Document:

<PAGE>

                              SUBCONTRACT AGREEMENT

                                     Between

                            TEAM PACIFIC CORPORATION

                                       And

                         ADVANCED POWER TECHNOLOGY, INC.

                                January 26, 2000

                                       To

                                January 26, 2003

[ * ] = CONFIDENTIAL TREATMENT REQUESTED

                                       1
<PAGE>

         This ASSEMBLY AGREEMENT (hereinafter referred to as "Agreement") is
entered into the 26th day of January year 2000 by and between:

         ADVANCED POWER TECHNOLOGY, INC., a corporation duly organized and
existing under the laws of the United States of America, having its principal
place of business at 405 S.W. Columbia Street, Bend, Oregon 97702, USA
(hereinafter referred to as "Customer") and

         TEAM PACIFIC CORPORATION, a company duly organized and existing under
the laws of the Republic of the Philippines, having its principal place of
business at Electronics Avenue. FTI Complex, Tagig, Metro Manila, Philippines
(hereinafter referred to as "TEAM")

                                   WITNESSETH:

         WHEREAS, TEAM has previously assembled electronics devices for Customer
and has the capacity to manufacture and test plastic and hermetic packages and
install semiconductor devices provided by Customer in such packages at its
facility in the Philippines; and

         WHEREAS, Customer desires to obtain a commitment from TEAM to make
available for Customer a portion of TEAM's production capacity described above:

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein, the parties agree as follows;

AGREEMENT

1.0      DEFINITIONS

         1.1      "Electrically Sorted Dice" shall mean Customer's proprietary
                  semiconductor devices.

         1.2      "Production Materials" shall mean materials, including
                  electrically sorted dice, which Customer provides to TEAM.

         1.3      "Customer Forecasts" shall have the meaning set forth in
                  Section 3.1 below.

         1.4      "Finished Products shall mean the completed packages with
                  electrically sorted dice installed, which TEAM agrees to
                  assemble under this Agreement.

         1.5      "Year" shall mean a period of twelve months, and a year of
                  this agreement shall be a period of twelve (12) months from
                  the date of Agreement.

         1.6      "WIP" shall mean work in process.

2.0      MANUFACTURE AND ASSEMBLY AND TEST OF PACKAGES: MATERIALS

<PAGE>

         2.1      TEAM shall manufacture packages pursuant to orders received
                  from Customer and shall install electrically sorted dice in
                  the packages pursuant to Customer's process specifications as
                  set forth in Appendix I.

         2.2      TEAM agrees to provide all equipment, personnel, manufacturing
                  space needed to assemble Customer's finished product in the
                  monthly quantities set fort in Customer's monthly forecast.
                  TEAM also guarantees enough office space for its Customer's
                  representatives and storage space for all consigned materials
                  for module assembly. TEAM agrees to provide the materials
                  required for the assembly of the Finished Products other than
                  electrically sorted dice and items mentioned in Appendix II
                  and V.

         2.3      Customer shall supply TEAM with sufficient electrically sorted
                  dice to allow TEAM to meet Customer's first month's firm
                  commitment as provided for in Section 3.1.

         2.4      TEAM agrees to assemble Customers finished product in
                  accordance with Customer's process specifications indicated in
                  Appendix I of this Agreement. Customer will give TEAM
                  sixty-(60) days written notice of any changes or modifications
                  to those specifications if those changes affect Customer's
                  devices. TEAM agrees that no changes can take place without
                  Customer's expressed, written approval. TEAM agrees to furnish
                  Customer a full copy of the specs in Appendix IV in the event
                  of a change in revision.

         2.5      Customer agrees to give TEAM sixty-(60) day written notice if
                  Customer requires any material change to TEAM's standard
                  process specifications.

         2.6      Customer agrees to consign equipment in Appendix IV to TEAM
                  and TEAM understands they are responsible for calibration and
                  maintenance of this equipment. Customer maintains ownership of
                  this equipment.

         2.7      Customer agrees to pay for the price of the Finished Products
                  used for TEAM's Internal Reliability Monitors per Appendix
                  III. Customer will be copied on all reports.

3.0      CUSTOMER FORECASTS: ORDERS

         3.1      On or before the 15th day of each month, Customer will
                  provide TEAM with a three-(3) month rolling forecast of all
                  the production levels of TEAM (a "Customer Forecast"). The
                  first month forecast shall be [ * ] firm commitment. The
                  Customer Forecast for the second month shall be [ * ] firm
                  and the third month shall be a good faith estimate of
                  number of Finished Products to be assembled by TEAM.

         3.2      TEAM agrees to reserve sufficient production capacity for
                  manufacturing packages and assembling Finished Products in
                  accordance with Section 3.1 above. A [ * ] buffer capacity
                  shall be reserved by TEAM in order to handle upward
                  fluctuations of orders from customer.

[ * ] = CONFIDENTIAL TREATMENT REQUESTED

                                       3
<PAGE>

         3.3      Nothing in this Agreement shall restrict or prohibit Customer
                  from contracting with others for assembly services similar to
                  those provided by TEAM under this Agreement, provided that
                  TEAM shall be given priority with respect to volume covered by
                  the Customer Forecast and provided further that TEAM maintains
                  a leadership position with respect to price, delivery,
                  quality, and customer service.

         3.4      TEAM agrees to provide customer WIP reports including
                  scheduled ship dates twice per week and monthly yield
                  summaries.

         3.5      Customer will use a blanket purchase order for and every six
                  months.

         3.6      Subject to the terms set forth herein, TEAM shall provide
                  Finished Products to Customer consistent with the releases as
                  provided by the purchase order and supporting purchase order
                  number.

4.0      PAYMENT AND PRICING

         4.1      Customer shall pay TEAM for assembly and test of Finished
                  Products pursuant to invoices received by Customer within
                  thirty (30) days from invoice date. All invoices shall be in
                  U.S. Dollars and all payments shall be made to TEAM via
                  telegraphic transfer.

         4.2      Customer shall pay TEAM for non-trade expense within 7 days
                  from invoice date. Brokerage, releasing fee and shipping
                  charges, office supplies and other advances made by TEAM in
                  behalf of the Customer are classified as non-trade expenses.

         4.3      Subject to adjustment as provided in Section 4.4 below, prices
                  shall be as set forth in the price schedule shown in Appendix
                  II attached. All prices are quoted FOB, ex-TEAM's plant,
                  Manila.

         4.4      If TEAM's direct material or labor or overhead costs
                  related to TEAM's performance under this Agreement increase
                  by more than [ * ] percent during the first year of this
                  Agreement or by more than [ * ] percent during the
                  succeeding years of this Agreement, for any reason
                  whatsoever, TEAM may give customer written notice of a
                  proposal price increase. TEAM shall endeavor to provide the
                  justification for such price increase to the extent
                  possible without disclosing the details of its cost
                  structure. Customer shall thereafter within thirty (30)
                  days of the date of TEAM's notice either; (a) notify TEAM
                  that it accepts the price increase, in which case the
                  increase shall be effective for all Finished Products
                  delivered after the date of Customer's notice; or (b)
                  notify TEAM of its acceptable new price. Both parties agree
                  to exercise good faith and resolve on best effort basis any
                  differences on the proposed price increase within sixty
                  (60) days.

         4.5      TEAM will 100% test products for DVSD, final test and UIS on
                  testers supplied by Customer. TEAM and Customer recognize that
                  additional testing currently performed by Customer may be off
                  loaded to TEAM sometime in the future. Equipment consignment
                  and test charges will be mutually agreed upon at a later

[ * ] = CONFIDENTIAL TREATMENT REQUESTED

                                       4

<PAGE>

                  date. TEAM will also conduct isolation tests on SOT227 using
                  Customer's supplied isolation testers. All units, which pass
                  through isolation and open short test, shall be charged to
                  customer. All rejected units at isolation test are billable to
                  the customer.

         4.6      TEAM shall credit the price paid by Customer for any Finished
                  Products, which may not conform, to the specifications as
                  defined in Appendix I, or to any future updates to the
                  specifications duly approved by Customer.

5.0      SHIPMENTS

         5.1      Customer shall ship all Production Materials and Dice to
                  TEAM's plant in Manila at Customer's expense.

         5.2      TEAM shall ship all Finished Products assembled three (3)
                  times per week, unless otherwise mutually agreed upon on a
                  case to case basis. TEAM shall insure and arrange for shipment
                  of Finished Products by any reasonable method specified by
                  Customer. Customer shall pay all charges for shipping,
                  insurance and in land charges on Finished Products as well as
                  shipback of Production Materials and Dice.

6.0      TAXES, PERMITS, APPROVALS

         6.1      TEAM shall have the sole responsibility to pay any and all
                  import duties. taxes and other charges levied by government
                  authorities in the Philippines upon, or in connection with,
                  any transaction covered by this Agreement.

         6.2      TEAM shall have the sole responsibility to obtain all permits,
                  licenses and approval from government authorities in the
                  Philippines necessary for the performance of this Agreement to
                  comply with any requirement to file this Agreement with any
                  government authority in the Philippines.

         6.3      Upon Customer's request, TEAM shall promptly provide Customer
                  with any and information and documentation as may by required
                  for customs clearance into the United States or the
                  Philippines.

7.0      COMPLIANCE WITH LAWS

         Each party shall comply with laws and regulations applicable to it in
         the performance of its obligations pursuant to this Agreement.

8.0      OWNERSHIP

         All electrically sorted dice, Production Materials provided by Customer
         and Finished Products shall be and all times remain the property of
         Customer. TEAM agrees that it

                                       5
<PAGE>

         will not place nor permit to stand any lien of other encumbrance
         against electrically sorted dice, Production Materials provided by
         Customer or Finished Products.

9.0      WARRANTY

         TEAM warrants that the products to be assembled, open/short, final
         tested (on some package types), isolation tested and shipped hereunder
         shall have been assembled, open/short tested, final tested (on some
         package types), isolation tested and shipped in conformity with
         specifications of both TEAM and Customer. TEAM shall have no obligation
         under any warranty set forth above in the event that:
         a.       The Finished Products have failed as a result of catastrophe
             or fault or negligence of Customer or its Customers;
         b.       The Finished Products have been modified by Customer or its
             Customers in a way which affects the performance of the Finished
             Product;
         c.       The Finished Products have not been stored, maintained or used
             by Customer or its Customers in accordance with Customer's
             standard operating and/or maintenance instructions.
         TEAM makes no warranty of fitness for purpose in respect of the
         products assembled, open/short tested, isolation tested and shipped
         hereunder.

10.0     CONFIDENTIALITY

         TEAM and Customer agree, shall cause its employees, subcontractors,
         customers and agents, during the term of this Agreement and thereafter
         to keep confidential and not disclose to third parties or use, except
         as expressly authorized in writing by both parties or as required by
         legally constituted authority or in the course of performing it
         obligations hereunder, any confidential information covered by this
         Agreement. Confidential information shall include Customer's and TEAM's
         written specifications and all other information provided and
         identified by both parties as confidential or which TEAM or Customer
         has reason to know is treated by one party as confidential.

11.0     INDEMNIFICATION

         Each party shall defend and hold harmless the other party, its agents,
         employees and other representatives from and against and shall
         indemnify each such person for any liability, loss, costs expenses and
         damages to such person arising out of any act, neglect, default or
         omission of it or any agents, employees or other representatives in
         connection with this Agreement. The indemnifying party shall have the
         right to control the defense, compromise or settlement of any third
         party claim. action or suit involving the indemnifying party and the
         indemnified party shall cooperate and furnish such records, information
         and testimony as may reasonably be requested by the indemnifying party,
         the indemnified party shall be entitled to participate in, but no
         direct, the defense of any such claim, action or proceeding with
         counsel of its own choice. Nothing herein is intended to or shall
         relieve any party from liability for its own act, omission or
         negligence.

                                       6
<PAGE>

12.0     TERMS AND TERMINATION

         12.1     This Agreement shall continue in full force and effect for
                  a-period of thirty six (36) months from the date of this
                  Agreement unless earlier terminated as provided below in this
                  section. An annual review shall be done by either party in
                  order to consider any change that may affect the condition of
                  the business between TEAM and APT. Prices however, are subject
                  to change at any time if mutually agreed upon by TEAM and the
                  Customer.

         12.2     Either party may terminate this Agreement in the event that
                  the other party defaults in the performance of its obligations
                  under this Agreement and the default has not been remedied to
                  the reasonable satisfaction of the non defaulting party within
                  ninety (90) days after receipt by the defaulting party of
                  written notice of the default.

         12.3     Customer may terminate this Agreement after giving TEAM ninety
                  (90) days' written notice of its intention to do so if TEAM
                  and Customer cannot agree on (a) mutually acceptable price
                  increases as provided in section 4.4 or (b) any modification
                  to Customer's process specifications proposed by either party.

         12.4     Customer may terminate this Agreement immediately as provided
                  in Section 13.2. TEAM may terminate the Agreement immediately
                  in the event the Customer fails or refuses to pay any
                  outstanding billing of TEAM under this Agreement.

         12.5     Upon termination of this Agreement, at Customer's request,
                  TEAM shall immediately deliver to Customer all electrically
                  sorted dice, Production Materials provided by Customer, and
                  Finished Products in its possession. And the Customer shall
                  pay outstanding billing of TEAM consistent with the payment
                  terms as described in Section 4.1 including all materials
                  purchased by TEAM for the manufacture of the Customer's
                  products.

         12.6     Upon termination or expiration of the term of this Agreement,
                  the rights and obligations of the parties under this Agreement
                  shall end, and neither party shall have claim for termination
                  damages, against the other; provided, however; that the
                  following provisions shall survive termination of this
                  Agreement: (a) Customer's payment obligations specified in
                  Section 4; (b) Team's obligations specified in Section 6 and
                  8; (c) any law, order, proclamation, regulation, ordinance,
                  demand or requirement of any government or (d) any other acts
                  whatsoever, whether similar or dissimilar to those enumerated
                  above that are beyond the reasonable control of either party
                  to this Agreement, the party so affected, upon giving prompt
                  notice to the other party, shall be excused from the
                  performance of the obligation or obligations so prevented,
                  restricted or interfered with, provided the affected party
                  uses its best efforts to rectify, avoid or remove such causes
                  on nonperformance.

                                       7
<PAGE>

13.0     FORCE MAJEURE

         13.1     Subject to the limitation provided in 13.2 below, if the
                  performance of this Agreement or any obligation provided
                  herein is prevented, restricted or interfered with by reason
                  of (a) fire, explosion, plant breakdown, failure of machinery,
                  strike or labor dispute, whether creating significant property
                  damage or failure of sources of supply of raw materials,
                  supplies, power or water, (b) war, police actions, conflicts
                  involving armed forces, revolutions, insurrections or civil
                  commotion, (c) any law, order, proclamation, regulation,
                  ordinance demand or requirement of any government or (d) any
                  other acts whatsoever, whether similar or dissimilar to those
                  enumerated above that are beyond the reasonable control of
                  either party to this Agreement, the party so affected, upon
                  giving prompt notice to the other party, shall be excused from
                  the performance of the obligation or obligations so prevented,
                  restricted or interfered with, provided the affected party
                  uses its best efforts to rectify, avoid or remove such causes
                  of nonperformance.

         13.2     If any condition described in 13.1 above shall prevent,
                  restrict or interfere with TEAM's performance of any
                  obligation hereunder for a period of sixty (60) or more days,
                  Customer shall have the right immediately to terminate this
                  Agreement without prior notice to TEAM and at no cost to
                  Customer.

14.0     LIMITATIONS OF LIABILITY

         In no event shall customer have any liability to TEAM or any other
         person for consequential, incidental, indirect or special damages of
         any nature whatsoever (including without limitation, lost revenues,
         lost profits, delays or loss of use) arising out of or in any way
         related to Customer's performance or nonperformance of this Agreement.
         Customer's liability to TEAM upon expiration or termination of this
         Agreement for any reason, with or without causes, shall be limited to
         payment for Finished Products on order at the time of termination and
         materials purchased by TEAM for the manufacture of the Customer's
         products. These limits will apply to all claims, including without
         limitation contract, indemnify and tort.

15.0     GENERAL

         15.1     Interpretation and Governing Laws. This Agreement shall be
                  interpreted in accordance with the plain English meaning of
                  its terms except for the industry accepted abbreviations and
                  shall be governed by the laws of California, USA, excluding
                  choice of laws rules and excluding the United Nations
                  Convention on the International Sale of Goods.

         15.2     Venue, Attorneys Fees. TEAM consents to personal jurisdiction
                  over it by the state and federal courts of California in.
                  connection with any dispute arising out of this Agreement. In
                  any action to enforce or interpret this Agreement, the
                  prevailing party shall be entitled to recover reasonable costs
                  and attorneys fees at trial, on appeal, and on any petition
                  for review.

                                       8
<PAGE>

         15.3     Notices. Any notice or report permitted or required by this
                  Agreement shall be deemed given if delivered personally or
                  sent by First Class Mail, postage prepaid, addressed to the
                  other party at the address first written above or at such
                  other address as designated by the party by written notice, or
                  by confirmed telex or facsimile. If notice is given by mail
                  and the date of the notice affects either party's rights under
                  this Agreement, the effective date of the notice shall be
                  seven (7) days after the date of mailing or the date the
                  notice is received whichever is earlier.

         15.4     Entire Agreement: Modification. This Agreement contains the
                  entire agreement and understanding between and among the
                  parties with respect to the subject matter hereof. and unless
                  otherwise provided in this Agreement, no modification or
                  waiver of any of the provisions, or any future representation,
                  promise, or addition, shall be binding upon the parties unless
                  made in writing and signed by both parties.

         15.5     Waiver. The failure of either party to enforce at any time any
                  provisions of this Agreement shall not be construed to be a
                  waiver of such provision or of the right thereafter to enforce
                  each and every provision of this Agreement. No waiver by
                  either party to this Agreement, either express or implied, of
                  any breach of any term, condition or obligation of this
                  agreement shall be construed as a waiver of any subsequent
                  breach of that term, condition of obligation or of any other
                  term, condition or obligation or of any other term, condition
                  or obligation of this Agreement.

         15.6     Assignment: Binding Effect. Neither party shall assign,
                  transfer, or sell its rights under this Agreement or delegate
                  its duties hereunder without the prior written consent of the
                  other parties hereto. This Agreement shall be binding upon and
                  inure to the benefit of the parties hereto and their
                  successors and permitted assigns.

         15.7     Severability. If any provision, term or other portion of this
                  Agreement shall be held invalid, illegal or unenforceable by
                  any court of competent jurisdiction, the remaining portion
                  shall remain in force and effect.

         15.8     Heading. Headings used this agreement are for convenience only
                  and shall not be construed as apart of or affect the
                  construction or interpretation of any provision of this
                  Agreement.

         15.9     Export Control. TEAM understands that Customer is subject to
                  regulation by United States government agencies, which
                  restrict export or diversion of Finished Products and
                  Production Materials or information provided by Customer to
                  TEAM hereunder. Regardless of any disclosure by Customer to
                  TEAM of an ultimate destination of Finished Products or any
                  information disclosed hereunder, TEAM warrants that it will
                  not export in any manner, either directly or indirectly, any
                  product or information without fist obtaining all necessary
                  approvals from appropriate U.S. government agencies. TEAM
                  acknowledges that the regulation

                                       9
<PAGE>

                  of product export is in continuous modification. TEAM agrees
                  to complete all documents and meet all requirements arising
                  out of such modifications.

         15.10    Customer shall, at its expense, supply TEAM with jigs and
                  fixtures (i.e.: graphite boats) to allow TEAM to perform its
                  obligation under this agreement. If in case forecast goes up
                  and additional jigs and fixtures are required, Customer shall,
                  at its expense provide additional jigs and fixtures. This also
                  covers new devices with new configuration. TEAM, however, is
                  responsible for replacement of these jigs and fixtures in case
                  of damage and normal wear and tear.

         15.11    Governing Language. This Agreement may be translated into a
                  language other than English version of the Agreement control
                  the rights and obligations of the parties regardless of
                  subsequent translation and regardless of any reliance by any
                  party upon such translation. All communications and notices to
                  this Agreement shall be in English.

         In Witness whereof. the parties have caused the Agreement to be
         executed as of the date first set forth above.

TEAM PACIFIC CORPORATION               ADVANCED POWER TECHNOLOGY, INC.
By:      S/S                         By:     S/S

Ceferino F. Bautista                   Russell Creecraft
Senior Vice President - Sales          Vice President - Manufacturing Operations

                                       10

<PAGE>

                                   APPENDIX I

                             PROCESS SPECIFICATIONS

<TABLE>
<CAPTION>
REVISION NO.      DOCUMENT NO.         DOCUMENT TITLE
<S>               <C>                  <C>
15                TAFC-1064            TPC TO-247 ASSY. PROCESS FLOWCHART
11                TAFC-1066            TPC SOT-227 PROCESS FLOWCHART
7                 TAFC-1175            TPC TO-264 PROCESS FLOWCHART
4                 TAFC-1208            TPC TO-268 (D3PAK) PROCESS FLOWCHART
1                 TAFC-1211            TPC EXT TO-247 ASSEMBLY PROCESS
                                       FLOWCHART
F                 D3P ENGG             D3PAK PACKAGE OUTLINE DRAWING
3                 PD-247-5             TO-247 PACKAGE OUTLINE DRAWING
1                 PD-EXT-2473          EXT 247 PACKAGE OUTLINE DRAWING
                                       (MAX247, TO-247 HOLELESS)
1                 PD-0001-P            TO-264-PACKAGE OUTLINE DRAWING
                                       TEAM STANDARD
3                 TAFC-1213            TPC-APT Application Specific Power Module
                                       (ASPM) Assembly Process Flowchart
</TABLE>

                                       11

<PAGE>

APPENDIX PRICE LIST
STANDARD TO247 & HOLELESS TO247
<TABLE>
<S><C>
                  STD TO247 W/SINGLE DIE                                   KTMC                                    HYSOL
      TO-247 SINGEL DIE W/O CATHODE WIRE
                               AUTO TRIM
                                                         FIRST    EXCESS OF      EXCESS OF   HYSOL   FIRST    EXCESS OF   EXCESS OF
                                                                                             ADDER
                                                         [                   *           ]           [             *             ]
                                             BASE PRICE  [                   *           ]           [             *             ]

                    STD TO247 W/DUAL DIE                                   KTMC                                    HYSOL

                                                         FIRST    EXCESS OF      EXCESS OF   HYSOL   FIRST    EXCESS OF   EXCESS OF
                                                                                             ADDER
                                                         [                   *            ]          [             *             ]
                                             BASE PRICE  [                   *            ]  [  *  ] [             *             ]

  STD TO247 W/SINGLE DIE W/O CENTER LEAD                                   KTMC                                    HYSOL
                        (W/CATHODE WIRE)
                                                         FIRST    EXCESS OF      EXCESS OF   HYSOL   FIRST    EXCESS OF   EXCESS OF
                                                                                             ADDER
                                                         [                   *            ]          [             *             ]
                                             BASE PRICE  [                   *            ]  [  *  ] [             *             ]

                    STD TO247 RF-104/114                                   KTMC                                    HYSOL
                 APT SUPPLIES SUBSTRATES
                                                         FIRST    EXCESS OF      EXCESS OF   HYSOL   FIRST    EXCESS OF   EXCESS OF
                                                                                             ADDER
                                                         [                   *            ]          [             *             ]
                                             BASE PRICE  [                   *            ]  [  *  ] [             *             ]

                     STD TO247 RF105/125                                   KTMC                                    HYSOL
                 APT SUPPLIES SUBSTRATES
                                                         FIRST    EXCESS OF      EXCESS OF   HYSOL   FIRST    EXCESS OF   EXCESS OF
                                                                                             ADDER
                                                         [                   *            ]          [             *             ]
                                             BASE PRICE  [                   *            ]  [  *  ] [             *             ]

                          HOLELESS TO247                                   KTMC                                    HYSOL
                                                         ANY                                 HYSOL   ANY
                                                         VOLUME              *               ADDER   VOLUME
                                             BASE PRICE  [                   *            ]  [  * ]  [             *             ]
COST ADDER FOR MANUAL UIS                            [        *        ]
COST ADDER FOR SOLDER PLATE                          [        *        ]
COST ADDER FOR MANUAL FINAL TEST                     [        *        ]
COST DEDUCTION TO REPLACE O/S W/UIS                  [        *        ]
OR DVSD
COST DEDUCTION FOR DICE RCVD SAWN                    [        *        ]        (1 DIE)
COST DEDUCTION FOR DICE RCVD SAWN                    [        *        ]        (2 DIE)
                  QUICK TURN ADDER [ * ] SINGLE DIE [ * ] PCS MAX
                                   [ * ] ALL OTHER  [ * ] PCS MAX
</TABLE>

ADDITIONAL PROVISIONS
-        ALL T0247 BASE PRICES INCLUDE O/S TEST, MARK, SOLDER DIP, SHIPPING
         TUBES, & BOXES
-        TEAM SUPPLIES ALL MATERIALS EXCEPT DIE UNLESS OTHERWISE STATED HEREIN
-        IN DETERMINING WHICH DEVICE TYPE WILL FALL UNDER THE "IN EXCESS OF [*]
         UNITS PER MINTH" CATEGORY, THE INCREMENTAL VOLUME SHALL BE APPORTIONED
         TO EASH DEVICE TYPE'S PROPORTIONATE OF THE TOTAL ACTUAL VOLUME FOR THE
         RECKONING PERIOD.

[ * ] = CONFIDENTIAL TREATMENT REQUESTED

                                       12
<PAGE>

<TABLE>
<S><C>
SOT227
                             SINGLE DIE                                                                                      HYSOL
        USING THERMIC EDGE AND CERAMTEC                              FIRST    EXCESS OF         HYSOL           FIRST    EXCESS OF
                              SUBSTRATE                                                         ADDER
                                                                     [        *        ]                        [        *        ]
                                                         BASE PRICE  [        *        ]        [   *    ]      [        *        ]
                                            SUBSTRATE COST INCREASE  [        *        ]                        [        *        ]
                                           SUBSTRATE COST REDUCTION  [        *        ]                        [        *        ]
                                                              TOTAL

                                 DUAL DIE                                      KTMC                                          HYSOL
                                                                     FIRST    EXCESS OF         HYSOL           FIRST    EXCESS OF
                                                                                                ADDER
                                                                     [        *        ]                        [        *        ]
                                                         BASE PRICE  [        *        ]        [   *    ]      [        *        ]
                                            SUBSTRATE COST INCREASE  [        *        ]                        [        *        ]
                                                              TOTAL  [        *        ]                        [        *        ]

                           1/2H.P/AP/FRED                                                                                    HYSOL
                                                                     FIRST    EXCESS OF         HYSOL           FIRST    EXCESS OF
                                                                                                ADDER
                                                                     [        *        ]                        [        *        ]
                                                         BASE PRICE  [        *        ]        [   *    ]      [        *        ]
                                            SUBSTRATE COST INCREASE  [        *        ]                        [        *        ]
                                                              TOTAL  [        *        ]                        [        *        ]

                           1/2H.P/AP/FRED                                                                                    HYSOL
  15 MILS ALUMINA W/8 MILS DBC BOTH SIDES                            FIRST    EXCESS OF         HYSOL           FIRST    EXCESS OF
                                FROM IXYS                                                       ADDER
                                                                     [        *        ]                        [        *        ]
                                                         BASE PRICE  [        *        ]        [   *    ]      [        *        ]
                                            SUBSTRATE COST INCREASE  [        *        ]                        [        *        ]
                                                              TOTAL  [        *        ]                        [        *        ]

                                    PFC                                                                                      HYSOL
                                                                     FIRST    EXCESS OF         HYSOL           FIRST    EXCESS OF
                                                                                                ADDER
                                                                     [        *        ]                        [        *        ]
                                                         BASE PRICE  [        *        ]        [   *    ]      [        *        ]
                                            SUBSTRATE COST INCREASE  [        *        ]                        [        *        ]
                                                              TOTAL  [        *        ]                        [        *        ]
</TABLE>

[ * ] = CONFIDENTIAL TREATMENT REQUESTED

                                       13
<PAGE>

SOT-227 CO

                  COST ADDER FOR MANUAL UIS           [*]
                  COST ADDER FOR SOLDER PLATE         [*]
                  ADDER FOR MANUAL FINAL TEST         [*]
                  DUAL DIODE                          [*]
                  COST REDUCTION TO REPLACE O/S W/UIS [*]
                  OR DVSD                             [*]
                  ADDER DVSD FT,Q + & NO UIS          [*]
                  ADDER FOR UIS. DVSD. FT.Q+          [*]
                  COST REDUCTION FOR DICE RCVD SAWN   [*]     (AP)
                                                      [*]     (DUAL)
                                                      [*]     (P)
                                                      [*]     (SINGLE)
                                     QUICK TURN ADDER [*] SINGLE DIE [*] PCS MAX
                                                      [*] ALL OTHER,[*] PCS MAX

  ADDITIONAL PROVISIONS
  -ALL SOT227 BASE PRICES INCLUDE O/S & ISOLATION TEST MOUNTING HARDWARE
  (SCREWS/NUTS/WASHERS), SHIPPING TUBES, & BOXES
  -ALL SOT227 ASSEMBLY ASSUMES THE USE OF ALN SUBSTRATES (MIN. CONDUCTIVITY IS
  170 W/C)
  -VOLUME PRICE BREAKS DETERMINED BY TOTAL SOT227 VOLUME INCLUDING ALL
  CONFIGURATIONS
  -VOLUME PRICE BREAKS BASED ON MONTHLY LOAD/RECEIPTS FROM CUSTOMER
  -TEAM SUPPLIES ALL MATERIALS EXCEPT DICE UNLESS OTHERWISE STATED HEREIN

[ * ] CONFIDENTIAL TREATMENT REQUESTED

                                       14
<PAGE>

<TABLE>
<S><C>
                             RF (32W)                                                                                  HYSOL
           APT SUPPLIES CTR SUBSTRATE                              FIRST    EXCESS OF         HYSOL        FIRST
                                                                                              ADDER
                                                                   [        *        ]
                                                       BASE PRICE  [        *        ]        [  *  ]      [   *    ]

                        INDUCTOR COIL                                                                                  HYSOL
   APT SUPPLIES LEADFRAME & SUBSTRATE                              FIRST    EXCESS OF         HYSOL        FIRST
                                                                                              ADDER
                                                                   [        *        ]
                                                       BASE PRICE  [        *        ]        [  *  ]      [   *    ]
TO264
          SINGLE DIE                                     KTMC                                                    HYSOL
                                            FIRST [*]         EXCESS OF [*]       HYSOL ADDER          FIRST [*]          EXCESS OF
                                                                                                                             [*]
                             BASE PRICE        [*]                [*]                 [*]                [*]                 [*]

        DUAL DIE (8W)                                    KTMC                                                    HYSOL
                                            FIRST [*]         EXCESS OF [*]       HYSOL ADDER          FIRST [*]          EXCESS OF
                                                                                                                             [*]
                             BASE PRICE        [*]                [*]                 [*]                [*]                 [*]

        DUAL DIE (12W)                                   KTMC                                                    HYSOL
                                            FIRST [*]         EXCESS OF [*]       HYSOL ADDER          FIRST [*]          EXCESS OF
                                                                                                                             [*]
                             BASE PRICE        [*]                [*]                 [*]                [*]                 [*]

            3 DIE                                        KTMC                                                    HYSOL
                                            FIRST [*]         EXCESS OF [*]       HYSOL ADDER          FIRST [*]          EXCESS OF
                                                                                                                             [*]
                             BASE PRICE        [*]                [*]                 [*]                [*]                 [*]
</TABLE>

          COST ADDER FOR MANUAL UIS      [*]
         COST ADDER FOR THERMAPHASE      [*]
  COST REDUCTION FOR DICE RCVD SAWN      [*]      (SINGLE0
                                         [*]      (DUAL)

                  QUICK TURN ADDER [*] SINGLE DIE, [*] PCS MAX

ADDITIONAL PROVISIONS
o ALL TO264 BASE PRICES INCLUDE O/S TEST, MARK, SOLDER DIP, FINAL TEST, SHIPPING
TUBES, & BOXES o TEAM SUPPLIES ALL MATERIALS EXCEPT DIE UNLESS OTHERWISE STATED
HEREIN o IN DETERMINING WHICH DEVICE TYPE WILL FALL UNDER THE "IN EXCESS OF 200K
UNITS PER MONTH" CATEGORY, THE INCREMENTAL VOLUME SHALL BE APPORTIONED TO EACH
DEVICE THPE'S PROPORTIONATE OF THE TOTAL ACTUAL VOLUME FOR THE RECKONING PERIOD.

<TABLE>
<S><C>
      D3PAK
          SINGLE DIE                                      KTMC                                                      HYSOL
                                          ANY VOLUME                              HYSOL ADDER     ANY VOLUME
                             BASE PRICE   [*]                                         [*]         [*]

           DUAL DIE                                       KTMC                                                      HYSOL
                                          ANY VOLUME                              HYSOL ADDER     ANY VOLUME
                             BASE PRICE   [*]                                         [*]         [*]

            RF D3                                         KTMC                                                      HYSOL
                                          ANY VOLUME                              HYSOL ADDER     ANY VOLUME
                             BASE PRICE   [*]                                         [*]         [*]
         COST ADDER FOR MANUAL UIS          [*]
         COST ADDER FOR FINAL TEST          [*]
 COST REDUCTION FOR DICE RCVD SAWN          [*]
                  QUICK TURN ADDER  [*] SINGLE DIE, [*] PCS MAX
</TABLE>

ADDITIONAL PROVISIONS
ALL D3PAK BASE PRICES INCLUDE O/S TEST, MARK, SOLDER PLATE, SHIPPING TUBES &
BOXES TEAM SUPPLIES ALL MATERIALS EXCEPT DIE UNLESS OTHERWISE STATED HEREIN

                                                                   Page 4 of 6

                                       15
<PAGE>

<TABLE>
<S><C>
TO3
                  SINGLE DIE
         APT SUPPLIES HEADERS AND CANS                                          ANY
                                                                                VOLUME
                                                     BASE PRICE                 [*]

                                                         QUICK TURN ADDER 25% SINGLE DIE, 1000 PCS MAX

ADDITIONAL PROVISIONS
*ALL TO 3 BASE PRICES INCLUDE O/S TEST, MARK, SOLDER DIP, SHIPPING TUBES & BOXES

DIE PREP

         APT SUPPLIES WAFFLE PACK
                                                                                FIRST            EXCESS OF
                                                                                [*]              [*]
                                                     BASE PRICE                 [*]              [*]

         TEAM SUPPLIES WAFFLE PACK
                                                                                FIRST            EXCESS OF
                                                                                [*]              [*]
                                                     BASE PRICE                 [*]              [*]
</TABLE>

[ * ] = CONFIDENTIAL TREATMENT REQUESTED

                                       16
<PAGE>

<TABLE>
<CAPTION>
ASPM

DEVICE                                                   Base Price
<S>                                                      <C>
D2U2                                                         [*]
DRIVER                                                       [*]
FO2(SP2)                                                     [*]
FO2(SP2-INFINEON                                             [*]
FO2(SP2-WITH COPPER ATTACH)                                  [*]
FOH REWORK 1 DIE                                             [*]
FOH REWORK 2 DIE                                             [*]
FOH5010 (SP3)                                                [*]
FOH5010 (SP3) INFINEON                                       [*]
FOH5010 WITH COPPER ATTACH                                   [*]
REHM                                                         [*]
STRAND                                                       [*]
THERMAL DYNAMICS                                             [*]
STEALTH ARRAY                                                [*]
D4R60FD60                                                    [*]
SATCONWITH COPPER ATTACH                                     [*]
SATCON WITHOUT COPPER ATTACH                                 [*]
</TABLE>

[ * ] =  CONFIDENTIAL TREATMENT REQUESTION

                                       17
<PAGE>

                                  APPENDIX III

                             TEAM INTERNAL MONITORS

                                PERFORMED MONTHLY

<TABLE>
<CAPTION>
                        SOT-227       TO-247         D3PAK         TO-264       ASPM
<S>                     <C>           <C>            <C>           <C>          <C>
TEMPARATURE CYCLE       8 PCS.        22 PCS.        8 PCS.        8 PCS        3 PCS
PRESSURE POT            8 PCS.        22 PCS.        8 PCS.        8 PCS        3 PCS
85/85                   8 PCS.        22 PCS.        8 PCS.        8 PCS        3 PCS
CORRELATION             24 PCS.       66 PCS.        24 PCS.       24 PCS.      3 PCS.
</TABLE>

                                      18

<PAGE>

                                   APPENDIX IV

                           LIST OF CONSIGNED EQUIPMENT

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
   EQUIPMENT CONSIGNED                    MANUFACTURER              QUANTITY                   REMARKS
----------------------------------------------------------------------------------------------------------------------
<S>                                   <C>                         <C>                 <C>
1.       ISOLATION TESTER             KIKUSU/TOSH651              1 SET               SERIAL # 28101279
----------------------------------------------------------------------------------------------------------------------
2.       UIS TESTER                   ITC/ITC5510                 2 UNITS             SERIAL # 9011
                                                                                      SERIAL # 9103
----------------------------------------------------------------------------------------------------------------------
3.       MICROPROBER                  MICROMANIPULATOR            I UNIT              SERIAL # 83010
                                      MODEL 6000
----------------------------------------------------------------------------------------------------------------------
4.       TO-247 120 CAVITIES MOLD     MOSPEC                      I SET               SERIAL # NOT AVAILABLE
         TOOL / LOADING FRAME
----------------------------------------------------------------------------------------------------------------------
5.       D3 MOLD TOOL / LOADING       Micro Precision Tooling     1 UNIT              PURCHASED JOINTLY W/ MOTOROLA
         FRAME, 120 CAVITIES
----------------------------------------------------------------------------------------------------------------------
6.       SOT-227 2 CHASES             Samtech/Sungwoo             1 - CHASE           DECOMMISSIONED
----------------------------------------------------------------------------------------------------------------------
7.       D3PAK TEST HANDLER           EXATRON                     1 SET               SERIAL # 5000H9801085
----------------------------------------------------------------------------------------------------------------------
8.       TESEC 8101T                  TESEC                       1 UNIT              SERIAL # 41840-0373
----------------------------------------------------------------------------------------------------------------------
9.       M20 WIREBONDER               ORTHODYNE                   2 UNITS             SERIAL # 101301
                                                                                      SERIAL # 8911002
----------------------------------------------------------------------------------------------------------------------
10.      TESEC HI-CURRANT UNIT        TESEC                       2 UNITS             SERIAL # 41950-0047
         8213-CU                                                                      SERIAL # 41950-0095
----------------------------------------------------------------------------------------------------------------------
11.      HIGH VOLTAGE MODEL 7818-HV   TESEC                       1 UNIT              SERIAL # 41640-0068
----------------------------------------------------------------------------------------------------------------------
12.      MANUAL TEST MODULE 80005-MB  TESEC                       1 UNIT              SERIAL # 41740-0130
----------------------------------------------------------------------------------------------------------------------
13.      DELTA TESTER     8114-KT     TESEC                       1 UNIT              SERIAL # 41890-0338
----------------------------------------------------------------------------------------------------------------------
14.      DELTA TESTER     8115-PU     TESEC                       1 UNIT              SERIAL # 41900-0338
----------------------------------------------------------------------------------------------------------------------
15.      CURVE TRACER 577 TECHRONIX   TUCKER                      1 UNIT              SERIAL # 810490
----------------------------------------------------------------------------------------------------------------------
16.      DEGREASER                    SONIO                       1 UNIT              SERIAL # ---------1298
----------------------------------------------------------------------------------------------------------------------
17.      GRANITE STONE                MESCO                       1 UNIT              SERIAL # RAHNTLR23800ly
----------------------------------------------------------------------------------------------------------------------
18.      ARBOR PRESS                                              1 UNIT
----------------------------------------------------------------------------------------------------------------------
19.      DIGIMATIC MINIPROCESSOR /    MITUTOYO                    1 UNIT              SERIAL # 7676256
         CALIPER
----------------------------------------------------------------------------------------------------------------------
20.      WEIGHING SCALE               FUJI                        1 UNIT              SERIAL # MHY00308
----------------------------------------------------------------------------------------------------------------------
21.      UIS TESTER INDUCTOR LOAD     ITC/ITC5514                 2 UNITS             SERIAL # 9104
                                                                                      SERIAL # 8836
----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       19
<PAGE>

                                   APPENDIX V

                      LIST OF CONSIGNED MATERIALS FOR ASPM

Stock Number                                  Description
CIAN 46-3%                                    Chip Resistor 68K ohms 3%
CIAN46 5%                                     Chip Resistor
CIAN 46-10%                                   Chip Resistor
D88                                           Epoxy Haradener - Part B
E520                                          Resin Urethane U4745
MK0422A                                       Preform
MK0527A                                       Preform
Mk0659A                                       Preform
MK0685A                                       Power Terminal
MK0740A                                       Signal Terminal
MK0741A                                       Signal Terminal
MK0751A                                       Power Connector SP3
MK0752A                                       Power Connector SP2
MP0076A                                       Plastic Frame
MP0082C                                       Plastic Wall
MP0093C                                       Plastic Frame
MS0271B                                       Base Plate
MS2019B                                       DBC Substrate
MS2019C                                       DBC Substrate
MS2039B                                       Substrate DBC FOZU
TSE322                                        Sil Gel Rubber ADH Sealant
TSE25                                         Sil Rubber

                                       20<PAGE>

                                                                     EXHIBIT 4.4

                      MILLENNIUM PREDICTIVE MEDICINE, INC.

                           1997 EQUITY INCENTIVE PLAN

1.       PURPOSE.

         The purpose of this plan (the "Plan") is to secure for Millennium
Predictive Medicine, Inc. (the "Company") and its shareholders the benefits
arising from capital stock ownership by employees and directors of, and
consultants or advisors to, the Company and its parent Millennium
Pharmaceuticals, Inc., or any successor entity thereto (the "Parent"), and all
present and future subsidiary corporations of (a) the Parent, other than the
Company ("Parent Subsidiaries"), and (b) the Company ("Company Subsidiaries"),
in each case who are expected to contribute to the Company's future growth and
success. Except where the context otherwise requires, the term "Company" shall
include the Parent and all Parent Subsidiaries and Company Subsidaries.

2.       TYPE OF OPTIONS AND AWARDS; ADMINISTRATION.

         (a) TYPES OF OPTIONS AND AWARDS. Options granted pursuant to the Plan
shall be authorized by action of the Board of Directors of the Company (or a
Committee designated by the Board of Directors) and may be either incentive
stock options ("Incentive Stock Options") meeting the requirements of Section
422 of the Internal Revenue Code of 1986, as amended (the "Code") or
non-statutory options which are not intended to meet the requirements of Section
422 of the Code. Awards granted pursuant to the Plan shall be authorized by
action of the Board of Directors of the Company (or a Committee designated by
the Board of Directors) and shall meet the requirements of Section 13 of the
Plan.

         (b) ADMINISTRATION. The Plan will be administered by the Board of
Directors of the Company, whose construction and interpretation of the terms and
provisions of the Plan shall be final and conclusive. The Board of Directors may
in its sole discretion (i) grant options to purchase shares of the Company's
Common Stock (as defined in Section 4 of the Plan), and issue shares upon
exercise of such options as provided in the Plan and (ii) make awards for the
purchase of shares of Common Stock pursuant to Section 13 of the Plan. The Board
shall have authority, subject to the express provisions of the Plan, to construe
the respective option agreements, awards and the Plan, to prescribe, amend and
rescind rules and regulations relating to the Plan, to determine the terms and
provisions of the respective option agreements and awards, which need not be
identical, and to make all other determinations in the judgment of the Board of
Directors necessary or desirable for the administration of the Plan. The Board
of Directors may correct any defect or supply any omission or reconcile any
inconsistency in the Plan or in any option agreement or award in the manner and
to the extent it shall deem expedient to carry the Plan into effect and it shall
be the sole and final judge of such expediency. No director or person acting
pursuant to authority delegated by the Board of Directors shall be liable for
any action or determination made in good faith. The Board of Directors may, to
the full extent permitted by or consistent with applicable laws or regulations
(including, without limitation, applicable state law), delegate any or all of
its powers under the Plan to a committee (the "Committee") appointed by the
Board of Directors, and if the Committee is so appointed all

<PAGE>

references to the Board of Directors in the Plan shall mean and relate to such
Committee to the extent authority is so delegated to such Committee.

3.       ELIGIBILITY.

         Options and awards may be granted or made to persons who are, at the
time of grant, employees and directors of, or consultants or advisors to, the
Company, its Parent, Parent Subsidiaries or Company Subsidiaries; PROVIDED, that
the class of individuals to whom Incentive Stock Options may be granted shall be
limited to all employees of the Company, its Parent and Company Subsidiaries. A
person who has been granted an option or award may, if he or she is otherwise
eligible, be granted additional options or awards if the Board of Directors
shall so determine. Subject to adjustment as provided in Section 16 below, the
maximum number of shares with respect to which options or restricted stock
awards may be granted to any person under the Plan shall not exceed 300,000
shares of Common Stock during any calendar year during the term of the Plan. For
the purpose of calculating such maximum number, (a) an option or award shall
continue to be treated as outstanding notwithstanding its repricing,
cancellation or expiration and (b) the repricing of an outstanding option or
award or the issuance of a new option or award in substitution for a cancelled
option or award shall be deemed to constitute the grant of a new additional
option or award, as the case may be, separate from the original grant that is
repriced or cancelled.

4.       STOCK SUBJECT TO PLAN.

         Subject to adjustment as provided in Section 16 below, the total number
of shares which may be issued and sold under the Plan is 1,200,000 shares of
Class B Common Stock of the Company, $.001 par value per share ("Common Stock").
If an option granted under the Plan shall expire or terminate for any reason
without having been exercised in full, the unpurchased shares subject to such
option shall again be available for subsequent option grants or awards under the
Plan.

5.       FORMS OF OPTION AGREEMENTS.

         As a condition to the grant of an option under the Plan, each recipient
of an option shall execute an option agreement in such form not inconsistent
with the Plan as may be approved by the Board of Directors. Such option
agreements may differ among recipients.

6.       PURCHASE PRICE UPON EXERCISE OF OPTIONS.

         (a) GENERAL. The purchase price per share of Common Stock deliverable
upon the exercise of an option shall be determined by the Board of Directors,
PROVIDED, HOWEVER, that in the case of an Incentive Stock Option, the exercise
price shall not be less than 100% of the fair market value of such stock, as
determined by the Board of Directors, at the time of grant of such option, or
less than 110% of such fair market value in the case of options described in
Section 11(b).

         (b) PAYMENT OF PURCHASE PRICE. Options granted under the Plan may
provide for the payment of the exercise price by delivery of cash or a check to
the order of the Company in an amount equal to the exercise price of such
options, or, to the extent provided in the applicable

                                       2

<PAGE>

option agreement, (i) by delivery to the Company of shares of Common Stock of
the Company already owned by the optionee having a fair market value equal in
amount to the exercise price of the options being exercised, (ii) by any other
means (including without limitation by delivery of a promissory note of the
optionee payable on such terms as are specified by the Board of Directors) which
the Board of Directors determines are consistent with the purpose of the Plan
and with applicable laws and regulations (including, without limitation, the
provisions of Regulation T promulgated by the Federal Reserve Board) or (iii) by
any combination of such methods of payment. The fair market value of any shares
of the Company's Common Stock or other non-cash consideration which may be
delivered upon exercise of an option shall be determined in such manner as may
be prescribed by the Board of Directors.

7.       OPTION PERIOD.

         Each option and all rights thereunder shall expire on such date as
shall be set forth in the applicable option agreement, except that such date, in
the case of an Incentive Stock Option, shall in no case be later than ten years
after the date on which the option is granted.

8.       EXERCISE OF OPTIONS.

         Each option granted under the Plan shall be exercisable either in full
or in installments at such time or times and during such period as shall be set
forth in the agreement evidencing such option, subject to the provisions of the
Plan.

9.       NONTRANSFERABILITY OF OPTIONS.

         Incentive Stock Options shall not be assignable or transferable by the
person to whom it is granted, either voluntarily or by operation of law, except
by will or the laws of descent and distribution, and, during the life of the
optionee, shall be exercisable only by the optionee. All other options shall be
transferable only to the extent set forth in the agreement evidencing such
option.

10.      EFFECT OF TERMINATION OF EMPLOYMENT OR OTHER RELATIONSHIP.

         The Board of Directors shall determine the period of time during which
an optionee may exercise an option following (i) the termination of the
optionee's employment or other relationship with the Company or (ii) the death
or disability of the optionee. Such periods shall be set forth in the agreement
evidencing such option.

11.      INCENTIVE STOCK OPTIONS.

         Options granted under the Plan which are intended to be Incentive Stock
Options shall be subject to the following additional terms and conditions:

         (a) EXPRESS DESIGNATION. All Incentive Stock Options granted under the
Plan shall, at the time of grant, be specifically designated as such in the
option agreement covering such Incentive Stock Options.

                                       3

<PAGE>

         (b) 10% SHAREHOLDER. If any employee to whom an Incentive Stock Option
is to be granted under the Plan is, at the time of the grant of such option, the
owner of stock possessing more than 10% of the total combined voting power of
all classes of stock of the Company (after taking into account the attribution
of stock ownership rules of Section 424(d) of the Code), then the following
special provisions shall be applicable to the Incentive Stock Option granted to
such individual:

                (i) The purchase price per share of the Common Stock subject to
                such Incentive Stock Option shall not be less than 110% of the
                fair market value of one share of Common Stock at the time of
                grant; and

                (ii) The option exercise period shall not exceed five years from
                the date of grant.

         (c) DOLLAR LIMITATION. For so long as the Code shall so provide,
options granted to any employee under the Plan (and any other incentive stock
option plans of the Company which are intended to constitute Incentive Stock
Options shall not constitute Incentive Stock Options to the extent that such
options, in the aggregate, become exercisable for the first time in any one
calendar year for shares of Common Stock with an aggregate fair market value
(determined as of the respective date or dates of grant) of more than $100,000.

                                       4

<PAGE>

         (d) TERMINATION OF EMPLOYMENT, DEATH OR DISABILITY. No Incentive Stock
Option may be exercised unless, at the time of such exercise, the optionee is,
and has been continuously since the date of grant of his or her option, employed
by the Company, except that:

             (i) an Incentive Stock Option may be exercised within the period
             of three months after the date the optionee ceases to be an
             employee of the Company (or within such lesser period as may be
             specified in the applicable option agreement), PROVIDED, that
             the agreement with respect to such option may designate a longer
             exercise period and that the exercise after such three-month
             period shall be treated as the exercise of a non-statutory
             option under the Plan;

             (ii) if the optionee dies while in the employ of the Company, or
             within three months after the optionee ceases to be such an
             employee, the Incentive Stock Option may be exercised, by the
             person to whom it is transferred by will or the laws of descent
             and distribution, within the period of one year after the date of
             death (or within such lesser period as may be specified in the
             applicable option agreement); and

             (iii)if the optionee becomes disabled (within the meaning of
             Section 22(e)(3) of the Code or any successor provision thereto)
             while in the employ of the Company, the Incentive Stock Option may
             be exercised within the period of one year after the date the
             optionee ceases to be such an employee because of such disability
             (or within such lesser period as may be specified in the applicable
             option agreement).

For all purposes of the Plan and any option or award granted hereunder,
"employment" shall be defined in accordance with the provisions of Section
1.421-7(h) of the Income Tax Regulations (or any successor regulations).
Notwithstanding the foregoing provisions, no stock option may be exercised after
its expiration date.

12.      ADDITIONAL PROVISIONS.

         (a) ADDITIONAL OPTION PROVISIONS. The Board of Directors may, in its
sole discretion, include additional provisions in any option granted under the
Plan, including without limitation restrictions on transfer, repurchase rights,
commitments to pay cash bonuses, to make, arrange for or guaranty loans or to
transfer other property to optionees upon exercise of options, or such other
provisions as shall be determined by the Board of Directors; PROVIDED THAT such
additional provisions shall not be inconsistent with any other term or condition
of the Plan.

                                       5

<PAGE>

         (b) ACCELERATION, EXTENSION, ETC. The Board of Directors may, in its
sole discretion, (i) accelerate the date or dates on which all or any particular
option or options granted under the Plan may be exercised or (ii) extend the
dates during which all or any particular option or options granted under the
Plan may be exercised; provided, however, that no such extension shall be
permitted if it would cause the Plan to fail to comply with Section 422 of the
Code.

13.      AWARDS.

         A restricted stock award (an "award") shall consist of the sale and
issuance by the Company of shares of Common Stock, and the purchase by the
recipient of such shares, subject to the terms, conditions and restrictions
described in the document evidencing the award and in this Section 13 and
elsewhere in the Plan.

         (a) EXECUTION OF RESTRICTED STOCK AWARD AGREEMENT. As a condition to an
award under the Plan, each recipient of an award shall execute an agreement in
such form, which may differ among recipients, as shall be specified by the Board
of Directors at the time of such award.

         (b) PRICE. The Board of Directors shall determine the price at which
shares of Common Stock shall be sold to recipients of awards under the Plan. The
Board of Directors may, in its discretion, issue shares pursuant to awards at a
purchase price below the then fair market value of the Common Stock. If a
purchase price is required to be paid, it shall be paid in cash or by check
payable to the order of the Company at the time that the award is accepted by
the recipient, or by such other means as may be approved by the Board of
Directors.

         (c) NUMBER OF SHARES. The award shall specify the number of shares of
Common Stock granted thereunder.

         (d) RESTRICTIONS ON TRANSFER. In addition to such other terms,
conditions and restrictions upon awards as shall be imposed by the Board of
Directors, all shares issued pursuant to an award shall be subject to the
following restrictions:

                  (1) All shares of Common Stock subject to an award (including
                  any shares issued pursuant to paragraph (e) of this Section)
                  shall be subject to certain restrictions on disposition and
                  obligations of resale to the Company as provided in
                  subparagraph (2) below for the period specified in the
                  document evidencing the award, and shall not be sold,
                  assigned, transferred, pledged, hypothecated or otherwise
                  disposed of until such restrictions lapse. The period during
                  which such restrictions are applicable is referred to as the
                  "Restricted Period."

                  (2) In the event that a recipient's employment with the
                  Company (or consultancy or advisory relationship, as the case
                  may be) is terminated within the Restricted Period, whether
                  such termination is voluntary or involuntary, with or without
                  cause, or because of the death or disability of the recipient,
                  the Company shall have the right and option for a period of
                  three months following such termination to buy for cash that
                  number of the shares of Common Stock purchased under the award
                  as to which the restrictions on transfer and the forfeiture
                  provisions contained in the award have not then lapsed, at a
                  price equal to the price per share originally paid by the
                  recipient. If such termination occurs

                                       6

<PAGE>

                  within the last three months of the applicable restrictions,
                  the restrictions and repurchase rights of the Company shall
                  continue to apply until the expiration of the Company's three
                  month option period.

                  (3) Notwithstanding subparagraphs (1) and (2) above, the Board
                  of Directors may, in its discretion, either at the time that
                  an award is made or at any time thereafter, waive its right to
                  repurchase shares of Common Stock upon the occurrence of any
                  of the events described in this paragraph (d) or remove or
                  modify any part or all of the restrictions. In addition, the
                  Board of Directors may, in its discretion, impose upon the
                  recipient of an award at the time of such award such other
                  restrictions on any shares of Common Stock issued pursuant to
                  such award as the Board of Directors may deem advisable.

         (e) ADDITIONAL SHARES. Any shares received by a recipient of an award
as a stock dividend on, or as a result of stock splits, combinations, exchanges
of shares, reorganizations, mergers, consolidations or otherwise with respect
to, shares of Common Stock received pursuant to such award shall have the same
status and shall bear the same restrictions, all on a proportionate basis, as
the shares initially purchased pursuant to such award.

         (f) TRANSFERS IN BREACH OF AWARD. If any transfer of shares purchased
pursuant to an award is made or attempted contrary to the terms of the Plan and
of such award, the Board of Directors shall have the right to purchase for the
account of the Company those shares from the owner thereof or his or her
transferee at any time before or after the transfer at the price paid for such
shares by the person to whom they were awarded under the Plan. In addition to
any other legal or equitable remedies which it may have, the Company may enforce
its rights by specific performance to the extent permitted by law. The Company
may refuse for any purpose to recognize as a shareholder of the Company any
transferee who receives any shares contrary to the provisions of the Plan and
the applicable award or any recipient of an award who breaches his or her
obligation to resell shares as required by the provisions of the Plan and the
applicable award, and the Company may retain and/or recover all dividends on
such shares which were paid or payable subsequent to the date on which the
prohibited transfer or breach was made or attempted.

         (g) ADDITIONAL AWARD PROVISIONS. The Board of Directors may, in its
sole discretion, include additional provisions in any award granted under the
Plan, including without limitation commitments to pay cash bonuses, make,
arrange for or guarantee loans or transfer other property to recipients upon the
grant of awards, or such other provisions as shall be determined by the Board of
Directors.

14.      GENERAL RESTRICTIONS.

         (a) INVESTMENT REPRESENTATIONS. The Company may require any person to
whom an option or award is granted, as a condition of exercising such option or
purchasing the shares subject to the award, to give written assurances in
substance and form satisfactory to the Company to the effect that such person is
acquiring the Common Stock subject to the option or award for his or her own
account for investment and not with any present intention of selling or
otherwise distributing the same, and to such other effects as the Company deems
necessary or appropriate in order to comply with federal and applicable state
securities laws.

                                       7

<PAGE>

         (b) COMPLIANCE WITH SECURITIES LAWS. Each option and award shall be
subject to the requirement that if, at any time, counsel to the Company shall
determine that the listing, registration or qualification of the shares subject
to such option or award upon any securities exchange or under any state or
federal law, or the consent or approval of any governmental or regulatory body,
or that the disclosure of non-public information or the satisfaction of any
other condition is necessary as a condition of, or in connection with, the
issuance or purchase of shares thereunder, such option or award may not be
exercised, in whole or in part, unless such listing, registration,
qualification, consent or approval, or satisfaction of such condition shall have
been effected or obtained on conditions acceptable to the Board of Directors.
Nothing herein shall be deemed to require the Company to apply for or to obtain
such listing, registration or qualification, or to satisfy such condition.

15.      RIGHTS AS A SHAREHOLDER.

         The holder of an option or recipient of an award shall have no rights
as a shareholder with respect to any shares covered by the option or award
(including, without limitation, any rights to receive dividends or non-cash
distributions with respect to such shares) until the date of issue of a stock
certificate to him or her for such shares. No adjustment shall be made for
dividends or other rights for which the record date is prior to the date such
stock certificate is issued.

16.      ADJUSTMENT PROVISIONS FOR RECAPITALIZATIONS AND RELATED TRANSACTIONS.

         (a) GENERAL. If, through or as a result of any merger, consolidation,
sale of all or substantially all of the assets of the Company, reorganization,
recapitalization, reclassification, stock dividend, stock split, reverse stock
split or other similar transaction, (i) the outstanding shares of Common Stock
are increased or decreased or are exchanged for a different number or kind of
shares or other securities of the Company, or (ii) additional shares or new or
different shares or other securities of the Company or other non-cash assets are
distributed with respect to such shares of Common Stock or other securities, an
appropriate and proportionate adjustment shall be made in (x) the maximum number
and kind of shares reserved for issuance under the Plan, (y) the number and kind
of shares or other securities subject to then outstanding options under the
Plan, and (z) the price for each share subject to any then outstanding options
under the Plan or repurchase rights of the Company, without changing the
aggregate purchase price as to which such options remain exercisable, provided
that no adjustment shall be made pursuant to this Section 16 if such adjustment
would cause the Plan to fail to comply with Section 422 of the Code.

         (b) BOARD AUTHORITY TO MAKE ADJUSTMENTS. Any adjustments under this
Section 16 will be made by the Board of Directors, whose determination as to
what adjustments, if any, will be made and the extent thereof will be final,
binding and conclusive. No fractional shares will be issued under the Plan on
account of any such adjustments.

17.      MERGER, CONSOLIDATION, ASSET SALE, LIQUIDATION, ETC.

         (a) GENERAL. In the event of a consolidation or merger in which
outstanding shares of Common Stock are exchanged for securities, cash or other
property of any other corporation or

                                       8

<PAGE>

business entity or in the event of a liquidation of the Company or sale of all
or substantially all of the assets of the Company, the Board of Directors of the
Company, or the board of directors of any corporation assuming the obligations
of the Company, may, in its discretion, take any one or more of the following
actions, as to outstanding options and awards: (i) provide that such options
shall be assumed, or equivalent options shall be substituted, by the acquiring
or succeeding corporation (or an affiliate thereof), PROVIDED that any such
options substituted for Incentive Stock Options shall meet the requirements of
Section 424(a) of the Code, (ii) upon written notice to the optionees, provide
that all unexercised options will terminate immediately prior to the
consummation of such transaction unless exercised by the optionee within a
specified period following the date of such notice, (iii) in the event of a
merger under the terms of which holders of the Common Stock of the Company will
receive upon consummation thereof a cash payment for each share surrendered in
the merger (the "Merger Price"), make or provide for a cash payment to the
optionees equal to the difference between (A) the Merger Price times the number
of shares of Common Stock subject to such outstanding options (to the extent
then exercisable at prices not in excess of the Merger Price) and (B) the
aggregate exercise price of all such outstanding options in exchange for the
termination of such options, and (iv) provide that all or any outstanding
options shall become exercisable in full, any restrictions on exercising
outstanding options issued pursuant to the Plan prior to any given date shall
terminate and any restrictions on and rights of the Company to repurchase shares
covered by outstanding awards issued pursuant to the Plan shall terminate.

         (b) SUBSTITUTE OPTIONS. The Company may grant options under the Plan in
substitution for options held by employees of another corporation who become
employees of the Company, or a subsidiary of the Company, as the result of a
merger or consolidation of the employing corporation with the Company or a
subsidiary of the Company, or as a result of the acquisition by the Company, or
one of its subsidiaries, of property or stock of the employing corporation. The
Company may direct that substitute options be granted on such terms and
conditions as the Board of Directors considers appropriate in the circumstances.

18.      NO SPECIAL EMPLOYMENT RIGHTS.

         Nothing contained in the Plan or in any option or award shall confer
upon any recipient of an award or optionee any right with respect to the
continuation of his or her employment by the Company or interfere in any way
with the right of the Company at any time to terminate such employment or to
increase or decrease the compensation of the optionee.

19.      OTHER EMPLOYEE BENEFITS.

         Except as to plans which by their terms include such amounts as
compensation, neither the amount of any compensation deemed to be received by an
employee as a result of the exercise of an option or the sale of shares received
upon such exercise nor the value of an award granted to an employee will
constitute compensation with respect to which any other employee benefits of
such employee are determined, including, without limitation, benefits under any
bonus, pension, profit-sharing, life insurance or salary continuation plan,
except as otherwise specifically determined by the Board of Directors.

                                       9

<PAGE>

20. AMENDMENT OF THE PLAN.

         (a) The Board of Directors may at any time, and from time to time,
modify or amend the Plan in any respect, except that if at any time the approval
of the shareholders of the Company is required as to such modification or
amendment under Section 422 of the Code or any successor provision with respect
to Incentive Stock Options, the Board of Directors may not effect such
modification or amendment without such approval.

         (b) The termination or any modification or amendment of the Plan shall
not, without the consent of an optionee or recipient of an award, affect his or
her rights under an option or award previously granted to him or her. With the
consent of the optionee or recipient of the award affected, the Board of
Directors may amend outstanding option agreements or awards in a manner not
inconsistent with the Plan. The Board of Directors shall have the right to amend
or modify the terms and provisions of the Plan and of any outstanding Incentive
Stock Options granted under the Plan to the extent necessary to qualify any or
all such options for such favorable federal income tax treatment (including
deferral of taxation upon exercise) as may be afforded incentive stock options
under Section 422 of the Code.

21.      WITHHOLDING.

         (a) The Company shall have the right to deduct from payments of any
kind otherwise due to the optionee or recipient of an award any federal, state
or local taxes of any kind required by law to be withheld with respect to any
shares issued upon exercise of options under the Plan or the purchase of shares
subject to the award. Subject to the prior approval of the Company, which may be
withheld by the Company in its sole discretion, the optionee or recipient of an
award may elect to satisfy such obligations, in whole or in part, (i) by causing
the Company to withhold shares of Common Stock otherwise issuable pursuant to
the exercise of an option or the purchase of shares subject to an award or (ii)
by delivering to the Company shares of Common Stock already owned by the
optionee or award recipient. The shares so delivered or withheld shall have a
fair market value equal to such withholding obligation. The fair market value of
the shares used to satisfy such withholding obligation shall be determined by
the Company as of the date that the amount of tax to be withheld is to be
determined. An optionee or award recipient who has made an election pursuant to
this Section 21(a) may only satisfy his or her withholding obligation with
shares of Common Stock which are not subject to any repurchase, forfeiture,
unfulfilled vesting or other similar requirements.

         (b) If the recipient of an award under the Plan elects, in accordance
with Section 83(b) of the Code, to recognize ordinary income in the year of
acquisition of any shares awarded under the Plan, the Company will require at
the time of such election an additional payment for withholding tax purposes
based on the difference, if any, between the purchase price of such shares and
the fair market value of such shares as of the date immediately preceding the
date of the award.

22.      CANCELLATION AND NEW GRANT OF OPTIONS, ETC.

         The Board of Directors shall have the authority to effect, at any time
and from time to time, with the consent of the affected optionees, (i) the
cancellation of any or all outstanding options under the Plan and the grant in
substitution therefor of new options under the Plan covering the same or
different numbers of shares of Common Stock and having an option

                                       10

<PAGE>

exercise price per share which may be lower or higher than the exercise price
per share of the cancelled options or (ii) the amendment of the terms of any and
all outstanding options under the Plan to provide an option exercise price per
share which is higher or lower than the then-current exercise price per share of
such outstanding options.

23.      EFFECTIVE DATE AND DURATION OF THE PLAN.

         (a) EFFECTIVE DATE. The Plan shall become effective when adopted by the
Board of Directors, but no Incentive Stock Option granted under the Plan shall
become exercisable unless and until the Plan shall have been approved by the
Company's shareholders. If such shareholder approval is not obtained within
twelve months after the date of the Board's adoption of the Plan, no options
previously granted under the Plan shall be deemed to be Incentive Stock Options
and no Incentive Stock Options shall be granted thereafter. Amendments to the
Plan not requiring shareholder approval shall become effective when adopted by
the Board of Directors; amendments requiring shareholder approval (as provided
in Section 20) shall become effective when adopted by the Board of Directors,
but no Incentive Stock Option issued after the date of such amendment shall
become exercisable (to the extent that such amendment to the Plan was required
to enable the Company to grant such Incentive Stock Option to a particular
optionee) unless and until such amendment shall have been approved by the
Company's shareholders. If such shareholder approval is not obtained within
twelve months of the Board's adoption of such amendment, any Incentive Stock
Options granted on or after the date of such amendment shall terminate to the
extent that such amendment to the Plan was required to enable the Company to
grant such option to a particular optionee. Subject to this limitation, options
and awards may be granted under the Plan at any time after the effective date
and before the date fixed for termination of the Plan.

         (b) TERMINATION. Unless sooner terminated in accordance with Section
17, the Plan shall terminate, with respect to Incentive Stock Options, upon the
earlier of (i) the close of business on the day next preceding the tenth
anniversary of the date of its adoption by the Board of Directors, or (ii) the
date on which all shares available for issuance under the Plan shall have been
issued pursuant to the exercise or cancellation of options or the final vesting
of awards granted under the Plan. Unless sooner terminated in accordance with
Section 17, the Plan shall terminate with respect to options which are not
Incentive Stock Options and awards on the date specified in (ii) above. If the
date of termination is determined under (i) above, then options outstanding on
such date shall continue to have force and effect in accordance with the
provisions of the instruments evidencing such options.

24.      PROVISION FOR FOREIGN PARTICIPANTS.

         The Board of Directors may, without amending the Plan, modify awards or
options granted to participants who are foreign nationals or employed outside
the United States to recognize differences in laws, rules, regulations or
customs of such foreign jurisdictions with respect to tax, securities, currency,
employee benefit or other matters.

                                      Adopted by the Board of Directors on
                                      November 3, 1997

                                       11

<PAGE>

                     AMENDMENT TO 1997 EQUITY INCENTIVE PLAN

The 1997 Equity Incentive Plan (the "Plan") of Millennium Predictive Medicine,
Inc. be and hereby is amended such that Section 4 of the Plan is deleted in its
entirety and replaced with a new Section 4 which reads as follows:

"4.      STOCK SUBJECT TO PLAN.

         Subject to adjustment as provided in Section 16 below, the total number
         of shares which may be issued and sold under the Plan is 2,200,000
         shares of Class B Common Stock of the Company, $.001 par value per
         share ("Common Stock"). If an option granted under the Plan shall
         expire or terminate for any reason without having been exercised in
         full, the unpurchased shares subject to such option shall again be
         available for subsequent option grants or awards under the Plan."

                                      Approved by the Board of Directors and
                                      Stockholders on January 21, 1999

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