to all such work
services and advice, you will not render commercial or professional services of
any nature to any person or organization, whether or not for compensation,
without the prior written consent of the Company's Board of Directors, and you
will not directly or indirectly engage or participate in any business that is
competitive in any manner with the business of the Company. However, nothing in
this letter agreement will prevent you from -accepting speaking or presentation
engagements in exchange for honoraria or from serving on boards of charitable
organizations, or from owning no more than one percent (1%) of the outstanding
equity securities of a corporation whose stock is listed

<PAGE>

on a national stock exchange or from continuing to provide services necessary to
fulfill existing obligations to the Fred Hutchinson Cancer Research Center
(FHCRC).

         2. START DATE. Subject to fulfillment of any conditions imposed by this
letter agreement, you will commence this new position with the Company on July
1, 1997. It is understood that you are currently on a one-year leave of absence
from the Fred Hutchinson Cancer Research Center, and your continued involvement
in the Company's affairs after that time will be negotiated in good faith by
yourself and the Company.

         3. PROOF OF RIGHT TO WORK. For purposes of federal immigration law, you
will be required to provide to the Company documentary evidence of your identity
and eligibility for employment in the United States. Such documentation must be
provided to us within three (3) business days of your date of hire, or our
employment relationship with you may be terminated.

         4. COMPENSATION.

                  a. BASE SALARY. You will be paid a monthly salary of $12,500
(less applicable withholding), which is equivalent to $150,000 on an annualized
basis. Your salary will be payable in two equal payments per month pursuant to
the Company's regular payroll policy (or in the same manner as other officers of
the Company). On July 1, you will also be paid $15,000 in consideration of the
time you have spent involved in assisting with the formation and financing of
the Company.

                  b. BONUS. You will be eligible to receive an incentive in
accordance with the Company's policies in effect from time to time, as
determined by the Board of Directors.

                  c. ANNUAL REVIEW. Your base salary will be reviewed at the end
of each calendar year as part of the Company's normal salary review process.

         5. STOCK OPTIONS; FOUNDER'S STOCK.

                  a. INITIAL SHARES. In connection with the founding of the
Company, the Company sold you ____________ shares of the Company's Common Stock
("Shares").

                  b. SUBSEQUENT OPTION GRANTS. Subject to the discretion of the
Company's Board of Directors, you may be eligible to receive additional grants
of stock options or purchase rights from time to time in the future, on such
terms and subject to such conditions as the Board of Directors shall determine
as of the date of any such grant.

         6. BENEFITS.

                  a. INSURANCE BENEFITS. The Company will provide you with
standard medical and dental insurance benefits, as well as life insurance in an
amount equivalent to that which you currently receive at the Fred Hutchinson
Cancer Research Center. In addition, the Company currently indemnifies all
officers and directors to the maximum extent permitted by law, and you will be
requested to enter into the Company's standard form of Indemnification

<PAGE>

Agreement giving you such protection. Pursuant to the Indemnification Agreement,
the Company will agree to advance any expenses for which indemnification is
available to the extent allowed by applicable law.

                  b. VACATION. You will be entitled to paid vacation each year
in accordance with the Company's standard terms and conditions.

                  c. AUTO ALLOWANCE. You will also be entitled to a monthly car
allowance of $500.00 during the term of your employment.

         7. CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT AGREEMENT. Your
acceptance of this offer and commencement of employment with the Company is
contingent upon the execution, and delivery to an officer of the Company, of the
Company's Confidential Information and Invention Assignment Agreement, a copy of
which is enclosed for your review and execution (the "Confidentiality
Agreement"), prior to or on your Start Date.

         8. SEVERANCE AGREEMENT. If your employment is terminated by the Company
or its successor for any reason other than cause, as determined by the Company's
Board of Directors, you will be entitled to receive continuation of your base
salary and insurance benefits for six months following the date of termination
of your employment.

         9. CONFIDENTIALITY OF TERMS. You agree to follow the Company's strict
policy that employees must not disclose, either directly or indirectly, any
information, including any of the terms of this agreement, regarding salary,
bonuses, or stock purchase or option allocations to any person, including other
employees of the Company; provided, however, that you may discuss such terms
with members of your immediate family and any legal, tax or accounting
specialists who provide you with individual legal, tax or accounting advice.

         10. AT-WILL EMPLOYMENT. Notwithstanding the Company's obligation
described in Section 8 above, your employment with the Company will be on an "at
will" basis, meaning that either you or the Company may terminate your
employment at any time for any reason or no reason, without further obligation
or liability.

         We are all delighted to be able to extend you this offer and look
forward to working with you. To indicate your acceptance of the Company's offer,
please sign and date this letter in the space provided below and return it to
me, along with a signed and dated copy of the Confidentiality Agreement. This
letter, together with the Confidentiality Agreement, set forth the terms of your
employment with the Company and supersede any prior representations or
agreements, whether written or oral. This letter may not be modified or amended
except by a written agreement, signed by the Company and by you.

Sincerely yours,                                     Accepted and Agreed:

/s/

John J. King, II                                              /s/
                                                     ---------------------------

<PAGE>

Senior Vice President and                            Stephen H. Friend
Chief Operating Officer                              Date:    JULY 10, 1997
                                                          ----------------------

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