Document:

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                                   CONTENTS

1.    REFERENCE DATA...................................................1
      1.1   Exhibits...................................................1

2.    DESCRIPTION OF PREMISES..........................................1

3.    TERM OF LEASE....................................................1
      3.1  Definitions.................................................1
      3.2  Habendum....................................................1
      3.3  Declaration Fixing Term Commencement Date...................2

4.    CONDITION OF PREMISES............................................2
      4.1  Completion Date - Delays....................................2
      4.2  Landlord's Work.............................................3
      4.3  Plans and Specifications....................................6
      4.4  Tenant's Work...............................................6
      4.5  Cost of Changes in Landlord's Work and Tenant's.............6
      4.6  Tenants Delay - Additional Costs............................6
      4.7  Conclusiveness of Landlord's Performance....................7
      4.8  Tenant Payments of Construction Cost........................8

5.    USE OF PREMISES..................................................8
      5.1  Permitted Use...............................................8
      5.2  Prohibited Uses.............................................8
      5.3  Licenses and Permits........................................8

6.    RENT.............................................................9

7.    HAZARDOUS MATERIALS..............................................9

8.    SERVICES FURNISHED BY LANDLORD..................................11
      8.1  Utilities..................................................12
      8.2  Cleaning Services..........................................12
      8.3  Repairs....................................................12
      8.4  Interruption or Curtailment of Services....................12

9.    OPERATING COSTS AND TAXES.......................................13
      9.1  Definitions................................................13
      9.2  Taxes......................................................17
      9.3  Operating Costs............................................18
      9.4  Fart Years.................................................19
      9.5  Survival of Obligations....................................20

10.   INTENTIONALLY OMITTED...........................................20
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11.   FIXTURES, EQUIPMENT AND IMPROVEMENTS-
      REMOVAL BY TENANT...............................................20

12.   ALTERATIONS AND IMPROVEMENTS BY TENANT..........................21

13.   TENANT'S CONTRACTORS-MECHANICS' AND OTHER LIENS-
      STANDARD OF TENANT'S PERFORMANCE-
      COMPLIANCE WITH LAWS............................................21

14.   REPAIRS BY TENANT-FLOOR LOAD....................................23
      14.1  Repairs by Tenant.........................................23
      14.2  Floor Load-Heavy Machinery................................24

15.   INSURANCE, INDEMNIFICATION, EXONERATION AND
      EXCULPATION.....................................................24
      15.1  Insurance.................................................24
      15.2  Certificates of Insurance.................................25
      15.3  Tenant indemnity of Landlord..............................26
      15.4  Property of Tenant........................................26
      15.5  Bursting of Pipes, etc....................................26
      15.6  Repairs and Alterations-No Diminution of Rental Value.....27
      15.7  Landlord Indemnity of Tenant..............................27

16.   ASSIGNMENT, MORTGAGING AND SUBLETTING...........................27

17.   MISCELLANEOUS COVENANTS.........................................30
      17.1  Rules and Regulations.....................................30
      17.2  Access to Premises-Shoring................................30
      17.3  Accidents to Sanitary and Other Systems...................31
      17.4  Signs, Blinds and Drapes..................................32
      17.5  Estoppel Certificate......................................32
      17.6  Intentionally omitted.....................................32
      17.7  Requirements of Law-Fines and Penalties...................32
      17.8  Tenant's Acts-Effect on Insurance.........................33
      17.9  Miscellaneous.............................................34

18.   DAMAGE BY FIRE, ETC.............................................34
      18.1  Casualty Insurance........................................34
      18.2  Repair of Damage Caused by Casualty.......................34
      18.3  Landlord's Termination Rights.............................35
      18.4  Tenant's Termination Rights...............................35
      18.5  General Provisions Relating to Any Casualty Termination...37

19.   WAIVER OF SUBROGATION...........................................37

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20.   CONDEMNATION - EMINENT DOMAIN...................................38
      20.1  Landlord's Termination Rights.............................38
      20.2  Tenant's Termination Rights...............................38
      20.3  Termination Band Upon Actual Restoration Period...........39
      20.4  General Taking Provisions.................................40
      20.5  Taking Proceeds...........................................40
      20.6  Temporary Takings.........................................41

21.   DEFAULT.........................................................41
      21.1  Conditions of Limitation - Re-entry - Termination.........41
      21.2  Intentionally Omitted.....................................42
      21.3  Damages -Termination......................................42
      21.4  Fees and Expenses.........................................43
      21.5  Intentionally Omitted.....................................45
      21.6  Remedies Not Exclusive....................................45
      21.7  Grace Period..............................................45

22.   END OF TERM - ABANDONED PROPERTY................................45

23.   SUBORDINATION...................................................46

24.   QUIET ENJOYMENT.................................................48

25.   ENTIRE AGREEMENT - WAIVER - SURRENDER...........................49
      25.1  Entire Agreement..........................................49
      25.2  Waiver....................................................49
      25.3  Surrender.................................................49

26.   INABILITY TO PERFORM EXCULPATORY CLAUSE.........................49

27.   BILLS AND NOTICES...............................................51

28.   PARTIES BOUND - SEIZIN OF TITLE.................................52

29.   MISCELLANEOUS...................................................52
      29.1  Separability..............................................52
      29.2  Captions, etc.............................................52
      29.3  Broker....................................................52
      29.4  Intentionally Omitted.....................................53
      29.5  Arbitration...............................................53
      29.6  Governing Law.............................................53
      29.7  Assignment of Rents.......................................53
      29.8  Representation of Authority...............................54
      29.9  Expenses Incurred by Landlord Upon Tenant Requests........54

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      29.10 Survival..................................................54

30.   CONDITIONS TO LEASE EXECUTION...................................54

EXHIBITS

      Exhibit 1         Lease Data Exhibit
      Exhibit 2         Plan of Property
      Exhibit 2-1       Legal Description
      Exhibit 3         Landlord's Work
      Exhibit 4         Cleaning Specifications
      Exhibit 5         Initial Approved Operating Budget
      Exhibit 6         Tenant's Removable Property
      Exhibit 7         Form of Letter of Credit
      Rider

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     THIS INDENTURE OF LEASE made and entered into as of this ___ day of August,
1999 by and between Pentose Pharmaceuticals, Inc. ("Tenant") and Coolidge
Partners, LLC ("Landlord').

     Landlord does hereby demise and lease to Tenant, and Tenant does hereby
hire and take from Landlord, the Premises hereinafter mentioned and described
(hereinafter referred to as "Premises") upon and subject to the covenants,
agreements, terms, provisions and conditions of this Lease for the term
hereinafter stated:

1.   REFERENCE DATA

     1.1  Exhibits.  Each reference in this Lease to any of the trims and tides
contained in any Exhibit attached to this Lease shall be deemed and construed to
incorporate the data stated under that term or title in such Exhibit.

2.   DESCRIPTION OF DEMISED PREMISES

     The Premises are the entirety of the Building and the Land described on
Exhibit I.  The parties acknowledge that the Building contains two floors and
that each floor of' the Building is sometimes hereinafter referred to as a
"Portion" of the Premises.

3.   TERM OF LEASE

     3.1  Definitions.  As used in this Lease the words and terms which follow
mean and include the following:

          (a)  "Specified Commencement Date" in respect of either Portion of the
Premises shall be defined as the date that it is estimated that Landlord's Work
in respect of such Portion of the Premises will be substantially completed.

          (b)  "Term Commencement Date" in respect of the First Floor Premises
shall be defined as the earlier of: (i) the date that Landlord's Work in respect
of the First Floor Premises is deemed to be substantially complete, in
accordance with Article 4.2 of the Lease, or (ii) the date that Tenant first
commences to use the First Floor Premises, or any portion thereof, for business
purposes.  The installation of Tenant's furniture, fixtures, and equipment shall
not be deemed to be commencement of use for the purposes of clause (ii) of this
Paragraph (b).

          (c)  "Term Commencement Date" in respect of the Second Floor Premises
shall be defined as the earlier of (i) the date that Landlord's Work in respect
of the Second Floor Premises is deemed to be substantially complete. In
accordance with Article 4.2 of the Lease, and (ii) the date that Tenant fist
commences any work in preparing the Second Floor Premises for Tenant's
occupancy.

     3.2  Habendum.  TO HAVE AND TO HOLD the Premises for a term of years
commencing on the earlier of the Term Commencement Date in respect of the First
Floor Premises or the Term Commencement Date in respect of the Second floor
Premises and ending on the Termination Date as stated in Exhibit I or on such
earlier date upon which said term may expire or be terminated pursuant to any of
the conditions of limitation or other provisions of this
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Lease or pursuant to law (which date for the termination of the term hereof is
herein referred to as the "Termination Date"), as such date may be extended
pursuant to Paragraph I of the Rider to the Lease. Notwithstanding the
foregoing, it the Termination Date as stated in Exhibit I shall fall on other
than the last day of the calendar month, said Termination Date, at the option of
Landlord, shall be deemed to be the last day of the calendar month in which said
Termination Date occurs.

     3.3  Declaration Fixing Term Commencement Date.  As soon as reasonably
practicable after the Execution Date hereof, each of the parties hereto agrees,
upon demand of the other party to join in the execution, in recordable form, of
a statutory notice, memorandum, etc. of lease and/or written declaration in
which shall be stated such Term Commencement Dates, the Rent Commencement Dates,
and the Termination Date.  If this Lease terminates in accordance with its terms
before the Termination Date, then upon Landlord's request the parties shall
execute, deliver and record an instrument acknowledging such fact and the date
of termination of this Lease.

4.   CONDITION OF PREMISES

     4.1  Completion Date - Delays.

          (a)  Subject to delay by causes beyond the reasonable control of
Landlord or caused by the action or inaction of Tenant, Landlord shall use
reasonable speed and diligence in the performance of Landlord's Work, as
hereinafter defined, in respect of each Portion of the Premises to substantially
complete Landlord's Work in respect of such Portion of the Premises on the
Specified Commencement Date in respect of such Portion of the Premises.  The
failure to substantially complete Landlord's Work in respect of either Portion
of the Premises on or before the Specified Commencement Date in respect of such
Portion of the Premises shall in no way affect the validity of this Lease or the
obligations of Tenant hereunder nor shall the same be construed in any way to
extend the term of this Lease, except that the Term Commencement Dates, the Rent
Commencement Dates, and, subject to Article 4.2, the Termination Date shall be
based upon the substantial completion of Landlord's Work.  Except as provided in
Paragraph (c) of this Article 42, if Landlord's Work in respect of either
Portion of the Premises is not substantially complete, within the meaning of
Article 4.2 hereof on the Specified Commencement Date in respect of such Portion
of the Premises, Tenant shall not have any claim against Landlord, and Landlord
shall have no liability to Tenant, by reason thereof.

          (b)  Tenant's Termination Right.

     Notwithstanding anything to the contrary herein contained, if the Term
Commencement Date in respect of both Portions of the Premises does not occur on
or before the Outside flat; as hereinafter defined, then Tenant shall have the
right to terminate the Lease as follows.  In such event, Tenant may, after the
Outside Date, give Landlord a written notice ("Termination Notice") of its
intent to terminate the Lease.  If the Term Commencement Date in respect of both
Portions of the Premises do not occur on or before the date thirty (30) days
after Landlord receives such Termination Notice, then this Lease shall terminate
as of such thirtieth (30th) day and Landlord shall return to Tenant any security
then being held by Landlord for Tenant's obligations under the Lease.  If the
Term Commencement Date occurs on or before the thirtieth (30th) day after
Landlord receives such Termination Notice, then the Termination Notice shall be
void and

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without further force or effect, and Tenant shall have no further right to
terminate the Lease pursuant to this Paragraph (b). The "Outside Date" shall be
defined as March 31, 2000, except that the Outside Date shall be extended by the
lesser of (x) an additional sixty (60) days, or (y) the number of days that
Landlord's Work is delayed as the result of causes beyond Landlord's reasonable
control.

          (c)  Liquidated Damages.

     If the Term Commencement Date in respect of the First Floor Premises does
not occur on or before March 31, 2000, then the Liquidated Damage Amount, as
hereinafter defined, shall be credited against the first monthly payment(s) of
Yearly Rent and other charges due under the Lease.  For the purposes hereof, the
"Liquidated Damage Amount" shall be defined as the amount by which the rent or
use and occupation charges, as the case may be, payable by Tenant during the
Holdover Period, as hereinafter defined, to the landlord of its existing
headquarters location ("Existing Premises"), exceeds the amount which Tenant
would have paid to such landlord in respect of the Holdover Period for rent and
other charges had the term of Tenant's lease at the Existing Premises been
extended for the Holdover Period at the same rental rate which was payable by
Tenant immediately prior to the termination of Tenant's lease of the Existing
Premises.  For the purposes of this Paragraph (c), the Holdover Period shall be
the period commencing as of April 1, 2000 and ending as of the first date as of
which the Term Commencement Date In respect of the First Floor Premises and the
Term Commencement Date in respect of the Second Floor Premises have both
occurred.  Tenant shall use reasonable efforts to minimize the Liquidated Damage
Amount.

     4.2  Landlord's Work.

          (a)  Definition of Landlord's Work.  Landlord's Work with respect to
the First Floor Premises consists of finished office space and Landlord's Work
with respect to the Second Floor Premises consists of base building work.
Tenant shall, after the Term Commencement Date in respect of the Second Floor
Premises, perform such work ("Tenant's Work") as is necessary to prepare the
Second Floor Premises for Tenant's use.  Landlord's Work in respect of each
Portion of the Premises is further described on the plans and specifications
described on Exhibit 3.

          (b)  Definition of Substantial Completion.

     Subject to the provisions of this Article 4.2, Landlord's Work in respect
of any Portion of the Premises shall he deemed to be substantially complete as
of the date that Landlord's Work in respect of such Portion of the Premises is
in fact substantially completed.  Landlord's Work shall be deemed to be
substantially complete even if minor or insubstantial details of construction,
decoration Or mechanical adjustments remain to be done, provided that: (i) with
respect to the First Floor Premises, such minor insubstantial details do not
materially interfere with Tenant's use of the First Floor Premises, and (ii)
with respect to the Second Floor Premises, such minor insubstantial details do
not materially interfere with the performance of Tenant's Work in the Second
Floor Premises.  If Landlord's Work is delays as the result of any Tenant
Delays, as hereinafter defined, then Landlord's Work shall be deemed to be
substantially complete as of the date that Landlord's Work would have been
substantially complete, but for such Tenant Delays.

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If Landlord's Work is deemed to be substantially complete, pursuant to the
foregoing, (and the term shall have commenced by reason thereof), but the
Premises are not in fact actually ready for Tenant's occupancy, Tenant shall not
(except with Landlord's consent) be entitled to take possession of the premises
until the Premises are in fact actually ready for such occupancy. Landlord's
certificate of substantial completion, as hereinabove stated, given in good
faith, or of any other facts pertinent to this Article 4.2 shall be deemed
conclusive of the statements therein contained and binding upon Tenant, unless,
within five (5) business days of Tenant's receipt of such certificate, Tenant
gives Landlord written notice, setting forth with specificity Tenant's
objections thereto. Any of Landlord's Work in either Portion of the Premises
which is not fully completed on the Term Commencement Date in respect of such
Portion of The Premises shall thereafter be so completed with reasonable
diligence by Landlord.

          (c)  Definition of Tenant Delays.  "Tenant Delays" shall be defined as
any material delay in the completion of' Landlord's Work to the extent caused in
whole or in part by; (i) special work of which Landlord has given Tenant notice
at the time that Landlord approves Tenant's plans, (ii) changes, alterations or
additions required or made by Tenant in the layout or finish of the premises or
any part thereof, (iii) delays of Tenant in submitting any plans and/or
specifications, supplying information, approving plans, specifications or
estimates, giving authorizations in accordance with the schedule set forth in
Article 4.3(4), and (iv) the delay and/or default on the part of Tenant or its
contractors including, without limitation, the utility companies and other
entities furnishing communications, data processing or other service or
equipment, Landlord hereby agreeing that Tenant will not be charged with any
delay arising from causes set forth under this clause (iv) to the extent that
such delay relates to any period prior to the date that Landlord first gives
tenant written notice of such delay.  For the purposes of this Article 4, a
"material" delay shall be defined as a delay which prevents Landlord from
substantially completing Landlord's Work on or before the Substantial Completion
Date or which requires Landlord to pay premium or additional costs in connection
in the performance of Landlord's Work.

          (d)  "As-is" Condition of Premises.  Except as expressly set forth in
this Lease, Tenant shall take the Premises "as-is", in the condition in which
they are in as of the Term Commencement Date, without any representation or
warranty by Landlord as to the condition of the Premises or the Building, and
without any obligation on the pert of Landlord to prepare or construct the
Premises for Tenant's occupancy.

          (e)  Landlord's Contribution towards Tenant's Work.  Landlord shall
contribute an amount ("Landlord's Contribution") of up to Four Hundred Fifty
Thousand ($450,000) Dollars towards the cost of Tenant's Work and the cost of
preparing Tenant's Plans for Tenant's Work ("Permitted Cost") as follows:

          (i)  Provided that Tenant is not in default, beyond the expiration of
          any applicable grace periods, of its obligations under the Lease at
          the lime that Tenant submits its requisition therefor, after Tenant
          has provided to Landlord evidence, reasonably satisfactory to
          Landlord, that Tenant has incurred at least Five Hundred Thousand
          ($500,000.00) Dollars towards the Permitted Costs, Landlord shall fund
          the first Two Hundred Twenty-Five Thousand ($225,000.00) Dollars of'
          Landlord's Contribution by paying for fifty (50%) percent of the next
          Four
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          Hundred Fifty ($450,000.00) Dollars of Permitted Costs. Landlord shall
          pay such payments to Tenant within fifteen (15) days after Landlord
          receives requisitions, as hereinafter defined, for such payments. Such
          requisitions may not be submitted more than one time per calendar
          month.

                 Provided that Tenant is not in default, beyond the expiration
          of any applicable grace periods, of its obligations under the Lease at
          the time that Tenant submits its requisition therefore, Landlord shall
          pay the balance of Landlord's Contribution within fifteen (15) days
          after the last of the following to occur: (a) the completion of
          Tenant's Work, (b) the occurrence of the Rent Commencement Date in
          respect of the Second Floor Premises, (c) the payment by Tenant to
          Landlord of its first monthly installments of Yearly Rent in respect
          of both the First Floor Premises and to Second Floor Premises, and (d)
          the submission by Tenant to Landlord of a requisition, as hereinafter
          defined, evidencing the costs incurred by Tenant on account of
          Tenant's Work.

          (ii)   For the purposes hereof, the "requisition" shall mean written
          documentation (including, without limitation, invoices from Tenant's
          contractor and architect, written lien waivers with respect to all of
          Tenant's Work which has been performed through the date of such
          requisition, with respect to the second installment of Landlord's
          Contribution, final releases from Tenant's contractor, architect, and
          subcontractors and such other documentation as Landlord's mortgagee
          may reasonably request) showing in reasonable detail the costs of the
          improvements installed as part of Tenant's Work, accompanied by
          certifications from Tenant, Tenant's architect, and Tenant's
          contractor that Tenant's Work has been performed in accordance with
          applicable laws and in accordance with Tenant's approved plans, and
          that the amount of the requisition does not exceed the amount of the
          work covered by such requisition.  The requisition shall be
          accompanied by evidence reasonably satisfactory to Landlord that
          Tenant has paid for all of Tenant's Work performed through the date of
          the requisition in question.  Landlord shall have the right, upon
          reasonable advance notice to Tenant, to inspect Tenant's books and
          records relating to the requisition in order to verify the amount
          thereof.

          (iii) Notwithstanding anything to the contrary herein contained:

                (1) If there remain any outstanding claims from any contractor,
          architect, subcontractor, or vendor performing Tenant's Work which
          have not been satisfied as of the time that Tenant submits the
          requisition to Landlord, Landlord shall have the right to have
          Landlord's Contribution paid to both Tenant and such Tenant's claimant
          jointly.

                (2) Landlord shall have no obligation to pay Landlord's
          Contribution in respect of any requisition submitted after September
          1, 2000.

                (3) Tenant shall have no right to use any unused portion of
          Landlord's Contribution.

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     4.3  Plans and Specifications.

          (a)  Tenant's Plans.  The parties acknowledge that Tenant's architect
ha prepared the plans ("Tenant Plans") describing the portion of Landlord's Work
to performed within the First Floor Premises and describing the Tenant Work to
be performed within the Second Floor Premises.

          (b)  Landlord's Approval of Tenant's Plans.  Landlord acknowledges
that it has approved Tenant's Plans, as set forth on Exhibit 3. Landlord's
approval is solely given for the benefit of Landlord and neither Tenant nor any
third party shall have the right to rely upon Landlord's approval of Tenant's a
plans for any purpose whatsoever. Without limiting the foregoing: (i) Tenant
shall be responsible for all elements of the design of Tenant's plans
(including, without limitation, compliance with law, functionality of design,
the structural integrity of the design, the configuration of the premises and
the placement of Tenant's furniture, appliances and equipment), and (ii)
Landlord's approval of Tenant's plans shall in no event relieve Tenant of the
responsibility for such design.

          (c)  Cost of Tenant's Plans.  Tenant agrees to remain solely
responsible for the timely preparation and submission of all of Tenant's plans
and for all elements of the design of such plans and for all costs related
thereto, except that Tenant shall be permitted to apply Landlord's Contribution
towards the cost of Tenant's Plans.

     4.4  Tenant's Work.  Tenant's Work shall be performed in accordance with
the provisions of the Lease, including, without limitation, Articles 12 and 13
thereof. Tenant shall take necessary reasonable measures to the end that
Tenant's contractors shall cooperate in all ways with Landlord's contractors to
avoid any delay to the work being performed by Landlord's contractors or
conflict in any other way with the performance of Landlord's Work.

     4.5  Cost of Changes in Landlord's Work and of Tenant's Work.  Tenant shall
bear all costs arising from changes in Landlord's Work directed by Tenant and,
except for Landlord's Contribution, Tenant shall bear the entire cost of
Tenant's Work.  If Tenant desires to make any changes in Landlord's Work, any
such changes shall be subject to Landlord's prior written approval, which shall
not be unreasonably withheld.  Until the aggregate cost of all changes in
Landlord's Work exceeds Fifty Thousand ($50,000.00) Dollars, Tenant shall pay
the full amount of each such change within thirty (30) days of billing thereby,
provided that such billing is given to Tenant after the completion of such
change work.  With respect to each change after the aggregate cost of all
changes in Landlord's Work exceeds Fifty Thousand ($50,000.00) Dollars, then
Tenant shall, at the time that Tenant directs the change which causes such
aggregate cost of such changes to exceeds Fifty Thousand ($50,000.00) Dollars,
pay to Landlord the estimated cost of such change.

     4.6  Tenants Delay - Additional Costs.  Any additional cost actually and
reasonably incurred by Landlord in connection with the performance of Landlord's
Work arising from any Tenant Delays shall be paid by Tenant to Landlord to the
extent caused by such Tenant Delay, provided that if a delay is caused only in
part by Tenant, Tenant shall bear its pro rata share of the delay cost (i.e.,
based upon the relative length of the Tenant Delay as opposed to the other
reasons for Tenant's Delay).  For the purposes of the next preceding sentence,
the expression

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"additional cost to Landlord" shall mean the cost over and above such cost as
would have been the aggregate cost to Landlord of completing the premises in
accordance with the terms of this Lease had there been no such failure, omission
or delay. Any payments due from Tenant under this Article 4.6 shall, except to
the extent set forth in Article 4.5 with respect to changes in Landlord's Work,
be paid within thirty (30) days of Tenant's receipt of written invoice therefor.
Nothing contained in this Article 4.6 shall limit or qualify or prejudice any
other covenants, agreements, terms, provisions and conditions contained in this
Lease, including, but not limited to Article 4.2.

     4.7  Landlord's Warranty; Conclusiveness of Landlord's Performance.

          (a)  Subject to the provisions of this Article 4.7, Landlord warrants
to Tenant that Landlord's Work shall be performed free from defects in
workmanship and material; in compliance, in all material respects, with the
plans and specifications referred to in Exhibit 3, and, with respect to all
portions of Landlord's Work outside of the Premises, in compliance with
applicable law.  In addition, Landlord agrees that, as part of Landlord's Work,
Landlord will obtain from Landlord's contractor a five-(5)-year warranty with
respect to certain components of the HVAC system for the Building without
additional charge to Tenant and that, at Tenant's cost, Landlord cause
Landlord's contractor to provide a ten-(l0)-year warranty with respect to such
components rather than a five-(5)-year warranty.

          (b)  With respect to patent defects in Landlord's Work in either
Portion of the Premises, Tenant shall be conclusively deemed to have agreed that
Landlord has performed all of its obligations under this Article 4 unless, not
later than the end of the second calendar month next beginning after the Term
Commencement Date in respect of such Portion of the Premises, Tenant shall give
Landlord written notice specifying the respects in which Landlord has mat
performed any such obligation.

          (c)  With respect to latent defects in Landlord' Work in either
Portion of the Premises, Tenant shall be conclusively deemed to have agreed that
Landlord has performed all of its obligations under this Article 4 unless not
later than the date eleven months and two weeks after the Term Commencement Date
in respect of such Portion of the Premises, Tenant shall give Landlord written
notice specifying the respects in which Landlord has not performed any such
obligation.

          (d)  Landlord shall complete or correct any Landlord's Work which is
in breach of the warranty set forth in Paragraph (a) of this Article 4.7 in such
a manner as to minimize any disruption of Tenant's use of the Premises, provided
that Landlord receives written notice of such breach within the time periods set
forth in Paragraphs (b) or (c), as the case may be, of this Article 4.7.

          (e)  Landlord shall assign to Tenant any warranties that Landlord
receives from the contractors performing Landlord's Work to the extent that such
warranties relate to portions of the Premises which Tenant is required to
maintain under this Lease.

          (f)  The provisions of this Article 42 shall not relieve Landlord from
its maintenance and repair obligation under Article 8.2.

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<PAGE>

     4.8 Tenant Payments of Construction Cost. Landlord shall have the same
rights and remedies which Landlord has upon the nonpayment of Yearly Rent and
other charges due under this Lease for nonpayment of any amounts which Tenant is
required to pay to Landlord or Landlord's contractor in connection with the
construction and initial preparation of the premises (including, without
limitation, any amounts which Tenant is required to pay in accordance with
Articles 4.2, 43, and 4.6 hereof) or in connection with any construction in the
premises performed for Tenant by Landlord, Landlord's contractor or any other
person, firm or entity after the Term Commencement Date.

5.   USE OF PREMISES

     5.1  Permitted Use.  Tenant shall during the term hereof occupy and use the
Premises only for the purposes as stated in Exhibit 1 and for no other purposes.

     5.2  Prohibited Uses.  Notwithstanding any other provision of this Lease,
Tenant shall not use, or suffer or permit the use or occupancy of, or suffer or
permit anything to be done in or anything to be brought into or kept in or about
the Premises, the Building, or any part thereof (including, without limitation,
any materials used by Tenant to perform the Tenant's Work):  (i) which would
violate any of the covenants, agreements, terms, provisions and conditions of
this Lease, or (ii) for any unlawful purposes or in any unlawful manner.

     5.3  Licenses and Permits.  If any governmental license or permit shall be
required for the proper and lawful conduct of Tenant's business, and if the
failure to secure such license or permit would in any way adversely affect
Landlord, the Premises, the Building, or Tenant's ability to perform any of its
obligations under this Lease, Tenant, at Tenant's expense, shall duty procure
and thereafter maintain such license and submit the same to inspection by
Landlord.  Tenant, at Tenant's expense, shall at all times comply with the terms
and conditions of each such license or permit.  Notwithstanding the foregoing,
Landlord shall, as part of Landlord's Work, obtain a certificate of occupancy
permitting Tenant to legally occupy the First Floor Premises.

6.   RENT

          (a)  In General.  During the term of this Lease the Yearly Rent at the
rate stated in Exhibit 1, Taxes, Insurance Premiums, and Operating Costs
(collectively, "Rent"), shall be payable by Tenant to Landlord by monthly
payments, as stated in Exhibit 1, in advance and without demand on the first day
of each month for and in respect of such month.  Subject to Article 6(c),
Tenant's obligation to pay Rent in respect of each Portion of the Premises shall
commence to accrue as of the Term Commencement Date in respect of such Portion
of the Premises.  If, by reason of any provisions of this Lease, the Rent shall
commence or terminate on any day other than the first day of a calendar month,
the Rent for such calendar month shall be prorated.  The Rent shall be payable
to Landlord or, if Landlord shall so direct in writing, to Landlord's agent or
nominee, in lawful money of the United States which shall be legal tender for
payment of all debts and dues, public and private, at the time of payment, at
the office of the Landlord or such place as Landlord may designate, and the Rent
and other charges in all circumstances shall be payable without any setoff or
deduction whatsoever, except as otherwise expressly provided herein and only to
that extent.

                                       8
<PAGE>

          (b)  Late Payment by Tenant.  Rent and any other sums due hereunder
not paid on the due date shall bear interest for each month or fraction thereof
from the due date until paid computed at the annual rate of two (2) percentage
points over the so-called prime rate then currently from time to time published
in the Wall Street Journal (or if the Wall Street Journal ceases to publish a
       -------------------            -------------------
prime rate, then the prime rate charged to its most favored corporate customers
by the largest national bank (N.A.) located in the City of Boston). or at any
applicable lesser maximum legally permissible rate for debts of this nature
("Lease Rate"). In addition, in order to compensate Landlord for the
administrative expense which Landlord will incur in the event of a monetary
default by Tenant, if Tenant fails to pay any payment of rent or other sums due
under this Lease within ten (10) days of its due date, Tenant shall pay to
Landlord a late charge equal to three (3%) percent of the amount of such past
due amount.

          (c)  Commencement of Rent.

          Notwithstanding anything to the contrary herein contained, Tenant's
obligation to pay Yearly Rent in respect of each Portion of the Premises shall
not commence to accrue until the Rent Commencement Date.

          (d)  Rentable Area.  The parties hereby agree that the Total Rentable
Area of each Portion of the Premises and of the Building is as set forth on
Exhibit I.

7.   HAZARDOUS MATERIALS

     Landlord and Tenant agree as follows with respect to the existence or use
of "Hazardous Material" in or on the Premises.

          (a)  Tenant, at its sole cost and expense, shall comply with all laws,
statutes, ordinances, rules and regulations of any local, state or federal
governmental authority having jurisdiction concerning environmental, health and
safety matters (collectively, Environmental Laws"), including, but not limited
to, any discharge into the air, surface, water, sewers, soil or groundwater of
any Hazardous Material (as defined in Article 7(c)), whether within or outside
the Premises.  Notwithstanding the foregoing, nothing contained in this Lease
requires, or shall be construed to require, Tenant to incur any liability
related to or arising from environmental conditions for which the Landlord is
responsible pursuant to the terms of this Lease.

          (b)  Tenant shall not cause or permit any Hazardous Material to be
brought upon, kept or used in or about the Premises or otherwise in the Park by
Tenant, its agents, employees, contractors or invitees, except for such
materials as are customarily used in pharmaceutical development, provided that
all such materials shall at all times be brought upon, kept or used in
accordance with all applicable Environmental Laws.  Notwithstanding the
foregoing, with respect to any of Tenant's Hazardous Material which Tenant does
not properly handle, store or dispose of in compliance with all applicable
Environmental Laws, tenant shall, upon written notice from Landlord, no longer
have the right to bring such material into the buildings until Tenant has
demonstrated, to Landlord's reasonable satisfaction, that Tenant has implemented
programs to thereafter properly handle store or dispose of such material.

          (c)  As used herein, the term "Hazardous Material" means any hazardous
or toxic substance, material or waste or petroleum derivative (including,
without limitation,

                                       9
<PAGE>

radioactive materials and materials which constitute a biohazard) which is or
becomes regulated by any Environmental Law. The term "Hazardous Material"
includes, without limitation, any material or substance which is (i) designated
as a "hazardous substance" pursuant to Section 1311 of the Federal Water
Pollution Control Act (33 U.S.C. Section 1317), (ii) defined as a hazardous
waste" pursuant to Section 1004 of the Federal Resource Conservation and
Recovery Act, 42 U.S.C. Section 6901 et seq. (42 U.S.C. Section 6903), or (iii)
defined as a "hazardous substance" pursuant to Section 101 of the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601
et seq. (42 U.S.C. Section 9601) or (iv) defined as "hazardous substance" or
"oil" under Chapter 21E of the General Laws of Massachusetts, and "Environmental
Laws" include, without limitation, the laws listed in the preceding clauses (i)
through (iv). "Hazardous Materials" shall exclude toner used in copy machines
and other office cleaning supplies, provided that Tenant handles and stores such
materials in a safe and proper nicer in compliance with law.

          (d)  Any increase in the premium for necessary insurance on the
Premises which arises from Tenant's use and/or storage of these Hazardous
Materials shall be solely at Tenant's expense. Tenant shall procure and maintain
at its sole expense such additional insurance as may be necessary to comply with
any requirement of any Federal, State or local government agency with
jurisdiction.

          (e)  Tenant hereby covenants and agrees to indemnify, defend and hold
Landlord harmless from any and all claims, judgments, damages, penalties, fines,
costs, liabilities or losses (collectively "Losses") which Landlord may
reasonably incur arising out of contamination of reel estate, the Land, or other
property not a part of the Premises, which contamination arises as a result of:
(i) the presence of Hazardous Material in the Premises, the presence of which is
caused or permitted by Tenant, or (ii) from, a breach by Tenant of its
obligations under this Article 7.  This indemnification of Landlord by Tenant
includes, without limitation, reasonable costs incurred in connection with any
investigation of site conditions or any cleanup, remedial, removal or
restoration work required by any federal, state or local governmental agency or
political subdivision because of Hazardous Material present in the soil or
ground water on or under the Premises based upon the circumstances identified in
the first sentence of this Article 7(e).  The indemnification and hold harmless
obligations of Tenant under this Article 7(e) shall survive any termination of
this lease.  Without limiting the foregoing, if the presence of any Hazardous
Material in the buildings or otherwise on the Land caused or permitted by Tenant
results in any contamination of the Premises, Tenant shall promptly take all
actions at its sole expense as are necessary to return the Premises to the
condition in which the Premises were in immediately preceding such
contamination; provided that Landlord's approval of such actions shall first be
obtained, which approval shall not be unreasonably withheld so long as such
actions, in Landlord's reasonable discretion, would not potentially have any
materially adverse long-term or short-tern effect on the Premises, and, in any
even, Landlord shall not withhold its approval of any proposed actions which are
required by applicable Environmental Laws.

          (f)  Landlord represents to Tenant that, to Landlord's knowledge,
there are no Hazardous Materials (including asbestos) or underground storage
tanks presently located on the Land, except to the extent (if any) described on
the environmental assessment report which Landlord will provide to Tenant when
complete.

                                       10
<PAGE>

          (g)  Landlord agrees that neither Landlord, nor its agents employees
or contractors, shall cause or permit any Hazardous Materials (other than
materials which are typically used in the operation of offices) to be brought
upon, kept, or used in or about the Premises.

          (h)  Landlord hereby covenants and agrees to indemnify defend and hold
Tenant harmless from any Losses which arise from: (1) any breach by Landlord of
the representations set forth in Article 7(f) above; and (2) any breach by
Landlord of its agreements under Article 7(g) above. The indemnification and
hold harmless provisions of this Article 7(h) shall survive any termination of
this Lease.

8.   SERVICES FURNISHED BY LANDLORD

     Except as set forth in this Article 8, Landlord has no obligation to
provide services to the Premises.

     8.1  Utilities.

          (a)  Tenant shall contract directly with the company all utility
services to the Premises (including, without limitation, electricity, water,
sewer, gas and telecommunications services) for the purchase and obtaining by
Tenant of such services directly from such company to be billed directly to, and
paid for by, Tenant.

          (b)  Landlord shall not in any way be liable or responsible to Tenant
for any loss, damage or expense which Tenant may sustain or incur if the
quantity, character, or supply of electrical energy or gas is changed or is no
longer available or suitable for Tenant's requirements.

     8.2  Cleaning Services.

     Landlord shall provide cleaning services to the First Floor Premises in
accordance with the specifications set forth on Exhibit 4.  Tenant shall be
responsible for providing cleaning services to the Second Floor Premises to a
standard which is similar to that set forth on Exhibit 4.  The cleaning
contractor engaged by Landlord shall be subject to Tenant's written approval
(which approval shall not be unreasonably withheld) as part of Tenant's approval
of each annual Operating Budget, as hereinafter defined, during the term of the
Lease.

     8.3  Repairs.

     Except as otherwise provided in Articles 18 and 20, and subject to Tenant's
obligations in Article 14, Landlord shall keep and maintain the roof and the
structural portions of the Building, and the Building systems in good repair and
condition.

     8.4  Interruption or Curtailment of Services.

          (a) When necessary by reason of accident or emergency, or for repairs,
replacements to the Premises and which, in the reasonable judgment of Landlord,
are desirable or necessary to be made or of difficulty or inability in securing
supplies or labor, or of strikes, or of

                                       11
<PAGE>

any other cause beyond the reasonable control of Landlord, whether such other
cause be similar or dissimilar to those hereinabove specifically mentioned until
said cause has been removed, Landlord reserves the right to interrupt, curtail,
stop or suspend (i) the furnishing of heating, air conditioning, and cleaning
services and (ii) the operation of the plumbing and electric systems. Landlord
shall use reasonable efforts to eliminate the cause of any such interruption,
curtailment, stoppage or suspension, but there shall be no diminution or
abatement of Yearly Rent or other compensation due from Tenant to Landlord
hereunder, nor shall this Lease be affected or any of the Tenant's obligations
hereunder reduced, and the Landlord shall have no responsibility or liability
for any such interruption, curtailment, stoppage, or suspension of services or
systems. Landlord shall, except in an emergency or accident, give Tenant at
least two (2) business days advance notice of any interruption in Building
services. With respect to planned interruptions of building services, Landlord
shall use reasonable efforts to perform such interruptions after Tenant's
business hours. The provisions of this Article 8.3 shall not affect Tenant's
rights under Article 21.4(b).

     (b) Notwithstanding anything to the contrary in this Lease contained, if
the Premises shall lack any service which Landlord is required to provide
hereunder (thereby rendering the Premises or a portion thereof untenantable) so
that, for the Landlord Service Interruption Cure Period, as hereinafter defined,
the continued operation in the ordinary course of Tenant's business is
materially adversely affected and if Tenant ceases to use the affected portion
of the Premises during the period of untenantability as the direct result of
such lack of service. then, provided that Tenant ceases to use the affected
portion of the Premises during the entirety of the Landlord Service Interruption
Cure Period and that such untenantability and Landlord's inability to owe such
condition are not caused by the fault or neglect of Tenant or Tenants agents,
employees or contractors or by reason of other causes beyond Landlord's
reasonable control, then Rent shall thereafter be abated in proportion to such
untenantability until the earlier of: (i) the day that such condition is
completely corrected, or (ii) the day that Tenant first commences to exercise
its self-help rights pursuant to Article 21.4(b) of the Lease on account of such
condition. For the purposes hereof, the "Landlord Service Interruption Cure
Period" shall be defined as five (5) consecutive business days after Landlord's
receipt of written notice from Tenant of the condition causing untenantability
in the premises. The provisions of this Paragraph (b) shall not apply in the
event of untenantability caused by fire or other casualty, ox taking (see
Articles 18 and 20).

9.   OPERATING COSTS AND TAXES

     9.1  Definitions.  As used in this Article 9, the worth and terms which
follow mean and include the following:

          (a)  "Operating Year" shall mean a calendar year in which occurs any
part of the term of this Lease.

          (b)  "Taxes" shall mean the real estate taxes and other taxes, levies
and assessments imposed upon the Premises and upon any personal property of
Landlord used in the operation thereof, or Landlord's interest in the Premises
or such personal property; charges, fees and assessments for transit, housing,
police, fire or other governmental services or purported benefits to the Land;
service or user payments in lieu of taxes; and any and all other taxes, levies,
betterments, assessments and charges arising from the ownership, leasing,
operating, use or

                                       12
<PAGE>

occupancy of the Premises or based upon rentals derived therefrom, which are or
shall be imposed by National, State, Municipal or other governmental
authorities. "Taxes" shall not include any franchise, income or profit tax,
capital levy Or excise, provided, however, that any of the same and any other
tax, excise, fee, levy, charge or assessment, however described, that may in the
future be levied or assessed as a substitute for or an addition to, in whole or
in part, any tax, levy or assessment which would otherwise constitute "Taxes"
whether or not now customary or in the contemplation of the patties on the
Execution Date of this Lease, shall constitute "Taxes," but only to the extent
calculated as if the Premises were the only real estate owned by Landlord.

          (c)  "Tax Period" shall be any fiscal/tax period in respect of which
Taxes are due and payable to the appropriate governmental taxing authority, any
portion of which period occurs during the term of this Lease, the first such
Period being the one in which the Term Commencement Date occurs.

          (d)  "Operating Costs":

               (1)  Definition of Operating Costs.  "Operating Costs" shall mean
                    -----------------------------
          all costs actually incurred and expenditures of whatever nature made
          by Landlord in the operation, management, repair, replacements, and
          maintenance of the Premises, including, without limitation, vehicular
          and pedestrian passageways related to the Premises, related equipment,
          facilities and appurtenances, cooling and heating equipment Operating
          Costs shall include, without limitation, those categories of
          "Specifically Included Operating Costs", as set forth below.
          Operating Costs shall not include any cost necessary to bring any
          portion of the Land or the structure of the Building into compliance
          with applicable Laws if the same to the extent that such Laws are in
          effect as of the Term Commencement Date in respect of the First Floor
          Premises.

               (2)  Operating Budget.  Landlord shall prepare and submit to
                    ----------------
          Tenant, for Tenant's approval, on or before November 1 of each
          Operating Year, a budget ("Operating Budget") for Operating Cots.  The
          Operating Budget may contain a contingency of up to five (5%) of the
          overall Operating Budget and the Operating Budget shall contain an
          annual management fee payable to Landlord's managing agent equal to
          four (4%) percent of the Operating Budget; provided however, that the
          management fee payable in any Operating Year after the first full
          Operating Year during the term of the Lease shall not exceed 103% of
          the management fee payable in the immediately preceding Operating
          Year.  Tenant shall, within fifteen (15) days after its receipt of
          such budget, give written notice to Landlord advising Landlord with
          specificity as to whether it approves or disapproves of the Operating
          Budget Tenant shall not unreasonably withhold its approval of the
          Operating Budget, Tenant agreeing that the standard for its approval
          shall be based upon whether the expenditure is necessary to:  (i)
          maintain the Premises in good condition, and (ii) enable Landlord to
          comply with its obligations under this Lease.  Landlord agrees that,
          except in an emergency and except for uncontrollable expenses (e.g.,
          insurance premiums, utilities, and snow and ice removal), Landlord
          shall not exceed the approved Operating Budget without

                                       13
<PAGE>

          obtaining Tenant's prior written consent. Such approval shall not be
          unreasonably withheld. Any dispute as to the Operating Budget shall be
          submitted to arbitration pursuant to Article 29.5 of the Lease. If
          such dispute is not resolved prior to the commencement of an Operating
          Year, then Landlord shall continue to manage the Building based upon
          an Operating Budget equal to one hundred five (105%) percent of the
          previously approved Operating Budget, until such dispute has been
          resolved. The Initial Approved Operating Budget is attached as Exhibit
          5.

               (3)  Specifically Included Categories of Operating Costs. Subject
                    ---------------------------------------------------
          to the approved Operating Budget, Operating Costs shall include, but
          not be limited to, the following:

          Taxes (other than real estate taxes):  Sales, Federal Social Security,
          ------------------------------------
          Unemployment and Old Age Taxes and contributions and State
          Unemployment taxes and contributions accruing to and paid by the
          Landlord on account of all employees of Landlord and/or Landlord's
          managing agent, who are employed in, about or on account of the
          Premises, except that taxes levied upon the net income of the Landlord
          and taxes withheld from employees, and "Taxes as defined in Article
          9.1(b) shall not be included herein.

          Heat and Air Conditioning:  All charges connected with heat and air
          -------------------------
          conditioning supplied to the Premises.

          Wages:  Wages and cost of all employee benefits of all employees of
          -----
          the Landlord and/ox Landlord's managing agent who are employed in,
          about or on account of the Premises, provided that wages and costs for
          employees who also work on other properties shall be allocated to the
          Premises based upon the proportion of their time spent working on the
          Premises.  Operating Costs shall exclude the wages and costs for any
          executive personnel above the level of property manager.

          Cleaning:  The cost of labor and material for providing cleaning
          --------
          services to the Premises.

          Snow and Ice Removal:  The cost of labor and material in removing snow
          --------------------
          and ice from the paved areas on the Premises.

          Insurance.:  Premiums for fire, casualty, liability, rent loss, and
          ----------
          such other insurance as may from time to time be reasonably required
          by lending institutions on similar buildings in the greater Boston
          area and actually paid by Landlord.  In addition, any losses which are
          within the deductible carried under Landlord's insurance policies
          shall be included in Operating Costs.  The deductibles to be carried,
          under Landlord's insurance policies shall be subject to Tenant's
          approval (which approval shall not be unreasonably withheld) as part
          of Tenant's approval of each annual Operating Budget.  The initial
          deductibles shall be as follows:

               Fire and extended coverage: $10,000.00
               Earthquake: $25,000.00

                                       14
<PAGE>

               Glass: $1,000.00

               (4)  Capital Expenditures.
                    --------------------

                    (i)  Replacements.  If, during the tam of this Lease,
                         ------------
                    Landlord shall replace any capital items or make any capital
                    expenditures (collectively called "Capital Expenditures")
                    the total amount of which is not properly includable in
                    Operating Costs for the Operating Year in which they were
                    made, in accordance with generally accepted accounting
                    principles and practices in effect at the 'time of such
                    replacement, there shall nevertheless be included in such
                    Operating Costs and in Operating Costs for each succeeding
                    Operating Year the amount, if any, by which the Annual
                    Charge-Off (determined as hereinafter provided) of such
                    Capital Expenditure (teas insurance or warranty proceeds.
                    if any, collected by Landlord by reason of damage to, or
                    destruction of the capital item being replace) exceeds the
                    Annual Charge-Off of the Capital Expenditure for the item
                    being replaced.  Any such replacement shall be of quality
                    and utility at least equal to the item being replaced;
                    Landlord shall have no right to upgrade Building by
                    replacing a capital item with an item of substantially
                    better quality without Tenant's written consent; and no
                    capital item shall be replaced unless either:  (a) such
                    replacement is reasonably necessary, (b) such replacement is
                    required by law, or (c) Tenant consents in writing to such
                    replacement.  In no event shall the replacement of the roof
                    or structural components of the Building be included in
                    Operating Costs unless such replacement is required as the
                    result of the act or omission of Tenant or anyone for whom
                    Tenant is responsible and the cost of such replacement is
                    not covered by the insurance which Landlord is required to
                    maintain on the Building.

                    (ii) New Capital Items.  If a new capital item is acquired
                         -----------------
                    which does not replace another capital item which was worn
                    out, has become obsolete, etc., then there shall be included
                    in Operating Costs for each Operating Year in which and
                    after such capital expenditure is made the Annual Charge-Off
                    of such capital expenditure.  Notwithstanding the foregoing,
                    with respect to a new (i.e., as opposed to replacement)
                    Capital Expenditure, such Capital Expenditure shall be
                    included in Operating Costs only if:

                         1.   the new capital item being acquired is required by
                         law which first becomes effective after the Execution
                         Date of this Lease, Landlord hereby agreeing that any
                         installation required by law shall be installed over
                         the longest period of time allowed by law, unless
                         Tenant agrees to a more accelerated schedule, or

                                       15
<PAGE>

                           2.   the new capital item is reasonably projected to
                         reduce Operating Costs (i.e. the reduction in Operating
                         Expenses is reasonably projected to exceed the Annual
                         Charge-off), or

                           3.   the new capital item is approved by Tenant.

                    (iii)  Annual Charge-Off.  "Annual Charge-Off" shall be
                           -----------------
                    defined as the annual amount of principal and interest
                    payments which would be required to repay a loan ("Capital
                    Loan") in equal monthly installments over the Useful Life,
                    as hereinafter defined, of the capital item in question on a
                    direct reduction basis at an annual interest rate equal to
                    the Capital Interest Rate, as hereinafter defined, where the
                    initial principal balance is the cost of the capital item in
                    question.

                    (iv)   Useful Life.  "Useful Life" shall be reasonably
                           -----------
                    determined by Landlord in accordance with generally accepted
                    accounting principles and practices in effect at the time of
                    acquisition of the capital item.  Notwithstanding the
                    foregoing, if Landlord reasonably concludes on the basis of
                    engineering estimates that a particular capital expenditure
                    will effect savings in Building operating expenses
                    including, without limitation, energy-related costs, and
                    that such annual projected savings will exceed the Annual
                    Charge-Off of Capital Expenditures computed as aforesaid,
                    then and in such events, the Annual Charge-Off shall be
                    determined based upon a Useful Life which would cause the
                    principal and interest payments in a lull repayment of the
                    Capital Loan in question to equal the amount of projected
                    savings of such Useful Life.

                    (v)    Capital Interest Rate.  "Capital Interest Rate"
                           ---------------------
                    shall be defined as an annual rate of either one percentage
                    point over the AA Bond rate (Standard & Poor's corporate
                    composite or, if unavailable, its equivalent) as reported in
                    the financial press at the time the capital expenditure is
                    made or, if the capital item is acquired through arms-length
                    third-party financing, then the actual (including
                    fluctuating) rate paid by Landlord in financing the
                    acquisition of such capital item.

     9.2  Taxes.

          (a)  In General.  Tenant shall pay to Landlord the entire amount of
Taxes payable during the term of this Lease.  Notwithstanding the foregoing.
Tenant's obligation to pay Taxes with respect to each Portion of the Premises
shall commence as of the Rent Commencement Date in respect of such Portion of
the Premises.  If Rent Commencement Dates for each Portion of the Premises are
not the same, then Taxes shall be shared equally between

                                       16
<PAGE>

Landlord and Tenant during the period when the Rent Commencement Date has
occurred with respect to only one Portion of the Premises.

          (b) Payment Procedures.  Taxes shall be due within thirty (30) days of
Tenant's receipt of Landlord's bill therefor.  Landlord shall submit to Tenant
together with such bill, a copy of the tax bill on which tenant's obligation is
based.  In implementation and not in limitation of the foregoing, Tenant shall
remit to Landlord pro rata monthly installments on account of projected Taxes
reasonably calculated by Landlord on the basis of the most recent Tax data or
budget available.  If the total of such monthly remittances on account of any
Tax Period is greater than the actual Taxes for such Tax Period.  Tenant may
credit the difference against the next installment of rental or Other charges
due to Landlord hereunder, except that if such difference is determined after
the end of the term of this Lease, Landlord shall refund such difference to
Tenant to the extent that such difference exceeds any amounts then due from
Tenant to Landlord.  Such refund shall be paid to Tenant within thirty (30) days
after Landlord has determined the actual amount of Taxes for the Tax Period in
question.  If the total of such remittances is less than the actual Taxes for
such Tax Period, Tenant shall pay the difference to Landlord within thirty (30)
clays of Tenant's receipt of the bill.

          (c) Tax Abatement,, Landlord shall, upon Tenant's written request and
at Tenant's expense, apply for abatement of Taxes in respect of any Tax Period
with respect to which Tenant is required to pay Taxes. If Landlord declines to
apply for any such abatement, Tenant shall have the right to apply for such
abatement either in Landlord's name or in Tenant's name.

          (d) Effect of Abatements.  Appropriate credit against Taxes shall be
given for any refund obtained by reason of a reduction lit any taxes by the
Assessors or the administrative, judicial or other governmental agency
responsible therefor relating to the term of this Lease. The original
computations, as well as reimbursement or payments of additional charges, if
any, or allowances, if any, under the provisions of this Article 9.2 shall be
based on the original assessed valuations with adjustments to be made at a later
date when the tax refund, if any. shall be paid to Landlord by the taxing
authorities. Expenditures for legal fees and for other similar or dissimilar
expenses incurred in obtaining the tax refund may be charged against the tax
refund before the adjustments are made for the Tax Period..

  9.3     Operating Costs.

          (a) In General.  Tenant shall pay to Landlord the entire amount of
Operating Costs payable during the term of this Lease. Notwithstanding the
foregoing, Tenant's obligation to pay Operating Costs with respect to each
Portion of the Premises shall commence as of the Rent Commencement Date in
respect of such Portion of the Premises. If Rent Commencement Dates for each
Portion of the Premises are not the same, then Operating Costs shall be shared
equally between Landlord and Tenant during the period when the Rent Commencement
Date has occurred with respect to only one Portion of the Premises.

          (b) Payment Procedures.  Operating Costs shall be due within thirty
(30) days of the Tenant's receipt of the Landlord's bill therefor. In
implementation and not in limitation of the foregoing, Tenant shall remit to
Landlord pro rata monthly installments on account of

                                       17
<PAGE>

projected Operating Costs, reasonably calculated by Landlord on the basis of the
most recent Operating Budget approved by Tenant in accordance with Article 9.1
(d)). Landlord shall, within one hundred twenty (120) days after the end of each
Operating Year, deliver to Tenant a reasonably detailed statement ('Year End
Statement") of the actual amount of Operating Costs for such Operating Year. If
the total of such monthly remittances on account of any Operating Year is
greater than the actual Operating Costs for such Operating Year, Tenant may
credit the difference against the next installment of rent or other charges due
to Landlord hereunder, except that if such difference is determined after the
end of the term of this Lease, Landlord shall refund such difference to Tenant
to the extent that such difference exceeds any amounts then due from Tenant to
Landlord. Such refund check shall accompany the Year End Statement for the last
Operating Year of the term of the Lease. If the total of such remittances is
less than actual Operating Costs for such Operating Year. Tenant shall pay the
difference to Landlord within thirty (30) days of Tenant's receipt of Landlord's
bill therefor.

          (c) Tenant's Audit Rights.  Subject to the provisions of this
paragraph, Tenant shall have the right. at Tenant's cost and expense, to examine
all documentation and calculations prepared in the determination of Operating
Costs:

          (i)    Landlord agrees to make such books and records available to
          Tenant or Tenant's agent at the office where Landlord maintains such
          books and records.

          (ii)   Tenant shall have the right to make such examination no more
          than once in respect of any period in which Landlord has given Tenant
          a Year End Statement.

          (iii)  Any request for examination in respect of any Operating Year
          may be made no mote than nine (9) months alter Landlord has given
          Tenant a Year End Statement for such Operating Year.

          (iv)   Such examination may be made first by Tenant and any employees
          of Tenant, and then, at Tenant's election, by an independent certified
          public accounting firm, provided that in no event shall the
          compensation payable by Tenant to such firm be on the basis of a
          contingent fee.

     9.4  Fart Years.  lithe Rent Commencement Date(s) or if the Termination
Date occurs in the middle of an Operating Year or Tax Period, Tenant shall be
liable for only that portion of the Operating Costs or Taxes, as the case may
be, in respect of such Operating Year or Tax Period represented by a fraction
the numerator of which is the number of days of the herein term (commencing as
of the applicable Rent Commencement Date) which falls within the Operating Year
or Tax Period and the denominator of which is three hundred sixty-five (365), or
the number of days in said Tax Period, as the case maybe.

     9.5  Survival of Obligations.  Any obligations under this Article 9 which
shall not have beet paid at the expiration or sooner termination of the term of
this Lease shall survive such expiration and shall be paid when and as the
amount of same shall be determined to be due.

                                       18
<PAGE>

10.  INTENTIONALLY OMITTED

11.  FIXTURES, EQUIPMENT AND IMPROVEMENTS-REMOVAL BY TENANT

          (a) All fixtures, equipment, improvements and appurtenances attached
to or built into the Premise prior to or during the term, whether by Landlord at
its expense or at the expense of Tenant (either or both) or by Tenant shall be
and remain part of the Premises and shall not be removed by tenant during or at
the end of the term unless Landlord otherwise elects to require Tenant to remove
such fixtures, equipment, improvements and appurtenances, subject to the
provisions of Articles 12 and/or 22 of the Lease. All electric, plumbing,
heating and sprinkling systems, fixtures and outlets, vaults, paneling, molding,
shelving, radiator enclosures, cork, rubber, linoleum and composition floors,
ventilating, silencing, air conditioning and cooling equipment, shall be deemed
to be included in such fixtures, equipment, improvements and appurtenances,
whether or not attached to or built into the Premises.

          (b) Subject to Paragraph (c) of this Article II. all removable
electric fixtures, carpets, drinking or tap water facilities, furniture, and any
other trade fixtures or business equipment or Tenant's inventory or stock in
trade, including, without limitation, the items listed on Exhibit 6, shall not
be deemed to be included in such fixtures, equipment, improvements and
appurtenances and may be, and upon the request of Landlord will, in accordance
with Article 12(d), be, removed by Tenant at the expiration or prior termination
of this term of the Lease, upon the condition that such removal shall not
materially damage the Premises or the Building and that the cost of repairing
any damage to the Premises or the Building arising from installation or such
removal shall be paid by Tenant. With respect to the repair of damage required
as the result of' the removal of Tenant's property and equipment, Tenant shall
be responsible for the cost of patching all holes caused by the installation or
removal of such property and capping all equipment and utility connections
either below floors, above ceilings or inside of walls, as the case may be.

          (c) Landlord shall, at the expiration or earlier termination of the
term of the Lease, have a right of first refusal to purchase any of Tenant's
Removable Property and other trade fixtures and business equipment which remain
in the Premises as of the expiration or earlier termination of the term of the
Lease. Tenant agrees that such right of first refusal shall be binding upon any
equipment lessor of such Property, fixtures and equipment.

12.  ALTERATIONS AND IMPROVEMENTS BY TENANT

          (a) Tenant shall make no alterations, decorations, installations,
removals, additions or improvements in or to the premises without Landlord's
prior written consent and then only those made by contractors or mechanics
approved by Landlord. No installations or work shall be undertaken or begun by
Tenant until: (i) Landlord has approved written plans and specification; (ii)
Tenant has made provision fur either written waivers of liens from all
contractors, laborers and suppliers of materials for such installations or work,
the filing of lien bonds on behalf of such contractors, laborers and suppliers,
or other appropriate protective measures approved by Landlord; and (iii) with
respect to the initial Tenant work and with respect to any future installations
or work, if the cost of such future installations or work exceeds one hundred
thousand ($100,000.00) dollars, Tenant has procured appropriate surety payment
and

                                       19
<PAGE>

performance bonds. No amendments or additions to such plans and specifications
shall be made without the prior written consent of Landlord.

          (b) Notwithstanding the foregoing, provided that Tenant gives Landlord
reasonable prior advance written notice and complies with the other provisions
of this Article 12 and of the Lease, Tenant shall have the right, without
obtaining Landlord's consent, to make interior, non-structural decorations,
replacements, alterations and improvements within the premises which do not
affect the Building systems or the ceiling of the premises.

          (c) Landlord's consent and approval required under this Article 12
shall hot be unreasonably conditioned, withheld or delayed. Landlord's approval
is solely given for the benefit of Landlord and neither Tenant nor any third
party shall have the right to rely upon Landlord's approval of Tenant's plans
for any purpose whatsoever. Without limiting the foregoing, Tenant shall be
responsible for all elements of the design of Tenant's plans (including, without
limitation, compliance with law, functionality of design, the structural
integrity of the design, the configuration of the premises and the placement of
Tenant's furniture, appliances and equipment), and Landlord's approval of
Tenant's plans shall in no event relieve Tenant of the responsibility hr such
design. Landlord shall have no liability or responsibility for any claim, injury
or damage alleged to have been caused by the particular materials, whether
building standard or non-building standard, appliances or equipment selected by
Tenant in connection with any work performed by or on behalf of Tenant in the
premises including, without limitation, furniture, carpeting, copiers, laser
printers, computers and refrigerators.

          (d) Any such work, alterations, decorations, installations, removals.,
additions and improvements shall be done at Tenant's sole expense. If Tenant
shall make any alterations, decorations, installations, removals, additions or
improvements (collectively "Alterations") in respect of either Portion of the
Premises, then Landlord may elect: (i) with respect to the First Floor Premises,
to require the Tenant at the expiration or sooner termination of the term of
this Lease to restore the premises to substantially the same condition as
existed at the Rent Commencement Date in respect of such Portion of the
Premises, and (ii) with respect to the Second Floor Premises, to require Tenant
at the expiration or sooner termination of the term of the Lease, to repair any
damage to the Premises or the Building caused by the installation or removal of
such Alterations in accordance with the provisions of Article 11(b). If so
requested by Tenant in writing at the time that Tenant requests Landlord's
approval or at the dine that Tenant gives Landlord written notice of such
Alteration, as the case may be, of an Alteration, Landlord shall, within ten
(10) business days of its receipt of such request, make its election as to
whether Tenant shall be required to remove such Alteration.

13.  TENANT'S CONTRACTORS-MECHANICS' AND OTHER LIENS- STANDARD OF TENANT'S
     PERFORMANCE-COMPLIANCE WITH LAWS

     Whenever Tenant shall make any alterations, decorations, installations,
removals, additions or improvements in or to the Premises-whether such work be
done prior to or after the Term Commencement Date--Tenant will strictly observe
the following covenants and agreements:

                                       20
<PAGE>

          (a)  In no event shall any material or equipment be incorporated in or
added to the Premises, so as to become a fixture or otherwise a part of the
Building, in connection with any such alteration, decoration, installation,
addition or improvement which is subject to any lien, charge, mortgage a other
encumbrance of any kind whatsoever or is subject to any security interest or any
form of title retention agreement. Notwithstanding the foregoing, Tenant shall
have the right to grant security interests and/or to lease its business
equipment and personal property in the Premises, including without limitation,
Tenant's Removable Property as set forth on Exhibit 6, provided that such lessor
or secured party agrees:

          (i)   That it will repair any damage to the premises caused by the
          installation or removal of any such equipment or personal property;

          (ii)  That it will give Landlord not less than five (5) days advance
          written notice prior to making any entry into the premises;

          (iii) That it will not hold any auction or foreclosure sale on the
          premises;

          (iv)  That, unless Landlord exercises its right of first refusal in
          accordance with Article 11(c) of the Lease, it will have the right to
          remove such equipment or property only during the term of this Lease,
          and within the thirty (30) day period after the termination of the
          term of the Lease, provided, however, that the continued presence of
          such equipment or property in the Premises after the termination of
          the term of the Lease shall be deemed to be a holdover by Tenant in
          the Premises and Tenant shall remain fully responsible, in accordance
          with Article 22 of the Lease, hr all amounts due to Landlord on
          account of such holdover; and

          (v)   That Landlord will have a right of first refusal to purchase
          such equipment or personal property upon the expiration or prior
          termination of the term of the Lease in accordance with Article 11(c)
          of this Lease.

          (b)   Any mechanic's lien filed against the Premises or the Building
for work claimed to have been done for, or materials claimed to have been
furnished to, Tenant shall be discharged by Tenant within ten (10) business days
thereafter, at Tenant's expense by filing the bond required by law or otherwise.
If Tenant fails so to discharge any lien, Landlord may do so at Tenant's expense
and Tenant shall reimburse Landlord for any expense or cost incurred by Landlord
in so doing within fifteen (15) days after rendition of a bill therefor.

          (c)   All installations or work done by Tenant shall be at its own
expense and shall at all times comply with (i) laws, rules, orders and
regulations of governmental authorities having jurisdiction thereof; (ii)
orders, rules and regulations of any Board of Fire Underwriters, or any other
body hereafter constituted exercising similar functions, and governing insurance
rating bureaus; (iii) Rules and Regulations, as defined in Article 17.1, if any,
of Landlord; and (iv) plans and specifications prepared by and at the expense of
Tenant theretofore submitted to and approved by Landlord (which approval shall
not be unreasonably withheld); provided however, that with respect to any
Alteration which does not require a building permit, Tenant

                                       21
<PAGE>

may provide to Landlord a sketch or written description in lieu of plans and
specifications to Landlord.

          (d) Tenant shall procure all necessary permits before undertaking any
work in the Premises; do all of such work in a good and workmanlike manner,
employing materials of good quality and complying with all governmental
requirements; and defend, save harmless, exonerate and indemnify Landlord from
all injury, loss or damage to any person or property occasioned by such work.
Tenant shall cause contractors employed by Tenant to carry Worker's Compensation
Insurance in accordance with statutory -requirements, Automobile Liability
Insurance and, naming Landlord and Landlord's managing agent as additional
insured parties, Commercial General Liability Insurance coveting such
contractors on or about the Premises in the a bunts stated in Article 15 hereof
or in such other reasonable amounts as Landlord shall require and to submit
certificates evidencing such coverage to Landlord prior to the commencement of'
such work.

14. REPAIRS BY TENANT-FLOOR LOAD

    14.1  Repairs by Tenant.  Tenant shall keep all and singular the Premises
neat and clean (other than the cleaning to be provided by Landlord pursuant to
Exhibit 4), in such repair, order and condition as the same are in on the Rent
Commencement Date or may be put in during the term hereof; reasonable use and
wearing thereof and damage by fire or by other casualty, from Landlord's
negligence or willful misconduct, or from Landlord's failure to perform its
obligations under the Lease, excepted.  Tenant shall make, as and when needed as
a result of neglect by Tenant or Tenant's servants, employees, agents,
contractors, invitees, or licensees or otherwise, all repairs in and about the
Premises necessary to preserve them in such repair, order and condition, which
repairs shall be in quality and class equal to the original work.  Landlord may
elect, at the expense of Tenant, to make any such repairs or to repair any
damage or injury to the Building or the Premises caused by the neglect of Tenant
or Tenants servants, employees, agents, contractors, or licensees if Tenant
fails to make such repairs within thirty (30) day after written notice from
Landlord (except that no notice shall be required in an emergency).

    14.2  Floor Load-Heavy Machinery.  Tenant shall not place a load upon any
floor of the Premises exceeding the floor load per square foot of area which
such floor was designed to carry as set forth above and which is allowed by law.
Landlord reserves the right to prescribe the weight and position of all business
machines and mechanical equipment, including safes, which shall be placed so as
to distribute the weight. Business machines and mechanical equipment shall be
placed and maintained by Tenant at Tenant's expense in settings sufficient in
Landlord's reasonable judgment to absorb and prevent vibration, noise and
annoyance. Tenant shall not move any safe, heavy machinery, heavy equipment,
freight, bulky matter, or fixtures into or out of the Building without
Landlord's prior written consent, which consent shall not be unreasonably
withheld. The placement of Tenant's equipment in the manner and in the locations
shown on Tenant's approved plans and specifications shall be deemed to satisfy
the requirements of the two immediately preceding sentences. If such safe
machinery, equipment, freight, bulky matter or fixtures requires special
handling, Tenant agrees to employ only qualified persons to do said work, and
that all work in connection therewith shall comply with applicable laws and
regulations. Any such moving shall be at the sole risk and hazard of Tenant and
Tenant will defend, indemnify and save Landlord harmless against and from arty
liability, loss, injury, claim

                                       22
<PAGE>

or suit resulting from such moving. Proper placement of all such business
machines, etc., in the Premises shall be Tenant's responsibility.

15.  INSURANCE, INDEMNIFICATION, EXONERATION AND EXCULPATION

     15.1  Insurance.  Tenant shall procure, and keep in force and pay for
throughout the term of the Lease, the following insurance coverages:

           (a) Commercial General Liability Insurance insuring Tenant on an
occurrence basis against all claims and demands for personal injury liability
(including, without limitation, bodily injury, sickness, disease, death and
sexual abuse) or damage to property which may be claimed to have occurred from
and after the time Tenant and/or its contractors enter the Premises in
accordance with Article 4 of this Lease; of not Less than Two Million
($2,000,000) Dollars in the event of personal injury to any number of persons or
damage to property, arising out of any one occurrence.

           (b) Worker's Compensation Insurance as required by the Commonwealth
of Massachusetts and in amounts may be required by applicable statute, and
Employers' Liability Coverage of One Million Dollars ($1,000,000.00) per
occurrence.

           (c) Umbrella Liability Coverage on a per location basis in the
amount of at least Ten Million Dollars ($10,000,000) covering Tenant's
operations in the Premises. Notwithstanding anything to the contrary herein
contained, Tenant shall not be required to obtain such umbrella liability
insurance until the earlier of: (i) the Rent Commencement Date in respect of the
First Floor Premises, or (ii) the Rent Commencement Date in respect of the
Second Floor Premises.

           (d) Fire, Extended Coverage and All-Risk Insurance in accordance
with Article 18.1.

           (e) Whenever good business practice, in Landlord's reasonable
judgment, indicates the need for additional insurance coverage or different
types of insurance in connection with the Premises or Tenant's use and occupancy
thereof, Tenant shall, upon request from Landlord, obtain such insurance at
Tenant's expense and provide Landlord with evidence thereof without limiting the
generality of the foregoing, Landlord shall not exercise its rights under this
Article 15.1(f) more than one time every three (3) years.

  15.2    Certificates of Insurance.  All of the insurance required pursuant to
Article 15.1 shall be effected with insurers with a Best rating of at least IX,
A-, authorized to do business in Massachusetts under valid and enforceable
policies.  All such insurance, other than Worker's Compensation and Employer's
Liability Insurance, shall name Tenant, Landlord and Landlord's managing agent
as additional insureds.  All insurance required pursuant to Article 15.1 shall
provide that it shall not be canceled or modified without at least thirty (30)
days' prior written notice to each insured named therein.  On or before the time
Tenant and/or its contractors enter the Premises in accordance with Articles 4
and 14 of this Lease and thereafter not less than five business (5) days prior
to the expiration date of each expiring policy, original copies of the policies
provided for in Article 15.1 issued by the respective insurers, or certificates
of such policies setting forth in full the provisions thereof and issued by such
insurers together with

                                       23
<PAGE>

evidence satisfactory to Landlord of the payment of all premiums for such
policies, shall be delivered by Tenant to Landlord and certificates as aforesaid
of such policies shall upon request of Landlord, be delivered by Tenant to the
holder of any mortgage affecting the Premises.

  15.3  Tenant indemnity of Landlord.  Subject to Article 19, Tenant will save
Landlord, its agents and employees harmless and will exonerate, defend and
indemnify Landlord, its agents and employees, from and against any and all
claims, liabilities or penalties asserted by or on behalf of any person, firm,
corporation or public authority arising from any default by Tenant of its
obligations under the Lease or:

        (a) On account of or based upon any injury to person, or loss of or
damage to property, sustained or occurring on the Premises on account of or
based upon the act, omission, fault, negligence or misconduct of any person
whomsoever (except to the extent caused by Landlord, its agents, contractors or
employees);

        (b) On account of or based upon any injury to person, or loss of or
damage to property, sustained or occurring elsewhere in the vicinity of the
Premises to the extent caused by the use of the Premises by Tenant, or anyone
claiming by, through or under Tenant, or by the negligence or willful misconduct
of Tenant or anyone claiming by, through, or under Tenant, or their respective
agents, employees or contractors; and

        (c) On account of or based upon (including monies due on account of) any
work or thing whatsoever done (other than by Landlord or its contractors, or
agents or employees of either) on the premises during this term of this Lease
and during the period of time, if any prior to the Term Commencement Date that
Tenant may have been given access to the premises.

        (d) Tenant's obligations under this Article 15.3 shall be insured either
under the Commercial General Liability Insurance required under Article 15.1,
above, or by a contractual insurance rider or other coverage and certificates of
insurance in respect thereof shall be provided by Tenant to Landlord upon
request.

  15.4  Property of Tenant. In addition to and not in limitation of the
foregoing, Tenant covenants and agrees that, to the maximum extent permitted by
law, all merchandise, furniture, fixtures and property of every kind, nature and
description related or arising out of Tenant's leasehold estate hereunder, which
may be in or upon the Premises or Building, in the public corridors, or on the
sidewalks, areaways and approaches adjacent thereto, shall be at the sole risk
and hazard of Tenant, and that if the whole or any part thereof shall be
damaged, destroyed, stolen or removed from any cause or reason whatsoever no
part of said damage or loss shall be charged to, or borne by, Landlord; unless,
subject to Article 19 hereof, such damage or loss is due to the negligence or
willful misconduct of Landlord or Landlord's agents, employees, or contractors.

  15.5  Bursting of Pipes, etc.  Landlord shall not be liable for any injury or
damage to persons or property resulting from fire, explosion, falling plaster,
steam, gas, electricity, electrical or electronic emanations or disturbance,
water, rain or snow or leaks from any part of the Building or from the pipes,
appliances, equipment or plumbing works or front the roof, street or sub-surface
or from any other place or caused by dampness, vandalism, malicious mischief or

                                       24
<PAGE>

by any other cause of whatever nature, unless caused by or due to the negligence
of Landlord, its agents, servants or employees, or the breach by Landlord of its
maintenance and repair obligations under this Lease, and then, where notice and
an opportunity to cure are appropriate (i.e., where Tenant knows of such
condition sufficiently in advance of the occurrence of any such injury or damage
resulting therefrom as would have enabled Landlord to prevent such damage or
loss had Tenant notified Landlord of such condition or if Landlord had
independent knowledge of such need) only after (i) notice to Landlord of the
condition claimed to constitute negligence or breach and (ii) the expiration of
a reasonable time after such notice has beep received by Landlord without
Landlord having taken all reasonable and practicable means to cure or correct
such condition; and pending such cure or correction by Landlord, Tenant shall
take all reasonably prudent temporary measures and safeguards to prevent any
injury, loss or damage to persons or property. Neither Landlord nor its agents
shall be liable for any such damage caused by operations in construction of any
public, or quasi-public work; nor shall Landlord be liable for any latent defect
in the Premises or in the Building, provided that the foregoing shall not
relieve Landlord from any obligation which it has to perform maintenance or
repairs in accordance with the Lease or relieve Landlord of any obligation which
it has to repair any latent defects in Landlord's Work to the extent that Tenant
has complied with the notice requirements of Article 4.7.

     15.6    Repairs and Alterations-No Diminution of Rental Value.

     There shall be no allowance to Tenant for diminution of rental value and no
liability on the part of Landlord by reason of inconvenience, annoyance or
injury to Tenant arising from any repairs or replacements made by Landlord or
Tenant in or to any portion of the Premises or any property adjoining the
Premises, or in or to fixtures, appurtenances, or equipment thereof, or for
failure of Landlord or others to make any repairs in or to any portion of the
Premises, or in or to the fixtures, appurtenances or equipment thereof.  This
Article 15.6 shall not affect or limit Tenant's rights under Article 21.4(b).

     15.7    Landlord Indemnity of Tenant. Landlord, subject to the limitations
on Landlord's liability contained elsewhere in this Lease, agrees to hold Tenant
harmless and to defend, exonerate and indemnify Tenant from and against any and
all claims, liabilities, or penalties asserted by or on behalf of any third
party (i.e. any person, firm, corporation or public authority) for damage to
property or injuries to persons on account of or based upon any injury to
persons, or loss of or damage to property, sustained or occurring in the
Building or on the Land to the extent arising from the negligence, or willful
misconduct of Landlord or Landlords agents, employees or contractor The
provisions of this Article 15.7 shall survive any termination of the Lease.

16.  ASSIGNMENT, MORTGAGING AND SUBLETTING

          (a) Except as provided in this Article 16, Tenant covenants and agrees
that neither this Lease nor the term and estate hereby granted, nor any interest
herein or therein, will, without obtaining Landlord's prior written consent, be
assigned, mortgaged, pledged, encumbered or otherwise transferred, voluntarily,
by operation of law or otherwise, and that neither the Premises, nor any part
thereof will, without obtaining Landlord's prior written consent, be encumbered
in any manner by reason of any act or omission on the part of Tenant, or

                                       25
<PAGE>

used or occupied, or permitted to be used or occupied, or utilized for desk
space or for mailing privileges, by anyone other than Tenant, or any employee,
agent or invitees of Tenant, or for any use or purpose other than as stated in
Exhibit 1, or be sublet, or offered or advertised for subletting. Landlord
agrees that, so long as Tenant is not in default of its obligations under the
Lease beyond any applicable grace periods. Landlord will not unreasonably
withhold or delay such consent. Except with respect to subleases or assignments
to Permitted Tenant Successors, Affiliates of Tenant, and Clients, the rent or
other consideration payable by the subtenant or assignment shall be based upon
the then current market rental of the portion of the Premises affected by the
sublease or assignment.

     (b) If Tenant is a corporation, the assignment or transfer of this Lease,
and the term and estate hereby granted, to any corporation or other entity
(Permitted Tenant Successor) into which Tenant is merged or with which Tenant is
consolidated, or to which all, or substantially all of Tenant's assets are
transferred is permitted, provided that: (x) such Permitted Tenant Successor
shall have a net worth which is at least equal to that of Tenant immediately
prior to such merger or consolidation and (y) such Permitted Tenant Successor
and Tenant shall promptly execute, acknowledge and deliver to Landlord an
agreement ("Assumption Agreement") in form and substance reasonably satisfactory
to Landlord whereby such Permitted Tenant Successor shall agree to be
independently bound by and upon all the covenants, agreements, terms, provisions
and conditions set forth in this Lease on the part of Tenant to be performed,
and whereby such Permitted Tenant Successor shall expressly agree that the
provisions of this Article 16 shall, notwithstanding such assignment or
transfer, continue to be binding upon it with respect to all future assignments
and transfers.

     (c) Tenant shall have the right to assign its interest in this Lease, and
sublet the Premises or any portion thereof, to an Affiliate of Tenant, as
hereinafter defined.  For the purposes hereof, an "Affiliate of Tenant" shall be
defined as any entity which controls, is controlled by, or is under common
control with Tenant, so long as such entity remains in such relationship with
Tenant.  Tenant's right to assign its interest in this Lease to an Affiliate of
Tenant shall be further conditioned upon such Affiliate, prior to such
assignment, executing and delivering to Landlord an Assumption Agreement, as
defined in Paragraph (b) of this Article 16.  Tenant shall have the right,
without Landlord's consent, to sublease to Pentose Development Corp.

     (d) Tenant shall have the right, without obtaining Landlord's consent, to
enter into Client Subleases, as hereinafter defined:  A "Client Sublease" shall
be defined as a sublease of no more than 5,000 square feet of rentable area of
internal premises (i.e. premises which have access to the Building only through
Tenant's main entrance and a secondary emergency exit) which is entered into
solely for the purpose of facilitating the performance of Tenant's business
relationship with the subtenant in question.  At such time as the subtenant
(referred to herein as "Client") under a Client Sublease is no longer in a
business relationship with Tenant (i.e. other than as a subtenant), then such
sublease shall no longer be considered to be a Client Sublease, such subtenant
shall no longer be considered as a Client, and the provisions of this Article 16
shall apply to any further occupancy by such subtenant in the Premises.

     (e) If either:  (x) this Lease be assigned, Landlord shall, or (y) if
Tenant is in default of any of its obligations under this Lease beyond the
expiration of any applicable grace

                                       26
<PAGE>

periods, and the Praises or any part thereof has been sublet or occupied by
anybody other than Tenant, Landlord may, collect rent and other charges from the
assignee, subtenant or occupant, and apply the net amount collected to the rent
and other charges herein reserved then due and thereafter becoming due, but no
such assignment, subletting, occupancy or collection shall be deemed a waiver of
the provisions of this Article 16, or the acceptance of the assignee, subtenant
or occupant as a tenant, or a release of Tenant from the further performance by
Tenant of covenants on the part of Tenant herein contained.

     (f) Any consent by Landlord to a particular assignment or subletting shall
not in any way diminish the prohibition stated in the first sentence of this
Article 16.  No subletting or assignment shall relieve Tenant of its primary
obligation a party-Tenant hereunder, nor shall it reduce or increase Landlord's
obligations under the Lease.

     (g) No assignment or subletting or use of the Premises shall affect the
purpose for which the Premises may be used as stated in Exhibit I.

     (h) In the event of an assignment of this Lease to anyone other than V.I.
Technologies, Inc., to an Affiliate of Tenant, or to a Permitted Tenant
Successor, Tenant shall pay to Landlord fifty (50%) percent of any Net
Assignment Profit (as defined below), payable in accordance with the following.
"Net Assignment Profit" shall be defined as a lump sum in the amount (if any) by
which any Transfer Consideration, as hereinafter defined, paid by the assignee
in consideration of or as an inducement to Tenant to make said assignment
exceeds the sum of: the reasonable attorneys' fees, construction costs and
brokerage fees incurred by Tenant in order to effect such assignment
(collectively, "Transfer Expenses"), plus (ii) if the assignment occurs during
the initial term of the Lease, the present value (discounted based upon an 8%
discount rate) of a series of payments to Tenant equal to $45,000 per annum
(pro-rated for any portion of a year) over the period commencing as of the
effective date of such assignment and ending as of the last day of the initial
term of the Lease.  Landlord's share of Net Assignment Profit shall be paid to
Landlord within ten (10) days of receipt of' the same by Tenant.  "Transfer
Consideration" shall mean all monies, property and other consideration of every
kind whatsoever paid or payable to Tenant for the assignment of the Lease and
for all property transferred as all or part of the consideration including,
without limitation, fixtures attached to the premises and other tenant
improvements, but excluding Tenant's Property, as hereinafter defined.  For
purposes of this Article 16(g), only, the term "Tenant's Property" shall be
deemed to include goodwill, any other intangible personal property associated
with Tenant's business, and Tenant's trade fixtures, furniture and equipment,
but no event shall Tenant's Property be deemed to include Tenant's interest
under this Lease.

     (i) In the event of a sublease to anyone other than an Affiliate of Tenant,
a Permitted Tenant Successor, or a Tenant Customer, Tenant shall pay to Landlord
fifty (50%) percent of any Net Sublease Profits (as defined below), payable in
accordance with the following.  "Net Sublease Profit" shall be defined as a
monthly amount equal to the amount by which the sublease rent and other charges
payable by the subtenant to Tenant under the sublease exceed the sum of:  (i)
the rent and other charges payable under this Lease for the Premises or the
sublet portion thereof, plus (ii) a monthly amount equal to the Transfer
Expenses, as defined above, divided by the number of months in the terra of the
sublease, plus (iii) the product of $3,7500.00, multiplied by a fraction, the
numerator of which is the Total Rentable Area so

                                       27
<PAGE>

subleased, and the denominator is the Total Rentable Area of the Building.
Landlord's share of Net Sublease Profit shall be paid to Landlord on a monthly
basis within ten (10) days of receipt of the subtenant's payment of rent to
Tenant under the sublease.

17.  MISCELLANEOUS COVENANTS

     Tenant covenants and agrees as follows:

     17.1  Rules and Regulations.  Tenant will faithfully observe and comply
with such reasonable Rules and Regulations as Landlord hereafter at any time or
from time to time may make and may communicate in writing to Tenant, which in
the reasonable judgment of Landlord shall be necessary for the reputation,
safety, care or appearance of the Premises and/or the preservation of good order
therein, or the operation or maintenance of the Premises and/or the equipment
thereof; provided, however, that in the case of any conflict between the
provisions of this Lease and any such Rules and Regulations, the provisions of
this Lease shall control. Notwithstanding anything to the contrary herein
contained, Landlord shall have no right to promulgate Rules and Regulations
during any time period when Tenant is the only tenant of the Building.

     17.2  Access to Premises-Shoring.  Tenant shall:  (i) permit Landlord and
any mortgagee of the Premises or of the interest of Landlord therein, and any
lessor under any ground or underlying lease, and their representatives to have
reasonable access to and to enter upon the Premises at all reasonable hours and
upon reasonable prior notice (except that no notice shall be required in an
emergency) for the purposes of inspection or of making repairs and replacements
in or to the Premises and or equipment to the extent that Landlord is permitted
or required to perform the same pursuant to the provisions of this Lease
(including, without limitation, sanitary, electrical, heating, air conditioning
or other systems) or of complying with all laws, orders and requirements of
governmental or other authority or of exercising any right reserved to Landlord
by this tease (including the right during the progress of any such repairs,
replacements or improvements or while performing work and furnishing materials
in connection with compliance with any such laws, orders or requirements to take
upon or through, or to keep and store within, the Premises all necessary
materials, tools and equipment); and (ii) permit Landlord, at reasonable times,
to show the Premises during ordinary business hours to any existing or
prospective mortgagee, ground lessor, purchaser, or assignee of any mortgage, of
the Building and/ and the land or of the interest of Landlord therein, and
during the period of twelve (12) months next preceding the Termination Date to
any person contemplating the leasing of the Premises or any part thereof.  In an
emergency, if Tenant shall not be personally present to open and permit an entry
into the Premises, Landlord or Landlord's agents may enter the same by a master
key, or may forcibly enter the same, without rendering Landlord or such agents
liable therefor, and without in any manner affecting the obligations and
covenants of this Lease, except that, subject to Article 19, Landlord shall
repair any damage to the premises or Tenant's property caused by Landlord's
forcible entry unless the need for such entry arose from the fault or neglect of
Tenant or Tenant's agents, employees or contractors or from Tenant's use of the
Premises.  Landlord shall exercise its rights of access to the Premises
permitted under any of the terms and provisions of this Lease in such manner as
to minimize to the extent practicable interference with Tenants use and
occupation of the Premises.  If an excavation shall be made upon land adjacent
to the Premises or shall be authorized to be made, Tenant shall afford to the
person causing or

                                       28
<PAGE>

authorized to cause such excavation, license to enter upon the Premises for the
purpose of doing such work as said person shall deem necessary to preserve the
Building from injury or damage and to support the same by proper foundations
without any claims for damages or indemnity against Landlord, or diminution or
abatement of rent. Landlord agrees that, in exercising any right which Landlord
has to enter the Building: (x) Landlord shall, except in emergencies and except
for normal cleaning and maintenance operations, give Tenant reasonable advance
notice of such entry, (y) Landlord shall use reasonable efforts to respect
Tenant's reasonable business confidentiality and security concerns, and (z)
except in emergencies and except for normal cleaning and maintenance operations,
Landlord shall give Tenant sufficient notice to allow Tenant to have a
representative accompany Landlord in making such entry, if Tenant so desires.

     17.3  Accidents to Sanitary and Other Systems.  Tenant shall give to
Landlord prompt notice of any fire or casualty in the Premises and of any damage
to, or defective condition in any part or appurtenance of the Premises
including, without limitation, sanitary, electrical, healing and air
conditioning or other systems located in, or passing through, the Premises for
which it has actual knowledge.  Except as otherwise provided in Articles 18, 19,
and 20, and subject to Tenant's obligations in Article 14, such damage or
defective condition shall be remedied by Landlord with reasonable diligence, but
if such damage or defective condition was caused by Tenant or by the employees,
licensees, contractors or invitees of Tenant, the cost to remedy the same shall
be paid by Tenant.  Tenant shall not be entitled to claim any eviction from the
Premises or any damages arising from any such damage or defect unless the same
(i) shall have been occasioned by the negligence of the Landlord, its agents,
servants or employees and (ii) shall not, after notice to Landlord of the
condition claimed to constitute negligence, have been cured or corrected within
a reasonable time after such notice has been received by Landlord; and in case
of a claim of eviction unless such damage or defective condition shall have
rendered the Premises untenantable and they shall not have been made tenantable
by Landlord within a reasonable time.

     17.4  Signs, Blinds and Drapes.

           (a) Except as set forth in this Article 17.4, Tenant shall, subject
to the provisions of this Article 17.4(a), be permitted to install Tenant
identification signage on the Premises. Tenant's installation of such signage
shall be conditioned upon Tenant obtaining Landlord's prior written approval,
which approval shall not be unreasonably withheld, and Tenant obtaining all
necessary governmental permits and approvals. Tenant shall: (i) maintain such
signage in good condition throughout the term of the Lease at Tenant's sole cost
and expense, (ii) remove such signage on or before the expiration or prior to
the term of the Lease, and (iii) repair any damage to the Premises caused by the
installation or removal of such signage.

           (b) Any change in signage shall be subject to Landlord's prior
written approval, shall comply with all applicable laws, and shall be paid for
at the sole cost of Tenant.

     17.5  Estoppel Certificate.  Each party ("Responding Party") shall at any
time and from time to time upon not less than ten (10) days' prior notice from
the other party ("Requesting Party"), execute, acknowledge and deliver to the
Requesting Party a statement in writing certifying that this Lease is unmodified
and in full force and effect (or if there have been modifications, that the same
is in full force and effect as modified and stating the modifications),

                                       29
<PAGE>

and the dates to which the Yearly Rent and other charges have been paid in
advance, if any, stating whether or not the Requesting Party is in default in
performance of any covenant, agreement, term, provision or condition contained
in this Lease and, if so, specifying each such default and such other facts as
the Requesting Party may reasonably request, it being intended that any such
statement delivered pursuant hereto may be relied upon by any prospective
purchaser of the Building or of the Building and the land or of any interest of
Landlord therein, any mortgagee or prospective mortgagee thereof, any lessor or
prospective lessor thereof, any lessee or prospective lessee thereof, or any
prospective assignee of any mortgage thereof, or any prospective subtenant or
assignee. Time is of the essence in respect of any such requested certificate,
each party hereby acknowledging the importance of such certificates in mortgage
financing arrangements, prospective sale and the like.

     17.6  Intentionally omitted.

     17.7  Requirements of Law-Fines and Penalties.

           (a) Subject to the provisions of this Article 17.7, Tenant at its
sole expense shall comply with all laws, rules, orders and regulations,
including, without limitation, all energy-related requirements, of Federal,
State, County and Municipal Authorities and with any direction of any public
officer or officers, pursuant to Law (collectively "Laws"), including, without
limitation, the Americans with Disabilities Act of 1990, and the rules and
regulations promulgated thereunder which shall impose any duty upon Landlord or
Tenant with respect to or arising out of Tenant's use or occupancy of the
Premises. If Tenant receives notice of any violation of law, ordinance, order or
regulation applicable to the Premises, it shall give prompt notice thereof to
Landlord.

           (b) Landlord shall comply with all Laws relating to the performance
of Landlord's Work. Landlord, subject to inclusion of the cost of compliance as
Operating Costs in accordance with the provisions of Article 9.1(g) of this
Lease, shall comply with all Laws which relate to: (1) the structure of the
Building, unless the need for such compliance arises from Tenant's particular
use of the Premises, and (ii) the portions of the Land which shall are exterior
to the Building (i.e. the sidewalks, the parking areas, and the main entrance to
the Building).

     17.8  Tenant's Acts-Effect on Insurance.  Tenant shall not knowingly do or
permit to be do or permit any act or thing upon the Premises which Tenant knows
will invalidate or be in conflict with any insurance policies covering the
Premises and the fixtures and property therein; and shall not knowingly do, or
permit to be done; any act or thing upon the Premises which shall subject
Landlord to any liability or responsibility for injury to any person or persons
or to property by reason of any business or operation being carried cm upon said
Premises or for any other reason. Tenant at its own expense shall comply with
all rules, orders, regulations and requirements of the Board of Fire
Underwriters, or any other similar body having jurisdiction applicable to
Tenant's use or manner of use of the Premises, and shall not (i) do, or permit
anything to be done, in or upon the Premises, or bring or keep anything therein,
except as now or hereafter permitted by the Fire Department, Board of
Underwriters, Fire Insurance Rating Organization, or other authority having
jurisdiction, and then only in such quantity and manner of storage as will not
increase the rate for any insurance applicable to the Premises, or (ii) use the
Premises in a manner which shall increase such insurance rates on the Premises
or on property

                                       30
<PAGE>

located therein, over that applicable when Tenant first took occupancy of the
Premises hereunder. If by reason of the failure of Tenant to comply with the
provisions hereof the insurance rate applicable to any policy of insurance shall
at any time thereafter be higher than it otherwise would be and such failure is
not cured within five (5) days after notice, the Tenant shall reimburse Landlord
for that part of any insurance premiums thereafter paid by Landlord, which shall
have been charged because of such failure by Tenant. In addition, if Tenant
shill make any alteration to the premises which increases the insurance premiums
payable by Landlord, Tenant shall reimburse Landlord for such increase within
fifteen (15) days of billing therefor.

     17.9  Miscellaneous.  Tenant shall not suffer or permit the Premises or any
Landlord fixtures, equipment or utilities therein or serving the same, to be
overloaded, damaged or defaced, nor, subject to Article 12, permit any hole to
be drilled or made in any part thereof. Tenant shall not suffer or permit any
employee, contractor, business invitee or visitor to violate any covenant,
agreement or obligations of the Tenant under this Lease.

18.  DAMAGE BY FIRE, ETC.

     18.1  Casualty Insurance.  During the entire term of this Lease, and
adjusting insurance coverages to reflect current values from time to time: (i)
Landlord shall keep the Building (excluding Tenant's personal property, trade
fixtures and equipment) insured against loss or damage caused by any peril
covered under fire, extended coverage and all risk insurance in an amount equal
to one hundred percent (100%) of-the full replacement cost thereof above
foundation walls, together with rent interruption insurance covering at least a
twelve (12) month period and (ii) Tenant shall- keep its persona] property in
and about the Premises and any other property installed by or at the expense of
Tenant insured against loss or damage caused by any peril covered under fire,
extended coverage and all risk insurance. In an amount equal to one hunched
percent (100%) of the full replacement cost thereof.

     18.2  Repair of Damage Caused by Casualty.  If any portion of the Premises
required to be insured by Landlord under Article 18.1 shall be damaged by fire
or other insured casualty, Landlord shall proceed with diligence, subject to the
then applicable statutes, building codes, zoning ordinances, and regulations of
any governmental authority, and at the expense of Landlord (but, so long as
Landlord complies with its obligations under clause (i) of Article 18.1 to
obtain casualty insurance, only to the extent of insurance proceeds made
available to Landlord by any mortgagee and/or ground lessor of the real property
of which the Premises are a part) to repair or cause to be repaired such damage.
All repairs to and replacements of Tenant's trade fixtures, furniture and
equipment shall be made by and at the expense of Tenant, the Premises or any
part thereof shall have been rendered unfit for use and occupation hereunder by
reason of such damage, there shall be no abatement of the Yearly Rent and other
charges except to the extent that Landlord receives rent interruption insurance
proceeds as the result of untenantability arising from such damage, so long as
Landlord complies with its obligation to obtain rent interruption insurance
under clause (i) of Article 18.1. Tenant agrees to cooperate with Landlord and
Landlord's Mortgagee in such manner as Landlord may reasonably request in
assisting Landlord and Landlord's Mortgagee in collecting insurance proceeds
(including rent insurance proceeds) due in connection with any casualty
affecting the Premises. Landlord shall not be liable for delays in the making of
any such repairs which are due to government regulation,

                                       31
<PAGE>

casualties and strikes, unavailability of labor and materials, and other causes
beyond the reasonable control of Landlord (financial inability shall not be
deemed to constitute causes beyond Landlord's reasonable control), nor shall
Landlord be liable for any inconvenience or annoyance to Tenant or injury to the
business of Tenant resulting from delays in repairing such damage.

     18.3 Landlord's Termination Rights.

          (a)  If (i) the Premises are so damaged by fire or other casualty
(whether or not insured) during the last five years of the term of the Lease
that the cost of restoration exceeds the applicable Maximum Restoration Cost, or
(ii) the Premises are damaged as the result of an uninsured casualty and, in
Landlord's reasonable judgment, the cast of restoration exceeds $100,000.00, or
(iii) in Landlord's reasonable judgment, there will be insufficient proceeds
available to Landlord to restore the Premises, and such insufficiency exceeds
$100,000.00, then, and in any of such events, this Lease and the term hereof may
be terminated at the election of Landlord by a notice in writing of its election
so to terminate which shall be given by Landlord to Tenant within sixty (60)
days following such fire or other casualty. Such notice shall contain Landlord's
reasonable estimate of the cost of restoration and the amount of insurance
proceeds which Landlord estimates will be available to Landlord for such
restoration. If Landlord exercises such termination right, then the effective
termination date shall be the date set forth in Landlord's termination notice
which shall be not less than thirty (30) days after the day on which such
termination notice is received by Tenant.

          (b)  For the purposes of this Article 18.3, the Maximum Restoration
Amount shall be defined as a percentage of the full replacement cost of the
Building and shall be defined based upon the number of years left in the then
current term of the Lease, as follows:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
         Number of Years Remaining                        Maximum Restoration Amount
       in then Current Term of Lease          (i.e. as a percentage of the full replacement cost
                                                               of the Building)
--------------------------------------------------------------------------------------------------
<S>                                          <C>
4 or more years, but less than 5 years                              50%
--------------------------------------------------------------------------------------------------
3 or more years, but less than 4 years                              40%
--------------------------------------------------------------------------------------------------
2 or more years, but less than 3 years                              30%
--------------------------------------------------------------------------------------------------
1 or more years, but less than 2 years                              20%
--------------------------------------------------------------------------------------------------
    less than 1 year                                                10%
--------------------------------------------------------------------------------------------------
</TABLE>

          (c)  If Landlord exercises its termination right pursuant to either
clause (ii) or (iii) of Paragraph (a) above, Tenant may nullify such exercise by
giving written notice to Landlord stating that Tenant will fund the- amount of
insufficiency in insurance proceeds end by delivering to Landlord, at the time
that it gives such notice, either a letter of credit in the amount of such
insufficiency, as estimated by Landlord in its termination notice, in form
reasonably acceptable to Landlord, from a bank reasonable acceptable to
Landlord, securing such obligation, or evidence reasonably acceptable to
Landlord, that Tenant has delivered to Landlord's first

                                       32
<PAGE>

mortgagee the amount of such insufficiency, estimated by Landlord in its
termination notice, subject to an escrow agreement for the benefit of Landlord,
in form reasonably acceptable to Landlord, whereby the funds held by the
mortgagee shall be disbursed on a monthly basis for the-purpose of paying for
all costs incurred by Landlord in performing such restoration.

     18.4  Tenant's Termination Rights.

           (a) Termination Based Upon Estimated Restoration Period.

     If all or any portion of the Premises shall be damaged or destroyed by fire
or other casualty to the extent that the operation of Tenant's business in the
Premises in the normal course is materially adversely affected, then, within
sixty (60) days of such fire or other casualty.  Landlord shall submit to Tenant
a reasonable engineering estimate as to the estimated length of dine required to
complete such repairs.  If the time period ("Estimated Restoration Period") set
forth in such estimate shall exceed two hundred seventy (270) days ("Outside
Restoration Period") from the date of such casualty, Tenant may elect; by a
notice sent within thirty (30) days after notice of such estimate is sent to
Tenant, to terminate this Lease in respect of such Building.  If such estimate
shall fall within said two hundred seventy (270) day limit, Tenant shall have no
such right to terminate and Landlord shall, subject to the provisions of this
Article 18, proceed with due diligence -and promptness to reasonably complete
the repairs or restoration within such two hundred seventy (270) day period,
subject always to delays for causes beyond Landlord's reasonable control as
specified in Article 26 hereof, and the other limitations set forth in this
Article 18.  Notwithstanding the foregoing, if the casualty occurs during the
last year of the term of the Lease, the Outside Restoration Period shall be
ninety (90) days from the date of the casualty.

           (b) Termination Based Upon Actual Restoration Period.

           If all or any portion of the Premises is damaged by fire or other
casualty to such an extent so as to render the Premises untenantable; and if
Landlord shall fail to substantially complete the restoration work on or before
the date (the "Restoration Deadline Date") which is the later of:  (1) the end
of the Estimated Restoration Period or (2) two hundred severity (270) days after
the date of such fire or other casualty, (except that if the casualty occurs
during the last year of the term of the Lease, said two hundred seventy (270)
day period shall be ninety (90) days, and except that, in the event that
Landlord is prevented from completing such restoration by reason of causes
beyond Landlord's reasonable control (the parties agreeing that financial
inability shall not constitute a cause beyond Landlord's reasonable control),
such two hundred seventy (270) day period shall be extended for an additional
sixty (60) days) for any reason other than Tenant's fault, Tenant may terminate
this Lease by giving Landlord written notice as follows:

           (i)   Said notice shall be given after the Restoration Deadline Date.

           (ii)  Said notice shall set forth an effective date which is not
           earlier than thirty (30) days after Landlord receives said notice.

           (iii) If the restoration work is substantially complete within thirty
           (30) days (which thirty (30) day period shall be extended by the
           length of any delays caused

                                       33
<PAGE>

           by Tenant or Tenant's contractors) after Landlord receives such
           notice, said notice shall have no further force and effect.

           (iv) If the restoration work is not substantially complete on or
           before the date thirty (30) days (which thirty (30)-day period shall
           be extended by the length of any delays caused by Tenant or Tenant's
           contractors) alter Landlord receives such notice, the Lease shall
           terminate as of said effective date.

           (c) Termination Based upon Insufficient Insurance Proceeds.

     Landlord shall, within sixty (60) days of any casualty, advise Tenant in
writing ("Insurance Proceeds Notice") as to whether Landlord will have
sufficient insurance proceeds available to Landlord to enable Landlord restore
the Premises after such casualty.  If Landlord advises Tenant there will be it
will not have sufficient insurance proceeds available to Landlord to complete
such restoration, then Tenant shall have the right, exercisable by written
notice given on or before the date thirty (30) days after Tenant receives the
Insurance Proceeds Notice to terminate the Lease.

     18.5  General Provisions Relating to Any Casualty Termination.

     In the event of any termination, this Lease and the term hereof shall
expire as of such effective termination date as though that were the Termination
Date as stated in Exhibit 1 and the Yearly Rent and other charges payable under
this Lease shall be apportioned as of such date.

19.  WAIVER OF SUBROGATION

           (a) In any case in which Tenant shall be obligated to pay to Landlord
any loss, cost, damage, liability, or expense suffered or incurred by Landlord,
Landlord shall allow to Tenant as an offset against the amount thereof (i) the
net proceeds of any insurance collected by Landlord fir or on account of such
loss, cost, damage, liability or expense, provided that the allowance of such
offset does not invalidate or prejudice the policy or policies under which such
proceeds were payable, and (ii) if such loss, cost, damage, liability or expense
shall have been caused by a peril which could be covered by fire insurance with
the broadest form of property insurance generally available on buildings similar
to the Building, whether or not actually procured by Landlord.

           (b) In any case in which Landlord or Landlord's managing agent shall
be obligated to pay to Tenant any loss, cost, damage, liability or expense
suffered or incurred by Tenant, Tenant shall allow to Landlord or Landlord's
managing agent, as the ease may be, as an offset against the amount thereof (i)
the net proceeds of any insurance collected by Tenant for or on account of such
loss, cost, damage, liability, or expense, provided that the allowance of such
offset does not invalidate the policy or policies under which such proceeds were
payable and (ii) the amount of any loss, cost, damage, liability or expense
caused by a peril which could be covered by fire insurance with the broadest
form of property insurance generally available on property in buildings of the
type of the Building, whether or not actually procured by Tenant.

           (c) The parties hereto shall each procure an appropriate clause in,
or endorsement on, any property insurance policy covering the Premises and the
Building and

                                       34
<PAGE>

personal property, fixtures and equipment located thereon and therein, pursuant
to which the insurance companies waive subrogation or consent to a waiver of
right of recovery in favor of either party, its respective agents or employees.
Having obtained such clauses and/or endorsements, each party hereby agrees that
it will not make any claim against or seek to recover from the other or its
agents or employees for any loss or damage to its property or the property of
others resulting from fire or other perils covered by such property insurance.

20.  CONDEMNATION - EMINENT DOMAIN

     20.1  Landlord's Termination Rights. In the event that the Premises, or any
part thereof, shall be taken or appropriated by eminent domain or shall be
condemned for any public or quasi-public use, or (by virtue of any such taking,
appropriation or condemnation) shall suffer any damage (direct, indirect or
consequential) for which Landlord or Tenant shall be entitled to compensation,
so that, in Landlord's bona fide business judgment the continued operation of
the Premises shall be rendered uneconomic, then (and in any such event) this
Lease and the term hereof may be terminated at the election of Landlord by a
notice in writing of its election so to terminate which shall be given by
Landlord to Tenant within sixty (60) days following the date on which Landlord
shall have received notice of such taking, appropriation or condemnation. Such
termination shall be effective in accordance with Article 20.3.

     20.2  Tenant's Termination Rights. In the event that a material part of the
Premises or the means of access thereto, shall be so taken, appropriated or
condemned, so that, in Tenant's bona fide business judgment, the continued
operation of Tenant's business in the Premises is materially adversely affected,
or in the event that more than twenty-five (25%) percent of the parking spaces
on the Land arc taken, then (and in any such event) this Lease and the term
hereof may be terminated at the election of Tenant by a notice in writing of its
election so to terminate which shall be given by Tenant to Landlord within sixty
(60) days following the date on which Tenant shall have received notice of such
taking, appropriation or condemnation. Such termination shall be effective in
accordance with Article 20.3. Notwithstanding the foregoing:

           (a) if the basis of the exercise by Tenant of its termination right
pursuant to this Article 20.2 is a taking of loss of access, Landlord may
nullify such termination by providing Tenant with substitute access which is
reasonably acceptable to Tenant, within sixty (60) days following the receipt by
Landlord of Tenant's termination notice, and

           (b) if the basis of the exercise by Tenant of its termination right
pursuant to this Article 20.2 is a loss of parking spaces, Landlord may nullify
such termination by providing Tenant with a number parking spaces within a
reasonable distance of the Land so that the aggregate number of parking spaces
available to Tenant (i.e. both on the Land and in such alternative location) is
at least seventy-five (75%) percent of the number of parking spaces available to
Tenant as of the Term Commencement Date in respect of the First Floor Premises,
within ninety (90) days following the receipt by Landlord of Tenant's
termination notice.

     20.3  Termination Band Upon Actual Restoration Period.  If all or any
portion of the Premises is taken by eminent domain or other process for
government purposes and neither party has exercised its termination rights under
this Article 20, and if Landlord shall fail to substantially complete the
restoration work on or before the date (the "Restoration Deadline

                                       35
<PAGE>

Date") two hundred seventy (270) days after the date of such taking, (except
that if the taking occurs during the last year of the term of the Lease, said
two hundred seventy (270) day period shall be ninety (90) days, and except that,
in the event that Landlord is prevented from completing such restoration by
reason of causes beyond Landlord's reasonable control (the parties agreeing that
financial inability shall not constitute a cause beyond Landlord's reasonable
control), such, one hundred eighty (180) day period shall be extended for an
additional sixty (60) days) for any reason other than Tenants fault, Tenant may
terminate this Lease by giving Landlord written notice as follows:

           (a) Said notice shall be given after the Restoration Deadline Date.

           (b) Said notice shall set forth an effective date which is not
earlier than thirty (30) days after Landlord receives said notice.

           (c) If the restoration work is substantially complete within thirty
(30) days (which thirty-(30)-day period shall be extended by the length of any
delays caused by Tenant or Tenant's contractors) after Landlord receives such
notice, said notice shall have no further force and effect.

           (d) If the restoration work is not substantially complete on or
before the date thirty (30) days (which thirty-(30)-day period shall be extended
by the length of any delays caused by Tenant or Tenant's contractors) after
Landlord receives such notice, the Lease shall terminate as of said effective
date.

     20.4  General Taking Provisions.  Upon the giving of any notice of
termination (either by Landlord or Tenant, subject however, to the last sentence
of Article 20.2), this Lease and the term hereof shall terminate on or
retroactively as of the date on which Tenant shall be required to vacate any
part of the Premises or shall be deprived of a substantial part of the means of
access thereto, provided, however, that Landlord may in Landlords notice elect
to terminate this Lease and the term hereof retroactively as of the date on
which such taking, appropriation or condemnation became legally effective.  In
the event of any such termination, this Lease and the term hereof shall expire
as of such effective termination date as though that were the Termination Date
as stated in Exhibit I, and the Yearly Rent shall be apportioned as of such
date.  If neither party (having the right so to do) elects to terminate Landlord
will, with reasonable diligence and at Landlord's expense, restore the remainder
of the Premises, or the remainder of the means of access, as nearly as
practicably may be to the same condition as obtained prior to such taking,
appropriation or condemnation in which event (i) a just proportion of the Yearly
Rent, according to the nature and extent of the taking, appropriation or
condemnation and the resulting permanent injury to the Premises and the means of
access thereto, shall be permanently abated, (ii) a just proportion of the
remainder of the Yearly Rent, according to the nature and extent of the taking,
appropriation or condemnation and the resultant injury sustained by the Premises
and the means of access thereto, shall be abated until what remains of the
Premises and the means of access thereto shall have been restored as fully as
may be for permanent use and occupation by Tenant hereunder.

     20.5  Taking Proceeds. Except for any award specifically reimbursing Tenant
for moving or relocation expenses, there are expressly reserved to Landlord all
rights to

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<PAGE>

compensation and damages created, accrued or accruing by reason of any such
taking, appropriation or condemnation, in implementation and in confirmation of
which Tenant does hereby acknowledge that Landlord shall be entitled to receive
all such compensation and damages, rant to Landlord all and whatever rights (if
any) Tenant may have to such compensation and damages, and agree to execute and
deliver all and whatever further instruments of assignment as Landlord may from
time to time request. Notwithstanding the foregoing, after Landlord's
mortgagee(s) has received taking proceeds to the extent necessary to satisfy
Landlord's obligations to such mortgagee(s) on account of such taking, and after
Landlord has received the balance of any award to the extent necessary to
compensate Landlord for the amount, if any, by which the then fair market value
of the Premises (excluding the value, if any, added to the Second Floor Premises
to a third party arising from leasehold improvements and fixtures [collectively
"Tenant Real Improvements which Tenant made in connection with the initial
preparation of the Second Floor Premises for Tenant's occupancy and which Tenant
does not have the right to remove pursuant to the provisions of the Lease)
exceeds the amount paid to Landlord's mortgages, Tenant shall have the right to
receive, from such award (to the extent the award has not been exhausted by
payments to Landlord and its mortgagees in accordance with the foregoing
provisions) the unamortized (i.e. amortized on a straight-line basis over the
tent of the Lease) cost to Tenant of the Tenant Real Improvements (i.e. taking
into account the fact that Landlord paid a $450,000 contribution toward the cost
of the Tenant Real Improvements). Any remaining balance of any award (i.e. after
Tenant has been paid the amounts set forth required pursuant to the immediately
preceding sentence) shall be paid to Landlord.

     20.6  Temporary Takings.  In the event of any taking of the Premises or any
part thereof for temporary use (i.e. not in excess of two hundred seventy days
(270)): (i) this Lease shall be and remain unaffected thereby, and (ii) Tenant
shall be entitled to receive for itself any award made for such use, provided,
that if any taking is for a period extending beyond the term of this Lease, such
award shall be apportioned between Landlord and Tenant as of the Termination
Date or earlier termination of this Lease.

21.  DEFAULT

     21.1  Conditions of Limitation - Re-entry - Termination. This Lease and the
herein term and estate are, upon the condition that if (a) subject to Article
21.7, Tenant shall neglect or till to perform or observe any of the Tenant's
covenants or agreements herein, including (without limitation) the covenants or
agreements with regard to the payment when due of Rent, additional charges,
reimbursement for increase in Landlord's costs, or any other charge payable by
Tenant to Landlord in accordance with the provisions of this Lease (all of which
shall be considered as part of Rent for the purposes of invoking Landlord's
statutory or other rights and remedies in respect of payment defaults); or (b)
Tenant shall admit in writing of Tenant's inability to pay its debts generally
as they become due, or make or offer to make a composition of its debts with its
creditors; or (c) Tenant shall make an assignment or trust mortgage, or other
conveyance or transfer of like nature, of all or a substantial part of its
property for the benefit of its creditors, or (d) the leasehold hereby created
shall be taken art execution or by other process of law and shall not be
revested in Tenant within sixty (60) days thereafter; or(e) a receiver,
sequesterer, trustee or similar officer shall be appointed by a court of
competent jurisdiction to take charge of all or any part of Tenant's property
and such appointment shall not be vacated within ninety (90) days; or (f) any
proceeding shall be instituted by or against Tenant pursuant to any of the
provisions of

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<PAGE>

any Act of Congress or State law relating to bankruptcy, reorganizations,
arrangements, compositions, or other relief from creditors, and, in the case of
any proceeding instituted against it, if Tenant shall fail to have such
proceedings dismissed within ninety (90) days or if Tenant is adjudged bankrupt
or insolvent as a result of any such proceeding, or (g) any event shall occur or
any contingency shall arise whereby this Lease, or the term and estate thereby
created, would (by operation of law or otherwise) devolve upon or pass to any
person, firm or corporation other than Tenant, except as expressly permitted
under Article 16 hereof, then, and in any such event, Landlord may, by notice to
Tenant, elect to terminate this Lease; and thereupon (and without prejudice to
any remedies which might otherwise be available for arrears of rent or other
charges due hereunder or preceding breach of covenant or agreement and without
prejudice to Tenant's Liability for damages as hereinafter stated), upon the
giving of such notice, this Lease shall terminate as of the date specified
therein as though that were the Termination Date as stated in Exhibit 1. Without
being taken or deemed to be guilty of any manner of trespass or conversion, and
without being liable to indictment, prosecution or damages therefor, Landlord
may, forcibly if necessary, enter into and upon the Premises (or any part
thereof in the name of the whole); repossess the same as of its former estate;
and expel Tenant and those claiming under Tenant Wherever "Tenant "is used in
subdivisions (b), (c), (e) and (f) of this Article 21.1, it shall be deemed to
include any guarantor of any of Tenants obligations under this Lease. The words
"re-entry" and "re-enter" as used in this Lease are not restricted to their
technical legal meanings.

     21.2  Intentionally Omitted.

     21.3  Damages -Termination.

           (a) Upon the termination of this Lease under the provisions of this
Article 21, then except as hereinabove in Article 21.2 otherwise provided,
Tenant shall pay to Landlord the Rent and other charges payable by Tenant to
Landlord up to the time of such termination, shall continue to be liable for any
preceding breach of covenant, and in addition, shall pay to Landlord as damages,
at the election of Landlord

                                    either:

           (x) the amount (discounted to present value) by which, at the time of
     the termination of this Lease (or at any time thereafter if Landlord shall
     have initially elected damages under subparagraph (y), below), (i) the
     aggregate of the Rent and other charges projected over the period
     commencing with such termination and ending on the Termination Date as
     stated in Exhibit I exceeds (ii) the aggregate fair market rental value of
     the Premises for such period;

                                      or:

           (y) amounts equal to the Rent and other charges which would have been
     payable by Tenant had this Lease not been so terminated, payable upon the
     due dates therefor specified herein following such termination and until
     the Termination Date as specified in Exhibit 1, provided, however, if
     Landlord shall re-let the Premises during such period, that Landlord shall
     credit Tenant with the act tents received by Landlord from such re-letting,
     such net rents to be determined by first deducting from the gross

                                       38
<PAGE>

     rents as and when received by Landlord from such re-letting the third-party
     expenses actually incurred and paid by Landlord in good faith incurred or
     paid by Landlord in terminating this Lease, as well as the expenses of re-
     letting, including altering and preparing the Premises for new tenants,
     broker's commissions, and all other similar and dissimilar expenses
     properly chargeable against the Premises and the rental therefrom, it being
     understood that any such re-letting may be for a period equal to or shorter
     or longer than the remaining term of this Lease and provided, Either, that
     (i) in no event shall Tenant be entitled to receive any excess of such net
     rents over the swim payable by Tenant to Landlord hereunder and (ii) in no
     event shall Tenant be entitled in any suit for the collection of damages
     pursuant to this Subparagraph (y) to a credit in respect of any net rents
     front a re-letting except to the extent that such net rents are actually
     received by Landlord prior to the commencement of such suit.

In calculating the Rent and other charges under Subparagraph (4 above, there
shall be included, in addition to the Yearly Rent, Taxes and Operating Costs and
all other considerations agreed to be paid or performed by Tenant, on the
assumption that all such amounts and considerations would have regained constant
(except as herein otherwise provided) for the balance of the full term hereby
granted.

           (b) Suit or suits for the recovery of such damages, or any
installments thereof, may be brought by Landlord from time to time at its
election, and nothing contained herein shall be deemed to require Landlord to
postpone suit until the date when the term of this Lease would have expired if
it bad not been terminated hereunder.

           (c) Nothing herein contained shall be construed as limiting or
precluding the recovery by Landlord against Tenant of any sums or damages to
which, in addition to the damages particularly provided above, Landlord may
lawfully be entitled by reason of any default hereunder on the part of Tenant.

           (d) Landlord agrees to use reasonable efforts to relet the Premises
after Tenant vacates the Premises in the event that the Lean is terminated bused
upon a default by Tenant hereunder. Listing the Premises for lease with a
reputable broker who is experienced in commercial real estate shall be deemed to
have satisfied Landlord's obligation to use "reasonable efforts." In no event
shall Landlord be required to (i) solicit or entertain negotiations with any
other prospective tenants for the Premises until Landlord obtains full and
complete possession of the Premises including, without limitation, the final and
unappealable legal right to it-let the Premises free of any claim of Tenant,
(ii) lease the Premises for a rental less than the current fair market rental
for the Premises, or (iii) enter into a lease with any proposed tenant that does
not have, in Landlord's reasonable opinion, sufficient financial resources or
operating experience to operate the Premises in a first-class manner.

     21.4  Fees and Expenses.

           (a) Landlord's Self Help. If Tenant shall default in the performance
of any covenant on Tenant's part to be performed as in this Lease contained,
Landlord may, upon thirty (30) days prior written notice to Tenant (except that,
in emergency situations, no notice shall be required) perform the same for the
account of Tenant. If Landlord at any time is compelled to

                                       39
<PAGE>

pay or elects to pay any sun of money, or do any act which will require the
payment of any sum of money, by reason of the failure of Tenant to comply with
any provision hereof, or if Landlord is compelled to or does incur any expense,
including reasonable attorneys' fees, in instituting, prosecuting, and/or
defending any action or proceeding instituted by reason of any default of Tenant
hereunder. Tenant shall on demand pay to Landlord by way of reimbursement the
sum or sums actually and reasonably paid by Landlord with all costs and damages,
plus (if applicable) interest computed as provided in Article 6 hereof.

           (b) Tenant's Self-Help. If Tenant shall default in the performance of
any covenant on Tenants part to be performed as in this Lease contained, Tenant
may, if Landlord fails to cure such Landlord Default within the Landlord Cure
Period, as hereinafter defined, perform the same for the account of Landlord.
Landlord shall, within thirty (30) days of demand therefor, reimburse Tenant the
sums so paid by Tenant in curing such Landlord Default, together with interest
accruing front the date that Tenant actually pays such cost through the date
that Landlord reimburses Tenant for such costs at the Lease Rate, as defined in
Article 6. However, in no event shall Tenant have the right to offset against,
withhold or deduct from Yearly Rent or other charges payable under this Lease,
except as expressly hereinafter provided. If (i) Landlord fails to reimburse
Tenant for the sums paid by Tenant within thirty (30) days of Tenant's demand
thereby, and (ii) if Tenant obtains a judgment against Landlord in connection
with such breach by Landlord, which judgment is final, and beyond appeal, and
(iii) if Landlord fails to pay Tenant such sums Within thirty (30) days after
Tenant obtains such judgment, then Tenant shall have the right to offset the
amount of such sums paid by Tenant against not more than ten percent (10%) of
the monthly installments of Annual Fixed Rent until offset in full. For the
purposes of this Paragraph (b), the "Landlord Cure Period" shall be defined as
follows:

               (1) In the event of an emergency threatening life or property, or
           Tenant's interest in this Lease, three (3) days after receipt by
           Landlord of written notice front Tenant of such default;

               (2) In the event of any other default of Landlord, thirty (30)
           days after receipt by Landlord of written notice from Tenant of such
           default. Notwithstanding the foregoing, in the event that Landlord
           has commenced to cure such default within said thirty (30) day
           period, and so long as Landlord thereafter diligently prosecutes such
           cure to completion, the thirty (30) day period shall be extended to
           such period of time as Landlord reasonably requires to cure such
           default.

           (c) Attorneys' Fees.  In the event of any litigation or other legal
proceeding (e.g. arbitration) between Landlord and Tenant relating to the
provisions of this Lease or Tenant's occupancy of the Premises, the losing party
shall, upon demand, reimburse the prevailing party for its reasonable costs of
prosecuting and/or defending such proceeding (including, without limitation,
reasonable attorneys fees).

     21.5  Intentionally Omitted.

     21.6  Remedies Not Exclusive. Unless otherwise specified in this Lease, the
specified remedies to which Landlord or Tenant may resort hereunder are
cumulative and are not intended

                                       40
<PAGE>

to be exclusive of any remedies or means of redress to which Landlord or Tenant
may at any time be lawfully entitled, and Landlord or Tenant may invoke any
remedy (including the remedy of specific performance) allowed at law or in
equity as if specific remedies were not herein provided for.

     21.7  Grace Period.  Notwithstanding anything to the contrary in this Lease
contained, Landlord agree not to take any action to terminate this Lease (a) for
default by Tenant in the payment when due of any sum of money, if Tenant shall
cure such default within ten (10) days after written notice thereof is given by
Landlord to Tenant, provided, however, that no such notice need be given and no
such default in the payment of money shall be curable if on two (2) prior
occasions in the same twelve month period, there had been a default in the
payment of money which had been cured after notice thereof bad been given by
Landlord to Tenant as herein provided or (b) for default by Tenant in the
performance of any covenant other than a covenant to pay a sum of money, if
Tenant shall cure such default within a period of thirty (30) days after written
notice thereof given by Landlord to Tenant (except where the nature of the
default is such that remedial action should appropriately take place sooner, as
indicated in such written notice), or within such additional period as may
reasonably be required to cure such default if (because of governmental
restriction or any other cause beyond the reasonable control of Tenant) the
default is of such a nature that it cannot be cured within such thirty-(30)-day
period, provided, however, (I) that there shall be no extension of time beyond
such thirty-(30)-day period for the curing of any such non-monetary default
unless, not more then twenty (20) days after the receipt of the notice of
default, Tenant in writing (1) shall specify the cause on account of which the
default cannot be cured during such period and shall advise Landlord of its
intention duly to institute all steps necessary to cure the default and (ii)
shall, as soon as reasonably practicable, duly institute and thereafter
diligently prosecute to completion all steps necessary to cure such default and,
(2) that no notice of the opportunity to cure a non-monetary default need be
given, and no grace period whatsoever shall be allowed to Tenant, if the
condition on which Landlord seeks to terminate this Lease is based upon
subdivisions (b), (c), (d), (e), (f) or (g) of Article 21.1

22.  END OF TERM - ABANDONED PROPERTY

           (a) Upon the expiration or other termination of the term of this
Lease, Tenant shall peaceably quit and surrender to Landlord the Premises and
all alterations and additions thereto, broom clean, in good order, repair and
condition (except as provided herein and in Articles 8.2, 18 and 20) excepting
only ordinary wear and use, damage by fire or other casualty, damage caused by
the default or negligent or willful misconduct of Landlord for which, under
other provisions of this Lease, Tenant has no responsibility of repair or
restoration, and damage caused by any failure to perform its obligations
hereunder. Tenant shall remove all of its property and, to the extent specified
by Landlord in accordance with Article 12, all alterations and additions made by
Tenant and all partitions wholly within the Premises, and shall repair any
damages to the Premises caused by their installation or by such removal, tenants
obligation to observe or perform this covenant shall survive the expiration or
other termination of the term of this Lease.

           (b) Tenant will remove any personal property from the Premises upon
or prior to the expiration or termination of this Lease and any such property
which shall remain in the Premises thereafter shall be conclusively deemed to
have been abandoned, and may either be

                                       41
<PAGE>

retained by Landlord as its property or sold or otherwise disposed of in such
manner as Landlord may see fit. If any part thereof shall be sold, that Landlord
may receive and retain the proceeds of such sale and apply the same, at its
option, against the expenses of the sale, the cost of moving and storage, any
arrears of Yearly Rent, additional or other charges payable hereunder by Tenant
to Landlord and any damages to which Landlord may be entitled under Article 21
hereof or pursuant to law.

           (c) If Tenant or anyone claiming under Tenant shall remain in
possession of the Premises or any part thereof after the expiration or prior
termination of the term of this Lease without any agreement in writing between
Landlord and Tenant with respect thereto, then, prior to the acceptance of any
payments for rent Or use and occupancy by Landlord, the person remaining in
possession shall be deemed a tenant-at-sufferance. Whereas the parties hereby
acknowledge that Landlord may need the Premises after the expiration or prior
termination of the term of the Lease for other tenants and that the damages
which Landlord may suffer as the result of Tenant's holding-over cannot be
determined as of the Execution Date hereof, in the event that Tenant so holds
over, Tenant shall pay to Landlord in addition to all rental and other charges
due and accrued under the Lease prior to the date of termination, charges (based
upon fair market rental value of the Premises) for use and occupation of the
Premises thereafter and, in addition to such sums and any and all other rights
and remedies which Landlord may have at law or in equity, an additional use and
occupancy charge in the amount of fifty percent (50%) of either the Yearly Rent
and other charges calculated (on a daily basis) at the highest rate payable
under the terms of this Lease, but measured from the day on which Tenant's hold-
over commenced and terminating on the day on which Tenant vacates the Premises
or the fair market value of the Premises for such period, whichever is greater.
In addition, if such hold-over exceeds sixty (60) days after the termination of
the Lease term, Tenant shall indemnify, defend, and hold Landlord harmless from
and against any loss, cost or damages (including, without limitation, reasonable
attorneys fees) which Landlord may suffer by reason of any such hold over by
Tenant.

23.  SUBORDINATION

           (a) Subject to any mortgagee's or ground lessor's election, as
hereinafter provided for, this Lease is subject and subordinate in all respects
to all matters of record (including, without limitation, deeds and land
disposition agreements) and all mortgages, any of which may now or hereafter be
placed on or affect such leases and/or the real property of which the Premises
are a part, or any part of such real property, and/or Landlord's interest or
estate therein, and to each advance made and/or hereafter to be made under any
such mortgages, and to all renewals, modifications, consolidations, replacements
and extensions thereof and all substitutions therefor. This Article 23 shall be
self-operative and no further instrument or subordination shall be required. In
confirmation of such subordination, Tenant shall execute, acknowledge and
deliver promptly any certificate or instrument that Landlord and/or any
mortgagee and/or their respective successors in interest may reasonably request.
Notwithstanding anything to the contrary in this Article 23 contained, as to any
future mortgages, ground leases, and/or underlying lease or deeds of trust, the
herein provided subordination and attornment shall be effective only if the
mortgagee agrees, by a written Nondisturbance, Subordination, and Attornment
Agreement ("Nondisturbance Agreement") in the customary form of such mortgagee,
with such revisions as Tenant may reasonably request

                                       42
<PAGE>

           (b) Any such mortgagee or ground lessor may from time to time
subordinate or revoke any such subordination of the mortgage or ground lease
held by it to this Lease. Such subordination or revocation, as the may be, shall
be effected by written notice to Tenant and by recording an instrument of
subordination or of such revocation, as the case may be, with the appropriate
registry of deeds or land records and to be effective without any further act or
deed on the part of Tenant. In confirmation of such subordination or of such
revocation, as the case may be, Tenant shall execute, acknowledge and promptly
deliver any certificate or instrument that Landlord, any mortgagee or ground
lessor may reasonably request.

           (c) Without limitation of any of the provisions of this Lease, if any
ground lessor or mortgagee shall succeed to the interest of Landlord by reason
of the exercise of its rights under such ground lease or mortgage (or the
acceptance of voluntary conveyance in lieu thereat) or any third party
(including, without limitation, any foreclosure purchaser or mortgage receiver)
shall succeed to such interest by reason of any such exercise or the expiration
or sooner termination of such ground lease, however caused, then such successor
may, upon notice and request to Tenant (which, in the case of a ground lease,
shall be within thirty (30) days after such expiration or sooner termination),
succeed to the interest of Landlord under this Lease, provided, however, that
such successor shall not: (i) be Liable for any previous act or omission of
Landlord under this Lease (but nothing herein shall release any successor from
performing any ongoing maintenance or repair obligations of Landlord, even if
the need for the repair occurs prior to such successor succeeding Landlord);
(ii) be subject to any offset, defense, or counterclaim which shall theretofore
have accrued to Tenant against Landlord; (iii) have any obligation with respect
to any security deposit unless it shall have been paid over or physically
delivered to such successor; or (iv) be bound by any previous modification of
this Lease or by any previous payment of Yearly Rent for a period greater than
one (1) month, in either case made without such ground lessor's or mortgagee's
consent where such consent is required by applicable ground lease or mortgage
documents.  In the event of such succession to the interest of the Landlord -
and notwithstanding that any such mortgage or ground lease may antedate this
Lease - subject to Article 23(a), the Tenant shall attorn to such successor and
shall ipso facto be and become bound directly to such successor in interest to
Landlord to perform and observe all the Tenant's obligations under this Lease
without the necessity of the execution of any further instrument.  Nevertheless,
Tenant agrees at any time and from time to time during the term hereof to
execute a suitable instrument in confirmation of Tenant's agreement to attorn,
as aforesaid, subject to Landlord's mortgagee's and ground lessor's right to do
so for, on behalf and in the name of Tenant under certain circumstances, as
hereinafter provided.

           (d) The term "mortgage(s)" as used in this Lease shall include any
mortgage or deed of trust. The term "mortgagee(s)" as used in this Lease shall
include any mortgagee or any trustee and beneficiary under a deed of trust or
receiver appointed under a mortgage or deed of trust. The tam "mortgagor(s)" as
used in this Lease shall include any mortgagor or any grantor under a deed of
trust.

           (e) Tenant agrees to send to any mortgagee (ground lessor and/or
trustee) of which Tenant shall have been previously advised in writing
("Mortgagee") a copy of any notice of default given to Landlord at the seine
time as such notice is given to Landlord, but failure to do so shall only affect
Tenant's rights against such mortgagee and shall not affect Tenant's rights
against Landlord. With respect to any right which Tenant has to terminate the
Lease based upon

                                       43
<PAGE>

Landlord's default, any Mortgagee shall have an additional thirty (30) days
after receipt of written notice that Landlord's cure period has elapsed within
which to cure such default, provided however, that if such default cannot be
cured within that lime, then any Mortgagee shall have such additional time, not
to exceed one hundred twenty (120) additional days, after such Mortgagee's
receipt of written notice that Landlord's cure period has elapsed, as may be
reasonably necessary to cure such default, if within such thirty (30) day
period, (i) such Mortgagee gives written notice ("Intent Notice") to Tenant that
it will cure such default as soon as possible, and (ii) such Mortgagee has
commenced and thereafter diligently pursues the remedies necessary to cure such
default (including, but not limited to, commencement of foreclosure proceedings
if necessary to effect such cure), in which event the Lease shall not be
terminated by Tenant within the thirty or one hundred twenty-day period, as
applicable, while such remedies are being so diligently pursued.

24.  QUIET ENJOYMENT

     Landlord covenants that if, Tenant is not in default, beyond the expiration
of any applicable grace period, Tenant shall quietly enjoy the Premises and its
appurtenant rights from and against the claims of all persons claiming by,
through or under Landlord subject, nevertheless, to the covenant, agreements,
terms, provisions and conditions of this Lease.

25.  ENTIRE AGREEMENT - WAIVER - SURRENDER

     25.1  Entire Agreement. This Lease and the Exhibits made a part hereof
contain the entire and only agreement between the parties with respect to the
Premises, the Building and the Land, and any and all statements and
representations, written and oral, including previous correspondence and
agreements between the parties hereto, are merged herein. Tenant acknowledges
that all representations and statements upon which it relied in executing this
Lease are contained herein and that the Tenant in no way relied upon any other
statements or representations, written or oral. Any executory agreement
hereafter made shall be ineffective to change, modify, discharge or effect an
abandonment of this Lease in whole or in part unless such executory agreement is
in writing and signed by the party against whom enforcement of the change,
modification, discharge or abandonment is sought.

     25.2  Waiver. The failure of either party to seek redress for violation, or
to insist upon the strict performance, of any covenant or condition of this
Lease, or any of the Rules and Regulations promulgated hereunder, shall not
prevent a subsequent act, which would have originally constituted a violation,
from having all the force and effect of an original violation. The receipt by
Landlord of Rent with knowledge of the breach of any covenant of this Lease
shall not be deemed a waiver of such breach. The failure of Landlord to enforce
any of such Rules and Regulations against Tenant and/or any other tenant in the
Building shall not be deemed a waiver of any such Rules and Regulations. No
provisions of this Lease shall be deemed to have been waived by either party
unless such waiver be in writing signed by waiving party. No payment by Tenant
or receipt by Landlord of a lesser amount than the monthly Rent herein
stipulated shall be deemed to be other than on account of the stipulated rent,
nor shall any endorsement or statement on any check or any letter accompanying
any check or payment as Rent be deemed an accord and satisfaction, and Landlord
may accept such check or payment

                                       44
<PAGE>

without prejudice to Landlord's right to recover the balance of such rent or
pursue any other remedy in this Lease provided.

     25.3  Surrender.  No act or thing done by Landlord during the term hereby
demised shall be deemed an acceptance of a surrender of the Premises, and no
agreement to accept such surrender shall be valid, unless in writing signed by
Landlord.  No employee of Landlord or of Landlord's agents shall have any power
to accept the keys of the Premises prior to the termination of this Lease.  The
delivery of keys to any employee of Landlord or of Landlord's agents shall not
operate as a termination of the Lease or a surrender of the Premises.  In the
event that Tenant at any lime desires to have Landlord underlet the Premises for
Tenants account, Landlord or Landlord's agents are authorized to receive the
keys for such purposes without releasing Tenant from any of the obligations
under this Lease, and Tenant hereby relieves Landlord of any liability for loss
of or damage to any of Tenant's effects in connection with such underletting.

26.  INABILITY TO PERFORM EXCULPATORY CLAUSE

           (a) Except as expressly provided in this Lease, this Lease, the
obligations of Tenant to pay Rent hereunder, and the obligations of Tenant to
perform all the other covenants, agreements, terms, provisions and conditions
hereunder to be performed shall in no way be affected, impaired or excused
because Landlord & unable to fulfill any of its obligations under this Lease or
ale unable to supply or are delayed in supplying any service expressly or
impliedly to be supplied or are unable to make or are delayed in making any
repairs, replacements, additions, alterations, improvements or decorations or
are unable to supply or are delayed in supplying any equipment or fixtures if
Landlord is prevented or delayed from so doing by reason of strikes or labor
troubles or say other cause whatsoever beyond Landlord's control, including but
not limited to, governmental preemption in connection with a national emergency
or by reason of any rule, order or regulation of any department or subdivision
thereof of any governmental agency or by reason of the conditions of supply and
demand which have been or are affected by war, hostilities or other emergency.
Financial inability shall not be considered a cause beyond Landlord's reasonable
control excusing Landlord's performance hereunder. In each such instance of
inability of Landlord to perform, Landlord shall exercise reasonable diligence
to eliminate the cause of such inability to perform.

           (b) Tenant shall neither assert nor seek to enforce any claim against
Landlord, or Landlord's agents or employees, or the assets of Landlord or of
Landlord's agents or employees, for breach of this Lease or otherwise, other
than against Landlord's interest in the Land and the Building and in the
uncollected rents, issues and profits thereof; and Tenant agrees to look solely
to such interest for the satisfaction of any liability of Landlord under this
Lease, it being specifically agreed that in no event shall Landlord or
Landlord's agents or employees (or any of the officers, trustees, directors,
partners, beneficiaries, joint venturers, members, stockholders or other
principals or representatives, and the like, disclosed or undisclosed, thereof)
ever be personally liable for any such liability.  This paragraph shall not
limit any right that Tenant might otherwise have to obtain injunctive relief
against Landlord or to take any other action which shall not involve the
personal liability of Landlord to respond in monetary damages from Landlord's
assets other than the Landlord's interest in said real estate, as aforesaid.  In
no event shall Landlord or Landlord's agents or employees (or any of the
officers, trustees,

                                       45
<PAGE>

directors, partners, beneficiaries, joint venturers, members, stockholders or
other principals or representatives and the like; disclosed or undisclosed,
thereof) ever be liable for consequential or incidental damages or for lost
profits. In no event shall Tenant or Tenant's agents or employees (or any of the
officers, trustees, directors, partners, beneficiaries, joint venturers,
members, stockholders or other principals or representatives and the like,
disclosed and undisclosed thereof) ever be liable for consequential or
incidentals damages or for lost profits, provided however, that nothing in this
sentence shall affect or limit Tenant's liability in the event of any breath by
Tenant of its obligations under Article 22. If by reason of Landlord's failure
to complete Landlord's Work, Landlord shall be held to be in breach of this
Lease, Tenant's sole and exclusive remedy shall be as set forth in Article 4.1
of the Lease.

           (c) In no event shall Tenant or Tenant's agents or employees (or any
of the officers, trustees, directors, partners, beneficiaries, joint venturers,
members, stockholders or other principals or representatives and the like,
disclosed and undisclosed thereof) ever be liable for consequential or
incidentals damages or for lost profits, provided however, that nothing in this
sentence shall affect or limit Tenant's liability in the event of any breach by
Tenant of its obligations under the last paragraph of Article 22.

27.  BILLS AND NOTICES

     Any notice, consent, request, bill, demand or statement hereunder by either
party to the other party shall be in writing and, if received at Landlord's Or
Tenant's address, shall be deemed to have been duly given when either delivered,
served personally, sent by recognized overnight courier service, or mailed in a
postpaid envelope, deposited in the United States mail addressed to Landlord at
its address as stated in Exhibit 1 and to Tenant at the Premises (or at Tenants
address as stated in Exhibit 1, if mailed prior to Tenant's occupancy of' the
Premises), or if any address for notices shall have been duly changed as
hereinafter provided, if mailed as aforesaid to the party at such changed
address.  A copy of Tenant notices shall be sent to the Notice Address set forth
on Exhibit I prior to the Term Commencement Date in respect of the First Floor
Premises, and thereafter shall be sent to Premises.  Either party may at any
time change the address or specify an additional address for such notices,
consents, requests, bills, demands or statements by delivering or mailing, as
aforesaid, to the other party a notice stating the change and setting forth the
changed or additional address, provided such changed or additional address is
within the United States.

     If Tenant's interest in the Lease is assigned to a partnership, Tenant, for
itself: and on behalf of all of its partners, shall appoint a partner of Tenant
as Tenant's Service Partner, to accept service of any notice, consent, request,
bill, demand or statement hereunder by Landlord and any service of process in
any judicial proceeding with respect to this Lease on behalf of Tenant and as
agent and attorney-in-fact for each partner of Tenant.

     All bills and statements for reimbursement or other payments or charges due
from Tenant to Landlord hereunder shall be due and payable in the thirty (30)
days from receipt of the same by Tenant, unless herein otherwise provided.
Tenant's failure to make timely payment of any amounts indicated by such bills
and statements, whether for work done by Landlord at Tenant's request,
reimbursement provided for by this Lease or for any other sums properly owing by

                                       46
<PAGE>

Tenant to Landlord, shall be treated as a default in the payment of rent, in
which event Landlord shall have all rights and remedies provided in this Lease
for the nonpayment of rent.

28.  PARTIES BOUND - SEISIN OF TITLE

     The covenants, agreements, terms, provisions and conditions of this Lease
shall bind and benefit the successors and assigns of the pats hereto with the
same effect as if mentioned in each instance where a party hereto is named or
referred to, except that no violation of the provisions of Article 16 hereof
shall operate to vest any rights in any successor or assignee of Tenant and that
the provisions of this Article 28 shall not be construed as modifying the
conditions of limitation contained in Article 21 hereof.

     If, in connection with or as a consequence of the sale, transfer or other
disposition of the real estate (land and/or Building, either or both, as the
ease may be) of which the Premises are a part, Landlord ceases to be the owner
of the reversionary interest in the Premises, Landlord shall be entirely freed
and relieved from the performance and observance thereafter of all covenant and
obligations hereunder on the part of Landlord to be performed and observed,
provided that in such event (and it shall be deemed and construed as a covenant
running with the land) that the person succeeding to Landlord's ownership of
said reversionary interest shall thereupon assume, and perform and observe, any
and all of such covenants and obligations of Landlord.

29.  MISCELLANEOUS

     29.1    Separability.  If any provision of this Lease or portion of such
provision or the application thereof to any person or circumstance is for any
reason held invalid or unenforceable, the remainder of the Lease (or the
remainder of such provision) and the application thereof to other persons or
circumstances shall not be affected thereby.

     29.2    Captions, etc.  The captions are inserted only as a matter of
convenience and for reference, and in no way define, limit or describe the scope
of this Lease nor the intent of any provisions thereof.

     29.3    Broker.

             (a) Tenant represents and warrants that it has riot directly or
indirectly dealt, with respect to the leasing of space in the Building (called
"Building, etc." in this Article 29.3) with any broker or had its attention
called to the Premises or other space to let in the Building, etc. by anyone
other than the broker, person or firm, if any, designated in Exhibit 1. Tenant
agrees to defend, exonerate and save harmless and indemnify Landlord and anyone
claiming by, through or under Landlord against any claims for a commission
arising in breach of the representation and warranty set forth in the
immediately preceding sentence, provided that Landlord shall be solely
responsible for the payment of brokerage commissions to the broker, person or
firm, if any, designated in Exhibit 1.

             (b) Landlord represents and warrants that, in connection with the
execution and delivery of the Lease, it has not directly or indirectly dealt
with any broker other than the broken designated on Exhibit 1. Landlord agrees
to defend, exonerate, save harmless, and

                                       47
<PAGE>

indemnify Tenant and anyone claiming by, through, or under Tenant against any
claims arising in breach of the representation and warranty set forth in the
immediately preceding sentence.

     29.4    Intentionally Omitted.

     29.5    Arbitration.  Any disputes relating to provision or obligations in
this Lease as to which a specific provision for a reference to arbitration is
made herein shall be submitted to arbitration in accordance with the provisions
of applicable state law (as identified on Exhibit 1), as from time to time
amended.  Arbitration proceedings, including the selection of an arbitrator,
shall be conducted pursuant to the rules, regulations and procedures from time
to time in effect as promulgated by the American Arbitration Association.  Prior
written notice of application by either party for arbitration shall be given to
the other at least ten (10) days before submission of the application to the
said Association's office in the City of Boston.  The arbitrator shall hear the
parties and their evidence.  The decision of the arbitrator shall be binding and
conclusive, and judgment upon the award or decision of the arbitrator may be
entered in the appropriate court of law (as identified on Exhibit I); and the
parties consent to the jurisdiction of such court and further agree that any
process or notice of motion or other application to the Court or a Judge thereof
may be served outside of Massachusetts by registered mail or by personal
service, provided a reasonable tune for appearance is allowed.  The costs and
expenses of each arbitration hereunder and their apportionment between the
parties shall be determined by the arbitrator in his award or decision.  No
arbitrable dispute shall be deemed to have arisen under this Lease prior to (i)
the expiration of the period of twenty (20) days after the date of the giving of
written notice by the party asserting the existence of the dispute together with
a description thereof sufficient for an understanding thereof; and (ii) where a
Tenant payment is in issue, the amount billed by Landlord having been paid by
Tenant.

     29.6    Governing Law. This Lease is made pursuant to, and shall be
governed by, and construed in accordance with, the laws of Massachusetts and any
applicable local municipal rules, regulations, by-laws, ordinances and, the
like.

     29.7    Assignment of Rents. With reference to any assignment by Landlord
of its interest in this Lease, or the rents payable hereunder, conditional in
nature or otherwise, which assignment is made to or held by a bank, trust
company, insurance company or other institutional lender holding a mortgage or
ground lease on the Building, Tenant agrees:

             (a) that the execution thereof by Landlord and the acceptance
thereof by such mortgagee and/or ground lessor shall never be deemed an
assumption by such mortgagee and/or ground lessor of any of the obligations of
the Landlord thereunder, unless such mortgagee and/or wound lessor shall, by
written notice sent to the Tenant, specifically otherwise elect and

             (b) that, except as aforesaid, such mortgagee and/or ground lessor
shall be treated as having assumed the Landlord's obligations thereunder only
upon foreclosure of such mortgagee's mortgage or deed of trust or termination of
such ground lessor's ground lease or the taking of possession of the Premises
after having given notice of its exercise of the option stated in Article 23
hereof to succeed to the interest of the Landlord under this Lease.

                                       48
<PAGE>

     29.8    Representation of Authority.  By his execution hereof each of the
signatories on behalf of the respective parties hereby warrants and represents
to the other that he is duly authorized to execute this Lease on behalf of such
party.

     29.9    Expenses Incurred by Landlord Upon Tenant Requests.  Tenant shall,
upon demand, reimburse Landlord for all reasonable expenses, including, without
limitation, legal fees, incurred by Landlord in connection with all requests by
Tenant for consents, approvals or execution of collateral documentation related
to this Lease, including, without limitation, costs incurred by Landlord In the
review and approval of Tenant's plans and specifications in connection with
proposed alterations to be made by Tenant to the premises, requests by Tenant to
sublet the premises or assign its interest in the Lease, the execution by
Landlord of estoppel certificates requested by Tenant, and requests by Tenant
for Landlord to execute waivers of Landlord's interest in Tenant's property in
connection with third party financing by Tenant.  Such costs shall be deemed to
be additional rent under the Lease.

     29.10   Survival. Without limiting any other obligation of Tenant or
Landlord which may survive the expiration or prior termination of the term of
the Lease, all obligations on the part of each party to indemnify, defend, or
hold the other party harmless, as set forth in this Lease shall survive the
expiration or prior termination of the term of the Lease.

30.  CONDITIONS TO LEASE EXECUTION

     The parties acknowledge that Landlord has not, as of the Execution Date
acquired title to the Premises.  Landlord represents that it has the right to
purchase the Premises pursuant to a Purchase and Sale Agreement in effect with
the current owner of the Premises.  Therefore, if all of the following
conditions have not occurred on or before September 30, 1999, then either party
shall have the right, exercisable upon written notice to the other party before
all of the following conditions occur, to terminate the Lease and to render it
void and without further force or effect:

     1.  Landlord acquires title to the Premises; and

     2.  Landlord's mortgagee executes and delivers to Tenant a Nondisturbance
         Agreement.

                                       49
<PAGE>

COMMONWEALTH DISTRICT OR
STATE OF _______________________

COUNTY OF ______________________

     On the Execution Date stated in Exhibit 1, the person above signing this
Lease for and on behalf of Pentose Pharmaceuticals, Inc., to me personally
known, did sign and execute this Lease and, being by me duly sworn, did depose
and say that he is the officer of the above named Pentose Pharmaceuticals, Inc.,
as noted, and that he signed his name hereto by order of the Board of Directors
of said Pentose Pharmaceuticals, Inc.

                                   _____________________________________________
                                   Notary Public
                                   My Commission Expires: ______________________

COMMONWEALTH OF MASSACHUSETTS

COUNTY OF SUFFOLK

     On the Execution Date stated in Exhibit 1, the person above signing this
Lease for and on behalf of Landlord to me personally known, did sign and execute
this Lease and, being by me duly sworn, did depose and say that he is the duly
authorized representative of Landlord.

                                   _____________________________________________
                                   Notary Public
                                   My Commission Expires: ______________________

                                       50
<PAGE>

                                   EXHIBIT 6

                              134 Coolidge Avenue
                                 Watertown, Ma

     The following shall constitute the list of equipment specified in Section
11(b) of the Lease agreement for the above referenced real property by and
between Pentose Pharmaceuticals, Inc. and Coolidge Partners, LLC:

     1.   Any and all chemical fume hoods and related accessories such as
          exhaust fans and filters;

     2.   Any and all biological safety cabinets and related accessories;

     3.   Any and all laboratory casework exclusive of sinks;

     4.   Air compressors;

     5.   Vacuum pump systems;

     6.   High purity water systems;

     7.   Autoclaves;

     8.   Steam generators;

     9.   Glasswashing equipment

     10.  Ice makers

     11.  PH neutralization system

     12.  Back-up generator

     13.  Environmental chambers (cold/warm rooms)

The above list in no way limits the provisions of Section 11(b) but rather
clarifies them.

                                       51
<PAGE>

                                   EXHIBIT 7

BENEFICIARY:                                ISSUANCE DATE:

                                            ______________ 199_

[Landlord's Name]                           IRREVOCABLE STANDBY LETTER OF
c/o _______________________                 CREDIT NO.

ACCOUNTEE/APPLICANT:
                                            MAXIMUM/AGGREGATE CREDIT AMOUNT:____

_______________________                     USD ___________________
[TENANT NAME]

GENTLEMEN:

     We hereby establish our irrevocable letter of credit in your favor for
account of the applicant up to an aggregate amount not to exceed
__________________ US Dollars ($__________) available by your draft(s) drawn on
ourselves at sight accompanied by:

     Your statement, signed by a purportedly authorized officer/official
certifying that the Beneficiary is entitled to draw upon this Letter of Credit
(in the amount of the draft submitted herewith) pursuant to Paragraph 3 of the
Rider to the Lease (the "Lease") dated ___________ by and between
________________________, as Landlord, and _________________________, as Tenant,

     Draft(s) must indicate name and issuing bank and credit number and must be
presented at this office.

     You shall have the right to make partial draws against this teller of
Credit, from time to tune.

     Except as otherwise expressly stated herein, this Letter of Credit is
subject to the "Uniform Customs and practice for Documentary Credits,
International Chamber of Commerce, Publication No.  500 (1993 Revision)".

     This Letter of Credit shall expire at our office on __________, 200_ (the
"Stated Expiration Date").  Et is a condition of this Letter of Credit that the
Stated Expiration Date shall be deemed automatically extended without amendment
for successive one (1) year periods from such Stated Expiration Date, unless at
least forty-five (45) days prior to such Stated Expiration.  Date )or any
anniversary thereof) we shall notify you and the Accountee/Applicant in writing
by registered mail (return receipt) that we elect not to consider this Letter of
Credit extended for any such additional one (1) year period.

                                       52
<PAGE>

                                RIDER TO LEASE

                       LANDLORD:  Coolidge Partners LLC
                    TENANT:  Pentose Pharmaceuticals, Inc.
                 PREMISES:  134 Coolidge Avenue, Watertown, Ma

1.   Tenant's Option to Extend the Term of Lease
     -------------------------------------------

     A.   On the conditions, which conditions Landlord may waives at its
election, by written notice to Tenant at any time, that Tenant is not in default
(after the giving of any applicable notice and the expiration of any applicable
grace periods) of its covenants and obligations under the Lease, and that
Pentose Pharmaceuticals, Inc., Affiliates of Tenant, as defined in Article 16 of
the Lease.  and/or a Permitted Tenant Successor, are occupying at least fifty
(50%) percent of the premises then demised to Tenant, both as of the time of
option exercise and as of the commencement of the hereinafter described
additional tents, Tenant shall have the option to extend the term of this Lease
for two (2) additional five (5) year terms, the First such additional term
commencing as of the expiration of the initial term of the Lease, and the second
such term to commence (if Tenant has timely and properly exercised its first
extension option) as of the expiration of the first such term.  Tenant may
exercise such option to extend by giving Landlord written notice on or before
the date one year prior to the expiration date of the then current term of the
Lease.  Upon the timely giving of such notice, the term of this Lease shall be
deemed extended upon all of the terms and conditions of this Lease, except that
Landlord shall have no obligation to construct or renovate the Premises and that
the Yearly Rent during such additional term shall be as hereinafter set forth.
If Tenant fails to give timely notice, as aforesaid, Tenant shall have no
further right to extend the term of this Lease, time being of the essence of
this Paragraph 1.

     B.   Yearly Rent
          -----------

     The Yearly Rent during each additional term shall be based upon the Fair
Market Rental Value, as defined in Paragraph 2 of this Rider, as of the
commencement of such additional term, of the Premises, provided however, that in
no event shall the Yearly Rent payable by Tenant for any twelve-fl?)- month
period during the additional term be less than the Yearly Rent payable by Tenant
in respect of the twelve-(12)-month period immediately preceding the
commencement of such additional term.

     C.   Tenant shall have no further option to extend the term of the Lease
other than the two (2) additional five (5) year terms herein provided.

     D.   Notwithstanding the fact that upon Tenants exercise of the herein
option to extend the term of the Lease such extension shall be self-executing,
as aforesaid, the parties shall promptly execute a lease amendment reflecting
such additional term after Tenant exercises the herein option, except that the
Yearly Rent payable in respect of such additional term may not be set forth in
said amendment.  Subsequently, after such Yearly Rent is determined, the parties
shall execute a written agreement confirming the same.  The execution of such
tease amendment shall not be deemed to waive any of the conditions to Tenant's
exercise of its rights under this Paragraph 1, unless otherwise specifically
provided in such lease amendment.

                                       53
<PAGE>

2    Definition of Pair Market Rental Value.
     --------------------------------------

     For the purposes of this Rider:

     A.   "Fair Market Rental Value' shall be computed as of the date in
question at the then current annual rental charge (i.e., the sum of Yearly Rent
plus escalation and other charges), including provisions for subsequent
increases and other adjustments for leases or agreements to lease then currently
being negotiated, or executed in comparable space located in comparable
buildings in Watertown.

     B.   Dispute as to Fair Market Rental Value
          --------------------------------------

Landlord shall initially designate Fair Market Rental Value and Landlord shall
furnish data in support of such designation.  If Tenant disagrees with
Landlord's designation of a Fair Market Rental Value, Tenant shall have the
right, by written notice given within thirty (30) days after Tenant has been
notified of Landlord's designation, to submit such Fair Market Rental Value to
arbitration.  Fair Market Rental Value shall be submitted to arbitration as
follows:  Fair Market Rental Value shall be determined by   impartial
arbitrators, one to be chosen by the Landlord, one to be chosen by Tenant, and a
third to be selected, if necessary, as below provided.  The unanimous written
decision of the two first chosen, without selection and participation of a third
arbitrator, or otherwise, the written decision of a majority of three
arbitrators chosen and selected as aforesaid, shall be conclusive and binding
upon Landlord and Tenant.  Landlord and Tenant shall each notify the other of
its chosen arbitrator within ten (10) days following the call for arbitration
and, unless such two arbitrators shall have reached a unanimous decision within
thirty (30) days after their designation, they shall so notify the President of
the Boston Bar Association (or such organization as may succeed to said Boston
Bar Association) and request him to select an impartial third arbitrator, who
shall be an office building owner or a real estate broker dealing with like
types of properties, to determine Fair Market Rental Value as herein defined.
Such third arbitrator and the first two chosen shall, subject to commercial
arbitration rules of the American Arbitration Association, hear the parties and
their evidence and render their decision within thirty (30) days following the
conclusion of such hearing and notify Landlord and Tenant thereof.  Landlord and
Tenant shall bear the expense at the third arbitrator (if any) equally.  The
decision of the arbitrator shall be binding and conclusive, and judgment upon
the award or decision of the arbitrator may be entered in the appropriate court
of law; and the parties consent to the jurisdiction of such court and further
agree that any process or notice of motion or other application to the Court or
a Judge thereof may be served outside of Massachusetts by registered mail or by
personal service, provided a reasonable time for appearance is allowed.  If the
dispute between the parties as to a Fair Market Rental Value has not been
resolved before the commencement of Tenant's obligation to pay rent based upon
such Fair Market Rental Value, then Tenant shall pay Yearly Rent and other
charges under the Lease in respect of the premises in question based upon the
Fair Market Rental Value designated by Landlord until either the agreement of
the parties as to the Fair Market Rental Value, or the decision of the
arbitrators, as the case may be, at which time Tenant shall pay any underpayment
of rent and other charges to Landlord, or Landlord shall refund any overpayment
of rent and other charges to Tenant.

                                       54
<PAGE>

3.   Letter of Credit
     ----------------

     A.   Tenant acknowledges that Landlord is unwilling to execute the Lease
unless Tenant provides Landlord With security for Tenant's obligations under the
Lease.  Therefore, Tenant shall deliver to Landlord two Irrevocable Standby
Letters of Credit (each of which is referred to herein as a "Letter of Credit")
which shall be (1) in the form attached hereto as Exhibit 7, (2) issued by a
national bank acceptable to Landlord, (3) in an aggregate amount ("Required
Letter of Credit Amount") equal to Eight Hundred Forty-One Thousand Five Hundred
($84l,500.00) Dollars and (4) for a term of one (1) year, subject to extension
in accordance with the terms of the Letter of Credit.  Tenant shall deliver said
Letter of Credit as follows:  Tenant shall deliver to a Letter of Credit
satisfying the foregoing criteria in the amount of Four Hundred Twenty Thousand
Seven Hundred Fifty ($420,750.00) Dollars on or before August 13, 1999 and
Tenant shall deliver a second Letter of Credit satisfying the foregoing criteria
in the amount of Four Hundred Twenty Thousand Seven Hundred Fifty ($420,750.00)
Dollars on or before the earlier to occur of the Term Commencement Date in
respect of the First Floor Premises or the Term Commencement Date in respect of
the Second Floor Premises.  Tenant's failure timely to deliver either Letter of
Credit shall be considered, for the purposes of Article 21.7 of the Lease, to be
default by Tenant in the payment of money.  Tenant shall, on or before the date
thirty (30) days prior to the expiration of the term of either such Letter of
Credit, deliver to Landlord a new Letter of Credit satisfying the foregoing
conditions ('Substitute Letter of Credit") in lieu of such Letter of Credit then
being held by Landlord.  Such Letter of Credit shall be automatically renewable
in accordance with the second to last grammatical paragraph of Exhibit 7;
provided that, in such event, Tenant shall be required to deliver a Substitute
Letter of Credit satisfying the conditions hereof, on or before the date thirty
(30) days prior to the expiration of the term of such Letter of Credit, if the
issuer of such Letter of Credit gives notice of its election not to renew such
Letter of Credit for any additional period pursuant thereto.

     B.   On the conditions that (i) Tenant is not in default of its obligations
under the Lease us of the time of any Reduction Event, as hereinafter defined,
(ii) Tenant has not, prior to any Reduction Event defaulted in its obligations
under the Lease after the giving of any applicable notice and the expiration of
any applicable grace period, more than one time, and (iii) and that the Lease is
in full force and effect, then the Required Letter of Credit Amount may reduced,
as follows, upon the occurrence of a Reduction Event.  "Reduction Events" shall
be defined as the first Capital Event, as hereinafter defined, to occur and any
Anniversary Reduction Date, as hereinafter defined.

     C.   A "Capital Event" shall be defined as either:  (1) the raising by
Tenant of an additional (i.e. above the capital shown on the financial statement
which Tenant has delivered to Landlord prior to the execution of this Lease)
Nine Million ($9,000,000.00) Dollars in capital, the parties hereby agreeing
that Tenant shall be required to demonstrate, to Landlord's reasonable
satisfaction, that such capital has, in fact, been raised by Tenant and is in
the control of Tenant.  or (ii) the merger of Tenant into, or with, another
entity which, immediately following such merger has a net worth of at least
Twenty-Five Million ($25,000,000,00) Dollars, the parties hereby agreeing that
Tenant shall be required to provide a certified financial statement from an
independent certified public accountant reasonably acceptable to Landlord,
evidencing such act worth.  Subject to the conditions set forth in Subparagraph
B of this Paragraph 3, upon the first Capital Event to occur, the Required
Letter of Credit Amount shall be reduced by Four

                                       55
<PAGE>

Hundred Twenty Thousand Seven Hundred Fifty ($420,750.00) Dollars. After the
Required Letter of Credit Amount has been reduced based upon the first Capital
Event to occur, there shall be no further reduction In the Requited Letter of
Credit Amount based upon any future Capital Event.

     D.   The "Anniversary Reduction Dates" shall be defined as the fourth
anniversary of the Rent Commencement Date in respect of the First Floor Premises
and each anniversary of the Rent Commencement in respect of the First Floor
Premises during the term of the Lease occurring after the fourth anniversary of
the Rent Commencement Date.  Subject to the conditions set forth in Subparagraph
B of this Paragraph 3, upon the occurrence of each Anniversary Reduction Date,
the Required Letter of Credit Amount shall be reduced by Seventy Thousand One
Hundred Twenty-Five and no/100 ($70,125.00) Dollars.

     E.   The reduction of the Requited Letter of Credit Amount may be effected,
as of any Reduction Event,, by either: (i) the exchange of the existing
Letter(s) of Credit then being held by Landlord for a new Letter of Credit
satisfying the requirements of this Paragraph 3 of the new Required Letter of
Credit Amount, or(ii) the issuance by the issuing bank or an amendment of the
existing Letter(s) of Credit which is accepted by Landlord in writing, of an
amendment to the existing Letter(s) of Credit so that Landlord will be holding a
Letter of Credit(s) in the new Required Letter of Credit Amount.

     F.   In the event that Tenant is in default of its obligations under the
Lease; than the Landlord shall have the right, at any time after such event
without giving any further notice to Tenant, to draw down from Letter of Credit
(Substitute Letter of Credit or Additional Letter of Credit, as defined below,
as the case may be) (a) the amount necessary to cure such default or (b) it such
default cannot reasonably be cured by the expenditure of money, to exercise all
rights and remedies Landlord may have on account of such default, the amount
which, in Landlord's opinion is necessary to satisfy Tenant's liability in
account thereof.  In the event of any such draw by the Landlord, Tenant shall,
within fifteen (15) business days of written demand thereof, deliver to Landlord
an additional Letter of Credit satisfying the foregoing conditions ("Additional
Letter of Credit"), except that the amount of such Additional Letter of Credit
shall be the amount of such draw.  In addition, in the event of a termination
based upon the default of Tenant under the Lease, or a rejection of the Lease
pursuant to the provisions of the Federal Bankruptcy Code, Landlord shall have
the right to

                                       56
<PAGE>

                                   EXHIBIT I

                              134 Coolidge Avenue
                                 Watertown, Ma

<TABLE>
<S>                                            <C>
EXECUTION DATE:                                 August 4, 1999

LANDLORD:                                       Coolidge Partners LLC
     Notice Address:                            87 Blanchard Road
                                                Cambridge, MA 02138

TENANT:                                         Pentose Pharmaceuticals Inc., a Delaware corporation

     Notice Address:                            45 Moulten Street
     Prior to Term Commencement Date:           Cambridge, MA 02138
                                                Attention:  Mr. Ken Rice, Vice President

PREMISES:                                       The land ("Land") described on Exhibit 2
                                                and shown on Exhibit 2-1, and the building
                                                ("Building") located thereon. The parking
                                                areas on the Land shall contain a minimum
                                                of 105 lawful parking spaces.  The
                                                Property is presently known as and numbered
                                                134 Coolidge Avenue, Watertown, MA.  The
                                                Building contains two floors, the first
                                                floor ('That Floor Premises") and the
                                                second floor ("Second Floor Premises").
                                                The First Floor Premises and the Second
                                                Floor Premises are each sometimes
                                                referred to in the Lease as a "Portion"
                                                of the premises.

SPECIFIED COMMENCEMENT
DATE (Art. 3.1):
     First Floor Premises:                      January 15, 2000
     Second Floor Premises:                     December 15, 1999

TERMINATION                                     Ten (10) years after the Term Commencement
DATE (Art. 3.2):                                Date in respect of the First Floor Premises

FINAL PLANS                                     August 31, 1999
DATE (Art. 4.3):

PERMITTED                                       General office use, laboratory use uses
USE (Art. 5):                                   ancillary thereto, and any other lawful purpose

YEARLY RENT (Art. 6):                           The term "Lease Year" in respect of each Floor
     Lease Year:                                of the Premises shall be defined as any twelve
                                                (12) month period during the term of the Lease
                                                commencing as
</TABLE>

                                       57
<PAGE>

<TABLE>
<S>                                             <C>
                                                of the Term Commencement Date in respect of
                                                the such Floor of the Premises, or as of any
                                                anniversary of the Term Commencement Date in
                                                respect of such Floor of the Premises, except
                                                the tenth Lease Year in respect of each Floor
                                                of the Premises shall end as of the
                                                Termination Date.
</TABLE>

                             Yearly Rent Schedule:

<TABLE>
<CAPTION>
First Floor Premises:
          Lease Year                     Yearly Rent                      Monthly Payment
<S>                                      <C>                              <C>
             1/1/                        $350,625.00                       $35,062.50
             2-3                         $420,750.00                       $35,062.50
             4-6                         $467,500.00                       $38,958.33
             7-10                        $523,600.00                       $43,633.33
<CAPTION>
Second Floor Premises:
          Lease Year                     Yearly Rent                     Monthly Payment
<S>                                      <C>                             <C>
             1/2/                        $350,625.00                       $35,062.50
             2-3                         $420,750.00                       $35,062.50
             4-6                         $467,500.00                       $38,958.33
             7-10                        $523,600.00                       $43,633.33

  TOTAL RENTABLE AREA (Art 6):

  First Floor Premises:                    18,700 square feet
  Second floor Premises:                   18,700 square feet
  Total:                                   37,400 square feet

  BROKER (Art.  29.5):                     Fallon, Hines & O'Connor
</TABLE>
______________________
 /1/ Tenant shall have no obligation to pay Yearly Rant in respect of the First
  Floor Premises for the period commencing as of the term Commencement Date in
  respect of the First Floor Premises and ending as of the date two (2) months
  after the Term Commencement Date in respect of the First Floor Premises (e.g.
  if the Term Commencement Date in respect of the First Floor Premises occurs on
  January 15, 2000, then Tenant's obligation to pay Yearly Rent in respect of
  the First Floor Premises shall not commence until March 15, 2000)

/2/ Tenant shall have no obligation to pay Yearly Rent in respect of the Second
  Floor Premises for the period commencing as of the Term Commencement Date in
  respect of the Second Floor Premises and ending as of the date two (2) months
  after the Term Commencement Date in respect of the Second Floor Premises (e.g.
  if the Term Commencement Date in respect of the Second Floor Premises occurs
  on December 15, 1999, then Tenant's obligation to pay Yearly Rent in respect
  of the Second Floor Premises shall not commence until February 15, 2000).

                                       58
<PAGE>

                                  EXHIBIT 2-1

                     Legal Description of Insured Premises

The land together with the buildings thereon situated in Watertown, Middlesex
County, Massachusetts, being more particularly bounded and described as follows:

Southerly      by Coolidge Avenue, as shown on plan hereinafter mentioned, one
               hundred sixty-one (161) feet;

Westerly       by Land now or formerly of Paramount Development Associates,
               Inc., four hundred ninety and 70/100 (490.70) feet

Northerly      by land of the Town of Watertown, as shown on said plan, one
               hundred fifty-three and 28/100 (153.28) feet;

Easterly       by other land now or formerly of Paramount Development
               Associates, Inc. and land now or formerly of Barclay Chemical
               Co., as shown on said plan, four hundred sixty-six and
               10/100(466.10) feet.

All as shown as Lot C.2 containing 74,402 square feet, more or less, as shown on
plan of land entitled "Plan of Land in Watertown, Mass., Owned by Paramount
Develop. Assoc., Inc., Scale 1"=40', April 2, 1963, Survey by MacCarthy
Engineering Service, Inc., Natick, Mass., Nashoba Survey Co., Inc., Marlborough,
Mass.", which plan is recorded in Book 10256, Page 7, and as further shown on a
plan of land entitled "Title Insurance Plan of Land in Watertown,
Massachusetts", scale 1"=30', dated April 10, 1995, prepared for Coolidge Ave.
Realty Corporation by Des Lauriers & Associates, Inc. Professional Land
Surveyors, and recorded with Middlesex South Registry of Deeds as Plan No. 291
of 1995 in Book 25282, Page 107.

                                       59
<PAGE>

                              134 Coolidge Avenue
                                 Watertown, MA
         Description of Property Improvements - Pentose Pharmaceuticals
                               6/15/99 3:27 P.M.

Sitework:

Base improvements to the site and parking areas will include the following:

     .    Demolition and removal of the existing accessory shed building

     .    Repairing, repaving and repainting the existing parking area to
          accommodate 109 parking spaces

     .    Reconfiguring the front parking area abutting Coolidge Avenue to
          create a new landscaped buffer along the sidewalk

     .    Install lights for parking lot.

Building Exterior:

     .    Demolition of the existing glass entrance. A new glass entry shall be
          a curtainwall system of 1" low-e fixed insulated glass units in
          aluminum frames. The entry shall incorporate a new canopy.

     .    Resurface the existing metal building cladding with an Exterior
          Insulation and Finish System to provide a uniform finish and texture.
          EIPS system shall be Dryvit, or equivalent 2 coat textured finish with
          fiberglass mesh

     .    Remove and replace existing office windows with 1" law-e fixed
          insulated glass units in aluminum flames.

     .    Replace existing windows at the sides of the building with 1" low-e
          fixed insulated glass units in aluminum frames

     .    Create new openings to match the existing openings along the sides of
          the addition section of the building and install new 1" low-e fixed
          insulated glass units in aluminum frames

     .    Install a new 20 year .060 EPDM roof membrane including 1"
          polyisocyanurate insulation, .040 bronze aluminum gravel stop,
          flashing and roof drains. Existing metal roof over addition area to
          remain and be repaired if required

     .    Remove and replace existing stairs at the rear of the building with
          new concrete stair with metal railings.

Building Interior:

     General - Both Floors

                                       60
<PAGE>

     .    Install a new two stop hydraulic passenger elevator. Elevator shall be
          Dover or equal with standard cab finishes and 2500 lb capacity

     .    Renovate the existing lobby including new ornamental stair, ceramic
          tile floor covering and base, drywall walls with vinyl wall covering,
          2x2 acoustical tile ceilings with 2x2 light fixtures

     .    Renovate the existing bathrooms to include new drywall finished walls,
          new plumbing, fixtures, floor mounted baked enamel metal partitions,
          ceramic tile floors, base, and one, wet wall per bathroom. Counters to
          be plastic laminate. Bathrooms to remain in existing core.

     .    Finish the interior of the exterior walls with 5/8" drywall, primed
          and painted.

     .    Addition building (approx. 7400 sf.) shall be renovated to provide
          open floor plan, replace 2x4 ceiling tile on second floor, clean and
          repair VCT on second floor, re-lamp existing electrical fixtures,
          repair and repaint existing perimeter walls. Clean and seal concrete
          floor on first floor, and no new ceiling on the first floor.

     .    Existing freight elevator to remain.

First Floor Office Area - 15,000 sf

     .    Perform office build out fort PPI and PDC on the first floor in
          accordance with the Drawing SKI prepared by Cubellis Associates, Inc.
          dated 5/26/99.

     .    Carpet on flat floor unless otherwise indicated. A flooring allowance
          of $22/sy installed is included.

     .    Demising partition between PPI and PDC shall be a 1 hour rated wall
          extended to the underside of the deck.

     .    Partitions around the offices labeled "Board Room" 2 ea., and
          "President's Office" 2 ea. shall be insulated, full height partitions
          consisting of 3 1/2" metal studs with one layer of 5/8" drywall on
          each side. All other drywall partitions shall be extended to 6" above
          the finished ceiling.

     .    Doors will be solid core stain grade oak vencer in hollow metal frames
          with integral sidelights. Hardware will be brushed crome hinges with
          Schlage or equivalent passage and locksets.

     .    Existing columns shall be enclosed in drywall.

     .    Ceilings shall be new 2x2 acoustical ceiling tile unless otherwise
          indicated.

     .    Each of the two Kitchen areas shall have approximately 10' of base
          cabinets and plastic laminate counter top.

                                       61
<PAGE>

     .    Furniture, equipment and millwork is not included.

Laboratory Area Base Improvements

     .    Lab area on second floor approximately 15,000sf shall be provided as
          basis shell space, "Vanilla box". Flooring, ceiling and finishes are
          not included unless otherwise noted as base-building items indicated
          under the heading "General".

     .    Fit-up up for the lab space shall be provided for as an allowance as
          indicated in the attached proposal. The floor shall be prepared to
          receive new VCT floor tile. Tenant fit-up assumed to include but shall
          not be limited to all lab specific partitioning, lighting, flooring,
          ceilings, plumbing, electrical and HVAC distribution necessary for the
          lab fixturing and equipment to provide first class laboratory space.

Plumbing/Mechanical Systems:

     .    The HVAC servicing the laboratory space on the second floor shall be
          deigned for 100% outside air. Design HVAC make-up air shall be
          1.25CFM/sf. Laboratory HVAC system for the second floor system shall
          include 1 primary trunk duct along the length of the building. All
          customized distribution and ductwork, exhaust fans and vents for the
          laboratory space shall be the responsibility of the Tenant.

     .    The existing Heating Ventilation and Air Conditioning system (HVAC)
          wilt be replaced with a new package roof top system including all
          distribution and diffusers on the first floor, and balancing and
          warranties. The system shall provide for up to 8 multiple,
          individually controlled zones through the use of VAV controls or
          independent rooftop units.

     .    Landlord will provide a trench and waste pipe to tie into for the
          tenant's wastewater treatment requirements.

     .    The existing fire protection sprinkler system will be renovated to
          comply with current fire, building and life safety codes for general
          office space. Existing sprinkler heads shaft be relocated on the first
          floor to accommodate the ceiling plan and office layout.

Electrical Systems:

     .    The electrical systems to be provided shall include a single metered
          panel, electrical outlets along the perimeter of the building and
          additional circuits above the acoustical coiling to power the Tenant's
          interior power requirements.

     .    Electrical service to be upgraded to provide 750KVA 480/277. Power
          requirements to be:

          -  2.5 watts/sf - lighting

                                       62
<PAGE>

          -  4.5 watts/sf - general electrical devices

          -  7.0 watts/sf - HVAC equipment

          -  3.0 watts/sf - Misc. and future growth

     .    New 2x4 drop in prismatic light fixtures will be installed for the
          15,000sf first floor office space, and all lobby and bathroom areas
          (one fixture per 120 square feet). Bath office will be switched
          independently and will have three duplex electrical outlets.

     .    A fire alarm monitoring system will be installed in compliance with
          all building, and life safety codes.

     .    Landlord shall supply a concrete base pad and empty conduit to the
          electric room to accommodate an emergency generator. All other
          modifications necessary to incorporate the generator shall be the
          responsibility of the Tenant. Generator to be provided and installed
          by the Tenant. Location to be determined by Tenant.

                                       63
<PAGE>

                            Camco Management Company
                    Cleaning Specifications 134 Coolidge Ave

Areas To Be Serviced.  Entrances, entrance lobby, corridors, lavatories, tenant
--------------------
areas, stairwells and elevator.

General Cleaning services.
-------------------------

Nightly:
-------

*    Dry mop flooring with specially treated dust mops.

*    Wash flooring in building entrance foyers.

*    Vacuum entrance matting.

*    Vacuum all carpeted areas.

*    Empty wastepaper baskets and receptacles, and replace liners as needed.
     (landlord to supply liners).

*    Clean cigarette urns and replace sand or water as necessary.

*    Remove trash to specified area on the premises using special janitorial
     carriages.

*    Dust desks, tables, office furniture, window sills, ledges, horizontal
     surfaces, etc.

*    Straighten chairs in the conference rooms and cafeteria upon completion of
     cleaning these rooms.

*    Dust all vertical surfaces, heating units, window silts and fire
     extinguisher in main lobby and Corridors.

*    Polish all exposed metal surfaces.

*    Spot clean walls around light switches, door jambs, corners, office
     machines, water coolers, elevator switches, etc.

*    Spot clean glass partitions.

*    Spot clean carpeting to remove stains.

*    Spot dean finger marks from walls and woodwork.

*    Spot sop all spills, stains, etc., throughout office tile.

*    Damp mop and spray buff floors in the main lobby.

                                       64
<PAGE>

*    Sweep or vacuum flooring in all elevators.

*    Clean walls and bright work in elevators.

*    Remove all litter and foreign debris from overhead areas of elevator it
     odors.

*    Clean and sanitize sinks throughout facility.

*    Clean counter tops in all food related areas.

*    Police stairwells.

*    Wash both sides of all entrance door glass.

*    Damp wipe and sanitize all cafeteria tables.

*    Office and utility doors will be checked for general cleanliness, removing
     finger marks as necessary.

*    Keep service rooms in clean and orderly condition

*    Maintain daily log.

Periodic Cleaning Services:
--------------------------

*    Dust baseboards, chair rails, trim, louvers, picture doors, etc., within
     reach weekly.

*    Remove finger marks from metal partitions and other similar surfaces
     weekly.

*    Dust venetian blinds quarterly.

*    Detail vacuum all carpeted areas including edges end kneeholes weekly.

*    Vacuum upholstered furniture, etc. as needed.

*    Strip and refinish lobby flooring as needed

*    Dust window frames and door frames weekly.

*    Accomplish high dusting of office - areas quarterly which includes the
     following:

*    Dust pictures, frames, charts and similar wall hangings not reached in
     nightly cleaning.

*    Dust all pipes, ducts, high molding and light fixtures.

*    Dust vertical surfaces,, such as partitions, etc. not reached in nightly
     cleaning.

*    Sweep stairs weekly.

*    Wash stairs monthly.

                                       65
<PAGE>

*    Wash both sides of tenant glass windows on both sides all glass partitions
     weekly.

*    Wash and polish glass furniture tops removing stains, etc.

*    Wash elevator light fixtures and lenses, ceiling fans, and hatch way doors
     as necessary.

*    Vacuum and polish elevator tracks; an all floors as needed.

*    Polish conference room tables and furniture in reception areas as needed.

Restrooms:
---------

Nightly:
-------

*    Clean and polish all chrome fitting and bright work,, including shelves,
     flushometers and metal dispensers.

*    Clean and sanitize both sides of toilet seats with -a germicidal solution.

*    Clean, sanitize and polish all fixtures, including toilet bowls, urinals
     and sinks using a germicidal detergent solution.

*    Clean and polish all mirrors and glass.

*    Dust and spot clean all toilet partitions, tile walls, dispensers and
     receptacles.

*    Empty al disposal receptacles, liners as needed.

*    Empty all disposal receptacles, liners as needed.

*    Refill all dispensers, including napkin, soap, tissue, towels, cups,
     liners, etc.  Materials are to be furnished by landlord.

*    Empty and sanitize interior of sanitary napkin receptacles.

*    Remove spots, stains and splashes from all areas.

*    Wash and sanitize exterior of containers.

*    Sweep floor thoroughly.

*    Wash and rinse all floors thoroughly using a germicidal detergent solution.

*    Empty and damp wipe ashtrays.

*    Dust all horizontal surfaces Including moldings, ledges, shelves, frames,
     vents, radiators, partitions, etc.

                                       66
<PAGE>

*    Spot clean by damp wiping finger prints, smears and smudges on walls,
     doors, frames, kick and push plates, handles, light switches and glass
     surfaces.

Periodic services:
-----------------

*    Wash and sanitize all partitions, tile walls and enamel surfaces monthly.

*    Machine scrub flooring with approved germicidal detergent solution monthly.

*    Dust or vacuum clean all heating and air conditioning ceiling vents.

Carpet - Maintenance Program
----------------------------

A common area carpet maintenance program will include the following:

*    On-going spot removal program.

*    Secco or Bonnett shampooing of corridors quarterly.

*    Deep cleaning of all common areas annually.

LABORATORY
----------

     General:  As specified by Pentose
     -------

                                       67
<PAGE>

                               134 Coolidge Ave.
                           Operating Expense Budget
                         Jan. 1, 2000 - Dec.  31, 2000

Total Square Feet       37,400

----------------------------------------------------------------------
     Expense                       Annual $                $psf
----------------------------------------------------------------------
Insurance                           3,500                  0.09
----------------------------------------------------------------------
Water  Sewer                        9,000                  0.24
----------------------------------------------------------------------
Landscaping                         2,000                  0.05
----------------------------------------------------------------------
HVAC Repair & Maint.                2,000                  0.05
----------------------------------------------------------------------
Elevator Repair & Maint,            1,500                  0.04
----------------------------------------------------------------------
General Repair & Maint.            18,000                  0.48
----------------------------------------------------------------------
Sal. & Wages - Maint.              16,500                  0.44
----------------------------------------------------------------------
Security                            2,000                  0.05
----------------------------------------------------------------------
Cleaning (18,700sf)                14,960                  0.80
----------------------------------------------------------------------
Trash Removal                       5,400                  0.14
----------------------------------------------------------------------
Snow Removal                        3,600                  0.10
----------------------------------------------------------------------
Admin. Expense                      3,500                  0.09
----------------------------------------------------------------------
Sup..-Hardware/Cleaning             5,000                  0.13
----------------------------------------------------------------------
  Subtotal                         86,960                  2.73
----------------------------------------------------------------------
Real Estate Tax                   102,850                  2.75
----------------------------------------------------------------------
Management Fee                     40,872                  1.09
----------------------------------------------------------------------
  Grant Total                    $230,682                 $6.57
----------------------------------------------------------------------
Assumptions:

All elec. and gas paid by Tenant directly to Utility Co. (Sec. 8.1 of lease)

Water & Sewer included for estimate, (deduct from Mgmt Fee). Tenant will pay to
Town. Landscaping and Genl. Maint. should be negligible in Year 1 as a function
of warranties.

                                       68
<PAGE>

     IN WITNESS WHEREOF the parties hereto have executed this Indenture of Lease
in multiple copies, each to considered an original hereof, as a sealed
instrument on the day and year noted in Exhibit 1 as the Execution Date.

LANDLORD:

                              COOLIDGE PARTNERS L.L.C.

                              By:__________________________________________
                                 Its Manager

TENANT:

                              PENTOSE PHARMACEUTICALS, INC.

                              By:__________________________________________
                                 Name:
                                 Title:
                                 Hereunto Duly Authorized

     A SECRETARY'S OR CLERK'S CERTIFICATE OF THE AUTHORITY AND THE INCUMBENCY OF
THE PERSON SIGNING ON BEHALF OF TENANT AND LANDLORD SHOULD BE ATTACHED.

                                       69
<PAGE>

                              CLERK'S CERTIFICATE

     I hereby certify that I, Kenneth L. Rice Jr., am the duly elected Secretary
of Pentose Pharmaceuticals, Inc.

     I further certify that the following is the duly elected officer of Pentose
Pharmaceuticals, Inc. authorized to execute the lease by and between Pentose
Pharmaceuticals, Inc. and Coolidge Partners, LLC for the real property located
at 134 Coolidge Avenue, Watertown, MA.

________________________________                ______________________________
Name                                            Title

Witness my hand this fifth day of August, 1999.

________________________________
Secretary

                                       70<PAGE>

                                                                    EXHIBIT 10.6

                         LICENSE AND OPTION AGREEMENT

     LICENSE AND OPTION AGREEMENT (the "Agreement"), dated as of December 10,
1997 (the "Effective Date"), between SARNOFF CORPORATION, a New Jersey
corporation having its offices at 201 Washington Road, Princeton, New Jersey
08543 ("Sarnoff"), and ORCHID BIOCOMPUTER, INC., a Delaware corporation having
its offices at 201 Washington Road, Princeton, New Jersey 08543 ("Orchid").

     WHEREAS, Sarnoff is (and will be) the owner or licensee of rights in
certain existing and future Intellectual Property and certain Patent Rights
relating thereto.

     WHEREAS, Sarnoff is willing to grant to Orchid and Orchid desires to
acquire from Sarnoff, certain rights under such Intellectual Property and Patent
Rights for the purpose of allowing Orchid to research, develop, manufacture,
market, sell, import, lease and/or deliver, within the Orchid Field, Products
and Services.

     NOW, THEREFORE, in consideration of the mutual covenants set forth herein
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Sarnoff and Orchid, intending to be legally
bound, hereby agree as follows:

1.   Definitions.

     As used herein, capitalized terms shall have the respective meanings set
forth below:

     1.1. "Affiliate" means any corporation, firm, limited liability company,
partnership or other entity which directly or indirectly controls or is
controlled by or is under common control with a party to this Agreement.
"Control" means ownership of, or the ability to vote, directly or through one or
more Affiliates, fifty percent (50%) or more of the shares of stock entitled to
vote for the election of directors, in the case of a corporation, or fifty
percent (50%) or more of the equity interests in the case of any limited
liability company or other type of legal entity, status as a general partner in
any partnership, or any other arrangement whereby a party controls or has the
right to control the board of directors or equivalent governing body of a
corporation or other entity. Notwithstanding the foregoing, Sarnoff and SRI and
companies controlled by Sarnoff and SRI shall not be deemed to be Affiliates of
Orchid, and Orchid shall not be deemed to be an Affiliate of such entities for
purposes of this Agreement.

     1.2  "Ancillary Device" shall mean a detector or other device (but not a
Storage Device or Input/Output Device) that is specifically designed by Sarnoff
to interface with a Chip,
<PAGE>

Storage Device or Input/Output Device to the extent such detector or other
devices are incorporated in Delivered Chips and Instruments. Ancillary Devices
shall not include (without upper or lower limitations as to size or volume), (i)
generic robotic fluid delivery systems, (ii) transport through synthetic or
natural membranes, tubes or capillaries except when part of a Chip or
Input/Output Device, (iii) conventional, non-electrokinetic fluid pumping or
valving technology except when part of a Chip or Input/Output Device and (iv) 3D
microimaging and modeling.

     1.3.  "Chip" shall mean a microfabricated flat structure device in one or
more layers having a plurality of Microchannels or Microchannels and
Microchambers in the form of (A) arrays (containing at least (i) six (6)
Microchambers or (ii) two Circuits, each of which contains at least one Active
Element), or (B) at least one Circuit containing at least three (3) serially
connected Elements, at least one of which is an Active Element, to carry out or
enable synthesis, reactions, assays, analyses or sample preparation by
transporting or retaining aqueous or organic fluids that are solvents,
solutions, mixtures or suspensions, including those containing chemicals,
particles, membranes, membrane fragments, cells, cell components or other
biologically derived substances. "Microchannels" shall mean enclosed channels
having a cross section at least 10 microns by 10 microns and no more than 2
millimeters by 2 millimeters. "Microchambers" shall mean chambers having a
volume of at least 10 picoliters and no more than 10 microliters.

     1.4.  "Circuit" shall mean a combination of at least two (2) Elements.

     1.5.  "Combinatorial Chemistry" shall mean the synthesis of one or more
compounds as part of a process to create compounds or resynthesize known
compounds, where such compounds are to be used in clinical applications or in
the discovery, development, testing or optimization of molecules, materials, or
compounds, or mixtures thereof.

     1.6.  "Confidential Information" shall mean all proprietary confidential
technology disclosed by Sarnoff to Orchid or by Orchid to Sarnoff during the
term of this Agreement. For the purposes of this Agreement, Research Technology
shall be deemed Confidential Information of both Orchid and Sarnoff.

     1.7.  "Covered By" shall mean, with respect to any act, an act that would,
in the absence of a license provided hereunder, constitute an infringement of a
claim of a pending patent application, or a claim of an issued patent which has
not been held invalid or unenforceable by a court of competent jurisdiction in a
decision which is unappealable or the appeal period for which has expired
without an appeal being taken.

     1.8.  "Delivered Chips and Instruments" shall mean Chips and/or related
instruments based on the design of the Chips and related instruments that are
(i) delivered by Sarnoff under a Funded Research Program, (ii) delivered by
Sarnoff to SB under the SB Agreement, or (iii) delivered by Sarnoff to the
Government under NIST Control No. 7ONANB5HlO37 prior to June 30, 1997, or under
DARPA Control No. N66001-96-8630 prior to June 30, 1999.

     1.9  "Dynal Agreements" shall mean the proposed Joint Venture Master
Agreement between Orchid and Dynal, Inc. ("Dynal"), as executed, and the
agreements between Orchid and Dynal entered into pursuant thereto, pertaining to
the creation of a joint venture to combine

                                       2
<PAGE>

Orchid's chip technology and Dynal's bead technology to create "Cassettes" for
use in the h-vitro Diagnostic Field.

     1.10.  "Elements" shall mean any pump, Microchannel or Microchamber.  An
Element is "Active" if it is a pump or a Microchannel or a Microchamber in which
a chemical or binding reaction or physical separation by fractionation or
differentiation of various constituents within a sample by such parameters as
molecular size, binding affinity, charge or other physical properties occurs.
An Element is "Passive" if it is not Active, including without limitation,
Microchambers or Microchannels for storage, transport, analyses other than by
chemical or binding reaction, or division of a sample into multiple samples or
streams into multiple streams.

     1.11.  "Environmental Testing" shall mean the determination of the presence
or effect of molecular analytes, chemicals, microbes (including, without
limitation, viruses and bacteria), parasites or other harmful elements in the
environment utilizing nucleic acid-based analyses, immunoassays or functional
assays involving cells, cellular components or extra- or intra-cellular
interactions.

     1.12.  "Force Majeure" shall mean any act of God, any accident, explosion,
fire, storm, earthquake, flood, drought, peril of the sea, riot, embargo, war or
foreign, federal, state or municipal order of general application, seizure,
requisition or allocation, any failure or delay of transportation, shortage of
or inability to obtain supplies, equipment, fuel or labor or any other
circumstances or event beyond the reasonable control of the party relying upon
such circumstance or event.

     1.13. "Funded Research Program" shall mean the research or development
activities under a research agreement for an Option Field in which, considering
each Option Field separately, Orchid or its designee reasonably acceptable to
Sarnoff agrees to (a) fund at least $9 million to Sarnoff in research funding
over a period lasting up to three (3) years and a minimum of $3 million for each
year after the first three years with a minimum first year funding of $1.75
million to undertake research or development activities in such Option Field, or
(b) pay an option exercise fee determined by the formula set forth below to
Sarnoff and fund at least $4.5 million to Sarnoff in research funding over a
period lasting up to three years, which shall commence within one year after the
exercise of the Option. The option exercise fee shall be calculated as follows:

      F = ((R - X)/M) times FF

where F = the prorated option exercise fee;

      R = $9 million;

      X = the level of research funding to be provided to Sarnoff over the first
          three years;

      M = $4.5 million; and

      FF= $1 million.

                                       3
<PAGE>

     1.14.  "Input/Output Device" shall mean fluidic transport, fluid transfer
or fluid connection means which is specifically designed to bring a fluid to a
Chip or Storage Device or remove a fluid from a Chip or a Storage Device.

     1.15.  "Intellectual Property" shall mean proprietary technical or other
information, know-how, data, materials, devices, systems, software, trade
secrets, processes or formulations, and any and all Patent Rights thereon.

     1.16. "In-vitro Diagnostic Field" shall mean the use of a Chip to undertake
any medical or clinical assessment of the health or physical condition of a
human or animal, or the assessment of the condition of a plant, when such
assessment is performed outside the body of the human, animal or plant and
environmental or food testing where testing is for the presence of microbes or
cellular components such as nucleic acids, proteins or toxins. Such assessment
includes, but is not limited to, the testing of body tissue, fluids, or cells;
nucleic acid analysis; immunological analysis; therapy monitoring;
predisposition analysis; viral analysis; microbiological analysis; therapeutic
or abused drug analysis; and chemical analysis of tissue, fluids or cells.
Without limiting the generality of the foregoing, the In-vitro Diagnostic Field
does not include the use of a Chip for the purpose of discovering, developing,
manufacturing, using and selling pharmaceutical products, but does include the
use of Chips for Environmental Testing.

     1.17.  "Licensed Technology" shall mean: (a) Intellectual Property licensed
or developed under the SB Agreement including Intellectual Property funded by
such agreements, but developed prior to August 30, 1995 and listed on Schedule
A; (b) Intellectual Property embodied in the deliverable "Chips" and
"Instruments" as defined in and developed under the SB Agreement; (c)
Intellectual Property (i) developed under NIST Contract No. 7ONANB5H 1037
through June 30, 1997, (ii) developed under DARPA Contract No. N66001-96-8630
through June 30, 1999, and listed on Schedule A and (iii) certain Intellectual
Property claiming technology relating to Chips developed by Sarnoff on or before
August 30, 1995 and listed on Schedule A, (d) Research Technology, (e)
Intellectual Property incorporated in devices or systems as part of a Funded
Research Program and (f) subject to any of Sarnoff's present or future third
party arrangements, Intellectual Property directed to Chips, Storage Devices and
Input/ Output Devices developed by Sarnoff and its wholly-owned subsidiaries
during the Option Period or during the term of any and all Funded Research
Programs at Sarnoff, and/or the research program under the SB Agreement, but
outside such programs and incorporated by Orchid into a Chip or a system
incorporating a Chip during the Option Period, or during the term of any and all
Funded Research Programs at Sarnoff, or the research program under the SB
Agreement and (g) Joint Inventions and Joint Patent Rights as defined in Section
2.6. Specifically excluded from Licensed Technology is the Intellectual Property
developed under DARPA Contract DABT63-95-C-0057 3D entitled "3D Microimaging".
Licensed Technology shall not include rights to general purpose electrical,
electronic, optical, electro-optical, mechanical or electro-mechanical
inventions.

     1.18.  "Life Science Field" means the Orchid Field, the Option Fields and
the use of Chips in the fields of the biological sciences, human healthcare,
animal healthcare or agriculture.

     1.19. "Net Sales" shall mean the amount billed or invoiced on sales of all
Products or Services by Orchid, its Affiliates or sublicensees less: (a) trade,
quantity or cash discounts and non-affiliated brokers' or agents' commissions
actually allowed and taken; (b) amounts repaid or credited by reason of
rejection or return; (c) taxes and duties levied on and/or other governmental
charges made as to production, sale, transportation, importation, delivery or
use and paid by or on behalf of Orchid; and/or (d) shipping and insurance
charges. In the event a Product consists of a system which incorporates
substantial elements which are not Chips, Input/Output Devices, Storage Devices,
Ancillary Devices or other components or software which employ Licensed
Technology licensed to Orchid under Section 2.1 (for example computers or
separate sample preparation devices), Net Sales for such product shall be
determined by multiplying Net Sales for the entire system by a fraction, the
numerator of which is the fair market value of the Chips, Input/Output Devices
or Storage Devices, Ancillary Devices or other components or software which
employ Licensed Technology licensed to Orchid under Section 2.1 in the system
and the denominator of which is the Net Sales for the entire system. Any sales,
leases or transfers between or among Orchid, its Affiliates or sublicensees
shall not be treated as Net Sales unless there is no further sale, lease or
transfer to a third party.

                                       4
<PAGE>

     1.20.  "Non-Exclusive Licensed Technology" shall mean general purpose
electrical, electronic, optical, electro-optical, mechanical or electro-
mechanical inventions and devices to the extent such inventions and devices are
incorporated in Delivered Chips and Instruments, but not otherwise.

     1.21.  "Option Field(s)" shall mean the use of Chips in:

     (a) Genomics, that is, nucleic acid-based analysis for discovery or
development of human and animal pharmaceuticals or agricultural chemicals to
treat plant diseases and pests and for the discovery of plant genes for the
purpose of modifying plant traits;

     (b) Non-nucleic acid-based and non-cell based analyses for high throughout
screening, that is for discovering and developing human and animal
pharmaceuticals and agricultural chemicals to treat plant diseases and pests;

     (c) Analysis and synthesis Research Products for use in the Life Sciences
and in chemistry and materials research; and

     (d) Cell-based assays for lead discovery, lead optimization and
pharmaceutical development, including assays for drug metabolism,
pharmacokinetics, toxicology and bioavailability.

     1.22.  "Option Period" means that period during which any Option exists as
defined in Section 2.3.

     1.23.  "Orchadyne" means Orchadyne, LLC, the limited liability company
created pursuant to the Dynal Agreements.

     1.24. "Orchid Field" shall mean (a) the use of Chips to carry out
Combinatorial Chemistry for the purpose of discovering human, animal or plant
pharmaceuticals, herbicides or pesticides, (b) the In-vitro Diagnostic Field,
and (c) all Option Fields for which Orchid has exercised its Option hereunder as
provided in Section 2.3 and has an exclusive license.

                                       5
<PAGE>

     1.25.  "Owned or Controlled" shall mean Intellectual Property which Sarnoff
owns, or under which Sarnoff is licensed and has the right to grant sublicenses
and/or grant immunity from suit. Intellectual Property "Owned or Controlled" as
of a certain date includes Intellectual Property first invented on or prior to
such date, and shall include all related patent applications and patents or
other intellectual property rights issuing thereon, whenever filed or obtained.

     1.26.  "Parties" means Sarnoff and Orchid.

     1.27.  "Partner" shall mean SB, Dynal, Orchadyne or any other Person with
whom Orchid shall have a written research and/or development agreement or other
collaborative arrangement whereby Orchid receives (a) ownership rights or
license rights in products or services based on or resulting from such research
and/or development, (b) royalty payments based on the sales of such products or
services, or (c) supply rights for such products.

     1.28.  "Party" means Sarnoff or Orchid.

     1.29.  "Patent Rights" shall mean rights (including, ,without limitation,
rights as licensee) Owned or Controlled, subject to Section 2.1.6 hereof, by
Sarnoff under (a) issued U.S. and foreign patents, (b) U.S. or foreign patent
applications, including any patent application constituting an equivalent,
counterpart, reissue, extension or continuation of any of the foregoing
applications (including, without limitation, a continuation in part or
divisional application), or (c) any patent issued or issuing upon any of the
foregoing applications.  A list of Patent Rights included in Licensed Technology
as of the date of this Agreement is attached hereto as Schedule A.

     1.30.  "Person" shall mean any individual, partnership, limited liability
company, corporation, firm, association, unincorporated organization, joint
venture, trust or other entity.

     1.31.  "Product" shall mean a Chip or a system incorporating a Chip with or
without Storage Devices, Input/Output Devices or Ancillary Devices developed
using, incorporating, utilizing, manufactured using, based upon, arising out of,
or derived from the Licensed Technology.

     1.32. "Research Products" shall mean standardized instruments or devices
and related consumables designed for sale in the open market in the ordinary
course of business without substantial specialized modification for each
customer and intended to be used in vitro in a research laboratory environment.
Research Products shall not include instruments for diagnostics, clinical,
investigational or therapeutic uses requiring notification to or approval from
any regulatory or governmental body or general purpose devices not related
specifically to the subject of the research (e.g., computers).

     1.33.  "Research Technology" shall mean Intellectual Property developed by
Sarnoff in Funded Research Programs.

     1.34.  "SB Agreement" shall mean the Development and License Agreement
executed by and among Orchid, Sarnoff and SmithKline Beecham PLC/SmithKline
Beecham Corporation as of August 30, 1995, as amended.

                                       6
<PAGE>

     1.35.  "Services" shall mean the performance of services for a fee
utilizing a Product, but shall not include performance of research or
development services.

     1.36.  "SmithKline Beecham" or "SB" shall mean SmithKline Beecham
PLC/SmithKline Beecham Corporation.

     1.37.  "SRr" shall mean SRI International, a California not for profit
corporation having its principal offices at 333 Ravenswood Avenue, Menlo Park,
CA 94025.

     1.38.  "Storage Device" shall mean a microfabricated flat structure device
containing Microchambers, but not Microchannels or other Elements, that is
either (i) specifically designed for interacting with or connecting to a Chip or
(ii) broadly useful with Chips and other devices or primarily designed to be
interfaced with micropipetting systems. A Storage Device of the type described
in clause (i) is referenced to herein as a Type 1 Storage Device. A Storage
Device described in clause (ii) is referred to herein as a Type 2 Storage
Device.

     1.39.  "Valid Claim" shall mean an unexpired claim of (i) any issued patent
which has not been finally declared invalid or unenforceable by a patent office
or by a court or other body of competent jurisdiction in any unappealed or
unappealable decision and which has not been lost through an interference or
opposition proceeding or (ii) any pending patent application which has not been
finally rejected by a patent office of competent jurisdiction in any unappealed
or unappealable decision and which has not been pending for more than four (4)
years.

2.   Grant of Rights.

     2.1.   Licenses to Orchid.

            2.1.1.  Exclusive Rights. Subject to the terms and conditions of
this Agreement, Sarnoff hereby grants to Orchid an exclusive, worldwide, right
and license under the Licensed Technology, with the right to sublicense, to
develop, have developed, make, have made, use, have used, import, have imported,
offer for sale, sell, have sold or lease, any Products, Storage Devices and/or
Input/Output Devices for Type 1 Storage Devices and Chips and/or to provide any
Services in the Orchid Field, provided, however, that with respect to Type 2
Storage Devices and Input/Output Devices for Type 1 Storage Devices, such
License shall only be exclusive for Licensed Technology described in clauses
(a)-(e) and (g) of Section 1.17 and further provided however with respect to the
exercised Option of the Option Field of Section 1.2 1(c), the license shall be
exclusive for the Life Science Field and non-exclusive for materials and
chemical research. In addition, the license granted under this Section 2.1.1
with regard to Ancillary Devices shall be limited to the designs of the
Ancillary Devices in the Delivered Chips and Instruments and shall include the
right to modify such designs using Orchid or third party Intellectual Property.

            2.1.2.  Non-Exclusive Rights.

                    2.1.2.1  Subject to the terms and conditions of this
Agreement, Sarnoff hereby grants to Orchid a non-exclusive, worldwide, right and
license under the Licensed Technology, with the right to sublicense, to develop,
have developed, make, have made, use,

                                       7
<PAGE>

have used, import, have imported, offer for sale, sell have sold or lease (a)
any Products, Storage Devices and Input/ Output Devices and provide any Services
(i) in those Option Fields for which Orchid has not exercised its Option
hereunder as provided in Section 2.3, and (ii) which use Chips to carry out
Combinatorial Chemistry for purposes not included in the Orchid Field provided
however that such license under this Section 2.1.2.1 (ii) outside the Life
Science Field shall be limited to use for industrial materials and chemicals and
shall be limited to Licensed Technology under Section 1.1 7(a)-(e) and (g).
However, the license granted under this Section 2.1.2.1 with regard to Ancillary
Devices shall be limited to the designs of the Ancillary Devices in the
Delivered Chips and Instruments and shall include the right to modify such
designs using Orchid or third party Intellectual Property. The licenses granted
pursuant to this Section 2.1.2 shall in no way be deemed to limit the scope of
any exclusive license granted pursuant to Section 2.1.1.

                    2.1.2.2  Subject to the terms and conditions of this
Agreement, Sarnoff hereby grants to Orchid a non-exclusive, worldwide, right and
license under Non-Exclusive Licensed Technology, with the right to sublicense,
to develop, have developed, make, have made, use, have used, import, have
imported, offer for sale, sell, have sold or lease any Products, Storage Devices
and Input/Output Devices and provide any Services (i) in the Orchid Field and in
those Option Fields for which Orchid has not exercised its Option hereunder as
provided in Section 2.3, and (ii) which use Chips to carry out Combinatorial
Chemistry for purposes not included in the Orchid Field to the extent such uses
of Chips is licensed under Section 2.1.2.1.

                    2.1.2.3  Subject to the terms and conditions of this
Agreement, Sarnoff hereby grants to Orchid a non-exclusive, worldwide, right and
license under LicensedTechnology, with the right to sublicense, to develop, have
developed, make, have made, use, have used, import, have imported, offer for
sale, sell, have sold or lease Input/ Output Devices for Type 2 Storage Devices
in the Orchid Field.

            2.1.3.  Bead Handling. Sarnoff and Orchid shall negotiate in good
faith regarding a license upon commercially reasonable, mutually agreeable terms
to develop, have developed, make, have made, use, have used, import, have
imported, offer for sale, sell, have sold or lease any instrument based on the
bead handling technology to be developed by Sarnoff in a program funded by or in
collaboration with Orchid and useful in connection with Chips. The license will
be governed by a separate agreement which will cover the scope of the license,
field of use, statement of work to be performed by Sarnoff, the specifications
and drawings of the bead handling instrument and all other terms. No license is
granted to Orchid for such bead handling instruments by this Agreement.

            2.1.4.  Additional Licenses. In addition to the Options set forth in
Section 2.3, at Orchid's request Sarnoff will negotiate in good faith with
Orchid at any time for the terms and conditions of an exclusive license in one
or more Option Fields which are not the subject of a current or past Funded
Research Program.

            2.1.5.  Restrictions on Licenses. All licenses granted to Orchid
hereunder and all restrictions under Section 2.2. are subject to (a) a non-
exclusive, worldwide, royalty-free license which the U.S. Government may retain
under any Intellectual Property whose development was funded by the U.S.
Government, (b) a worldwide, non-exclusive, royalty-free license to Sarnoff

                                       8
<PAGE>

and the U.S. Government to permit Sarnoff to engage in research. or .
development contracts or to prepare prototypes for the U.S. Government, and (c)
any rights previously granted to SmithKline Beecham under the SB Agreement.
Notwithstanding anything to the contrary in this Agreement, no licenses are
granted to Orchid under this Agreement to make, have made, use, sell, offer for
sale, lease or import (except as Ancillary Devices otherwise permitted
hereunder) printers, cameras, imaging systems or displays which employ Chips,
and materials for use with any of the foregoing.

            2.1.6.  Third-Party Technology. In the event that Sarnoff has
licensed from a third party any of the Licensed Technology, Sarnoff's license to
Orchid of such Licensed Technology is granted hereby to the extent that, and for
as long as, Sarnoff can provide such rights and subject to any royalty
obligations as hereinafter provided. Orchid shall be provided with timely notice
of the terms of any such license under which such sublicense is granted, and
Orchid may choose to accept or not accept such sublicense. To the extent that
the sale or other action by Orchid or its permitted sublicensees of Products or
Services would give rise to a royalty or other payment obligation by Sarnoff
under any license under which Orchid accepts a sublicense, Orchid shall pay and
require its sublicensees to pay such amount to Sarnoff or directly to the third
party if so requested by Sarnoff.

            2.1.7.  Algorithms.  Except as included in Licensed Technology,
access by Orchid to algorithms for data mining and for informatics is not
included in the licenses granted herein, but may be the subject of a separate
agreement, subject to any Sarnoff agreements with third parties.

            2.1.8.  Tangible Results.  All tangible instruments, devices,
prototypes or components thereof which are produced in Funded Research Programs
at Sarnoff funded by Orchid shall be owned by Orchid and delivered to Orchid no
later than upon completion of the relevant Funded Research Program.  Orchid
shall have the right to use and to reproduce all such instruments, devices,
prototypes or components under the terms of this Agreement.

     2.2.   Restrictions on Sarnoff's Other Businesses. Nothing in this
Agreement shall be interpreted to preclude Sarnoff or any of its subsidiaries or
licensees or sublicensees from engaging in their businesses; provided that
nothing in this Section 2.2 shall limit the exclusive grant to Orchid under
Section 2.1. Notwithstanding the foregoing, during the Option Period and the
duration of any Funded Research Program and for a period of ninety (90) days
after the last to terminate of the Funded Research Programs, Sarnoff and its
wholly-owned subsidiaries shall not:

     (a)    collaborate with or enter into any agreement to provide research
services or grant any license to any commercial third party for (i) designing or
modifying Chips or Input/ Output Devices for Chips for use in the Orchid Field
or any Option Field in which the Option continues to be in effect, (ii)
designing or modifying Type I Storage Devices or Input/ Output Devices for Type
1 Storage Devices that are customized or designed by Sarnoff for use with Chips
in the Orchid Field or any Option Field in which the Option continues to be in
effect, or (iii) designing or modifying Ancillary Devices, whether or not
incorporated in Delivered Chips and Instruments, that are designed or customized
by Sarnoff in collaboration with the third party while Sarnoff itself is in
possession of the third party's Chips as part of a joint effort to design or

                                       9
<PAGE>

optimize a system that includes Chips for use in the Orchid Field or any Option
Field in which the Option continues to be in effect; or

     (b)    sell products which contain Chips, Type 1 Storage Devices,
Input/Output Devices for Chips or Type 1 Storage Devices to any commercial third
party for use in the Orchid Field or any Option Field in which the Option
continues to be in effect.

The foregoing:

     (w)    shall not prevent Sarnoff or any of its subsidiaries from providing
services related to, or from developing, licensing or selling printers, cameras,
imaging systems or displays including but not limited to those which employ
Chips therein so long as they are not Ancillary Devices exclusively licensed to
Orchid or designed or customized in violation of 2.2(i)(a)(iii);

     (x)    shall not prevent Sarnoff or any of its subsidiaries from providing
services related to, or from developing, licensing or selling (a) Type 2 Storage
Devices, or (b) Ancillary Devices, Type 1 Storage Devices or Input/ Output
Devices for use outside the Orchid Field and any Option Field in which the
Option continues to be in effect or from developing, licensing or selling
products of general applicability which may be useful in the Orchid Field and
the Option Fields in which the Option continues to be in effect as long as such
products are not specifically designed or modified for use with Chips, Type 1
Storage Devices, or Input/ Output Devices for Chips or Type 1 Storage Devices,

     (y)    shall not require Sarnoff to prevent purchasers of such Ancillary
Devices, Storage Devices or Input/ Output Devices from using such Ancillary
Devices, StorageDevices or Input/ Output Devices in the Orchid Field and any
Option Field in which the Option continues to be in effect, and

     (z)    shall not require Sarnoff to prevent parties with whom Sarnoff
collaborates or provides research services or to whom Sarnoff grants any license
from modifying, for use in the Orchid Field or any Option Field in which the
Option remains in effect, products developed or licensed to them by Sarnoff, as
long as Sarnoff or its wholly-owned subsidiaries do not contribute to the
modification.

            2.2.1  Notwithstanding anything to the contrary in this Agreement,
this Agreement shall not be construed as any limitation or restriction on
Sarnoff's dry powder technology or on Sarnoff's right to grant any license to a
third party for its dry powder technology or its ability to apply or employ, or
collaborate with others to apply or employ, its dry powder technology for any
purpose.

     2.3.   Option to Orchid.

     Subject to the terms and conditions of this Agreement, Sarnoff hereby
grants Orchid the exclusive option to include one or more Option Fields in the
Orchid Field and to receive exclusive licenses in such Option Field(s) as
specified in Section 2.1 above (the "Option") as follows:

                                       10
<PAGE>

            2.3.1.  Option Exercise.  Any Option with respect to an Option Field
hereunder may be exercised by Orchid upon written notice and by timely entering
into an agreement for a Funded Research Program with Sarnoff relating to any
such Option Field during the Term of the Option as set forth below and upon
payment of the consideration as specified in Section 3.2 hereof

            2.3.2.  Term of Option.  The Option(s) set forth in this Section 2.3
shall continue for a period of four (4) years unless extended or sooner
terminated as provided below (the "Option Period"). In order to maintain Options
to all remaining unexercised Option Fields during the Option Period, upon each
anniversary of the Effective Date, Orchid shall be required to have entered into
at least one Funded Research Program agreement in one new Option Field for each
year that has elapsed since the Effective Date. Notwithstanding the foregoing,
in the event Orchid has exercised at least three (3) Options during the Option
Period, then the Option Period for the remaining Option may be extended at
Orchid's sole discretion for up three additional years upon payment of an Option
Extension Fee of $200,000 per remaining Option Field per year.

            2.3.3.  Loss of Option Rights.  Except as otherwise provided above,
if upon any anniversary of the Effective Date, Orchid shall have failed to
exercise at least one Option per year as set forth in Section 2.3.2 above,
Orchid shall lose rights to one of the remaining unexercised Option Fields. For
any two-year period during which Orchid has failed to exercise rights to at
least one Option Field, Orchid shall lose the rights to two of the remaining
unexercised Option Fields. Upon the occurrence of any such event, Orchid shall
have sixty (60) days in which to elect the Option Field or Fields to be removed
from its Option rights hereunder. If Orchid makes no such election, Sarnoff may,
within sixty (60) additional days, elect the Option Field(s) to be removed by
notice to Orchid. For any three-year period during which Orchid has failed to
exercise rights to at least one Option Field, Orchid shall lose the rights to
all of the remaining unexercised Option Fields. Failure by Orchid to comply with
the provisions of Section 3.2 or to fully fund and make payment for a Funded
Research Program in accordance with the agreement executed pursuant to Section
2.3.1 shall give Sarnoff the right to terminate this license in accordance with
the provisions of Section 7.2 for the corresponding Option Field.

            2.3.4.  Extension of Funded Research Programs.  Orchid shall have
the right to extend any Funded Research Program or to fund additional related
research at Sarnoff at Orchid's request upon reasonable terms to be negotiated
in good faith. Such extensions may include funding for the transfer of Licensed
Technology to the Combinatorial Chemistry Field, the In-vitro Diagnostic Field
or any other Option Field for which Orchid has an exclusive license hereunder.

            2.3.5.  Technology Audits.  Upon termination or expiration of each
Funded Research Program, Sarnoff and Orchid shall, within 90 days of such
termination or expiration, meet in good faith to compile a detailed list of all
Licensed Technology invented, or developed during the course of such Funded
Research Program or incorporated in devices or systems as part of such Funded
Research Program. Such list shall be mutually agreed between the parties and
appended to this Agreement as a description of the Licensed Technology
attributable to such Funded Research Program and licensed hereunder as Research
Technology. Sarnoff will provide reasonable assistance to Orchid to transfer all
of such Licensed Technology to Orchid.

                                       11
<PAGE>

     2.4.   No Waiver of Rights.  Notwithstanding any provision of this
Agreement, (a) the failure by Orchid to exercise any Option hereunder shall not
in any way affect any exclusive licenses granted to Orchid herein or any
licenses subsequently granted to Orchid by Sarnoff, and (b) the scope of any
licenses granted to Orchid in the SB Agreement shall not be limited or affected
in any way by this Agreement.

     2.5.   Provision of Services. For the duration of the Option Period, in
order to facilitate agreements with Partners for Funded Research Programs, in
connection with the licenses and rights granted herein to Orchid, Sarnoff agrees
to provide reasonable assistance to Orchid in the area of business development
in the Orchid Field and any available Option Fields as requested by Orchid.

     2.6.   Rights to Jointly Developed Inventions.

            2.6.1.  Joint Inventions Jointly Owned.  All right, title and
interest to any inventions or improvements within or outside the Orchid Field
jointly invented by the Parties prior to or during the term of this Agreement
shall be the joint property of the Parties ("Joint Inventions") unless otherwise
agreed in writing, and any resulting Patent Rights ("Joint Patent Rights") shall
be jointly owned.

            2.6.2.  Restrictions on Licensing Joint Inventions.  Unless
otherwise agreed in writing, without the prior written consent of Sarnoff,
Orchid shall not grant a license or other right to any third party to use or
practice outside the Orchid Field and those Option Fields for which Orchid has
not exercised its Option, any Joint Invention or Joint Patent Right, or to
develop, have developed, make, have made, use, have used, offer to sell, sell,
have sold, import, have imported, lease, or otherwise distribute any products or
deliver any services outside the Orchid Field Covered By Joint Patent Rights.
Unless otherwise agreed in writing, without the prior written consent of Orchid,
Sarnoff shall not grant a license or other right to any third party to use or
practice in the Orchid Field and those Option Fields for which the Orchid Option
has not expired, any Joint Invention or Joint Patent Right, or to develop, have
developed, make, have made, use, have used, offer to sell, sell, have sold,
import, have imported, lease or otherwise distribute any products or deliver any
services, within the Orchid Field Covered By Joint Patent Rights.

            2.6.3   Sarnoff Interest in Joint Inventions.  Sarnoff's interest in
Joint Inventions and Joint Patent Rights shall be deemed to be Licensed
Technology.

     2.7    Grant Back to Sarnoff.  To the extent permitted by present or future
agreements with third parties, Orchid hereby grants to Sarnoff a paid up,
royalty-free, non-exclusive license, with right to sublicense, to all
Intellectual Property relating to Chips, Storage Devices, and Input/ Output
Devices developed by Orchid during the term of the restrictions set forth in
Section 2.2, to develop, have developed, make, have made, use, have used,
import, have imported, offer for sale, sell have sold or lease products and
practice processes outside the Life Science Field. Such license shall survive
the termination or expiration of this Agreement.

                                       12
<PAGE>

3.   Consideration.

     3.1    License Consideration.  In consideration of the licenses and rights
granted herein, Orchid:

     (a)    has previously issued to Sarnoff an aggregate of 79,300 shares of
Common Stock, par value $.001, of Orchid, subject to the terms and conditions
set forth in the Shareholder Common Stock Purchase Agreement dated August 30,
1995 and 670,000 shares of Series A Convertible Preferred Stock, par value
$.001, of Orchid, subject to the terms and conditions set forth in the Series A
Convertible Preferred Stock Purchase Agreement dated August 30, 1995;

     (b)    shall issue to Sarnoff or to Sarnoff's designated employees Eighty
Two Thousand Five Hundred (82,500) shares of Common Stock, par value $.001, of
Orchid and One Hundred Sixty Seven Thousand Five Hundred (167,500) shares of
Series A Convertible Preferred Stock, par value $0.001, of Orchid in
consideration of the license granted hereunder in the In-vitro Diagnostic Field;
and

     (c)    shall pay Sarnoff royalties for Products and Services as set forth
in Section 3.4 and 3.5.

     3.2    Option Consideration.  Upon exercise of an Option with respect to
any Option Field, Orchid shall issue to Sarnoff or its designated employees
33,300 shares of Common Stock, par value $.001, of Orchid and shall issue to
Sarnoff 66,700 shares of Class A Preferred Stock, par value $.001, of Orchid.
Orchid shall also issue to Sarnoff or its designated employees an additional
50,000 shares of Common Stock, par value $.001, of Orchid for each year during
the term of the related Funded Research Program at the end of each funding year.

     3.3    Restrictions and Limits.  All shares of Common Stock or Preferred
Stock issued to Sarnoff pursuant to this Agreement shall contain restrictive
legends as determined by counsel to Orchid to be required under the securities
laws of the United States and the relevant states or any stock subscription
agreement and shall be subject to existing Shareholder Agreements and Charter or
By-Law limitations on transfer.

     3.4    Royalties under Exclusive License.  Except for Products which
incorporate no Licensed Technology other than Developed Technology (as defined
in the SB Agreement), and/or technology developed under the Dynal Agreements or
Services provided using such Products which incorporate no Licensed Technology
other than Developed Technology (as defined in the SB Agreement), and/or
technology developed under the Dynal Agreements, commencing on January 1 of the
calendar year following the date on which the percentage of Orchid stock
represented by the total shares of Series A Convertible Preferred Stock and
Common Stock issued to Sarnoff as set forth in Sections 3.1(a) and (b) and
Section 3.2 (the "Issued Shares"), and regardless of whether or not Sarnoff may
have sold all or a portion of such Issued Shares, drops below 20% of all shares
of capital stock of Orchid then outstanding (calculated by assuming conversion
of all outstanding convertible securities and exercise of all outstanding
warrants) (such January 1 being referred to herein as the "Royalty Commencement
Date"), in consideration of the exclusive licenses granted pursuant to Section
2.1.1 and the non-

                                       13
<PAGE>

exclusive licenses granted pursuant to Section 2.1.2 Orchid shall make payments
to Sarnoff of royalties as follows:

     (a) One and one-half percent (1.5%) of Net Sales by Orchid and its
Affiliates of Products and Services whose discovery, development, testing,
manufacture, use, sale, importation, lease or offer for sale would, but for the
licenses granted hereunder, infringe a Valid Claim of a Patent Right included in
the Licensed Technology which is not a Joint Patent Right and which is
exclusively licensed hereunder, or whose discovery, development, testing,
manufacture, use, sale, importation, lease or offer for sale directly employs or
embodies proprietary Licensed Technology which is not a Joint Invention and
which is exclusively licensed hereunder, provided however that for Products
which incorporate Licensed Technology and either Developed Technology (as
defined in the SB Agreement), or technology developed under the Dynal Agreements
or Services provided using such Products, the royalty rate shall be one percent
(1%) of Net Sales;

     (b) Three fourths of one percent (.75%) of Net Sales by Orchid and its
Affiliates of Products and Services whose discovery, development, testing,
manufacture, use, sale, importation, lease or offer for sale would, but for the
licenses granted hereunder, infringe a Valid Claim of a Joint Patent Right, but
not any other Patent Right, which is included in the Licensed Technology and
which is exclusively licensed hereunder, or whose discovery, development,
testing, manufacture, use, sale, importation, lease or offer for sale directly
employs or embodies only such Licensed Technology which is a Joint Invention and
which is exclusively licensed hereunder;

     (c) for (i) sales by any licensees or sublicensees of Orchid of any such
Products or Services as specified in Section 3.4(a) or (b), and (ii) payments
received by Orchid under a sublicense of exclusive Licensed Technology, Orchid
shall pay Sarnoff ten percent (10%) of any non-refundable amounts received by
Orchid from such licensees or sublicensees, including but not limited to
advanced and minimum royalties, up front and milestone project and licensing
fees (excluding equity investments by licensees or sublicensees and excluding
fees paid to Orchid in any form which are required to be used for research or
other services to be performed by Orchid).

     3.5    Royalties under Non-exclusive License.  In consideration of the non-
exclusive licenses granted pursuant to Section 2.1.2, except for Products which
incorporate no Licensed Technology other than Developed Technology (as defined
in the SB Agreement), and/or technology developed under the Dynal Agreements or
Services provided using such Products which incorporate no Licensed Technology
other than Developed Technology (as defined in the SB Agreement), and/or
technology developed under the Dynal Agreements, Orchid shall make payments to
Sarnoff of royalties without regard to Sarnoff's ownership of Issued Shares as
follows:

     (a) One and one-half percent (1.5%) of Net Sales by Orchid and its
Affiliates of Products and Services whose discovery, development, testing,
manufacture, use, sale, importation, lease or offer for sale would, but for the
licenses granted hereunder, infringe a Valid Claim of a Patent Right included in
the Licensed Technology which is not a Joint Patent Right and which is non-
exclusively licensed hereunder, or whose discovery, development, testing,

                                       14
<PAGE>

manufacture, use, sale, importation, lease or offer for sale directly employs
or embodies proprietary Licensed Technology which is not a Joint Invention and
which is non-exclusively licensed hereunder, provided however that for Products
which incorporate Licensed Technology and either Developed Technology (as
defined in the SB Agreement), or technology developed under the Dynal Agreements
or Services provided using such Products, the royalty rate shall be one percent
(1%) of Net Sales; and

     (b) Three fourths of one percent (.75%) of Net Sales by Orchid and its
Affiliates of Products and Services whose discovery, development, testing,
manufacture, use, sale, importation, lease or offer for sale would, but for the
licenses granted hereunder, infringe a Valid Claim of a Joint Patent Right, but
not any other Patent Right, which is included in the Licensed Technology and
which is non-exclusively licensed hereunder, or whose discovery, development,
testing, manufacture, use, sale, importation, lease or offer for sale directly
employs or embodies only such Licensed Technology which is a Joint Invention and
which is non-exclusively licensed hereunder; and

     (c) for (i) sales by any licensees or sublicensees of Orchid of any such
Products or Services as specified in Section 3.5(a) or (b) and (ii) payments
received by Orchid under a sublicense of non-exclusive Licensed Technology,
Orchid shall pay Sarnoff ten percent (10%) of any non-refundable amounts
received by Orchid from such licensees or sublicensees, including but not
limited to advanced and minimum royalties, up front and milestone project and
licensing fees (excluding equity investments by licensees or sublicensees and
excluding fees paid to Orchid in any form which are required to be used for
research or other services to be performed by Orchid).

     (d) In addition, Orchid shall pay Sarnoff for each Option Field for which
Orchid has a non-exclusive license under Section 2.1.2 on the relevant date the
following minimum royalties for each Option Field: (i) on January 1, 2002,
$50,000 per Option Field, (ii) on January 1, 2003, $100,000 per Option Field,
and (iii) on January 1, 2004 and each subsequent January 1, $200,000 per Option
Field per year. These minimum royalties shall be a credit for royalties to be
paid under Section 3.5(a) on an Option Field-by-Option Field basis for the
calendar year for which the minimum royalty payment is made. For Option Fields
which are exclusively licensed to Orchid, the provisions of Section 3.4 shall
govern and no royalties or fees shall be due pursuant to this Section 3.5. For
Option Fields where Orchid notifies Sarnoff, at least thirty (30) days prior to
the minimum royalty due date, that Orchid does not wish to maintain its non-
exclusive license, no minimum royalty payment shall be due and Orchid shall no
longer have a non-exclusive license for such Option Field.

     3.6  Royalty Reductions. In the event that royalties and fees paid to
Sarnoff pursuant to Section 3.4 or 3.5 shall become a significant factor in the
return realized by Orchid such as to substantially diminish its capability to
respond to competitive pressures in the market, the parties shall mutually agree
on a reasonable reduction in the royalties and fees payable under this Agreement
with respect to the affected Products and Services.  Factors to be considered in
agreeing on the royalty reduction shall include but not be limited to the profit
margin on such

                                       15
<PAGE>

Products and Services and on analogous and/or competitive Products and Services
and prices and expenditures therefor.

     3.7  Royalty Term.  Royalties hereunder shall be payable only until the
expiration of the last to expire of the Patent Rights covering a particular
Product or Service.  Thereafter, Orchid shall have a fully paid up, perpetual
non-exclusive license to all Licensed Technology for such Product or Service.

     3.8  Royalty Reporting Provisions.

     (a)  Orchid agrees to submit to Sarnoff within sixty (60) days after the
calendar quarters ending March 31, June 30, September 30, and December 31 of
each year in which royalties are due hereunder, reports setting forth for the
preceding three (3) month period at least the following information for Orchid,
its Affiliates and sublicensees:

          i)    total billings for Products sold;

          ii)   total billings for all Services provided or sold;

          iii)  deductions applicable to determine the Net Sales thereof;

          iv)   the amount of royalty due thereon; and with each such royalty
                report to pay the amount of royalty due.

     (b)  All such reports shall be maintained in confidence by Sarnoff, except
as required by law.

     (c)  All payments due hereunder shall be payable in United States dollars.
Conversion of foreign currency to U.S. dollars shall be made at the conversion
rate existing in the United States (as reported in The Wall Street Journal) on
the last working day of each royalty period.

     (d)  Any tax paid or required to be withheld by Orchid on account of
royalties payable to Sarnoff under this Agreement shall be deducted from the
amount of royalties otherwise due. Orchid shall secure and send to Sarnoff proof
of any such taxes withheld and paid by Orchid for the benefit of Sarnoff.

     (e)  If governmental regulations prevent remittances from a foreign country
with respect to sales made or fees received in that country, the obligation of
Orchid to pay royalties on such sales and/of fees shall be suspended until such
remittances are permitted. Sarnoff shall have the right, upon giving written
notice to Orchid, to receive payment in such country in local currency.

     3.9  Royalties to Third Parties. In the event Orchid becomes liable to pay
royalties or other amounts to any third party as a result of the sale of any
product or the delivery of any services by Sarnoff or any Affiliate of Sarnoff
under Section 6 of the SB Agreement or otherwise, then Sarnoff shall be liable
for all such royalties or other amounts and shall, at Orchid's option, either
pay such amounts directly to the third party or shall reimburse Orchid for such
royalties or other amounts within thirty (30) days after receipt of an invoice
from Orchid.

                                       16
<PAGE>

     3.10  Royalty Audits. Orchid shall keep complete, true and accurate books
of account and other appropriate records for the purpose of showing the amount
payable to Sarnoff by way of royalty and of cumulative Net Sales and otherwise
showing Orchid's compliance with Section 3 of this Agreement. Said books and the
supporting data and other documentation, including technical information
relevant to the determination of Orchid's obligations hereunder, shall be kept
at Orchid's principal office and maintained for three (3) years following the
end of the calendar year to which they pertain.  Such records, solely to the
extent relevant to the determination of Orchid's obligations under Section 3 of
this Agreement shall be open, upon reasonable notice and at reasonable times
during normal business hours, to the inspection by independent, certified public
accounts (to be selected solely by Sarnoff and reasonably acceptable to Orchid)
at Sarnoff's expense.  However, if a discrepancy of more than five percent (5%)
of royalties due Sarnoff is discovered by the inspection, then the cost of the
inspection shall be performed at Orchid's expense.

4.  Representations and Warranties.

    4.1.  Representations, Warranties and Covenants of Sarnoff. Sarnoff
represents, warrants and covenants to Orchid as follows:

          4.1.1.  Sarnoff is a corporation duly organized, validly existing and
in good standing under the laws of the State of New Jersey with corporate powers
adequate for executing and delivering, and performing its obligations under,
this Agreement;

          4.1.2.  The execution, delivery and performance of this Agreement have
been duly authorized by all necessary corporate action on the part of Sarnoff;

          4.1.3.  This Agreement has been duly executed and delivered by Sarnoff
and is a legal, valid and binding obligation of Sarnoff, enforceable against it
in accordance with its terms;

          4.1.4.  The execution, delivery and performance of this Agreement does
not and will not conflict with or contravene any provision of the charter
documents or bylaws of Sarnoff or any material agreement, document, instrument,
indenture or other obligation of Sarnoff;

          4.1.5.  Sarnoff shall not enter into any agreement, make any
commitment, take any action or fail to take any action that would contravene any
material provision of, or materially derogate or restrict any of the rights and
licenses granted to Orchid under, this Agreement; and

          4.1.6.  Schedule A sets forth a list of all Patent Rights relating to
Licensed Technology Owned or Controlled by Sarnoff as of the Effective Date.  To
the best of Sarnoff's knowledge, all patents listed in Schedule A are valid and
in full force and all applications listed therein as pending have been
prosecuted in good faith as required by law and are in good standing.  To the
best of Sarnoff's knowledge, there has been no infringement by Sarnoff or its
Affiliates with respect to any patent rights of others in the conduct of the
research activities that have resulted in the existing Licensed Technology owned
by Sarnoff.  None of the patents or patent applications listed or described in
Schedule A is involved in any interference or opposition proceeding, and there
has been no written notice received by Sarnoff or any of its Affiliates that any
such proceeding will hereafter be commenced.  Also, included in Schedule A is a
list of all

                                       17
<PAGE>

licenses and license agreements relating to Licensed Technology. To the best of
Sarnoff's knowledge (i) all of the licenses listed or described in Schedule A
are legally valid and binding and in full force and effect, (ii) Sarnoff is not
in default under any such license, and (iii) there are no defaults by any other
party to any such license. None of Sarnoff's rights under any such license will
be impaired by the consummation of the transactions contemplated hereby. Except
for licenses granted under the SB Agreement and except as described in Schedule
A, Sarnoff has not granted any person or entity any right to use any of the
patents or patent applications listed therein in the Orchid Field or the Option
Fields.

           4.1.7.  Sarnoff shall diligently prosecute and maintain all Patent
Rights licensed to Orchid in accordance with the provisions set forth in Section
5.2 and shall not take or fail to take any actions which would impair such
Patent Rights without prior written notice to Orchid as provided in Section
5.2.4.

     4.2.  Representations, Warranties and Covenants of Orchid. Orchid
represents, warrants and covenants to Sarnoff as follows:

          4.2.1.  Orchid is a corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware with corporate powers
adequate for executing and delivering, and performing its obligations under,
this Agreement;

          4.2.2.  The execution, delivery and performance of this Agreement have
been duly authorized by all necessary corporate action on the part of Orchid;

          4.2.3.  This Agreement has been duly executed and delivered by Orchid
and is a legal, valid and binding obligation of Orchid, enforceable against
Orchid in accordance with its terms;

          4.2.4.  The execution, delivery and performance of this Agreement do
not and will not conflict with or contravene any provision of the charter
documents or bylaws of Orchid or any material agreement, document, instrument,
indenture or other obligation of Orchid; and

          4.2.5.  Orchid shall not enter into any agreement, make any
commitment, take any action or fail to take any action that would contravene any
material provisions of, or materially derogate or restrict any of the rights and
licenses granted to, Sarnoff under this Agreement.

5.   Disclosure of Licensed Technology.

     5.1. Documentation and Access.  Upon request by Orchid from time to time,
Sarnoff shall, within a reasonable time thereafter, deliver to Orchid copies of
reasonable documentation describing the Licensed Technology and Sarnoff shall
give access to and use reasonable efforts to keep Orchid apprised of all ongoing
and future Licensed Technology created or acquired by Sarnoff and its Affiliates
and subject to a license or Option to Orchid hereunder. In the event that Orchid
shall have reason to believe that Sarnoff has not complied with the requirements
of this Section 5.1, it shall so notify Sarnoff and Sarnoff shall be given a
reasonable opportunity to cure such non-compliance.

                                       18
<PAGE>

     5.2. Patents.

          5.2.1.  Patent Prosecution.

          Sarnoff shall, by qualified independent patent counsel, prepare, file,
prosecute and maintain patent applications, and maintain and enforce Patent
Rights included in the Licensed Technology in the countries of United States,
Canada, Australia, Europe Patent Office (designating Austria, France, Germany,
Spain, Ireland, Italy, Netherlands, Sweden, Switzerland, United Kingdom), Japan,
and Korea and such other countries as mutually agreed between Orchid and Sarnoff
and shall have all rights to otherwise deal in and to enforce rights associated
with Licensed Technology except as otherwise provided in Section 6.2. Sarnoff
shall provide Orchid with copies of all proposed patent and other applications
and filings and communications and give Orchid the reasonable opportunity to
comment thereon and Sarnoff will consider in good faith any comments provided to
Sarnoff by Orchid prior to filing. Sarnoff agrees to deliver to Orchid copies of
any communications with the applicable patent office, including without
limitation, all office actions and responses, each patent application and
filing, and each registration that issues thereon.

          5.2.2.  Cooperation. Orchid agrees to cause each of its employees and
agents to take all actions and to execute, acknowledge and deliver all
instruments or agreements reasonably requested by Sarnoff, and necessary for the
perfection, maintenance, enforcement or defense of Patent Rights as set forth
above.

          5.2.3. Financing of Costs. Orchid agrees to pay to Sarnoff fifty
percent (50%) of Sarnoff's reasonable out of pocket costs incurred in the
preparation, filing, translation, prosecution, issuance and maintenance of any
such patent applications or patents relating to Licensed Technology except for
Licensed Technology under Section 1.17(f) prepared or filed after the Effective
Date and fifty percent (50%) of the maintenance costs for such Patent Rights
incurred by Sarnoff after the Effective Date, provided that such prosecution is
conducted as set forth in Section 5.2.1 above. If Orchid declines in writing to
pay to Sarnoff its fifty percent (50%) share of the costs of a particular Patent
Right in a particular country, Orchid's license to such Patent Right in such
particular country shall be terminated as of the Due Date. If Orchid fails to
pay to Sarnoff within thirty (30) days from date of receipt of invoice (the "Due
Date"), and such failure continues for a period of 30 days after written notice
to Orchid by Sarnoff of such failure to pay, Orchid's license to such Patent
Right in such particular country shall be terminated as of the Due Date.

          5.2.4.  Election to Discontinue Prosecution.  Sarnoff may, with
respect to the Patent Rights, at any time, in its sole discretion decide that it
desires to discontinue its responsibility for the prosecution or maintenance of
a particular patent application or patent in one or more countries of Patent
Rights which are Licensed Technology under Section 1.17(a), (b), (c), (d), (e)
and (g).  In such event, Sarnoff shall notify Orchid promptly in writing of its
intention to discontinue responsibility for the prosecution or maintenance for
such patent application or patent, and, in any event, shall give such notice at
least sixty (60) days prior to the effective date of such proposed
discontinuance in order to permit Orchid to determine whether it wishes to
assume the responsibility therefor.  Orchid shall have the right and option, but
not the obligation, to assume responsibility for prosecution and maintenance of
such patent or patent

                                       19
<PAGE>

application which Sarnoff desires to discontinue. Orchid shall inform Sarnoff in
writing of its decision to assume responsibility for prosecution and maintenance
of such patent or patent application and Sarnoff shall execute and deliver such
documents and take such actions as are reasonably necessary or appropriate to
effect such assumption and transfer of responsibility in a timely and efficient
manner. In the event Orchid exercises such right, such patent or patent
application shall be assigned to Orchid and removed from operation of this
Agreement; provided that, Sarnoff shall have a royalty free, non-exclusive,
worldwide, right and license under such Licensed Technology with the right to
sublicense, to develop, have developed, make, have made, use, have used, import,
have imported, offer for sale, sell have sold or lease products and practice
processes outside the Orchid Field and the Option Fields so long as the Options
remain in effect and further provided that upon termination of this Agreement,
such patents and patent applications shall be assigned to Sarnoff. However, if
Sarnoff elects to use or sublicense a particular patent in a particular country
assigned by Sarnoff to Orchid under this Section 5.2.4, then Sarnoff shall pay
to Orchid one half of the out of pocket costs expended by Orchid in obtaining
and maintaining the particular patent in the particular country.

     5.3.  Confidential Information.  Any Party receiving or possessing
Confidential Information of the other Party shall use commercially reasonable
efforts to: (i) maintain the confidential and proprietary status of such
Confidential Information; (ii) keep such Confidential Information and each part
thereof within its possession or under its control sufficient to prevent any
activity with respect to the Confidential Information that is not specifically
authorized by this Agreement; (iii) prevent the disclosure of any Confidential
Information to any other Person; and (iv) ensure that such Confidential
Information is used only for those purposes specifically authorized herein;
provided, however, that such restriction shall not apply to any Confidential
Information which is (a) independently developed by the receiving Party without
reference to Confidential Information of the disclosing Party, (b) in the public
domain at the time of its receipt or thereafter becomes part of the public
domain through no fault of the receiving Party, (c) received by the receiving
Party without an obligation of confidentiality from a third party having the
right to disclose such information, (d) released from the restrictions of this
Section 5.3 by the express written consent of the disclosing Party, (e)
disclosed to any actual or prospective permitted assignee, Partner, investor,
licensee, sublicensee or subcontractor of either Sarnoff or Orchid (if such
actual or prospective assignee, Partner, investor, licensee, sublicense or
subcontractor is subject to the provisions of this Section 5.3 or comparable
provisions of other documents), or (f) required by law, statute, rule or court
order to be disclosed (the disclosing party shall, however, use commercially
reasonable efforts to obtain confidential treatment of any such disclosure and
shall notify the other party in writing of the request or requirement as soon as
feasible so that such other party may make timely effort to protect or limit the
conditions of disclosure of its Confidential Information). Without limiting the
generality of the foregoing, Sarnoff and Orchid each shall use its commercially
reasonable efforts to obtain confidentiality agreements from its respective
Partners, investors, licensees, sublicensees, subcontractors employees and
agents, similar in scope to this Section 5.3, to protect the Confidential
Information.

     5.4.  Permitted Disclosures. Notwithstanding the provisions of Section 5.3
hereof, Sarnoff and Orchid may, to the extent necessary, disclose and use
Confidential Information, consistent with the rights of Sarnoff and Orchid
otherwise granted hereunder (a) for the purpose of securing institutional or
government approval to clinically test or market any Product, or (b)

                                       20
<PAGE>

for the purpose of securing patent protection for an invention within the scope
of the Patent Rights. This Agreement and the terms hereof may be disclosed by
either Party only to a third party which executes an agreement requiring such
third party to maintain the confidentiality thereof

6.   Infringement.

     6.1.  Notification of Infringement.  Orchid and Sarnoff each shall notify
the other of any infringement or misappropriation by any Person of any Licensed
Technology rights in the Orchid Field and shall provide the other with the
available evidence, if any, of such infringement.  In such case, the respective
officers of Sarnoff and Orchid shall confer to determine in good faith an
appropriate course of action to enforce the Licensed Technology rights or
otherwise abate the infringement thereof.

     6.2.  Enforcement of Licensed Technology Rights.  If the parties have not
agreed on a course of action pursuant to Section 6.1, then if Orchid determines
that enforcement of the Licensed Technology rights in the Orchid Field is
appropriate, Orchid shall have the right, but not the obligation, at its own
expense, to take appropriate action to enforce such rights; provided, however,
that, if Orchid elects to so act, Sarnoff shall have the right to participate in
the enforcement of such rights by agreeing to bear a percentage of the costs of
such enforcement in such amount as the parties shall determine. All amounts
recovered in any action to enforce rights in Licensed Technology in the Orchid
Field undertaken by Orchid, whether by judgment or settlement, shall be retained
by Orchid after reimbursing the expenses borne by both parties in enforcing such
Licensed Technology rights.  If, within six (6) months after notice of
infringement, Orchid has not commenced action to enforce such rights or
thereafter ceases to diligently pursue such action, Sarnoff shall have the
right, at its expense, to take appropriate action to enforce such rights. Orchid
shall have the right to participate separately in such enforcement. All amounts
recovered in any action to enforce Licensed Technology rights undertaken by
Sarnoff solely at its expense, whether by judgment or settlement, shall be
retained by Sarnoff after reimbursing the expenses borne by both parties in
enforcing such Licensed Technology rights. Sarnoff and Orchid shall fully
cooperate with each other in the planning and execution of any action to enforce
rights. Sarnoff shall not enter into any settlement that includes the grant of a
license under, agreement not to enforce, or any statement prejudicial to the
validity or enforceability of any Licensed Technology in the Orchid Field
without the consent of the Orchid.

     6.3.  Disclaimer of Warranty; Consequential Damages.

           6.3.1.  SARNOFF EXPRESSLY DISCLAIMS ANY WARRANTY, EXPRESS OR IMPLIED,
WITH RESPECT TO THE LICENSED TECHNOLOGY, INCLUDING, W1THOUT LIMITATION, ANY
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

           6.3.2.  NEITHER PARTY TO THIS AGREEMENT SHALL BE ENTITLED TO RECOVER
FROM THE OTHER ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL, MULTIPLE OR PUNITIVE
DAMAGES.

                                       21
<PAGE>

     6.4   Infringement. In the event that an action for patent infringement is
commenced against Orchid and/or its sublicensees, whether severally or jointly,
based on the manufacture, use or sale of any Product or Service in any country,
Orchid may, without limitation: (i) terminate and revert its license hereunder
to such Product or Service in such country, which shall be deemed an abandonment
of such Product or Service in such country, or (ii) defend such action on
behalf, of the appropriate parties at its own expense.

     6.5   Markings. Set forth in Exhibit A is a list of the Patent Rights,
which list shall be updated from time to time by Sarnoff Orchid shall refer to
this list and affix appropriate markings and legends on Products or Services
sold or distributed by or on behalf of Orchid using such Patent Rights.

     6.6   Limitations. Sarnoff makes no representations or warranties that the
rights granted to Orchid pursuant to Section 2.1 hereof may be exercised by
Orchid and its sublicensees without infringing any third party rights in any
country in the world. Sarnoff assumes no responsibility hereunder for the
manufacturing, product specifications, or end-uses of Products or Services by
Orchid or its customers or sublicensees.  No warranties made by Orchid in
connection with its Products or Services shall expressly or implicitly obligate
Sarnoff in any manner.

     6.7   Product Indemnification.  Subject to the provisions of this Section
6.7, Orchid agrees to defend, indemnify and hold harmless Sarnoff from any and
all damages arising from injury or damage to persons or property (including
without limitation, product liability or infringement of any proprietary rights)
resulting directly or indirectly from Orchid's use, development, manufacture,
licensing, marketing, sale or other disposition or any other commercial
exploitation of any Product or Service, except those which result from the gross
negligence or willful misconduct of Sarnoff.  Sarnoff shall promptly notify
Orchid of any claim which is to be indemnified hereunder and Orchid shall have
the sole right to defend, settle or compromise any such action or claim.

     7.    Term and Termination.

     7.1.  Term.  This Agreement shall be effective as of the Effective Date and
shall continue in full force and effect unless terminated by mutual agreement or
as set forth below.

     7.2.  Termination. In the event Orchid fails to make payments due
hereunder, Sarnoff shall have the right to terminate this Agreement upon ninety
(90) days' written notice, unless Orchid makes such payments within the ninety
(90) day notice period or unless any such payment is contested in good faith, in
which event Sarnoff shall not have the right to terminate this Agreement until
the matter is resolved in Sarnoff's favor pursuant to Section 13 hereof and
Orchid still fails to make any such payment for thirty (30) days after such
resolution.

     7.3.  Survival of Sublicenses.  In the event any license granted to Orchid
hereunder terminates for any reason, any sublicenses granted by Orchid under
this Agreement shall continue.

                                       22
<PAGE>

8.   No Implied Waivers; Rights Cumulative.

     The delay or failure of any Party at any time or times to require
performance of any provisions shall in no manner affect the rights at a later
time to enforce the same. No waiver by any Party of any condition or of the
breach of any term contained in this Agreement, whether by conduct, or
otherwise, in any one or more instances, shall be deemed to be, or considered
as, a further or continuing waiver of any such condition or of the breach of
such term or any other term of this Agreement.

9.   Force Majeure.

     Sarnoff and Orchid shall each be excused for any failure or delay in
performing any of its respective obligations under this Agreement, if such
failure or delay is caused by Force Majeure.

10.  Notices.

     All notices, requests and other communications to Sarnoff or Orchid
hereunder shall be in writing (including telecopy or similar electronic
transmissions), shall refer specifically to this Agreement and shall be
personally delivered, by registered mail or certified mail, return receipt
requested, postage prepaid or by reliable overnight courier service providing
evidence of receipt, in each case to the respective address specified below (or
to such address as may be specified in writing to the other party hereto):

     Sarnoff Corporation
     201 Washington Road
     Princeton, NJ 08543
     Attn:  Vice President, IP and Licensing

     With a copy to:

     Allen Bloom, Ph.D., Esq.
     Dechert Price & Rhoads
     Princeton Pike Corporate Center
     Princeton, NJ 08543-5218

     Orchid Biocomputer, Inc.
     201 Washington Road
     Princeton, NJ 08543
     Attn:  President

     With a copy to:

     Jeffrey M. Wiesen, Esq.
     Mintz, Levin, Cohn, Ferris,
     Glovsky and Popeo, P.C.
     One Financial Center
     Boston, MA 02111

                                       23
<PAGE>

     Any notice or communication given in conformity with this Section 12 shall
be deemed to be effective: (i) when received by the addressee, if delivered by
hand; (ii) three (3) days after mailing, if mailed; and (iii) one (1) business
day after delivery to a reliable overnight courier service providing evidence of
receipt.

11.  Successors and Assigns.

     The terms and provisions of this Agreement shall inure to the benefit of,
and be binding upon, Sarnoff, Orchid, and their respective successors and
assigns.

12.  Amendments.

     No amendment, modification, waiver, termination or discharge of any
provision of this Agreement, nor any consent to any departure by Sarnoff or
Orchid therefrom, shall in any event be effective unless the same shall be in
writing specifically identifying this Agreement and the provision intended to be
amended, modified, waived, terminated or discharged and signed by Sarnoff and
Orchid, and each such amendment, modification, waiver, termination or discharge
shall be effective only in the specific instance and for the specific purpose
for which given.  No provision of this Agreement shall be varied, contradicted
or explained by any oral agreement, course of dealing or performance or any
other matter not set forth in an agreement in writing and signed by Sarnoff and
Orchid.

13.  Arbitration

     13.1.  The Parties shall attempt to resolve any dispute or controversy
arising under or relating to the interpretation or meaning of this Agreement by
good faith negotiations. Any matter that cannot be resolved by such good faith
negotiation shall be resolved by final and binding arbitration conducted by
three (3) arbitrators in Princeton, New Jersey, in accordance with the then-
current American Arbitration Association ("AAA") Commercial Arbitration Rules
(the "AAA Rules") as modified by this Section 13.

     13.2.  The arbitrators shall be selected by mutual agreement of the parties
or, failing such agreement, in accordance with the aforesaid AAA Rules.  At
least one (1) of the arbitration panel shall be reasonably familiar with the
industry in which Orchid operates.  The parties shall bear the costs of the
arbitrators equally.

     13.3.  The parties shall have the right of limited pre-hearing discovery,
in accordance with the U.S. Federal Rules of Civil Procedure, as then in effect,
for a period not to exceed sixty (60) days.

     13.4.  As soon as the discovery is concluded, but in any event with thirty
(30) days thereafter, the arbitrators shall hold a hearing in accordance with
the AAA Rules.  Thereafter, the arbitrators shall promptly render a written
decision, together with a written opinion setting forth in reasonable detail the
grounds for such a decision.

     13.5.  Judgment may be entered in any court of competent jurisdiction to
enforce the award entered by the arbitrator.

                                       24
<PAGE>

     13.6.  The duty of the parties to arbitrate any dispute hereunder shall
survive expiration or termination of this Agreement for any reason.

14.  Governing Law.

     This Agreement shall be governed by and construed in accordance with the
laws of the State of New Jersey.

15.  Severability.

     If any provision hereof should be held invalid, illegal or unenforceable in
any respect in any jurisdiction, then, to the fullest extent permitted by law,
(a) all other provisions hereof shall remain in full force and effect in such
jurisdiction and shall be liberally construed in order to carry out the
intentions of the parties hereto as nearly as may be possible and (b) such
invalidity, illegality or unenforceability shall not affect the validity,
legality or enforceability of such provision in any other jurisdiction. To the
extent permitted by applicable law, Sarnoff and Orchid hereby waive any
provision of law that would render any provision hereof prohibited or
unenforceable in any respect.

16.  Headings.

     Headings used herein are for convenience only and shall not in any way
affect the construction of, or be taken into consideration in interpreting, this
Agreement.

17.  Execution in Counterparts.

     This Agreement may be executed in any number of counterparts, each of which
counterparts, when so executed and delivered, shall be deemed to be an original,
and all of which counterparts, taken together, shall constitute one and the same
instrument.

18.  Interpretation.

     The parties hereto acknowledge and agree that (i) each Party and its
counsel reviewed and negotiated the terms and provisions of this Agreement and
have contributed to its revision; (ii) the rule of construction to the effect
that any ambiguities are resolved against the drafting Party shall not be
employed in the interpretation of this agreement; and (iii) the terms and
provisions of this Agreement shall be construed fairly as to all Parties hereto
and not in a favor of or against any Party, regardless of which Party was
generally responsible for the preparation of this Agreement.

19.  Entire Agreement.

     This Agreement, together with any agreements referenced herein,
constitutes, on and as of the date hereof, the entire agreement of Sarnoff and
Orchid with respect to the licensing or transfer of technology from Sarnoff to
Orchid and all prior or contemporaneous understandings or agreements, whether
written or oral, between Sarnoff and Orchid with respect to such subject matter
are hereby superseded in their entirety except for the SB Agreement. In the case
of any conflict between the terms of this Agreement and the SB Agreement, the SB
Agreement shall govern.

                                       25
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this License Agreement
to be duly executed under seal and delivered as of the date first above written.

          SARNOFF CORPORATION

     By: /s/ Carmen A. Catanese, Ph.D.
         ------------------------------
             Carmen A. Catanese, Ph.D.

     Title: Vice President
           ----------------------------

          ORCHID BIOCOMPUTER, INC.

     By: /s/ Dale R. Pfost, Ph.D.
         ------------------------------
             Dale R. Pfost, Ph.D.

     Title: Chief Executive Officer
            and President
            ----------------------------

                                       26
<PAGE>

                               LICENSE AGREEMENT
                                   SCHEDULE A
                             PRESENT PATENT RIGHTS

<TABLE>
<CAPTION>
TITLE                                                     INVENTORS            COUNTRY   DOCKET     STATUS       SERIAL NO.
------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                          <C>        <C>      <C>          <C>
Partitioned Microelectronic And Fluidic Device   Zanzucchi, P.J. Cherukui,    U.S.         11402  PATENT            08/338703
 Array For Clinical Diagnostics And Chemical     S.C. McBride, S.E.
 Synthesis
------------------------------------------------------------------------------------------------------------------------------
Partitioned Microelectronic Device Array         Zanzucchi, P.J. Cherukui,    U.S.       11402A   PATENT            08/455016
                                                 S.C. McBride, S.E., Judd,
                                                 A.K.
------------------------------------------------------------------------------------------------------------------------------
Method of Synthesis of Plurality of Compounds    Zanzucchi, P.J. Cherukui,    U.S.       11402C   PATENT            08/454781
 in Parallel Using a Partitioned Solid Support   S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    U.S.       11402D   PATENT            08/454774
                                                 S.C. McBride, S.E. Judd,
                                                 A.K.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    U.S.       11402G   APPLICATION       08/556036
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    EPO        11402G   APPLICATION      95939862.9
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    EPO          11402  APPLICATION      95940666.1
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A partitioned Microelectronic Device Array       Zanzucchi, P.J Cherukui,     JAPAN        11402  APPLICATION        8-516200
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    SINGAPORE  11402G   APPLICATION       9701983-0
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    SINGAPORE    11402  APPLICATION       9701985-5
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    AUSTRALIA    11402  APPLICATION         4233796
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    AUSTRALIA  11402G   APPLICATION       4,152,396
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    CANADA       11402  APPLICATION         2205066
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    CANADA     11402G   APPLICATION         2204912
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    KOREA        11402  APPLICATION       703200/97
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    JAPAN      11402G   APPLICATION        8-516201
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    KOREA      11402G   APPLICATION  (PCT)703201/97
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    U.S.       11402EA  APPLICATION       08/705058
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array       Zanzucchi, P.J. Cherukui,    U.S.       11402BA  APPLICATION       08/789739
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Immunological Assay Conducted In A               Zanzucchi, P.J. Cherukui,    U.S.       11402FA  APPLICATION       08/914941
 Microlaboratory Array                           S.C. McBride, S.E. Judd,
                                                 A.K.
------------------------------------------------------------------------------------------------------------------------------
System For Liquid Distribution                   Levine, A.W. Cherukui,       U.S.         11637  APPLICATION       08/745767
                                                 S.C. Matey, J.R.
------------------------------------------------------------------------------------------------------------------------------
Apparatus And Methods For Controlling Fluid      Zanzucchi, P.J. McBride,     U.S.         11717  PATENT            08/469238
 Flow In Microchannels                           S.E. Burton, C.A.
                                                 Cherukui, S.C.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     U.S.       11717A   APPLICATION       08/556423
                                                 S.E. Burton C. A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     EPO        11717A   APPLICATION  US95/14586
                                                 S.E., Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     JAPAN      11717A   APPLICATION
                                                 S.E. Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     KOREA      11717A   APPLICATION
                                                 S.E. Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     SINGAPORE  11717A   APPLICATION  US95/14586
                                                 S.E. Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     AUSTRALIA  11717A   APPLICATION        95/14586
                                                 S.E. Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     CANADA     11717A   APPLICATION  US95/14586
                                                 S.E. Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     U.S.       11717B   APPLICATION       08/645966
                                                 S.E. Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Electrokinetic Pumping                           Zanzucchi, P.J. McBride,     PCT        11717B   APPLICATION        97/07880
                                                 S.E. Burton, C.A. Demers,
                                                 R.
------------------------------------------------------------------------------------------------------------------------------
Method And System For Inhibiting                 Cherukui, S.C. Demers,       U.S.         11740  PATENT            08/483331
 Cross-Contamination In Fluids Of                Fan, Z.H. Levine, A.W.
 Combinatorial Chemistry Device                  McBride, S.E. Zanzucchi,
                                                 P.J.
------------------------------------------------------------------------------------------------------------------------------
Method And System For Inhibiting                 Cherukui, S.C. Demers,       U.S.       11740A   APPLICATION       08/726953
 Cross-Contamination In Fluids Of                Fan, Z.H. Levine, A.W.
 Combinatorial Chemistry Device                  McBride, S.E. Zanzucchi,
                                                 P.J.
------------------------------------------------------------------------------------------------------------------------------
Assay System                                     Andrevski, Z.M. Roach, W.R.  U.S.         11772  APPLICATION       08/742317
------------------------------------------------------------------------------------------------------------------------------
Assay System And Method For Conducting Assays    Andrevski, Z.M. Roach,       PCT          11772  APPLICATION        96/17116
                                                 W.R. Southgate, D.
                                                 Zanzucchi, P.J.
------------------------------------------------------------------------------------------------------------------------------
Field-Assisted Sealing                           Fan, Z.H. Cherukui, S.C.     PCT          11865  APPLICATION        95/14654
                                                 Levine, A.W. Lipp, S.A
------------------------------------------------------------------------------------------------------------------------------
Field-Assisted Sealing                           Fan, Z.H. Cherukui, S.C.     U.S.         11865  APPLICATION       08/745766
                                                 Levine, A.W. Lipp, S.A
------------------------------------------------------------------------------------------------------------------------------
Parallel Reaction Cassette And Associated        Roach, W.R. Southgate,       U.S.         11895  APPLICATION       08/786956
 Devices                                         P.D. Andrevski, Z.M.
                                                 Zanzucchi, P.J.
------------------------------------------------------------------------------------------------------------------------------
Parallel Reaction Cassette And Associated        Roach, W.R. Southgate,       PCT          11895  APPLICATION        97/00298
 Devices                                         P.D. Andrevski, Z.M.
                                                 Zanzucchi, P.J.
------------------------------------------------------------------------------------------------------------------------------
Magnet                                           McBride, S.E.                U.S.       11904A   APPLICATION       08/742971
------------------------------------------------------------------------------------------------------------------------------
Magnet                                           McBride, S.E.                PCT          11904  APPLICATION        96/17398
------------------------------------------------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits      Thaler, B.J. Quinn, R.L.     U.S.         11948  APPLICATION       08/554887
                                                 Braun, P.L. Zanzucchi,
                                                 P.J. Burton, C.A. McBride,
                                                 S.E.
------------------------------------------------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits      Thaler, B.J. Quinn, R.L.     EPO          11948  APPLICATION  PCT95/14587
                                                 Braun, P.L. Zanzucchi,
                                                 P.J. Burton, C.A. McBride,
                                                 S.E.
------------------------------------------------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits      Thaler, B.J. Quinn, R.L.     JAPAN        11948  APPLICATION  PCT95/14587
                                                 Braun, P.L. Zanzucchi,
                                                 P.J. Burton, C.A. McBride,
                                                 S.E.
------------------------------------------------------------------------------------------------------------------------------
Method Of Producing Micro-Electric conduits      Thaler, B.J. Quinn, R.L.     KOREA        11948  APPLICATION  PCT95/14587
                                                 Braun, P.L. Zanzucchi,
                                                 P.J. Burton, C. A.
                                                 McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits      Thaler, B.J. Quinn, R.L.     CANADA       11948  APPLICATION  PCT95/14587
                                                 Braun, P.L. Zanzucchi,
                                                 P.J. Burton, C. A.
                                                 McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits      Thaler, B.J. Quinn, R.L.     AUSTRALIA    11948  APPLICATION  PCT95/14587
                                                 Braun, P.L. Zanzucchi,
                                                 P.J. Burton, C. A.
                                                 McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits      Thaler, B.J. Quinn, R.L.     SINGAPORE    11948  APPLICATION  PCT95/14587
                                                 Braun, P.L. Zanzucchi,
                                                 P.J. Burton, C. A.
                                                 McBride, S.E
------------------------------------------------------------------------------------------------------------------------------
Bead Disbursement Devices                        Demers, R. Cherukui, S.C.    U.S.         12012  APPLICATION       08/805413
------------------------------------------------------------------------------------------------------------------------------
Method For Polynucleotide Sequencing             Kumar, R. Heaney, P.         U.S.         12024  APPLICATION       08/665210
------------------------------------------------------------------------------------------------------------------------------
Method For Polynucleotide Sequencing             Kumar, R. Heaney, P.         PCT          12024  APPLICATION        97/09664
------------------------------------------------------------------------------------------------------------------------------
Method For Polynucleotide Sequencing             Kumar, R. Heaney, P.         U.S.       12024A   APPLICATION      08/950,709
------------------------------------------------------------------------------------------------------------------------------
Massively Parallel Detection                     Stabile, P. Ludington, D.    U.S.       12034B   APPLICATION       08/721427
                                                 York, P.K. Rosen, A.
                                                 Cherukui, S. Zanzucchi, P.
------------------------------------------------------------------------------------------------------------------------------
Massively Parallel Detection                     Stabile, P. Ludington, D.    U.S.       12034A   APPLICATION       08/721432
                                                 York, P.K.
------------------------------------------------------------------------------------------------------------------------------
Massively Parallel Detection                     Stabile, P. Ludington, D.    PCT          12034  APPLICATION        97/17930
                                                 York, P. K. Rosen, A.
                                                 Cherukui, S. Zanzucchi, P.
------------------------------------------------------------------------------------------------------------------------------
Nuclease Protection Assays                       Kumar, R.                    U.S.         12038  APPLICATION       08/665104
------------------------------------------------------------------------------------------------------------------------------
Nuclease Protection Assays                       Kumar, R.                    PCT          12038  APPLICATION        97/09800
------------------------------------------------------------------------------------------------------------------------------
Method For Capturing A Nucleic Acid              Loewy, Z. Kumar, R.          U.S.         12049  APPLICATION       08/881282
------------------------------------------------------------------------------------------------------------------------------
Microfluidic Method For Nucleic Acid             Loewy, Z. G. Kumar, R.       U.S.         12050  APPLICATION       08/665209
 Amplification
------------------------------------------------------------------------------------------------------------------------------
Microfluidic Method For Nucleic Acid             Loewy, Z. G. Kumar, R.       PCT          12050  APPLICATION        97/09663
 Amplification
------------------------------------------------------------------------------------------------------------------------------
Method For Amplifying A Polypeptide              Loewy, Z. G.                 U.S.         12081  APPLICATION      08/6633688
------------------------------------------------------------------------------------------------------------------------------
Method For Amplifying A Polynucleotide           Loewy, Z. G. Kumar, R.       PCT          12081  APPLICATION        97/09665
------------------------------------------------------------------------------------------------------------------------------
Apportioning System                              Demers, R. R.                PCT          12087  APPLICATION        97/05153
------------------------------------------------------------------------------------------------------------------------------
Apportionment System                             Demers, R. R.                U.S.         12087  APPLICATION       08/630047
------------------------------------------------------------------------------------------------------------------------------
Plate For Reaction System                        Demers, R. R. Cherukui,      U.S.         12098  APPLICATION       08/630018
                                                 S.C. Levine, A. W. O'Mara,
                                                 K. D.
------------------------------------------------------------------------------------------------------------------------------
Plate For Reaction System                        Demers, R. R. Cherukui,      PCT          12098  APPLICATION        97/05841
                                                 S.C. Levine, A. W. O'Mara,
                                                 K. D.
------------------------------------------------------------------------------------------------------------------------------
Plate For Reaction System                        Demers, R. R. Cherukui,      U.S.       12098A   APPLICATION       08/850669
                                                 S.C. Levine, A. W. O'Mara,
                                                 K. D.
------------------------------------------------------------------------------------------------------------------------------
Automated nucleic Acid Preparation               Southgate, P. D. Loewy,      U.S.         12120  APPLICATION       08/664780
                                                 Z.G.
------------------------------------------------------------------------------------------------------------------------------
Automated Nucleic Acid Isolation                 Southgate, P. D. Loewy, Z.   PCT          12120  APPLICATION        97/09801
                                                 G.
------------------------------------------------------------------------------------------------------------------------------
Padlock Probe Detection                          Kumar, R.                    U.S.         12162  APPLICATION       08/665208
------------------------------------------------------------------------------------------------------------------------------
Padlock Probe Detection                          Kumar, R.                    PCT          12162  APPLICATION        97/09802
------------------------------------------------------------------------------------------------------------------------------
Indirect Electrode-Based Pumps                   McBride, S.E. Chiang, W.     U.S.         12189  APPLICATION       08/848413
                                                 Heaney, P.J. Cherukui, S.C.
------------------------------------------------------------------------------------------------------------------------------
Method for Enhancing Fluorescence                Zanzucchi, P.J.              U.S.         12215  APPLICATION       08/961860
------------------------------------------------------------------------------------------------------------------------------
Capacitive Denaturation Of Nucleic Acid          Moroney, R. M. Kumar, R.     U.S.         12288  APPLICATION       08/936323
                                                 Fishman, D.M.
------------------------------------------------------------------------------------------------------------------------------
Amplification Method For A Polynucleotide        Kumar, R.                    U.S.         12317  APPLICATION       08/924763
------------------------------------------------------------------------------------------------------------------------------
Balanced Asymmetric Electronic Pulse Patterns    McBride, S.E.                U.S.         12337  APPLICATION       08/821480
 For Operating Electrode-Based Pumps
------------------------------------------------------------------------------------------------------------------------------
Method For Capturing A Microorganism             Kumar, R. Fan, Z.H.          U.S.         12339  APPLICATION       08/927389
                                                 Hoghoogi, B. Stabile, P.J.
------------------------------------------------------------------------------------------------------------------------------
Flow Control In Microfluidics Devices By         Fare, T. L. Fan, Z. H.       U.S.         12365  APPLICATION             08/
 Controlled Bubble Formation                     Heaney, P. J.
------------------------------------------------------------------------------------------------------------------------------
Method For Translocating Microparticles In A     Fan, Z. H. McBride, S.E.     U.S.         12368  APPLICATION       08/838102
 Microfabricated Device                          Cherukui, S.C.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    U.S.       12385A   APPLICATION       08/744386
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Liquid Distribution System                       Zanzucchi, P.J. Cherukui,    PCT          12385  APPLICATION        97/18266
                                                 S.C. McBride, S.E.
------------------------------------------------------------------------------------------------------------------------------
Vertical EHD Pump Integrated With Capillary      McBride, S.E. York, P. K.    U.S.       12519P   APPLICATION       60/046321
 Stop Or Break
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TITLE                                             PATENT NO.  FILING DATE  ISSUE DATE
-------------------------------------------------------------------------------------
<S>                                               <C>         <C>          <C>
Partitioned Microelectronic And Fluidic Device     5,585,069     11/10/94    12/17/96
 Array For Clinical Diagnostics And Chemical
 Synthesis
-------------------------------------------------------------------------------------
Partitioned Microelectronic Device Array           5,593,838    5/31/1995     1/14/97

-------------------------------------------------------------------------------------
Method of Synthesis of Plurality of Compounds      5,643,738    5/31/1995      7/1/97
 in Parallel Using a Partitioned Solid Support
-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array         5,681,484    5/31/1995    10/28/97

-------------------------------------------------------------------------------------
Liquid Distribution System                                      11/9/1995

-------------------------------------------------------------------------------------
Liquid Distribution System                                      11/9/1995

-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array         0 808 456    11/9/1995

-------------------------------------------------------------------------------------
A partitioned Microelectronic Device Array                      11/9/1995

-------------------------------------------------------------------------------------
Liquid Distribution System                                      11/9/1995

-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array                      11/9/1995

-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array                      11/9/1995

-------------------------------------------------------------------------------------
Liquid Distribution System                                      11/9/1995

-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array                      11/9/1995

-------------------------------------------------------------------------------------
Liquid Distribution System                                      11/9/1995

-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array                      11/9/1995

-------------------------------------------------------------------------------------
Liquid Distribution System                                      11/9/1995

-------------------------------------------------------------------------------------
Liquid Distribution System                                      11/9/1995

-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array                      8/29/1996

-------------------------------------------------------------------------------------
A Partitioned Microelectronic Device Array                        1/27/97

-------------------------------------------------------------------------------------
Immunological Assay Conducted In A                                8/20/97
 Microlaboratory Array

-------------------------------------------------------------------------------------
System For Liquid Distribution                                 11/08/1996

-------------------------------------------------------------------------------------
Apparatus And Methods For Controlling Fluid        5,632,876     6/6/1995     5/27/97
 Flow In Microchannels

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                          11/9/1995

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                          11/9/1995

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                          11/9/1995

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                          11/9/1995

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                          11/9/1995

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                          11/9/1995

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                          11/9/1995

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                            5/10/96

-------------------------------------------------------------------------------------
Electrokinetic Pumping                                            5/12/97

-------------------------------------------------------------------------------------
Method And System For Inhibiting                   5,603,351     6/7/1995     2/18/97
 Cross-Contamination In Fluids Of
 Combinatorial Chemistry Device

-------------------------------------------------------------------------------------
Method And System For Inhibiting                                  10/7/96
 Cross-Contamination In Fluids Of
 Combinatorial Chemistry Device

-------------------------------------------------------------------------------------
Assay System                                                    11/1/1996
-------------------------------------------------------------------------------------
Assay System And Method For Conducting Assays                   11/1/1996

-------------------------------------------------------------------------------------
Field-Assisted Sealing                                          11/9/1995

-------------------------------------------------------------------------------------
Field-Assisted Sealing                                         11/08/1996

-------------------------------------------------------------------------------------
Parallel Reaction Cassette And Associated                       1/23/1997
 Devices

-------------------------------------------------------------------------------------
Parallel Reaction Cassette And Associated                       1/24/1997
 Devices

-------------------------------------------------------------------------------------
Magnet                                                            11/1/96
-------------------------------------------------------------------------------------
Magnet                                                          11/3/1996
-------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits                     11/9/1995

-------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits                     11/9/1995

-------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits                     11/9/1995

-------------------------------------------------------------------------------------
Method Of Producing Micro-Electric conduits                     11/9/1995

-------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits                     11/9/1995

-------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits                     11/9/1995

-------------------------------------------------------------------------------------
Method Of Producing Micro-Electric Conduits                     11/9/1995

-------------------------------------------------------------------------------------
Bead Disbursement Devices                                         2/26/97
-------------------------------------------------------------------------------------
Method For Polynucleotide Sequencing                            6/14/1996
-------------------------------------------------------------------------------------
Method For Polynucleotide Sequencing                              6/13/97
-------------------------------------------------------------------------------------
Method For Polynucleotide Sequencing                             10/15/97
-------------------------------------------------------------------------------------
Massively Parallel Detection                                    9/26/1996

-------------------------------------------------------------------------------------
Massively Parallel Detection                                    9/26/1996

-------------------------------------------------------------------------------------
Massively Parallel Detection                                      9/25/97

-------------------------------------------------------------------------------------
Nuclease Protection Assays                                      6/14/1996
-------------------------------------------------------------------------------------
Nuclease Protection Assays                                      6/16/1997
-------------------------------------------------------------------------------------
Method For Capturing A Nucleic Acid                               6/24/97
-------------------------------------------------------------------------------------
Microfluidic Method For Nucleic Acid                            6/14/1996
 Amplification
-------------------------------------------------------------------------------------
Microfluidic Method For Nucleic Acid                            6/13/1997
 Amplification
-------------------------------------------------------------------------------------
Method For Amplifying A Polypeptide                             6/14/1996
-------------------------------------------------------------------------------------
Method For Amplifying A Polynucleotide                          6/13/1997
-------------------------------------------------------------------------------------
Apportioning System
-------------------------------------------------------------------------------------
Apportionment System                                               4/9/96
-------------------------------------------------------------------------------------
Plate For Reaction System                                          4/9/96

-------------------------------------------------------------------------------------
Plate For Reaction System                                          4/9/97

-------------------------------------------------------------------------------------
Plate For Reaction System                                          5/2/97

-------------------------------------------------------------------------------------
Automated nucleic Acid Preparation                              6/14/1996

-------------------------------------------------------------------------------------
Automated Nucleic Acid Isolation                                6/16/1997

-------------------------------------------------------------------------------------
Padlock Probe Detection                                         6/14/1996
-------------------------------------------------------------------------------------
Padlock Probe Detection                                           6/16/97
-------------------------------------------------------------------------------------
Indirect Electrode-Based Pumps                                     5/8/97

-------------------------------------------------------------------------------------
Method for Enhancing Fluorescence                                10/31/97
-------------------------------------------------------------------------------------
Capacitive Denaturation Of Nucleic Acid                           9/24/97

-------------------------------------------------------------------------------------
Amplification Method For A Polynucleotide                         8/27/97
-------------------------------------------------------------------------------------
Balanced Asymmetric Electronic Pulse Patterns                     3/21/97
 For Operating Electrode-Based Pumps
-------------------------------------------------------------------------------------
Method For Capturing A Microorganism                              8/26/97

-------------------------------------------------------------------------------------
Flow Control In Microfluidics Devices By                         11/19/97
 Controlled Bubble Formation
-------------------------------------------------------------------------------------
Method For Translocating Microparticles In A                      4/15/97
 Microfabricated Device
-------------------------------------------------------------------------------------
Liquid Distribution System                                        11/7/96

-------------------------------------------------------------------------------------
Liquid Distribution System                                       10/10/97

-------------------------------------------------------------------------------------
Vertical EHD Pump Integrated With Capillary                       5/13/97
 Stop Or Break
-------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                   Amendment to License and Option Agreement

     THIS AMENDMENT, dated as of April 13, 2000 ("Closing Date"), is by and
between SARNOFF CORPORATION, a New Jersey corporation having a principal place
of business at 201 Washington Road, Princeton, New Jersey 08543 ("Sarnoff"), and
ORCHID BIOSCIENCES, INC.(formerly known as Orchid Biocomputer, Inc.), a Delaware
corporation having a principal place of business at 303 College Road East,
Princeton, New Jersey 08540 ("Orchid").

     WHEREAS, Orchid (as Orchid Biocomputer, Inc.) and Sarnoff entered into a
License and Option Agreement dated as of December 10, 1997 ("License
Agreement"); and

     WHEREAS, Orchid and Sarnoff wish to amend the License Agreement as set
forth herein.

     NOW, THEREFORE, Sarnoff and Orchid hereby agree that the License Agreement
is amended as follows:

1.  DEFINITIONS.

        (a) All capitalized terms, unless otherwise defined herein, will have
the meanings given to them in the License Agreement.

        (b) The following definitions in Section 1 of the License Agreement are
amended as follows:

        1.13   The definition of "Funded Research Program" deleted in its
  entirety and the following is inserted in its place:

               "Funded Research Program" means the research or development
               activities that have been conducted by the Parties (or their
               respective designees) for the Option Fields set forth in Section
               1.21(a) and (c) and for which Sarnoff received research funding
               from Orchid prior to December 31, 1999.

                                       28
<PAGE>

        1.19   The definition of "Net Sales" is deleted in its entirety and
        "Intentionally Omitted" is inserted in its place.

        1.21   The definition of "Option Fields" is deleted in its entirety and
        the following is inserted in its place:

        "Option Field(s)" shall mean the use of Chips in:

        (a) Genomics, that is, nucleic acid-based analysis for discovery or
        development of human and animal pharmaceuticals or agricultural
        chemicals to treat plant diseases and pests and for the discovery of
        plant genes for the purpose of modifying plant traits ("Genomics
        Field");

        (b) Non-nucleic acid-based and non-cell based analyses for high
        throughout screening, that is for discovering and developing human and
        animal pharmaceuticals and agricultural chemicals to treat plant
        diseases and pests ("HTS Field");

        (c) Analysis and synthesis Research Products for use in the Life
        Sciences and in chemistry and materials research ("Research Products
        Field"); and

        (d) Cell-based assays for lead discovery, lead optimization and
        pharmaceutical development, including assays for drug metabolism,
        pharmacokinetics, toxicology and bioavailability ("Cell-Based Assay
        Field").

        1.22. The definition of "Option Period" is deleted in its entirety and
        the following is inserted in its place:

        "Option Field" means that period of time terminating on the Closing
        Date.

        1.24. The definition of "Orchid Field" is deleted in its entirety and
        the following is inserted in its place:

        "Orchid Field" shall mean (a) the use of Chips to carry out
        Combinatorial Chemistry for the purpose of discovering human, animal or
        plant pharmaceuticals, herbicides or pesticides, (b) the In-vitro
        Diagnostic Field, (c) the Genomics Field; and (d) the Research Products
        Field. The Orchid Field does not include the HTS Field and the Cell-
        based Assay Field.

                                       29
<PAGE>

        (c) The following definition is added to Section 1 of the License
        Agreement:

        1.40 "IPO Price" means the price per share of the common stock of Orchid
        upon the closing of a firm commitment underwritten initial public
        offering by Orchid of its common stock to the public pursuant to an
        effective registration statement under the Securities Act of 1933, as
        amended ("IPO").

2.  AMENDMENTS TO GRANT OF RIGHTS.

        (a) Section 2.1 of the License Agreement is amended as follows:

                 2.1.1 Section 2.1.1 of the License Agreement is deleted in its
            entirety and the following is inserted in its place:

            Subject to the terms and conditions of this Agreement, Sarnoff
            hereby grants to Orchid an exclusive, fully paid-up, worldwide,
            right and license under the Licensed Technology, with the right to
            sublicense, to develop, have developed, make, have made, use, have
            used, import, have imported, offer for sale, sell, have sold or
            lease, any Products, Storage Devices and/or Input/Output Devices for
            Type 1 Storage Devices and Chips and/or to provide any Services in
            the Orchid Field, provided, however, that with respect to Type 2
            Storage Devices and Input/Output Devices for Type 1 Storage Devices,
            such License shall only be exclusive for Licensed Technology
            described in clauses (a)-(e) and (g) of Section 1.17 and further
            provided however with respect to the Research Products Field, the
            license shall be exclusive for the Life Science Field and non-
            exclusive for materials and chemical research. In addition, the
            license granted under this Section 2.1.1 with regard to Ancillary
            Devices shall be limited to the designs of the Ancillary Devices in
            the Delivered Chips and Instruments and shall include the right to
            modify such designs using Orchid or third party Intellectual
            Property.

                 2.1.2 Section 2.1.2.1 of the License Agreement is deleted in
            its entirety and the following is inserted in its place:

            Subject to the terms and conditions of this Agreement, Sarnoff
            hereby grants to Orchid a non-exclusive, fully paid-

                                       30
<PAGE>

            up, worldwide, right and license under the Licensed Technology, with
            the right to sublicense, to develop, have developed, make, have
            made, use, have used, import, have imported, offer for sale, sell
            have sold or lease (a) any Products, Storage Devices and Input/
            Output Devices and provide any Services (i) in the HTS Field and the
            Cell-Based Assay Field, and (ii) which use Chips to carry out
            Combinatorial Chemistry for purposes not included in the Orchid
            Field provided however that such license under this Section
            2.1.2.1(ii) outside the Life Science Field shall be limited to use
            for industrial materials and chemicals and shall be limited to
            Licensed Technology under Section 1.17(a)-(e) and (g). However, the
            license granted under this Section 2.1.2.1 with regard to Ancillary
            Devices shall be limited to the designs of the Ancillary Devices in
            the Delivered Chips and Instruments and shall include the right to
            modify such designs using Orchid or third party Intellectual
            Property. The licenses granted pursuant to this Section 2.1.2 shall
            in no way be deemed to limit the scope of any exclusive license
            granted pursuant to Section 2.1.1.

                 2.1.2.2 Section 2.1.2.2 of the License Agreement is deleted in
            its entirety and the following is inserted in its place:

            Subject to the terms and conditions of this Agreement, Sarnoff
            hereby grants to Orchid a non-exclusive, fully paid-up, worldwide,
            right and license under Non-Exclusive Licensed Technology, with the
            right to sublicense, to develop, have developed, make, have made,
            use, have used, import, have imported, offer for sale, sell, have
            sold or lease any Products, Storage Devices and Input/Output Devices
            and provide any Services (i) in the Orchid Field and in the HTS
            Field and the Cell-Based Assay Field, and (ii) which use Chips to
            carry out Combinatorial Chemistry for purposes not included in the
            Orchid Field to the extent such uses of Chips is licensed under
            Section 2.1.2.1.

                2.1.2.3 Section 2.1.2.3 of the License Agreement is deleted in
            its entirety and the following is inserted in its place:

            Subject to the terms and conditions of this Agreement, Sarnoff
            hereby grants to Orchid a non-exclusive, fully paid-up,
            worldwide, right and license under Licensed Technology, with the
            right to sublicense, to develop, have developed, make, have made,
            use, have used, import, have

                                       31
<PAGE>

            imported, offer for sale, sell, have sold or lease Input/Output
            Devices for Type 2 Storage Devices in the Orchid Field.

                  2.1.3 Section 2.1.3 of the License Agreement is deleted in its
            entirety and "Intentionally Omitted" is inserted in its place.

                  2.1.4  Section 2.1.4 is hereby deleted in its entirety and
            "Intentionally Omitted" is inserted in its place.

                  2.1.6 Section 2.1.6 is deleted in its entirety and the
            following is inserted in its place:

            Sarnoff represents to Orchid that, as of the Closing Date, none of
            the Licensed Technology has been licensed from a third party.

                  2.1.8 Section 2.1.8 is deleted in its entirety and the
            following is inserted in its place:

            All tangible instruments, devices, prototypes or components thereof
            which are produced in Funded Research Programs at Sarnoff funded by
            Orchid (collectively, the "Tangible Instruments") shall be owned by
            Orchid. Sarnoff will deliver all Tangible Instruments of which it is
            aware to Orchid by no later than August 31, 2000. Thereafter, Orchid
            will notify Sarnoff in writing of any Tangible Instruments that
            Sarnoff is required, but failed, to deliver to Orchid under this
            Section 2.1.8, and Sarnoff will deliver to Orchid any such Tangible
            Instrument within 30 days of Orchid's notice. Orchid shall have the
            right to use and to reproduce all such Tangible Instruments under
            the terms of this Agreement.

                  2.2 Section 2.2 is deleted in its entirety and the following
            is inserted in its place:

            Nothing in this Agreement shall be interpreted to preclude Sarnoff
            or any of its subsidiaries or licensees or sublicensees from
            engaging in their businesses; provided that nothing in this Section
            2.2 shall limit the exclusive grant to Orchid under Section 2.1.
            Notwithstanding the

                                       32
<PAGE>

            foregoing, for a period of one (1) year, Sarnoff and its wholly-
            owned subsidiaries will not:

                 (a) collaborate with or enter into any agreement to provide
            research services or grant any license to any commercial third party
            for (i) designing or modifying Chips or Input/Output Devices for
            Chips for use in the Orchid Field, (ii) designing or modifying Type
            1 Storage Devices or Input/Output Devices for Type 1 Storage
            Devices that are customized or designed by Sarnoff for use with
            Chips in the Orchid Field, or (iii) designing or modifying Ancillary
            Devices, whether or not incorporated in Delivered Chips and
            Instruments, that are designed or customized by Sarnoff in
            collaboration with the third party while Sarnoff itself is in
            possession of the third party's Chips as part of a joint effort to
            design or optimize a system that includes Chips for use in the
            Orchid Field; or

                 (b) sell products which contain Chips, Type 1 Storage Devices,
            Input/Output Devices for Chips or Type 1 Storage Devices to any
            commercial third party for use in the Orchid Field.

            The foregoing:

                 (w) shall not prevent Sarnoff or any of its subsidiaries from
            providing services related to, or from developing, licensing or
            selling printers, cameras, imaging systems or displays including but
            not limited to those which employ Chips therein so long as they are
            not Ancillary Devices exclusively licensed to Orchid or designed or
            customized in violation of 2.2(i)(a)(iii);

                 (x) shall not prevent Sarnoff or any of its subsidiaries from
            providing services related to, or from developing, licensing or
            selling (a) Type 2 Storage Devices, or (b) Ancillary Devices, Type 1
            Storage Devices or Input/Output Devices for use outside the Orchid
            Field or from developing, licensing or selling products of general
            applicability which may be useful in the Orchid Field as long as
            such products are not specifically designed or modified for use with
            Chips, Type 1 Storage Devices, or Input/Output Devices for Chips or
            Type 1 Storage Devices,

                 (y) shall not require Sarnoff to prevent purchasers of such
            Ancillary Devices, Storage Devices or

                                       33
<PAGE>

            Input/Output Devices from using such Ancillary Devices, Storage
            Devices or Input/Output Devices in the Orchid Field, and

                 (z) shall not require Sarnoff to prevent parties with whom
            Sarnoff collaborates or provides research services or to whom
            Sarnoff grants any license from modifying, for use in the Orchid
            Field, products developed or licensed to them by Sarnoff, as long as
            Sarnoff or its wholly-owned subsidiaries do not contribute to the
            modification.

2.      2.3  Amendments to Option Grant.

             2.1 (a) Sections 2.3 (paragraphs 2.3.1 - 2.3.5 inclusive), 2.4 and
        2.5 of the License Agreement are deleted in their entirety and the
        following is inserted in their place:

             2.3. The Parties acknowledge that Orchid has exercised the
        exclusive option to include the Genomics Field and the Research Products
        Field in the Orchid Field and to receive exclusive licenses in such
        Option Fields. No other options are granted by Sarnoff to Orchid
        hereunder to the remaining Option Fields, with respect to which
        remaining Option Fields Orchid has and retains a non-exclusive license
        pursuant to the terms and conditions of this Agreement, as amended.

                 2.3.1 The Parties agree that, in consideration of the payments
             to be made and securities to be delivered by Orchid to Sarnoff
             pursuant to Sections 3.1(c) and 3.5 below, as of the Closing Date
             of this Amendment:

                     (i)    Sarnoff will not conduct any further research and
                     development activities for Orchid with respect to the
                     Genomics Field and the Research Products Field; the Funded
                     Research Program in connection with the Genomics Field and
                     the Research Products Field are deemed to be fully paid-up,
                     funded and completed and Orchid does not and will not owe
                     Sarnoff any monies for

                                       34
<PAGE>

                     royalties, option exercise fees or otherwise in connection
                     with such fields;

                     (ii)   no further options are exercisable under the License
                     Agreement; and

                     (iii) the Parties will not engage in any further funded
                     research or development activities in connection with any
                     Option Field, unless under a separate written agreement.

                     2.3.2  Intentionally omitted.

                     2.3.3  Intentionally omitted.

                     2.3.4  Intentionally omitted.

                     2.3.5 Sarnoff has delivered to Orchid and Orchid has
                 accepted a detailed list of all Licensed Technology which, to
                 the best of Sarnoff's knowledge, was invented or developed
                 during the course of the Funded Research Programs, or
                 incorporated in devices or systems as part of any such Funded
                 Research Programs as of the Closing Date. A list which has been
                 mutually agreed upon by the Parties and appended to this
                 Agreement (as amended) (Exhibit A) includes Licensed Technology
                 attributable to such Funded Research Programs as well as other
                 technology licensed hereunder as Research Technology. After the
                 Closing Date, if Sarnoff becomes aware of any Licensed
                 Technology that had not been delivered, Sarnoff will promptly
                 deliver such Licensed Technology to Orchid. If Orchid becomes
                 aware of any Licensed Technology that had not been delivered by
                 Sarnoff on or after the Closing Date in accordance with this
                 Section 2.3.5, Orchid will notify Sarnoff in writing and the
                 parties will negotiate the terms of its delivery to Orchid.

     2.4 Notwithstanding any provision of this Agreement, (a) the failure by
Orchid to exercise any Option which was granted by Sarnoff under this

                                       35
<PAGE>

                 Agreement shall not in any way affect any exclusive licenses
                 granted to Orchid hereunder, any non-exclusive licenses granted
                 to Orchid with respect to the HTS Field and the Cell-Based
                 Assay Field and (b) the scope of any licenses granted to Orchid
                 in the SB Agreement shall not be limited or affected in any way
                 by this Agreement.

                 2.5 Section 2.5 of the License Agreement is deleted in its
           entirety and "Intentionally Omitted" is inserted in its place.

        (b) Section 2.6.2 of the License Agreement is deleted in its entirety
and the following is inserted in its place:

                 2.6.2 Unless otherwise agreed in writing, without the prior
          written consent of Sarnoff, Orchid shall not grant a license or
          other right to any third party to use or practice outside the
          Orchid Field any Joint Inventions or Joint Patent Right, or to
          develop, have developed, make, have made, use, have used, offer
          to sell, sell, have sold, import, have imported, lease, or
          otherwise distribute any products or deliver any services
          outside the Orchid Field Covered By Joint Patent Rights. Unless
          otherwise agreed in writing, without the prior written consent of
          Orchid, Sarnoff shall not grant a license or other right to any third
          party to use or practice in the Orchid Field, any Joint Invention or
          Joint Patent Right, or to develop, have developed, make, have made,
          use, have used, offer to sell, sell, have sold, import, have imported,
          lease or otherwise distribute any products or deliver any services,
          within the Orchid Field Covered By Joint Patent Rights.

3.  AMENDMENTS TO CONSIDERATION.

        (a)  Section 3.1(b) of the License Agreement is amended as follows:

             has previously issued to Sarnoff or to Sarnoff's designated
             employees Eighty Two Thousand Five Hundred (82,500) shares of
             Common Stock, par value $.001, of Orchid and One Hundred Sixty
             Seven Thousand Five

                                       36
<PAGE>

             Hundred (167,500) shares of Series A Convertible Preferred Stock,
             par value $0.001, of Orchid in consideration of the license granted
             hereunder in the In-vitro Diagnostic Field; and

         3.2 (b)  Section 3.1(c) of the License Agreement is deleted in its
     entirety and the following is inserted in its place:

             agrees, as full and final payment for all obligations of Orchid to
             Sarnoff under this License Agreement with respect to the Research
             Products Field and the Genomics Field including, without
             limitation, any and all obligations to conduct or fund research
             and/or development, make royalty or other payments or issue any of
             its common or preferred stock or any other Orchid security, to:

                     (i)    Pay $970,000 and issue 50,000 shares of Orchid's
                            common stock to Sarnoff with respect to the Research
                            Products Field;

                     (ii)   Pay $2,000,000 and issue 100,000 shares of Orchid's
                            common stock to Sarnoff with respect to the Genomics
                            Field; and

                     (iii)  Issue an additional 50,000 shares of Orchid's common
                            stock to Sarnoff as a full, advance payment of any
                            and all future royalties that may be owed to Sarnoff
                            by Orchid with respect to royalty-bearing Products
                            or Services marketed in the Genomics Field or
                            Research Products Field.

          3.3 (c)  Section 3.2 of the License Agreement is deleted in its
      entirety and the following is inserted in its place:

                 3.2  Option Consideration.

                 (a) With respect to the exercise of the Option for the Research
                 Products Field, Orchid previously issued to Sarnoff 33,300
                 shares of

                                       37
<PAGE>

                 Common Stock of Orchid, par value $.001 and 66,700 shares of
                 Class A Preferred Stock of Orchid, par value $.001. With
                 respect to the exercise of the Option for the Genomics Field,
                 Orchid previously issued to Sarnoff 100,000 shares of Common
                 Stock of Orchid, par value $.001 of Common Stock of Orchid.

                 (b) Subject to the performance by Orchid of its obligations
                 under Sections 3.1(c) and 3.5, from and after the Closing Date
                 of this Amendment, (i) Orchid and Sarnoff will have no further
                 obligations to the other to conduct, continue or fund any
                 research program in any field, including any Funded Research
                 Program, and (ii) the Options to the HTS Field and the Cell-
                 Based Assay Field are terminated and without further force and
                 effect.

     (d) Sections 3.4, 3.5 and 3.6 are each deleted in their entirety and the
following is inserted in the place of each such Section:

               3.4   The Parties agree that in consideration of the delivery of
         securities by Orchid to Sarnoff pursuant to Sections 3.1(c) and Section
         3.5 below, any and all royalty obligations (including any minimum
         payments) under the License Agreement, whether under the exclusive or
         non-exclusive licenses granted to Orchid thereunder and whether in the
         Orchid Field or any Option Field, are fully paid-up, and the licenses
         granted to Orchid under the License Agreement are royalty-free, as of
         the Closing Date of this Amendment.

               3.5 As additional consideration for Sarnoff granting Orchid a
         fully paid-up license under the License Agreement, Orchid will deliver
         to Sarnoff:

                     (i)   50,000 shares of Orchid common stock as a full,
                           advance payment of any and all future royalties that
                           may be owed to Sarnoff by Orchid with respect to
                           royalty-bearing Products or Services marketed in

                                       38
<PAGE>

                           the HTS Field or Cell-Based Assay Field under the
                           non-exclusive license granted to Orchid by Sarnoff
                           under the License Agreement; and

                     (ii)  a warrant to purchase 75,000 shares of Orchid common
                           stock as a full, advance payment of any and all other
                           future obligations of Orchid to pay royalties to
                           Sarnoff under the License Agreement, pursuant to a
                           Warrant Agreement in the form attached as Exhibit A
                                                                     ---------
                           ("Warrant Agreement").

                 3.6 All payments and delivery of securities to be made by
           Orchid pursuant to Sections 3.1(c) and 3.5 above shall be made
           as of the Closing Date.

          3.4 (e)  Sections 3.7, 3.8 and 3.10 are each deleted in their entirety
and "Intentionally Omitted " is inserted in the place of each such Section.

4.  AMENDMENT TO DISCLOSURE OF LICENSED TECHNOLOGY.

          Section 5.2.4 of the License Agreement is amended as follows:

                 5.2.4. Sarnoff may, with respect to the Patent Rights, at any
           time, in its sole discretion decide that it desires to discontinue
           its responsibility for the prosecution or maintenance of a particular
           patent application or patent in one or more countries of Patent
           Rights which are Licensed Technology under Section 1.17(a), (b), (c),
           (d), (e) and (g). In such event, Sarnoff shall notify Orchid promptly
           in writing of its intention to discontinue responsibility for the
           prosecution or maintenance for such patent application or patent,
           and, in any event, shall give such notice at least sixty (60) days
           prior to the effective date of such proposed discontinuance in order
           to permit Orchid to determine whether it wishes to assume the
           responsibility therefor. Orchid shall have the right and option, but
           not the
                                       39
<PAGE>

           obligation, to assume responsibility for prosecution and maintenance
           of such patent or patent application which Sarnoff desires to
           discontinue. Orchid shall inform Sarnoff in writing of its decision
           to assume responsibility for prosecution and maintenance of such
           patent or patent application and Sarnoff shall execute and deliver
           such documents and take such actions as are reasonably necessary or
           appropriate to effect such assumption and transfer of responsibility
           in a timely and efficient manner. In the event Orchid exercises such
           right, such patent or patent application shall be assigned to Orchid
           and removed from operation of this Agreement; provided that, Sarnoff
           shall have a royalty free, non-exclusive, worldwide, right and
           license under such Licensed Technology with the right to sublicense,
           to develop, have developed, make, have made, use, have used, import,
           have imported, offer for sale, sell have sold or lease products and
           practice processes outside the Orchid Field and further provided that
           upon termination of this Agreement, such patents and patent
           applications shall be assigned to Sarnoff. However, if Sarnoff elects
           to use or sublicense a particular patent in a particular country
           assigned by Sarnoff to Orchid under this Section 5.2.4, then Sarnoff
           shall pay to Orchid one half of the out of pocket costs expended by
           Orchid in obtaining and maintaining the particular patent in the
           particular country.

5.  INFRINGEMENT.

        There are no modifications to Section 6 of the License Agreement.

6.  TERM.

        6.1  Section 7.1 of the License Agreement is amended to read as follows:

             This Agreement shall be effective as of the Effective Date and
             shall continue in full force and effect unless terminated by mutual
             agreement.

        6.2  Section 7.2 of the License Agreement is deleted in its entirety and
    "Intentionally Omitted" is inserted in its place.

8.  MISCELLANEOUS.

                                       40
<PAGE>

        8.1  (a) Except as amended or modified hereby, the License Agreement
  remains in full force and effect.

        8.2  (b) In the case of any conflict between the terms of this Amendment
  and the terms of the License Agreement, the terms of this Amendment will
  govern.

       IN WITNESS WHEREOF, the parties have executed this Amendment as of the
Closing Date.

SARNOFF CORPORATION                 ORCHID BIOSCIENCES, INC.

By: /s/ William J. Burke            By: /s/ Donald R. Marvin
    ----------------------------        --------------------------
Name: William J. Burke              Name: Donald R. Marvin
Title: VP, Patents & Licensing      Title: SVP, COO and CFO

                                       41
<PAGE>

                                   Exhibit A

                              Licensed Technology

<PAGE>

                              ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
CASE NO.  DISCLOSURE DATE                TITLE                  STATUS   OWNER           REMARKS           CLIENT     LICENSE INFO
<S>       <C>              <C>                                 <C>       <C>    <C>                        <C>     <C>
 11404           10/12/93  Sensors In Microwell Immuno Assay   Combined  DSRC   Combined into 11402        ORCHI   Orchid and SKB
                           Plate For One Step Assays And For                                                       have licenses
                           Improved Automation Of
                           Pharmaceutical Testing
 11512            3/11/94  Solid-Phase Oligonucleotide         Combined  DSRC   Combined into 11402        ORCHI   Orchid and SKB
                           Synthesis Approaches Adapted For                                                        have licenses
                           Planar, Computer Controlled
                           Devices For Incorporation Into
                           Microlab
 11561            5/18/94  Pulsed Pneumatic Reaction            Closed   DSRC                               NONE   None
                           Dispenser
 11576            6/16/94  Synthesis On Pad Array, MicroLab     Closed   DSRC                               NONE   None
                           Technology
 11577            6/15/94  Electrode Geometries And Channel    Combined  DSRC   Combined into 11402        ORCHI   Orchid and SKB
                           Cross-Over Designs For                                                                  have licenses
                           Low-Voltage, High-Field,
                           Combinatorial Synthesis On
                           MicroLab
 11637            9/30/94  Structure And Manufacturing           Sold    ORCHI  11749 & 11746 combined     ORCHI   Sarnoff has a
                           Method For A Miniature Laboratory                    into this case portions            license outside
                           Reactor System                                       combined into 11402G;              FOU; SKB has a
                                                                                Orchid accepts                     license
                                                                                responsibility 11/10/99
 11638            10/3/94  Sarnoff MicroChemlab Array Series   Combined  DSRC   Combined into 11402        ORCHI   Orchid and SKB
                           For Parallel Clinical Diagnostics                                                       have licenses
                           And Screening
 11644           10/12/94  MicroChemlab Array Using Ceramic     Closed   DSRC                              ORCHI   Orchid and SKB
                           Technology                                                                              have licenses
 11717            1/24/95  Electrohydrodynamic Pump For         Filed    DSRC   See 11752 and 11760        ORCHI   Orchid and SKB
                           MicroLab Fluid Transport                                                                have licenses
 11740            2/21/95  Method Of Inhibiting                 Filed    DSRC   11759 combined into this   ORCHI   Orchid and SKB
                           Cross-Contamination In Fluids Of                     case; also combined into           have licenses
                           Combinatorial Chemistry Device                       11402G
 11745            2/24/95  Stable Miniaturized Reaction        Combined  DSRC   Combined into 11402G       ORCHI   Orchid and SKB
                           Cassette                                                                                have licenses
 11746            2/24/95  Fluid Control Using Thermally       Combined  DSRC   Combined into 11402G       KEMSY   None
                           Non-Isotropic Elements (AL this
                           title changed from disclosure
                           page check page 2)
 11747            2/24/95  Immobilization Of Synthetic         Combined  DSRC   Combined into 11402G       ORCHI   Orchid and SKB
                           Intermediates And Products                                                              have licenses
 11748            2/24/95  Miniaturized Synthesis Cassette      Closed   DSRC                              ORCHI   Orchid and SKB
                           Suitable For Standard Assay                                                             have licenses
                           Methods
 11749            2/24/95  Miniature Laboratory Reactor        Combined  DSRC   Combined into 11402G       ORCHI   Orchid and SKB
                           System With On-Board Mechanical                                                         have licenses
                           Pumping
 11752            2/28/95  A Combined                          Combined  DSRC   Combined into 11717        ORCHI   Orchid and SKB
                           Electrohydrodynamic-                                                                    have licenses
                           Electroosmotic Pump For MicroLab
                           Fluid Transport
 11759             3/3/95  Method Of Inhibiting                Combined  DSRC   Combined into 11740 and    ORCHI   Orchid and SKB
                           Cross-Contamination In Fluids Of                     11402G                             have licenses
                           Combinatorial Chemistry Device
 11760             3/9/95  Electronic Fluid Flow Control For   Combined  DSRC   Combined into 11717        ORCHI   Orchid and SKB
                           Electrohydrodynamic And                                                                 have licenses
                           Electro-Osmotic Pumps
 11761            3/13/95  Single-Site Small-Scale Bio-Assay   Combined  DSRC   Combined into 11772         NIST   U.S. GOV. has a
                           System                                                                                  license
 11762            3/14/95  Microlab Intercavity Barrier         Closed   DSRC                              ORCHI   Orchid and SKB
                                                                                                                   have licenses
</TABLE>
                                    Page 1
<PAGE>

                              ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
CASE NO.  DISCLOSURE DATE                TITLE                  STATUS   OWNER           REMARKS           CLIENT     LICENSE INFO
<S>       <C>              <C>                                 <C>       <C>    <C>                        <C>     <C>
 11772             4/4/95  A Miniaturized Reagent               Filed    DSRC   11761, 11845, 11850 &       NIST   U.S. GOV. has a
                           Distribution And Chemical                            11851 combined into this           license
                           Reaction Laboratory, A                               case
                           MicroLaboratory On A Disk
 11785            4/13/95  Etched Glass Immobilization Layers  Combined  DSRC   Combined into 11402G       ORCHI   Orchid and SKB
                                                                                                                   have licenses
 11845             6/8/95  Source For Rapid Thermal Cycling    Combined  DSRC   Combined into 11772         NIST   U.S. GOV. has a
                           Of PCR                                                                                  license
 11850            6/20/95  Thin-Walled Reaction Cell System    Combined  DSRC   Combined into 11772         NIST   U.S. GOV. has a
                                                                                                                   license
 11851            6/20/95  Thermoelectric Fast Temperature     Combined  DSRC   Combined into 11772         NIST   U.S. GOV. has a
                           Cycler                                                                                  license
 11865            7/11/95  Field Assisted Glass-To-Glass        Filed    DSRC                              ORCHI   Orchid and SKB
                           Sealing                                                                                 have licenses
 11895             9/6/95  Multi-Channel PCR Cassette           Filed    DSRC   11899 & 11967 combined      NIST   U.S. GOV. has a
                                                                                into this case                     license
 11899            9/11/95  Valves And Pumps For                Combined  DSRC   Combined into 11895         NIST   U.S. GOV. has a
                           Multi-Channel PCR Cassette                                                              license
 11904            9/19/95  Novel Magnetic System To             Filed    DSRC   See 11906                   NIST   U.S. GOV. has a
                           Transport, Stir And Hold Magnetic                                                       license
                           Beads
 11906            9/21/95  Multipole Magnetic System To        Combined  DSRC   Combined into 11904         NIST   U.S. GOV. has a
                           Transport, Stir and Hold Magnetic                                                       license
                           Beads
 11937           10/17/95  Pushing Actuator                     Closed   U.S.                               NIST   Sarnoff has a
                           ("Pushuator")/Floppy Cassette                                                           license
                           Approach To Microlab
 11947           10/23/95  Electrode Formation For Core        Combined  DSRC   Combined into 11948        ORCHI   Orchid and SKB
                           Cassette Pumps                                                                          have licenses
 11948           10/23/95  Method For Forming Protruding         Sold    ORCHI  See 11947; Orchid          ORCHI   Sarnoff has a
                           Electrodes For Core Cassette Pumps                   accepts responsibility             license outside
                                                                                11/10/99                           FOU; SKB has a
                                                                                                                   license
 11967            11/3/95  Valves And Pumps For                Combined  DSRC   Combined into 11895         NIST   U.S. GOV. has a
                           Multi-Channel PCR Cassette                                                              license
 11984           11/17/95  Model For Electrohydrodynamic       Combined  DSRC   Combined into 11402G and   ORCHI   Orchid and SKB
                           (EHD) Pumping of Non-Aqueous                         11717A                             have licenses
                           Fluids
 12017           12/21/95  DNA Detection System Using Fiber    Combined  DSRC   Combined into 11895         NIST   U.S. GOV. has a
                           Bundle                                                                                  license
 12024            1/10/96  Redundant Nucleotide String          Filed    DSRC   12025, 12028 and 12029      NIST   U.S. GOV. has a
                           Identification Of Genes                              combined into this case            license
 12025            1/10/96  A DNA Sequencing Method Based       Combined  DSRC   Combined into 12024         NIST   U.S. GOV. has a
                           Upon Sequential Addition And                                                            license
                           Determination of Nucleotides
 12028            1/11/96  A Method For Determination Of Non   Combined  DSRC   Combined into 12024         NIST   U.S. GOV. has a
                           Redundant Strings At 3' Ends Of                                                         license
                           Expressed Genes
 12029            1/11/96  A Novel Method For Determination    Combined  DSRC   Combined into 12024         NIST   U.S. GOV. has a
                           Of DNA Sequence at 3' Ends Of                                                           license
                           Expressed Genes
 12034            1/17/96  Advanced Detection Approaches For     Sold    ORCHI  Orchid accepts             ORCHI   Licenses granted
                           Screening, Genomics, And                             responsibility 11/10/99            in MicroLab
                           Diagnostics                                                                             technology;
                                                                                                                   Sarnoff has a
                                                                                                                   license outside
                                                                                                                   FOU
 12038            1/18/96  R/Nase/S1 Nuclease Protection        Filed    DSRC   12046-12048 and             NIST   U.S. GOV. has a
                           Assays With Oligonucleotides                         12052-12057 combined               license
                           Synthesized In Vitro In the                          into this case
                           Orchid/MicroLab Format
 12043            1/22/96  Silicon Fitments For Microlab        Closed   U.S.                               NIST   Sarnoff has a
                           Cassettes                                                                               license
 12044            1/22/96  Assuring Performance Of Toridal      Closed   U.S.                               NIST   Sarnoff has a
                           Reservoirs In Microlab Cassettes                                                        license
                           By Preferred Choices Of Geometry
 12045            1/24/96  Application Of An Atomic Force       Closed   DSRC                              ORCHI   Orchid and SKB
                           Microscope As A Tool Of Bioassays                                                       have licenses
</TABLE>
                                    Page 2

<PAGE>

                              ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
CASE NO.  DISCLOSURE DATE                TITLE                  STATUS   OWNER           REMARKS           CLIENT     LICENSE INFO
<S>       <C>              <C>                                 <C>       <C>    <C>                        <C>     <C>
 12046            1/24/96  Use Of A Nucleic Acid Array For     Combined  DSRC   Combined into 12038         NIST   U.S. GOV. has a
                           Analysis Of Multiple Nucleic                                                            license
                           Acids By Nuclease Protection
 12047            1/24/96  An Immobilized Nucleic Acid         Combined  DSRC   Combined into 12038         NIST   U.S. GOV. has a
                           Nuclease Protection Assay                                                               license
 12048            1/24/96  Use Of An Oligonucleotide Array     Combined  DSRC   Combined into 12038         NIST   U.S. GOV. has a
                           For Gene Expression Analysis By                                                         license
                           Nuclease Protection Assay
 12049            1/24/96  Application Of Repetitive            Filed    DSRC   12288, 12342, 12353 and     NIST   U.S. GOV. has a
                           Sequences For Human Genomic DNA                      12364 combined into this           license
                           Target Capture                                       case
 12050            1/24/96  Application Of Chemical              Filed    DSRC   12051, 12118, 12127,        NIST   U.S. GOV. has a
                           Denaturation To Nucleic Acid                         12140 AND 12161 combined           license
                           Amplification                                        into this case
 12051            1/26/96  Automated System For                Combined  DSRC   Combined into 12050         NIST   U.S. GOV. has a
                           Amplification Of Nucleic Acids                                                          license
 12052            1/26/96  DNA/RNA Sequencing By Nuclease      Combined  DSRC   Combined into 12038         NIST   U.S. GOV. has a
                           Protection Assay                                                                        license
 12053            1/26/96  Oligonucleotides Probes             Combined  DSRC   Combined into 12038         NIST   U.S. GOV. has a
                           Consisting Of PolyT Tail And                                                            license
                           Contiguous Nucleotides For
                           Nuclease Protection
 12054            1/26/96  Solution Nuclease Protection        Combined  DSRC   Combined into 12038         NIST   U.S. GOV. has a
                           Assay Followed By Capture And                                                           license
                           Detection Of Protected Probes
 12055            1/26/96  Use Of A Nuclease Resistant         Combined  DSRC   Combined into 12038         NIST   U.S. GOV. has a
                           Linker For Oligonucleotide                                                              license
                           Immobilization For Use In
                           Nuclease Protection Assay
 12056            1/26/96  A Rotating Cylinder Containing      Combined  DSRC   Combined into 12038         NIST   U.S. GOV. has a
                           Oligonucleotide Array For                                                               license
                           Nuclease Protection Assay And
                           Analysis Of A Large Number Of
                           Nucleic Acids Thereby
 12057            1/26/96  A Method For Optimizing             Combined  DSRC   Combined into 12038         NIST   U.S. GOV. has a
                           Sensitivity Of Oligonucleotide                                                          license
                           Array For Nuclease Protection
                           Assay For Different Levels Of
                           Target Nucleic Acids
 12078            2/14/96  Oligonucleotide Ligation Assay      Combined  DSRC   Combined into 12081         NIST   U.S. GOV. has a
                           Using Energy-Transfer Fluorescent                                                       license
                           Dyes
 12081            2/16/96  Coupled Transcription-Litigation     Filed    DSRC   12078 combined into this    NIST   U.S. GOV. has a
                           Amplification System                                 case                               license
 12087            2/19/96  Compound Apportioning System          Sold    ORCHI  Orchid accepts              NONE   Sarnoff has a
                                                                                responsibility 11/10/99            license outside
                                                                                                                   FOU
 12092            2/21/96  Improved Actuator For Microlab       Closed   U. S.                              NIST   Sarnoff  has a
                           Valves                                                                                  license
 12098            2/23/96  Nanoscale Formats For Massively       Sold    ORCHI  12119 and 12124 were       ORCHI   Sarnoff has a
                           Parallel Chemistry Experiments                       combined into this case;           license outside
                                                                                Orchid accepts                     FOU; SKB has a
                                                                                responsibility 11/10/99            license
 12101            2/27/96  Ultra-High Throughput Screening     Combined  DSRC   Combined into 12034         NONE   Orchid has a
                           Of Natural And Synthetic Product                                                        license  - see SB
                           Libraries For Pharmaceutical                                                            Development
                           Discovery                                                                               Agreement
 12118            3/12/96  Automated System For Chemical       Combined  DSRC   Combined into 12050         NIST   U.S. GOV. has a
                           Amplification Of Nucleic Acids                                                          license
 12119            3/11/96  Architectural And Operational       Combined  DSRC   Combined into 12098        ORCHI   Orchid and SKB
                           Aspects Of Wells And Fluid Supply                                                       have licenses
                           Features For Biochemical
                           Microprocessors
</TABLE>
                                    Page 3

<PAGE>

                              ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
CASE NO.  DISCLOSURE DATE                TITLE                  STATUS   OWNER           REMARKS           CLIENT     LICENSE INFO
<S>       <C>              <C>                                 <C>       <C>    <C>                        <C>     <C>
 12120            3/13/96  Automated Biological Sample           Sold    ORCHI  Orchid accepts              NIST   U.S. GOV. has a
                           Preparation System                                   responsibility 11/10/99            license; Sarnoff
                                                                                                                   has a license
                                                                                                                   outside FOU
 12124            3/18/96  Architectural And Fluid-Transfer    Combined  DSRC   Combined into 12098        ORCHI   Orchid and SKB
                           Operational Details Of                                                                  have licenses
                           Biochemical Microprocessor
                           Cassettes
 12127            3/20/96  Integrated Automated System For     Combined  DSRC   Combined into 12050         NIST   U.S. GOV. has a
                           Nucleic Acid Diagnostics                                                                license
 12131            3/22/96  An Improved Modified Capillary       Closed   DSRC                               NONE   None
                           Solute Transfer Method

 12140            3/28/96  Automated System For Isothermal     Combined  DSRC   Combined into 12050         NIST   U.S. GOV. has a
                           Amplification                                                                           license
 12156             4/5/96  Fabrication Of A Complex Geometry   Combined  DSRC   Combined into 12098        ORCHI   Orchid and SKB
                           Gasket Layer                                                                            have licenses
 12160             4/9/96  Microfluidic Systems Approach For   Combined  DSRC   Combined into 12050  and    NIST   U.S. GOV. has a
                           Nucleic Acid Amplification                           12081                              license
 12161            4/11/96  Electrostatic Denaturation Of       Combined  DSRC   Combined into 12050         NIST   U.S. GOV. has a
                           Nucleic Acids During Isothermal                                                         license
                           Amplification
 12162            4/11/96  A Method For Generating Padlock      Filed    DSRC   12163 combined into this    NIST   U.S. GOV. has a
                           Probes Using Oligonucleotides                        case                               license
                           That Are Labeled With Biotin On
                           Both 5' and 3' Ends
 12163            4/11/96  A Method For Specific Nucleic       Combined  DSRC   Combined into 12162         NIST   U.S. GOV. has a
                           Acid Detection And Signal                                                               license
                           Amplification Using Padlock Probes
 12169            4/15/96  Die Stop For Heat Sealing            Closed   U.S.                               NIST   Sarnoff has a
                                                                                                                   license
 12181            4/18/96  A Method For Increasing The          Closed   U.S.                               NIST   U.S. GOV. has a
                           Sensitivity Of Detection Of                                                             license
                           Double Strand DNA By
                           Hybridization Through Treatment
                           With Lambda Exonclease
 12189            4/24/96  Electrokinetic Actuator For Fluid     Sold    ORCHI  Incorporates 12270;        ORCHI   Sarnoff has a
                           Delivery And Control                                 Orchid accepts                     license outside
                                                                                responsibility 11/10/99            FOU; SKB has a
                                                                                                                   license
 12194            4/29/96  Integrated Microfluidic System       Closed   U. S.  Sent to Orchid 8/98;        NIST   U.S. GOV. has a
                           For Real Time Monitoring Of                          Requested extension                license; Sarnoff
                           Amplification                                        until 11/30/98; Orchid             has a license
                                                                                not interested 9/30/98;            outside FOU
                                                                                SPS sent notice 10/5/98;
                                                                                Sent to US GOV; Sarnoff
                                                                                has a license back
 12223            5/24/96  Microlens Arrays To Assist Assay     Closed   DSRC                              ORCHI   Orchid and SKB
                           And Detection In Biochemical                                                            have licenses
                           Microcomputers
 12224            5/24/96  Back Fill System To Prevent Air      Closed   U. S.  Sent to Orchid 8/98;        NIST   U.S. GOV. has a
                           Contamination In An Automated                        Requested extension                license; Sarnoff
                           Chemistry Cartridge                                  until 11/30/98; Orchid             has a license
                                                                                will not pursue                    outside FOU
                                                                                (10/26/98); SPS sent
                                                                                notice 10/29/98; Sent to
                                                                                US GOV; Sarnoff has a
                                                                                license back
 12225            5/24/96  Mg Sample Introduction System For    Closed   U. S.  Sent to Orchid 8/98;        NIST   U.S. GOV. has a
                           Automated Chemistry Cassettes                        Requested extension                license; Sarnoff
                                                                                until 11/30/98; Orchid             has a license
                                                                                will not pursue                    outside FOU
                                                                                10/26/98; SPS sent
                                                                                notice 10/29/98; Sent to
                                                                                US GOV; Sarnoff has a
                                                                                license back
</TABLE>
                                    Page 4

<PAGE>

                              ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
CASE NO.  DISCLOSURE DATE                TITLE                  STATUS   OWNER           REMARKS           CLIENT     LICENSE INFO
<S>       <C>              <C>                                 <C>       <C>    <C>                        <C>     <C>
 12226            5/28/96  Quantitative Distribution Of Test    Closed   DSRC                               NONE   None
                           Compounds For Assay/Screening
 12233             6/5/96  Effects of Dopants In                Filed    DSRC   CIP of 11717A              ORCHI   Orchid and SKB
                           Eletrohydrodynamic (EHD) Pumping                                                        have licenses
                           Of Organic Chemicals
 12244            6/19/96  Enhancement Of The Sensitivity Of    Filed    ORCHI  Orchid filed Provisional    NIST   U.S. GOV. has a
                           Solution Concentration                               11/30/98                           license; Sarnoff
                                                                                                                   has a license
                                                                                                                   outside FOU
 12245            6/20/96  Microlab Unified Block Concept       Closed   U.S.                               NIST   U.S. GOV. has a
                                                                                                                   license
 12246            6/20/96  Microlab Valve Actuator Shim         Closed   U.S.                               NIST   U.S. GOV. has a
                                                                                                                   license
 12254             7/1/96  Method To Purge And Wash Fluid      Combined  DSRC   Combined into 12385        ORCHI   Orchid and SKB
                           Feeds In Orchid mfluidic Devices                                                        have licenses
 12269            7/12/96  Sub-Miniature Electronically         Closed   DSRC                               NONE   None
                           Controlled Fluidic Pumps And
                           Valves
 12270            7/12/96  Universal Electrokinetic Fluid      Combined  DSRC   Combined into 12189 and     NONE   None
                           Pump                                                 filed
 12278            7/23/96  Microlab Compliant Fill Concept      Closed   U.S.                               NIST   U.S. GOV. has a
                                                                                                                   license
 12283            7/24/96  Improved Method For Anodic           Closed   DSRC                              ORCHI   Orchid and SKB
                           Bonding - Moving Electrodes                                                             have licenses
 12288             8/2/96  Denaturing DNA By Capacitive          Sold    ORCHI  Orchid accepts              NIST   U.S. GOV. has a
                           Charging                                             responsibility 11/10/99            license; Sarnoff
                                                                                                                   has a license
                                                                                                                   outside FOU
 12290             8/6/96  Microlab Seal Separator              Closed   U.S.                               NIST   U.S. GOV. has a
                                                                                                                   license
 12302            8/19/96  Wash Liquid Control In A Sealed      Closed   U.S.                               NIST   U.S. GOV. has a
                           Cassette                                                                                license
 12303            8/19/96  Sample Injection System For Blue     Closed   U. S.  Sent to Orchid 8/98;        NIST   U.S. GOV. has a
                           Chip Cassettes                                       Requested extension                license; Sarnoff
                                                                                until 11/30/98; 12304              has a license
                                                                                combined into this case;           outside FOU
                                                                                Orchid will not pursue
                                                                                9/30/98; SPS notified
                                                                                10/29/98; Sent to US
                                                                                GOV; Sarnoff has a
                                                                                license back
 12304            8/19/96  Septum Needle Containment            Closed   U. S.  Was combined into 12303;    NIST   Sarnoff has a
                                                                                SPS notified of no                 license
                                                                                filing 11/20/98; Orchid
                                                                                not interested 7/23/99
 12317             9/3/96  A Method For Performing              Filed    DSRC   See 12091 includes 12367   DARPA   U.S. GOV. has a
                           Ligation-Mediated Amplification                                                         license
                           Which Is Suitable For The
                           Microscale Volumes
 12326            9/17/96  Microlab Sample Transfer Plate       Closed   DSRC   Filed as a Provisional      NONE   None
                                                                                12/3/96
 12328            9/18/96  Chemical Transport Capillary Wick    Closed   DSRC                               NONE   None
                           Array
 12331            9/19/96  Method For Apportioning Fluids       Closed   DSRC   Combined into 12328;        NONE   None
                           For Nanoscale Screening                              12328 became inactivated
 12337            10/2/96  Electrokinetic Pumping Of Highly     Filed    DSRC                              ORCHI   Orchid and SKB
                           Conductive Fluids That Undergo                                                          have licenses
                           Electrochemistry Using Asymmetric
                           Pulse Excitation
 12339            10/4/96  A Method For Capture Of Organisms    Filed    DSRC   See 12091; 12537           DARPA   U.S. GOV. has a
                           For Subsequent Biochemical                           combined into this case            license
                           Processing
</TABLE>
                                    Page 5

<PAGE>

                              ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
CASE NO.  DISCLOSURE DATE                TITLE                  STATUS   OWNER           REMARKS           CLIENT     LICENSE INFO
<S>       <C>              <C>                                 <C>       <C>    <C>                        <C>     <C>
 12342            10/9/96  A Microfluidics-Enabled             Combined  DSRC   Combined into 12049        DARPA   U.S. GOV. has a
                           Hybridization And Detection                                                             license
                           Chamber For Multiple Analyte
                           Detection
 12348           10/14/96  Fluid Flow Sensor For Fluidic        Closed   ORCHI  Was combined into 12560;   ORCHI   Sarnoff has a
                           Systems                                              Orchid not interested in           license outside
                                                                                this disclosure (1/99)             FOU; SKB has a
                                                                                                                   license
 12354           10/17/96  Direct Feed Of Fluid From           Combined  DSRC   Provisional filed and      ORCHI   Orchid and SKB
                           Distribution Channels Into                           abandoned; No 111(a)               have licenses
                           Reaction Wells                                       filed; Combined into
                                                                                12560; Orchid not
                                                                                interested 10/26/98
 12359           10/18/96  Grit-Blast Pretreatment Of Glass     Closed   DSRC                              ORCHI   Orchid and SKB
                           Surface For Laser Drilling                                                              have licenses
                           Process Improvement
 12364           10/18/96  Microfluidic Enabled                Combined  DSRC   Combined into 12049         NIST   U.S. GOV. has a
                           Sequence-Specific Enrichment                                                            license
                           System
 12365           10/18/96  Flow Break In Microfluidic            Sold    ORCHI  Orchid accepts             DARPA   U.S. GOV. has a
                           Channels Induced By Bubble                           responsibility 11/10/99            license; Sarnoff
                           Formation                                                                               has a license
                                                                                                                   outside FOU
 12366           10/18/96  Microcassette Fluidics Design To     Closed   DSRC                              ORCHI   Orchid and SKB
                           Permit Well Size Reduction And                                                          have licenses
                           Center-To-Center Pitch Reduction
                           (Densification)
 12367           10/22/96  Methods And Strategies For          Combined  DSRC   Combined into 12317        DARPA   U.S. GOV. has a
                           Microfluidics-Enabled Target                                                            license
                           Amplification
 12368           10/23/96  Use Of Magnetic Beads In              Sold    ORCHI  Orchid accepts             DARPA   U.S. GOV. has a
                           Microfabricated Devices                              responsibility 11/10/99            license; Sarnoff
                                                                                                                   has a license
                                                                                                                   outside FOU
 12375           10/28/96  Low Fluid Flow Resistance            Closed   ORCHI  Was combined into 12560;   ORCHI   Sarnoff has a
                           Reaction Cell                                        Orchid not interested in           license outside
                                                                                this disclosure (1/99)             FOU; SKB has a
                                                                                                                   license
 12385            10/4/96  Liquid Distribution System            Sold    ORCHI  Orchid accepts             ORCHI   Sarnoff has a
                                                                                responsibility 11/10/99            license outside
                                                                                                                   FOU; SKB has a
                                                                                                                   license
 12400           11/14/96  Method And Apparatus To Amplify       Sold    ORCHI  Orchid filed Provisional    NIST   U.S. GOV. has a
                           DNA                                                  11/30/98; Orchid not               license; Sarnoff
                                                                                filing 111(a) per AH               has a license
                                                                                11/19/99                           outside FOU
 12415           11/27/96  Turbine Pumped/Electrostatic         Closed   U. S.  Sent to Orchid 8/98;       DARPA   U.S. GOV. has a
                           Capture Air Sampler                                  Requested extension                license; Sarnoff
                                                                                until 11/30/98; Orchid             has a license
                                                                                will not pursue 9/30/98;           outside FOU
                                                                                Notice to SPS sent
                                                                                10/5/98; Sent to US GOV;
                                                                                Sarnoff has a license
                                                                                back
 12433           12/13/96  An Electrostatic Fluid Control        Sold    ORCHI  Filed by Orchid            ORCHI   Sarnoff and SKB
                           And Detecting Structure                                                                 have licenses
                                                                                                                   outside FOU
 12439           12/19/96  Integrated Planar EO And/Or EHD      Closed   U. S.  Sent to Orchid 8/98;       DARPA   U.S. GOV. has a
                           Pumps And Electromagnet Separator                    Requested extension                license; Sarnoff
                                                                                until 11/30/98; Orchid             has a license
                                                                                will not pursue 9/30/98;           outside FOU
                                                                                Notice to SPS sent
                                                                                10/5/98; Sent to US GOV;
                                                                                Sarnoff has a license
                                                                                back
 12441           12/17/96  Organic Synthesis In A               Closed   ORCHI  Sent to Orchid 8/98;       ORCHI   Sarnoff has a
                           Microfabricated Fluidic Array                        Orchid will file (11/98)           license outside
                           Structure                                                                               FOU; SKB has a
                                                                                                                   license
</TABLE>
                                    Page 6

<PAGE>

                              ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
CASE NO.  DISCLOSURE DATE                TITLE                  STATUS   OWNER           REMARKS           CLIENT     LICENSE INFO
<S>       <C>              <C>                                 <C>       <C>    <C>                        <C>     <C>
 12451            1/10/97  System For Delivering Reagents In     Sold    ORCHI  Orchid accepts             ORCHI   Sarnoff has a
                           Quantitative Volumes In                              responsibility 11/10/99            license outside
                           Microscale Devices                                                                      FOU
 12458            1/15/97  Self-Sealing High Aspect Ratio       Closed   ORCHI  Sent to Orchid 8/98;       ORCHI   Sarnoff has a
                           Reaction And/Or Assay Well Plates                    Orchid not interested              license outside
                           Made Of Silicone Elastomers                          10/26/98                           FOU; SKB has a
                                                                                                                   license
 12485             2/6/97  Direct Liquid Capture And            Filed    ORCHI  Orchid filed Provisional   DARPA   U.S. GOV. has a
                           Separation Of Airborne Particles                     11/30/98; Orchid will              license; Sarnoff
                                                                                not file a 111(a) per AH           has a license
                                                                                11/19/99; SPS notified             outside FOU
                                                                                11/22/99
 12491            2/10/97  Active Apportionment System Using    Closed   ORCHI  Sent to Orchid 8/98;       ORCHI   Sarnoff has a
                           Electronically Switched Membrane                     Orchid will not file and           license outside
                                                                                will send to SKB                   FOU; SKB has a
                                                                                (11/11/98)                         license
 12496            2/14/97  A Microfluidics-Based Device For      Sold    ORCHI  Orchid filed Provisional   DARPA   U.S. GOV. has a
                           DNA Target Amplification                             3/18/99; Orchid will not           license; Sarnoff
                                                                                file a 111(a) per AH               has a license
                                                                                11/19/99; SPS notified             outside FOU
                                                                                11/22/99
 12500            2/19/97  DNA Direct III Sample Preparation    Closed   U. S.  Sent to Orchid 8/98;        NIST   U.S. GOV. has a
                           Cassette                                             Requested extension                license; Sarnoff
                                                                                until 11/30/98; Orchid             has a license
                                                                                will not pursue 9/30/98;           outside FOU
                                                                                Notice to SPS sent
                                                                                10/5/98; Sent to US GOV;
                                                                                Sarnoff has a license
                                                                                back
 12504            2/19/97  Microfluidic Enabled Sample          Closed   ORCHI  Sent to Orchid 8/98;        NONE   Sarnoff has a
                           Preparation                                          Orchid will not file               license outside
                                                                                (11/98)                            FOU
 12508            2/20/97  High Density Array Bead              Closed   DSRC                              ORCHI   Orchid and SKB
                           Transporter                                                                             have licenses
 12511            2/21/97  A Novel Electrode For Improved       Closed   ORCHI  Sent to Orchid 8/98;       ORCHI   Sarnoff has a
                           Anodic Bonding                                       Orchid will not file and           license outside
                                                                                will send to SKB (11/98)           FOU; SKB has a
                                                                                                                   license
 12514            2/25/97  mMass Fluid Flow Controller For      Closed   ORCHI  Sent to Orchid 8/98;       ORCHI   Sarnoff has a
                           Integrated Planar mFluidic Systems                   Orchid not interested              license outside
                                                                                10/26/98                           FOU; SKB has a
                                                                                                                   license
 12519             3/3/97  Novel Point/Ring Vertical EHD        Filed    DSRC                              ORCHI   Orchid and SKB
                           Pump Integrated With Capillary                                                          have licenses
                           Stop Or Break
 12520             3/4/97  Fluid Delivery To Multiple Cells      Sold    ORCHI  12546 combined into this   ORCHI   Sarnoff has a
                           In A  mFabricated Array Structure                    case; Sent to Orchid               license outside
                           Using A Transient Pressure Head                      8/98; Filed by Orchid              FOU; SKB has a
                                                                                7/9/99                             license
 12523             3/5/97  mFluidic Array Printer               Filed    DSRC                               NONE   None
 12524            3/15/97  Microfluidic Printer Cartridge       Filed    DSRC                               NONE   None
 12528            3/11/97  Microfluidic Printer                Combined  DSRC   Combined into 12590         NONE   None
 12531            3/13/97  Back Flow Stop Valve To Prevent      Closed   DSRC                              ORCHI   Orchid and SKB
                           Contamination In An Array Of                                                            have licenses
                           Reaction Wells
 12532            3/13/97  Hard Copy Media Activated By        Combined  DSRC   Combined into 12523         NONE   None
                           Physical Phenomena
 12536            3/19/97  Chemical Synthesis In A Chip         Closed   ORCHI  Orchid not interested      ORCHI   Sarnoff has a
                           Format 1: Reagent Characterization                   10/26/98                           license outside
                                                                                                                   FOU; SKB has a
                                                                                                                   license
 12537            3/19/97  Bacteria Capture In A               Combined  DSRC   Combined into 12339        DARPA   U.S. GOV. has a
                           Microfabricated Device                                                                  license
 12539            3/19/97  Integrated Optical Detector For      Closed   ORCHI  Sent to Orchid 8/98;       ORCHI   Sarnoff has a
                           mFluidic Systems Using Planar                        Orchid will not file and           license outside
                           Optical Waveguide                                    will send to SKB (11/98)           FOU; SKB has a
                                                                                                                   license
 12540            3/20/97  Device To Increase Optical           Closed   ORCHI  Sent to Orchid 8/98;        NONE   Sarnoff has a
                           Pathlength For UV                                    Still being reviewed by            license outside
                           Absorbance-Based Permeability                        Orchid (11/98); Orchid             FOU
                           Measurement                                          will not pursue 1/99
</TABLE>
                                    Page 7

<PAGE>

                              ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
CASE NO.  DISCLOSURE DATE                TITLE                  STATUS   OWNER           REMARKS           CLIENT     LICENSE INFO
<S>       <C>              <C>                                 <C>       <C>    <C>                        <C>     <C>
 12543            3/24/97  Combinatorial Chemistry On A         Closed   ORCHI  Sent to Orchid 8/98;       ORCHI   Sarnoff has a
                           Chip: Catalysis                                      Orchid not interested              license outside
                                                                                10/26/98                           FOU; SKB has a
                                                                                                                   license
 12544            3/27/97  Horizontal Capillary Break And      Combined  DSRC   Combined into 12385        ORCHI   Orchid and SKB
                           Method To Reset It Using Gas                                                            have licenses
                           Pressure Supplied By A Gas
                           Distribution Network
 12546            3/31/97  All Direct Feed Synthesis System:   Combined  DSRC   Combined into 12520        ORCHI   Orchid and SKB
                           Applications To Peptides And                                                            have licenses
                           Oligonucleotides
 12548             4/2/97  Solution-Phase Combinatorial         Closed   ORCHI  Sent to Orchid 8/98;       ORCHI   Sarnoff has a
                           Chemistry In The Orchid Synthesis                    Orchid will file (11/98)           license outside
                           System                                                                                  FOU; SKB has a
                                                                                                                   license
 12556            4/22/97  Syringe Pump Sample Prep System      Filed    DSRC   Sent to Orchid 8/98;        NIST   U.S. GOV. has a
                                                                                Requested extension                license;
                                                                                until 11/30/98; Orchid             Intelecast Ex. C,
                                                                                will not pursue                    Licensed
                                                                                10/26/98; Notice sent to           Technologies,
                                                                                SPS 10/29/98; Sent to US           Non-Exclusive,
                                                                                GOV; Sarnoff has a                 Non-Compete
                                                                                license back; Sarnoff
                                                                                files a Provisional
                                                                                11/4/98; 12824P combined
                                                                                into this 111(a)
 12560            4/25/97  Input Configuration For              Closed   ORCHI  Sent to Orchid 8/98;       ORCHI   Sarnoff has a
                           "Capillary Reset" Gas                                Orchid not interested              license outside
                                                                                10/26/98                           FOU; SKB has a
                                                                                                                   license
 12562            4/28/97  A Novel Screening Approach For       Closed   ORCHI  12650 combined into this    NONE   Sarnoff has a
                           Drug Discovery: Cell Culture                         case; Sent to Orchid               license outside
                           Microarray                                           8/98; Orchid will not              FOU
                                                                                file (11/98)
 12564            4/28/97  Passive And Active Matrix            Filed    DSRC                               NONE   None
                           Multi-Element Print Heads
 12572            5/12/97  Electrohydrodynamic Pumping Of       Closed   DSRC                               NONE   None
                           Pigment Dispersions In Organic
                           Solvents
 12590            5/21/97  Microfluidic Area Array Printer      Filed    DSRC   Provisional filed 9/29/97   NONE   None
 12646            7/17/97  Microfluidics Enabled, Massively     Closed   ORCHI  Sent to Orchid 8/98;        NONE   Sarnoff has a
                           Parallel, Gene Expression                            Still being reviewed by            license outside
                           Analysis System                                      Orchid (11/98); Orchid             FOU
                                                                                will not pursue 1/99
 12650            7/25/97  A Device For Characterizing The     Combined  DSRC   Combined into 12562         NONE   None
                           Bacterial Uptake Of A Drug
                           Compound By Using The Bacteria As
                           A Chromotography Column Medium
 12656            7/30/97  Stabilized Electro-Osmotic           Closed   U.S.   Sent to Orchid 8/98;       DARPA   U.S. GOV. has a
                           Micropump                                            Orchid will handle                 license; Sarnoff
                                                                                10/7/98; Orchid decides            has a license
                                                                                not to file 5/99;                  outside FOU
                                                                                Notified SPS 5/99
 12658            7/31/97  Inter-Leaved uFluidic Mixer          Closed   U.S.   Sent to Orchid 8/98;       DARPA   U.S. GOV. has a
                                                                                Orchid will handle                 license; Sarnoff
                                                                                10/7/98; Orchid decides            has a license
                                                                                not to file 5/99; Sent             outside FOU
                                                                                to SPS 5/99
 12666            8/11/97  Compact Multi-Tube Ferrule           Closed   ORCHI  Sent to Orchid 8/98;       ORCHI   Sarnoff has a
                           Interconnect                                         Orchid not interested              license outside
                                                                                10/26/98                           FOU; SKB has a
                                                                                                                   license
 12668            8/13/97  An Elastomeric Plate For The         Closed   ORCHI  Combined into 12687        ORCHI   Sarnoff has a
                           Orchid Cassette Assembly                             disclosure; Orchid not             license outside
                                                                                interested 10/26/98                FOU; SKB has a
                                                                                                                   license
 12670            8/13/97  Pulsed Fluid Pumping In               Sold    ORCHI  Sent to Orchid 4/98;       DARPA   U.S. Gov. has a
                           Microfabricated Devices                              Must file by 10/8/99;              license; Sarnoff
                                                                                Orchid will handle                 has a license
                                                                                10/7/98                            outside FOU
</TABLE>
                                    Page 8

<PAGE>

                              ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
CASE NO.  DISCLOSURE DATE                TITLE                  STATUS   OWNER           REMARKS           CLIENT     LICENSE INFO
<S>       <C>              <C>                                 <C>       <C>    <C>                        <C>     <C>
 12677            8/19/97  Electrohydrodynamic Trap To Seize    Closed   ORCHI  Sent to Orchid 8/98;       ORCHI   Sarnoff has a
                           Beads, Bacteria, Cells And,                          Orchid not interested              license outside
                           Dielectric Objects In Channels                       10/26/98                           FOU; SKB has a
                           And Reaction Cells in m Structures                                                      license
 12678            8/19/97  Integrated Electroosmotic Pump        Sold    ORCHI  Filed by Orchid            ORCHI   Sarnoff has a
                           And Capillary Break                                                                     license outside
                                                                                                                   FOU; SKB has a
                                                                                                                   license
 12687            8/25/97  Planer Seal Fabrication By           Closed   ORCHI  12668 combined into this   ORCHI   Sarnoff has a
                           Pattern Transfer Process                             case; Sent to Orchid               license outside
                                                                                8/98; Orchid not                   FOU; SKB has a
                                                                                interested 10/26/98                license
 12694             9/4/97  High Density Multi-Tube              Closed   ORCHI  Sent to Orchid 8/98;       ORCHI   Sarnoff has a
                           Ferrule-Less Interconnect                            Orchid not interested              license outside
                                                                                10/26/98                           FOU; SKB has a
                                                                                                                   license
 12706            9/12/97  A Method For Controlling The          Sold    ORCHI  Sent to Orchid 8/98;       DARPA   U.S. GOV. has a
                           Traffic Of Reagents Flowing                          Must file by 9/23/99;              license; Sarnoff
                           Through Channels In Microdevices                     Orchid will handle                 has a license
                           By Using Several Alternating                         10/7/98                            outside FOU
                           Phases Of Pumping
 12710            9/15/97  Check Valve For Microfluidics        Closed   U. S.  Sent to Orchid 8/98;       DARPA   Sarnoff has a
                                                                                Orchid will not pursue             license outside
                                                                                9/30/98; Notice to SPS             FOU
                                                                                sent 10/5/98; Sent to US
                                                                                GOV; Sarnoff has a
                                                                                license back
 12725           10/13/97  Interface And Back-Plane             Closed   ORCHI  Sent to Orchid 8/98;       ORCHI   Sarnoff has a
                           Interconnects For Integrated                         Orchid will file (11/98)           license outside
                           Fluidic/Optic/Electronic Devices,                                                       FOU; SKB has a
                           Micro-To-Macro Interface                                                                license
 12726           10/13/97  Matrix Electronic Addressing Of      Closed   ORCHI  Same invention as 12564    ORCHI   Sarnoff has a
                           EHD Pumps                                            of Kane (4/28/97)                  license outside
                                                                                                                   FOU; SKB has a
                                                                                                                   license
 12753            11/7/97  Fluidic Transmission Lines and        Sold    ORCHI  Filed by Orchid 7/9/99     ORCHI   Sarnoff has a
                           Waveguides:  AC Fluidics                                                                license outside
                                                                                                                   FOU
 12762           11/14/97  EHD Positional Pumping With          Closed   ORCHI  Sent to Orchid 8/98;        NONE   Sarnoff has a
                           Multiple Fluids                                      Orchid will not file               license outside
                                                                                (11/98)                            FOU
 12783           11/24/97  Chemical Reactor For Liquid And      Closed   ORCHI  Sent to Orchid 8/98;       ORCHI   Sarnoff has a
                           Solid Phase Chemistries Suitable                     Orchid will file (11/98)           license outside
                           For High Temperature And                                                                FOU
                           Pressures In Microarray Formats
 12814           12/15/97  Innovative Microfabricated           Closed   U. S.  Sent to Orchid 8/98;       DARPA   Sarnoff has a
                           Geometries To Enhance                                Orchid will not pursue             license outside
                           Microfluidic Processes, Including                    9/30/98; Notice to SPS             FOU
                           Chemical Reactions, Mixing,                          sent 10/5/98; Sent to US
                           Particle Capture And Material                        GOV; Sarnoff has a
                           Transport                                            license back
 12815           12/15/97  Entrapment Device For Particles      Closed   U. S.  Sent to Orchid 8/98;       DARPA   Sarnoff has a
                           In Micro-Fluidic Channels                            Orchid will not pursue             license outside
                                                                                9/30/98; Notice to SPS             FOU
                                                                                sent 10/5/98; Sent to US
                                                                                GOV; Sarnoff has a
                                                                                license back
 12816           12/15/97  Physical Entrapment Device            Sold    ORCHI  Sent to Orchid 8/98;       DARPA   U.S. GOV. has a
                                                                                Must file by 8/31/99;              license; Sarnoff
                                                                                Orchid will handle                 has a license
                                                                                10/7/98; Orchid will               outside FOU
                                                                                file 5/99
</TABLE>
                                    Page 9

<PAGE>

                              ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
CASE NO.  DISCLOSURE DATE                TITLE                  STATUS   OWNER           REMARKS           CLIENT     LICENSE INFO
<S>       <C>              <C>                                 <C>       <C>    <C>                        <C>     <C>
 12817           12/15/97  Microfluidics-Enabled Polymerase     Closed   U. S.  Sent to Orchid 8/98;       DARPA   Sarnoff has a
                           Chain Reaction Protocol And Device                   Orchid will not pursue             license outside
                                                                                9/30/98; Notice to SPS             FOU
                                                                                sent 10/5/98; Sent to US
                                                                                GOV; Sarnoff has a
                                                                                license back
 12822           12/18/97  Microfluidic Reaction Chamber For    Closed   U.S.   Sent to Orchid 8/98;       DARPA   Sarnoff has a
                           Paramagnetic Bead Capture And                        Must file by 8/31/99;              license outside
                           Chemical Processing                                  Orchid will handle                 FOU
                                                                                10/7/98; Orchid will not
                                                                                file 5/99; Notified SPS
                                                                                5/99
 12855            1/30/98  Microfluidics Differential           Closed   ORCHI  Sent to Orchid 8/98;        NONE   Sarnoff has a
                           Display Chip                                         Still being reviewed by            license outside
                                                                                Orchid (11/98)                     FOU
 12860             2/3/98  A Microfluidic, Immobilized          Closed   U. S.  Sent to Orchid 8/98;       DARPA   Sarnoff has a
                           Enzyme Column For Replicating                        Orchid will not pursue             license outside
                           Nucleic Acid Sequences                               9/30/98; Notice to SPS             FOU
                                                                                sent 10/5/98; Sent to US
                                                                                GOV; Sarnoff has a
                                                                                license back.
 12912             3/5/98  Back And Forth, Continuous Flow,     Closed   U. S.  Sent to Orchid 8/98;       DARPA   Sarnoff has a
                           DNA Amplification                                    Orchid will not pursue             license outside
                                                                                9/30/98; Notice to SPS             FOU; SPAWAR/DAR
                                                                                sent 10/5/98; Sent to US
                                                                                GOV; Sarnoff has a
                                                                                license back.
 12959            3/26/98  Continuous Flow Ligation Rapid       Closed   U.S.   Sent to Orchid 8/98;       DARPA   U.S. GOV. has a
                           Thermal Multi-Cycle Device                           Orchid will not pursue             license; Sarnoff
                                                                                9/30/98; Notice to SPS             has a license
                                                                                sent 10/5/98; Sent to US           outside FOU
                                                                                GOV; Sarnoff has a
                                                                                license back
 12968            3/31/98  Electrohydrodynamic Switch For        Sold    ORCHI  Filed by Orchid            ORCHI   Sarnoff has a
                           Fluid Control And Delivery In                                                           license outside
                           Microfluidic Structures                                                                 FOU
 13005            4/24/98  Continuous Flow Parallel DNA          Sold    ORCHI  Sent to Orchid 8/98;       DARPA   U.S. GOV. has a
                           Amplification Microfluidic Device                    Orchid will handle                 license; Sarnoff
                                                                                10/7/98; Orchid will               has a license
                                                                                file 5/99; Must file by            outside FOU
                                                                                8/31/99
 13021             5/5/98  A Method To Fabricate                Closed   ORCHI  Sent to Orchid 8/98;        NONE   Sarnoff has a
                           Elastomer/Glass Hybrid For                           Orchid will not file               license outside
                           Microfluidics                                        (11/98)                            FOU
 13051            5/28/98  Compact Device For Nucleic Acid       Sold    ORCHI  Sent to Orchid 8/98;       DARPA   U.S. GOV. has a
                           Amplification                                        Orchid will handle                 license; Sarnoff
                                                                                10/7/98; Orchid will               has a license
                                                                                file 5/99; Must file by            outside FOU
                                                                                8/31/99
 13106             7/8/98  Indirect Electro-Pumping Of Fluids   Closed   ORCHI  Sent to Orchid 11/98;      DARPA   U.S. Gov. has a
                                                                                Orchid not pursuing                license; Sarnoff
                                                                                (3/18/99); Notified SPS            has a license
                                                                                4/16/99                            outside FOU
 13173             9/1/98  Micro-Elastomeric Seal, Rapid         Sold    ORCHI  Sent to Orchid 9/98;        NONE   Sarnoff has a
                           Production Process                                   Orchid filed 5/19/99               license outside
                                                                                                                   FOU
 13176             9/4/98  Alignment Method For Facing          Closed   ORCHI  Sent to Orchid 9/98;       ORCHI   Sarnoff has a
                           Features On Mating Items                             Orchid will not file               license outside
                                                                                (11/98); Orchid not                FOU
                                                                                interested 7/23/99
 13177             9/4/98  Method To Detect Nucleic Acid        Closed   ORCHI  Sent to Orchid 9/98;       ORCHI   Sarnoff has a
                           Sequences With Amplification                         Still being reviewed by            license outside
                           Probes In Microchannels                              Orchid (11/98); Orchid             FOU
                                                                                will not pursue 1/99
</TABLE>
                                    Page 10

<PAGE>

                              ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
CASE NO.  DISCLOSURE DATE                TITLE                  STATUS   OWNER           REMARKS           CLIENT     LICENSE INFO
<S>       <C>              <C>                                 <C>       <C>    <C>                        <C>     <C>
 13184             9/8/98  Reaction Wells For Microchemistry    Closed   ORCHI  Sent to Orchid 1/14/99;    ORCHI   Sarnoff has a
                           Systems                                              Orchid will not file               license outside
                                                                                this disclosure (per               FOU
                                                                                KNash 11/29/99)
 13185             9/8/98  Electrohydrodynamic Pumping Of       Closed   ORCHI  Sent to Orchid 1/14/99     ORCHI   Sarnoff has a
                           Aqueous Solutions                                                                       license outside
                                                                                                                   FOU
 13186             9/8/98  Optimized Electrohydrodynamic        Closed   ORCHI  Sent to Orchid 1/14/99     ORCHI   Sarnoff has a
                           Pump Configuration                                                                      license outside
                                                                                                                   FOU
 13190            9/10/98  Flow Sensing By Detecting A Fluid    Closed   ORCHI  Sent to Orchid 11/98;      ORCHI   Sarnoff has a
                           Transported Pulse                                    Orchid not pursuing                license outside
                                                                                (3/18/99)                          FOU
 13191            9/10/98  Integrated Micro-Sieve Or Filter     Closed   ORCHI  Sent to Orchid 1/14/99;    ORCHI   Sarnoff has a
                           And Method To Seize Particles In                     Orchid not pursuing                license outside
                           Microfluidic Devices                                 (3/18/99)                          FOU
 13192            9/10/98  An Electrohydrodynamic Active        Closed   ORCHI  Sent to Orchid 1/14/99     ORCHI   Sarnoff has a
                           Valve To Control Fluid Flow Of                                                          license outside
                           Organic Solvents And Reagents,                                                          FOU
                           Aqueous Solution, Strong
                           Electrolytes And Hydrocarbons In
                           Microfluidic Devices
 13193            9/10/98  A Fluid Gun:  A New                  Closed   ORCHI  Sent to Orchid 1/14/99     ORCHI   Sarnoff has a
                           Electrohydrodynamic Microfluidic                                                        license outside
                           Pressure Generation Device With                                                         FOU
                           De-Coupled Charge Creation And
                           Pressure Generation Fields
 13195             9/4/98  A Device For Electronic Pumping      Closed   ORCHI  Sent to Orchid 1/14/99     ORCHI   Sarnoff has a
                           Of Aqueous Solutions                                                                    license outside
                                                                                                                   FOU
 13196            9/11/98  Cleavage System For Performing       Closed   ORCHI  Sent to Orchid 1/14/99;    ORCHI   Sarnoff has a
                           Microchemistry On A Chip                             Orchid not interested              license outside
                                                                                7/23/99                            FOU
 13197            9/11/98  Reagent Reservoir System For A       Closed   ORCHI  Sent to Orchid 1/14/99;    ORCHI   Sarnoff has a
                           Microchemistry Chip                                  Orchid not interested              license outside
                                                                                7/23/99                            FOU
 13198            9/11/98  Mechanical Alignment Method For      Closed   ORCHI  Sent to Orchid 1/14/99;    ORCHI   Sarnoff has a
                           Fluidic Microchips                                   Orchid not interested              license outside
                                                                                7/23/99                            FOU
 13199            9/11/98  High Density Valving System For      Closed   ORCHI  Sent to Orchid 1/14/99;    ORCHI   Sarnoff has a
                           Microchemistry Chip                                  Orchid not interested              license outside
                                                                                7/23/99                            FOU
 13200            9/11/98  Button Electrode For A               Closed   ORCHI  Sent to Orchid 1/14/99;    ORCHI   Sarnoff has a
                           Microchemistry Chip                                  Orchid not pursuing                license outside
                                                                                (3/18/99)                          FOU
 13201            9/14/98  A Method To Balance The Fluid         Sold    ORCHI  Filed by Orchid            ORCHI   Sarnoff has a
                           Distribution In A Network For                                                           license outside
                           Pressure Pumping                                                                        FOU
 13209            9/16/98  A Microfluidic Continuous Flow       Filed    ORCHI  Sent to Orchid 9/98;       DARPA   U.S. GOV. has a
                           Approach To Detect And Identify                      Still being reviewed by            license; Sarnoff
                           Biological Agents By Nucleic Acid                    Orchid (11/98); Orchid             has a license
                           Target Signatures                                    will pursue 1/99; Orchid           outside FOU
                                                                                filed Provisional 3/18/99
 13210            9/16/98  Use Of Caged Molecules In            Filed    ORCHI  Provisional filed by       DARPA   U.S. Gov. has a
                           Microfluidic Devices For Spatial                     Orchid 3/18/99; Orchid             license; Sarnoff
                           And Temporal Control Of Reactions                    abandons this                      has a license
                                                                                Provisional and U.S.               outside FOU
                                                                                Gov. notified 1/12/00
 13216            9/18/98  Method Of Using The Reaction Well    Closed   ORCHI  Sent to Orchid 9/98;       ORCHI   Sarnoff has a
                           Surface As The Solid Support For                     Still being reviewed by            license outside
                           Solid Phase Organic Synthesis:                       Orchid (11/98)                     FOU
                           Elimination Of The Need To Load
                           Current Forms Of Solid Supports
                           In The Orchid Well Plate
</TABLE>
                                    Page 11

<PAGE>

                              ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
CASE NO.  DISCLOSURE DATE                TITLE                  STATUS   OWNER           REMARKS           CLIENT     LICENSE INFO
<S>       <C>              <C>                                 <C>       <C>    <C>                        <C>     <C>
 13217            9/18/98  Surface Chemistries For              Closed   ORCHI  Sent to Orchid 9/98;       ORCHI   Sarnoff has a
                           Applications In Microdevices                         Still being reviewed by            license outside
                                                                                Orchid (11/98); Orchid             FOU
                                                                                not interested 7/23/99
 13218            9/18/98  Cleaning System For A                Closed   ORCHI  Sent to Orchid 9/98;       ORCHI   Sarnoff has a
                           Microchemistry Chip                                  Orchid will not file               license outside
                                                                                (11/98)                            FOU
 13221            9/18/98  Electrical Isolation In              Closed   ORCHI  Sent to Orchid 1/14/99     ORCHI   Sarnoff has a
                           Microfluidic Structures                                                                 license outside
                                                                                                                   FOU
 13231            9/22/98  Microfabricated Devices For DNA      Closed   ORCHI  Sent to Orchid 1/14/99;    ORCHI   Sarnoff has a
                           Analyses Using Dynamic                               Orchid will file 2/1/99            license outside
                           Hybridization                                                                           FOU
 13234            9/25/98  Amplification Device In A High       Closed   ORCHI  Sent to Orchid 1/14/99     ORCHI   Sarnoff has a
                           Throughput, Compact, Arrayed,                                                           license outside
                           Microscale Format                                                                       FOU
 13236            9/25/98  Cleaning Of Microfluidic Chips By    Closed   ORCHI  Sent to Orchid 1/14/99;    ORCHI   Sarnoff has a
                           Vacuuming Individual Fluid Drops                     Orchid not pursuing                license outside
                                                                                (3/18/99)                          FOU
 13237            9/25/98  Enabling Uniform Cell Filling In     Closed   ORCHI  Sent to Orchid 1/14/99     ORCHI   Sarnoff has a
                           Pressure Fed Systems                                                                    license outside
                                                                                                                   FOU
 13238            9/25/98  Five-Solvent Chip Cleaning For       Closed   ORCHI  Sent to Orchid 1/14/99;    ORCHI   Sarnoff has a
                           Reproduceable Electronic Pumping                     Orchid not pursuing                license outside
                                                                                (3/18/99)                          FOU
 13239            9/25/98  Methods For Separating The Well      Closed   ORCHI  Sent to Orchid 1/14/99;    ORCHI   Sarnoff has a
                           Plate/ Synthesis Chip Assembly                       Orchid not interested              license outside
                                                                                7/23/99                            FOU
 13240            9/25/98  Control Of Pressure And Filling      Closed   ORCHI  Sent to Orchid 1/14/99;    ORCHI   Sarnoff has a
                           In Microfluidic Chips                                Orchid not pursuing                license outside
                                                                                (3/18/99)                          FOU
 13244            9/28/98  A Method To Improve Feature          Closed   ORCHI  Sent to Orchid 1/14/99;    ORCHI   Sarnoff has a
                           Formation In Substrates Using                        Orchid not interested              license outside
                           Surface/ Bulk Modifications,                         7/23/99                            FOU
                           Surface Coatings, And Fabricated
                           Substrates
 13250            9/30/98  Indirect Electronic Pressure         Closed   ORCHI  Sent to Orchid 1/14/99;    DARPA   U.S. GOV. has a
                           Pumping Of Fluids                                    Orchid not pursuing                license; Sarnoff
                                                                                (3/18/99); Notified                has a license
                                                                                Government of our                  outside FOU
                                                                                decision not to file
                                                                                (3/18/99)
 13251            9/30/98  Vertically Stacked Interleaved       Closed   ORCHI  Sent to Orchid 1/14/99;    DARPA   U.S. GOV. has a
                           Layer Micro-Fluidic Mixer                            Orchid not pursuing                license; Sarnoff
                                                                                (3/18/99); Notified                has a license
                                                                                Government of our                  outside FOU
                                                                                decision not to file
                                                                                (3/18/99)
 13253            10/1/98  Effluent System For Performing       Closed   ORCHI  Sent to Orchid 1/14/99;    ORCHI   Sarnoff has a
                           Microchemistry On A Chip                             Orchid not interested              license outside
                                                                                7/23/99                            FOU
 13339           11/16/98  The Method And Process Of Dynamic    Closed   ORCHI  Sent to Orchid 1/14/99;    ORCHI   Sarnoff has a
                           DNA Hybridization                                    Orchid will file 2/1/99            license outside
                                                                                                                   FOU
 13436             2/1/99  Method For Combining Reagents In     Closed   U. S.  Must file by 2/3/2000;     DARPA   Sarnoff has a
                           A Microfluidic Chamber                               Sent to Orchid 4/99;               license; U.S.
                                                                                Orchid not interested              Gov. has a
                                                                                11/11/99; SPS notified             license
                                                                                11/11/99
 13437             2/1/99  Vertical Bead Separation Method      Closed   U. S.  Must file by 2/3/2000;     DARPA   Sarnoff has a
                           For Glass Microchannels                              Sent to Orchid 4/99;               license; U.S.Gov.
                                                                                Orchid not interested              has a license
                                                                                11/11/99; SPS notified
                                                                                11/11/99
</TABLE>
                                    Page 12

<PAGE>

                              ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
CASE NO.  DISCLOSURE DATE                TITLE                  STATUS   OWNER           REMARKS           CLIENT     LICENSE INFO
<S>       <C>              <C>                                 <C>       <C>    <C>                        <C>     <C>
 13547            4/15/99  In Vitro Reconstituted Pathways       Open    DSRC   Must file by 4/19/2000;    DARPA   U.S. Gov. has a
                           Implemented In Microfluidic                          Requested 1 mon.                   license
                           Devices For Use In Drug                              extension from SPS
                           Discovery, Diagnostics And                           3/9/00 (per AH); Sent to
                           Toxicology                                           Orchid 3/9/00
 13619            6/23/99  Controlling Surface Wetting          Closed   DSRC   Sent to Orchid 7/6/99       NONE   None
                           Characteristics-Applications In
                           Microdevices
</TABLE>
                                    Page 13

<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  11402          EP      PCT     Sold    A Partitioned        95940666.1   11/9/95   0 808 456             ORCHI   11404, 11512,
                                         Microelectronic                                                           11577 & 11638
                                         Device Array                                                              combined into
                                                                                                                   this case;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11402          US      ORD     Sold    Partitioned           08/338703  11/10/94   5,585,069   12/17/96  ORCHI   11404, 11512,
                                         Microelectronic                                                           11577 & 11638
                                         And Fluidic Device                                                        combined into
                                         Array For Clinical                                                        this case;
                                         Diagnostics And                                                           Related Cases:
                                         Chemical Synthesis                                                        Divisionals
                                                                                                                   08/454771,
                                                                                                                   08/454781,
                                                                                                                   08/454774,
                                                                                                                   08/454772 and
                                                                                                                   08/454768; PTO
                                                                                                                   notified of
                                                                                                                   merger 4/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11402          KR      PCT     Sold    A Partitioned         703200/97   11/9/95                         ORCHI   11404, 11512,
                                         Microelectronic                                                           11577 & 11638
                                         Device Array                                                              combined into
                                                                                                                   this case; CPA
                                                                                                                   amend claims
                                                                                                                   see 11402 EPO;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11402          CA      PCT     Sold    A Partitioned          2205066    11/9/95                         ORCHI   11404, 11512,
                                         Microelectronic                                                           11577 & 11638
                                         Device Array                                                              combined into
                                                                                                                   this case;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11402          AU      PCT     Sold    A Partitioned          4233796    11/9/95     705659     9/2/99   ORCHI   11404, 11512,
                                         Microelectronic                                                           11577 & 11638
                                         Device Array                                                              combined into
                                                                                                                   this case;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11402          SG      PCT     Sold    A Partitioned         9701985-5   11/9/95     41056     7/20/99   ORCHI   11404, 11512,
                                         Microelectronic                                                           11577 & 11638
                                         Device Array                                                              combined into
                                                                                                                   this case;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11402          JP      PCT     Sold    A Partitioned         8-516200    11/9/95                         ORCHI   11404, 11512,
                                         Microelectronic                                                           11577 & 11638
                                         Device Array                                                              combined into
                                                                                                                   this case;  CPA
                                                                                                                   amend claims
                                                                                                                   see 11402 EPO;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11402          WO      ORD  Abandoned  A Partitioned         95/14589    11/9/95                          DSRC   11404, 11512,
                                         Microelectronic                                                           11577 & 11638
                                         Device Array                                                              combined into
                                                                                                                   this case
                                                                                                                   EP95940666.1;
                                                                                                                   Designated:
                                                                                                                   All Countries
</TABLE>

                                     Page 1
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  11402    A     US      DIV     Sold    Partitioned           08/455016   5/31/95   5,593,838   1/14/97   ORCHI   11404, 11512,
                                         Microelectronic                                                           11577 & 11638
                                         Device Array                                                              combined into
                                                                                                                   this case;
                                                                                                                   Div. of 11402;
                                                                                                                   PTO notified of
                                                                                                                   merger 4/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11402    B     US      DIV  Abandoned  A Partitioned         08/454771   5/31/95                          DSRC   11404, 11512,
                                         Microelectronic                                                           11577 & 11638
                                         Device Array                                                              combined into
                                                                                                                   this case;
                                                                                                                   Div. of 11402
  11402    BA    US      FWC     Sold    A Partitioned         08/789739   1/27/97   5,863,708   1/26/99   ORCHI   11404, 11512,
                                         Microelectronic                                                           11577 & 11638
                                         Device Array                                                              combined into
                                                                                                                   this case;  FWC
                                                                                                                   of 11402B which
                                                                                                                   is Div. of
                                                                                                                   11402; PTO
                                                                                                                   notified of
                                                                                                                   merger 8/98;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11402    C     US      DIV     Sold    Method Of             08/454781   5/31/95   5,643,738    7/1/97   ORCHI   11404, 11512,
                                         Synthesis Of                                                              11577 & 11638
                                         Plurality Of                                                              combined into
                                         Compounds In                                                              this case;
                                         Parallel Using A                                                          Div. of 11402;
                                         Partitioned Solid                                                         PTO notified of
                                         Support                                                                   merger 4/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11402    D     US      DIV     Sold    A Partitioned         08/454774   5/31/95   5,681,484   10/28/97  ORCHI   11404, 11512,
                                         Microelectronic                                                           11577 & 11638
                                         Device Array                                                              combined into
                                                                                                                   this case;
                                                                                                                   Div. of 11402;
                                                                                                                   PTO notified of
                                                                                                                   merger 4/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11402    E     US      DIV  Abandoned  A Partitioned         08/454772   5/31/95                          DSRC   11404, 11512,
                                         Microelectronic                                                           11577 & 11638
                                         Device Array                                                              combined into
                                                                                                                   this case;
                                                                                                                   Div. of 11402;
                                                                                                                   FWC filed
  11402    EA    US      FWC     Sold    Partitioned           08/705058   8/29/96   5,755,942   5/26/98   ORCHI   11404, 11512,
                                         Microelectronic                                                           11577 & 11638
                                         Device Array                                                              combined into
                                                                                                                   this case;  FWC
                                                                                                                   of 11402E which
                                                                                                                   is a Div. of
                                                                                                                   11402; PTO
                                                                                                                   notified of
                                                                                                                   merger 4/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11402    F     US      DIV  Abandoned  A Partitioned         08/454768   5/31/95                          DSRC   11404, 11512,
                                         Microelectronic                                                           11577 & 11638
                                         Device Array                                                              combined into
                                                                                                                   this case;
                                                                                                                   Abandoned for
                                                                                                                   FWC;  Div. of
                                                                                                                   11402

</TABLE>

                                     Page 2
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  11402    FA    US      FWC     Sold    Immunilogical         08/914941   8/20/97   5,858,804   1/12/99   ORCHI   11404, 11512,
                                         Assay Conducted In                                                        11577 & 11638
                                         A Microlaboratory                                                         combined into
                                         Array                                                                     this case; Div.
                                                                                                                   of 11402;  FWC
                                                                                                                   of 11402F;
                                                                                                                   Merger doc.
                                                                                                                   submitted with
                                                                                                                   Issue Fee
                                                                                                                   Trans. 8/98;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11402    G     WO      ORD  Abandoned  Liquid                95/14590    11/9/95                          DSRC   CIP of 11402,
                                         Distribution System                                                       11717 and 11740
                                                                                                                   11404, 11512,
                                                                                                                   11577 & 11638
                                                                                                                   combined into
                                                                                                                   this case;
                                                                                                                   Designated:
                                                                                                                   All Countries
  11402    G     KR      PCT   Pending   Liquid                97/703201   11/9/95                          DSRC   CIP of 11402,
                                         Distribution System                                                       11717 and 11740
                                                                                                                   11404, 11512,
                                                                                                                   11577 & 11638
                                                                                                                   combined into
                                                                                                                   this case; CPA
                                                                                                                   amend claims
                                                                                                                   see11402 EPO;
                                                                                                                   Examination
                                                                                                                   requested 10/98
  11402    G     JP      PCT   Pending   Liquid                8-516201    11/9/95                          DSRC   CIP of 11402,
                                         Distribution System                                                       11717 and 11740
                                                                                                                   11404, 11512,
                                                                                                                   11577 & 11638
                                                                                                                   combined into
                                                                                                                   this case;  CPA
                                                                                                                   amend claims
                                                                                                                   see 11402 EPO;
                                                                                                                   Examination
                                                                                                                   requested 10/98
  11402    G     AU      PCT   Granted   Liquid                 705351     11/9/95   4,152,396   8/26/99    DSRC   CIP of 11402,
                                         Distribution System                                                       11717 and 11740
                                                                                                                   11404, 11512,
                                                                                                                   11577 & 11638
                                                                                                                   combined into
                                                                                                                   this case
  11402    G     CA      PCT   Pending   Liquid                 2204912    11/9/95                          DSRC   CIP of 11402,
                                         Distribution System                                                       11717 and 11740
                                                                                                                   11404, 11512,
                                                                                                                   11577 & 11638
                                                                                                                   combined into
                                                                                                                   this case
  11402    G     EP      PCT   Pending   Liquid               95939862.9   11/9/95                          DSRC   CIP of 11402,
                                         Distribution System                                                       11717 and 11740
                                                                                                                   11404, 11512,
                                                                                                                   11577 & 11638
                                                                                                                   combined into
                                                                                                                   this case
  11402    G     SG      PCT   Pending   Liquid                9701983-0   11/9/95                          DSRC   CIP of 11402,
                                         Distribution System                                                       11717 and 11740
                                                                                                                   11404, 11512,
                                                                                                                   11577 & 11638
                                                                                                                   combined into
                                                                                                                   this case
  11402    G     US      CIP   Granted   Liquid                08/556036   11/9/95   5,846,396   12/8/98    DSRC   CIP of 11402,
                                         Distribution System                                                       11717 and 11740
                                                                                                                   11404, 11512,
                                                                                                                   11577 & 11638
                                                                                                                   combined into
                                                                                                                   this case; PTO
                                                                                                                   notified of
                                                                                                                   merger 4/99

</TABLE>

                                     Page 3
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  11637          US      ORD     Sold    System For Liquid     08/745767   11/8/96   5,958,344   9/28/99   ORCHI   11749 & 11746
                                         Distribution                                                              combined into
                                                                                                                   this case, part
                                                                                                                   of this also in
                                                                                                                   11402G
                                                                                                                   provisional;
                                                                                                                   No Foreign
                                                                                                                   Filing;
                                                                                                                   Related Cases:
                                                                                                                   11402G  11637P;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11637    PR    US      PRO  Abandoned  System For Liquid     60/006409   11/9/95                          DSRC   into 11749 &
                                         Distribution                                                              11746 combined
                                                                                                                   into this case
                                                                                                                   part of this
                                                                                                                   also in
                                                                                                                   11402G
                                                                                                                   provisional;
                                                                                                                   No Foreign
                                                                                                                   Filing;  11999
                                                                                                                   Rule 111(a)
                                                                                                                   case filed
                                                                                                                   11402G
  11717          US      ORD     Sold    Apparatus And         08/469238   6/6/95    5,632,876   5/27/97   ORCHI   See 11752 and
                                         Methods For                                                               11760;  No
                                         Controlling Fluid                                                         Foreign Filing;
                                         Flow In                                                                   PTO notified of
                                         Microchannels                                                             merger 4/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11717    A     US      CIP   Granted   Electrokinetic        08/556423   11/9/95   5,858,193   1/12/99    DSRC   See 11740-,
                                         Pumping                                                                   11752 and
                                                                                                                   11760;  Related
                                                                                                                   Cases:  CIP of
                                                                                                                   11717 and
                                                                                                                   11740; PTO
                                                                                                                   notified of
                                                                                                                   merger 8/98
  11717    A     CA      PCT   Pending   Electrokinetic        2,223,099   11/9/95                          DSRC   11717, 11740,
                                         Pumping                                                                   11752 and 11760
                                                                                                                   combined into
                                                                                                                   this case;
                                                                                                                   Related Cases:
                                                                                                                   CIP of 11717
                                                                                                                   and 11740
  11717    A     KR      PCT   Pending   Electrokinetic        97/708874   11/9/95                          DSRC   11717, 11740,
                                         Pumping                                                                   11752 and 11760
                                                                                                                   combined into
                                                                                                                   this case;
                                                                                                                   Related Cases:
                                                                                                                   CIP of 11717
                                                                                                                   and 11740
  11717    A     WO      ORD  Abandoned  Electrokinetic        95/14586    11/9/95                          DSRC   11717, 11740,
                                         Pumping                                                                   11752 and
                                                                                                                   11760
                                                                                                                   combined into
                                                                                                                   this case;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   Related Cases:
                                                                                                                   CIP of 11717
                                                                                                                   and 11740
  11717    A     JP      PCT   Pending   Electrokinetic        9-500,408   11/9/95                          DSRC   11717, 11740,
                                         Pumping                                                                   11752 and 11760
                                                                                                                   combined into
                                                                                                                   this case;
                                                                                                                   Related Cases:
                                                                                                                   CIP of 11717
                                                                                                                   and 11740
  11717    A     SG      PCT   Pending   Electrokinetic        9705796-2   11/9/95                          DSRC   11717, 11740,
                                         Pumping                                                                   11752 and 11760
                                                                                                                   combined into
                                                                                                                   this case;
                                                                                                                   Related Cases:
                                                                                                                   CIP of 11717
                                                                                                                   and 11740

</TABLE>

                                     Page 4
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  11717    A     AU      PCT   Pending   Electrokinetic         4233496    11/9/95                          DSRC   11717, 11740,
                                         Pumping                                                                   11752 and 11760
                                                                                                                   combined into
                                                                                                                   this case;
                                                                                                                   Related Cases:
                                                                                                                   CIP of 11717
                                                                                                                   and 11740;
                                                                                                                   Orchid has no
                                                                                                                   interest in
                                                                                                                   filing a
                                                                                                                   divisional
                                                                                                                   application in
                                                                                                                   Australia
                                                                                                                   (9/22/99)
  11717    A     CN      PCT   Pending   Electrokinetic       95197935.3   11/9/95                          DSRC   11717, 11740,
                                         Pumping                                                                   11752 and 11760
                                                                                                                   combined into
                                                                                                                   this case;
                                                                                                                   Related Cases:
                                                                                                                   CIP of 11717
                                                                                                                   and 11740
  11717    A     EP      PCT  Published  Electrokinetic       95940663.8   11/9/95                          DSRC   11717, 11740,
                                         Pumping                                                                   11752 and 11760
                                                                                                                   combined into
                                                                                                                   this case;
                                                                                                                   Related Cases:
                                                                                                                   CIP of 11717
                                                                                                                   and 11740
  11717    B     US      CIP     Sold    Chemical Processes    08/645966   5/10/96   5,985,119   11/16/99  ORCHI   See 11740-,
                                         in a Microfluidic                                                         11752 and
                                         Apparatus                                                                 11760;  Related
                                                                                                                   Cases:  CIP of
                                                                                                                   11717A, 11717
                                                                                                                   and 11740;
                                                                                                                   Merger
                                                                                                                   notification
                                                                                                                   1/20/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11717    B     EP      PCT     Sold    Electrokinetic       97923614.8   5/12/97                         ORCHI   Orchid filed
                                         Pumping                                                                   through
                                                                                                                   National Stages
  11717    B     CA      PCT     Sold    Electrokinetic                    5/12/97                         ORCHI   Orchid filed
                                         Pumping                                                                   through
                                                                                                                   National Stages
  11717    B     WO      ORD  Abandoned  Electrokinetic        97/07880    5/12/97                          DSRC   See 11740-,
                                         Pumping                                                                   11752 and
                                                                                                                   11760; EP
                                                                                                                   application no.
                                                                                                                   97923614.8;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   Related Cases:
                                                                                                                   CIP of 11717A,
                                                                                                                   11717 and
                                                                                                                   11740; Orchid
                                                                                                                   handled
                                                                                                                   National Stages
  11717    C     US      CIP     Sold    Electrokinetic        09/025387   2/18/98                         ORCHI   See 11740,
                                         Pumping                                                                   11752 and
                                                                                                                   11760;  Related
                                                                                                                   Cases:  CIP of
                                                                                                                   11717A and
                                                                                                                   11717B; Offered
                                                                                                                   to Orchid to
                                                                                                                   file PCT 9/98
                                                                                                                   (due 2/18/99);
                                                                                                                   Orchid does not
                                                                                                                   want to file
                                                                                                                   PCT application
                                                                                                                   (2/9/99); AJ
                                                                                                                   late filing
                                                                                                                   response to OA;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99

</TABLE>

                                     Page 5
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  11740          US      ORD     Sold    Method And System     08/483331   6/7/95    5,603,351   2/18/97   ORCHI   11759 combined
                                         For Inhibiting                                                            into this case;
                                         Cross-Contamination                                                       PTO notified of
                                         In Fluids Of                                                              merger 4/99;
                                         Combinatorial                                                             Offered to
                                         Chemistry Device                                                          Orchid 8/15/99;
                                                                                                                   Orchid accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11740          WO      ORD  Abandoned  Method And System     96/08686    6/7/96                           DSRC   All matter
                                         For Inhibiting                                                            contained in
                                         Cross-Contamination                                                       11402G and
                                         In Fluids Of                                                              11717A; 11759
                                         Combinatorial                                                             combined into
                                         Chemistry Device                                                          this case;  No
                                                                                                                   Foreign Filing
  11740    A     US      ORD     Sold    Device For            08/726953   10/7/96   5,980,704   11/9/99   ORCHI   11759 combined
                                         Selective                                                                 into this case;
                                         Distribution Of                                                           Offered to
                                         Liquids                                                                   Orchid 8/15/99;
                                                                                                                   Orchid accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11740    AA    US      DIV   Pending   Device For            09/152861   8/14/98                         ORCHI   Divisional of
                                         Selective                                                                 11740A; Filed
                                         Distribution Of                                                           by Orchid
                                         Liquids
  11772          US      ORD   Granted   Assay System And      08/742317   11/1/96   5,882,903   3/16/99    DSRC   11761, 11845,
                                         Method For                                                                11850 & 11851
                                         Conducting Assays                                                         combined into
                                                                                                                   this case; U.S.
                                                                                                                   GOV. CASE; PTO
                                                                                                                   notified of
                                                                                                                   merger 12/98
  11772          JP      PCT  Abandoned  Assay System And      9-517420    11/1/96                          DSRC   11761, 11845,
                                         Method For                                                                11850 & 11851
                                         Conducting Assays                                                         combined into
                                                                                                                   this case;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   U.S. GOV. CASE;
                                                                                                                   Orchid does not
                                                                                                                   wish to further
                                                                                                                   prosecute
                                                                                                                   (9/30/98); All
                                                                                                                   foreign cases
                                                                                                                   to go abandoned
                                                                                                                   per WJB 9/30/98
  11772          KR      PCT  Abandoned  Assay System And      703287/98   11/1/96                          DSRC   11761, 11845,
                                         Method For                                                                11850 & 11851
                                         Conducting Assays                                                         combined into
                                                                                                                   this case;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   U.S. GOV. CASE;
                                                                                                                   Orchid does not
                                                                                                                   wish to further
                                                                                                                   prosecute
                                                                                                                   (9/30/98)
  11772          EP      PCT  Abandoned  Assay System And     96941947.2   11/1/96                          DSRC   11761, 11845,
                                         Method For                                                                11850 & 11851
                                         Conducting Assays                                                         combined into
                                                                                                                   this case;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   U.S. GOV. CASE;
                                                                                                                   Orchid does not
                                                                                                                   wish to further
                                                                                                                   prosecute
                                                                                                                   (9/30/98); All
                                                                                                                   foreign cases
                                                                                                                   to go abandoned
                                                                                                                   per WJB 9/30/98

</TABLE>

                                     Page 6
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  11772          SG      PCT  Abandoned  Assay System And      9802585-1   11/1/96                          DSRC   11761, 11845,
                                         Method For                                                                11850 & 11851
                                         Conducting Assays                                                         combined into
                                                                                                                   this case;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   U.S. GOV. CASE;
                                                                                                                   Orchid does not
                                                                                                                   wish to further
                                                                                                                   prosecute
                                                                                                                   (9/30/98) - All
                                                                                                                   foreign cases
                                                                                                                   to go abandoned
                                                                                                                   per WJB 9/30/98
  11772          CA      PCT  Abandoned  Assay System And       2236451    11/1/96                          DSRC   11761, 11845,
                                         Method For                                                                11850 & 11851
                                         Conducting Assays                                                         combined into
                                                                                                                   this case;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   U.S. GOV. CASE;
                                                                                                                   Orchid does not
                                                                                                                   wish to further
                                                                                                                   prosecute
                                                                                                                   (9/30/98); All
                                                                                                                   foreign cases
                                                                                                                   to go abandoned
                                                                                                                   per WJB 9/30/98
  11772          AU      PCT  Abandoned  Assay System And       1115697    11/1/96                          DSRC   11761, 11845,
                                         Method For                                                                11850 & 11851
                                         Conducting Assays                                                         combined into
                                                                                                                   this case;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   U.S. GOV. CASE;
                                                                                                                   Offered to
                                                                                                                   Orchid for
                                                                                                                   further
                                                                                                                   prosecution
                                                                                                                   8/98; Orchid
                                                                                                                   does not wish
                                                                                                                   to further
                                                                                                                   prosecute
                                                                                                                   (9/30/98)
  11772          WO      ORD  Abandoned  Assay System And      96/17116    11/1/96                          DSRC   11761, 11845,
                                         Method For                                                                11850 & 11851
                                         Conducting Assays                                                         combined into
                                                                                                                   this case;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   U.S. GOV. CASE
  11772    PR    US      PRO  Abandoned  Assay System          60/009517   11/3/95                          DSRC   11761, 11845,
                                                                                                                   11850 & 11851
                                                                                                                   combined into
                                                                                                                   this case;
                                                                                                                   Related Cases:
                                                                                                                   11999 Rule
                                                                                                                   111(a) case
                                                                                                                   filed; U.S.
                                                                                                                   GOV. CASE
  11865          JP      PCT  Abandoned  Field- Assisted       9-504027    11/9/95                          DSRC   Offered to
                                         Sealing                                                                   Orchid 3/11/99;
                                                                                                                   Orchid not
                                                                                                                   interested
                                                                                                                   6/11/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99;
                                                                                                                   Abandoned per
                                                                                                                   AH/WJB 10/12/99
  11865          SG      PCT  Abandoned  Field-Assisted        9802838-4   11/9/95                          DSRC   Offered to
                                         Sealing                                                                   Orchid 3/11/99;
                                                                                                                   Orchid not
                                                                                                                   interested
                                                                                                                   6/11/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99;
                                                                                                                   Abandoned per
                                                                                                                   AH/WJB
                                                                                                                   10/12/99; CPI
                                                                                                                   not responsible

</TABLE>

                                     Page 7
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  11865          EP      PCT  Abandoned  Field- Assisted      95939120.2   11/9/95                          DSRC   Offered to
                                         Sealing                                                                   Orchid 3/11/99;
                                                                                                                   Orchid not
                                                                                                                   interested
                                                                                                                   6/11/99;
                                                                                                                   Offered to SKB
                                                                                                                   7/13/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99;
                                                                                                                   Abandoned per
                                                                                                                   AH/WJB
                                                                                                                   10/12/99; CPI
                                                                                                                   not responsible
  11865          CA      PCT  Abandoned  Field-Assisted         2236788    11/9/95                          DSRC   Offered to
                                         Sealing                                                                   Orchid 3/11/99;
                                                                                                                   Orchid not
                                                                                                                   interested
                                                                                                                   6/11/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99;
                                                                                                                   Abandoned per
                                                                                                                   AH/WJB
                                                                                                                   10/12/99; CPI
                                                                                                                   not responsible
  11865          KR      PCT  Abandoned  Field- Assisted       703423/98   11/9/95                          DSRC   Offered to
                                         Sealing                                                                   Orchid 3/11/99;
                                                                                                                   Orchid not
                                                                                                                   interested
                                                                                                                   6/11/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99;
                                                                                                                   Abandoned per
                                                                                                                   AH/WJB 10/12/99
  11865          AU      PCT  Abandoned  Field- Assisted        4106996    11/9/95                          DSRC   Offered to
                                         Sealing                                                                   Orchid to
                                                                                                                   further
                                                                                                                   prosecute 8/98;
                                                                                                                   Orchid not
                                                                                                                   interested
                                                                                                                   9/98; Watermark
                                                                                                                   notified 9/98
                                                                                                                   to let case go
                                                                                                                   abandoned
  11865          WO      ORD  Abandoned  Field- Assisted       95/14654    11/9/95                          DSRC   Designated:
                                         Sealing                                                                   All Countries
  11865          US      ORD  Abandoned  Field-Assisted        08/745766   11/8/96   5,747,169    5/5/98    DSRC   PTO notified of
                                         Sealing                                                                   merger 4/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; SK
                                                                                                                   does not have
                                                                                                                   an interest in
                                                                                                                   this case
                                                                                                                   8/12/99;
                                                                                                                   Abandoned per
                                                                                                                   AH/WJB 10/12/99
  11865    PR    US      PRO  Abandoned  Field Assisted        60/006588   11/9/95                          DSRC   Related Cases:
                                         Sealing                                                                   11999 Rule
                                                                                                                   111(a) case
                                                                                                                   filed

</TABLE>

                                     Page 8
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  11895          US      ORD   Granted   Parallel Reaction     08/786956   1/23/97   5,863,502   1/26/99    DSRC   11899 & 11967
                                         Cassette And                                                              combined into
                                         Associated Devices                                                        this case; U.S.
                                                                                                                   GOV. CASE; PTO
                                                                                                                   notified of
                                                                                                                   merger 10/27/98
  11895          WO      ORD  Abandoned  Parallel Reaction     97/00298    1/24/97                          DSRC   11899 & 11967
                                         Cassette And                                                              combined into
                                         Associated Devices                                                        this case;  No
                                                                                                                   Foreign Filing;
                                                                                                                   Orchid given
                                                                                                                   notice of
                                                                                                                   Nationals on
                                                                                                                   6/25/98;
                                                                                                                   Notified P.
                                                                                                                   Bruno on
                                                                                                                   7/24/98 that we
                                                                                                                   have abandoned
                                                                                                                   this PCT case;
                                                                                                                   U.S. GOV. CASE;
                                                                                                                   PCT costs
                                                                                                                   written off
                                                                                                                   10/26/99
  11895    PR    US      PRO  Abandoned  Parallel Reaction     60/010513   1/24/96                          DSRC   11899 & 11967
                                         Cassette And                                                              combined into
                                         Associated Devices                                                        this case; U.S.
                                                                                                                   GOV. CASE
  11904          WO      ORD  Abandoned  Magnet                96/17398    11/3/96                          DSRC   11906 combined
                                                                                                                   into this
                                                                                                                   case;
                                                                                                                   Designated all
                                                                                                                   states; U.S.
                                                                                                                   GOV. CASE
  11904          KR      PCT  Abandoned  Magnet                703228/98   11/3/96                          DSRC   11906 combined
                                                                                                                   into this
                                                                                                                   case;
                                                                                                                   Designated all
                                                                                                                   states; U.S.
                                                                                                                   GOV. CASE;
                                                                                                                   Notified SPS
                                                                                                                   that Sarnoff
                                                                                                                   and Orchid no
                                                                                                                   longer will be
                                                                                                                   pursuing this
                                                                                                                   application
                                                                                                                   (3/15/00)
  11904          EP      PCT  Abandoned  Magnet               96937082.4   11/3/96                          DSRC   11906 combined
                                                                                                                   into this
                                                                                                                   case;
                                                                                                                   Designated all
                                                                                                                   states; U.S.
                                                                                                                   GOV. CASE;
                                                                                                                   Notified SPS
                                                                                                                   that Sarnoff
                                                                                                                   and Orchid no
                                                                                                                   longer will be
                                                                                                                   pursuing this
                                                                                                                   application
                                                                                                                   (3/15/00)
  11904          JP      PCT  Abandoned  Magnet                9-517509    11/3/96                          DSRC   11906 combined
                                                                                                                   into this
                                                                                                                   case;
                                                                                                                   Designated all
                                                                                                                   states; U.S.
                                                                                                                   GOV. CASE;
                                                                                                                   Notified SPS
                                                                                                                   that Sarnoff
                                                                                                                   and Orchid no
                                                                                                                   longer will be
                                                                                                                   pursuing this
                                                                                                                   application
                                                                                                                   (3/15/00)
  11904    A     US      CPA  Abandoned  Magnet                08/742971   11/1/96                          DSRC   11906 combined
                                                                                                                   into this case
                                                                                                                   (This case
                                                                                                                   should be 11904
                                                                                                                   - misidentified
                                                                                                                   by DP&R);
                                                                                                                   Related Cases:
                                                                                                                   11904; U.S.
                                                                                                                   GOV. CASE; PTO
                                                                                                                   notified of
                                                                                                                   merger 12/98;
                                                                                                                   CPA was filed
                                                                                                                   4/21/98;
                                                                                                                   Offered to
                                                                                                                   Orchid per WJB
                                                                                                                   11/16/99; CPA
                                                                                                                   filed 11/24/99;
                                                                                                                   Orchid and
                                                                                                                   Sarnoff do not
                                                                                                                   want to pursue
                                                                                                                   this
                                                                                                                   application;
                                                                                                                   SPS notified
                                                                                                                   12/3/99
  11904    PR    US      PRO  Abandoned  Magnet               60/006,202   11/3/95                          DSRC   11906 combined
                                                                                                                   into this case;
                                                                                                                   U.S. GOV. CASE
  11948          US      ORD     Sold    Method Of             08/554887   11/9/95   5,842,106   11/24/98  ORCHI   11947 combined
                                         Producing                                                                 into this
                                         Micro-Electric                                                            case;  Related
                                         Conduits                                                                  Cases:  CIP of
                                                                                                                   11717 and
                                                                                                                   11740; PTO
                                                                                                                   notified of
                                                                                                                   merger 8/98;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11948          CA      PCT     Sold    Method Of             2,223,166   11/9/95                         ORCHI   See 11947;
                                         Producing                                                                 Related Cases:
                                         Micro-Electric                                                            CIP of 11717
                                         Conduits                                                                  and 11740;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99

</TABLE>

                                     Page 9
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  11948          EP      PCT     Sold    Method Of            95940664.6   11/9/95                         ORCHI   See 11947;
                                         Producing                                                                 Related Cases:
                                         Micro-Electric                                                            CIP of 11717
                                         Conduits                                                                  and 11740;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11948          JP      PCT     Sold    Method Of             9-500,409   11/9/95                         ORCHI   See 11947;
                                         Producing                                                                 Related Cases:
                                         Micro-Electric                                                            CIP of 11717
                                         Conduits                                                                  and 11740;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11948          KR      PCT     Sold    Method Of             97/708693   11/9/95                         ORCHI   See 11947;
                                         Producing                                                                 Related Cases:
                                         Micro-Electric                                                            CIP of 11717
                                         Conduits                                                                  and 11740;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11948          AU      PCT     Sold    Method Of              4233596    11/9/95     714664     1/6/00   ORCHI   See 11947;
                                         Producing                                                                 Related Cases:
                                         Micro-Electric                                                            CIP of 11717
                                         Conduits                                                                  and 11740;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11948          SG      PCT     Sold    Method Of             9705800-2   11/9/95                         ORCHI   See 11947;
                                         Producing                                                                 Related Cases:
                                         Micro-Electric                                                            CIP of 11717
                                         Conduits                                                                  and 11740;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  11948          WO      ORD  Abandoned  Method Of             95/14587    11/9/95                          DSRC   See 11947;
                                         Producing                                                                 Designated:
                                         Micro-Electric                                                            All Countries;
                                         Conduits                                                                  Related Cases:
                                                                                                                   CIP of 11717
                                                                                                                   and 11740
  12024          CA      PCT     Sold    Method For             2258511    6/13/97                         ORCHI   Orchid filed
                                         Polynucleotide                                                            through
                                         Sequencing                                                                National Stages
  12024          IL      PCT     Sold    Method For             127560     6/13/97                         ORCHI   Orchid filed
                                         Polynucleotide                                                            through
                                         Sequencing                                                                National Stages
  12024          EP      PCT     Sold    Method For           97936015.3   6/13/97                         ORCHI   Orchid filed
                                         Polynucleotide                                                            through
                                         Sequencing                                                                National Stages
  12024          JP      PCT     Sold    Method For            10-501677   6/13/97                         ORCHI   Orchid filed
                                         Polynucleotide                                                            through
                                         Sequencing                                                                National Stages
  12024          AU      PCT     Sold    Method For            38784/97    6/13/97                         ORCHI   Orchid filed
                                         Polynucleotide                                                            through
                                         Sequencing                                                                National Stages
  12024          US      ORD  Abandoned  Method For            08/665210   6/14/96                          DSRC   12025, 12028
                                         Polynucleotide                                                            and 12029
                                         Sequencing                                                                combined into
                                                                                                                   this case; U.S.
                                                                                                                   GOV. CASE; PTO
                                                                                                                   notified of
                                                                                                                   merger 12/98;
                                                                                                                   FWC filed

</TABLE>

                                    Page 10
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  12024          WO      ORD  Abandoned  Method For            97/09664    6/13/97                         ORCHI   12025, 12028
                                         Polynucleotide                                                            and 12029
                                         Sequencing                                                                combined into
                                                                                                                   this case;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   European
                                                                                                                   Application No.
                                                                                                                   97936015.3;
                                                                                                                   Offered
                                                                                                                   National Stage
                                                                                                                   filing to
                                                                                                                   Orchid 8/98;
                                                                                                                   Orchid will
                                                                                                                   handle
                                                                                                                   Nationals Stage
                                                                                                                   filing
                                                                                                                   11/17/98; U.S.
                                                                                                                   GOV. CASE
  12024    A     US      FWC   Granted   A Sequential Step     08/950709  10/15/97   5,908,755    6/1/99    DSRC   12025, 12028
                                         Method For                                                                and 12029
                                         Sequencing And                                                            combined into
                                         Identifying                                                               this case;
                                         Polynucleotides                                                           Related Cases:
                                                                                                                   FWC of 12024;
                                                                                                                   U.S. GOV. CASE
  12034          WO      ORD  Abandoned  Massively Parallel    97/17930    9/25/97                          DSRC   12034A and
                                         Detection                                                                 12034B claimed
                                                                                                                   priority;
                                                                                                                   Designated:
                                                                                                                   All Countries,
                                                                                                                   except U.S.; EP
                                                                                                                   Application no.
                                                                                                                   97944614.3;
                                                                                                                   Orchid shares
                                                                                                                   costs; Offered
                                                                                                                   to Orchid to do
                                                                                                                   Nationals
                                                                                                                   1/19/99; Orchid
                                                                                                                   does not want
                                                                                                                   to do Nationals
                                                                                                                   2/1/99, case
                                                                                                                   abandoned.
  12034    A     US      ORD     Sold    Massively Parallel    08/721432   9/26/96   5,854,684   12/29/98  ORCHI   Orchid shares
                                         Detection                                                                 costs; PTO
                                                                                                                   notified of
                                                                                                                   merger 8/98;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  12034    B     US      ORD     Sold    Massively Parallel    08/721427   9/26/96   5,872,623   2/16/99   ORCHI   Orchid shares
                                         Detection                                                                 costs;  PTO
                                                                                                                   notified of
                                                                                                                   merger 11/98;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  12038          AU      PCT     Sold    Nuclease              32320/97    6/16/97                         ORCHI   Orchid filed
                                         Protection Assays                                                         through
                                                                                                                   National Stages
  12038          CA      PCT     Sold    Nuclease               2258745    6/16/97                         ORCHI   Orchid filed
                                         Protection Assays                                                         through
                                                                                                                   National Stages
  12038          EP      PCT     Sold    Nuclease             97927995.7   6/16/97                         ORCHI   Orchid filed
                                         Protection Assays                                                         through
                                                                                                                   National Stages
  12038          WO      ORD  Abandoned  Nuclease              97/09800    6/16/97                         ORCHI   12046-12048 and
                                         Protection Assays                                                         12052-12057
                                                                                                                   combined into
                                                                                                                   this case;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   European
                                                                                                                   Application No.
                                                                                                                   97927995.7;
                                                                                                                   Offered
                                                                                                                   National Stage
                                                                                                                   filing to
                                                                                                                   Orchid 8/98;
                                                                                                                   U.S. GOV. CASE;
                                                                                                                   Orchid will
                                                                                                                   take
                                                                                                                   responsibility
                                                                                                                   of National
                                                                                                                   Stage filing
                                                                                                                   (9/30/98)

</TABLE>

                                    Page 11
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  12038          US      ORD   Granted   Nuclease              08/665104   6/14/96   5,770,370   6/23/98    DSRC   12046-12048 and
                                         Protection Assays                                                         12052-12057
                                                                                                                   combined into
                                                                                                                   this case; U.S.
                                                                                                                   GOV. CASE; PTO
                                                                                                                   notified of
                                                                                                                   merger 4/99
  12038          IL      PCT     Sold    Nuclease               127562     6/16/97                         ORCHI   Orchid filed
                                         Protection Assays                                                         through
                                                                                                                   National Stages
  12038          JP      PCT     Sold    Nuclease              10-501695   6/16/97                         ORCHI   Orchid filed
                                         Protection Assays                                                         through
                                                                                                                   National Stages
  12049          US      ORD   Granted   Method For            08/881282   6/24/97   5,939,261   8/17/99    DSRC   12342, 12353,
                                         Capturing A                                                               12364; U.S.
                                         Nucleic Acid                                                              GOV. CASE
  12049          WO      ORD     Sold    Method For            98/13217    6/24/98                         ORCHI   12342, 12353,
                                         Capturing A                                                               12364; JVS
                                         Nucleic Acid                                                              filed this PCT
                                                                                                                   for Orchid - we
                                                                                                                   didn't turn it
                                                                                                                   over in time so
                                                                                                                   he is taking
                                                                                                                   care of
                                                                                                                   initiating the
                                                                                                                   PCT procedure
                                                                                                                   for them;
                                                                                                                   Orchid will
                                                                                                                   prosecute this
                                                                                                                   case; U.S. GOV.
                                                                                                                   CASE; To Orchid
                                                                                                                   6/98; European
                                                                                                                   patent
                                                                                                                   application no.
                                                                                                                   98931586.6
  12050          US      CPA   Granted   Microfluidic          08/665209   6/14/96   5,939,291   8/17/99    DSRC   12051, 12118,
                                         Method For Nucleic                                                        12127, 12140
                                         Acid Amplification                                                        AND 12161
                                                                                                                   combined  into
                                                                                                                   this case; U.S.
                                                                                                                   GOV. CASE; PTO
                                                                                                                   notified of
                                                                                                                   merger 12/98
  12050          WO      ORD  Abandoned  Microfluidic          97/09663    6/13/97                          DSRC   12051, 12118,
                                         Method For Nucleic                                                        12127, 12140
                                         Acid Amplification                                                        AND 12161
                                                                                                                   combined  into
                                                                                                                   this case;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   European
                                                                                                                   Application No.
                                                                                                                   97929789.2;
                                                                                                                   Offered
                                                                                                                   National Stage
                                                                                                                   filing to
                                                                                                                   Orchid 8/98;
                                                                                                                   U.S. GOV. CASE;
                                                                                                                   Orchid will not
                                                                                                                   pursue National
                                                                                                                   Stage filing
                                                                                                                   (9/30/98) -
                                                                                                                   Notice sent to
                                                                                                                   SPS 10/5/98;
                                                                                                                   Notified
                                                                                                                   Finance of
                                                                                                                   abandonment
                                                                                                                   11/98; PCT
                                                                                                                   costs written
                                                                                                                   off 10/26/99
  12081          US      ORD   Granted   Method For            08/663688   6/14/96   5,914,229   6/22/99    DSRC   12078 combined
                                         Amplifying A                                                              into this case;
                                         Polynucleotide                                                            U.S. GOV. CASE;
                                                                                                                   PTO notified of
                                                                                                                   merger 12/98

</TABLE>

                                    Page 12
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  12081          WO      ORD  Abandoned  Method For            97/09665    6/13/97                          DSRC   12078 combined
                                         Amplifying A                                                              into this
                                         Polynucleotide                                                            case;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   European
                                                                                                                   Application No.
                                                                                                                   97929790.0;
                                                                                                                   Offered
                                                                                                                   National Stage
                                                                                                                   filing to
                                                                                                                   Orchid 8/98;
                                                                                                                   U.S. GOV. CASE;
                                                                                                                   Orchid will not
                                                                                                                   pursue National
                                                                                                                   Stage filing
                                                                                                                   (9/30/98) -
                                                                                                                   Notice sent to
                                                                                                                   SPS 10/5/98;
                                                                                                                   Notified
                                                                                                                   Finance of
                                                                                                                   abandonment
                                                                                                                   11/98; PCT
                                                                                                                   costs written
                                                                                                                   off 10/26/99
  12087          CA      PCT     Sold    Apportioning System               4/8/97                          ORCHI   Orchid filed
                                                                                                                   through
                                                                                                                   National Stages
  12087          WO      ORD  Abandoned  Apportioning System   97/05153    4/8/97                          ORCHI   EP application
                                                                                                                   no. is
                                                                                                                   97917704.5;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   Offered
                                                                                                                   National Stage
                                                                                                                   filing to
                                                                                                                   Orchid 8/98;
                                                                                                                   Orchid will
                                                                                                                   file National
                                                                                                                   Stages (9/98);
                                                                                                                   Orchid files
                                                                                                                   National Stages
                                                                                                                   in Canada, EPO,
                                                                                                                   Japan (10/98)
  12087          EP      PCT     Sold    Apportioning System  97917704.5   4/8/97                          ORCHI   Orchid filed
                                                                                                                   this through
                                                                                                                   National Stages
  12087          JP      PCT     Sold    Apportionment         97/536257   4/8/97                          ORCHI   Orchid filed
                                         System                                                                    through
                                                                                                                   National Stages
  12087          US      ORD     Sold    Apportionment         08/630047   4/9/96    5,879,632    3/9/99   ORCHI   PTO notified of
                                         System                                                                    merger 12/98;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  12098          US      ORD     Sold    Plate For Reaction    08/630018   4/9/96    5,840,256   11/24/98  ORCHI   A DIV of this
                                         System                                                                    case is
                                                                                                                   possible
                                                                                                                   (restriction);
                                                                                                                   PTO notified of
                                                                                                                   merger 4/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  12098          EP      PCT     Sold    Plate For Reaction   97917901.7   4/9/97                          ORCHI   Orchid filed
                                         System                                                                    through
                                                                                                                   National Stage
  12098          JP      PCT     Sold    Plate For Reaction    97/536450   4/9/97                          ORCHI   Orchid filed
                                         System                                                                    through
                                                                                                                   National Stages
  12098          CA      PCT     Sold    Plate For Reaction                4/9/97                          ORCHI   Orchid filed
                                         System                                                                    through
                                                                                                                   National Stages
</TABLE>

                                    Page 13
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  12098          WO      ORD  Abandoned  Plate For Reaction    97/05841    4/9/97                          ORCHI   EP application
                                         System                                                                    no.
                                                                                                                   97917901.7;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   Offered
                                                                                                                   National Stage
                                                                                                                   filing to
                                                                                                                   Orchid 8/98;
                                                                                                                   Orchid will
                                                                                                                   file National
                                                                                                                   Stage (9/98);
                                                                                                                   Orchid filed
                                                                                                                   National Stages
                                                                                                                   (10/98)
  12098    A     US      CIP  Abandoned  Plate For Reaction    08/850669   5/2/97                           DSRC   Includes 12119,
                                         System                                                                    12156, 12297
                                                                                                                   CIP of 12098 (
                                                                                                                   8/630,018),
                                                                                                                   12385
                                                                                                                   (08/730,636)
                                                                                                                   and 12385A
                                                                                                                   (08/744,386);
                                                                                                                   No Foreign
                                                                                                                   Filing; No
                                                                                                                   further
                                                                                                                   prosecution by
                                                                                                                   Sarnoff or
                                                                                                                   Orchid
                                                                                                                   (9/29/98) -
                                                                                                                   case abandoned
  12120          WO      ORD  Abandoned  Automated Nucleic     97/09801    6/16/97                          DSRC   Designated:
                                         Acid Isolation                                                            All Countries;
                                                                                                                   European
                                                                                                                   Application No.
                                                                                                                   97927996.5;
                                                                                                                   Offered
                                                                                                                   National Stage
                                                                                                                   filing to
                                                                                                                   Orchid 8/98;
                                                                                                                   U.S. GOV. CASE;
                                                                                                                   Orchid will not
                                                                                                                   pursue National
                                                                                                                   Stage filing
                                                                                                                   (9/30/98) -
                                                                                                                   Notice sent to
                                                                                                                   SPS 10/5/98;
                                                                                                                   Notified
                                                                                                                   Finance of
                                                                                                                   abandonment
                                                                                                                   11/98; PCT
                                                                                                                   costs written
                                                                                                                   off 10/26/99
  12120          US      ORD     Sold    Automated Nucleic     08/664780   6/14/96   5,863,801   1/26/99   ORCHI   PTO notified of
                                         Acid Preparation                                                          merger 8/98;
                                                                                                                   U.S. GOV. CASE;
                                                                                                                   Orchid and
                                                                                                                   Sarnoff share
                                                                                                                   costs; Offered
                                                                                                                   to Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  12162          JP      PCT     Sold    Padlock Probe         10-502697   6/16/97                         ORCHI   Orchid filed
                                         Detection                                                                 through
                                                                                                                   National Stages
  12162          US      ORD   Granted   Padlock Probe         08/665208   6/14/96   5,912,124   6/15/99    DSRC   12163 combined
                                         Detection                                                                 into this case;
                                                                                                                   U.S. GOV. CASE
  12162          AU      PCT     Sold    Padlock Probe         32300/97    6/16/97                         ORCHI   Orchid filed
                                         Detection                                                                 through
                                                                                                                   National Stages
  12162          IL      PCT     Sold    Padlock Probe          127561     6/16/97                         ORCHI   Orchid filed
                                         Detection                                                                 through
                                                                                                                   National Stages
  12162          EP      PCT     Sold    Padlock Probe        97927997.3   6/16/97                         ORCHI   Orchid filed
                                         Detection                                                                 through
                                                                                                                   National Stages
  12162          CA      PCT     Sold    Padlock Probe          2258742    6/16/97                         ORCHI   Orchid filed
                                         Detection                                                                 through
                                                                                                                   National Stages

</TABLE>

                                    Page 14
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  12162          WO      ORD  Abandoned  Padlock Probe         97/09802    6/16/97                         ORCHI   12163 combined
                                         Detection                                                                 into this
                                                                                                                   case;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   European
                                                                                                                   Application No.
                                                                                                                   97927997.3;
                                                                                                                   Offered
                                                                                                                   National Stage
                                                                                                                   filing to
                                                                                                                   Orchid 8/98;
                                                                                                                   U.S. GOV. CASE;
                                                                                                                   Orchid will
                                                                                                                   take
                                                                                                                   responsibility
                                                                                                                   of National
                                                                                                                   Stage filing
                                                                                                                   (9/30/98)
  12189          US      ORD     Sold    Indirect              08/848413   5/8/97    5,961,800   10/5/99   ORCHI   12270 combined
                                         Electrode-Based                                                           into this case;
                                         Pumps                                                                     File in All
                                                                                                                   States per WJB
                                                                                                                   3/9/98; Offered
                                                                                                                   to Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  12189          WO      ORD  Abandoned  Indirect              98/09417    5/7/98                          ORCHI   12270 combined
                                         Electrode-Based                                                           into this case;
                                         Pumps                                                                     File in All
                                                                                                                   States per WJB
                                                                                                                   3/9/98; Sent to
                                                                                                                   Orchid 8/98 to
                                                                                                                   see if they are
                                                                                                                   interested in
                                                                                                                   continuing
                                                                                                                   prosecution
                                                                                                                   (Sarnoff did
                                                                                                                   not file
                                                                                                                   Demand); Orchid
                                                                                                                   will prosecute
                                                                                                                   this PCT
                                                                                                                   10/26/98;
                                                                                                                   European patent
                                                                                                                   application no.
                                                                                                                   98921050.5;
                                                                                                                   Orchid not
                                                                                                                   interested in
                                                                                                                   pursuing this
                                                                                                                   application
                                                                                                                   overseas - no
                                                                                                                   national stage
                                                                                                                   filing (per
                                                                                                                   KNash 11/1/99)
  12244    PR    US      PRO     Sold    Scattering-Assisted  60/110,365  11/30/98                         ORCHI   Orchid filed
                                         Light Absorption                                                          this
                                         Assay                                                                     Provisional;
                                                                                                                   U.S. GOV. CASE
  12288          US      ORD     Sold    Capacitive            08/936323   9/24/97   5,993,611   11/30/99  ORCHI   Foreign offered
                                         Denaturation Of                                                           to Orchid,
                                         Nucleic Acid                                                              refused by P.
                                                                                                                   Conway 7/17/98;
                                                                                                                   No Foreign
                                                                                                                   Filing per WJB
                                                                                                                   8/18/98; U.S.
                                                                                                                   GOV. CASE;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99; SPS
                                                                                                                   notified to
                                                                                                                   reverse
                                                                                                                   election to
                                                                                                                   foreign file
                                                                                                                   3/00
  12317          WO      ORD     Sold    Amplification         98/17773    8/27/98                         ORCHI   12367 combined
                                         Method For A                                                              into this case;
                                         Polynucleotide                                                            U.S. GOV. CASE;
                                                                                                                   Sarnoff filed
                                                                                                                   the PCT
                                                                                                                   application for
                                                                                                                   Orchid; Orchid
                                                                                                                   will prosecute
                                                                                                                   PCT application

</TABLE>

                                    Page 15
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  12317          US      ORD   Granted   Amplification         08/924763   8/27/97   5,916,776   6/29/99    DSRC   12367 combined
                                         Method For A                                                              into this case;
                                         Polynucleotide                                                            U.S. GOV. CASE
  12326    PR    US      PRO  Abandoned  Microlab Sample       60/032441   12/3/96                          DSRC
                                         Transfer Plate
  12337          US      ORD   Granted   Balanced              08/821480   3/21/97   5,964,997   10/12/99   DSRC   PTO notified of
                                         Asymmetric                                                                merger 12/98;
                                         Electronic Pulse                                                          Printer Case
                                         Patterns For
                                         Operating
                                         Electrode-Based
                                         Pumps
  12337          WO      ORD     Sold    Balanced              98/05485    3/20/98                         ORCHI   Printer Case;
                                         Asymmetric                                                                PCT designates
                                         Electronic Pulse                                                          all countries;
                                         Patterns For                                                              Nationals filed
                                         Operating                                                                 by Orchid (per
                                         Electrode-Based                                                           AH 9/27/99);
                                         Pumps                                                                     European patent
                                                                                                                   application no.
                                                                                                                   98910505.1
  12339          US      CPA  Abandoned  Method For            08/927389   8/26/97                          GOV    12537 combined
                                         Capturing A                                                               into this case;
                                         Microorgansim                                                             U.S. GOV. CASE;
                                                                                                                   No Foreign
                                                                                                                   Filing (Orchid
                                                                                                                   was not
                                                                                                                   interested in
                                                                                                                   filing a PCT
                                                                                                                   8/98); SPS
                                                                                                                   notified of no
                                                                                                                   foreign filing;
                                                                                                                   CPA filed 3/99;
                                                                                                                   U.S. case given
                                                                                                                   to Government
                                                                                                                   (SPS) 9/99; P.
                                                                                                                   Bruno notified
                                                                                                                   10/11/99
  12354    PR    US      PRO  Abandoned  Liquid                60/035974   1/21/97                          DSRC   Related Cases:
                                         Distribution System                                                       12385, 11999
                                                                                                                   Rule 111(a)
                                                                                                                   case filed
  12365          US      ORD     Sold    Flow Control In       08/974258  11/19/97   5,992,820   11/30/99  ORCHI   Must file by
                                         Microfluidics                                                             10/18/97; 6mo
                                         Devices By                                                                XTN REQ; U.S.
                                         Controlled Bubble                                                         GOV. CASE;
                                         Formation                                                                 Offered to
                                                                                                                   Orchid to file
                                                                                                                   PCT 9/98 (Due
                                                                                                                   11/19/98);
                                                                                                                   Orchid will not
                                                                                                                   pursue PCT
                                                                                                                   filing
                                                                                                                   (9/30/98) -
                                                                                                                   Notice sent to
                                                                                                                   SPS 10/5/98;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  12368          WO      ORD  Abandoned  Method For            98/07392    4/14/98                          DSRC   U.S. GOV. CASE;
                                         Translocating                                                             European
                                         Microparticles In                                                         application no.
                                         A Microfabricated                                                         98920838.4; No
                                         Device                                                                    National Stages
                                                                                                                   per WJB
                                                                                                                   6/22/99; Offer
                                                                                                                   to SK and
                                                                                                                   Orchid 7/16/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; SK
                                                                                                                   does not have
                                                                                                                   an interest in
                                                                                                                   this case
                                                                                                                   8/12/99; Orchid
                                                                                                                   not interested
                                                                                                                   (8/26/99); SPS
                                                                                                                   notified 8/27/99

</TABLE>

                                    Page 16
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  12368          US      ORD     Sold    Method For            08/838102   4/15/97                         ORCHI   U.S. GOV. CASE;
                                         Translocating                                                             Offered to
                                         Microparticles In                                                         Orchid 8/6/99
                                         A Microfabricated                                                         and Offered to
                                         Device                                                                    Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   will accept
                                                                                                                   responsibility
                                                                                                                   (8/26/99);
                                                                                                                   Deleted Final
                                                                                                                   OA from Actions
                                                                                                                   List per AH
                                                                                                                   (8/27/99);
                                                                                                                   Abandoned
                                                                                                                   2/25/00
  12385          US      ORD  Abandoned  Liquid                08/730636  10/11/96                          DSRC   CIP of 11402,
                                         Distribution System                                                       11402G, 11717
                                                                                                                   and 11740;
                                                                                                                   11404, 11512,
                                                                                                                   11577 & 11638
                                                                                                                   combined into
                                                                                                                   this case
  12385    A     JP      PCT     Sold    Liquid                           10/10/97                         ORCHI   Orchid filed
                                         Distribution System                                                       through
                                                                                                                   National Stages
  12385    A     US      CIP     Sold    Liquid                08/744386   11/7/96   6,033,544    3/7/00   ORCHI   CIP of 12385;
                                         Distribution System                                                       12297 and 12560
                                                                                                                   combined into
                                                                                                                   this case;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   accepts
                                                                                                                   responsibility
                                                                                                                   11/10/99
  12385    A     CA      PCT     Sold    Liquid                           10/10/97                         ORCHI   Orchid filed
                                         Distribution System                                                       through
                                                                                                                   National Stages
  12385    A     EP      PCT     Sold    Liquid                           10/10/97                         ORCHI   Orchid filed
                                         Distribution System                                                       through
                                                                                                                   National Stages
  12385    A     WO      ORD  Abandoned  Liquid                97/18266   10/10/97                         ORCHI   CIP of 12385
                                         Distribution System                                                       12297 combined
                                                                                                                   into this
                                                                                                                   case;
                                                                                                                   Designated:
                                                                                                                   All Countries;
                                                                                                                   European
                                                                                                                   application no.
                                                                                                                   97912690.1;
                                                                                                                   Offered to
                                                                                                                   Orchid to do
                                                                                                                   Nationals
                                                                                                                   1/19/99; Orchid
                                                                                                                   will do
                                                                                                                   Nationals 2/1/99
  12400    PR    US      PRO     Sold    Method And           60/110,366  11/30/98                         ORCHI   Orchid filed
                                         Apparatus To                                                              this
                                         Amplify DNA                                                               Provisional;
                                                                                                                   Orchid will not
                                                                                                                   file a 111(a)
                                                                                                                   per AH
                                                                                                                   11/19/99; SPS
                                                                                                                   notified
                                                                                                                   11/22/99; US
                                                                                                                   GOV. CASE
  12433          US      ORD     Sold    Method Of Moving      09/351207   7/9/99                          ORCHI   Filed by Orchid
                                         And Detecting
                                         Fluid In A
                                         Microfluidic Device
  12451          US      ORD     Sold    Device For            09/025380   2/18/98                         ORCHI   Offered to
                                         Delivering Defined                                                        Orchid to file
                                         Volumes                                                                   PCT 9/98 (due
                                                                                                                   2/18/99);
                                                                                                                   Orchid will
                                                                                                                   file PCT 7/99;
                                                                                                                   Offered to
                                                                                                                   Orchid to
                                                                                                                   8/16/99; Orchid
                                                                                                                   will pay issue
                                                                                                                   fee per AH
                                                                                                                   10/13/99; ;
                                                                                                                   Orchid assumes
                                                                                                                   responsibility
                                                                                                                   10/19/99
  12451          WO      ORD     Sold    Device For            99/03486    2/18/99                         ORCHI   Orchid filed
                                         Delivering Defined                                                        this PCT
                                         Volumes

</TABLE>

                                    Page 17
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  12485    PR    US      PRO     Sold    Direct Liquid        60/110,364  11/30/98                         ORCHI   Orchid filed
                                         Capture And                                                               this
                                         Separation Of                                                             Provisional;
                                         Airborne Particles                                                        U.S. GOV. CASE;
                                                                                                                   Orchid will not
                                                                                                                   file a 111(a)
                                                                                                                   per AH
                                                                                                                   11/19/99; SPS
                                                                                                                   notified
                                                                                                                   11/22/99
  12496    PR    US      PRO     Sold    A                    60/110,367  11/30/98                         ORCHI   Orchid filed
                                         Microfluidics-Based                                                       this
                                         Device For DNA                                                            Provisional;
                                         Target                                                                    U.S. GOV. CASE;
                                         Amplification                                                             Orchid will not
                                                                                                                   file a 111(a)
                                                                                                                   per AH
                                                                                                                   11/19/99; SPS
                                                                                                                   notified
                                                                                                                   11/22/99
  12519          US      ORD   Allowed   Electrode             08/998406  12/24/97                          DSRC   File in All
                                         Combinations For                                                          States per WJB
                                         Pumping Fluids                                                            3/9/98 and
                                                                                                                   4/22/98;
                                                                                                                   Printer Case
  12519          WO      ORD  Abandoned  Electrode             98/09599    5/13/98                          DSRC   File in All
                                         Combinations,                                                             States per WJB
                                         Including A Ring                                                          3/9/98 and
                                         Electrode, For                                                            4/22/98; Camera
                                         Pumping Fluids                                                            case; European
                                                                                                                   patent
                                                                                                                   application no.
                                                                                                                   98921121.4;
                                                                                                                   Printer Case;
                                                                                                                   Offered to
                                                                                                                   Orchid to do
                                                                                                                   National Stages
                                                                                                                   9/15/99;
                                                                                                                   Sarnoff will
                                                                                                                   not file
                                                                                                                   National Stages
                                                                                                                   (10/99); PCT
                                                                                                                   costs written
                                                                                                                   off 10/26/99
  12519    PR    US      PRO  Abandoned  Vertical EHD Pump     60/046321   5/13/97                          DSRC
                                         Integrated With
                                         Capillary Stop Or
                                         Break
  12520          US      ORD     Sold    Fluid Delivery        09/351206   7/9/99                          ORCHI   Filed by Orchid
                                         System For A
                                         Microfluidic
                                         Device Using A
                                         Pressure Pulse
  12523          WO      ORD  Abandoned  An                    98/09582    5/12/98                          DSRC   12532 combined
                                         Electrohydrodynamic                                                       into this
                                         Receptor                                                                  case;  Related
                                                                                                                   Cases:  12524,
                                                                                                                   12564, 12590;
                                                                                                                   Designate all
                                                                                                                   states per WJB
                                                                                                                   4/22/98; Camera
                                                                                                                   case; European
                                                                                                                   patent
                                                                                                                   application no.
                                                                                                                   98920371.6;
                                                                                                                   Printer Case;
                                                                                                                   Offered to
                                                                                                                   Orchid to do
                                                                                                                   National Stages
                                                                                                                   9/15/99;
                                                                                                                   Sarnoff will
                                                                                                                   not file
                                                                                                                   National Stages
                                                                                                                   (10/99); PCT
                                                                                                                   costs written
                                                                                                                   off 10/26/99
  12523          US      ORD   Granted   An                    08/937817   9/29/97   5,980,719   11/9/99    DSRC   12532 combined
                                         Electrohydrodynamic                                                       into this
                                         Receptor                                                                  case;  Related
                                                                                                                   Cases:  12524,
                                                                                                                   12564, 12590;
                                                                                                                   Designate all
                                                                                                                   states per WJB
                                                                                                                   4/22/98;
                                                                                                                   Printer Case
  12523    PR    US      PRO  Abandoned  Printer               60/046293   5/13/97                          DSRC   File in All
                                                                                                                   States per WJB
                                                                                                                   3/9/98

</TABLE>

                                    Page 18
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  12524          US      CPA   Pending   Parallel Print        08/939769   9/29/97                          DSRC   Related Cases:
                                         Array                                                                     12523, 12564,
                                                                                                                   12590;
                                                                                                                   Designate all
                                                                                                                   states per WJB
                                                                                                                   4/22/98;
                                                                                                                   Printer Case;
                                                                                                                   CPA filed
                                                                                                                   7/15/99
  12524          WO      ORD  Abandoned  Parallel Print        98/09579    5/12/98                          DSRC   Related Cases:
                                         Array                                                                     12523, 12564,
                                                                                                                   12590;
                                                                                                                   Designate all
                                                                                                                   states per WJB
                                                                                                                   4/22/98; Camera
                                                                                                                   case; European
                                                                                                                   patent
                                                                                                                   application no.
                                                                                                                   98921114.9;
                                                                                                                   Printer Case;
                                                                                                                   Offered to
                                                                                                                   Orchid to do
                                                                                                                   National Stages
                                                                                                                   9/15/99;
                                                                                                                   Sarnoff will
                                                                                                                   not file
                                                                                                                   National Stages
                                                                                                                   (10/99); PCT
                                                                                                                   costs written
                                                                                                                   off 10/26/99
  12524    PR    US      PRO  Abandoned  Printer Cartridge     60/046292   5/13/97                          DSRC   File in All
                                                                                                                   States per WJB
                                                                                                                   3/9/98
  12556          US      ORD   Pending   Automated Sample      09/433155   11/3/99                          DSRC   U.S. GOV. CASE;
                                         Processor                                                                 12824 combined
                                                                                                                   into this
                                                                                                                   111(a);
                                                                                                                   Designate:  EP,
                                                                                                                   JP, IN (per AH
                                                                                                                   11/2/99)
  12556          WO      ORD   Pending   Automated Sample      99/25917    11/4/99                          DSRC   U.S. GOV. CASE;
                                         Processor                                                                 12824 combined
                                                                                                                   into this
                                                                                                                   111(a);
                                                                                                                   Designate:  EP,
                                                                                                                   JP, IN (per AH
                                                                                                                   11/2/99); Sent
                                                                                                                   to R&P 12/14/99
  12556    PR    US      PRO  Abandoned  Sample Injection      60/107021   11/4/98                          DSRC   U.S. GOV. CASE;
                                         System For                                                                Sent to Orchid
                                         Cassettes                                                                 8/98; Requested
                                                                                                                   extension until
                                                                                                                   11/30/98;
                                                                                                                   Orchid will not
                                                                                                                   pursue
                                                                                                                   10/26/98;
                                                                                                                   Notice sent to
                                                                                                                   SPS 10/29/98;
                                                                                                                   Sent to US GOV;
                                                                                                                   Sarnoff has a
                                                                                                                   license back;
                                                                                                                   Sarnoff files a
                                                                                                                   Provisional;
                                                                                                                   Sent to Art
                                                                                                                   Jackson to
                                                                                                                   prepare 111(a)
                                                                                                                   5/14/99 + (to
                                                                                                                   be combined
                                                                                                                   with 12824P);
                                                                                                                   Due 10/18/99
  12564          US      ORD   Allowed   Multi-Element         08/939767   9/29/97                          DSRC   Related Cases:
                                         Fluid Delivery                                                            12523, 12524,
                                         Apparatus And                                                             12590;  File in
                                         Methods                                                                   All States per
                                                                                                                   WJB 3/9/98 and
                                                                                                                   4/22/98;
                                                                                                                   Printer Case

</TABLE>

                                    Page 19
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  12564          WO      ORD  Abandoned  Multi-Element         98/09741    5/13/98                          DSRC   Related Cases:
                                         Fluid Delivery                                                            12523, 12524,
                                         Apparatus And                                                             12590;  File in
                                         Methods                                                                   All States per
                                                                                                                   WJB 3/9/98 and
                                                                                                                   4/22/98; Camera
                                                                                                                   case; European
                                                                                                                   patent
                                                                                                                   application no.
                                                                                                                   98922242.7;
                                                                                                                   Printer Case;
                                                                                                                   Offered to
                                                                                                                   Orchid 9/30/99;
                                                                                                                   Sarnoff will
                                                                                                                   not file
                                                                                                                   National Stages
                                                                                                                   (10/99); PCT
                                                                                                                   costs written
                                                                                                                   off 10/26/99
  12564    PR    US      PRO  Abandoned  Multi-Element         60/046291   5/13/97                          DSRC
                                         Print Heads And
                                         Methods Therefor
  12590          WO      ORD  Abandoned  Print Array And       98/18503    9/25/98                          DSRC   12528 combined
                                         Method Of Fluid                                                           into this
                                         Transfer                                                                  application;
                                                                                                                   Related Cases:
                                                                                                                   12523, 12524,
                                                                                                                   12564;
                                                                                                                   Designate all
                                                                                                                   states per WJB
                                                                                                                   9/18/98;
                                                                                                                   European patent
                                                                                                                   application no.
                                                                                                                   98950612.6;
                                                                                                                   Offered to
                                                                                                                   Orchid to do
                                                                                                                   National Stages
                                                                                                                   9/15/99;
                                                                                                                   Deleted
                                                                                                                   National Stage
                                                                                                                   actions and
                                                                                                                   application
                                                                                                                   abandoned (per
                                                                                                                   AH 3/29/00)
  12590          US      CPA   Pending   Print Array And       09/159564   9/24/98                          DSRC   12528 combined
                                         Method Of Fluid                                                           into this
                                         Transfer                                                                  application;
                                                                                                                   Related Cases:
                                                                                                                   12523, 12524,
                                                                                                                   12564;
                                                                                                                   Designate all
                                                                                                                   states per WJB
                                                                                                                   9/18/98; CPA
                                                                                                                   filed 11/9/99
  12590    PR    US      PRO  Abandoned  Microfluidic Area     60/060321   9/29/97                          DSRC   12528 combined
                                         Array Printer                                                             into this
                                                                                                                   case;  Related
                                                                                                                   Cases:  12523,
                                                                                                                   12524, 12564;
                                                                                                                   Designate all
                                                                                                                   states per WJB
                                                                                                                   9/18/98
  12678          US      ORD     Sold                          09/352670   7/9/99                          ORCHI   Filed by Orchid
  12753          US      ORD     Sold    Fluid Delivery        09/349438   7/9/99                          ORCHI   Filed by
                                         System For A                                                              Orchid; Orchid
                                         Microfluidic                                                              pays all costs
                                         Device Using
                                         Alternating
                                         Pressure Waveforms
  12968          US      ORD     Sold                          09/350762   7/9/99                          ORCHI   Filed by Orchid
  13173          US      ORD     Sold    Method Of Forming     09/315216   5/19/99                         ORCHI   Orchid filed
                                         Seals For A                                                               this application
                                         Microfluidic Device
  13201          US      ORD     Sold    Method And            09/349550   7/9/99                          ORCHI   Filed by Orchid
                                         Apparatus For
                                         Distributing Fluid
                                         In A Microfluidic
                                         Device
  13209    PR    US      PRO     Sold    Microfluidic          60/125064   3/18/99                         ORCHI   Orchid filed
                                         Continuous Flow                                                           this
                                         Approach To Detect                                                        Provisional;
                                         And Identify                                                              U.S. GOV. CASE;
                                         Biological Agents                                                         Orchid will not
                                         By Nucleic Acid                                                           file a 111(a)
                                         Target Signatures                                                         (1/00); SPS
                                                                                                                   notified 1/4/00

</TABLE>

                                    Page 20
<PAGE>

                               ORCHID BIOSCIENCES

<TABLE>
<CAPTION>
          Sub            Case                                Application    Filing    Patent     Issue    Owner-
 Case No. Case Country   Type   Status      Title                 No.        Date       No.      Date      ship      Remarks
<S>       <C>  <C>       <C>    <C>      <C>                 <C>           <C>       <C>         <C>      <C>      <C>
  13210    PR    US      PRO     Sold    Use Of Caged          60/125060   3/18/99                         ORCHI   Orchid filed
                                         Molecules In                                                              this
                                         Microfluidic                                                              Provisional;
                                         Devices For                                                               U.S. GOV. CASE;
                                         Spatial And                                                               Orchid abandons
                                         Temporal Control                                                          this
                                         Of Reactions                                                              application
                                                                                                                   1/12/00;
                                                                                                                   Offered to Gov.
                                                                                                                   1/12/00
</TABLE>

                                    Page 21
<PAGE>

                                                                  Execution Copy
                                                                  --------------

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE
TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS IT HAS BEEN REGISTERED UNDER THE ACT
AND SUCH LAWS OR (1) REGISTRATION UNDER APPLICABLE STATE SECURITIES LAWS IS NOT
REQUIRED AND (2) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY IS
FURNISHED TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE ACT IS NOT
REQUIRED.

                           ORCHID BIOSCIENCES, INC.

                       WARRANT TO PURCHASE COMMON STOCK

  This certifies that, for value received, Sarnoff Corporation (the "Holder") is
                                                                     ------
entitled to subscribe for and purchase up to Seventy Five Thousand (75,000)
shares (subject to adjustment from time to time pursuant to the provisions of
Section 5 hereof) of fully paid and nonassessable Common Stock of Orchid
BioSciences, Inc., a Delaware corporation (the "Company"), at the Warrant Price
                                                -------
(as defined in Section 2 hereof), subject to the provisions and upon the terms
and conditions hereinafter set forth.

  As used herein, the term "Common Stock" shall mean the Company's Common Stock,
                            ------------
$.001 par value per share, and any stock into or for which such Common Stock may
hereafter be converted or exchanged.

     1.  Term of Warrant. The purchase or conversion right represented by this
         ---------------
         warrant (hereinafter the "Warrant") is exercisable, in whole or in part
                                   -------
         at any time during the period commencing on April 13, 2000 (the
         "Effective Date") and continuing until the fifth anniversary thereof.
          --------------

     2.  Warrant Price. The initial exercise price of this Warrant shall be
         -------------
         equal to the price per share of the Company's Common Stock in the
         Initial Public Offering, subject to adjustment from time to time
         pursuant to the provisions of Section 5 hereof (the "Warrant Price").
                                                              -------------
         If there is no Initial Public Offering on or prior to April 13, 2001,
         the Warrant Price shall be twelve dollars ($12.00) per share.

     3.  Method of Exercise or Conversion; Payment; Issuance of New Warrant.
         ------------------------------------------------------------------

          (a) Exercise.  Subject to Section 1 hereof, the purchase right
              --------
     represented by this Warrant may be exercised by the Holder hereof, in whole
     or in part, by the surrender of this Warrant (with the notice of exercise
     form attached hereto as Exhibit 1 duly executed) at the principal office of
                             ---------
     the Company and (i) by the payment to the Company, by check or wire
     transfer, of an amount equal to the then applicable Warrant Price per share
     multiplied by the number of shares then being purchased; or (ii) by
     exercise of the Conversion Right under paragraph (b) below.  The Company
     agrees that the shares so purchased shall be deemed to be issued to the
     Holder hereof as the record owner of such shares as of the close of
     business on the date on which this Warrant shall have been surrendered and
     payment (or exercise of the

<PAGE>

     Conversion Right) made for such shares as aforesaid. In the event of any
     exercise of this Warrant and, in any event, certificates for the shares of
     stock so purchased shall be delivered promptly to the Holder hereof (and,
     in any event, within 15 days thereafter) and, unless this Warrant has been
     fully exercised or expired, a new Warrant representing the portion of the
     shares, if any, with respect to which this Warrant shall not then have been
     exercised, shall also be issued promptly to the Holder hereof (and, in any
     event, within fifteen (15) days).

          (b) Conversion.  Subject to Section 1 hereof, the Holder may convert
              ----------
     this Warrant (the "Conversion Right"), in whole or in part, into the number
                        ----------------
     of shares of Common Stock of the Company calculated pursuant to the
     following formula by surrendering this Warrant (with the notice of exercise
     form attached hereto as Exhibit 1 duly executed) at the principal office of
                             ------- -
     the Company specifying the number of shares of Common Stock of the Company,
     the rights to purchase which the Holder desires to convert:

                             X    =    Y (A - B)
                                       ---------
                                          A

     where:     X =  the number of shares of Common Stock to be issued to the
                     Holder;
                Y =  the number of shares of Common Stock subject to this
                     Warrant for which the Conversion Right is being exercised;
                A =  the fair market value of one share of Common Stock; and
                B =  the Warrant Price.

     As used herein, the fair market value of a share of Common Stock shall mean
     with respect to each share of Common Stock the closing price per share of
     the Company's Common Stock on the principal national securities exchange on
     which the Common Stock is then listed or admitted to trading or, if not
     then listed or admitted to trading on any such exchange, on the NASDAQ
     National Market System, or if not then listed or traded on any such
     exchange or system, the average of the bid and asked prices per share on
     NASDAQ Small-Cap Market or, if not then listed or traded, in the sole
     discretion of the Board of Directors of the Company, any other over-the-
     counter market, including the OTC Bulletin Board, which reports bid, asked
     and last sale prices and volume of sales, averaged over the 10 trading days
     consisting of the day as of which the current fair market value of Common
     Stock is being determined and the nine consecutive business days prior to
     such day.  If at any time such quotations are not available, the current
     fair market value of a share of Common Stock shall be the highest price per
     share which the Company could obtain from a willing buyer (not a current
     employee or director) for shares of Common Stock sold by the Company, from
     authorized but unissued shares, as reasonably determined in good faith by
     the Board of Directors of the Company, unless (i) the Company shall become
     subject to a merger, acquisition or other consolidation pursuant to which
     the Company is not the surviving party, in which case the current fair
     market value of a

                                       2
<PAGE>

     share of Common Stock shall be deemed to be the value received by the
     holders of the Company's Common Stock for each share of Common Stock
     pursuant to the Company's acquisition; or (ii) the Holder shall exercise
     its Conversion Right to purchase such shares within 15 days prior to the
     closing date of the initial underwritten public offering of the Company's
     Common Stock pursuant to a registration statement filed under the Act, in
     which case, the fair market value of a share of Common Stock shall be the
     price per share at which all registered shares are sold to the public in
     such offering. The Company agrees that the shares so converted shall be
     deemed to be issued to the Holder hereof as the record owner of such shares
     as of the close of business on the date on which this Warrant shall have
     been surrendered as aforesaid. In the event of any conversion of this
     Warrant, certificates for the shares of stock so converted shall be
     delivered promptly to the holder hereof (and, in any event, within 15 days
     thereafter) and, unless this Warrant has been fully converted or expired, a
     new Warrant representing the portion of the shares, if any, with respect to
     which this Warrant shall not then have been converted, shall also be issued
     promptly to the holder hereof (and, in any event, within fifteen (15)
     days).

     4.  Stock Fully Paid; Reservation of Shares.  All Common Stock which may be
         ---------------------------------------
issued upon the exercise or conversion of this Warrant will, upon issuance, be
duly authorized, validly issued, fully paid and nonassessable, and free from all
taxes, liens and charges with respect to the issue thereof.  During the period
within which the rights represented by this Warrant may be exercised, the
Company will at all times have authorized, and reserved for the purpose of the
issuance upon exercise of the purchase rights evidenced by this Warrant, a
sufficient number of shares of its Common Stock to provide for the exercise of
the rights represented by this Warrant.  The Company will take all such action
as may be necessary to ensure that such shares of Common Stock will be issued
without violation of any applicable law or regulation or of any requirements of
any domestic securities exchange or quotation system upon which the Common Stock
may be traded; provided, however, that the Company shall not be required to
effect a registration under federal or state securities laws with respect to
such exercise.  The Company shall use its best efforts, on and after the date
the Company shall file a registration statement covering the shares of Common
Stock issued upon exercise of this Warrant, to list such shares upon any
securities exchange or quotation system on which the Common Stock is traded.

     5.  Adjustment of Purchase Price and Number of Shares.  The kind of
         -------------------------------------------------
securities purchasable upon the exercise of this Warrant, the Warrant Price and
the number of shares purchasable upon exercise of this Warrant shall be subject
to adjustment from time to time upon the occurrence of certain events as
follows:

          (a) Reclassification, Consolidation or Merger.  In case of any
              -----------------------------------------
     reclassification, recapitalization, reorganization or change of outstanding
     securities of the class issuable upon exercise of this Warrant (other than
     a change in par value, or from par value to no par value, or from no par
     value to par value, or as a result of a subdivision or combination), or in
     case of any consolidation or merger of the Company with or into another
     corporation, other than a merger with another corporation in which the
     Company is a continuing corporation and which does not

                                       3
<PAGE>

     result in any reclassification or change of outstanding securities issuable
     upon exercise of this Warrant, or in case of any sale of all or
     substantially all of the assets of the Company, the Company, or such
     successor or purchasing corporation, as the case may be, shall execute a
     new Warrant, providing that the Holder of this Warrant shall have the right
     to exercise such new Warrant and procure upon such exercise, in lieu of
     each share of Common Stock theretofore issuable upon exercise of this
     Warrant, the kind and amount of shares of stock, other securities, money
     and property receivable upon such reclassification, recapitalization,
     reorganization, change, consolidation, or merger by a holder of one share
     of Common Stock. Such new Warrant shall provide for adjustments which shall
     be as nearly equivalent as may be practicable to the adjustments provided
     for in this Section 5. No consolidation or merger of the Company with or
     into another corporation referred to in the first sentence of this
     paragraph (a) shall be consummated unless the successor or purchasing
     corporation referred to above shall have agreed to issue a new Warrant as
     provided in this Section 5. The provisions of this subsection (a) shall
     similarly apply to successive reclassification, changes, consolidations,
     mergers and transfers.

          (b) Subdivision or Combination of Shares.  If the Company at any time
              ------------------------------------
     while this Warrant remains outstanding and unexpired shall subdivide or
     combine its Common Stock, the Warrant Price shall be proportionately
     decreased in the case of a subdivision or increased in the case of a
     combination.

          (c) Stock Dividends.  If the Company at any time while this Warrant is
              ---------------
     outstanding and unexpired shall pay a dividend with respect to Common Stock
     payable in, or make any other distribution with respect to Common Stock
     (except any distribution specifically provided for in the foregoing
     subparagraphs (b) or (c)) of, Common Stock, then the Warrant Price shall be
     adjusted, from and after the date of determination of stockholders entitled
     to receive such dividend or distribution, to that price determined by
     multiplying the Warrant Price in effect immediately prior to such date of
     determination by a fraction (a) the numerator of which shall be the total
     number of shares of Common Stock outstanding immediately prior to such
     dividend or distribution and (b) the denominator of which shall be the
     total number of shares of Common Stock outstanding immediately after such
     dividend or distribution.

          (d) Cash Dividends and Distributions.  If at any time or from time to
              --------------------------------
     time the holders of Common Stock (or any shares of stock or other
     securities at the time receivable upon the exercise of this Warrant) shall
     have received or become entitled to receive, without payment therefor, any
     cash, stock, other securities or property, the holder hereof shall, upon
     the exercise of this Warrant, receive, in addition to the number of shares
     of Common Stock receivable thereupon, and without payment of any additional
     consideration therefor, the amount of cash, stock, other securities and
     property which such holder would have received had he been the holder of
     record of such Common Stock as of the date on which holders of Common Stock
     received or became entitled to receive such cash, stock, other securities
     and property.

                                       4
<PAGE>

          (e) Adjustment of Number of Shares.  Upon each adjustment in the
              ------------------------------
     Warrant Price pursuant to any of Sections 5 (a) through (c), the number of
     shares of Common Stock purchasable hereunder shall be adjusted, to the
     nearest whole share, to the product obtained by multiplying the number of
     shares purchasable immediately prior to such adjustment in the Warrant
     Price by a fraction, the numerator of which shall be the Warrant Price
     immediately prior to such adjustment and the denominator of which shall be
     the Warrant Price immediately thereafter.

     6.   Notice of Adjustments.  Whenever any Warrant Price shall be
          ---------------------
adjusted pursuant to Section 5 hereof, the Company shall prepare a certificate
signed by its chief financial officer setting forth, in reasonable detail, the
event requiring the adjustment, the amount of the adjustment, the method by
which such adjustment was calculated, the Warrant Price after giving effect to
such adjustment and the number of shares then purchasable upon exercise of this
Warrant, and shall cause copies of such certificate to be mailed (by first class
mail, postage prepaid) to the holder of this Warrant at the address specified in
Section 11(d) hereof, or at such other address as may be provided to the Company
in writing by the holder of this Warrant.

     7.   Fractional Shares.  No fractional shares of Common Stock will be
          -----------------
issued in connection with any exercise hereunder, but in lieu of such fractional
shares the Company shall make a cash payment therefor upon the basis of the
Warrant Price then in effect.

     8.   Compliance with the Act.  The holder of this Warrant, by
          -----------------------
acceptance hereof, agrees that this Warrant and the shares of Common Stock to be
issued upon exercise hereof are being acquired for investment for such holder's
own account and not with a view toward distribution thereof, and that it will
not offer, sell or otherwise dispose of this Warrant or any shares of Common
Stock to be issued upon exercise hereof unless this Warrant has been registered
under the Act and applicable state securities laws or registration under
applicable state securities laws is not required and (ii) if reasonably
requested by the Company, an opinion of counsel reasonably satisfactory to the
Company is furnished to the Company to the effect that registration under the
Act is not required.

     9.   Transfer and Exchange of Warrant.
          --------------------------------

          (a) Transfer. This Warrant may be transferred to or succeeded by any
     person; provided, however, that the Company is given written notice by the
             --------- -------
     transferee at the time of such transfer stating the name and address of the
     transferee and identifying the securities with respect to which such rights
     are being assigned.

          (b) Exchange.  Subject to compliance with the terms hereof, this
              --------
     Warrant and all rights hereunder are transferable, in whole or in part, at
     the office of the Company by the holder hereof in person or by duly
     authorized attorney, upon surrender of this Warrant properly endorsed.
     Each taker and holder of this Warrant, by taking or holding the same,
     consents and agrees that this Warrant, when endorsed in blank, shall be
     deemed negotiable; provided, that the last holder of this Warrant as
                        --------
     registered on the books of the Company may be treated by the

                                       5
<PAGE>

     Company and all persons dealing with this Warrant as the absolute owner
     hereof for any purposes and as the person entitled to exercise the rights
     represented by this Warrant or to transfer hereof on the books of the
     Company, any notice to the contrary notwithstanding, unless and until such
     holder seeks to transfer registered ownership of this Warrant on the books
     of the Company and such transfer is effected.

     10.  Liquidating Dividends.  If the Company pays a dividend or makes a
          ---------------------
distribution on the Common Stock payable otherwise than in cash out of earnings
or earned surplus (determined in accordance with generally accepted accounting
principles) except for a stock dividend payable in shares of Common Stock (a
"Liquidating Dividend"), then the Company will pay or distribute to the holder
of this Warrant, upon the exercise hereof, in addition to the Common Stock
purchased upon such exercise, the Liquidating Dividend which would have been
paid to such holder if he had been the owner of record of such shares of Common
Stock immediately prior to the date on which a record was taken for such
Liquidating Dividend or, if no record was taken, the date as of which the record
holders of Common Stock entitled to such dividends or distribution were
determined.

     11.  Miscellaneous.
          -------------

          (a) No Rights as Shareholder.  Except as provided in the Agreement, no
              ------------------------
     holder of the Warrant or Warrants shall be entitled to vote or receive
     dividends or be deemed the holder of Common Stock or any other securities
     of the Company which may at any time be issuable on the exercise hereof for
     any purpose, nor shall anything contained herein be construed to confer
     upon the holder of this Warrant, as such, any of the rights of a
     stockholder of the Company or any right to vote for the election of
     directors or upon any matter submitted to stockholders at any meeting
     thereof, or to give or withhold consent to any corporate action (whether
     upon any recapitalization, issuance of stock, reclassification of stock,
     change of par value or change of stock to no par value, consolidation,
     merger, conveyance or otherwise) or to receive notice of meetings, or to
     receive dividends or subscription rights or otherwise until the Warrant or
     Warrants shall have been exercised and the shares purchasable upon the
     exercise hereof shall have become deliverable, as provided herein.

          (b) Replacement.  On receipt of evidence reasonably satisfactory to
              -----------
     the Company of the loss, theft, destruction or mutilation of this Warrant
     and, in the case of loss, theft or destruction, on delivery of an indemnity
     agreement, or bond reasonably satisfactory in form and amount to the
     Company or, in the case of mutilation, on surrender and cancellation of
     this Warrant, the Company, at its expense, will execute and deliver, in
     lieu of this Warrant, a new Warrant of like tenor.

          (c) Notice of Capital Changes.  In case:
              -------------------------

              (i) the Company shall declare any dividend or distribution
          payable to the holders of its Common Stock;

                                       6
<PAGE>

               (ii) there shall be any capital reorganization or
          reclassification of the capital stock of the Company, or consolidation
          or merger of the Company with, or sale of all or substantially all of
          its assets to, another corporation or business organization in which
          the holders of the Company's voting securities before the transaction
          beneficially own less than 50% of the voting securities of the
          surviving entity; or

               (iii)  there shall be a voluntary or involuntary dissolution,
          liquidation or winding up of the Company;

     then, in any one or more of said cases, the Company shall give the holder
     of this Warrant written notice, in the manner set forth in subparagraph (d)
     below, of the date on which a record shall be taken for such dividend, or
     distribution or for determining stockholders entitled to vote upon such
     reorganization, reclassification, consolidation, merger, sale, dissolution,
     liquidation or winding up and of the date when any such transaction shall
     take place, as the case may be. Such written notice shall be given at least
     30 days prior to the transaction in question and not less than 20 days
     prior to the record date in respect thereof.

          (d) Notice.  Any notice given to either party under this Warrant shall
              ------
     be in writing, and any notice hereunder shall be deemed to have been given
     upon the earlier of delivery thereof by hand delivery, by courier, or by
     standard form of telecommunication or three (3) business days after the
     mailing thereof if sent registered mail with postage prepaid, addressed to
     the Company at its principal executive offices and to the holder at its
     address set forth in the Company's books and records or at such other
     address as the holder may have provided to the Company in writing.

          (e) No Impairment.  The Company will not, by amendment of its
              -------------
     Certificate of Incorporation or through any reorganization,
     recapitalization, reclassification, transfer of assets, consolidation,
     merger, dissolution, issue or sale of securities or any other voluntary
     action, avoid or seek to avoid the observance or performance of any of the
     terms to be observed or performed hereunder by the Company, but will at all
     times in good faith assist in the carrying out of all the provisions in the
     Warrant.

          (f) Governing Law.  This Warrant shall be governed by and construed
              -------------
     under the laws of the State of Delaware.

          (g) Issue Tax.  The issuance of certificates for shares of Common
              ---------
     Stock upon the exercise of the Warrant shall be made without charge to the
     holder of the Warrant for any issue tax in respect thereof; provided,
     however, that the Company shall not be required to pay any tax which may be
     payable in respect of any transfer involved in the issuance and delivery of
     any certificate in a name other than that of the then holder of the Warrant
     being exercised.

          (h) Amendments and Waiver. Any term of this Warrant may be amended or
              ---------------------
     waived only with the written consent of the Company and by a majority in
     interest of the holders of

                                       7
<PAGE>

     outstanding Warrants of the Company issued under the Purchase Agreement
     (determined by reference to the number of shares underlying such Warrants).
     In the event that such required consent is obtained, such amendment or
     waiver shall be binding on the holder of this Warrant, the other Warrants
     and such holders' assigns. Any such waiver of a breach of any provision of
     this Warrant shall not operate as or be construed to be a waiver of any
     other breach of such provision or of any breach of any other provision of
     this Warrant.

          (i) Automatic Conversion.  In the event that the holder of this
              --------------------
     Warrant has not exercised this Warrant or any portion hereof as of the
     expiration date hereof and on such date the Warrant Price is less than the
     fair market value of the Company's Common Stock, the holder of this Warrant
     shall be deemed to have exercised this Warrant in accordance with the
     Conversion Right under Section 3(b) as of the date of expiration of the
     Warrant.

IN WITNESS WHEREOF, this Warrant is executed as of this 13th day of April, 2000.

                                    Orchid BioSciences, Inc.

                                    By:
                                         ---------------------
                                         Donald R. Marvin
                                         Senior Vice President
                                         & Chief Operating Officer

                                       8

<PAGE>

                                                            EXHIBIT 1

                               NOTICE OF EXERCISE

TO:       ORCHID BIOSCIENCES, INC.

          1.    Check Box that Applies:

  __            The undersigned hereby elects to purchase _________ shares of
Common Stock of ORCHID BIOSCIENCES, INC. pursuant to the terms of the attached
Warrant, and tenders herewith payment of the purchase price of such shares in
full.

  __            The undersigned hereby elects to convert the attached warrant
into _________ shares of Common Stock of ORCHID BIOSCIENCES, INC. pursuant to
the terms of the attached Warrant.

          2.    Please issue a certificate or certificates representing said
shares of Common Stock in the name of the undersigned or in such other name as
is specified below:

                    -------------------------------------
                                   (Name)

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

                    -------------------------------------
                                  (Address)

         3.     The undersigned represents that the aforesaid shares of Common
Stock are being acquired for the account of the undersigned for investment and
not with a view to, or for resale in connection with, the distribution thereof
and that the undersigned has no present intention of distributing or reselling
such shares.

                                           -------------------------------------
                                           Signature

                                       9

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