Document:

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                                                                     EXHIBIT 4.2

                             VINTAGE PETROLEUM, INC.

                          8 1/4% Senior Notes Due 2012

                          REGISTRATION RIGHTS AGREEMENT

                                                              New York, New York
                                                                  April 25, 2002

Deutsche Bank Securities Inc.
BMO Nesbitt Burns Corp.
As Representatives of the Initial Purchasers
c/o Deutsche Bank Securities Inc.
31 West 52nd Street
New York, New York 10019

Dear Sirs:

             Vintage Petroleum, Inc., a corporation organized under the laws of
Delaware (the "Company"), proposes to issue and sell to certain purchasers (the
"Initial Purchasers"), upon the terms set forth in a purchase agreement dated
April 25, 2002 (the "Purchase Agreement"), its 8 1/4% Senior Notes Due 2012 (the
"Securities") relating to the initial placement of the Securities (the "Initial
Placement"). To induce the Initial Purchasers to enter into the Purchase
Agreement, the Company agrees with you for your benefit and the benefit of the
holders from time to time of the Securities (including the Initial Purchasers)
(each a "Holder" and, together, the "Holders"), as follows:

             1. Definitions. Capitalized terms used herein without definition
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shall have the respective meanings set forth in the Purchase Agreement. As used
in this Agreement, the following capitalized defined terms shall have the
following meanings:

             "Act" shall mean the Securities Act of 1933, as amended, and the
rules and regulations of the Commission promulgated thereunder.

             "Affiliate" of any specified person shall mean any other person
that, directly or indirectly, is in control of, is controlled by, or is under
common control with, such specified person. For purposes of this definition,
control of a person shall mean the power, direct or indirect, to direct or cause
the direction of the management and policies of such person whether

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by contract or otherwise; and the terms "controlling" and "controlled" shall
have meanings correlative to the foregoing.

             "Broker-Dealer" shall mean any broker or dealer registered as such
under the Exchange Act.

             "Business Day" shall mean any day other than a Saturday, a Sunday
or a legal holiday or a day on which banking institutions or trust companies are
authorized or obligated by law to close in New York City.

             "Commission" shall mean the Securities and Exchange Commission.

             "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated thereunder.

             "Exchange Offer Prospectus" shall mean the prospectus included in
the Exchange Offer Registration Statement, as amended or supplemented by any
prospectus supplement, with respect to the terms of the offering of any portion
of the New Securities covered by such Exchange Offer Registration Statement, and
all amendments and supplements thereto and all material incorporated by
reference therein.

             "Exchange Offer Registration Period" shall mean the 180-day period
following the consummation of the Registered Exchange Offer, exclusive of any
period during which any stop order shall be in effect suspending the
effectiveness of the Exchange Offer Registration Statement.

             "Exchange Offer Registration Statement" shall mean a registration
statement of the Company on an appropriate form under the Act with respect to
the Registered Exchange Offer, all amendments and supplements to such
registration statement, including post-effective amendments thereto, in each
case including the Exchange Offer Prospectus contained therein, all exhibits
thereto and all material incorporated by reference therein.

             "Exchanging Dealer" shall mean any Holder (which may include any
Initial Purchaser) that is a Broker-Dealer and elects to exchange for New
Securities any Securities that it acquired for its own account as a result of
market-making activities or other trading activities (but not directly from the
Company or any Affiliate of the Company).

             "Holder" shall have the meaning set forth in the preamble hereto.

             "Indenture" shall mean the Indenture relating to the Securities,
dated as of May 2, 2002, between the Company and JPMorgan Chase Bank, as
trustee, as the same may be amended from time to time in accordance with the
terms thereof.

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             "Initial Placement" shall have the meaning set forth in the
preamble hereto.

             "Initial Purchaser" shall have the meaning set forth in the
preamble hereto.

             "Losses" shall have the meaning set forth in Section 6(d) hereof.

             "Majority Holders" shall mean the Holders of a majority of the
aggregate principal amount of Securities registered under a Registration
Statement.

             "Managing Underwriters" shall mean the investment banker or
investment bankers and manager or managers that shall administer an underwritten
offering.

             "New Securities" shall mean debt securities of the Company
identical in all material respects to the Securities (except that the interest
rate step-up provisions and the transfer restrictions shall be modified or
eliminated, as appropriate) and to be issued under the Indenture or the New
Securities Indenture.

             "New Securities Indenture" shall mean an indenture between the
Company and the New Securities Trustee, identical in all material respects to
the Indenture (except that the interest rate step-up provisions will be modified
or eliminated, as appropriate).

             "New Securities Trustee" shall mean a bank or trust company
reasonably satisfactory to the Initial Purchasers, as trustee with respect to
the New Securities under the New Securities Indenture.

             "Prospectus" shall mean the prospectus included in any Registration
Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A under the Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Securities or the New Securities covered by such
Registration Statement, and all amendments and supplements thereto and all
material incorporated by reference therein.

             "Purchase Agreement" shall have the meaning set forth in the
preamble hereto.

             "Registered Exchange Offer" shall mean the proposed offer of the
Company to issue and deliver to the Holders of the Securities that are not
prohibited by any law or policy of the Commission from participating in such
offer, in exchange for the Securities, a like aggregate principal amount of the
New Securities.

             "Registration Statement" shall mean any Exchange Offer Registration
Statement or Shelf Registration Statement that covers any of the Securities or
the New Securities pursuant

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to the provisions of this Agreement, any amendments and supplements to such
registration statement, including post-effective amendments (in each case
including the Prospectus contained therein), all exhibits thereto and all
material incorporated by reference therein.

             "Securities" shall have the meaning set forth in the preamble
hereto.

             "Shelf Registration" shall mean a registration effected pursuant to
Section 3 hereof.

             "Shelf Registration Period" has the meaning set forth in Section
3(b) hereof.

             "Shelf Registration Statement" shall mean a "shelf" registration
statement of the Company pursuant to the provisions of Section 3 hereof which
covers some or all of the Securities or New Securities, as applicable, on an
appropriate form under Rule 415 under the Act, or any similar rule that may be
adopted by the Commission, amendments and supplements to such registration
statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all material incorporated
by reference therein.

             "Trustee" shall mean the trustee with respect to the Securities
under the Indenture.

             "underwriter" shall mean any underwriter of Securities in
connection with an offering thereof under a Shelf Registration Statement.

             2. Registered Exchange Offer. (a) The Company shall prepare and,
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not later than 90 days following the date of the original issuance of the
Securities, shall file with the Commission the Exchange Offer Registration
Statement with respect to the Registered Exchange Offer. The Company shall cause
the Exchange Offer Registration Statement to become effective under the Act
within 165 days of the date of the original issuance of the Securities.

             (b) Upon the effectiveness of the Exchange Offer Registration
Statement, the Company shall promptly commence the Registered Exchange Offer, it
being the objective of such Registered Exchange Offer to enable each Holder
electing to exchange Securities for New Securities (assuming that such Holder is
not an Affiliate of the Company, acquires the New Securities in the ordinary
course of such Holder's business, has no arrangements with any person to
participate in the distribution of the New Securities and is not prohibited by
any law or policy of the Commission from participating in the Registered
Exchange Offer) to trade such New Securities from and after their receipt
without any limitations or restrictions under the Act and without material
restrictions under the securities laws of a substantial proportion of the
several states of the United States.

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             (c)   In connection with the Registered Exchange Offer, the Company
shall:

             (i)   mail to each Holder a copy of the Prospectus forming part of
the Exchange Offer Registration Statement, together with an appropriate letter
of transmittal and related documents;

             (ii) keep the Registered Exchange Offer open for not less than 20
Business Days and not more than 30 Business Days after the date notice thereof
is mailed to the Holders (or, in each case, longer if required by applicable
law);

             (iii) use its best efforts to keep the Exchange Offer Registration
Statement continuously effective, supplemented and amended as required, under
the Act to ensure that it is available for sales of New Securities by Exchanging
Dealers during the Exchange Offer Registration Period;

             (iv)  utilize the services of a depositary for the Registered
Exchange Offer with an address in the Borough of Manhattan in New York City,
which may be the Trustee, the New Securities Trustee or an Affiliate of either
of them;

             (v)   permit Holders to withdraw tendered Securities at any time
prior to the close of business, New York time, on the last Business Day on which
the Registered Exchange Offer is open;

             (vi)  prior to effectiveness of the Exchange Offer Registration
Statement, if requested or required by the Commission, provide a supplemental
letter to the Commission (A) stating that the Company is conducting the
Registered Exchange Offer in reliance on the position of the Commission in Exxon
                                                                           -----
Capital Holdings Corporation (pub. avail. May 13, 1988) and Morgan Stanley and
----------------------------                                ------------------
Co., Inc. (pub. avail. June 5, 1991); and (B) including a representation that
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the Company has not entered into any arrangement or understanding with any
person to distribute the New Securities to be received in the Registered
Exchange Offer and that, to the best of the Company's information and belief,
each Holder participating in the Registered Exchange Offer is acquiring the New
Securities in the ordinary course of business and has no arrangement or
understanding with any person to participate in the distribution of the New
Securities; and

             (vii) comply in all material respects with all applicable laws.

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             (d)   As soon as practicable after the close of the Registered
Exchange Offer, the Company shall:

             (i)   accept for exchange all Securities tendered and not validly
       withdrawn pursuant to the Registered Exchange Offer;

             (ii)  deliver to the Trustee for cancelation in accordance with
       Section 4(s) all Securities so accepted for exchange; and

             (iii) promptly cause the New Securities Trustee to authenticate and
       deliver to each Holder of Securities a principal amount of New Securities
       equal to the principal amount of the Securities of such Holder so
       accepted for exchange.

             (e)   Each Holder hereby acknowledges and agrees that any such
Holder using the Registered Exchange Offer to participate in a distribution of
the New Securities (x) could not under Commission policy as in effect on the
date of this Agreement rely on the position of the Commission in Morgan Stanley
                                                                 --------------
and Co., Inc. (pub. avail. June 5, 1991) and Exxon Capital Holdings Corporation
------------                                 ----------------------------------
(pub. avail. May 13, 1988), as interpreted in the Commission's letter to
Shearman & Sterling dated July 2, 1993 and similar no-action letters; and (y)
must comply with the registration and prospectus delivery requirements of the
Act in connection with any secondary resale transaction which must be covered by
an effective registration statement containing the selling security holder
information required by Item 507 or 508, as applicable, of Regulation S-K under
the Act if the resales are of New Securities obtained by such Holder in exchange
for Securities acquired by such Holder directly from the Company or one of its
Affiliates. Accordingly, each Holder participating in the Registered Exchange
Offer shall be required to represent to the Company that, at the time of the
consummation of the Registered Exchange Offer:

             (i)   any New Securities received by such Holder will be acquired
       in the ordinary course of business;

             (ii)  such Holder will have no arrangement or understanding with
       any person to participate in the distribution of the Securities or the
       New Securities within the meaning of the Act; and

             (iii) such Holder is not an Affiliate of the Company.

             (f)   If any Initial Purchaser determines that it is not eligible
to participate in the Registered Exchange Offer with respect to the exchange of
Securities constituting any portion of an unsold allotment, at the request of
such Initial Purchaser, the Company shall issue and deliver to such Initial
Purchaser or the person purchasing New Securities registered under a Shelf
Registration Statement as contemplated by Section 3 hereof from such Initial
Purchaser, in

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exchange for such Securities, a like principal amount of New Securities. The
Company shall use its best efforts to cause the CUSIP Service Bureau to issue
the same CUSIP number for such New Securities as for New Securities issued
pursuant to the Registered Exchange Offer.

             3. Shelf Registration. (a) If (i) due to any change in law or
                ------------------
applicable interpretations thereof by the Commission's staff, the Company
determines upon advice of its outside counsel that it is not permitted to effect
the Registered Exchange Offer as contemplated by Section 2 hereof; (ii) for any
other reason the Exchange Offer Registration Statement is not declared effective
within 165 days of the date of original issuance of the Securities or the
Registered Exchange Offer is not consummated within 45 days after the date the
Exchange Offer Registration Statement is declared effective under the Act; (iii)
any Initial Purchaser so requests with respect to Securities that are not
eligible to be exchanged for New Securities in the Registered Exchange Offer and
that are held by it following consummation of the Registered Exchange Offer;
(iv) any Holder (other than an Initial Purchaser) is not eligible to participate
in the Registered Exchange Offer or does not receive freely tradeable New
Securities in the Registered Exchange Offer other than by reason of such Holder
being an Affiliate of the Company; or (v) in the case of any Initial Purchaser
that participates in the Registered Exchange Offer or acquires New Securities
pursuant to Section 2(f) hereof, such Initial Purchaser does not receive freely
tradeable New Securities in exchange for Securities constituting any portion of
an unsold allotment (it being understood that (x) the requirement that an
Initial Purchaser deliver a Prospectus containing the information required by
Item 507 or 508 of Regulation S-K under the Act in connection with sales of New
Securities acquired in exchange for such Securities shall result in such New
Securities being not "freely tradeable"; and (y) the requirement that an
Exchanging Dealer deliver an Exchange Offer Prospectus in connection with sales
of New Securities acquired in the Registered Exchange Offer in exchange for
Securities acquired as a result of market-making activities or other trading
activities shall not result in such New Securities being not "freely
tradeable"), the Company shall effect a Shelf Registration Statement in
accordance with subsection (b) below.

             (b) (i) The Company shall as promptly as practicable (but in no
event more than 30 days after so required or requested pursuant to this Section
3), file with the Commission and thereafter shall cause to be declared effective
under the Act a Shelf Registration Statement relating to the offer and sale of
the Securities or the New Securities, as applicable, by the Holders thereof from
time to time in accordance with the methods of distribution elected by such
Holders and set forth in such Shelf Registration Statement; provided, however,
                                                            --------  -------
that no Holder (other than an Initial Purchaser) shall be entitled to have the
Securities held by it covered by such Shelf Registration Statement unless such
Holder agrees in writing to be bound by all of the provisions of this Agreement
applicable to such Holder; and provided further, that with respect to New
                               -------- -------
Securities received by an Initial Purchaser in exchange for Securities
constituting any portion of an unsold allotment, the Company may, if permitted
by current interpretations by the Commission's staff, file a post-effective
amendment to the Exchange Offer Registration Statement containing the
information required by Item 507 or 508 of Regulation S-K, as

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applicable, in satisfaction of its obligations under this subsection with
respect thereto, and any such Exchange Offer Registration Statement, as so
amended, shall be referred to herein as, and governed by the provisions herein
applicable to, a Shelf Registration Statement.

             (ii) The Company shall use its best efforts to keep the Shelf
Registration Statement continuously effective, supplemented and amended as
required by the Act, in order to permit the Prospectus forming part thereof to
be usable by Holders for a period of two years from the date the Shelf
Registration Statement is declared effective by the Commission or such shorter
period that will terminate when all the Securities or New Securities, as
applicable, covered by the Shelf Registration Statement have been sold pursuant
to the Shelf Registration Statement (in any such case, such period being called
the "Shelf Registration Period"). The Company shall be deemed not to have used
its best efforts to keep the Shelf Registration Statement effective during the
requisite period if it voluntarily takes any action that would result in Holders
of Securities covered thereby not being able to offer and sell such Securities
during that period, unless (A) such action is required by applicable law; or (B)
such action is taken by the Company in good faith and for valid business reasons
(not including avoidance of the Company's obligations hereunder), including the
acquisition or divestiture of assets, so long as the Company promptly thereafter
complies with the requirements of Section 4(k) hereof, if applicable.

             4.   Additional Registration Procedures. In connection with any
                  ----------------------------------
Shelf Registration Statement and, to the extent applicable, any Exchange Offer
Registration Statement, the following provisions shall apply:

             (a)  The Company shall:

             (i)  furnish to you, not less than five Business Days prior to the
      filing thereof with the Commission, a copy of any Exchange Offer
      Registration Statement and any Shelf Registration Statement, and each
      amendment thereof and each amendment or supplement, if any, to the
      Prospectus included therein (including all documents incorporated by
      reference therein after the initial filing) and shall use its best efforts
      to reflect in each such document, when so filed with the Commission, such
      comments as you reasonably propose;

             (ii) include the information set forth in Annex A hereto on the
      facing page of the Exchange Offer Registration Statement, in Annex B
      hereto in the forepart of the Exchange Offer Registration Statement in a
      section setting forth details of the Exchange Offer, in Annex C hereto in
      the underwriting or plan of distribution section of the Prospectus
      contained in the Exchange Offer Registration Statement, and in Annex D
      hereto in the letter of transmittal delivered pursuant to the Registered
      Exchange Offer;

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                  (iii) if requested by an Initial Purchaser, include the
         information required by Item 507 or 508 of Regulation S-K, as
         applicable, in the Prospectus contained in the Exchange Offer
         Registration Statement; and

                  (iv)  in the case of a Shelf Registration Statement, include
         the names of the Holders that propose to sell Securities pursuant to
         the Shelf Registration Statement as selling security holders.

                  (b)   The Company shall ensure that:

                  (i)   any Registration Statement and any amendment thereto and
         any Prospectus forming part thereof and any amendment or supplement
         thereto complies in all material respects with the Act and the rules
         and regulations thereunder;

                  (ii)  any Registration Statement and any amendment thereto
         does not, when it becomes effective, contain an untrue statement of a
         material fact or omit to state a material fact required to be stated
         therein or necessary to make the statements therein not misleading; and

                  (iii) any Prospectus forming part of any Registration
         Statement, and any amendment or supplement to such Prospectus, does not
         include an untrue statement of a material fact or omit to state a
         material fact necessary in order to make the statements therein, in the
         light of the circumstances under which they were made, not misleading.

                  (c)   The Company shall advise you, the Holders of Securities
covered by any Shelf Registration Statement and any Exchanging Dealer under any
Exchange Offer Registration Statement that has provided in writing to the
Company a telephone or facsimile number and address for notices, and, if
requested by you or any such Holder or Exchanging Dealer, shall confirm such
advice in writing (which notice pursuant to clauses (ii) through (v) hereof
shall be accompanied by an instruction to suspend the use of the Prospectus
until the Company shall have remedied the basis for such suspension):

                  (i)   when a Registration Statement and any amendment thereto
         has been filed with the Commission and when the Registration Statement
         or any post-effective amendment thereto has become effective;

                  (ii)  of any request by the Commission for any amendment or
         supplement to the Registration Statement or the Prospectus or for
         additional information;

                  (iii) of the issuance by the Commission of any stop order
         suspending the effectiveness of the Registration Statement or the
         initiation of any proceedings for that purpose;

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                  (iv) of the receipt by the Company of any notification with
         respect to the suspension of the qualification of the securities
         included therein for sale in any jurisdiction or the initiation of any
         proceeding for such purpose; and

                  (v)  of the happening of any event that requires any change in
         the Registration Statement or the Prospectus so that, as of such date,
         the statements therein are not misleading and do not omit to state a
         material fact required to be stated therein or necessary to make the
         statements therein (in the case of the Prospectus, in the light of the
         circumstances under which they were made) not misleading.

                  (d)  The Company shall use its best efforts to obtain the
withdrawal of any order suspending the effectiveness of any Registration
Statement or the qualification of the securities therein for sale in any
jurisdiction at the earliest possible time.

                  (e)  The Company shall furnish to each Holder of Securities
covered by any Shelf Registration Statement, without charge, at least one copy
of such Shelf Registration Statement and any post-effective amendment thereto,
including all material incorporated therein by reference, and, if the Holder so
requests in writing, all exhibits thereto (including exhibits incorporated by
reference therein).

                  (f)  The Company shall, during the Shelf Registration Period,
deliver to each Holder of Securities covered by any Shelf Registration
Statement, without charge, as many copies of the Prospectus (including each
preliminary Prospectus) included in such Shelf Registration Statement and any
amendment or supplement thereto as such Holder may reasonably request. The
Company consents to the use of the Prospectus or any amendment or supplement
thereto by each of the selling Holders of Securities in connection with the
offering and sale of the Securities covered by the Prospectus, or any amendment
or supplement thereto, included in the Shelf Registration Statement.

                  (g)  The Company shall furnish to each Exchanging Dealer which
so requests, without charge, at least one copy of the Exchange Offer
Registration Statement and any post-effective amendment thereto, including all
material incorporated by reference therein, and, if the Exchanging Dealer so
requests in writing, all exhibits thereto (including exhibits incorporated by
reference therein).

                  (h)  The Company shall promptly deliver to each Initial
Purchaser, each Exchanging Dealer and each other person required to deliver a
Prospectus during the Exchange Offer Registration Period, without charge, as
many copies of the Prospectus included in such Exchange Offer Registration
Statement and any amendment or supplement thereto as any such person may
reasonably request. The Company consents to the use of the Prospectus or any
amendment or supplement thereto by any Initial Purchaser, any Exchanging Dealer
and any such

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other person that may be required to deliver a Prospectus following the
Registered Exchange Offer in connection with the offering and sale of the New
Securities covered by the Prospectus, or any amendment or supplement thereto,
included in the Exchange Offer Registration Statement.

                  (i)  Prior to the Registered Exchange Offer or any other
offering of Securities pursuant to any Registration Statement, the Company shall
arrange, if necessary, for the qualification of the Securities or the New
Securities for sale under the laws of such jurisdictions as any Holder shall
reasonably request and will maintain such qualification in effect so long as
required; provided that in no event shall the Company be obligated to qualify to
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do business in any jurisdiction where it is not then so qualified or to take any
action that would subject it to service of process in suits, other than those
arising out of the Initial Placement, the Registered Exchange Offer or any
offering pursuant to a Shelf Registration Statement, in any such jurisdiction
where it is not then so subject.

                  (j)  The Company shall cooperate with the Holders of
Securities to facilitate the timely preparation and delivery of certificates
representing New Securities or Securities to be issued or sold pursuant to any
Registration Statement free of any restrictive legends and in such denominations
and registered in such names as Holders may request.

                  (k)  Upon the occurrence of any event contemplated by
subsections (c)(ii) through (v) above, the Company shall promptly prepare a
post-effective amendment to the applicable Registration Statement or an
amendment or supplement to the related Prospectus or file any other required
document so that, as thereafter delivered to Initial Purchasers of the
securities included therein, the Prospectus will not include an untrue statement
of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading. In such circumstances, the period of effectiveness of the
Exchange Offer Registration Statement provided for in Section 2 and the Shelf
Registration Statement provided for in Section 3(b) shall each be extended by
the number of days from and including the date of the giving of a notice of
suspension pursuant to Section 4(c) to and including the date when the Initial
Purchasers, the Holders of the Securities and any known Exchanging Dealer shall
have received such amended or supplemented Prospectus pursuant to this Section.

                  (l)  Not later than the effective date of any Registration
Statement, the Company shall provide a CUSIP number for the Securities or the
New Securities, as the case may be, registered under such Registration Statement
and provide the Trustee with printed certificates for such Securities or New
Securities, in a form eligible for deposit with The Depository Trust Company.

                  (m)  The Company shall comply with all applicable rules and
regulations of the Commission and shall make generally available to its security
holders as soon as practicable after

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the effective date of the applicable Registration Statement an earnings
statement satisfying the provisions of Section 11(a) of the Act.

                  (n)  The Company shall cause the Indenture or the New
Securities Indenture, as the case may be, to be qualified under the Trust
Indenture Act in a timely manner.

                  (o)  The Company may require each Holder of Securities to be
sold pursuant to any Shelf Registration Statement to furnish to the Company such
information regarding the Holder and the distribution of such Securities as the
Company may from time to time reasonably require for inclusion in such
Registration Statement. The Company may exclude from such Shelf Registration
Statement the Securities of any Holder that unreasonably fails to furnish such
information within a reasonable time after receiving such request.

                  (p)  In the case of any Shelf Registration Statement, the
Company shall enter into such agreements (including if requested an underwriting
agreement in customary form) and take all other appropriate actions in order to
expedite or facilitate the registration or the disposition of the Securities,
and in connection therewith, if an underwriting agreement is entered into, cause
the same to contain indemnification provisions and procedures no less favorable
than those set forth in Section 6 (or such other provisions and procedures
acceptable to the Majority Holders and the Managing Underwriters, if any) with
respect to all parties to be indemnified pursuant to Section 6.

                  (q)  In the case of any Shelf Registration Statement, the
Company shall:

                  (i)  make reasonably available for inspection by the Holders
         of Securities to be registered thereunder, any underwriter
         participating in any disposition pursuant to such Registration
         Statement, and any attorney, accountant or other agent retained by the
         Holders or any such underwriter all relevant financial and other
         records, pertinent corporate documents and properties of the Company
         and its subsidiaries;

                  (ii) cause the Company's officers, directors and employees to
         supply all relevant information reasonably requested by the Holders or
         any such underwriter, attorney, accountant or agent in connection with
         any such Registration Statement as is customary for similar due
         diligence examinations; provided, however, that any information that is
                                 --------  -------
         designated in writing by the Company, in good faith, as confidential at
         the time of delivery of such information shall be kept confidential by
         the Holders or any such underwriter, attorney, accountant or agent,
         unless such disclosure is made in connection with a court proceeding or
         required by law, or such information becomes available to the public
         generally or through a third party without an accompanying obligation
         of confidentiality;

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                  (iii) make such representations and warranties to the Holders
         of Securities registered thereunder and the underwriters, if any, in
         form, substance and scope as are customarily made by issuers to
         underwriters in primary underwritten offerings and covering matters
         including, but not limited to, those set forth in the Purchase
         Agreement;

                  (iv)  obtain opinions of counsel to the Company and updates
         thereof (which counsel and opinions (in form, scope and substance)
         shall be reasonably satisfactory to the Managing Underwriters, if any)
         addressed to each selling Holder and the underwriters, if any, covering
         such matters as are customarily covered in opinions requested in
         underwritten offerings and such other matters as may be reasonably
         requested by such Holders and underwriters;

                  (v)   to the extent permitted by the professional standards
         governing the accounting profession at the time, obtain "cold comfort"
         letters and updates thereof from the independent certified public
         accountants of the Company (and, if necessary, any other independent
         certified public accountants of any subsidiary of the Company or of any
         business acquired by the Company for which financial statements and
         financial data are, or are required to be, included in the Registration
         Statement), addressed to each selling Holder of Securities registered
         thereunder and the underwriters, if any, in customary form and covering
         matters of the type customarily covered in "cold comfort" letters in
         connection with primary underwritten offerings; and

                  (vi)  deliver such documents and certificates as may be
         reasonably requested by the Majority Holders and the Managing
         Underwriters, if any, including those to evidence compliance with
         Section 4(k) and with any customary conditions contained in the
         underwriting agreement or other agreement entered into by the Company.

The actions set forth in clauses (iii), (iv), (v) and (vi) of this Section shall
be performed at (A) the effectiveness of such Registration Statement and each
post-effective amendment thereto; and (B) each closing under any underwriting or
similar agreement as and to the extent required thereunder.

                  (r)   In the case of any Exchange Offer Registration
Statement, the Company shall:

                  (i)   make reasonably available for inspection by such Initial
         Purchaser, and any attorney, accountant or other agent retained by such
         Initial Purchaser, all relevant financial and other records, pertinent
         corporate documents and properties of the Company and its subsidiaries;

                  (ii)  cause the Company's officers, directors and employees to
         supply all relevant information reasonably requested by such Initial
         Purchaser or any such attorney, accountant or agent in connection with
         any such Registration Statement as is customary

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         for similar due diligence examinations; provided, however, that any
                                                 --------  -------
         information that is designated in writing by the Company, in good
         faith, as confidential at the time of delivery of such information
         shall be kept confidential by such Initial Purchaser or any such
         attorney, accountant or agent, unless such disclosure is made in
         connection with a court proceeding or required by law, or such
         information becomes available to the public generally or through a
         third party without an accompanying obligation of confidentiality;

                  (iii) make such representations and warranties to such Initial
         Purchaser, in form, substance and scope as are customarily made by
         issuers to underwriters in primary underwritten offerings and covering
         matters including, but not limited to, those set forth in the Purchase
         Agreement;

                  (iv)  obtain opinions of counsel to the Company and updates
         thereof (which counsel and opinions (in form, scope and substance)
         shall be reasonably satisfactory to such Initial Purchaser and its
         counsel) addressed to such Initial Purchaser, covering such matters as
         are customarily covered in opinions requested in underwritten offerings
         and such other matters as may be reasonably requested by such Initial
         Purchaser or its counsel;

                  (v)   to the extent permitted by the professional standards
         governing the accounting profession at the time, obtain "cold comfort"
         letters and updates thereof from the independent certified public
         accountants of the Company (and, if necessary, any other independent
         certified public accountants of any subsidiary of the Company or of any
         business acquired by the Company for which financial statements and
         financial data are, or are required to be, included in the Registration
         Statement), addressed to such Initial Purchaser, in customary form and
         covering matters of the type customarily covered in "cold comfort"
         letters in connection with primary underwritten offerings, or if
         requested by such Initial Purchaser or its counsel in lieu of a "cold
         comfort" letter, an agreed-upon procedures letter under Statement on
         Auditing Standards No. 35, covering matters requested by such Initial
         Purchaser or its counsel; and

                  (vi)  deliver such documents and certificates as may be
         reasonably requested by such Initial Purchaser or its counsel,
         including those to evidence compliance with Section 4(k) and with
         conditions customarily contained in underwriting agreements.

The foregoing actions set forth in clauses (iii), (iv), (v) and (vi) of this
Section shall be performed at the close of the Registered Exchange Offer and the
effective date of any post-effective amendment to the Exchange Offer
Registration Statement.

                  (s)   If a Registered Exchange Offer is to be consummated,
upon delivery of the Securities by Holders to the Company (or to such other
person as directed by the Company) in exchange for the New Securities, the
Company shall mark, or cause to be marked, on the

                                       14

<PAGE>

Securities so exchanged that such Securities are being canceled in exchange for
the New Securities. In no event shall the Securities be marked as paid or
otherwise satisfied.

                  (t)   The Company will use its best efforts (i) if the
Securities have been rated prior to the initial sale of such Securities, to
confirm such ratings will apply to the Securities or the New Securities, as the
case may be, covered by a Registration Statement; or (ii) if the Securities were
not previously rated, to cause the Securities covered by a Registration
Statement to be rated with at least one nationally recognized statistical rating
agency, if so requested by Majority Holders with respect to the related
Registration Statement or by any Managing Underwriters.

                  (u)   In the event that any Broker-Dealer shall underwrite any
Securities or participate as a member of an underwriting syndicate or selling
group or "assist in the distribution" (within the meaning of the Rules of Fair
Practice and the By-Laws of the National Association of Securities Dealers,
Inc.) thereof, whether as a Holder of such Securities or as an underwriter, a
placement or sales agent or a broker or dealer in respect thereof, or otherwise,
assist such Broker-Dealer in complying with the requirements of such Rules and
By-Laws, including, without limitation, by:

                  (i)   if such Rules or By-Laws shall so require, engaging a
         "qualified independent underwriter" (as defined in such Rules) to
         participate in the preparation of the Registration Statement, to
         exercise usual standards of due diligence with respect thereto and, if
         any portion of the offering contemplated by such Registration Statement
         is an underwritten offering or is made through a placement or sales
         agent, to recommend the yield of such Securities;

                  (ii)  indemnifying any such qualified independent underwriter
         to the extent of the indemnification of underwriters
         provided in Section 6 hereof; and

                  (iii) providing such information to such Broker-Dealer as may
         be required in order for such Broker-Dealer to comply with the
         requirements of such Rules.

                  (v)   The Company shall use its best efforts to take all other
steps necessary to effect the registration of the Securities or the New
Securities, as the case may be, covered by a Registration Statement.

                  5. Registration Expenses. The Company shall bear all expenses
                     ---------------------
incurred in connection with the performance of its obligations under Sections 2,
3 and 4 hereof and, in the event of any Shelf Registration Statement, will
reimburse the Holders for the reasonable fees and disbursements of one firm or
counsel designated by the Majority Holders to act as counsel for the Holders in
connection therewith, and, in the case of any Exchange Offer Registration
Statement, will reimburse the Initial Purchasers for the reasonable fees and
disbursements of counsel acting in connection therewith.

                                       15

<PAGE>

                  6. Indemnification and Contribution. (a) The Company agrees to
                     --------------------------------
indemnify and hold harmless each Holder of Securities or New Securities, as the
case may be, covered by any Registration Statement (including each Initial
Purchaser and, with respect to any Prospectus delivery as contemplated in
Section 4(h) hereof, each Exchanging Dealer), the directors, officers, employees
and agents of each such Holder and each person who controls any such Holder
within the meaning of either the Act or the Exchange Act against any and all
losses, claims, damages or liabilities, joint or several, to which they or any
of them may become subject under the Act, the Exchange Act or other Federal or
state statutory law or regulation, at common law or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement as originally filed or in
any amendment thereof, or in any preliminary Prospectus or the Prospectus, or in
any amendment thereof or supplement thereto, or arise out of or are based upon
the 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
agrees to reimburse each such indemnified party, as incurred, for any legal or
other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
                                                             --------  -------
that the Company will not be liable in any case to the extent that any such
loss, claim, damage or liability arises out of or is based upon any such untrue
statement or alleged untrue statement or omission or alleged omission made
therein in reliance upon and in conformity with written information furnished to
the Company by or on behalf of any such Holder specifically for inclusion
therein. This indemnity agreement will be in addition to any liability which the
Company may otherwise have.

                  The Company also agrees to indemnify or contribute as provided
in Section 6(d) to Losses of each underwriter, if any, of Securities or New
Securities, as the case may be, registered under a Shelf Registration Statement,
their directors, officers, employees or agents and each
                  person who controls such underwriter on substantially the same
basis as that of the indemnification of the Initial Purchasers and the selling
Holders provided in this Section 6(a) and shall, if requested by any Holder,
enter into an underwriting agreement reflecting such agreement, as provided in
Section 4(p) hereof.

                  (b) Each Holder of securities covered by a Registration
Statement (including each Initial Purchaser and, with respect to any Prospectus
delivery as contemplated in Section 4(h) hereof, each Exchanging Dealer)
severally and not jointly agrees to indemnify and hold harmless the Company,
each of its directors, each of its officers who signs such Registration
Statement and each person who controls the Company within the meaning of either
the Act or the Exchange Act, to the same extent as the foregoing indemnity from
the Company to each such Holder, but only with reference to written information
relating to such Holder furnished to the Company by or on behalf of such Holder
specifically for inclusion in the documents referred to in the foregoing
indemnity. This indemnity agreement will be in addition to any liability which
any such Holder may otherwise have.

                                       16

<PAGE>

                  (c) Promptly after receipt by an indemnified party under this
Section of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party
under this Section, notify the indemnifying party in writing of the commencement
thereof; but the failure so to notify the indemnifying party (i) will not
relieve it from liability under paragraph (a) or (b) above unless and to the
extent it did not otherwise learn of such action and such failure results in the
forfeiture by the indemnifying party of substantial rights and defenses; and
(ii) will not, in any event, relieve the indemnifying party from any obligations
to any indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint
counsel of the indemnifying party's choice at the indemnifying party's expense
to represent the indemnified party in any action for which indemnification is
sought (in which case the indemnifying party shall not thereafter be responsible
for the fees and expenses of any separate counsel retained by the indemnified
party or parties except as set forth below); provided, however, that such
                                             --------  -------
counsel shall be satisfactory to the indemnified party. Notwithstanding the
indemnifying party's election to appoint counsel to represent the indemnified
party in an action, the indemnified party shall have the right to employ
separate counsel (including local counsel), and the indemnifying party shall
bear the reasonable fees, costs and expenses of such separate counsel if (i) the
use of counsel chosen by the indemnifying party to represent the indemnified
party would present such counsel with a conflict of interest; (ii) the actual or
potential defendants in, or targets of, any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded that there may be legal defenses available to it
and/or other indemnified parties which are different from or additional to those
available to the indemnifying party; (iii) the indemnifying party shall not have
employed counsel satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after notice of the institution of
such action; or (iv) the indemnifying party shall authorize the indemnified
party to employ separate counsel at the expense of the indemnifying party. An
indemnifying party will not, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of
                  any judgment with respect to any pending or threatened claim,
action, suit or proceeding in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise or
consent includes an unconditional release of each indemnified party from all
liability arising out of such claim, action, suit or proceeding.

                  (d) In the event that the indemnity provided in paragraph (a)
or (b) of this Section is unavailable to or insufficient to hold harmless an
indemnified party for any reason, then each applicable indemnifying party shall
have a joint and several obligation to contribute to the aggregate losses,
claims, damages and liabilities (including legal or other expenses reasonably
incurred in connection with investigating or defending same) (collectively
"Losses") to which such indemnified party may be subject in such proportion as
is appropriate to reflect the relative benefits received by such indemnifying
party, on the one hand, and such indemnified party, on the other hand, from the
Initial Placement and the Registration Statement which resulted in such Losses;
provided, however, that in no case shall any Initial Purchaser or any subsequent
--------  -------
Holder

                                       17

<PAGE>

of any Security or New Security be responsible, in the aggregate, for any amount
in excess of the purchase discount or commission applicable to such Security, or
in the case of a New Security, applicable to the Security that was exchangeable
into such New Security, as set forth on the cover page of the Final Memorandum,
nor shall any underwriter be responsible for any amount in excess of the
underwriting discount or commission applicable to the securities purchased by
such underwriter under the Registration Statement which resulted in such Losses.
If the allocation provided by the immediately preceding sentence is unavailable
for any reason, the indemnifying party and the indemnified party shall
contribute in such proportion as is appropriate to reflect not only such
relative benefits but also the relative fault of such indemnifying party, on the
one hand, and such indemnified party, on the other hand, in connection with the
statements or omissions which resulted in such Losses as well as any other
relevant equitable considerations. Benefits received by the Company shall be
deemed to be equal to the sum of (x) the total net proceeds from the Initial
Placement (before deducting expenses) as set forth on the cover page of the
Final Memorandum and (y) the total amount of additional interest which the
Company was not required to pay as a result of registering the securities
covered by the Registration Statement which resulted in such Losses. Benefits
received by the Initial Purchasers shall be deemed to be equal to the total
purchase discounts and commissions as set forth on the cover page of the Final
Memorandum, and benefits received by any other Holders shall be deemed to be
equal to the value of receiving Securities or New Securities, as applicable,
registered under the Act. Benefits received by any underwriter shall be deemed
to be equal to the total underwriting discounts and commissions, as set forth on
the cover page of the Prospectus forming a part of the Registration Statement
which resulted in such Losses. Relative fault shall be determined by reference
to, among other things, whether any alleged untrue statement or omission relates
to information provided by the indemnifying party, on the one hand, or by the
indemnified party, on the other hand, the intent of the parties and their
relative knowledge, access to information and opportunity to correct or prevent
such untrue statement or omission. The parties agree that it would not be just
and equitable if contribution were determined by pro rata allocation (even if
the Holders were treated as one entity for such purpose) or any other method of
allocation which does not take account of the equitable considerations referred
to above. Notwithstanding the provisions of this paragraph (d), no person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section, each person who
controls a Holder within the meaning of either the Act or the Exchange Act and
each director, officer, employee and agent of such Holder shall have the same
rights to contribution as such Holder, and each person who controls the Company
within the meaning of either the Act or the Exchange Act, each officer of the
Company who shall have signed the Registration Statement and each director of
the Company shall have the same rights to contribution as the Company, subject
in each case to the applicable terms and conditions of this paragraph (d).

                  (e) The provisions of this Section will remain in full force
and effect, regardless of any investigation made by or on behalf of any Holder
or the Company or any of the directors,

                                       18

<PAGE>

officers, employees, agents or controlling persons referred to in this Section
hereof, and will survive the sale by a Holder of securities covered by a
Registration Statement.

          7.   Underwritten Registrations. (a) If any of the Securities or New
               --------------------------
Securities, as the case may be, covered by any Shelf Registration Statement are
to be sold in an underwritten offering, the Managing Underwriters shall be
selected by the Majority Holders; provided that the Majority Holders shall
consult with the Company about the selection of the Managing Underwriters in
advance of making such selection.

          (b)  No person may participate in any underwritten offering pursuant
to any Shelf Registration Statement, unless such Person (i) agrees to sell such
person's Securities or New Securities, as the case may be, on the basis
reasonably provided in any underwriting arrangements approved by the persons
entitled hereunder to approve such arrangements; and (ii) completes and executes
all questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting
arrangements.

          8.   No Inconsistent Agreements. The Company has not, as of the date
               --------------------------
hereof, entered into, nor shall it, on or after the date hereof, enter into, any
agreement with respect to its securities that is inconsistent with the rights
granted to the Holders herein or otherwise conflicts with the provisions hereof.

          9.   Amendments and Waivers. The provisions of this Agreement,
               ----------------------
including the provisions of this sentence, may not be amended, qualified,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the Company has obtained the written
consent of the Holders of at least a majority of the then outstanding aggregate
principal amount of Securities (or, after the consummation of any Registered
Exchange Offer in accordance with Section 2 hereof, of New Securities); provided
                                                                        --------
that, with respect to any matter that directly or indirectly affects the rights
of any Initial Purchaser hereunder, the Company shall obtain the written consent
of each such Initial Purchaser against which such amendment, qualification,
supplement, waiver or consent is to be effective. Notwithstanding the foregoing
(except the foregoing proviso), a waiver or consent to departure from the
provisions hereof with respect to a matter that relates exclusively to the
rights of Holders whose Securities or New Securities, as the case may be, are
being sold pursuant to a Registration Statement and that does not directly or
indirectly affect the rights of other Holders may be given by the Majority
Holders, determined on the basis of Securities or New Securities, as the case
may be, being sold rather than registered under such Registration Statement.

          10.  Notices. All notices and other communications provided for or
               -------
permitted hereunder shall be made in writing by hand-delivery, first-class mail,
telex, telecopier or air courier guaranteeing overnight delivery:

                                       19

<PAGE>

          (a)  if to a Holder, at the most current address given by such Holder
to the Company in accordance with the provisions of this Section, which address
initially is, with respect to each Holder, the address of such Holder maintained
by the Registrar under the Indenture, with a copy in like manner to Deutsche
Bank Securities Inc. at 31 West 52nd Street, New York, New York 10019, attention
of Thomas Cole (fax no.: (646) 324-7467) and to BMO Nesbitt Burns Corp. at 115
South LaSalle Street, 11 West, Chicago, Illinois 60603, attention of Mark Roche
(fax no.: (312) 461-4874);

          (b)  if to you, initially at the respective addresses set forth in the
Purchase Agreement; and

          (c)  if to the Company, initially at its address set forth in the
Purchase Agreement.

          All such notices and communications shall be deemed to have been duly
given when received.

          The Initial Purchasers or the Company by notice to the other parties
may designate additional or different addresses for subsequent notices or
communications.

          11.  Successors. This Agreement shall inure to the benefit of and be
               ----------
binding upon the successors and assigns of each of the parties, including,
without the need for an express assignment or any consent by the Company
thereto, subsequent Holders of Securities and the New Securities. The Company
hereby agrees to extend the benefits of this Agreement to any Holder of
Securities and the New Securities, and any such Holder may specifically enforce
the provisions of this Agreement as if an original party hereto.

          12.  Counterparts. This Agreement may be in signed counterparts, each
               ------------
of which shall an original and all of which together shall constitute one and
the same agreement.

          13.  Headings. The headings used herein are for convenience only and
               --------
shall not affect the construction hereof.

          14.  Applicable Law. This Agreement shall be governed by and construed
               --------------
in accordance with the laws of the State of New York applicable to contracts
made and to be performed in the State of New York.

          15.  Severability. In the event that any one of more of the provisions
               ------------
contained herein, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions hereof shall not be in any way impaired or affected
thereby, it being intended that all of the rights and privileges of the parties
shall be enforceable to the fullest extent permitted by law.

                                       20

<PAGE>

          16.  Securities Held by the Company, etc. Whenever the consent or
               ------------------------------------
approval of Holders of a specified percentage of principal amount of Securities
or New Securities is required hereunder, Securities or New Securities, as
applicable, held by the Company or its Affiliates shall be disregarded and
deemed not to be outstanding in determining whether such consent or approval was
given by the Holders of such required percentage.

                                       21

<PAGE>

          If the foregoing is in accordance with your understanding of our
agreement, please sign and return to us the enclosed duplicate hereof, whereupon
this letter and your acceptance shall represent a binding agreement among the
Company and the several Initial Purchasers.

                                          Very truly yours,

                                          VINTAGE PETROLEUM, INC.

                                          By: /s/ William C. Barnes
                                              -----------------------
                                              Name:  William C. Barnes
                                              Title: Executive Vice President

The foregoing Agreement is hereby confirmed and
accepted as of the date first above written.

DEUTSCHE BANK SECURITIES INC.

By: /s/ Thomas Cole
   ------------------------------
   Name:  Thomas Cole
   Title: Managing Director

By: /s/ Garry Herdler
   ------------------------------
   Name:  Garry Herdler
   Title: Director

BMO NESBITT BURNS CORP.

By: /s/ William J. Moser, Jr.
   ------------------------------
   Name:  William J. Moser, Jr.
   Title: Authorized Signatory

For themselves and the other several Initial
Purchasers named in Schedule I to
the Purchase Agreement.

                                       22

<PAGE>

ANNEX A

Each Broker-Dealer that receives New Securities for its own account pursuant to
the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such New Securities. The Letter of Transmittal
states that by so acknowledging and by delivering a prospectus, a Broker-Dealer
will not be deemed to admit that it is an "underwriter" within the meaning of
the Securities Act. This Prospectus, as it may be amended or supplemented from
time to time, may be used by a Broker-Dealer in connection with resales of New
Securities received in exchange for Securities where such Securities were
acquired by such Broker-Dealer as a result of market-making activities or other
trading activities. The Company has agreed that, starting on the Expiration Date
(as defined herein) and ending on the close of business 180 days after the
Expiration Date, it will make this Prospectus available to any Broker-Dealer for
use in connection with any such resale. See "Plan of Distribution".

                                       23

<PAGE>

ANNEX B

Each Broker-Dealer that receives New Securities for its own account in exchange
for Securities, where such Securities were acquired by such Broker-Dealer as a
result of market-making activities or other trading activities, must acknowledge
that it will deliver a prospectus in connection with any resale of such New
Securities. See "Plan of Distribution".

<PAGE>

ANNEX C

                              PLAN OF DISTRIBUTION

          Each Broker-Dealer that receives New Securities for its own account
pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such New Securities. This
Prospectus, as it may be amended or supplemented from time to time, may be used
by a Broker-Dealer in connection with resales of New Securities received in
exchange for Securities where such Securities were acquired as a result of
market-making activities or other trading activities. The Company has agreed
that, starting on the Expiration Date and ending on the close of business 180
days after the Expiration Date, it will make this Prospectus, as amended or
supplemented, available to any Broker-Dealer for use in connection with any such
resale. In addition, until __________, 200__, all dealers effecting transactions
in the New Securities may be required to deliver a prospectus.

          The Company will not receive any proceeds from any sale of New
Securities by brokers-dealers. New Securities received by Broker-Dealers for
their own account pursuant to the Exchange Offer may be sold from time to time
in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the New Securities or a
combination of such methods of resale, at market prices prevailing at the time
of resale, at prices related to such prevailing market prices or negotiated
prices. Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such Broker-Dealer and/or the purchasers of any such New
Securities. Any Broker-Dealer that resells New Securities that were received by
it for its own account pursuant to the Exchange Offer and any broker or dealer
that participates in a distribution of such New Securities may be deemed to be
an "underwriter" within the meaning of the Securities Act and any profit
resulting from any such resale of New Securities and any commissions or
concessions received by any such persons may be deemed to be underwriting
compensation under the Securities Act. The Letter of Transmittal states that by
acknowledging that it will deliver and by delivering a prospectus, a
Broker-Dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act.

          For a period of 180 days after the Expiration Date, the Company will
promptly send additional copies of this Prospectus and any amendment or
supplement to this Prospectus to any Broker-Dealer that requests such documents
in the Letter of Transmittal. The Company has agreed to pay all expenses
incident to the Exchange Offer (including the expenses of one counsel for the
Holders of the Securities) other than commissions or concessions of any brokers
or dealers and will indemnify the holders of the Securities (including any
Broker-Dealers) against certain liabilities, including liabilities under the
Securities Act.

                                       25

<PAGE>

          [If applicable, add information required by Regulation S-K Items 507
and/or 508. S-K 502(b) legend must appear on the back cover.]

                                       26

<PAGE>

ANNEX D

Rider A
-------

      /  /   CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10
             ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS
             OR SUPPLEMENTS THERETO.

             Name:    ___________________________________

             Address: ___________________________________

                      ___________________________________

Rider B
-------

If the undersigned is not a Broker-Dealer, the undersigned represents that it
acquired the New Securities in the ordinary course of its business, it is not
engaged in, and does not intend to engage in, a distribution of New Securities
and it has no arrangements or understandings with any person to participate in a
distribution of the New Securities. If the undersigned is a Broker-Dealer that
will receive New Securities for its own account in exchange for Securities, it
represents that the Securities to be exchanged for New Securities were acquired
by it as a result of market-making activities or other trading activities and
acknowledges that it will deliver a prospectus in connection with any resale of
such New Securities; however, by so acknowledging and by delivering a
prospectus, the undersigned will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act.

                                       27<PAGE>
                                                                   EXHIBIT 10.29
<TABLE>
<S><C>
-----------------------------------------------------------------------------------------------------------------------------------
                                              1. THIS CONTRACT IS A RATED ORDER              RATING               PAGE OF PAGES
     AWARD/CONTRACT                              UNDER DPAS (15 CFR 350)                                            1     24

-----------------------------------------------------------------------------------------------------------------------------------
2. CONTRACT (Proc. inst. ident.) NO.         3. EFFECTIVE DATE                       4. REQUISITION/PURCHASE REQUEST PROJECT NO.
              N01-HB-07148                      January 1, 2000
-----------------------------------------------------------------------------------------------------------------------------------
5. ISSUED BY                           CODE                   6. ADMINISTERED BY (If other than Item 5)            CODE
 National Institutes of Health              -----------                                                                 -----------
 National Heart, Lung, and Blood Institute                       AIIN:268997148
 6701 Rockledge Drive, (RKL 2), MSC 7902                         OMB No. 0990-0115
 Bethesda, MD 20892-7902
-----------------------------------------------------------------------------------------------------------------------------------
7. NAME AND ADDRESS OF CONTRACTOR (No., street, city, county, State and ZIP Code)  8. DELIVERY
                                                                                      [ ] FOB ORIGIN     [X] OTHER (See below)
                                                                                   ------------------------------------------------
                                                                                   9. DISCOUNT FOR PROMPT PAYMENT
   Gen-Probe, Inc.
   10210 Genetic Center Drive                                                         N/A
   San Diego, California 92121-4362
                                                                                   ------------------------------------------------
                                                                                   10. SUBMIT INVOICES      ITEM
                                                                                   (4 copies unless         Section G, Article G.3.
---------------------------------------------------------------------------------  otherwise specified)
CODE                                         FACILITY CODE                         TO THE ADDRESS SHOWN IN:
------------------------------------------------------------------------------------------------------------------------------------
11. SHIP TO/MARK FOR                   CODE                       12. PAYMENT WILL BE MADE BY                      CODE
                                            -----------                                                                 -----------

    Section F, Article F.1.                                           Section G, Article G.3
------------------------------------------------------------------------------------------------------------------------------------
13. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION      14. ACCOUNTING AND APPROPRIATION DATA
                                                                  CAN 0-8424361: FY '00 $3,100,000; CAN 6-8424361: FY '96 $1,522,739
    [ ] 10 U.S.C. 2304(c) (     )  [ ] 41 U.S.C. 253(C) (     )   EIN 1-33-0044608-A1 OC 25.55 Doc No.300N1HB97148A DUNS# 115337123
-----------------------------------------------------------------------------------------------------------------------------------
15A. ITEM            15B. SUPPLIES/SERVICES                              15C. QUANTITY   15D. UNIT   15E. UNIT PRICE   15F. AMOUNT
     NO.
------------------------------------------------------------------------------------------------------------------------------------
            TITLE: Refinement of New Assays for Direct Detection of
            Viral Nucleic Acids in Donated Organs

            CONTRACT PERIOD: 1/1/2000 - 12/31/2002

            CONTRACT TYPE: Cost Reimbursement, Completion
            CURRENT OBLIGATION: ...................................                                                    4,652,739.00
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                     15G. TOTAL AMOUNT OF CONTRACT   $ 7,583,879.00
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                                                       16. TABLE OF CONTENTS
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[ ]  SEC.           DESCRIPTION                  PAGE(S)   [ ]  SEC.           DESCRIPTION                                 PAGE(S)
-----------------------------------------------------------------------------------------------------------------------------------
               PART I--THE SCHEDULE                                       PART II--CONTRACT CLAUSES
-----------------------------------------------------------------------------------------------------------------------------------
 X    A   SOLICITATION/CONTRACT FORM                1       X    I   CONTRACT CLAUSES                                        18
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 X    B   SUPPLIES OR SERVICES AND PRICE/COSTS      4      PART III--LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH
-----------------------------------------------------------------------------------------------------------------------------------
 X    C   DESCRIPTION/SPECS./WORK STATEMENT         6       X    J   LIST OF ATTACHMENTS                                     23
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 X    D   PACKAGING AND MARKING                     10              PART IV--REPRESENTATIONS AND INSTRUCTIONS
-----------------------------------------------------------------------------------------------------------------------------------
 X    E   INSPECTION AND ACCEPTANCE                 10               REPRESENTATIONS, CERTIFICATIONS AND                     24
---------------------------------------------------------------- K   OTHER STATEMENTS OF OFFERORS
 X    F   DELIVERIES OR PERFORMANCE                 11      X
-----------------------------------------------------------------------------------------------------------------------------------
 X    G   CONTRACT ADMINISTRATION DATA              12           L   INSTRS., CONDS., AND NOTICES TO OFFERORS
-----------------------------------------------------------------------------------------------------------------------------------
 X    H   SPECIAL CONTRACT REQUIREMENTS             14           M   EVALUATION FACTORS FOR AWARD
-----------------------------------------------------------------------------------------------------------------------------------
                                   CONTRACTING OFFICER WILL COMPLETE ITEM 17 OR 18 AS APPLICABLE
-----------------------------------------------------------------------------------------------------------------------------------
17 [X] CONTRACTOR'S NEGOTIATED AGREEMENT (Contractor is required   18 [ ] AWARD (Contractor is not required to sign this document.)
       to sign this document and return 2 copies to issuing               Your offer on Solicitation Number _______________________
       office) Contractor agrees to furnish and deliver all items         including the additions or changes made by you which
       or perform all the services set forth or otherwise                 additions or changes are set forth in full above, is
       identified above and on any continuation sheets for the            hereby accepted as to the items listed above and on any
       consideration stated herein. The rights and obligations            continuation sheets. This award consummates the contract
       of the parties to the contract shall be subject to and             which consists of the following documents: (a) the
       governed by the following documents: (a) this award/contract,      Government's solicitation and your offer, and (b) this
       (b) the solicitation, if any, and (c) such provisions,             award/contract. No further contractual document is
       representations, certifications, and specifications as are         necessary.
       attached or incorporated by reference herein. (Attachments
       are listed herein.)
-----------------------------------------------------------------------------------------------------------------------------------
19A. NAME AND TITLE OF SIGNER (Type or print)                    20A. NAME OF CONTRACTING OFFICER

     Henry L. Nordhoff
     President and CEO                                           Lynda A. Bindseil
-----------------------------------------------------------------------------------------------------------------------------------
19B. NAME OF CONTRACTOR  GEN-PROBE INC.     19C. DATE SIGNED     20B. UNITED STATES OF AMERICA                     20C. DATE SIGNED

BY /s/ HENRY L. NORDHOFF                    10-Nov-99            BY /s/ LYNDA A. BINDSEIL                               11/15/99
   ----------------------------------------                         -------------------------------------
   (Signature of person authorized to sign)                         (Signature of Contracting Officer)
-----------------------------------------------------------------------------------------------------------------------------------
NSN 7540-01-152-8089                                         26-107                                    STANDARD FORM 26 (REV 4-85)
PREVIOUS EDITION UNUSABLE                                                                              Prescribed by GSA
                                                                                                       FAR (48 CFR) 53.214(a)

</TABLE>
<PAGE>

                                                       Contract No. N01-HB-07148

                      DETAILED TABLE OF CONTRACT CONTENTS

<TABLE>
<S>                                                                                                       <C>
PART I - THE SCHEDULE

     SECTION A - SOLICITATION/CONTRACT FORM

     SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS..................................................   4

          ARTICLE B.1. BRIEF DESCRIPTION OF SUPPLIES OR SERVICES........................................   4
          ARTICLE B.2. ESTIMATED COST...................................................................   4
          ARTICLE B.3. PROVISIONS APPLICABLE TO DIRECT COSTS............................................   4
          ARTICLE B.4. ADVANCE UNDERSTANDINGS...........................................................   5

     SECTION C - DESCRIPTION/SPECIFICATIONS/WORK STATEMENT..............................................   6

          ARTICLE C.1. STATEMENT OF WORK................................................................   6
          ARTICLE C.2. REPORTING REQUIREMENTS...........................................................   9

     SECTION D - PACKAGING, MARKING AND SHIPPING........................................................  l0

     SECTION E - INSPECTION AND ACCEPTANCE..............................................................  10

     SECTION F - DELIVERIES OR PERFORMANCE..............................................................  11

          ARTICLE F.1. DELIVERIES.......................................................................  11
          ARTICLE F.2. CLAUSES INCORPORATED BY REFERENCE................................................  12

     SECTION G - CONTRACT ADMINISTRATION DATA...........................................................  12

          ARTICLE G.1. PROJECT OFFICER..................................................................  12
          ARTICLE G.2. KEY PERSONNEL....................................................................  12
          ARTICLE G.3. INVOICE SUBMISSION/CONTRACT FINANCING REQUEST....................................  12
          ARTICLE G.4. INDIRECT COST RATES..............................................................  13
          ARTICLE G.5. GOVERNMENT PROPERTY..............................................................  13
          ARTICLE G.6. POST AWARD EVALUATION OF PAST PERFORMANCE........................................  14

     SECTION H - SPECIAL CONTRACT REQUIREMENTS..........................................................  14

          ARTICLE H.1. REIMBURSEMENT OF COSTS FOR INDEPENDENT RESEARCH AND DEVELOPMENT PROJECTS.........  14
          ARTICLE H.2. RESTRICTION FROM USE OF HUMAN SUBJECTS...........................................  14
          ARTICLE H.3. HUMAN MATERIALS..................................................................  14
          ARTICLE H.4. CONTINUED BAN ON FUNDING OF HUMAN EMBRYO RESEARCH................................  15
          ARTICLE H.5. NEEDLE EXCHANGE..................................................................  15
          ARTICLE H.6. PRIVACY ACT......................................................................  15
          ARTICLE H.7. SUBCONTRACTING PROVISIONS........................................................  15
          ARTICLE H.8. SALARY RATE LIMITATION LEGISLATION PROVISIONS....................................  16
          ARTICLE H.9. PUBLICATION AND PUBLICITY........................................................  16
          ARTICLE H.10. PRESS RELEASES..................................................................  17
          ARTICLE H.11. REPORTING MATTERS INVOLVING FRAUD, WASTE AND ABUSE..............................  17
</TABLE>

                                       2
<PAGE>

<TABLE>
<S>                                                                                                       <C>
PART II - CONTRACT CLAUSES.............................................................................   18

     SECTION I - CONTRACT CLAUSES......................................................................   18

          ARTICLE I.1. GENERAL CLAUSES FOR A COST-REIMBURSEMENT RESEARCH AND DEVELOPMENT CONTRACT......   18
          ARTICLE I.2. AUTHORIZED SUBSTITUTION OF CLAUSES..............................................   20
          ARTICLE I.3. ADDITIONAL CONTRACT CLAUSES.....................................................   21
          ARTICLE I.4. ADDITIONAL FAR CONTRACT CLAUSES INCLUDED IN FULL TEXT...........................   21

PART III...............................................................................................   23

     SECTION J - LIST OF ATTACHMENTS...................................................................   23

          I.   Invoice/Financing Request Instructions for NIH Cost-Reimbursement Type Contracts........   23
          II.  Annual Technical Progress Report Format for Each Study..................................   23
          III. Safety and Health (Deviation), PHSAR Clause 352.223-70, (8/97), 1 page..................   23
          IV.  Privacy Act System of Records No. 09-25-0200, (4/97), 3 pages...........................   23
          V.   Small Business Subcontracting Plan, dated 8/16/99, 7 pages..............................   23

PART IV................................................................................................   24

     SECTION K - REPRESENTATIONS AND CERTIFICATIONS....................................................   24

          1.   Representations and Certifications......................................................   24
</TABLE>

                                       3
<PAGE>

SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

ARTICLE B.1. BRIEF DESCRIPTION OF SUPPLIES OR SERVICES

The major objectives of this program are: 1) to refine for use in clinical
laboratories, one or more nucleic-acid based techniques that will be feasible
for the direct detection of blood-borne viruses in donors of organs for
transplantation to reduce the antibody-negative window period between
infectivity and detection to the shortest possible time and, when possible,
obviate the need for indirect antibody tests; and 2) to file for investigational
new drug exemption (IND) with the Food and Drug Administration (FDA), and submit
and obtain approval for product license applications (PLAs).

ARTICLE B.2. ESTIMATED COST

a.    This is a cost-sharing contract. The total estimated cost of performing
      the work under this contract is $17,583,879. For further provisions
      regarding the specific cost-sharing arrangement, see ARTICLE B.4. ADVANCE
      UNDERSTANDINGS.

b.    For purpose of the clause of the General Clauses entitled LIMITATION OF
      FUNDS, the total estimated cost to the Government is $7,583,879.

c.    Total funds currently available for payment and allotted to this contract
      are $4,652,739. For further provisions on funding, see the LIMITATION OF
      FUNDS clause referenced in Part II, ARTICLE 1.2. Authorized Substitutions
      of Clauses.

d.    It is estimated that the amount currently allotted will cover performance
      of the contract through June 15, 2001. The Contracting Officer may allot
      additional funds to the contract without the concurrence of the
      Contractor.

e.    Future increments to be allotted to this contract are estimated as
      follows:

                PERIOD                                        AMOUNT

          6/16/01 - 12/31/02                                $2,930,140

ARTICLE B.3. PROVISIONS APPLICABLE TO DIRECT COSTS

a.    ITEMS UNALLOWABLE UNLESS OTHERWISE PROVIDED

      Notwithstanding the clause[s], ALLOWABLE COST AND PAYMENT, [and FIXED
      FEE,] incorporated in this contract, unless authorized in writing by the
      Contracting Officer, the costs of the following items or activities shall
      be unallowable as direct costs:

      (1)   Acquisition, by purchase or lease, of any interest in real property;

      (2)   Special rearrangement or alteration of facilities;

      (3)   Purchase or lease of ANY item of general purpose office furniture or
            office equipment regardless of dollar value. (General purpose
            equipment is defined as any items of personal property which are
            usable for purposes other than research, such as office equipment
            and furnishings, pocket calculators, etc.);

      (4)   Travel to attend general scientific meetings;

      (5)   Foreign travel - See ARTICLE B.3.b.(2);

      (6)   Patient care costs;

                                       4
<PAGE>

      (7)   Accountable Government property (defined as both real and personal
            property with an acquisition cost of $1,000 or more and a life
            expectancy of more than two years) and "sensitive items" (defined
            and listed in the Contractor's Guide for Control of Government
            Property), 1990, regardless of acquisition value.

b.    TRAVEL COSTS

      (1)   Domestic Travel

            (a)   Total expenditures for domestic travel (transportation,
                  lodging, subsistence, and incidental expenses) incurred in
                  direct performance of this contract shall not exceed $57,200
                  without the prior written approval of the Contracting Officer.

            (b)   The Contractor shall invoice and be reimbursed for all travel
                  costs in accordance with Federal Acquisition Regulations (FAR)
                  31.205-46.

      (2)   Foreign Travel

            Requests for foreign travel must be submitted at least three weeks
            in advance and shall contain the following: (a) meeting(s) and
            place(s) to be visited, with costs and dates; (b) name(s) and
            title(s) of Contractor personnel to travel and their functions in
            the contract project; (c) contract purposes to be served by the
            travel; (d) how travel of contractor personnel will benefit and
            contribute to accomplishing the contract project, or will otherwise
            justify the expenditure of NIH contract funds; (e) how such
            advantages justify the costs for travel and absence from the project
            of more than one person if such are suggested; and (f) what
            additional functions may be performed by the travelers to accomplish
            other purposes of the contract and thus further benefit the project.

ARTICLE B.4. ADVANCE UNDERSTANDINGS

Other provisions of this contract notwithstanding, approval of the following
items within the limits set forth is hereby granted without further
authorization from the Contracting Officer.

a.    INDIRECT COSTS

      (1)   In no event shall the final amount reimbursable for indirect costs
            (including overhead, G&A, and fringe benefits) exceed a ceiling of
            125% of direct labor during the entire period of this contract.

      (2)   The Government is not obligated to pay any additional amount should
            the final indirect cost rates exceed this negotiated ceiling rate.
            In the event that the final indirect cost rates are less than this
            negotiated ceiling rate, the final negotiated ceiling rate shall be
            reduced to conform to the lower rate.

            Any costs over and above this cost ceiling shall not be reimbursed
            under this contract or any other Government contract, grant, or
            cooperative agreement.

      (3)   The Contractor shall complete all work in accordance with the
            Statement of Work, terms and conditions of this contract.

b.    SUBCONTRACT

      A cost-reimbursement type subcontract with Westat, Inc. for developing,
      conducting, and analyzing the clinical studies in Phase II in the
      estimated cost of $968,959 plus a fixed fee of $67,828. A copy of the
      subcontract agreement shall be provided to the Contracting Officer.

c.    COST SHARING

                                       5
<PAGE>

      (1)   This is a cost-sharing contract. Monies shall be provided for the
            total cost of performance from the National Institutes of Health,
            National Heart, Lung, and Blood Institute and Gen-Probe
            Incorporated.

      (2)   The Government shall provide monies in an amount not to exceed
            $7,583,879. The Contractor's share is estimated at $10,000,000 OR
            57% of the total estimated cost set forth in ARTICLE B.2. ESTIMATED
            COST, paragraph a.

      (3)   The Contractor shall maintain records of all contract costs
            (including costs claimed by the Contractor as being its share) and
            such records shall be subject to the AUDIT AND RECORDS clause of the
            General Clauses.

      (4)   Costs contributed by the Contractor shall not be charged to the
            Government under any other contract, grant, or cooperative agreement
            (including allocation to other grants, contracts, or cooperative
            agreements as part of an independent research and development
            program). The Contractor shall report the organization's share of
            the costs on its invoices to the Government as referenced in ARTICLE
            B.4.d.(1).

d.    INVOICES - COST AND PERSONNEL REPORTING, AND VARIANCES FROM THE NEGOTIATED
      BUDGET

      (1)   The contractor agrees to provide a detailed breakdown on invoices of
            the following cost categories:

            (a)   Direct Labor - List individuals by name, title/position,
                  hourly/annual rate, level of effort, and amount claimed.

            (b)   Materials

            (c)   Travel

            (d)   Subcontractor Westat, Inc. - Attach subcontractor's
                  invoice(s).

            (e)   Specimen Procurement

            (f)   Development Lots

            (g)   Total Direct Cost

            (h)   Overhead + G&A + Fringe Benefits @ 125% of Direct Labor

            (i)   Total Billing Cost (NHLBI)

            (j)   Clinical Trial Reagents

            (k)   Subcontractor - Montalbano Development, Inc.

            (1)   Total Gen-Probe Share

            Monthly invoices must include the cumulative total expenses to date,
            adjusted (as applicable) to show any amounts suspended by the
            Government.

      (2)   The contractor agrees to immediately notify the contracting officer
            in writing if there is an anticipated overrun (any amount) or
            unexpended balance (greater than 10 percent) of the amount allotted
            to the contract, and the reasons for the variance. Also refer to the
            requirements of the Limitation of Funds and Limitation of Cost
            Clauses in the contract.

SECTION C - DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

ARTICLE C.1. STATEMENT OF WORK

a.    Independently and not as an agent of the Government, the Contractor shall
      furnish all the necessary services, qualified personnel, material,
      equipment, and facilities, not otherwise provided by the Government as
      needed to perform the Statement of Work below:

      The contractor shall deliver the items specified in ARTICLE F.1 to the
      destinations indicated.

      The contractor shall: 1) Refine for use in clinical laboratories, one or
      more nucleic-acid based techniques that will be feasible for the direct
      detection of blood-borne viruses in donors of organs for transplantation
      to reduce the antibody-

                                       6
<PAGE>

      negative window period of infectivity and detection to the shortest
      possible time and, when possible, obviate the need for antibody tests: and
      2) file for INDs with the Food and Drug Administration (FDA), and submit
      and obtain approval for product license applications (PLAs).

      The study schedule is as follows:

      Phase I: Preclinical Phase

      The preclinical phase for refinement of an organ donor assay shall be
      completed within 24 months from contract award.

      Phase II: Clinical Phase

      All clinical studies conducted at approved clinical trial sites must be
      completed and the results submitted to the Center for Biologies Evaluation
      and Research (CBER) within a period of 8 months from receipt of the
      investigational new drug (IND). An additional 4 months will allow for
      review of data by CBER officials and, ultimately, licensure of the
      procedure. The contractor shall perform the following activities:

      PHASE I: Preclinical Studies/Test Refinement

      1.    Refine a procedure for screening of organ donors for blood-borne
            viruses. The contractor must:

            a.    Demonstrate that the organ donor assay detects minimal amounts
                  of viral nucleic acids (RNA and/or other viral nucleic acids
                  that appear at the same time or before the earliest appearance
                  of viral RNA circulating in plasma) specific for HIV-1 and
                  HCV. If specimens other than blood are to be used, determine
                  the best tissue to use as a test material source.

            b.    Have and describe plans to adapt the test methods to a
                  multiplexing format that will detect multiple blood borne
                  viruses (two or more viruses) in the same test. The two
                  highest priority viruses to be detected are HIV-1 and HCV.
                  The testing method(s) proposed must be able to detect each of
                  these viruses, in multiplexing format. If additional viruses
                  are included in the test system (e.g., HBV, HIV-2, etc.), they
                  are also to be incorporated into a multiplex format.

            c.    Demonstrate that these assays are suitable for use on blood or
                  tissue samples from organ donors.

            d.    Provide a technically easy procedure so as to be readily
                  usable by less practiced laboratory staff at odd hours, day or
                  night, weekday or weekend.

            e.    Provide a test that is rapid (<4-6 hours from sample receipt
                  to report), highly specific and sensitive.

            f.    Propose and begin to develop a confirmatory test for the
                  viruses initially targeted, unless the base procedure is 100%
                  specific.

      2.    Validate assay(s) and subject them to process controls.

      3.    Utilize good laboratory practices to ensure the acquisition of
            acceptable supporting data for the submission of INDs and PLAs to
            the FDA.

      4.    Address carefully issues related to the FDA's general regulatory
            concerns regarding IND approval. Important points to be considered
            include preparation and processing of specimens; selection of target
            nucleic acid species; genetic drift or mutation of targeted
            infectious agents; development and standardization of capture and
            reporter probes; construction of internal controls for human
            RNA/DNA, non-target sequences of the same infectious agent, and
            different pathogens; determining optimum tissue source for test
            sample in the case of screening organ donors; quality control of the
            manufacturing process; and design of preclinical evaluation studies.
            The NHLBI must be notified and usually present at any meetings with
            the FDA and the contractor and/or such subcontractors as may exist
            that relate

                                       7
<PAGE>

            to this project or any part thereof.

      5.    Develop a standardized test protocol that will be used for
            preclinical testing including: (i) Evaluation of specificity, (ii)
            evaluation of sensitivity with validation of end-point, and (iii)
            studies to determine the analytical sensitivities for the clinical
            trial tests. Biostatistical considerations indicate that at least
            600 specificity specimens will be necessary to validate the
            procedure. If the assay material is blood, random normal blood or
            plasma donor specimens and at least 100 test-positive sensitivity
            specimens shall be used. If the test material is tissue (lymph node
            aspirate, bone marrow, etc.), specimens of the same type of tissue
            shall be utilized. Preclinical testing must be completed to submit
            an IND and proceed to the clinical trial testing.

            The NHLBI blood specimen repository has been storing specimens from
            a variety of epidemiological studies supported by the Institute
            since 1974. The repository contains blood samples from 6
            sequentially bled hemophiliacs who became infected with HIV during
            the course of a large study. Another source of sequential specimens
            for detecting HIV nucleic acids during the seronegative window of
            infectivity is the collection of plasma and serum from the NHLBI
            longitudinal study of approximately 14 chimpanzees experimentally
            infected with HIV. In addition, the Institute's blood specimen
            repository has serial samples from over 100 blood recipients who
            developed post-transfusion HCV. These specimens will be used to
            prepare coded panels which the Institute will make available to the
            contractor to satisfy at least some of the needs for data to support
            either the IND or the PLA applications. The contractor must have or
            develop additional sources of samples to fulfill the requirements
            for test licensure.

      6.    Submit IND applications in accordance with FDA policies and
            guidelines.

      7.    Propose an acceptable comparative test(s), providing data on which
            to base its use as a "gold standard," since there is no "gold
            standard" licensed test that can be used to confirm the
            test-positive specimens. This test could also be proposed as a
            confirmatory test.

            PHASE II: Clinical Trials/Test Validation

            Commencement of Phase II is contingent on successful completion of
            Phase I. Phase II shall not proceed without the prior written
            approval of the Contracting Officer. Phase II will be the actual
            implementation of the definitive clinical trials to support
            licensure.

            Specifically, the contractor shall provide the following:

      1.    Design and organize the definitive clinical studies to support a
            PLA. These studies shall be performed by independent investigators
            at clinical trial sites that mimic expected use, i.e., a test
            intended for screening of organ donors must be validated in a
            transplantation or transplantation-like setting. The contractor
            shall propose how the investigational assay system will be compared
            to the proposed "gold standard" system and how discrepant results
            will be resolved. Specimens evaluated in the clinical trial may be
            either linked or unlinked to human subjects. A study with linked
            samples requires Institutional Review Board (IRB) approval and the
            informed consent of the donor or donor's family.

      2.    Conduct specificity testing with specimens of blood or tissue from
            organ donors and potential organ donors to mimic the clinical
            situation. Testing must be done at odd hours, day or night, weekday
            or weekend, similar to the timing of the recruitment of organ
            donors.

      3.    Determine sensitivity and specificity with an estimated confidence
            limit, describing how the limit was selected and how the study will
            provide it. If the test material is tissue, (e.g. lymph node
            aspirate, bone marrow, etc.), experimental protocols utilizing
            chimpanzees may be valuable. These animals, infected with HIV, could
            be the source of invaluable longitudinal specimens which could
            demonstrate the sensitivity of the assay in detecting HIV during the
            seronegative window of infectivity.

      4.    Perform nonspecificity studies for each virus with at least 200
            samples to determine whether certain specimens will produce
            non-specific results. These shall include samples from individuals
            with diverse viral diseases who could

                                       8
<PAGE>

            have high levels of non-specific nucleic acids that might interfere
            with the test. In addition, because "viral drift" may potentially
            result in decreased sensitivity, these samples shall include some
            geographically diverse samples.

b.    The following described document is hereby made a part of this contract:
      Pages 3-1, 4-1, 4-6 (starting with paragraph 4.b.1), 4-7, 4-8 (stopping
      at paragraph 4.b.1.1), 4-19 (starting with paragraph 4.b.2) thru page 4-48
      (stopping at paragraph 4.c) of the contractor's Technical proposal dated
      February 10, 1999; subsequent written responses dated June 22, 1999; and
      the Final Proposal Revisions dated August 18, 1999.

c.    If there is any inconsistency between the referenced proposal and the work
      described in this ARTICLE, Paragraph a., shall control.

ARTICLE C.2. REPORTING REQUIREMENTS

a.    TECHNICAL REPORTS

      In addition to those reports required by SECTION I and other terms of this
      contract, the Contractor shall prepare and submit the following reports in
      the manner stated below and in accordance with ARTICLE F.1. DELIVERIES of
      this contract:

      a.    QUARTERLY REPORTS; to include a description of the activities during
            the reporting period including subcontract activities. The narrative
            must include how progress in the particular quarter compares with
            progress predicted on a pert chart (or other project management
            charting) prepared by the contractor. Identify any problems that
            have arisen and how they have been or will be resolved. Activities
            planned for the ensuing reporting period shall be discussed. Five
            copies will be due 14 calendar days after the end of each quarter.

      b.    ANNUAL REPORTS; to include a summation of the results of the entire
            contract work for the period covered. The annual report should
            include the significant data obtained during the year and identify
            progress in relationship to the objectives outlined at the beginning
            of the year. Significant technical problems should be clearly
            identified. The narrative must include how progress over the annual
            period compares with progress predicted on a pert chart (or other
            project management charting) prepared by the contractor. In
            addition, a projection of the next year's technical activities shall
            be included. The report must identify the objectives originally
            planned for the subsequent funding period and justify any deviation
            from this plan. It must indicate the procedures to be employed to
            overcome any significant technical problems encountered during the
            reporting period. A Quarterly Report shall not be submitted when an
            Annual Report is due.

            The progress chart shall serve as the basis for assessing the actual
            progress during the particular reporting period. Any deviation from
            the progress chart must be explained and corrective measures shall
            be discussed. If necessary, the progress chart shall be readjusted
            to reflect the true progress achieved and future work to be
            performed. The first annual report shall be submitted within 12
            months after the effective date of the contract and annually
            thereafter (specific dates shall be stated in the contract). An
            original and 5 copies are required.

      c.    DRAFT FINAL REPORT; the Contractor shall provide the Contracting
            Officer with two copies of the final report in draft form 30 working
            days before the Final Report is due. The Project Officer shall
            review the draft report and provide the Contractor with comments
            within 15 working days after receipt. The final report shall be
            corrected if necessary and the final version delivered by or before
            the expiration date of the contract.

      d.    FINAL REPORT; to include a summation of the work performed and
            results obtained for the entire contract period of performance. This
            report shall be in sufficient detail to describe comprehensively the
            results achieved. The final report shall be submitted upon
            completion of contract objectives. The Contractor shall submit, with
            the final report, a summary (not to exceed 200 words) of salient
            results achieved during the performance of the contract. An original
            and 20 copies will be required.

                                       9
<PAGE>

      e.    OTHER REPORTS/DELIVERABLES

      1.    PROGRESS REPORT FOR CLINICAL RESEARCH STUDY POPULATIONS

            If linked specimens are used in the study, the Contractor shall
            submit the following information for each study being performed
            under this contract in the format presented below. The report shall
            be submitted in accordance with ARTICLE F.1. DELIVERIES of this
            contract.

                     PROGRESS REPORT FORMAT FOR EACH STUDY

Study Title:
Date:

Provide the number of subjects enrolled in the study to date according to the
following categories:

<TABLE>
<CAPTION>
=============================================================================================================================
                American                            Black,                            White,
                Indian or        Asian or           not of                            not of           Other
                Alaskan          Pacific            Hispanic                          Hispanic         or
                Native           Islander           Origin          Hispanic          Origin           Unknown          Total
=============================================================================================================================
<S>             <C>              <C>                <C>             <C>               <C>              <C>              <C>
Female
-----------------------------------------------------------------------------------------------------------------------------
Male
-----------------------------------------------------------------------------------------------------------------------------
Unknown
-----------------------------------------------------------------------------------------------------------------------------
TOTAL
=============================================================================================================================
</TABLE>

Subpopulations of the minority groups should also be reported, using a similar
format.

SECTION D - PACKAGING, MARKING AND SHIPPING

All deliverables required under this contract shall be packaged, marked and
shipped in accordance with Government specifications. At a minimum, all
deliverables shall be marked with the contract number and name. The Contractor
shall guarantee that all required materials shall be delivered in immediate
usable and acceptable condition.

SECTION E - INSPECTION AND ACCEPTANCE

a.    The Contracting Officer or the duly authorized representative will perform
      inspection and acceptance of materials and services to be provided.

b.    For the purpose of this ARTICLE, the Project Officer is the authorized
      representative of the Contracting Officer.

c.    Inspection and acceptance will be performed at:

                         National Heart, Lung, and Blood Institute
                         National Institutes of Health
                         Rockledge II (RKL2)
                         6701 Rockledge Drive, Room 10142
                         Bethesda, MD 20892-7950

      Acceptance may be presumed unless otherwise indicated in writing by the
      Contracting Officer or the duly authorized representative within 30 days
      of receipt.

                                       10
<PAGE>

d.    This contract incorporates the following clause by reference, with the
      same force and effect as if it were given in full text. Upon request, the
      Contracting Officer will make its full text available.

      FAR Clause No. 52.246-9, INSPECTION OF RESEARCH & DEVELOPMENT (SHORT FORM)
      (APRIL 1984).

SECTION F - DELIVERIES OR PERFORMANCE

ARTICLE F.1. DELIVERIES

Satisfactory performance of the final contract shall be deemed to occur upon
delivery and acceptance by the Contracting Officer, or the duly authorized
representative, of the following items in accordance with the stated delivery
schedule:

a.    The items specified below as described in SECTION C, ARTICLE C.1. will be
      required to be delivered F.O.B. Destination as set forth in FAR 52.247-35,
      F.O.B. DESTINATION, WITHIN CONSIGNEES PREMISES (APRIL 1984), and in
      accordance with and by the date(s) specified below:

<TABLE>
<CAPTION>
      ITEM   DESCRIPTION                                         QUANTITY                            DELIVERY SCHEDULE
      ----   -----------                                         --------                            -----------------
<S>                                                              <C>                                 <C>
      (a) Quarterly Reports w/progress chart                     Original & 5 copies                 Quarterly
      (b) Annual Reports w/progress chart                        Original & 5 copies                 12/31/00, 12/31/01
      (c) Draft Final Report                                     2 copies                            11/19/02
      (d) Final Report                                           Original & 20 copies                12/31/02
      (e) Contractor/CBER Related Documents                      2 Copies                            See below
      (f) Progress Report for Clinical Research                  Original & 5 copies                 12/31/00, 12/31/01, 12/31/02
</TABLE>

      In addition to quarterly and annual progress reports, the contractor shall
      make available to the government a copy of the progress chart related to
      the projected course of the workscope. Also, copies of documents related
      to negotiations between the contractor and CBER officials shall be
      submitted to the Project Officer within two weeks of said negotiations.
      This shall include preclinical and clinical protocols as well as
      information from the study.

b.    One copy of each deliverable shall be sent to the Contracting Officer. All
      other copies shall be furnished to the Project Officer. All reports shall
      be mailed or otherwise delivered to the following addresses:

      Contracting Officer                      Project Officer
      National Heart, Lung, and                National Heart, Lung, and
      Blood Institute                          Blood Institute
      Two Rockledge Center, Room 6134          Two Rockledge Center, Room 10142
      6701 Rockledge Drive, MSC 7902           6701 Rockledge Drive, MSC 7950
      Bethesda, Md. 20892-7902                 Bethesda, Md. 20892-7950

      OTHER DELIVERABLES:

      One copy of each deliverable below shall be sent to the Contracting
      Officer at the address shown above.

g.    OPTIONAL FORM 310: or equivalent certifying IRB review and approval of the
      protocol. Documentation of IRB approval shall be provided at the
      completion of Phase I.

h.    SF 294 REPORT: Subcontracting Report for Individual Projects shall be
      submitted semi-annually.

                                       11
<PAGE>

ARTICLE F.2. CLAUSES INCORPORATED BY REFERENCE, FAR 52.252-2 (FEBRUARY 1998)

This contract incorporates the following clause by reference, with the same
force and effect as if it were given in full text. Upon request, the Contracting
Officer will make its full text available. Also, the full text of a clause may
be accessed electronically at this address: http://www.arnet.gov/far/.

FEDERAL ACQUISITION REGULATION (48 CFR CHAPTER 1) CLAUSE:

      52.242-15, Stop Work Order (AUGUST 1989) with ALTERNATE I (APRIL 1984).

SECTION G - CONTRACT ADMINISTRATION DATA

ARTICLE G.1. PROJECT OFFICER

The following Project Officer(s) will represent the Government for the purpose
of this contract:

                         George Nemo, Ph.D.

The Project Officer is responsible for: (1) monitoring the Contractor's
technical progress, including the surveillance and assessment of performance and
recommending to the Contracting Officer changes in requirements; (2)
interpreting the Statement of Work and any other technical performance
requirements; (3) performing technical evaluation as required; (4) performing
technical inspections and acceptances required by this contract; and (5)
assisting in the resolution of technical problems encountered during
performance.

The Contracting Officer is the only person with authority to act as agent of the
Government under this contract. Only the Contracting Officer has authority to:
(1) direct or negotiate any changes in the Statement of Work; (2) modify or
extend the period of performance; (3) change the delivery schedule; (4)
authorize reimbursement to the Contractor any costs incurred during the
performance of this contract; or (5) otherwise change any terms and conditions
of this contract.

[The Contracting Officer hereby delegates the Project Officer as the Contracting
Officer's authorized representative responsible for signing software license
agreements issued as a result of this contract.]

The Government may unilaterally change its Project Officer designation.

ARTICLE G.2. KEY PERSONNEL

Pursuant to the Key Personnel clause incorporated in this contract, the
following individual(s) is/are considered to be essential to the work being
performed hereunder:

                      NAME                                  TITLE

               Richard Egan, Ph.D.                 Principal Investigator

ARTICLE G.3. INVOICE SUBMISSION/CONTRACT FINANCING REQUEST

a.    Invoice/Financing Request Instructions for NIH Cost-Reimbursement Type
      Contracts NIH(RC)-1 are attached and made part of this contract. The
      instructions and the following directions for the submission of
      invoices/financing request must

                                       12
<PAGE>

be followed to meet the requirements of a "proper" payment request pursuant to
FAR 32.9.

    (1) Invoices/financing requests shall be submitted as follows:

        An original and two copies to the following designated billing office:

          Contracting Officer
          National Heart, Lung, and Blood Institute
          Two Rockledge Center, Room 6134
          6701 Rockledge Drive, MSC 7902
          Bethesda, Md. 20892-7902

    (2) Inquiries regarding payment of invoices should be directed to the
        designated billing office, (301) 435-0355.

b.  The Contractor shall include the following certification on every invoice
    for reimbursable costs incurred with Fiscal Year funds subject to the salary
    rate limitation provisions as specified in ARTICLE H.8. of this contract.
    For billing purposes, certified invoices are required for the billing period
    during which the applicable Fiscal Year funds were initially charged through
    the final billing period utilizing the applicable Fiscal Year funds:

        "I hereby certify that the salaries charged in this invoice are in
        compliance with P.L.105-277 and ARTICLE H.6. of the above referenced
        contract."

ARTICLE G.4. INDIRECT COST RATES

In accordance with Federal Acquisition Regulation (FAR) (48 CFR Chapter 1)
Clause 52.216-7 (d)(2), Allowable Cost and Payment incorporated by reference in
this contract in Part II, Section I, the cognizant Contracting Officer
responsible for negotiating provisional and/or final indirect cost rates is
identified as follows:

       Director, Division of Financial Advisory Services
       Office of Contracts Management
       National Institutes of Health
       6100 Building, Room 6B05
       6100 EXECUTIVE BLVD MSC-7540
       BETHESDA MD 20892-7540

These rates are hereby incorporated without further action of the Contracting
Officer, but in no event shall the contractor's combined overhead, G&A, and
fringe benefits rate exceed 125% of direct labor during the entire period of
this contract.

ARTICLE G.5. GOVERNMENT PROPERTY

a.  In addition to the requirements of the clause, GOVERNMENT PROPERTY,
    incorporated in Section I of this contract, the Contractor shall comply with
    the provisions of DHHS Publication, Contractor's Guide for Control of
    Government Property, (1990), which is incorporated into this contract by
    reference. Among other issues, this publication provides a summary of the
    Contractor's responsibilities regarding purchasing authorizations and
    inventory and reporting requirements under the contract. A copy of this
    publication is available upon request to the Contract Property
    Administrator.

    This contract's Contract Property Administrator is:

Marea Petrelles
Contracts Property Administrator
Research Contracts Property Administration, NIH
6011 Building, Room 637R
6011 EXECUTIVE BLVD MSC 7670

                                       13
<PAGE>

     BETHESDA MD 20852-7670
     (301) 496-6466

ARTICLE G.6. POST AWARD EVALUATION OF PAST PERFORMANCE

Interim and final evaluations of contractor performance will be prepared on this
contract in accordance with FAR 42.15. The final performance evaluation will be
prepared at the time of completion of work. In addition to the final evaluation,
interim evaluations will be prepared annually to coincide with the anniversary
date of the contract.

Interim and final evaluations will be provided to the Contractor as soon as
practicable after completion of the evaluation. The Contractor will be permitted
thirty days to review the document and to submit additional information or a
rebutting statement. Any disagreement between the parties regarding an
evaluation will be referred to an individual one level above the Contracting
Officer, whose decision will be final.

Copies of the evaluations, contractor responses, and review comments, if any,
will be retained as part of the contract file, and may be used to support future
award decisions.

SECTION H - SPECIAL CONTRACT REQUIREMENTS

ARTICLE H.1. REIMBURSEMENT OF COSTS FOR INDEPENDENT RESEARCH AND DEVELOPMENT
PROJECTS

The primary purpose of the Public Health Service (PHS) is to support and advance
independent research within the scientific community. This support is provided
in the form of contracts and grants totaling approximately 7 billion dollars
annually. PHS has established effective, time tested and well recognized
procedures for stimulating and supporting this independent RESEARCH by selecting
from multitudes of applications those research projects most worthy of support
within the constraints of its appropriations. The reimbursement through the
indirect cost mechanism of independent research and development costs not
incidental to product improvement would circumvent this competitive process.

To ensure that all research and development projects receive similar and equal
consideration, all organizations may compete for direct funding of independent
research and development projects they consider worthy of support by submitting
those projects to the appropriate Public Health Service grant office for review.
Since these projects may be submitted for direct funding, the Contractor agrees
that no costs for any independent research and development project, including
all applicable indirect costs, will be claimed under this contract.

ARTICLE H.2. RESTRICTION FROM USE OF HUMAN SUBJECTS

NOTICE: UNDER GOVERNING REGULATIONS, FEDERAL FUNDS ADMINISTERED BY THE
DEPARTMENT OF HEALTH AND HUMAN SERVICES SHALL NOT BE EXPENDED FOR RESEARCH
INVOLVING HUMAN SUBJECTS, AND INDIVIDUALS SHALL NOT BE ENROLLED IN SUCH
RESEARCH, WITHOUT PRIOR APPROVAL BY THE OFFICE FOR PROTECTION FROM RESEARCH
RISKS (OPRR) OF AN ASSURANCE TO COMPLY WITH THE REQUIREMENTS OF 45 CFR 46 TO
PROTECT HUMAN RESEARCH SUBJECTS. THIS RESTRICTION APPLIES TO ALL COLLABORATING
SITES WITHOUT OPRR-APPROVED ASSURANCES, WHETHER DOMESTIC OR FOREIGN, AND
COMPLIANCE MUST BE ENSURED BY THE AWARDEE.

ARTICLE H.3. HUMAN MATERIALS

It is understood that the acquisition and supply of all human specimen material
(including fetal material) used under this contract will be obtained by the
Contractor in full compliance with applicable State and Local laws and the
provisions of the Uniform Anatomical Gift Act in the United States and that no
undue inducements, monetary or otherwise, will be offered to any person to
influence their donation of human material.

                                       14
<PAGE>

ARTICLE H.4. CONTINUED BAN ON FUNDING OF HUMAN EMBRYO RESEARCH

a.  Pursuant to Public Law cited in paragraph b., below, NIH is prohibited from
    using appropriated funds to support human embryo research. Contract funds
    may not be used for (1) the creation of a human embryo or embryos for
    research purposes; or (2) research in which a human embryo or embryos are
    destroyed, discarded, or knowingly subjected to risk of injury or death
    greater than that allowed for research on fetuses in utero under 45 CFR
    46.208(a)(2) and Section 498(b) of the Public Health Service Act (42 U.S.C.
    289g(b)). The term "human embryo or embryos" includes any organism, not
    protected as a human subject under 45 CFR 46 as of the date of the enactment
    of this Act, that are derived by fertilization, parthenogenesis, cloning, or
    any other means from one or more human gametes or human diploid cells.

    Additionally, in accordance with a March 4, 1997 Presidential Memorandum,
    Federal funds may not be used for cloning of human beings.

<TABLE>
<CAPTION>
b.  PUBLIC LAW AND SECTION NO.          FISCAL YEAR              PERIOD COVERED
    --------------------------          -----------              --------------
<S>                                     <C>                     <C>
    P.L. 105-277 Section 511             1999                   10/1/98 - 9/30/99
</TABLE>

ARTICLE H.5. NEEDLE EXCHANGE

a.  Pursuant to Public Law(s) cited in paragraph b., below, contract funds shall
    not be used to carry out any program of distributing sterile needles or
    syringes for the hypodermic injection of any illegal drug.

<TABLE>
<CAPTION>
b.  PUBLIC LAW AND SECTION NO.          FISCAL YEAR              PERIOD COVERED
    --------------------------          -----------              --------------
<S>                                     <C>                     <C>
    PL.105-277 Section 505               1999                   10/1/98 - 9/30/99
</TABLE>

ARTICLE H.6. PRIVACY ACT

This procurement action requires the Contractor to do one or more of the
following: design, develop, or operate a system of records on individuals to
accomplish an agency function in accordance with the Privacy Act of 1974, Public
Law 93-579, December 31, 1974 (5 USC 522a) and applicable agency regulations.
Violation of the Act may involve the imposition of criminal penalties.

The Privacy Act System of Records applicable to the project is Number
09-25-0200. This document is incorporated into this contract as Attachment IV.

ARTICLE H.7. SUBCONTRACTING PROVISIONS

a.  SMALL BUSINESS SUBCONTRACTING PLAN

    (1) The Small Business Subcontracting Plan, dated 10/18/99 is attached
        hereto and made a part of this contract.

    (2) The failure of any Contractor or subcontractor to comply in good faith
        with FAR Clause 52.219-8, entitled "Utilization of Small Business
        Concerns" incorporated in this contract and the attached Subcontracting
        Plan, will be a material breach of such contract or subcontract and
        subject to the remedies reserved to the Government under FAR Clause
        52.219-16 entitled, "Liquidated Damages-Subcontracting Plan."

b.  SUBCONTRACTING REPORTS

    (1) The Contractor shall submit the original and 1 copy of Subcontracting
        Report for Individual Contracts, SF-294 in accordance with the
        instructions on the report as referenced in Public Law 95-507, Section
        211. Regardless of the effective date of this contract, the Report shall
        be submitted on the following dates for the entire life of this
        contract:

                         April 30th

                                       15
<PAGE>

                         October 30th

    The Report shall be sent to the following address:

                        Contracting Officer
                        Contracts Operations Branch
                        National Heart, Lung, and Blood Institute
                        Two Rockledge Center, Room 6134
                        6701 Rockledge Drive, MSC 7902
                        Bethesda, Md. 20892-7902

    (2) The Contractor shall submit 1 copy of Summary Subcontract Report, SF-295
        in accordance with the instructions on the report as referenced in
        Public Law 95-507, Section 211. The Summary Subcontract Report shall be
        submitted annually on the following date for the entire life of this
        contract:

                         October 30th

        The first report shall be submitted after the first full year of this
        contract in addition to any fractional part of the year in which this
        contract became effective. This Report shall be mailed to the following
        address:

             Office of Small and Disadvantaged Business Utilization
             Department of Health and Human Services
             Hubert H. Humphrey Bldg., Room 517-D
             200 Independence Avenue, S.W.
             Washington, D.C. 20201

    (3) The contractor shall also send an "Information Copy" of the SF-295 to
        the Cognizant Commercial Representative (CMR) at the address provided by
        the SBA. The Contractor should call SBA Headquarters in Washington, DC
        at (202) 205-6475 for the correct address if unknown.

ARTICLE H.8. SALARY RATE LIMITATION LEGISLATION PROVISIONS

a.  Pursuant to Public Law(s) cited in paragraph b., below, no NIH Fiscal Year
    funds for the applicable fiscal year(s) and periods cited in paragraph b.,
    below may be used to pay the direct salary of an individual through this
    contract at a rate in excess of applicable amount shown for the fiscal year
    and period covered. Direct salary is exclusive of overhead, fringe benefits
    and general and administrative expenses. The per year salary rate limit also
    applies to individuals proposed under subcontracts. If this is a multi-year
    contract, it may be subject to unilateral modifications by the Government if
    an individual's salary rate exceeds any salary rate ceiling established in
    future DHHS appropriation acts.

<TABLE>
<CAPTION>
                                                                      DOLLAR AMOUNT OF
b.  PUBLIC LAW NO.          FISCAL YEAR         PERIOD COVERED        SALARY LIMITATION
    --------------          -----------         --------------        -----------------
<S>                         <C>                <C>                    <C>
    105-277                    1999            10/1/98 - 9/30/99         $125,900
</TABLE>

ARTICLE H.9. PUBLICATION AND PUBLICITY

The contractor shall acknowledge the support of the National Institutes of
Health whenever publicizing the work under this contract in any media by
including an acknowledgment substantially as follows:

    "This project has been funded in whole or in part with Federal funds from
    the National Heart, Lung, and Blood Institute, National Institutes of
    Health, under Contract No. NHLBI-HB-97148."

                                       16
<PAGE>

ARTICLE H.10. PRESS RELEASES

a.  Pursuant to Public Law(s) cited in paragraph b., below, the contractor shall
    clearly state, when issuing statements, press releases, requests for
    proposals, bid solicitations and other documents describing projects or
    programs funded in whole or in part with Federal money: (1) the percentage
    of the total costs of the program or project which will be financed with
    Federal money; (2) the dollar amount of Federal funds for the project or
    program; and (3) the percentage and dollar amount of the total costs of the
    project or program that will be financed by nongovernmental sources.

<TABLE>
<CAPTION>
b.  PUBLIC LAW AND SECTION NO.        FISCAL YEAR              PERIOD COVERED
<S>                                   <C>                     <C>
    PL.105-277 Section 507               1999                 10/1/98 - 9/30/99
</TABLE>

ARTICLE H.11. REPORTING MATTERS INVOLVING FRAUD, WASTE AND ABUSE

Anyone who becomes aware of the existence or apparent existence of fraud, waste
and abuse in NIH funded programs is encouraged to report such matters to the HHS
Inspector General's Office in writing or on the Inspector General's Hotline. The
toll free number is 1-800-HHS-TIPS (1-800-447-8477). All telephone calls will
be handled confidentially. The e-mail address is Htips@os.dhhs.eov and the
mailing address is:

           Office of Inspector General
           Department of Health and Human Services
           TIPS HOTLINE
           P.O. Box 23489
           Washington, D.C. 20026

Information regarding procedural matters is contained in the NIH Manual Chapter
1754, which is available on (http://wwwl.od.nih.gov/oma/oma.htm)

                                       17
<PAGE>

                           PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

ARTICLE I.1. GENERAL CLAUSES FOR A COST-REIMBURSEMENT RESEARCH AND DEVELOPMENT
CONTRACT - FAR 52.252-2, CLAUSES INCORPORATED BY REFERENCE (FEBRUARY 1998)

This contract incorporates the following clauses by reference, with the same
force and effect as if they were given in full text. Upon request, the
Contracting Officer will make their full text available. Also, the full text of
a clause may be accessed electronically at this address:
http://www.arnet.gov/far/.

a.  FEDERAL ACQUISITION REGULATION (FAR) (48 CFR CHAPTER 1) CLAUSES:

<TABLE>
<CAPTION>
  FAR
CLAUSE NO.         DATE            TITLE
----------       --------          -----
<S>              <C>               <C>
52.202-1         Oct 1995          Definitions

52.203-3         Apr 1984          Gratuities (Over $100,000)

52.203-5         Apr 1984          Covenant Against Contingent Fees (Over $100,000)

52.203-6         Jul 1995          Restrictions on Subcontractor Sales to the Government (Over $100,000)

52.203-7         Jul 1995          Anti-Kickback Procedures (Over $100,000)

52.203-8         Jan 1997          Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity
                                   (Over $100,000)

52.203-10        Jan 1997          Price or Fee Adjustment for Illegal or Improper Activity (Over $100,000)

52.203-12        Jun 1997          Limitation on Payments to Influence Certain Federal Transactions (Over $100,000)

52.204-4         Jun 1996          Printing/Copying Double-Sided on Recycled Paper (Over $100,000)

52.209-6         Jul 1995          Protecting the Government's Interests When Subcontracting With Contractors
                                   Debarred, Suspended, or Proposed for Debarment (Over $25,000)

52.215-2         Jun 1999          Audit and Records - Negotiation (Over $100,000)

52.215-8         Oct 1997          Order of Precedence - Uniform Contract Format

52.215-10        Oct 1997          Price Reduction for Defective Cost or Pricing Data

52.215-12        Oct 1997          Subcontractor Cost or Pricing Data (Over $500,000)

52.215-14        Oct 1997          Integrity of Unit Prices (Over $100,000)

52.215-15        Dec 1998          Pension Adjustments and Asset Reversions

52.215-18        Oct 1997          Reversion or Adjustment of Plans for Post-Retirement Benefits (PRB) other than
                                   Pensions

52.215-19        Oct 1997          Notification of Ownership Changes

52.215-21        Oct 1997          Requirements for Cost or Pricing Data or Information Other Than Cost or Pricing
                                   Data - Modifications
</TABLE>

                                       18
<PAGE>

<TABLE>
<S>              <C>               <C>
52.216-7         Apr 1998          Allowable Cost and Payment

52.216-8         Mar 1997          Fixed Fee

52.219-8         Jun 1999          Utilization of Small Business Concerns (Over $100,000)

52.219-9         Jan 1999          Small Business Subcontracting Plan (Over $500,000)

52.219-16        Jan 1999          Liquidated Damages - Subcontracting Plan (Over $500,000)

52.222-2         Ju1 1990          Payment for Overtime Premium (Over $100,000) (Note: The dollar amount in
                                   paragraph (a) of this clause is $0 unless otherwise specified in the contract.)

52.222-3         Aug 1996          Convict Labor

52.222-26        Feb 1999          Equal Opportunity

52.222-35        Apr 1998          Affirmative Action for Disabled Veterans and Veterans of the Vietnam Era

52.222-36        Jun 1998          Affirmative Action for Workers with Disabilities

52.222-37        Jan 1999          Employment Reports on Disabled Veterans and Veterans of the Vietnam Era

52.223-2         Apr 1984          Clean Air and Water (Over $100,000)

52.223-6         Jan 1997          Drug-Free Workplace

52.223-14        Oct 1996          Toxic Chemical Release Reporting

52.225-3         Jan 1994          Buy American Act - Supplies

52.225-11        Aug 1998          Restrictions on Certain Foreign Purchases

52.227-1         Jul 1995          Authorization and Consent, Alternate I (Apr 1984)

52.227-2         Aug 1996          Notice and Assistance Regarding Patent and Copyright Infringement (Over
                                   $100,000)
52.227-11        Jun 1997
                                   Patent Rights - Retention by the Contractor (Short Form) (Note: In accordance
                                   with FAR 27.303(a)(2), paragraph (f) is modified to include the requirements in
                                   FAR 27.303(a)(2)(i) through (iv). The frequency of reporting in (i) is annual.

52.227-14        Jun 1987          Rights in Data - General

52.232-9         Apr 1984          Limitation on Withholding of Payments

52.232-17        Jun 1996          Interest (Over $100,000)

52.232-20        Apr 1984          Limitation of Cost

52.232-23        Jan 1986          Assignment of Claims

52.232-25        Jun 1997          Prompt Payment

52.232-34        May 1999          Payment by Electronic Funds Transfer--Other Than Central Contractor Registration

52.233-1         Dec 1998          Disputes

52.233-3         Aug 1996          Protest After Award, Alternate I (Jun 1985)

52.242-1         Apr 1984          Notice of Intent to Disallow Costs
</TABLE>

                                       19
<PAGE>

<TABLE>
<S>              <C>               <C>
52.242-3         Oct 1995          Penalties for Unallowable Costs (Over $500,000)

52.242-4         Jan 1997          Certification of Final Indirect Costs

52.242-13        Jul 1995          Bankruptcy (Over $100,000)

52.243-2         Aug 1987          Changes - Cost Reimbursement, Alternate V (Apr 1984)

52.244-2         Aug 1998          Subcontracts, Alternate II (Aug 1998) *If written consent to subcontract is
                                   required, the identified subcontracts are listed in ARTICLE B, Advance
                                   Understandings.

52.244-5         Dec 1996          Competition in Subcontracting (Over $100,000)

52.245-5         Jan 1986          Government Property (Cost-Reimbursement, Time and Material, or Labor-Hour
                                   Contract)

52.246-23        Feb 1997          Limitation of Liability (Over $100,000)

52.249-6         Sep 1996          Termination (Cost-Reimbursement)

52.249-14        Apr 1984          Excusable Delays

52.253-1         Jan 1991          Computer Generated Forms
</TABLE>

b.  DEPARTMENT OF HEALTH AND HUMAN SERVICES ACQUISITION REGULATION (HHSAR) (48
    CFR CHAPTER 3) CLAUSES:

<TABLE>
<CAPTION>
  HHSAR
CLAUSE NO.         DATE            TITLE
<S>              <C>               <C>
352.228-7        Dec 1991          Insurance - Liability to Third Persons

352.232-9        Apr 1984          Withholding of Contract Payments

352.233-70       Apr 1984          Litigation and Claims

352.242-71       Apr 1984          Final Decisions on Audit Findings

352.270-5        Apr 1984          Key Personnel

352.270-6        Jul 1991          Publication and Publicity

352.270-7        Apr 1984          Paperwork Reduction Act
</TABLE>

[End of GENERAL CLAUSES FOR A COST-REIMBURSEMENT RESEARCH AND DEVELOPMENT
CONTRACT-Rev. 7/1999].

ARTICLE I.2. AUTHORIZED SUBSTITUTION OF CLAUSES

FAR Clause 52.216-8, FIXED FEE (MARCH 1997), is deleted in its entirety and FAR
Clause 52.216-11, COST CONTRACT-NO FEE (APRIL 1984) is substituted therefor.

FAR Clause 52.232-20, LIMITATION OF COST, is deleted in its entirety and FAR
Clause 52.232-22, LIMITATION OF FUNDS (APRIL 1984) is substituted therefor.

                                       20
<PAGE>

ARTICLE I.3. ADDITIONAL CONTRACT CLAUSES

This contract incorporates the following clauses by reference, with the same
force and effect, as if they were given in full text. Upon request, the
contracting officer will make their full text available.

a.  FEDERAL ACQUISITION REGULATION (FAR) (48 CFR CHAPTER 1) CLAUSES

    (1) FAR 52.215-17, Waiver of Facilities Capital Cost of Money (OCTOBER
        1997).

    (2) FAR 52.223-3, Hazardous Material Identification and Material Safety Data
        (JANUARY 1997), ALTERNATE I (JULY 1995).

    (3) FAR 52.224-1, Privacy Act Notification (APRIL 1984)

    (4) FAR 52.224-2, Privacy Act (APRIL 1984)

    (5) FAR 52.227-14, Rights in Data - General (JUNE 1987).

    (6) FAR 52.227-16, Additional Data Requirements (JUNE 1987).

    (7) FAR 52.230-3, Disclosure and Consistency of Cost Accounting Practices
        (APRIL 1998).

    (8) FAR 52.246-23, Limitation of Liability (FEBRUARY 1997). AND/OR

    (9) FAR 52.246-24, Limitation of Liability - High-Value Items (FEBRUARY
        1997).

    (10) FAR 52.251-1, Government Supply Sources (APRIL 1984).

b.  DEPARTMENT OF HEALTH AND HUMAN SERVICES ACQUISITION REGULATION/PUBLIC HEALTH
    SERVICE ACQUISITION REGULATION (HHSAR)/(PHSAR) (48 CHAPTER 3) CLAUSES:

    (1) PHS 352.223-70, Safety and Health (Deviation) (AUGUST 1997).

    (2) PHS 352.280-1b, Protection of Human Subjects (OCTOBER 1986).

c.  NATIONAL INSTITUTES OF HEALTH (NIH) RESEARCH CONTRACTING (RC) CLAUSES:

    The following clauses are attached and made a part of this contract:

    (1) NIH (RC)-7, Procurement of Certain Equipment (APRIL 1984) (OMB Bulletin
        81-16).

ARTICLE 1.4. ADDITIONAL FAR CONTRACT CLAUSES INCLUDED IN FULL TEXT

This contract incorporates the following clauses in full text.

FEDERAL ACQUISITION REGULATION (FAR)(48 CFR CHAPTER l) CLAUSES:

a.  FAR Clause 52.244-6, SUBCONTRACTS FOR COMMERCIAL ITEMS AND COMMERCIAL
    COMPONENTS (OCTOBER 1998)

    (a) DEFINITION.

                                       21
<PAGE>

    Commercial item, as used in this clause, has the meaning contained in the
    clause at 52.202-1, Definitions.

    SUBCONTRACT, as used in this clause, includes a transfer of commercial items
    between divisions, subsidiaries, or affiliates of the Contractor or
    subcontractor at any tier.

(b) To the maximum extent practicable, the Contractor shall incorporate, and
    require its subcontractors at all tiers to incorporate, commercial items or
    nondevelopmental items as components of items to be supplied under this
    contract.

(c) Notwithstanding any other clause of this contract, the Contractor is not
    required to include any FAR provision or clause, other than those listed
    below to the extent they are applicable and as may be required to establish
    the reasonableness of prices under Part 15, in a subcontract at any tier for
    commercial items or commercial components:

    (1) 52.222-26, Equal Opportunity (E.O. 11246);

    (2) 52.222-35, Affirmative Action for Disabled Veterans and Veterans of the
        Vietnam Era (38 U.S.C. 4212(a));

    (3) 52.222-36, Affirmative Action for Workers with Disabilities (29 U.S.C.
        793); and

    (4) 52.247-64, Preference for Privately Owned U.S.-Flagged Commercial
        Vessels (46 U.S.C. 1241) (flow down not required for subcontracts
        awarded beginning May 1, 1996).

(d) The Contractor shall include the terms of this clause, including this
    paragraph (d), in subcontracts awarded under this contract.

                                       22

<PAGE>
                                    PART III

SECTION J - LIST OF ATTACHMENTS

The following documents are attached and incorporated in this contract:

I.    Invoice/Financing Request Instructions for NIH Cost-Reimbursement Type
      Contracts, NIH(RC)-1 (5/97), 4 pages.

II.   Annual Technical Progress Report Format for Each Study, (7/94), 1 page.

III.  Safety and Health (Deviation), PHSAR Clause 352.223-70, (8/97), 1 page.

IV.   Privacy Act System of Records No. 09-25-0200, (4/97), 3 pages.

V.    Small Business Subcontracting Plan, dated 10/18/99, 7 pages.

                                       23
<PAGE>
                                     PART IV

SECTION K - REPRESENTATIONS AND CERTIFICATIONS

The following documents are incorporated by reference in this contract:

1.    Representations and Certifications, dated February 8, 1999.

                                       24
<PAGE>
                     INVOICE/FINANCING REQUEST INSTRUCTIONS
              FOR NIH COST-REIMBURSEMENT TYPE CONTRACTS, NIH(RC)-1

GENERAL: The contractor shall submit claims for reimbursement in the manner and
format described herein and as illustrated in the sample invoice/financing
request.

FORMAT: Standard Form 1034, "Public Voucher for Purchases and Services Other
Than Personal," and Standard Form 1035, "Public Voucher for Purchases and
Services Other Than Personal-- Continuation Sheet," or reproduced copies of such
forms marked ORIGINAL should be used to submit claims for reimbursement. In lieu
of SF-1034 and SF-1035, claims may be submitted on the payee's letter-head or
self-designed form provided that it contains the information shown on the sample
invoice/financing request.

NUMBER OF COPIES: As indicated in the Invoice Submission Clause in the contract.

FREQUENCY: Invoices/financing requests submitted in accordance with the Payment
Clause shall be submitted monthly unless otherwise authorized by the contracting
officer.

COST INCURRENCE PERIOD: Costs incurred must be within the contract performance
period or covered by precontract cost provisions.

BILLING OF COSTS INCURRED: If billed costs include: (1) costs of a prior billing
period, but not previously billed; or (2) costs incurred during the contract
period and claimed after the contract period has expired, the amount and
month(s) in which such costs were incurred shall be cited.

CONTRACTOR'S FISCAL YEAR: Invoices/financing requests shall be prepared in such
a manner that costs claimed can be identified with the contractor's fiscal year.

CURRENCY: All NIH contracts are expressed in United States dollars. When
payments are made in a currency other than United States dollars, billings on
the contract shall be expressed, and payment by the United States Government
shall be made, in that other currency at amounts coincident with actual costs
incurred. Currency fluctuations may not be a basis of gain or loss to the
contractor. Notwithstanding the above, the total of all invoices paid under this
contract may not exceed the United States dollars authorized.

COSTS REQUIRING PRIOR APPROVAL: Costs requiring the contracting officer's
approval, which are not set forth in an Advance Understanding in the contract
shall be so identified and reference the Contracting Officer's Authorization
(COA) Number. In addition, any cost set forth in an Advance Understanding shall
be shown as a separate line item on the request.

INVOICE/FINANCING REQUEST IDENTIFICATION: Each invoice/financing request shall
be identified as either:

(a)   INTERIM INVOICE/CONTRACT FINANCING REQUEST -- These are interim payment
      requests submitted during the contract performance period.

(b)   COMPLETION INVOICE -- The completion invoice is submitted promptly upon
      completion of the work; but no later than one year from the contract
      completion date, or within 120 days after settlement of the final indirect
      cost rates covering the year in which this contract is physically complete
      (whichever date is later). The completion invoice should be submitted when
      all costs have been assigned to the contract and all performance
      provisions have been completed.

(c)   FINAL INVOICE -- A final invoice may be required after the amounts owed
      have been settled between the Government and the contractor (e.g.,
      resolution of all suspensions and audit exceptions).

PREPARATION AND ITEMIZATION OF THE INVOICE/FINANCING REQUEST: The contractor
shall furnish the information set forth in the explanatory notes below. These
notes are keyed to the entries on the sample invoice/financing request.

                                  ATTACHMENT I
                                     Page 1

<PAGE>

(a)   DESIGNATED BILLING OFFICE NAME AND ADDRESS -- Enter the designated billing
      office name and address, identified in the Invoice Submission Clause of
      the contract, on all copies of the invoice/financing request.

(b)   INVOICE/FINANCING REQUEST NUMBER -- Insert the appropriate serial number
      of the invoice/financing request.

(c)   DATE INVOICE/FINANCING REQUEST PREPARED -- Insert the date the
      invoice/financing request is prepared.

(d)   CONTRACT NUMBER AND DATE -- Insert the contract number and the effective
      date of the contract.

(e)   PAYEE'S NAME AND ADDRESS -- Show the contractor's name (as it appears in
      the contract), correct address, and the title and phone number of the
      responsible official to whom payment is to be sent. When an approved
      assignment has been made by the contractor, or a different payee has been
      designated, then insert the name and address of the payee instead of the
      contractor.

(f)   TOTAL ESTIMATED COST OF CONTRACT -- Insert the total estimated cost of the
      contract, exclusive of fixed-fee. For incrementally funded contracts,
      enter the amount currently obligated and available for payment.

(g)   TOTAL FIXED-FEE -- Insert the total fixed-fee (where applicable). For
      incrementally funded contracts, enter the amount currently obligated and
      available for payment.

(h)   BILLING PERIOD -- Insert the beginning and ending dates (month, day, and
      year) of the period in which costs were incurred and for which
      reimbursement is claimed.

(i)   AMOUNT BILLED FOR CURRENT PERIOD -- Insert the amount billed for the major
      cost elements, adjustments, and adjusted amounts for the period.

(j)   CUMULATIVE AMOUNT FROM INCEPTION -- Insert the cumulative amounts billed
      for the major cost elements and adjusted amounts claimed during this
      contract.

(k)   DIRECT COSTS -- Insert the major cost elements. For each element, consider
      the application of the paragraph entitled "Costs Requiring Prior Approval"
      on page 1 of these instructions.

      (1)   DIRECT LABOR -- Include salaries and wages paid (or accrued) for
            direct performance of the contract.

      (2)   FRINGE BENEFITS -- List any fringe benefits applicable to direct
            labor and billed as a direct cost. Fringe benefits included in
            indirect costs should not be identified here.

      (3)   ACCOUNTABLE PERSONAL PROPERTY -- Include permanent research
            equipment and general purpose equipment having a unit acquisition
            cost of $1,000 or more and having an expected service life of more
            than two years, and sensitive property regardless of cost (see the
            DHHS Contractor's Guide for Control of Government Property). Show
            permanent research equipment separate from general purpose
            equipment. Prepare and attach Form HHS-565, "Report of Accountable
            Property," in accordance with the following instructions:

            List each item for which reimbursement is requested. A reference
            shall be made to the following (as applicable):

            -     The item number for the specific piece of equipment listed in
                  the Property Schedule.

            -     The COA letter and number, if the equipment is not covered by
                  the Property Schedule.

            -     Be preceded by an asterisk (*) if the equipment is below the
                  approval level.

            Further itemization of invoices/financing requests shall only be
            required for items having specific limitations set forth in the
            contract.

                                  ATTACHMENT I
                                     Page 2

<PAGE>
      (4)   MATERIALS AND SUPPLIES -- Include equipment with unit costs of less
            than $1,000 or an expected service life of two years or less, and
            consumable material and supplies regardless of amount.

      (5)   PREMIUM PAY -- List remuneration in excess of the basic hourly rate.

      (6)   CONSULTANT FEE -- List fees paid to consultants. Identify consultant
            by name or category as set forth in the contract's advance
            understanding or in the COA letter, as well as the effort (i.e.,
            number of hours, days, etc.) and rate being billed.

      (7)   TRAVEL -- Include domestic and foreign travel. Foreign travel is
            travel outside of Canada, the United States and its territories and
            possessions. However, for an organization located outside Canada,
            the United States and its territories and possessions, foreign
            travel means travel outside that country. Foreign travel must be
            billed separately from domestic travel.

      (8)   SUBCONTRACT COSTS -- List subcontractor(s) by name and amount
            billed.

      (9)   OTHER -- List all other direct costs in total unless exceeding
            $1,000 in amount. If over $1,000, list cost elements and dollar
            amounts separately. If the contract contains restrictions on any
            cost element, that cost element must be listed separately.

(l)   COST OF MONEY (COM) -- Cite the COM factor and base in effect during the
      time the cost was incurred and for which reimbursement is claimed.

(m)   INDIRECT COSTS-OVERHEAD -- Identify the cost base, indirect cost rate, and
      amount billed for each indirect cost category.

(n)   FIXED-FEE EARNED -- Cite the formula or method of computation for the
      fixed-fee (if any). The fixed-fee must be claimed as provided for by the
      contract.

(o)   TOTAL AMOUNTS CLAIMED -- Insert the total amounts claimed for the current
      and cumulative periods.

(p)   ADJUSTMENTS -- Include amounts conceded by the contractor, outstanding
      suspensions, and/or disapprovals subject to appeal.

(q)   GRAND TOTALS

THE CONTRACTING OFFICER MAY REQUIRE THE CONTRACTOR TO SUBMIT DETAILED SUPPORT
FOR COSTS CLAIMED ON ONE OR MORE INTERIM INVOICES/FINANCING REQUESTS.

                                  ATTACHMENT I
                                     Page 3

<PAGE>
                        SAMPLE INVOICE/FINANCING REQUEST

<TABLE>
<S>  <C>                                          <C>  <C>
(a)  Billing Office Name and Address              (b)  Invoice/Financing Request No.

     NATIONAL INSTITUTES OF HEALTH                     ---------------------------------
     National Cancer Institute, RCAB              (c)  Date Invoice Prepared
     EPS, Room
               ------                                  ---------------------------------
     6120 EXECUTIVE BLVD MSC                      (d)  Contract No. and Effective Date
                             --------
     Bethesda, MD 20892-                               ---------------------------------
                        ----------                (f)  Total Estimated Cost of Contract
(e)  Payee's Name and Address
                                                       ---------------------------------
     ABC CORPORATION                              (g)  Total Fixed Fee
     100 Main Street
     Anywhere, U.S.A. zip code                         ---------------------------------

Attention: Name, Title, and Phone Number
           of Official to Whom Payment is Sent
</TABLE>

--------------------------------------------------------------------------------
(h)   This invoice/financing request represents reimbursable costs from Aug. 1,
      1982 through Aug. 31, 1982
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                        (i) Amount Billed     (j) Cumulative Amount
                                                        for Current Period       From Inception
                                                        ------------------    ---------------------
<S>                                                     <C>                   <C>
(k) Direct Costs

   (1) Direct Labor                                          $ 3,400                 $ 6,800
   (2) Fringe Benefits                                           600                   1,200
   (3) Accountable Personal Property
            (Attach Form HHS-565)
          Permanent Research                                   3,000                   6,000
          General Purpose                                      2,000                   2,000
   (4) Materials and Supplies                                  2,000                   4,000
   (5) Premium Pay                                               100                     150
   (6) Consultant Fee-Dr. Jones 1 day @ 100 (COA #3)             100                     100
   (7) Travel (Domestic)                                         200                     200
              (Foreign)                                          200                     200
   (8) Subcontract Costs                                         -0-                     -0-
   (9) Other                                                     -0-                     -0-
                                                             -------                 -------
   Total Direct Costs                                        $11,600                 $20,650

(l)  Cost of Money (Factor) of (Appropriate Base)              2,400                   3,600
(m)  Indirect Costs - Overhead
     _____% of Direct Labor or Other Base (Formula)            4,000                   6,000
(n)  Fixed-Fee Earned (Formula)                                  700                   1,400
                                                             -------                 -------
(o)  Total Amount Claimed                                    $18,700                 $31,650
(p)  Adjustments
       Outstanding Suspensions                                                        (1,700)
                                                                                     -------
(q)  Grand Totals                                            $18,700                 $29,950
</TABLE>

"I certify that all payments requested are for appropriate purposes and in
accordance with the contract."

-----------------------------------           ----------------------------------
Name of Official                              (Title)

                                  ATTACHMENT I
                                     Page 4
<PAGE>
             ANNUAL TECHNICAL PROGRESS REPORT FORMAT FOR EACH STUDY

Study Title:
Date:

Provide the number of subject enrolled in the study to date according to the
following categories:

<TABLE>
<CAPTION>
                 AMERICAN                    BLACK,                  WHITE,
                 INDIAN OR     ASIAN OR      NOT OF                  NOT OF      OTHER
                 ALASKAN       PACIFIC       HISPANIC                HISPANIC    OR
                 NATIVE        ISLANDER      ORIGIN      HISPANIC    ORIGIN      UNKNOWN     TOTAL
                 ---------     --------      --------    --------    -------     -------     ------
<S>              <C>           <C>           <C>         <C>         <C>         <C>         <C>
  FEMALE
  MALE
  UNKNOWN
                 ---------     --------      --------    --------    -------     -------     ------
  TOTAL
                 =========     ========      ========    ========    =======     =======     ======
</TABLE>

Subpopulations of the minority groups should also be reported, using a similar
format.

                                  ATTACHMENT II

<PAGE>
PHS 352.223-70 SAFETY AND HEALTH (DEVIATION) (AUGUST 1997)

(a)   To help ensure the protection of the life and health of all persons, and
      to help prevent damage to property, the Contractor shall comply with all
      Federal, State and local laws and regulations applicable to the work being
      performed under this contract. These laws are implemented and/or enforced
      by the Environmental Protection Agency, Occupational Safety and Health
      Administration and other agencies at the Federal, State and local levels
      (Federal, State and local regulatory/enforcement agencies).

(b)   Further, the Contractor shall take or cause to be taken additional safety
      measures as the Contracting Officer in conjunction with the project or
      other appropriate officer, determines to be reasonably necessary. If
      compliance with these additional safety measures results in an increase or
      decrease in the cost or time required for performance of any part of work
      under this contract, an equitable adjustment will be made in accordance
      with the applicable "Changes" Clause set forth in this contract.

(c)   The Contractor shall maintain an accurate record of, and promptly report
      to the Contracting Officer, all accidents or incidents resulting in the
      exposure of persons to toxic substances, hazardous materials or hazardous
      operations; the injury or death of any person; and/or damage to property
      incidental to work performed under the contract and all violations for
      which the Contractor has been cited by any Federal, State or local
      regulatory/enforcement agency. The report shall include a copy of the
      notice of violation and the findings of any inquiry or inspection, and an
      analysis addressing the impact these violations may have on the work
      remaining to be performed. The report shall also state the required
      action(s), if any, to be taken to correct any violation(s) noted by the
      Federal, State or local regulatory/enforcement agency and the time frame
      allowed by the agency to accomplish the necessary corrective action.

(d)   If the Contractor fails or refuses to comply promptly with the Federal,
      State or local regulatory/enforcement agency's directive(s) regarding any
      violation(s) and prescribed corrective action(s), the Contracting Officer
      may issue an order stopping all or part of the work until satisfactory
      corrective action (as approved by the Federal, State or local
      regulatory/enforcement agencies) has been taken and documented to the
      Contracting Officer. No part of the time lost due to any stop work order
      shall be subject to a claim for extension of time or costs or damages by
      the Contractor.

(e)   The Contractor shall insert the substance of this clause in each
      subcontract involving toxic substances, hazardous materials, or
      operations. Compliance with the provisions of this clause by
      subcontractors will be the responsibility of the Contractor.

                                (End of clause)

                                 ATTACHMENT III

<PAGE>
   FEDERAL REGISTER / VOL. 62, No. 66 / Monday, April 7, 1997 / Notices 16597

....

09-25-0200

SYSTEM NAME:

      Clinical, Epidemiologic and Biometric Studies of the National Institutes
of Health (NIH), HHS/NIH/OD.

SECURITY CLASSIFICATION:

      None.

SYSTEM LOCATION:

      Records are located at NIH and Contractor research facilities which
collect or provide research data for this system. Contractors may include, but
are not limited to: Research centers, clinics, hospitals, universities, medical
schools, research institutions/foundations, national associations, commercial
organizations. collaborating State and Federal Government agencies. and
coordinating centers. A current list of sites, including the address of any
Federal Records Center where records from this system may be stored, is
available by writing to the appropriate Coordinator listed under Notification
Procedure.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:

      Adults and/or children who are the subjects of clinical, epidemiologic,
and biometric research studies of the NIH. Individuals with disease. Individuals
who are representative of the general population or of special groups including.
but not limited to: Normal controls, normal volunteers, family members and
relatives; providers of services (e.g., health care and social work): health
care professionals and educators, and demographic sub-groups as applicable, such
as age, sex, ethnicity, race, occupation, geographic location; and groups
exposed to real and/or hypothesized risks (e.g., exposure to biohazardous
microbial agents).

CATEGORIES OF RECORDS IN THE SYSTEM:

      The system contains data about individuals as relevant to a particular
research study. Examples include. but are not limited to: Name, study
identification number, address. relevant telephone numbers, Social Security
Number (voluntary), driver's license number, date of birth. weight, height, sex,
race: medical, psychological and dental information, laboratory and diagnostic
testing results; registries: social, economic and demographic data; health
services utilization; insurance and hospital cost data. employers, conditions of
the work environment, exposure to hazardous substances/compounds; information
pertaining to stored biologic specimens (including blood, urine, tissue and
genetic materials), characteristics and activities of health care providers and
educators and trainers (including curriculum vitae); and associated
correspondence.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:

      "Research and Investigation," "Appointment and Authority of the Directors
of the National Research Institutes." "National Cancer Institute," "National Eye
Institute," "National Heart, Lung and Blood Institute," "National Institute on
Aging." "National Institute on Alcohol Abuse and Alcoholism." "National
Institute on Allergy and Infectious Diseases," "National Institute of Arthritis
and Musculoskeletal and Skin Diseases," "National Institute of Child Health and
Human Development," "National Institute on Deafness and Other Communication
Disorders," "National Institute of Dental Research," "National Institute of
Diabetes, and Digestive and Kidney Diseases," "National Institute of Drug
Abuse." "National Institute of Environmental Health Sciences," "National
Institute of Mental Health." "National Institute of Neurological Disorders and
Stroke." and the "National Center for Human Genome Research," of the Public
Health Service Act. (42 U.S.C. 241, 242. 248. 281. 282. 284. 285a, 285b, 285c,
285d, 285e, 285f, 285g, 285h, 285i, 285j. 2851, 285m, 285n. 2850. 285p. 285q,
287, 287b, 287c, 289a, 289c. and 44 U.S.C. 3101.)

PURPOSES

      To document, track, monitor and evaluate NIH clinical, epidemiologic and
biometric research activities.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS
AND THE PURPOSES OF SUCH USES:

      1. A record may be disclosed for a research purpose, when the Department:
(A) has determined that the use or disclosure does not violate legal or policy
limitations under which the record was provided, collected, or obtained; e.g..
disclosure of alcohol or drug abuse patient records will be made only in
accordance with the restrictions of confidentiality statutes and regulations 42
U.S.C. 241, 42 U.S.C. 290dd-2, 42 CFR part 2, and where applicable, no
disclosures will be made inconsistent with an authorization of confidentiality
under 42 U.S.C. 241 and 42 CFR part 2a: (B) has determined that the research
purpose (1) cannot be reasonably accomplished unless the

                                 Attachment IV

<PAGE>
16598   FEDERAL REGISTER / VOL. 62, No. 66 / Monday. April 7. 1997 / Notices

record is provided in individually identifiable form, and (2) warrants the risk
to the privacy of the individual that additional exposure of the record might
bring; (C) has required the recipient to (1) establish reasonable
administrative, technical, and physical safeguards to prevent unauthorized use
or disclosure of the record, (2) remove or destroy the information that
identifies the individual at the earliest time at which removal or destruction
can be accomplished consistent with the purpose of the research project, unless
the recipient has presented adequate justification of a research or health
nature for retaining such information, and (3) make no further use or disclosure
of the record except (a) in emergency circumstances affecting the health or
safety of any individual, (b) for use in another research project, under these
same conditions, and with written authorization of the Department, (c) for
disclosure to a property identified person for the purpose of an audit related
to the research project, if information that would enable research subjects to
be identified is removed or destroyed at the earliest opportunity consistent
with the purpose of the audit, or (d) when required by law; and (D) has secured
a written statement attesting to the recipient's understanding of, and
willingness to abide by, these provisions.

      2. Disclosure may be made to a Member of Congress or to a Congressional
staff member in response to an inquiry of the Congressional office made at the
written request of the constituent about whom the record is maintained.

      3. The Department of Health and Human Services (HHS) may disclose
information from this system of records to the Department of Justice when: (a)
The agency or any component thereof; or (b) any employee of the agency in his or
her official capacity where the Department of Justice has agreed to represent
the employee; or (c) the United States Government, is a party to litigation or
has an interest in such litigation, and by careful review, the agency determines
that the records are both relevant and necessary to the litigation and the use
of such records by the Department of Justice is therefore deemed by the agency
to be for a purpose that is compatible with the purpose for which the agency
collected the records.

      4. Disclosure may be made to agency contractors, grantees, experts,
consultants, collaborating researchers, or volunteers who have been engaged by
the agency to assist in the performance of a service related to this system of
records and who need to have access to the records in order to perform the
activity. Recipients shall be required to comply with the requirements of the
Privacy Act of 1974, as amended, pursuant to 5 U.S.C. 552a(m).

      5. Information from this system may be disclosed to Federal agencies,
State agencies (including the Motor Vehicle Administration and State vital
statistics offices, private agencies, and other third parties (such as current
or prior employers, acquaintances, relatives), when necessary to obtain
information on morbidity and mortality experiences and to locate individuals for
follow-up studies. Social Security numbers, date of birth and other identifiers
may be disclosed: (1) To the National Center for Health Statistics to ascertain
vital status through the National Death Index; (2) to the Health Care Financing
Agency to ascertain morbidities; and (3) to the Social Security Administration
to ascertain disabilities and/or location of participants. Social Security
numbers may also be given to other Federal agencies, and State and local
agencies when necessary to locating individuals for participation in follow-up
studies.

      6. Medical information may be disclosed in identifiable form to tumor
registries for maintenance of health statistics, e.g., for use in epidemiologic
studies.

      7.(a). PHS may inform the sexual and/or needle-sharing partner(s) of a
subject individual who is infected with the human immunodeficiency virus (HIV)
of their exposure to HIV, under the following circumstances: (1) The information
has been obtained in the course of clinical activities at PHS facilities carried
out by PHS personnel or contractors; (2) The PHS employee or contractor has made
reasonable efforts to counsel and encourage the subject individual to provide
the information to the individual's sexual or needle-sharing partner(s); (3) The
PHS employee or contractor determines that the subject individual is unlikely to
provide the information to the sexual or needle-sharing partner(s) or that the
provision of such information cannot reasonably be verified: and (4) The
notification of the partner(s) is made, whenever possible, by the subject
individual's physician or by a professional counselor and shall follow standard
counseling practices.

      (b). PHS may disclose information to State or local public health
departments. to assist in the notification of the subject individual's sexual
and/or needle sharing partner(s), or in the verification that the subject
individual has notified such sexual or needle-sharing partner(s).

      8. Certain diseases and conditions, including infectious diseases, may be
reported to appropriate representatives of State or Federal Government as
required by State or Federal law.

      9. Disclosure may be made to authorized organizations which provide health
services to subject individuals or provide third-party reimbursement or fiscal
intermediary functions, for the purpose of planning for or providing such
services, billing or collecting third-party reimbursements.

      10. The Secretary may disclose information to organizations deemed
qualified to carry out quality assessment, medical audits or utilization
reviews.

      11. Disclosure may be made for the purpose of reporting child, elder or
spousal abuse or neglect or any other type of abuse or neglect as required by
State or Federal law.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, AND
DISPOSING OF RECORDS IN THE SYSTEM:

STORAGE:

      Records may be stored on index cards, file folders, computer tapes and
disks (including optical disks), photography media, microfiche, microfilm, and
audio and video tapes. For certain studies, factual data with study code numbers
are stored on computer tape or disk, while the key to personal identifiers is
stored separately, without factual data, in paper/computer files.

RETRIEVABILITY:

      During data collection stages and follow-up, retrieval is by personal
identifier (e.g., name, Social Security Number, medical record or study
identification number, etc.). During the data analysis stage, data are normally
retrieved by the variables of interest (e.g., diagnosis, age, occupation).

SAFEGUARDS:

      1. Authorized Users: Access to identifiers and to link files is strictly
limited to the authorized personnel whose duties require such access. Procedures
for determining authorized access to identified data are established as
appropriate for each location. Personnel, including contractor personnel, who
may be so authorized include those directly involved in data collection and in
the design of research studies. e.g., interviewers and interviewer supervisors;
project managers; and statisticians involved in designing sampling plans. Other
one-time and special access by other employees is granted on a need-to-know
basis as specifically authorized by the system manager.

                                  Attachment IV

<PAGE>
FEDERAL REGISTER / Vol. 62, No. 66 / Monday, April 7, 1997 / Notices   16599

      Researchers authorized to conduct research on biologic specimens will
typically access the system through the use of encrypted identifiers sufficient
to link individuals with records in such a manner that does not compromise
confidentiality of the individual.

      2. Physical Safeguards: Records are either stored in locked rooms during
off-duty hours, locked file cabinets, and/or secured computer facilities. For
certain studies, personal identifiers and link files are separated and stored in
locked files. Computer data access is limited through the use of key words known
only to authorized personnel.

      3. Procedural Safeguards: Collection and maintenance of data is consistent
with legislation and regulations in the protection of human subjects, informed
consent, confidentiality, and confidentiality specific to drug and alcohol abuse
patients where these apply. When anonymous data is provided to research
scientists for analysis, study numbers which can be matched to personal
identifiers will be eliminated, scrambled, or replaced by the agency or
contractor with random numbers which cannot be matched. Contractors who maintain
records in this system are instructed to make no further disclosure of the
records. Privacy Act requirements are specifically included in contracts for
survey and research activities related to this system. The OHS project
directors, contract officers, and project officers oversee compliance with these
requirements. Personnel having access are trained in Privacy Act requirements.
Depending upon the sensitivity of the information in the record, additional
safeguard measures may be employed.

      4. Implementation Guidelines: DHHS Chapter 45-13 and supplementary Chapter
PHS.hf: 45-13 of the HHS General Administration Manual and Part 6. "ADP System
Security" of the HHS ADP Systems Security Manual.

RETENTION AND DISPOSAL:

      Records are retained and disposed of under the authority of the NIH
Records Control Schedule contained in NIH Manual Chapter 1743, Appendix 1 -
"Keeping and Destroying Records" (HHS Records Management Manual. Appendix
B-361), item 3000-G-3, which allows records to be kept as long as they are
useful in scientific research. Collaborative Perinatal Project records are
retained in accordance with item 3000-G-4, which does not allow records to be
destroyed. William A. White Clinical Research Program medical records (Saint
Elizabeths Hospital. NIMH) are retained for 5 years after last discharge or upon
death of a patient and then transferred to the Washington National Records
Center, where they are retained until 30 years after discharge or death. Refer
to the NIH Manual Chapter for specific conditions on disposal or retention
instructions.

....
<PAGE>

            DHHS SMALL, SMALL DISADVANTAGED, HUBZone AND WOMAN-OWNED
                       SMALL BUSINESS SUBCONTRACTING PLAN

                                                           DATE OF PLAN: 8/16/99
                                                                        --------

CONTRACTOR:            Gen-Probe Incorporated
           ---------------------------------------------------------------------
ADDRESS:               10210 Genetic Center Drive
        ------------------------------------------------------------------------
                       San Diego, California 92121
--------------------------------------------------------------------------------

DUNN & BRADSTREET NUMBER:
                         -------------------------------------------------------

SOLICITATION OR CONTRACT NUMBER:              RFP NHLBI-HB-99-10
                                ------------------------------------------------

ITEM/SERVICE (Description): Refinement of New Assays for Direct Detection of
                            ----------------------------------------------------

Nucleic Acids in Donated Organs
--------------------------------------------------------------------------------

TOTAL CONTRACT AMOUNT (Breakout Options): $ 7,583,879          $
                                           ------------------   ----------------
                                              Base year or          Option #1
                                           Multi-year amount     (If applicable)

$                        $                        $
 ----------------------   ----------------------   -----------------------------
       Option #2                 Option #3                  Option #4
   (If applicable)            (If applicable)            (If applicable)

TOTAL MODIFICATION AMOUNT, IF APPLICABLE     $
                                              ----------------------------------
TOTAL TASK ORDER AMOUNT, IF APPLICABLE       $
                                              ----------------------------------

PERIOD OF CONTRACT PERFORMANCE (Month, Day & Year): 10/01/99 - 9/30/02
                                                    ------------------

The following is a suggested model for use when developing subcontracting plans
as required by P.L. 95-507 and implemented by Federal Acquisition Regulations
(FAR) Subpart 19.7. While this model plan has been designed to be consistent
with statutory and regulatory requirements, other formats of a subcontracting
plan may be acceptable; however, failure to include the essential information as
exemplified in this model may be cause for either a delay in acceptance or the
rejection of a bid or offer when a subcontracting plan is required. Further, the
use of this model is not intended to waive other requirements that may be
applicable under statute or regulation. "SUBCONTRACT," as used in this clause,
means any agreement (other than one involving an employer-employee relationship)
entered into by a federal Government prime contractor or subcontractor calling
for supplies or services required for performance of the contract or
subcontract.

                                                                    ATTACHMENT V

<PAGE>

1. TYPE OF PLAN (check one)

     [X] Individual plan (all elements developed specifically for this contract
     and applicable for the full term of this contract)

     [ ] Master plan (goals developed for this contract; all other elements
     standardized and approved by a lead agency Federal Official; must be
     renewed every three years and contractor must provide copy of lead agency
     approval)

     [ ] Commercial product/service plan (contractor sells large quantities of
     off-the shelf commodities to many Government agencies. Plans/goals
     negotiated on a company, division, plant or product line basis reflecting
     projected annual sales for commercial and non-commercial items. Must be
     renewed annually and contractor must provide copy of lead agency approval).

2. GOALS

State separate dollar and percentage goals for Small Business (SB), Small
Disadvantaged Business (SDB), Woman-owned Small Business (WOSB), Historically
Underutilized Business Zone (HUBZone) and "Other@ than small business (OTHER) as
subcontractors, for the base year and each option year, as specified in FAR
19.704 (break out and append option year goals, if applicable) or project annual
subcontracting base and goals under commercial plans.

      a. Total estimated dollar value of ALL planned subcontracting i.e., with
      ALL types of concerns under this contract is $2,160,787

      b. Total estimated dollar value and percent of planned subcontracting with
      SMALL BUSINESSES (including SDB, WOSB and HUBZone): (% of "a") $450,500
      and 20.8%

      c. Total estimated dollar value and percent of planned subcontracting with
      SMALL DISADVANTAGED BUSINESSES: (% of "a") $78,350 and 3.6%

      d. Total estimated dollar value and percent of planned subcontracting with
      WOMAN-OWNED SMALL BUSINESSES: (% of "a") $85,875 and 4.0%

      e. Total estimated dollar and percent of planned subcontracting with
      HUBZone SMALL BUSINESSES: (% of "a") $0 and 0%

      f. Total estimated dollar and percent of planned subcontracting with OTHER
      THAN SMALL BUSINESSES: (% of "a") $1,710,287 and 79.2%

                                                                               2
<PAGE>

Provide a description of ALL the products and/or services, to be subcontracted
under this contract, and indicate the size and type of business supplying them
[i.e. (OTHER), (SB), (SDB), (WOSB), (HUBZone)].

TYPE OF BUSINESS (Check all that Apply)

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
Subcontracting Product/Service        Other       SB        SDB       WOSB      HUBZone
---------------------------------------------------------------------------------------
<S>                                   <C>         <C>       <C>       <C>       <C>
Westat, Inc.                            X
---------------------------------------------------------------------------------------
Travel                                            X
---------------------------------------------------------------------------------------
Specimen                                X         X
---------------------------------------------------------------------------------------
Materials                               X         X          X          X
---------------------------------------------------------------------------------------
Cleaning                                X         X          X          X
---------------------------------------------------------------------------------------
</TABLE>

g. Provide a description of the method used to develop the subcontracting goals
for small, small disadvantaged, woman-owned and HUBZone small businesses
concerns. Address efforts made to ensure that maximum practicable subcontracting
opportunities have been made available for those concerns and explain the method
used to identify potential sources for solicitation purposes. Explain the method
and state the quantitative basis (in dollars) used to establish the percentage
goals. Also, explain how the areas to be subcontracted to small, small
disadvantaged, woman-owned and HUBZone small business concerns were determined
and how the capabilities of these concerns were considered for subcontract
opportunities. Identify any source lists or other resources used in the
determination process. (attach additional sheets, if necessary)

Goals were based on use of current and projected vendors, clinical trials,
materials, specimens. cleaning and other. A thorough analysis of existing
vendors will be conducted and where prices or services are competitive we will
select SDB and WOSB. New SDB and WOSB vendors will be sought on advise from the
Small Business Administration in San Diego and in California.

h. Indirect costs have [    ] have not [X] been included in the dollar and
percentage subcontracting goals above. (check one)

i.    If indirect costs have been included, explain the method used to determine
      the proportionate share of such costs to be allocated as subcontracts to
      small, small disadvantaged, woman-owned, and HUBZone small business
      concerns.

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

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

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

                                                                               3
<PAGE>

3. PROGRAM ADMINISTRATOR:

       NAME/TITLE: Mike Whitmore, Purchasing Manager
                  --------------------------------------------------------------
       ADDRESS: 10210 Genetic Center Drive, San Diego, CA 92121
               -----------------------------------------------------------------
       TELEPHONE/E-MAIL: (619) 410-8788
                        --------------------------------------------------------

DUTIES: Has general overall responsibility for the company's subcontracting
program, i.e., developing, preparing, and executing subcontracting plans and
monitoring performance relative to the requirements of those subcontracting
plans. Other duties include, but are not limited to, the following activities:

      a.    Developing and promoting company-wide policy initiatives that
            demonstrate the company's support for awarding contracts and
            subcontracts to small, small disadvantaged, woman-owned and HUBZone
            small business concerns; and for assuring that these concerns are
            included on the source lists for solicitations for products and
            services they are capable of providing.

      b.    Developing and maintaining bidder source lists of small, small
            disadvantaged, woman-owned and HUBZone small business concerns from
            all possible sources;

      c.    Ensuring periodic rotation of potential subcontractors on bidder's
            lists;

      d.    Ensuring that requests for contracts (RFC) are designed to permit
            the maximum practicable participation of small, small disadvantaged,
            woman-owned and HUBZone small businesses;

      e.    Accessing various sources for the identification of small, small
            disadvantaged, woman-owned and HUBZone small businesses concerns to
            include the SBA's PRONET System, the Federal Acquisition Computer
            Network (FACNET) Contractor Registration Data Base, the National
            Minority Purchasing Council Vendor Information Service, the Office
            of Minority Business Data Center in the Department of Commerce,
            local small business and minority associations, contact with local
            chambers of commerce and Federal agencies' Small Business Offices;

      f.    Establishing and maintaining contract and subcontract award records;

      g.    Participating in Business Opportunity Workshops, Minority Business
            Enterprise Seminars, Trade Fairs, Procurement Conferences, etc;

      h.    Ensuring that small, small disadvantaged, woman-owned and HUBZone
            small business concerns are made aware of subcontracting
            opportunities and assisting concerns in preparing responsive bids to
            the company;

      i.    Conducting or arranging for the conduct of training for purchasing
            personnel regarding the intent and impact of Public Law 95-507 on
            purchasing;

      j.    Monitoring the company's subcontracting program performance and
            making any adjustments necessary to achieve the subcontract plan
            goals;

      k.    Preparing, and submitting timely, required subcontract reports;

      l.    Coordinating the company's activities during the conduct of
            compliance reviews by Federal agencies, and;

      m.    Other duties:
                         -------------------------------------------------------

                                                                               4
<PAGE>

4. Equitable Opportunity

Describe efforts the offeror will make to ensure that small, small
disadvantaged, woman-owned and HUBZone small business concerns will have an
equitable opportunity to compete for subcontracts. These efforts include, but
are not limited to, the following activities:

      a. Outreach efforts to obtain sources:

            1) Contacting minority and small business trade associations; 2)
            Contacting business development organizations and local chambers
            of commerce; 3) Attending small, small disadvantaged, woman-owned
            and HUBZone small business procurement conferences and trade fairs;
            4) Requesting sources from the Small Business Administrations (SBA)
            PRONET, and other SBA resources, and; 5) Conducting market surveys
            to identify new sources.

      b. Internal efforts to guide and encourage purchasing personnel:

            1) Conducting workshops, seminars, and training programs; 2)
            Establishing, maintaining, and utilizing small, small disadvantaged,
            and woman-owned and HUBZone small business source lists, guides, and
            other data for soliciting subcontractors, and; 3) Monitoring
            activities to evaluate compliance with the subcontracting plan.

      c. Additional efforts:
                            ----------------------------------------------------

5. Flow Down Clause

      The contractor agrees to include the provisions under FAR 52.219-8,
      "Utilization of Small, Small Disadvantaged, and Women-Owned Small Business
      Concerns", in all subcontracts that offer further subcontracting
      opportunities. All subcontractors, except small business concerns, that
      receive subcontracts in excess of $500,000 ($1,000,000 for construction)
      must adopt and comply with a plan similar to the plan required by FAR
      52.219-9, "Small, Small Disadvantaged, and Women-Owned Small Business
      Subcontracting Plan." (FAR 19.704(a)(4)).

6. Reporting and Cooperation

      The contractor gives assurance of (1) cooperation in any studies or
      surveys that may be required; (2) submission of periodic reports which
      show compliance with the subcontracting plan; (3) Submission of Standard
      Form (SF) 294, "Subcontracting Report for Individual Contracts," and
      attendant Optional Form 312, SDB Participation Report and SF-295, "Summary
      Subcontract Report," in accordance with the instructions on the forms; and
      (4) ensuring that subcontractors agree to submit Standard Forms 294 and
      95.

<TABLE>
<CAPTION>
          --------------------------------------------------------------
          Reporting Period              Report Due              Due Date
          --------------------------------------------------------------
<S>                                     <C>                     <C>
          Oct 1 - Mar 31                SF-294/of 312           4/30
          --------------------------------------------------------------
          Apr 1 - Sept 30               SF-294/of 312           10/30
          --------------------------------------------------------------
          Oct 1 - Sept 30               SF-295                  10/30
          --------------------------------------------------------------
</TABLE>

      Special instructions for commercial products plan: SF295 Report is due on
      10/30 each year for the previous fiscal year ended 9/30.

                                                                               5
<PAGE>

      (a) Submit SF-294 and attendant of Form 312 to: cognizant Contracting
      Officer

      (b) Submit SF-295 to cognizant contracting officer and to the:
      Office of Small and Disadvantaged Business Utilization
      Department of Health and Human Services
      200 Independence Avenue, SW
      Humphrey H. Building, Room 517-D
      Washington, D.C. 20201

      (c) Submit "info" copy to SBA Commercial Market Representative (CMR); call
      SBA at 202/205-6475 to locate CMR.

7. Record keeping

      The following is a recitation of the types of records the contractor will
      maintain to demonstrate the procedures adopted to comply with the
      requirements and goals in the subcontracting plan. These records will
      include, but not be limited to, the following:

      a. Small, small disadvantaged, woman-owned and HUBZone small businesses
      source lists, guides and other data identifying such vendors;

      b. Organizations contacted in an attempt to locate small, small
      disadvantaged, and woman-owned and HUBZone small business sources;

      c. On a contract-by-contract basis, records on all subcontract
      solicitations over $100,000, which indicate for each solicitation (1)
      whether small business concerns were solicited, and, if not; (2) whether
      small disadvantaged business concerns were solicited, if not, why not; (3)
      whether woman-owned small business concerns were solicited, and if not,
      why not; and (4) whether HUBZone small business concerns were solicited,
      if not, why not and (5) the reason for the failure of solicited small,
      small disadvantaged, and woman-owned and HUBZone small business concerns
      to receive the subcontract award;

      d. Records to support other outreach efforts, e.g., contracts with
      minority and small business trade associations, attendance at small and
      minority business procurement conferences and trade fairs;

      e. Records to support internal guidance and encouragement provided to
      buyers through (1) workshops, seminars, training programs, incentive
      awards; and (2) monitoring performance to evaluate compliance with the
      program & requirements, and;

      f. On a contract-by-contract basis, records to support subcontract award
      data including the name address, and business type and size of each
      subcontractor. (This item is not required for company or division-wide
      commercial products plans.)

      g. Additional records:
                            ----------------------------------------------------

REVISED OCTOBER 1998

                                                                               6
<PAGE>

                                 SIGNATURE PAGE
                                 (If applicable)

THIS SUBCONTRACTING PLAN WAS SUBMITTED BY:

CONTRACTOR:   GEN-PROBE INCORPORATED
           ---------------------------------------------------------------------

CONTRACTOR SIGNATURE:   /s/ DAVID KRAMER
                     -----------------------------------------------------------

TYPED SIGNATURE:   DAVID KRAMER
                ----------------------------------------------------------------

TITLE:   CHIEF FINANCIAL OFFICER
      --------------------------------------------------------------------------

DATE PREPARED:   AUGUST 16, 1999
              ------------------------------------------------------------------

THIS PLAN (CHECK ONE)
[X] INDIVIDUAL      [ ] MASTER     [ ] COMMERCIAL

IS ACCEPTED BY:
FEDERAL AGENCY: DEPARTMENT OF HEALTH & HUMAN
SERVICES/NIH/NHLBI
--------------------------------------------------------------------------------

FEDERAL CONTRACTING OFFICER SIGNATURE:   SEE BELOW.
                                      ------------------------------------------

TYPED NAME: LYNDA A. BINDSEIL
           ---------------------------------------------------------------------

DATE:   /s/ LYNDA A. BINDSEIL       8/27/99
     ---------------------------------------------------------------------------

                                                                          PAGE 7

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