Document:

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                                                                    EXHIBIT 10.1

                               DNA SCIENCES, INC.

                 AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

                                DECEMBER 22, 2000

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                                TABLE OF CONTENTS

                                                                        PAGE

SECTION 1   DEFINITIONS; AMENDMENT AND WAIVER.............................2

     1.1    "Commission"..................................................2
     1.2    "Common Stock"................................................2
     1.3    "Exchange Act"................................................2
     1.4    "Holder"......................................................2
     1.5    "Initiating Holders"..........................................2
     1.6    "Preferred"...................................................2
     1.7    "Registrable Securities"......................................2
     1.8    The terms "register," "registered" and "registration".........3
     1.9    "Registration Expenses".......................................3
     1.10   "Securities"..................................................3
     1.11   "Securities Act"..............................................3
     1.12   "Selling Expenses"............................................3
     1.13   Amendment of Prior Rights Agreement;
               Waiver of Right of First Offer.............................3

SECTION 2   INFORMATION RIGHTS............................................3
     2.1    Financial Information.........................................3
     2.2    Assignment of Rights..........................................4
     2.3    Termination...................................................4

SECTION 3   RIGHTS OF FIRST OFFER ON NEW ISSUANCES........................4
     3.1    Rights of First Offer.........................................4
     3.2    Termination...................................................6

SECTION 4   REGISTRATION RIGHTS...........................................6
     4.1    Requested Registration........................................6
     4.2    Company Registration..........................................8
     4.3    Registration on Form S-3......................................9
     4.4    Limitations on Subsequent Registration Rights.................9
     4.5    Expenses of Registration.....................................10
     4.6    Registration Procedures......................................10
     4.7    Indemnification..............................................11
     4.8    Information by Holder........................................13

                                       i.

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                                TABLE OF CONTENTS
                                   (CONTINUED)

                                                                        PAGE

     4.9    Rule 144 Reporting...........................................13
     4.10   Transfer of Registration Rights..............................14
     4.11   Termination..................................................14
     4.12   Lockup Agreement.............................................14

SECTION 5   LEGENDS......................................................14
     5.1    Legends......................................................14

SECTION 6   MISCELLANEOUS................................................15
     6.1    Governing Law................................................15
     6.2    Entire Agreement; Amendment..................................15
     6.3    Aggregation..................................................15
     6.4    Notices, etc.................................................15
     6.5    Additional Purchasers........................................16
     6.6    Severability.................................................16
     6.7    Counterparts.................................................16

                                       ii.

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                               DNA SCIENCES, INC.
                 AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

     THIS AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT (this "AGREEMENT") is
made as of this 22nd day of December, 2000 by and among DNA Sciences, Inc., a
Delaware corporation (the "COMPANY"), the holders of the Company's Series A
Preferred Stock set forth on Exhibit A hereto (the "SERIES A HOLDERS"), the
holders of the Company's Series B Preferred Stock set forth on Exhibit A hereto
(the "SERIES B HOLDERS"), the holders of the Company's Series C Preferred Stock
set forth on Exhibit A hereto (the "SERIES C HOLDERS"), the holders of the
Company's Series C-1 Preferred Stock set forth on Exhibit A hereto (the "Series
C-1 Holders") and the holders of the Company's Series D Preferred Stock set
forth on Exhibit A hereto (the "SERIES D HOLDERS"). The Series A Holders, the
Series B Holders, the Series C Holders, the Series C-1 Holders and the Series D
Holders shall be referred to hereinafter individually as an "INVESTOR" and
collectively as the "INVESTORS."

                                    RECITALS

     A. The Company, the Series A Holders, the Series B Holders and certain of
the Series C Holders have previously entered into that certain Amended and
Restated Investor Rights Agreement dated as of December 15, 2000 (the "PRIOR
RIGHTS AGREEMENT"), pursuant to which the Company granted the Series A Holders,
the Series B Holders and the Series C Holders certain rights;

     B. The Company and PPGx, Inc., a Delaware corporation ("PPGx"), entered
into that certain Agreement and Plan of Merger and Reorganization, by and among
the Company, PIPO Acquisition Corp., a Delaware corporation and a wholly owned
subsidiary of the Company ("MERGER SUB"), and PPGx, dated as of December 17,
2000 (the "REORGANIZATION AGREEMENT"), pursuant to which Merger Sub was merged
with and into PPGx and PPGx became the surviving corporation and a wholly owned
subsidiary of the Company;

     C. Pursuant to the Reorganization Agreement, the Company issued two million
nine hundred and fifty-seven thousand one hundred (2,957,100) shares of its
Series D Preferred to the Series D Holders;

     D. A condition to the Series D Holders' obligations under the
Reorganization Agreement is that the Company extend to them certain information
and registration rights and other rights with respect to the Company's Series D
Preferred as set forth below, and

     E. The Series A Holders, the Series B Holders and certain of the Series C
Holders are holders of at least a majority of the Registrable Securities of the
Company (as defined in the Prior Rights Agreement), and desire to amend and
restate the Prior Rights Agreement in its entirety and accept the rights created
pursuant to this Agreement in lieu of the rights granted to them under the Prior
Rights Agreement.

     NOW, THEREFORE, in consideration of the mutual promises, representations,
warranties, covenants and conditions set forth in this Agreement and in the
Reorganization Agreement, the parties mutually agree as follows:

                                       1.
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                                    SECTION 1

                        DEFINITIONS; AMENDMENT AND WAIVER

     As used in this Agreement, the following terms shall have the following
respective meanings:

     1.1 "COMMISSION" shall mean the Securities and Exchange Commission of the
United States or any other U.S. federal agency at the time administering the
Securities Act.

     1.2 "COMMON STOCK" shall mean shares of the Company's Common Stock, par
value $.001 per share.

     1.3 "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended.

     1.4 "HOLDER" shall mean each of the Investors (and their transferees as
permitted by Section 4.10) holding Registrable Securities or securities
convertible into Registrable Securities.

     1.5 "INITIATING HOLDERS" shall mean Holders who in the aggregate hold
greater than fifty percent (50%) of the Preferred.

     1.6 "PREFERRED" shall mean shares of the Company's Series A preferred
stock, par value $.001 per share (the "SERIES A PREFERRED"), the Company's
Series B preferred stock, par value $.001 per share (the "SERIES B Preferred"),
including shares of Series B PREFERRED issuable upon exercise of: (i) that
certain warrant entered into by and between the Company and Cooley Godward LLP
on March 16, 2000; (ii) that certain warrant entered into by and between the
Company and GATX Ventures, Inc. on October 6, 2000 (the "GATX WARRANT"); and
(iii) that certain warrant entered into by and between the Company and TBCC
Funding Trust II on October 6, 2000 (the "TBCC WARRANT"), the Company's Series C
preferred stock, par value $.001 per share (the "SERIES C PREFERRED"), the
Company's Series C-1 preferred stock, par value $.001 per share (the "SERIES C-1
PREFERRED") and the Company's Series D preferred stock, par value $.001 per
share (the "SERIES D PREFERRED").

     1.7 "REGISTRABLE SECURITIES" shall mean any shares of Common Stock issued
or issuable (i) on conversion of the Preferred, (ii) upon exercise by the
Investors of their preemptive rights as provided in Section 3 of this Agreement,
(iii) upon exercise by the Investors of their right of first offer rights
pursuant to the Amended and Restated Right of First Refusal and Co-Sale
Agreement of even date herewith, and (iv) any shares of Common Stock issued or
issuable in respect of such Common Stock upon any stock

                                       2.
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split, stock dividend, recapitalization or similar event. Shares of Common Stock
or other securities shall only be treated as Registrable Securities if they have
not been sold to or through a broker or dealer or underwriter in a public
distribution or a public securities transaction. Solely for the purposes of
Section 4.2 of this Agreement, the Company shall treat the Warrant Shares, as
defined in the GATX Warrant and the TBCC Warrant, as Registrable Securities.

     1.8 THE TERMS "REGISTER," "REGISTERED" AND "REGISTRATION" refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement.

     1.9 "REGISTRATION EXPENSES" shall mean all expenses, except as otherwise
stated below, incurred by the Company in complying with Sections 4.1, 4.2, and
4.3 hereof, including, without limitation, all registration, qualification and
filing fees, printing expenses, escrow fees, fees and disbursements of counsel
for the Company (and fees and disbursements of one special counsel for Holders,
if any), blue sky fees and expenses and the expense of any special audits
incident to or required by any such registration (but excluding the compensation
of regular employees of the Company, which shall be paid in any event by the
Company).

     1.10 "SECURITIES" shall mean Common Stock or Preferred.

     1.11 "SECURITIES ACT" shall mean the Securities Act of 1933, as amended, or
any similar United States federal statute and the rules and regulations of the
Commission thereunder, all as the same, which shall be in effect at the time.

     1.12 "SELLING EXPENSES" shall mean all underwriting discounts, selling
commissions and stock transfer taxes applicable to the securities registered by
the Holders.

     1.13 AMENDMENT OF PRIOR RIGHTS AGREEMENT; WAIVER OF RIGHT OF FIRST OFFER.
Effective and contingent upon execution of this Agreement by the Company and the
holders of a majority of the Registrable Securities, as that term is defined in
the Prior Rights Agreement, and upon closing of the transactions contemplated by
the Reorganization Agreement, the Prior Rights Agreement is hereby amended and
restated in its entirety to read as set forth in this Agreement, and the Company
and the Investors hereby agree to be bound by the provisions hereof as the sole
agreement of the Company and the Investors with respect to registration rights
of the Company's securities and certain other rights, as set forth herein. The
Series A Holders, the Series B Holders and the Series C Holders hereby waive the
right of first offer, including the notice requirements, set forth in the Prior
Rights Agreement with respect to the issuance of Series D Preferred, except to
the extent that a Series A Holder, a Series B Holder or a Series C Holder is
receiving Series D Preferred, as set forth in the Reorganization Agreement.

                                       3.
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                                   SECTION 2

                               INFORMATION RIGHTS

     2.1 FINANCIAL INFORMATION. The Company will provide each Investor the
following reports for so long as the Investor is a holder of a minimum of ten
thousand (10,000) shares of Registrable Securities (as adjusted for stock splits
and combinations):

          (a) As soon as practicable after the end of each fiscal year, and in
any event within one hundred twenty (120) days thereafter, consolidated balance
sheets of the Company and its subsidiaries, if any, as of the end of such fiscal
year, and consolidated statements of income, stockholders' equity and cash flows
of the Company and its subsidiaries, if any, for such year, prepared in
accordance with generally accepted accounting principles and setting forth in
each case in comparative form the figures for the previous fiscal year, and all
in reasonable detail and audited by independent public accountants of national
standing selected by the Company.

          (b) As soon as practicable after the end of each month and fiscal
quarter, and in any event within thirty (30) days and forty-five (45) days,
respectively, thereafter, a consolidated balance sheet of the Company and its
subsidiaries, if any, as of the end of each such period, consolidated statements
of income, consolidated statements of changes in financial condition, a
consolidated statement of cash flow of the Company and its subsidiaries and a
statement of stockholders' equity for such period and for the current fiscal
year to date, and setting forth in each case in comparative form the figures for
corresponding periods in the previous fiscal year, and setting forth in
comparative form the budgeted figures, prepared in accordance with generally
accepted accounting principles (other than for accompanying notes), subject to
changes resulting from year-end audit adjustments, all in reasonable detail and
signed by the principal financial or accounting officer of the Company.

          (c) As soon as practicable after its adoption by the Board of
Directors of the Company (the "BOARD OF DIRECTORS"), a copy of the annual
operating plan of the Company for the next fiscal year and an annual budget for
the next fiscal year of the Company containing profit and loss projections, cash
flow projections and capital expenditures, all on a monthly basis.

     2.2 ASSIGNMENT OF RIGHTS. The rights granted pursuant to Section 2.1 may be
assigned or otherwise conveyed by an Investor to a constituent partner or an
affiliate of the Investor or to a transferee who acquires (i) at least ten
thousand (10,000) shares of Preferred (as adjusted for stock splits and
combinations), or (ii) all shares of Preferred held by such transferor.
Notwithstanding the foregoing, the rights granted pursuant to Section 2.1 may
not be assigned or otherwise conveyed to a competitor of the Company, as
reasonably determined by the Board of Directors excluding any director with an
interest in such transferee. The Investor shall provide the Company with written
notice of any assignment or conveyance of the rights granted pursuant to Section
2.1.

     2.3 TERMINATION. The provisions of Sections 2 and 3, including information
rights, rights of first offer and miscellaneous covenants, shall terminate upon
the closing of a firmly underwritten public offering pursuant to an effective
registration statement under the Securities Act covering any securities of the
Company.

                                       4.
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                                   SECTION 3

                     RIGHTS OF FIRST OFFER ON NEW ISSUANCES

     3.1 RIGHTS OF FIRST OFFER. The Company hereby grants to each Investor the
right of first offer to purchase such Investor's pro rata portion of New
Securities (as defined in Section 3.1(a)) that the Company may, from time to
time, propose to sell and issue. Such Investor's pro rata portion, for purposes
of this right of first offer, is the ratio of the number of shares of Common
Stock held by such Investor (including Common Stock issuable upon conversion of
securities convertible into Common Stock held by such Investor, including the
Preferred) bears to the total number of shares of Common Stock outstanding at
the time of issuance of such New Securities (including Common Stock issuable
upon conversion of all outstanding securities convertible into Common Stock,
including the Preferred). This right of first offer shall be subject to the
following provisions:

          (a) "NEW SECURITIES" shall mean any Common Stock, whether now
authorized or not, any rights, options, or warrants to purchase said Common
Stock and securities of any type whatsoever that are, or may become, convertible
into Common Stock; PROVIDED, HOWEVER, that New Securities shall not include (i)
shares of Common Stock issued upon conversion of the Preferred; (ii) securities
issued pursuant to the acquisition of another corporation by the Company by
merger, purchase of substantially all of the assets or other reorganization;
(iii) up to four million five hundred thousand (4,500,000) shares of Common
Stock (or related options) issued to employees, officers, directors, consultants
or other persons performing services for the Company pursuant to any stock
offering, plan or other arrangement approved by the Board of Directors; (iv)
securities issued to financial institutions in connection with the extension of
credit to the Company or in connection with the lease of equipment and in both
cases for other than equity financing purposes; (v) securities issued to any
third party in connection with participation in a strategic bona fide alliance
or other corporate partner transaction with the Company approved by the Board of
Directors for purposes which are not primarily equity financing; (vi) securities
issued pursuant to the acquisition or license of technology, software or other
intellectual property rights; (vii) shares of Common Stock issued in connection
with any stock split, stock dividend or recapitalization by the Company; or
(viii) shares of Series D Preferred issued pursuant to the Reorganization
Agreement.

          (b) In the event that the Company proposes to issue New Securities, it
shall give each Investor at least thirty (30) days prior written notice of its
intention, describing the type of New Securities, the price and the general
terms upon which the Company proposes to issue the same. Each Investor shall
have twenty (20) days from the date of mailing of any such notice to agree to
purchase its pro rata share of such New Securities for the price and upon the
general terms specified in the notice, by giving written notice to the Company
and stating therein the quantity of New Securities to be purchased.

          (c) In the event that an Investor fails to exercise in full its right
of first refusal within said twenty (20) day period, the Company shall have
seventy-five (75) days thereafter to sell (or enter into an agreement pursuant
to which the sale of New Securities covered thereby shall be closed, if at all,
within thirty (30) days from the date of said agreement) the New Securities
respecting which the Investor's rights were not exercised, at a price and upon
general terms no more favorable to the Investors thereof than specified in the
Company's notice. In the event the Company has not sold the New Securities
within said forty-five (45) day period (or sold and issued New Securities in
accordance with the foregoing within thirty (30) days from the date of said
agreement), the Company shall not thereafter issue or sell any New Securities,
without first offering such securities to the Investors in the manner provided
above.

          (d) The Investor's failure to exercise this right of first refusal on
any issuance of New Securities shall not adversely affect the Investor's right
of first refusal to purchase subsequent issuances of New Securities.

          (e) The right of first refusal set forth in this Section 3.1 is
nonassignable, except to another Investor or another entity under common control
with an Investor.

     3.2 TERMINATION. The provisions of this Section 3 shall terminate in
accordance with the provisions of Section 2.3.

                                       5.
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                                   SECTION 4

                               REGISTRATION RIGHTS

     4.1 REQUESTED REGISTRATION.

          (a) Request for Registration. In case the Company shall receive from
Initiating Holders a written request that the Company effect any registration,
qualification or compliance with respect to not less than forty percent (40%) of
the Registrable Securities (or a lesser percentage of the Registrable Securities
if the reasonably anticipated aggregate price to the public thereof would exceed
Five Million dollars ($5,000,000)) the Company will:

               (i) promptly give written notice of the proposed registration,
qualification or compliance to all other Holders; and

               (ii) as soon as practicable and in any event within ninety (90)
days of the receipt of such request, use its best efforts to effect such
registration, qualification or compliance (including, without limitation,
appropriate qualification under applicable blue sky or other state securities
laws and appropriate compliance with applicable regulations issued under the
Securities Act and any other governmental requirements or regulations) as may be
so requested and as would permit or facilitate the sale and distribution of all
or such portion of such Registrable Securities as are specified in such request,
together with all or such portion of the

                                       6.
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Registrable Securities of any Holder or Holders joining in such request as are
specified in a written request received by the Company within twenty (20) days
after receipt of such written notice from the Company.

                    PROVIDED, HOWEVER, that the Company shall not be obligated
to take any action to effect any such registration, qualification or compliance
pursuant to this Section 4.1:

                    (A) in any particular jurisdiction in which the Company
would be required to execute a general consent to service of process in
effecting such registration, qualification or compliance unless the Company is
already subject to service in such jurisdiction and except as may be required by
the Securities Act;

                    (B) prior to the earlier to occur of (i) six (6) months
after the effective date of the Company's first registered public offering of
its stock, or (ii) December 31, 2002, provided that the Company is actually
employing in good faith all reasonable efforts to cause such registration
statement to become effective;

                    (C) during the period starting with the date sixty (60) days
prior to the Company's estimated date of filing of, and ending on the date six
(6) months immediately following the effective date of, any registration
statement pertaining to securities of the Company sold by the Company (other
than a registration of securities in a Rule 145 transaction or with respect to
an employee benefit plan), provided that the Company is actively employing in
good faith all reasonable efforts to cause such registration statement to become
effective;

                    (D) after the Company has effected two (2) registrations
pursuant to this paragraph 4.1, and such registrations have been declared or
ordered effective, provided that all Registrable Securities requested to be
included in such registrations were in fact included in the registrations;
PROVIDED, HOWEVER, that the Company, upon the approval, by vote or written
consent, of the holders of at least fifty percent (50%) of the Registrable
Securities held by the Series C Holders and the Series D Holders, voting
together as a separate class, shall effect one (1) additional registration only
with respect to such Registrable Securities held by the Series C Holders and the
Series D Holders, pursuant to this Section 4.1(a)(ii); or

                    (E) if the Company shall furnish to such Holders a
certificate signed by the President of the Company stating that in the good
faith judgment of the Board of Directors it would be seriously detrimental to
the Company or its Investors for a registration statement to be filed in the
near future, then the Company's obligation to use its best efforts to register,
qualify or comply under this Section 4 shall be deferred for a period not to
exceed ninety (90) days from the date of receipt of written request from the
Initiating Holders, PROVIDED, HOWEVER, that the Company shall not utilize this
right more than once in any twelve (12) month period.

                    Subject to the foregoing clauses (A) through (E), the
Company shall file a registration statement covering the Registrable Securities
so requested to be registered as soon as practicable after receipt of the
request or requests of the Initiating Holders.

                                       7.
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          (b) UNDERWRITING. In the event that a registration pursuant to this
Section 4.1 is for a registered public offering involving an underwriting, the
Initiating Holders will so advise the Company as part of the written request
given by such Initiating Holders pursuant to Section 4.1(a), and the Company
shall in turn advise the Holders as part of the notice given pursuant to Section
4.1(a)(i). In such event, the right of any Holder to registration pursuant to
this Section 4.1 shall be conditioned upon such Holder's participation in the
underwriting arrangements required by this Section 4.1, and the inclusion of
such Holder's Registrable Securities in the underwriting to the extent requested
shall be limited to the extent provided herein.

          The Company shall (together with all Holders proposing to distribute
their securities through such underwriting) enter into an underwriting agreement
in customary form with the managing underwriter selected for such underwriting
by the Company, but subject to the reasonable approval of a majority in interest
of the Initiating Holders. Notwithstanding any other provision of this Section
4.1, if the managing underwriter advises the Initiating Holders in writing that
marketing factors require a limitation of the number of shares to be
underwritten, then the Company shall so advise all Holders, and the number of
shares that may be included in the registration and underwriting shall be
allocated first among all Holders in proportion, as nearly as practicable, to
the respective amounts of Registrable Securities held by such Holders at the
time of filing the registration statement; PROVIDED, HOWEVER, that no stock
other than capital stock owned by the Company is included in such registration
statement. No Registrable Securities or other securities excluded from the
underwriting by reason of the underwriter's marketing limitation shall be
included in such registration. To facilitate the allocation of shares in
accordance with the above provisions, the Company or the underwriters may round
the number of shares allocated to any holder to the nearest one hundred (100)
shares.

          If any Holder of Registrable Securities disapproves of the terms of
the underwriting, such person may elect to withdraw therefrom by written notice
to the Company, the managing underwriter and the Initiating Holders. The
Registrable Securities and/or other securities so withdrawn shall also be
withdrawn from registration.

     4.2 COMPANY REGISTRATION.

          (a) NOTICE OF REGISTRATION. If at any time, or from time to time, the
Company shall determine to register any of its securities, either for its own
account or the account of a security holder or holders, other than (i) a
registration relating solely to employee benefit plans, or (ii) a registration
relating solely to a Commission Rule 145 transaction, the Company will:

               (i) promptly give to each Holder written notice thereof; and

               (ii) include in such registration (and any related qualification
under blue sky laws or other compliance), and in any underwriting involved
therein, all the Registrable Securities specified in a written request or
requests made, within twenty (20) days after receipt of such written notice from
the Company, by any Holder.

          (b) UNDERWRITING. If the registration of which the Company gives
notice is for a registered public offering involving an underwriting, the
Company shall so advise the Holders as a part of the written notice given
pursuant to Section 4.2(a)(i). In such event the right

                                       8.
<PAGE>

of any Holder to registration pursuant to this Section 4.2 shall be conditioned
upon such Holder's participation in such underwriting and the inclusion of
Registrable Securities in the underwriting to the extent provided herein. All
Holders proposing to distribute their securities through such underwriting
shall, together with the Company, enter into an underwriting agreement in
customary form with the managing underwriter selected for such underwriting by
the Company. Notwithstanding any other provision of this Section 4.2, if the
managing underwriter determines that marketing factors require a limitation of
the number of shares to be underwritten, the managing underwriter may limit the
number of shares of Registrable Securities to be included in such registration
without requiring any limitation in the number of shares to be registered on
behalf of the Company, provided that if such underwriting is other than an
initial public offering, (i) the number of shares of Registrable Securities to
be included in such registration shall not be limited to less than thirty
percent (30%) of the total number of shares to be included in such registration,
and (ii) no shares owned by a person or entity who is not a party to this
Agreement, or entitled to the benefits hereof pursuant to Section 4.10, shall be
included in such registration. The Company shall so advise all Holders and the
number of shares that may be included in the registration and underwriting by
all Holders shall be allocated among the Holders of Registrable Securities in
proportion to the respective amounts of Registrable Securities held by such
Holders at the time of filing of the registration statement. To facilitate the
allocation of shares in accordance with the above provisions, the Company may
round the number of shares allocated to any Holder to the nearest one hundred
(100) shares. If any Holder disapproves of the terms of any such underwriting,
such holder may elect to withdraw therefrom by written notice to the Company and
the managing underwriter. Any securities excluded or withdrawn from such
underwriting shall be withdrawn from such registration.

          (c) RIGHT TO TERMINATE REGISTRATION. The Company shall have the right
to terminate or withdraw any registration initiated by it under this Section 4.2
prior to the effectiveness of such registration whether or not any Holder has
elected to include Registrable Securities in such registration.

     4.3 REGISTRATION ON FORM S-3.

          (a) REQUEST FOR REGISTRATION. If any Holder or Holders request that
the Company file a registration statement on Form S-3 (or any successor form to
Form S-3) for a public offering of shares of the Registrable Securities the
reasonably anticipated aggregate price to the public of which would exceed Three
Million dollars ($3,000,000), and the Company is a registrant entitled to use
Form S-3 to register the Registrable Securities for such an offering, the
Company shall use its best efforts to cause such Registrable Securities to be
registered for the offering on such form and to cause such Registrable
Securities to be qualified in such jurisdictions as the Holder or Holders may
reasonably request. The substantive provisions of Section 4.1(a)(i) and (ii)
(not including the proviso immediately following paragraph (ii) and of Section
4.1(b) shall be applicable to each registration initiated under this Section
4.3.

          (b) LIMITATIONS. Notwithstanding the foregoing, the Company shall not
be obligated to take any action pursuant to this Section 4.3: (i) in any
particular jurisdiction in which the Company would be required to execute a
general consent to service of process in effecting such registration,
qualification or compliance unless the Company is already subject to service in
such jurisdiction and except as may be required by the Securities Act; (ii)
during the

                                       9.
<PAGE>

period starting with the date sixty (60) days prior to the Company's estimated
date of filing of, and ending on the date six (6) months immediately following,
the effective date of any registration statement pertaining to securities of the
Company (other than a registration of securities in a Rule 145 transaction or
with respect to an employee benefit plan), provided that the Company is actively
employing in good faith all reasonable efforts to cause such registration
statement to become effective; or (iii) if the Company shall furnish to such
Holder a certificate signed by the President of the Company stating that in the
good faith judgment of the Board of Directors it would be seriously detrimental
to the Company or the Investors as a whole for registration statements to be
filed in the near future, then the Company's obligation to use its best efforts
to file a registration statement shall be deferred for a period not to exceed
ninety (90) days from the receipt of the request to file such registration by
such Holder, PROVIDED, HOWEVER, that the Company shall not utilize this right
more than once in any twelve (12) month period.

     4.4 LIMITATIONS ON SUBSEQUENT REGISTRATION RIGHTS. From and after the date
hereof, the Company will not, without the prior written consent of the holders
of a majority of the voting power of the then outstanding Registrable
Securities, enter into any agreement with any holder or prospective holder of
any securities of the Company which allows such holder or prospective holder of
any securities of the Company to include such securities in any registration
filed under Sections 4.1, 4.2 or 4.3 hereof, unless, under the terms of such
agreement, such holder or prospective holder may include such securities in any
such registration only to the extent that the inclusion of such securities will
not diminish the amount of Registrable Securities which are included. However,
the Company may by agreement grant such holder or prospective holder a
registration right analogous to that set forth in Section 4.1 provided that (i)
such holder or prospective holder may not demand a registration analogous to
that set forth in Section 4.1 at any time earlier than the Holders first have
such right or within one hundred twenty (120) days of the effective date of any
registration effected pursuant to Section 4.1, and (ii) that the Registrable
Securities may be included in any such registration demanded by such holders to
the extent such inclusion will not diminish the amount of securities of such
holders which are included.

     4.5 EXPENSES OF REGISTRATION.

          (a) REGISTRATION EXPENSES. The Company shall bear all Registration
Expenses incurred in connection with all registrations pursuant to Section 4.1,
Section 4.2 and Section 4.3 hereof, including the expense of one special counsel
to the selling Holders, not to exceed Twenty-Five Thousand dollars ($25,000).

          (b) SELLING EXPENSES. All Selling Expenses relating to securities
registered on behalf of the Holders shall be borne by the Holders pro rata on
the basis of the number of shares so registered.

     4.6 REGISTRATION PROCEDURES. In the case of each registration,
qualification or compliance effected by the Company pursuant to this Agreement,
the Company will:

          (a) keep each Holder advised in writing as to the initiation of each
registration, qualification and compliance and as to the completion thereof;

                                      10.
<PAGE>

         (b) as soon as practicable, prepare and file with the Commission a
registration statement with respect to such securities and use its best efforts
to cause such registration statement to become and remain effective until the
earlier of (i) one hundred twenty (120) days, or (ii) the distribution described
in the Registration Statement has been completed; PROVIDED, HOWEVER, that (i)
such one hundred twenty (120) day period shall be extended for a period of time
equal to the period the Holder refrains from selling any securities included in
such registration at the request of an underwriter of Common Stock (or other
securities) of the Company, and (ii) in the case of any registration of
Registrable Securities on Form S-3 which are intended to be offered on a
continuous or delayed basis, such one hundred twenty (120) day period shall be
extended, if necessary, to keep the registration statement effective until all
such Registrable Securities are sold, provided that Rule 415, or any successor
rule under the Securities Act, permits an offering on a continuous or delayed
basis, and, provided further, that applicable rules under the Securities Act
governing the obligation to file a post-effective amendment permit, in lieu of
filing a post-effective amendment, which (I) includes any prospectus required by
Section 10(a)(3) of the Securities Act, or (II) reflects facts or events
representing a material or fundamental change in the information set forth in
the registration statement, the incorporation by reference of information
required to be included in (I) and (II) above to be contained in periodic
reports filed pursuant to Section 13 or 15(d) of the Exchange Act in the
registration statement;

         (c) furnish to the Holders participating in such registration and to
the underwriters of the securities being registered such reasonable number of
copies of the registration statement, preliminary prospectus, final prospectus
and such other documents as such underwriters may reasonably request in order to
facilitate the public offering of such securities;

         (d) prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in connection
with such registration statement as may be necessary to comply with the
provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement;

         (e) in the event of an underwritten public offering, enter into and
perform its obligations under an underwriting agreement, in usual and customary
form, with the managing underwriter of such offering. Each Holder participating
in such underwriting shall also enter into and perform its obligations under
such an agreement;

         (f) notify each Holder of Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event
as a result of which the prospectus included in such registration statement, as
then in effect, includes an untrue statement of material fact or omits to state
a material fact required to be stated therein or necessary to make the
statements made therein not misleading in the light of the circumstances then
existing; and

         (g) provide a transfer agent and registrar for all Registrable
Securities registered pursuant hereunder and a CUSIP number for all such
Registrable Securities, in each case not later than the effective date of such
registration.

                                       11
<PAGE>

     4.7 INDEMNIFICATION.

         (a) BY COMPANY. The Company will indemnify each Holder, each of its
officers and directors and partners and each person controlling such Holder
within the meaning of Section 15 of the Securities Act, with respect to which
registration, qualification or compliance has been effected pursuant to this
Agreement, each underwriter, if any, and each person who controls any
underwriter within the meaning of Section 15 of the Securities Act and each
Investor and its officers, directors and partners and each person controlling
such Investor within the meaning of Section 15 of the Securities Act, against
all expenses, claims, losses, damages or liabilities, joint or several, (or
actions in respect thereof), including any of the foregoing incurred in
settlement of any litigation, commenced or threatened, arising out of or based
on any untrue statement (or alleged untrue statement) of a material fact
contained in any registration statement, prospectus, offering circular or other
document, or any amendment or supplement thereto, incident to any such
registration, qualification or compliance or based on any omission (or alleged
omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading or any violation by the Company of the Securities
Act, the Exchange Act or any state or federal securities law, or any rule or
regulation promulgated under such Acts or law applicable to the Company in
connection with any such registration, qualification or compliance, and the
Company will reimburse each such Holder, each of its officers, directors and
partners, and each person controlling such Holder, each such underwriter and
each person who controls any such underwriter, each Investor, each of its
officers, directors and partners and each person controlling such Investor, for
any legal and any other expenses reasonably incurred in connection with
investigating, preparing or defending any such claim, loss, damage, liability or
action, provided that the Company will not be liable in any such case to the
extent that any such claim, loss, damage, liability or expense arises out of or
is based on any untrue statement or omission or alleged untrue statement or
omission, made in reliance upon and in conformity with written information
furnished to the Company by an instrument duly executed by such Holder,
controlling person, underwriter or Investor and stated to be specifically for
use therein. If the Holders and Investors are represented by counsel other than
counsel for the Company, the Company will not be obligated under this Section
4.7(a) to reimburse legal fees and expenses of more than one separate counsel
for all Holders and Investors.

         (b) BY HOLDERS. Each Holder will, if Registrable Securities held by
such Holder are included in the securities as to which such registration,
qualification or compliance is being effected, indemnify the Company, each of
its directors, each of its officers, each underwriter, if any, of the Company's
securities covered by such a registration statement, each person who controls
the Company or such underwriter within the meaning of Section 15 of the
Securities Act, and each other such Holder, each of its officers and directors
and each person controlling such Holder within the meaning of Section 15 of the
Securities Act, against all claims, losses, damages and liabilities (or actions
in respect thereof) arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in any such registration
statement, prospectus, offering circular or other document, or any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, and will reimburse
the Company, such Holders, such directors, officers, persons, underwriters or
control persons for any legal or any other expenses reasonably incurred in
connection with investigating or defending any such claim, loss, damage,

                                       12
<PAGE>

liability or action, in each case to the extent, but only to the extent, that
such untrue statement (or alleged untrue statement) or omission (or alleged
omission) is made in such registration statement, prospectus, offering circular
or other document in reliance upon and in conformity with written information
furnished to the Company by an instrument duly executed by such Holder and
stated to be specifically for use therein. Notwithstanding the foregoing, the
liability of each Holder under this subsection (b) shall be limited in an amount
equal to the public offering price of the shares sold by such Holder, unless
such liability arises out of or is based on willful misconduct by such Holder.

         (c) PROCEDURES. Each party entitled to indemnification under this
Section 4.7 (the "INDEMNIFIED PARTY") shall give notice to the party required to
provide indemnification (the "INDEMNIFYING PARTY") promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be
sought, and shall permit the Indemnifying Party to assume the defense of any
such claim or any litigation resulting therefrom, provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or litigation,
shall be approved by the Indemnified Party (whose approval shall not
unreasonably be withheld), and the Indemnified Party may participate in such
defense at such party's expense, and provided further that the failure of any
Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Agreement unless the failure to
give such notice is materially prejudicial to an Indemnifying Party's ability to
defend such action and provided further, that the Indemnifying Party shall not
assume the defense for matters as to which there is a conflict of interest or
separate and different defenses. No Indemnifying Party, in the defense of any
such claim or litigation, shall, except with the consent of each Indemnified
Party, consent to entry of any judgment or enter into any settlement which does
not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party of a release from all liability in respect
to such claim or litigation.

         (d) CONTRIBUTION. If the indemnification provided for in this Section
4.7 is held by a court of competent jurisdiction to be unavailable to an
Indemnified Party with respect to any loss, liability, claim, damage or expense
referred to therein, then the indemnifying party, in lieu of indemnifying such
indemnified party hereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such loss, liability, claim, damage or
expense in such proportion as is appropriate to reflect the relative fault of
the indemnifying party on the one hand and of the indemnified party on the other
in connection with the statements or omissions that resulted in such loss,
liability, claim, damage or expense as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

         (e) CONTROLLING AGREEMENT. Notwithstanding the foregoing, to the extent
that the provisions on indemnification and contribution contained in the
underwriting agreement entered into in connection with the underwritten public
offering are in conflict with the foregoing provisions of this Section 4.7, the
provisions in the underwriting agreement shall control.

                                       13
<PAGE>

     4.8 INFORMATION BY HOLDER. The Holder or Holders of Registrable Securities
included in any registration shall furnish to the Company such information
regarding such Holder or Holders, the Registrable Securities held by them and
the distribution proposed by them as the Company may request in writing and only
as shall be necessary to enable the Company to comply with the provisions hereof
in connection with any registration, qualification or compliance referred to in
this Agreement.

     4.9 RULE 144 REPORTING. With a view to making available the benefits of
certain rules and regulations of the Commission which may at any time permit the
sale of the Registrable Securities to the public without registration, after
such time as a public market exists for the Common Stock, the Company agrees to
use its best efforts to:

         (a) Make and keep public information available, as those terms are
understood and defined in Rule 144 under the Securities Act, at all times after
the effective date that the Company becomes subject to the reporting
requirements of the Securities Act or the Exchange Act;

         (b) Use its best efforts to file with the Commission in a timely manner
all reports and other documents required of the Company under the Securities Act
and the Exchange Act (at any time after it has become subject to such reporting
requirements);

         (c) Furnish to any Holder forthwith upon request a written statement by
the Company as to its compliance with the reporting requirements of Rule 144 (at
any time after ninety (90) days from the effective date of the first
registration statement filed by the Company for an offering of its securities to
the general public), and of the Securities Act and the Exchange Act (at any time
after it has become subject to such reporting requirements), a copy of the most
recent annual or quarterly report of the Company, and such other reports and
documents of the Company and other information in the possession of or
reasonably obtainable by the Company as such Holder may reasonably request in
availing itself of any rule or regulation of the Commission allowing such Holder
to sell any such securities without registration.

     4.10 TRANSFER OF REGISTRATION RIGHTS. The rights to cause the Company to
register securities granted Holders under Sections 4.1, 4.2 and 4.3 may be
assigned in connection with any transfer or assignment by a Holder of
Registrable Securities provided that: (i) such transfer may otherwise be
effected in accordance with applicable securities laws, (ii) such transfer is
effected in compliance with the restrictions on transfer contained in this
Agreement and in any other agreement between the Company and the Holder, and
(iii) such assignee or transferee is a constituent partner of an Investor or
purchases (i) at least fifty thousand (50,000) shares of Preferred or (ii) all
shares of Preferred held by an Investor if transferred to a single entity;
PROVIDED, HOWEVER, the transferee shall agree in writing to be bound by the
terms of this Agreement. No transfer or assignment will divest a Holder or any
subsequent owner of such rights and powers unless all Registrable Shares are
transferred or assigned.

     4.11 TERMINATION. The rights granted pursuant to this Section 4 shall
terminate as to each Holder following the effective date of the Company's

                                       14
<PAGE>

first registered public offering of its stock and at such time such Holder may
sell under Rule 144, or a successor rule, in a three-month period all
Registrable Securities then held by such Holder, regardless of whether such
Holder is an affiliate of the Company.

     4.12 LOCKUP AGREEMENT. Each Holder agrees that, if, in connection with the
Company's initial public offering of the Company's securities, the Company or
the underwriters managing the offering so request, the Holder shall not sell,
make any short sale of, loan, grant any option for the purchase of or otherwise
dispose of any Registrable Securities (other than those included in the
registration) without the prior written consent of the Company or such
underwriters, as the case may be, for such period of time (not to exceed one
hundred eighty (180) days) from the effective date of such registration as may
be requested by the Company or the underwriters; provided that each officer and
director of the Company who owns stock of the Company also agrees to such
restrictions. This Section 4.12 shall be binding on all transferees or assignees
of Registrable Securities, whether or not such persons are entitled to
registration rights pursuant to Section 4.10.

                                       15
<PAGE>

                                    SECTION 5

                                     LEGENDS

     5.1 LEGENDS. Each Investor understands that the share certificates
evidencing any Registrable Securities shall be endorsed with the following
legends (in addition to any legends required under applicable state securities
laws):

         (a) "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED."

         (b) "THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCKUP
NOT TO EXCEED 180 DAYS FOLLOWING THE COMPANY'S INITIAL PUBLIC OFFERING, A  COPY
OF WHICH LOCKUP IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY."

         (c) Any legend required to be placed thereon by the California
Commissioner of Corporations or any other applicable state securities laws.

                                       16
<PAGE>

                                   SECTION 6

                                  MISCELLANEOUS

     6.1 GOVERNING LAW. This Agreement shall be governed in all respects by the
laws of the State of Delaware, as such laws are applied to agreements between
Delaware residents entered into and performed entirely in Delaware.

     6.2 ENTIRE AGREEMENT; AMENDMENT. This Agreement constitutes the full and
entire understanding and agreement between the parties with regard to the
subjects hereof and thereof. This Agreement or any term hereof may be amended,
waived, discharged or terminated by a written instrument signed by the Company
and the Holders or transferees of such Holders holding more than fifty percent
(50%) of the Registrable Securities.

     6.3 AGGREGATION. For the purposes of determining the number of shares of
Registrable Securities held by an Investor, Holder, transferee or assignee, the
holdings of affiliates shall be aggregated together and with the holdings of
such Investor, Holder, transferee or assignee, respectively; provided, that all
assignees and transferees who would not qualify individually for assignment of
registration rights shall have a single attorney-in-fact for the purpose of
exercising any rights, receiving notices or taking any action under Sections 2
and 4.

     6.4 NOTICES, ETC. All notices and other communications required or
permitted hereunder shall be deemed given if in writing and mailed by registered
or certified mail, postage prepaid, or otherwise delivered by hand or by
messenger, addressed (a) if to a Holder, at such Holder's address as set forth
on Exhibit A to this Agreement, or at such other address as such Holder shall
have furnished to the Company in writing, or (b) if to any other holder of any
Registrable Securities, at such address as such holder shall have furnished the
Company in writing, or, until any such holder so furnishes an address to the
Company, then to and at the address of the last holder of such Registrable
Securities who has so furnished an address to the Company, or (c) if to the
Company, at the address of its principal offices and addressed to the attention
of the Corporate Secretary and with a copy to Cooley Godward LLP, 3000 El Camino
Real, 5 Palo Alto Square, Palo Alto, California 94306, Attention: Robert L.
Jones, or at such other address as the Company shall have furnished to the
Investors.

     6.5 ADDITIONAL PURCHASERS. Notwithstanding anything to the contrary
contained herein, if the Company shall issue additional shares of its Preferred
Stock, any purchaser of such shares of Preferred Stock may become a party to
this Agreement by executing and delivering an additional counterpart signature
page to this Agreement and shall be deemed an "Investor" hereunder.

     6.6 SEVERABILITY. In the event that any provision of this Agreement becomes
or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, this Agreement shall continue in full force and effect without said
provision; provided that no such severability shall be effective if it
materially changes the economic benefit of this Agreement to any party.

     6.7 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be enforceable against the parties actually
executing such counterparts, and all of which together shall constitute one
instrument.

                                       17
<PAGE>

The foregoing Agreement is hereby executed as of the date first above written.

THE "COMPANY"                         DNA SCIENCES, INC.
                                      a Delaware corporation

                                      By:
                                         ---------------------------
                                         Hugh Y. Rienhoff, Jr.
                                         Chairman & CEO

<PAGE>

"INVESTORS"                           AMERSHAM PHARMACIA BIOTECH, INC.

                                      By:
                                         ---------------------------

                                      Its:
                                         ---------------------------

<PAGE>

"INVESTORS"

                                       APPLE TREE PARTNERS I L.P.

                                      By:
                                         ---------------------------

                                      Its:
                                         ---------------------------

<PAGE>

"INVESTORS"

                                      BRENTWOOD ASSOCIATES VIII, L.P.

                                      By: Brentwood VIII Ventures, L.L.C.

                                      Its:  General Partner

                                      By:
                                         ---------------------------

                                      Its:
                                         ---------------------------

                                      BRENTWOOD AFFILIATES FUND II, L.P.

                                      By: Brentwood VIII Ventures, L.L.C.

                                      Its:  General Partner

                                      By:
                                         ---------------------------

                                      Its:
                                         ---------------------------

<PAGE>

"INVESTORS"

                                  -------------------------------------------
                                  WILLIAM R.  BRODY

<PAGE>

"INVESTORS"

                                  -------------------------------------------
                                  ROBERT J. CARPENTER

<PAGE>

"INVESTORS"

                                  CLSP, L.P.

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

                                  CLSP-SBS I, L.P.

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

                                  CLSP-SBS II, L.P.

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

                                  CLSP II, L.P.

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

<PAGE>

                                  CLSP OVERSEAS, LTD.

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

<PAGE>

"INVESTORS"

                                  COOLEY GODWARD LLP

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

<PAGE>

"INVESTORS"

                                  DOMAIN PARTNERS IV, L.P.

                                  By:
                                      ---------------------------------------
                                          Managing Member

                                  DP IV ASSOCIATES, L.P.

                                  By: One Palmer Square Associates IV, L.L.C.
                                      Its General Partner

                                  By:
                                     ----------------------------------------
                                       Managing Member

<PAGE>

"INVESTORS"

                                  -------------------------------------------
                                  JAY T. FLATLEY

<PAGE>

"INVESTORS"

                                  GC&H INVESTMENTS

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

<PAGE>

"INVESTORS"

                                  WEB MD CORPORATION

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

<PAGE>

"INVESTORS"

                                  -------------------------------------------
                                  RICHARD A. MATHIES

<PAGE>

"INVESTORS"

                                  MONACO PARTNERS, L.P.
                                  By: Clark Ventures, Inc.
                                      Its General Partner

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

<PAGE>

"INVESTORS"

                                  ORACLE CORPORATION

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

<PAGE>

"INVESTORS"

                                  PEQUOT HEALTHCARE FUND, L.P.
                                  BY: PEQUOT CAPITAL MANAGEMENT, INC.
                                  AS INVESTMENT MANAGER

                                  By:
                                      ---------------------------------------
                                      David J. Malat

                                  Its:
                                      ---------------------------------------

                                  PEQUOT HEALTHCARE OFFSHORE FUND, INC.
                                  BY: PEQUOT CAPITAL MANAGEMENT, INC.,
                                  AS INVESTMENT ADVISOR

                                  By:
                                      ---------------------------------------
                                      David J. Malat

                                  Its:
                                      ---------------------------------------

                                  PEQUOT HEALTHCARE INSTITUTIONAL FUND, L.P.
                                  BY: PEQUOT CAPITAL MANAGEMENT, INC.,
                                  AS INVESTMENT ADVISOR

                                  By:
                                      ---------------------------------------
                                      David J. Malat

                                  Its:
                                      ---------------------------------------

<PAGE>

"INVESTORS"

                                  PHARMACEUTICAL PRODUCT DEVELOPMENT, INC.

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

<PAGE>

"INVESTORS"

                                  AXYS PHARMACEUTICALS, INC.

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

<PAGE>

"INVESTORS"

                                  QUANTUM PARTNERS LDC

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

                                  QUANTUM INDUSTRIAL PARTNERS LDC

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

                                  SFM DOMESTIC INVESTMENTS LLC

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

<PAGE>

"INVESTORS"

                                  RUSSELL RANDOLPH & CYNTHIA Y. SCOTT OR
                                  THEIR SUCCESSORS IN TRUST U/T/D JUNE 22, 1998,
                                  AS MAY BE AMENDED
                                  312 COLERIDGE AVENUE
                                  PALO ALTO, CA  94301

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

<PAGE>

"INVESTORS"

                                  -------------------------------------------
                                  FRANCIS COLSTON RIENHOFF

<PAGE>

"INVESTORS"

                                  -------------------------------------------
                                  HUGH Y. RIENHOFF, AN INDIVIDUAL

<PAGE>

"INVESTORS"

                                  JAMES M. SCHLATER AND MARILYN L. SCHLATER
                                  TRUST DATED 4/9/90

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

<PAGE>

"INVESTORS"

                                  -------------------------------------------
                                  GREGORY T. WENT, AN INDIVIDUAL

<PAGE>

"INVESTORS"

                                  -------------------------------------------
                                  STEVEN B. LEHRER, AN INDIVIDUAL

<PAGE>

"INVESTORS"

                                  DEUTSCHE
                                  VERMOEGENSBILDUNGSGESELLSCHAFT

                                  By:
                                      ---------------------------------------

                                  Its:
                                      ---------------------------------------

<PAGE>

"INVESTORS"

                                     DEUTSCHE ASSET MANAGEMENT (NAVAP)

                                     By:
                                        --------------------------------------

                                     Its:
                                          ------------------------------------

<PAGE>

"INVESTORS"

                                     TALLWOOD I, L.P.

                                     By:
                                        --------------------------------------

                                     Its:
                                         -------------------------------------

<PAGE>

"INVESTORS"

                                     SPARKS PARTNERS, L.P.

                                     By:
                                        --------------------------------------

                                     Its:
                                         -------------------------------------

<PAGE>

"INVESTORS"

                                     THE UNIVERSITY OF UTAH RESEARCH FOUNDATION

                                     By:
                                        --------------------------------------

                                     Its:
                                         -------------------------------------

<PAGE>

"INVESTORS"

                                     HOGAN & HARTSON L.L.P.

                                     By:
                                        --------------------------------------

                                     Its:
                                         -------------------------------------

<PAGE>

"INVESTORS"

                                     -----------------------------------------
                                     HUGH WILLBOURN

<PAGE>

                                   EXHIBIT A

                             SCHEDULE OF INVESTORS

Name and Address of Investor

Pharmaceutical Product Development, Inc.
3151 17th Street Extension
Wilmington, NC 28412

Amersham Pharmacia Biotech, Inc.
800 Centennial Avenue 30
PO Box 1327
Piscataway, NJ  0885-1327

Apple Tree Partners I, L.P.
The Chrysler Building
405 Lexington Avenue, 45th Floor
New York, NY 10174
Attn: Seth Harrison

Atherton Properties Partnership, L.P.
2025 Garcia Avenue
Mountain View, CA 94043

Axys Pharmaceuticals, Inc.
180 Kimball Way
South San Francisco, CA 94080
Attention: William J. Newell

Brentwood Affiliates Fund II, L.P.
3000 Sand Hill Road, Bldg. 1
Suite 260
Menlo Park, CA 94025
Attn:  Brian Atwood

Brentwood Associates VIII, L.P.
3000 Sand Hill Road, Bldg. 1
Suite 260
Menlo Park, CA 94025
Attn:  Brian Atwood

                                      1.

<PAGE>

CLSP II, L.P.
230 Park Avenue 20th Floor
New York, NY  10169
Attn:  Peter Freer

CLSP Overseas, Ltd
230 Park Avenue 20th Floor
New York, NY  10169
Attn: Peter Freer

CLSP, L.P.
230 Park Avenue 20th Floor
New York, NY  10169
Attn:  Peter Freer

CLSP-SBS 1, L.P.
230 Park Avenue 20th Floor
New York, NY  10169
Attn:  Peter Freer

CLSP-SBS 11, L.P.
230 Park Avenue 20th Floor
New York, NY  10169
Attn:  Peter Freer

Cooley Godward LLP
One Maritime Plaza
20th Floor
San Francisco, CA  94111-3580

Deutsche Asset Management (NAVAP)
Mainzer Landstrasse 16
60323 Frankfurt
Germany
Attn: Herr Althoff

Deutsche Vermoegensbildungsgesellschaft
Feldbergstr 23
60323 Frankfurt
Germany
Attn: Daniel Endrikat

                                      2.

<PAGE>

Domain Partners IV, L.P.
One Palmer Square
Suite 515
Princeton, NJ  08542
Attn:  Jesse Treu

DP IV Associates, L.P.
One Palmer Square
Suite 515
Princeton, NJ  08542
Attn:  Jesse Treu

Francis Colston Rienhoff
7802 Ruxwood Road
Baltimore, MD  21204

GATX Ventures, Inc.
3678 Mountain Diablo Blvd., Suite 200
Lafayette, CA 94549
Attn: Legal Department

GC&H Investments
One Maritime Plaza, 20th Floor
San Francisco, CA  94111-3580

GC&H Investments
One Maritime Plaza, 20th Floor
San Francisco, CA 94111-3580
Attn: Jim Kindler

Gregory T. Went
DNA Sciences, Inc
6540 Kaiser Drive
Fremont, CA 94555-3613

Hogan & Hartson L.L.P.
555 Thirteenth Street, N.W.
Washington, DC 20004
Attn: Raymond Calamaro

Hugh Willbourn
Corr Willbourn R&D
1 Sail Street
London SE 116NQ

                                      3.

<PAGE>

Hugh Y. Rienhoff
DNA Sciences, Inc
6540 Kaiser Drive
Fremont, CA 94555-3613

James M. Schlater and Marilyn L.
Schlater Trust Dated 4/9/90
623 Morningside
Los Altos, CA 94022

Jay T. Flatley
Illumina, Inc.
9390 Towne Centre Drive
San Diego, CA 92121

JHC Investments 2000, LLC
2025 Garcia Avenue
Mountain View, CA 94043

Monaco Partners, L.P.
777 East William Street, Suite 200
Carson City, NV 89701-4058
Attn:  Harvey Armstrong

Oracle Corporation
500 Oracle Parkway
Redwood Shores, CA  94065

Pequot Healthcare Fund, L.P.
500 Nyala Farm Road
Westport, CT. 06880
Attn: David J. Malat

Pequot Healthcare Institutional Fund, L.P.
500 Nyala Farm Road
Westport, CT. 06880
Attn: David J. Malat
Pequot Healthcare Offshore Fund, Inc.
500 Nyala Farm Road
Westport, CT. 06880
Attn: David J. Malat

                                      4.

<PAGE>

Quantum Industrial Partners LDC
888 7th Avenue, 33rd Floor
New York, NY  10106
Attn: Richard D. Holahan, Jr.

Quantum Partners LDC
888 7th Avenue, 33rd Floor
New York, NY  10106
Attn: Richard D. Holahan, Jr.

Richard Mathies
93 Danefield Place
Moraga, CA  94556

Robert J. Carpenter
9 Lowell Road
Wellesley Hills, MA  02481

Russell Randolph & Cynthia Y. Scott Or
Their Successors In Trust U/T/D June 22, 1998, As May be Amended
312 Coleridge Avenue
Palo Alto, CA  94301

SFM Domestic Investments LLC
888 7th Avenue, 33rd Floor
New York, NY  10106
Attn: Richard D. Holahan, Jr.

Sparks Partners, L.P.
4146 Roland Avenue
Baltimore, MD 21211
Attn: John Brooks

Steven B. Lehrer
DNA Sciences, Inc
6540 Kaiser Drive
Fremont, CA 94555-3613

Tallwood I, L.P.
635 Waverly Street
Palo Alto, CA 94301
Attn: Diosdado P. Banatao

                                      5.

<PAGE>

Tallwood I, L.P.
635 Waverly Street
Palo Alto, CA 94301
Attn: Diosdado P. Banatao

TBCC Funding Trust II
Transamerica Technology Finance Division
76 Batterson Park Road
Farmington, CT 06032
Attn: Legal Department

University of Utah Research Foundation
Technology Transfer Office
615 S. Arapeen Drive, Suite 110
Salt Lake City, UT 84108
Attn: Chris Jansen, PhD.
         Director

Web MD Corporation
400 Lenox Building
3399 Peachtree Road, NW
Atlanta, GA 30326

William R. Brody
Johns Hopkins University
242 Garland Hall
3400 N. Charles Street
Baltimore, MD  21218

Woodside Ventures Limited Partnership
2025 Garcia Avenue
Mountain View, CA 94043<PAGE>

                                                                    EXHIBIT 10.2

                               DNA SCIENCES, INC.

                           2001 EQUITY INCENTIVE PLAN

              ADOPTED BY THE BOARD OF DIRECTORS: JANUARY 3, 2001
                  APPROVED BY STOCKHOLDERS: _________ ___, 2001
                      TERMINATION DATE: JANUARY 2, 2011

1.       PURPOSES.

         (a) AMENDMENT AND RESTATEMENT. This Plan is an amendment and
restatement of the DNA Sciences, Inc. 2000 Equity Incentive Plan (the "Prior
Plan"). The Prior Plan is hereby amended and restated in its entirety effective
as of the closing date of the initial public offering of the Common Stock.

         (b) ELIGIBLE STOCK AWARD RECIPIENTS. The persons eligible to receive
Stock Awards are the Employees, Directors and Consultants of the Company and its
Affiliates.

         (c) AVAILABLE STOCK AWARDS. The purpose of the Plan is to provide a
means by which eligible recipients of Stock Awards may be given an opportunity
to benefit from increases in value of the Common Stock through the granting of
the following Stock Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock
Options, (iii) stock bonuses and (iv) rights to acquire restricted stock.

         (d) GENERAL PURPOSE. The Company, by means of the Plan, seeks to retain
the services of the group of persons eligible to receive Stock Awards, to secure
and retain the services of new members of this group and to provide incentives
for such persons to exert maximum efforts for the success of the Company and its
Affiliates.

2.       DEFINITIONS.

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

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

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

         (d) "COMMITTEE" means a committee of one or more members of the Board
appointed by the Board in accordance with subsection 3(c).

                                       1
<PAGE>

         (e) "COMMON STOCK" means the common stock of the Company.

         (f) "COMPANY" means DNA Sciences, Inc., a Delaware corporation.

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

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

         (i) "COVERED EMPLOYEE" means the chief executive officer and the four
(4) other highest compensated officers of the Company for whom total
compensation is required to be reported to stockholders under the Exchange Act,
as determined for purposes of Section 162(m) of the Code.

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

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

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

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

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

                  (i) If the Common Stock is listed on any established stock
exchange or traded on the Nasdaq National Market or the Nasdaq SmallCap Market,
the Fair Market Value of a share of Common Stock shall be the closing sales
price for such stock (or the closing bid, if no sales were reported) as quoted
on such exchange or market (or the exchange or market with the

                                       2
<PAGE>

greatest volume of trading in the Common Stock) on the last market trading day
prior to the day of determination, as reported in THE WALL STREET JOURNAL or
such other source as the Board deems reliable.

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

         (o) "INCENTIVE STOCK OPTION" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

         (p) "NON-EMPLOYEE DIRECTOR" means a Director who either (i) is not a
current Employee or Officer of the Company or its parent or a subsidiary, does
not receive compensation (directly or indirectly) from the Company or its parent
or a subsidiary for services rendered as a consultant or in any capacity other
than as a Director (except for an amount as to which disclosure would not be
required under Item 404(a) of Regulation S-K promulgated pursuant to the
Securities Act ("Regulation S-K")), does not possess an interest in any other
transaction as to which disclosure would be required under Item 404(a) of
Regulation S-K and is not engaged in a business relationship as to which
disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is
otherwise considered a "non-employee director" for purposes of Rule 16b-3.

         (q) "NONSTATUTORY STOCK OPTION" means an Option not intended to qualify
as an Incentive Stock Option.

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

         (s) "OPTION" means an Incentive Stock Option or a Nonstatutory Stock
Option granted pursuant to the Plan.

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

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

         (v) "OUTSIDE DIRECTOR" means a Director who either (i) is not a current
employee of the Company or an "affiliated corporation" (within the meaning of
Treasury Regulations promulgated under Section 162(m) of the Code), is not a
former employee of the Company or an "affiliated corporation" receiving
compensation for prior services (other than benefits under a tax qualified
pension plan), was not an officer of the Company or an "affiliated corporation"
at any time and is not currently receiving direct or indirect remuneration from
the Company or an "affiliated corporation" for services in any capacity other
than as a Director or (ii) is otherwise considered an "outside director" for
purposes of Section 162(m) of the Code.

                                       3
<PAGE>

         (w) "PARTICIPANT" means a person to whom a Stock Award is granted
pursuant to the Plan or, if applicable, such other person who holds an
outstanding Stock Award.

         (x) "PLAN" means this DNA Sciences, Inc. 2001 Equity Incentive Plan.

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

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

         (aa) "STOCK AWARD" means any right granted under the Plan, including an
Option, a stock bonus and a right to acquire restricted stock.

         (bb) "STOCK AWARD AGREEMENT" means a written agreement between the
Company and a holder of a Stock Award evidencing the terms and conditions of an
individual Stock Award grant. Each Stock Award Agreement shall be subject to the
terms and conditions of the Plan.

         (cc) "TEN PERCENT STOCKHOLDER" means a person who owns (or is deemed to
own pursuant to Section 424(d) of the Code) stock possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company or of any of its Affiliates.

3.       ADMINISTRATION.

         (a) ADMINISTRATION BY BOARD. The Board shall administer the Plan unless
and until the Board delegates administration to a Committee, as provided in
subsection 3(c).

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

                  (i) To determine from time to time which of the persons
eligible under the Plan shall be granted Stock Awards; when and how each Stock
Award shall be granted; what type or combination of types of Stock Award shall
be granted; the provisions of each Stock Award granted (which need not be
identical), including the time or times when a person shall be permitted to
receive Common Stock pursuant to a Stock Award; and the number of shares of
Common Stock with respect to which a Stock Award shall be granted to each such
person.

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

                  (iii) To amend the Plan or a Stock Award as provided in
Section 12.

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

                                       4
<PAGE>

         (c) DELEGATION TO COMMITTEE.

                  (i) GENERAL. The Board may delegate administration of the Plan
to a Committee or Committees of one (1) or more members of the Board, and the
term "Committee" shall apply to any person or persons to whom such authority has
been delegated. If administration is delegated to a Committee, the Committee
shall have, in connection with the administration of the Plan, the powers
theretofore possessed by the Board, including the power to delegate to a
subcommittee any of the administrative powers the Committee is authorized to
exercise (and references in this Plan to the Board shall thereafter be to the
Committee or subcommittee), subject, however, to such resolutions, not
inconsistent with the provisions of the Plan, as may be adopted from time to
time by the Board. The Board may abolish the Committee at any time and revest in
the Board the administration of the Plan.

                  (ii) COMMITTEE COMPOSITION WHEN COMMON STOCK IS PUBLICLY
TRADED. At such time as the Common Stock is publicly traded, in the discretion
of the Board, a Committee may consist solely of two or more Outside Directors,
in accordance with Section 162(m) of the Code, and/or solely of two or more
Non-Employee Directors, in accordance with Rule 16b-3. Within the scope of such
authority, the Board or the Committee may (1) delegate to a committee of one or
more members of the Board who are not Outside Directors the authority to grant
Stock Awards to eligible persons who are either (a) not then Covered Employees
and are not expected to be Covered Employees at the time of recognition of
income resulting from such Stock Award or (b) not persons with respect to whom
the Company wishes to comply with Section 162(m) of the Code and/or) (2)
delegate to a committee of one or more members of the Board who are not
Non-Employee Directors the authority to grant Stock Awards to eligible persons
who are not then subject to Section 16 of the Exchange Act.

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

4.       SHARES SUBJECT TO THE PLAN.

         (a) SHARE RESERVE. Subject to the provisions of Section 11 relating to
adjustments upon changes in Common Stock, the Common Stock that may be issued
pursuant to Stock Awards shall not exceed in the aggregate nine million
(9,000,000) shares of Common Stock, such total consisting of eight million eight
hundred eighty-four thousand five hundred (8,884,500) shares of Common Stock
reserved under the Prior Plan, plus an increase of an additional one hundred
fifteen thousand five hundred (115,500) shares of Common Stock, plus an annual
increase to be added on the first day of each calendar year, commencing on
January 1, 2002 and ending on (and including) January 1, 2010, equal to the
least of (i) five percent (5%) of the shares of Common Stock outstanding on such
January 1 (rounded down to the nearest whole share and calculated on a fully
diluted basis, that is, assuming the exercise of all outstanding stock options
and warrants to purchase shares of Common Stock), (ii) two million five hundred
thousand (2,500,000) shares of Common Stock or (iii) such number of shares of
Common Stock as determined by the Board, which number shall be less than (i) and
(ii).

                                       5
<PAGE>

         (b) REVERSION OF SHARES TO THE SHARE RESERVE. If any Stock Award shall
for any reason expire or otherwise terminate, in whole or in part, without
having been exercised in full, the shares of Common Stock not acquired under
such Stock Award shall revert to and again become available for issuance under
the Plan. In addition, if any shares of Common Stock issued under the Plan shall
for any reason be repurchased or reacquired by the Company because they are not
vested under the terms of the Stock Award Agreement governing such shares, then
any and all shares of Common Stock so repurchased or reacquired shall revert to
and again become available for issuance under this Plan for Stock Awards other
than Incentive Stock Options.

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

5.       ELIGIBILITY.

         (a) ELIGIBILITY FOR SPECIFIC STOCK AWARDS. Incentive Stock Options may
be granted only to Employees. Stock Awards other than Incentive Stock Options
may be granted to Employees, Directors and Consultants.

         (b) TEN PERCENT STOCKHOLDERS. A Ten Percent Stockholder shall not be
granted an Incentive Stock Option unless the exercise price of such Option is at
least one hundred ten percent (110%) of the Fair Market Value of the Common
Stock at the date of grant and the Option is not exercisable after the
expiration of five (5) years from the date of grant.

         (c) SECTION 162(m) LIMITATION. To the extent the Company is subject to
Section 162(m) of the Code and subject to the provisions of Section 11 relating
to adjustments upon changes in the shares of Common Stock, no Employee shall be
eligible to be granted Options covering more than four million (4,000,000)
shares of Common Stock during any calendar year.

         (d) CONSULTANTS.

                  (i) A Consultant shall not be eligible for the grant of a
Stock Award if, at the time of grant, a Form S-8 Registration Statement under
the Securities Act ("Form S-8") is not available to register either the offer or
the sale of the Company's securities to such Consultant because of the nature of
the services that the Consultant is providing to the Company, or because the
Consultant is not a natural person, or as otherwise provided by the rules
governing the use of Form S-8, unless the Company determines both (i) that such
grant (A) shall be registered in another manner under the Securities Act (E.G.,
on a Form S-3 Registration Statement) or (B) does not require registration under
the Securities Act in order to comply with the requirements of the Securities
Act, if applicable, and (ii) that such grant complies with the securities laws
of all other relevant jurisdictions.

                  (ii) Form S-8 generally is available to consultants and
advisors only if (i) they are natural persons; (ii) they provide bona fide
services to the issuer, its parents, its majority-owned subsidiaries or
majority-owned subsidiaries of the issuer's parent; and (iii) the services are

                                       6
<PAGE>

not in connection with the offer or sale of securities in a capital-raising
transaction, and do not directly or indirectly promote or maintain a market for
the issuer's securities.

6.       OPTION PROVISIONS.

         Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. All Options shall be separately
designated Incentive Stock Options or Nonstatutory Stock Options at the time of
grant, and, if certificates are issued, a separate certificate or certificates
will be issued for shares of Common Stock purchased on exercise of each type of
Option. The provisions of separate Options need not be identical, but each
Option shall include (through incorporation of provisions hereof by reference in
the Option or otherwise) the substance of each of the following provisions:

         (a) TERM. Subject to the provisions of subsection 5(b) regarding Ten
Percent Stockholders, no Incentive Stock Option shall be exercisable after the
expiration of ten (10) years from the date it was granted.

         (b) EXERCISE PRICE OF AN INCENTIVE STOCK OPTION. Subject to the
provisions of subsection 5(b) regarding Ten Percent Stockholders, the exercise
price of each Incentive Stock Option shall be not less than one hundred percent
(100%) of the Fair Market Value of the Common Stock subject to the Option on the
date the Option is granted. Notwithstanding the foregoing, an Incentive Stock
Option may be granted with an exercise price lower than that set forth in the
preceding sentence if such Option is granted pursuant to an assumption or
substitution for another option in a manner satisfying the provisions of Section
424(a) of the Code.

         (c) EXERCISE PRICE OF A NONSTATUTORY STOCK OPTION. The exercise price
of each Nonstatutory Stock Option shall be determined by the Board.

         (d) CONSIDERATION. The purchase price of Common Stock acquired pursuant
to an Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in cash at the time the Option is exercised or (ii) at
the discretion of the Board at the time of the grant of the Option (or
subsequently in the case of a Nonstatutory Stock Option) (1) by delivery to the
Company of other Common Stock, (2) according to a deferred payment or other
similar arrangement with the Optionholder or (3) in any other form of legal
consideration that may be acceptable to the Board. Unless otherwise specifically
provided in the Option, the purchase price of Common Stock acquired pursuant to
an Option that is paid by delivery to the Company of other Common Stock
acquired, directly or indirectly from the Company, shall be paid only by shares
of the Common Stock of the Company that have been held for more than six (6)
months (or such longer or shorter period of time required to avoid a charge to
earnings for financial accounting purposes). At any time that the Company is
incorporated in Delaware, payment of the Common Stock's "par value," as defined
in the Delaware General Corporation Law, shall not be made by deferred payment.

           In the case of any deferred payment arrangement, interest shall be
compounded at least annually and shall be charged at the minimum rate of
interest necessary to avoid the treatment as

                                       7
<PAGE>

interest, under any applicable provisions of the Code, of any amounts other than
amounts stated to be interest under the deferred payment arrangement or at such
higher rate of interest necessary in order to avoid variable award treatment for
financial accounting purposes.

         (e) TRANSFERABILITY OF AN INCENTIVE STOCK OPTION. An Incentive Stock
Option shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Optionholder
only by the Optionholder. Notwithstanding the foregoing, the Optionholder may,
by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the
Optionholder, shall thereafter be entitled to exercise the Option.

         (f) TRANSFERABILITY OF A NONSTATUTORY STOCK OPTION. A Nonstatutory
Stock Option shall be transferable to the extent provided in the Option
Agreement. If the Nonstatutory Stock Option does not provide for
transferability, then the Nonstatutory Stock Option shall not be transferable
except by will or by the laws of descent and distribution and shall be
exercisable during the lifetime of the Optionholder only by the Optionholder.
Notwithstanding the foregoing, the Optionholder may, by delivering written
notice to the Company, in a form satisfactory to the Company, designate a third
party who, in the event of the death of the Optionholder, shall thereafter be
entitled to exercise the Option.

         (g) VESTING GENERALLY. The total number of shares of Common Stock
subject to an Option may, but need not, vest and therefore become exercisable in
periodic installments that may, but need not, be equal. The Option may be
subject to such other terms and conditions on the time or times when it may be
exercised (which may be based on performance or other criteria) as the Board may
deem appropriate. The vesting provisions of individual Options may vary.

         (h) TERMINATION OF CONTINUOUS SERVICE. In the event an Optionholder's
Continuous Service terminates (other than upon the Optionholder's death or
Disability), the Optionholder may exercise his or her Option (to the extent that
the Optionholder was entitled to exercise such Option as of the date of
termination) but only within such period of time ending on the earlier of (i)
the date three (3) months following the termination of the Optionholder's
Continuous Service (or such longer or shorter period specified in the Option
Agreement), or (ii) the expiration of the term of the Option as set forth in the
Option Agreement. If, after termination, the Optionholder does not exercise his
or her Option within the time specified in the Option Agreement, the Option
shall terminate.

         (i) EXTENSION OF TERMINATION DATE. An Optionholder's Option Agreement
may also provide that if the exercise of the Option following the termination of
the Optionholder's Continuous Service (other than upon the Optionholder's death
or Disability) would be prohibited at any time solely because the issuance of
shares of Common Stock would violate the registration requirements under the
Securities Act, then the Option shall terminate on the earlier of (i) the
expiration of the term of the Option set forth in subsection 6(a) or (ii) the
expiration of a period of three (3) months after the termination of the
Optionholder's Continuous Service during which the exercise of the Option would
not be in violation of such registration requirements.

                                       8
<PAGE>

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

         (k) DEATH OF OPTIONHOLDER. In the event (i) an Optionholder's
Continuous Service terminates as a result of the Optionholder's death or (ii)
the Optionholder dies within the period (if any) specified in the Option
Agreement after the termination of the Optionholder's Continuous Service for a
reason other than death, then the Option may be exercised (to the extent the
Optionholder was entitled to exercise such Option as of the date of death) by
the Optionholder's estate, by a person who acquired the right to exercise the
Option by bequest or inheritance or by a person designated to exercise the
Option upon the Optionholder's death pursuant to subsection 6(e) or 6(f), but
only within the period ending on the earlier of (1) the date twelve (12) months
following the date of death (or such longer or shorter period specified in the
Option Agreement) or (2) the expiration of the term of such Option as set forth
in the Option Agreement. If, after death, the Option is not exercised within the
time specified herein, the Option shall terminate.

                  (i) EARLY EXERCISE. The Option may, but need not, include a
provision whereby the Optionholder may elect at any time before the
Optionholder's Continuous Service terminates to exercise the Option as to any
part or all of the shares of Common Stock subject to the Option prior to the
full vesting of the Option. Any unvested shares of Common Stock so purchased may
be subject to a repurchase option in favor of the Company or to any other
restriction the Board determines to be appropriate.

7.       PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.

         (a) STOCK BONUS AWARDS. Each stock bonus agreement shall be in such
form and shall contain such terms and conditions as the Board shall deem
appropriate. The terms and conditions of stock bonus agreements may change from
time to time, and the terms and conditions of separate stock bonus agreements
need not be identical, but each stock bonus agreement shall include (through
incorporation of provisions hereof by reference in the agreement or otherwise)
the substance of each of the following provisions:

                  (i) CONSIDERATION. A stock bonus may be awarded in
consideration for past services actually rendered to the Company or an Affiliate
for its benefit.

                  (ii) VESTING. Shares of Common Stock awarded under the stock
bonus agreement may, but need not, be subject to a share repurchase option in
favor of the Company in accordance with a vesting schedule to be determined by
the Board.

                                       9
<PAGE>

                  (iii) TERMINATION OF PARTICIPANT'S CONTINUOUS SERVICE. In the
event a Participant's Continuous Service terminates, the Company may reacquire
any or all of the shares of Common Stock held by the Participant which have not
vested as of the date of termination under the terms of the stock bonus
agreement.

                  (iv) TRANSFERABILITY. Rights to acquire shares of Common Stock
under the stock bonus agreement shall be transferable by the Participant only
upon such terms and conditions as are set forth in the stock bonus agreement, as
the Board shall determine in its discretion, so long as Common Stock awarded
under the stock bonus agreement remains subject to the terms of the stock bonus
agreement.

         (b) RESTRICTED STOCK AWARDS. Each restricted stock purchase agreement
shall be in such form and shall contain such terms and conditions as the Board
shall deem appropriate. The terms and conditions of the restricted stock
purchase agreements may change from time to time, and the terms and conditions
of separate restricted stock purchase agreements need not be identical, but each
restricted stock purchase agreement shall include (through incorporation of
provisions hereof by reference in the agreement or otherwise) the substance of
each of the following provisions:

                  (i) PURCHASE PRICE. The purchase price under each restricted
stock purchase agreement shall be determined by the Board and designated in such
restricted stock purchase agreement.

                  (ii) CONSIDERATION. The purchase price of Common Stock
acquired pursuant to the restricted stock purchase agreement shall be paid
either: (i) in cash at the time of purchase; (ii) at the discretion of the
Board, according to a deferred payment or other similar arrangement with the
Participant; or (iii) in any other form of legal consideration that may be
acceptable to the Board in its discretion; provided, however, that at any time
that the Company is incorporated in Delaware, then payment of the Common Stock's
"par value," as defined in the Delaware General Corporation Law, shall not be
made by deferred payment.

                  (iii) VESTING. Shares of Common Stock acquired under the
restricted stock purchase agreement may, but need not, be subject to a share
repurchase option in favor of the Company in accordance with a vesting schedule
to be determined by the Board.

                  (iv) TERMINATION OF PARTICIPANT'S CONTINUOUS SERVICE. In the
event a Participant's Continuous Service terminates, the Company may repurchase
or otherwise reacquire any or all of the shares of Common Stock held by the
Participant which have not vested as of the date of termination under the terms
of the restricted stock purchase agreement.

                  (v) TRANSFERABILITY. Rights to acquire shares of Common Stock
under the restricted stock purchase agreement shall be transferable by the
Participant only upon such terms and conditions as are set forth in the
restricted stock purchase agreement, as the Board shall determine in its
discretion, so long as Common Stock awarded under the restricted stock purchase
agreement remains subject to the terms of the restricted stock purchase
agreement.

                                       10
<PAGE>

8.       COVENANTS OF THE COMPANY.

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

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

9.       USE OF PROCEEDS FROM STOCK.

         Proceeds from the sale of Common Stock pursuant to Stock Awards shall
constitute general funds of the Company.

10.      MISCELLANEOUS.

         (a) ACCELERATION OF EXERCISABILITY AND VESTING. The Board shall have
the power to accelerate the time at which a Stock Award may first be exercised
or the time during which a Stock Award or any part thereof will vest in
accordance with the Plan, notwithstanding the provisions in the Stock Award
stating the time at which it may first be exercised or the time during which it
will vest.

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

         (c) NO EMPLOYMENT OR OTHER SERVICE RIGHTS. Nothing in the Plan or any
instrument executed or Stock Award granted pursuant thereto shall confer upon
any Participant any right to continue to serve the Company or an Affiliate in
the capacity in effect at the time the Stock Award was granted or shall affect
the right of the Company or an Affiliate to terminate (i) the employment of an
Employee with or without notice and with or without cause, (ii) the service of a
Consultant pursuant to the terms of such Consultant's agreement with the Company
or an Affiliate or (iii) the service of a Director pursuant to the Bylaws of the
Company or an Affiliate, and any applicable provisions of the corporate law of
the state in which the Company or the Affiliate is incorporated, as the case may
be.

                                       11
<PAGE>

         (d) INCENTIVE STOCK OPTION $100,000 LIMITATION. To the extent that the
aggregate Fair Market Value (determined at the time of grant) of Common Stock
with respect to which Incentive Stock Options are exercisable for the first time
by any Optionholder during any calendar year (under all plans of the Company and
its Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or
portions thereof which exceed such limit (according to the order in which they
were granted) shall be treated as Nonstatutory Stock Options.

         (e) INVESTMENT ASSURANCES. The Company may require a Participant, as a
condition of exercising or acquiring Common Stock under any Stock Award, (i) to
give written assurances satisfactory to the Company as to the Participant's
knowledge and experience in financial and business matters and/or to employ a
purchaser representative reasonably satisfactory to the Company who is
knowledgeable and experienced in financial and business matters and that he or
she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Stock Award; and (ii) to
give written assurances satisfactory to the Company stating that the Participant
is acquiring Common Stock subject to the Stock Award for the Participant's own
account and not with any present intention of selling or otherwise distributing
the Common Stock. The foregoing requirements, and any assurances given pursuant
to such requirements, shall be inoperative if (1) the issuance of the shares of
Common Stock upon the exercise or acquisition of Common Stock under the Stock
Award has been registered under a then currently effective registration
statement under the Securities Act or (2) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not
be met in the circumstances under the then applicable securities laws. The
Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or
appropriate in order to comply with applicable securities laws, including, but
not limited to, legends restricting the transfer of the Common Stock.

         (f) WITHHOLDING OBLIGATIONS. To the extent provided by the terms of a
Stock Award Agreement, the Participant may satisfy any federal, state or local
tax withholding obligation relating to the exercise or acquisition of Common
Stock under a Stock Award by any of the following means (in addition to the
Company's right to withhold from any compensation paid to the Participant by the
Company) or by a combination of such means: (i) tendering a cash payment; (ii)
authorizing the Company to withhold shares of Common Stock from the shares of
Common Stock otherwise issuable to the Participant as a result of the exercise
or acquisition of Common Stock under the Stock Award, provided, however, that no
shares of Common Stock are withheld with a value exceeding the minimum amount of
tax required to be withheld by law; or (iii) delivering to the Company owned and
unencumbered shares of Common Stock.

11.      ADJUSTMENTS UPON CHANGES IN STOCK.

         (a) CAPITALIZATION ADJUSTMENTS. If any change is made in the Common
Stock subject to the Plan, or subject to any Stock Award, without the receipt of
consideration by the Company (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the

                                       12
<PAGE>

receipt of consideration by the Company), the Plan will be appropriately
adjusted in the type(s), class(es) and maximum number of securities subject to
the Plan pursuant to subsection 4(a) and the maximum number of securities
subject to award to any person pursuant to subsection 5(c), and the outstanding
Stock Awards will be appropriately adjusted in the type(s), class(es) and number
of securities and price per share of Common Stock subject to such outstanding
Stock Awards. The Board shall make such adjustments, and its determination shall
be final, binding and conclusive. (The conversion of any convertible securities
of the Company shall not be treated as a transaction "without receipt of
consideration" by the Company.)

         (b) DISSOLUTION OR LIQUIDATION. In the event of a dissolution or
liquidation of the Company, then all outstanding Stock Awards shall terminate
immediately prior to such an event.

         (c) ASSET SALE, MERGER, CONSOLIDATION OR REVERSE MERGER. In the event
of (i) a sale, exchange, lease or other disposition of all or substantially all
of the assets of the Company, (ii) a merger or consolidation in which the
Company is not the surviving corporation or (iii) a reverse merger in which the
Company is the surviving corporation but the shares of Common Stock outstanding
immediately preceding the merger are converted by virtue of the merger into
other property, whether in the form of securities, cash or otherwise
(individually, a "Corporate Transaction"), then any surviving corporation or
acquiring corporation shall assume or continue any Stock Awards outstanding
under the Plan or shall substitute similar stock awards (including an award to
acquire the same consideration paid to the shareholders in the Corporate
Transaction for those outstanding under the Plan). In the event any surviving
corporation or acquiring corporation refuses to assume or continue such Stock
Awards or to substitute similar stock awards for those outstanding under the
Plan, then with respect to Stock Awards held by Participants whose Continuous
Service has not terminated, the vesting of such Stock Awards (and, if
applicable, the time during which such Stock Awards may be exercised) shall be
accelerated in full, and the Stock Awards shall terminate if not exercised (if
applicable) at or prior to the Corporate Transaction. With respect to any other
Stock Awards outstanding under the Plan, such Stock Awards shall terminate if
not exercised (if applicable) prior to the Corporate Transaction.

12.      AMENDMENT OF THE PLAN AND STOCK AWARDS.

         (a) AMENDMENT OF PLAN. The Board at any time, and from time to time,
may amend the Plan. However, except as provided in Section 11 relating to
adjustments upon changes in Common Stock, no amendment shall be effective unless
approved by the stockholders of the Company to the extent stockholder approval
is necessary to satisfy the requirements of Section 422 of the Code, Rule 16b-3
or any Nasdaq or securities exchange listing requirements.

         (b) STOCKHOLDER APPROVAL. The Board may, in its sole discretion, submit
any other amendment to the Plan for stockholder approval, including, but not
limited to, amendments to the Plan intended to satisfy the requirements of
Section 162(m) of the Code and the regulations thereunder regarding the
exclusion of performance-based compensation from the limit on corporate
deductibility of compensation paid to certain executive officers.

                                       13
<PAGE>

         (c) CONTEMPLATED AMENDMENTS. It is expressly contemplated that the
Board may amend the Plan in any respect the Board deems necessary or advisable
to provide eligible Employees with the maximum benefits provided or to be
provided under the provisions of the Code and the regulations promulgated
thereunder relating to Incentive Stock Options and/or to bring the Plan and/or
Incentive Stock Options granted under it into compliance therewith.

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

         (e) AMENDMENT OF STOCK AWARDS. The Board at any time, and from time to
time, may amend the terms of any one or more Stock Awards; provided, however,
that the rights under any Stock Award shall not be impaired by any such
amendment unless (i) the Company requests the consent of the Participant and
(ii) the Participant consents in writing.

13.      TERMINATION OR SUSPENSION OF THE PLAN.

         (a) PLAN TERM. The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on the day before the tenth
(10th) anniversary of the date the Plan is adopted by the Board or approved by
the stockholders of the Company, whichever is earlier. No Stock Awards may be
granted under the Plan while the Plan is suspended or after it is terminated.

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

14.      EFFECTIVE DATE OF PLAN.

         The Plan shall become effective as determined by the Board, but no
Stock Award shall be exercised (or, in the case of a stock bonus, shall be
granted) unless and until the Plan has been approved by the stockholders of the
Company, which approval shall be within twelve (12) months before or after the
date the Plan is adopted by the Board.

15.      CHOICE OF LAW.

         The law of the State of California shall govern all questions
concerning the construction, validity and interpretation of this Plan, without
regard to such state's conflict of laws rules.

                                       14

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