Document:

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                                                                    Exhibit 10.6

                                              NETGENICS, INC. HAS REQUESTED THAT
                                                     THE MARKED PORTIONS OF THIS
                                               DOCUMENT BE ACCORDED CONFIDENTIAL
                                                  TREATMENT PURSUANT TO RULE 406
                                                UNDER THE SECURITIES ACT OF 1933

                     NETGENICS, INC./GENETICS INSTITUTE, INC

                               SYNERGY(TM) LICENSE
                                       AND
                               SERVICES AGREEMENT

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                   SYNERGY(TM) LICENSE AND SERVICES AGREEMENT
                   ------------------------------------------

                  THIS SYNERGY(TM) LICENSE AND SERVICES AGREEMENT (this
"Agreement"), made as of the 27th day of August, 1998, is by and between
NETGENICS, Inc., a Delaware corporation with business offices at 1717 East Ninth
Street, Suite 1700, Cleveland, Ohio 44114 ("Licensor"), and GENETICS INSTITUTE,
INC. with business offices at 87 CambridgePark Drive, Cambridge, MA 02140.
(Genetics Institute, Inc., and its Affiliates, collectively, shall be referred
to herein as "Licensee"). "Affiliate", as used herein, shall mean any
corporation or other business entity directly or indirectly controlled by, or
under common control with American Home Products Corporation; as used herein,
the term "control" means possession of the power to direct, or cause the
direction of the management and policies of a corporation or entity, whether
through the ownership of voting securities, by contract or otherwise.

                                  INTRODUCTION:
                                  -------------

                  Licensor has developed and owns certain interactive computer
software and hardware known as SYNERGY(TM) for use in the storage and analysis
of drug discovery data in a collaborative environment and provides certain
services, including but not limited to services to maintain and extend such
software and hardware; and

                  Licensor is willing to license the SYNERGY(TM) System (as
defined below) and provide the Services (as defined below) to Licensee upon and
subject to the terms and conditions of this Agreement; and Licensee desires to
license such System and obtain such Services upon such terms and conditions.

                  In consideration of the premises and the conditions and mutual
covenants contained in this Agreement, the parties agree as follows:

                                 I. DEFINITIONS
                                    -----------

1.1 "Calendar Quarter" shall mean the three month period commencing on July 1,
October 1, January 1 and April 1 of each Contract Year during the term of this
Agreement. "Contract Year" shall mean the four Calendar Quarters following the
Commencement Date, and each successive Four Quarter period thereafter.

1.2 "Commencement Date" shall mean the effective date of this Agreement as set
forth above.

1.3 "Custom Software Module" shall mean the software, if any, developed for
Licensee by Licensor in accordance with the Custom Software Specifications and
Section 4 hereof.

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1.4 "Custom Software Specifications" shall mean the specifications, if any,
hereinafter agreed upon in writing by Licensor and Licensee and on which
Licensor will rely in enhancing, modifying, adapting or otherwise altering the
Licensed Software pursuant to this Agreement, as set forth on EXHIBIT D.

1.5 "Designated Location(s)" or "Site(s)" shall mean the location of business
facilities at which the Systems will be installed and for which Licensee has
paid a Fee, as set forth on EXHIBIT C.

1.6 "Fee" shall mean the consideration for the agreement of Licensor to: (a)
grant the License for the particular Designated Locations, and (b) provide
Services with respect to such Designated Locations. Fees shall be based upon the
License Type selected and any upgrade pursuant to Section 9.1, below.

1.7 "Hardware" shall mean the computer hardware and the third party software
described in EXHIBIT B; provided, however, that Licensor reserves the right to
substitute such hardware or software with functionally equivalent hardware or
software at any time during the term of this Agreement upon written notice to
Licensee. At a minimum, "functionally equivalent hardware or software" shall
mean hardware or software which: (a) is compatible with the Licensed Software
Specifications, the Custom Software Specifications, the Licensed Software, and
the Custom Software Modules, if any; (b) and is compatible with Licensee
Software which conforms to the Licensor Custom Software Guidelines, and which
does not materially alter or adversely affect the use of the System or the
Software or the Licensee Software which conforms to the Licensor Custom Software
Guidelines.

1.8 "License Type" shall mean the license of the System as provided for in this
Agreement, which shall provide access to the number of Users licensed under
EXHIBIT C for each Site and providing for the Licensor to provide to Licensee
Service Hours per Calendar Quarter as outlined in Exhibit I in exchange for a
Fee as set forth in Section 9.1 of this Agreement.

1.9 "Licensed Software" shall mean those components of the Software, in object
code form, to be delivered by Licensor to Licensee, and as described as such in
EXHIBIT A.

1.10 "Licensed Software Specifications" shall mean the specifications as
described in EXHIBIT A and in any documentation and release notes supplied with
subsequent Subscription Releases and Custom Software Modules, including, without
limitation, the functionality as described in EXHIBIT H as it is specified.

1.11 "Licensee Confidential Information" and "Licensor Confidential Information"
shall have the meanings ascribed to each of them in Section 10.22 of this
Agreement.

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1.12 "Licensee Intellectual Property Rights" shall mean the rights in Licensee
Software, Proprietary Components of Custom Software Modules (as defined in
Section 3.2 (e) herein) and Pharmaceutical Know-How (as defined in Section
2.4(a) herein), including, without limitation, patent, copyright, trademark,
service mark, trade secret and trade name rights therein. Notwithstanding the
foregoing, Licensee Intellectual Property shall not include any information
which: (A) was in the public domain prior to development by Licensee; (B) which,
after development by Licensee, becomes part of the public domain through
publication or otherwise except by breach of this Agreement or (C) which is
received from an independent third party which has the right to disclose it.

1.13 "Licensee Software" shall mean the software, if any, developed by, or on
behalf of, and owned by Licensee and incorporated or integrated into the
Software in accordance with the Licensor's Custom Software Guidelines as set
forth in EXHIBIT E.

1.14 "Licensor Custom Software Guidelines" shall mean the guidelines, if any,
used by Licensor and provided in writing by Licensor to Licensee, to which
Licensee must adhere in creating, enhancing, modifying, adapting or otherwise
altering Licensee Software.

1.15 "Licensor Intellectual Property Rights" shall mean Licensor's intellectual
property rights in the System, including, without limitation, patent, copyright,
trademark, service mark, trade secret and trade name rights therein.
Notwithstanding the foregoing, Licensor Intellectual Property shall not include
any information which: (A) was in the public domain prior to development by
Licensor; (B) which, after development by Licensor, becomes part of the public
domain through publication or otherwise except by breach of this Agreement or
(C) which is received from an independent third party which has the right to
disclose it.

1.16 "Party" shall mean Licensor or Licensee, or when used in plural, shall mean
both Licensor and Licensee.

1.17 "Services" shall mean all training, software planning and design, data
conversion, monitoring, support, providing updates, maintenance, enhancements
and modifications to the Licensed Software which Licensor makes available to its
licensees generally (e.g., Subscription Releases), providing hardware upgrades
(a) necessary to meet mutually agreeable minimum performance specifications and
data storage requirements and (b) which Licensor otherwise makes available to
its licensees generally, providing hardware maintenance for the Systems, and
hardware and software quality assurance testing, remote monitoring, telephone
and e-mail support services, on-site monitoring and customization services
provided by or on behalf of Licensor to Licensee pursuant to this Agreement.

1.18 "Service Hours" shall mean the number of hours designated for Services
under Exhibit I attached hereto to be provided by Licensor to Licensee for the
Services according to Sections 3.2, 4.1, and 4.3 of this Agreement.

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1.19 "Software" shall mean the Licensed Software, any and all Custom Software
Modules, any and all additions, enhancements, and modifications to the Licensed
Software and any Custom Software Module and any and all adaptations and
derivatives of the Licensed Software and any Custom Software Module in whatever
form, tangible or intangible (other than source code) including, without
limitation, additions, enhancements, modifications, adaptations and derivatives
incorporated in any Subscription Release or in any Custom Software
Specifications, and any portion and any copy or duplicate of any of the
foregoing. Notwithstanding the foregoing, Software shall not include Licensee
Software or Proprietary Components of Custom Software Modules, as defined in
Section 3.2(e).

1.20 "Specifications" shall mean the Licensed Software Specifications or any
Custom Software Specifications, as the context requires.

1.21 "Subscription Release" shall mean subsequent releases related to
Synergy(TM) Product 1 which Licensor shall use commercial diligence to deliver
on a periodic basis and to include bug fixes and enhancements to the Licensed
Software.

1.22 "System" shall mean the Software and the Hardware.

1.23 "User" shall mean (a) an employee, agent, consultant, contractor engaged by
Licensee and working at a Designated Location, or (b) an employee or agent of a
research or corporate collaborator who works for or on behalf of Licensee or as
part of a research or corporate collaboration and working at a Designated
Location, and (c) up to twenty-five (25) additional employees, agents,
consultants, contractors engaged by Licensee, or employees or agents of a
research or corporate collaborator who work for or on behalf of Licensee as part
of a research or corporate collaboration other than at a Designated Location;
provided, that Licensee shall provide written notice to Licensor of all such
Users, which notice shall contain the name, location and employer of such User,
and that no person who is not an employee of Licensee shall be deemed to be a
User until such person has delivered to Licensee the documentation referred to
in Section 2.3 (c) hereof .

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                                   II. LICENSE
                                       -------

2.1 GRANT OF LICENSE. Upon and subject to the terms and conditions of this
Agreement, Licensor hereby grants to Licensee a nonexclusive, nontransferable,
personal license (the "License") to: (i) have Licensee's Users use the System,
including Subscription Releases, principally at each User's Designated Location
and solely in connection with pharmaceutical, agricultural, and
biopharmaceutical business of Licensee conducted at such User's Designated
Location, and (ii) have up to twenty-five (25) additional Users access and use
the System, including Subscription Releases, from business facilities which are
not Designated Locations solely in connection with Licensee's pharmaceutical,
agricultural, and biopharmaceutical business.

2.2 RESTRICTIONS ON LICENSEE'S USE OF THE SYSTEM.

         (a) Except as expressly permitted in this Agreement, Licensee shall not
use, sublicense, sell, assign, convey, transfer, disclose, publish, display,
copy, duplicate, adapt, merge, embed, disassemble, decompile, translate, reverse
engineer or otherwise modify any portion of the System.

         (b) Without limiting the generality of the restrictions contained in
Section 2.2(a), Licensee shall not (i) make any claim or representation of
ownership, or act as the owner, of any portion of the System or any right
therein, or permit or facilitate the performance of any act that is inconsistent
with or in violation of this Agreement or that might jeopardize the Licensor
Intellectual Property Rights, (ii) install the System at any location other than
the Designated Location(s), (iii) use the System to provide data processing,
computer service bureau computer time sharing or similar services to any other
person or entity, (iv) allow more than the number of Users designated in the
License Type to use the System, (v) allow any user other than a User to use the
System, (vi) use the System other than for the internal information processing
needs of Licensee in connection with the storage and analysis of data in
Licensee's pharmaceutical, agricultural, and biopharmaceutical business
(provided, that internal information processing needs of Licensee shall include
research activities of Licensee which are or may be performed in conjunction
with third party research or corporate collaborators, so long as members of such
research or corporate collaborators are provided access to the System pursuant
to Section 10.22 herein), (vii) modify any portion of the System without
Licensor's prior written consent, (which shall be deemed to have been granted in
connection with the development of Licensee Software in accordance with the
Licensor Custom Software Guidelines) and, to the extent applicable and provided
to Licensee, other than in accordance with Licensor's specifications therefor,
(viii) provide maintenance of or modify any portion of the System without
Licensor's prior written consent, which shall be deemed to have been granted
without request in connection with maintenance provided by third party software
and hardware comprising the Hardware when furnished by third parties with
respect to their components, and, to the extent any Specifications are
applicable and have been provided to Licensee in writing, other than in

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accordance with Licensor's Specifications therefor or (ix) allow access to more
than 12 Users from the same business facility other than a Designated Location.

2.3 PROTECTION OF INTELLECTUAL PROPERTY RIGHTS.

         (a) The rights granted to Licensee in the System hereunder are only the
rights of a licensee, and no title or ownership of any component or
manifestation of any portion of the System is transferred to Licensee hereby.
All Licensor Intellectual Property Rights are and shall remain the exclusive
property of Licensor and all Licensee Intellectual Property Rights are and shall
remain the exclusive property of Licensee. Except as expressly set forth in this
Agreement, Licensee shall not have any right or interest in any component or
manifestation of any portion of the System.

         (b) Licensee acknowledges that the System has been and will be
developed at great expense to Licensor, that the System constitutes valuable,
confidential and trade secret information of Licensor and that Licensor
possesses and will possess the Licensor Intellectual Property Rights therein.
Licensor acknowledges that the Licensee Software, as well as any Proprietary
Components of Custom Software Modules (defined in Section 3.2(e) and enumerated
as needed in EXHIBIT D), have been and/or will be developed at great expense to
Licensee, that the Licensee Software and Proprietary Components of Custom
Software Modules constitute valuable, confidential and trade secret information
of Licensee and that Licensee possesses and will possess the Licensee
Intellectual Property Rights therein. Accordingly, each Party shall use its
commercially reasonable and diligent efforts to ensure that the intellectual
property rights of the other Party are preserved for the other Party to the
fullest extent possible under the law including, without limitation, taking such
reasonable security precautions as the other Party may from time to time request
and such other precautions as are taken by that Party to protect its own
confidential information and proprietary rights, provided that each Party's
standard of care is at least reasonable according to software and pharmaceutical
industry standards.

         (c) Licensee shall keep confidential and not disclose or permit access
to the System, Services or Licensee Software, except as provided in this Section
2.3(c). Licensee shall use the System, Services and Licensee Software only for
purposes consistent with the terms of this Agreement. Licensee shall advise its
employees, collaborators, consultants, agents and contractors of the
confidential and proprietary nature of the System, Services and Licensee
Software, and of the restrictions imposed by this Agreement, and shall: (i)
obtain from any and all non-employee Users (or from the employers of such
non-employee Users) their written agreement to comply with the obligations of
Licensee imposed by Article II and Section 10.22 of this Agreement and (ii)
shall be responsible for any breach of such agreement by any User, and (iii) use
its commercial and reasonably diligent efforts (so long as those efforts are at
least as diligent as those Licensee uses to protect Licensee Intellectual
Property Rights and are considered reasonable in the pharmaceutical and software
industries) to ensure that no unauthorized

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person has access to the System or the Services and that those persons who are
granted access to the System or the Services protect the Licensor Intellectual
Property in accordance with the terms of this Agreement.

         (d) Licensee shall notify Licensor immediately of the possession, use,
or knowledge of any portion of the System, Services or Licensee Software by any
person or entity not authorized by this Agreement to have such possession, use
or knowledge. Licensee shall, to the best of its knowledge, (i) promptly furnish
to Licensor full details of Licensee's knowledge of such possession, use or
knowledge, (ii) reasonably assist Licensor, at no expense to Licensor (if
Licensee is responsible for such unauthorized possession) or at Licensor's
expense for Licensee's reasonable and actual person hours and costs incurred (if
Licensee is not responsible for such unauthorized possession), in stopping and
preventing the recurrence of such possession, use or knowledge, shall cooperate,
at Licensor's request and expense, with Licensor in any litigation deemed
necessary by Licensor to protect the Licensor Intellectual Property Rights, and
shall take no action regarding claims of infringement or alleged infringers of
the System, Services or Licensee Software without Licensor's written consent.
Compliance by Licensee with this Section 2.3(d) shall not be construed as a
waiver of any right of Licensor to recover damages or obtain other relief
against Licensee in connection with any such unauthorized possession, use or
knowledge.

         (e) Each Party acknowledges and agrees that the affixation of a
copyright notice to the Software shall not, of itself, be deemed to constitute
or acknowledge a publication of the Software.

         (f) Licensor shall be entitled to audit Licensee's use of the System
for compliance with the terms and conditions of this Agreement (either directly
or through its independent, nationally recognized outside auditors which are not
compensated on a commission or percentage basis) at any time, but not more than
once per Contract Year by any such outside auditor, during the term of this
Agreement and for one year thereafter. Licensor shall not unreasonably interfere
with Licensee's business operations during any such audit, and Licensee shall
provide such cooperation as Licensor may reasonably request in connection with
any such audit. In connection with any such audit, Licensor agrees to (i)
protect all Licensee Confidential Information with the same degree of care as
Licensor uses in protecting its own confidential information, but no less a
degree than is required under Section 10.22 of this Agreement; (ii) have any
outside auditors sign Licensee's customary confidentiality agreement; (iii) use
outside auditors (at Licensee's request and reasonable expense) when Licensee
reasonably determines there is a risk of competitive injury from disclosure of
Licensee Confidential Information to Licensor and (iv) provide Licensee with a
copy of its audit results.

         (g) Without limiting the generality of the foregoing in this Section
2.3, each party acknowledges that the intellectual property rights of any third
party, including,

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without limitation, any rights in any third party software incorporated into the
System by way of a Custom Software Module, are the exclusive rights of that
party.

2.4 OWNERSHIP/ INVENTIONS. Licensee and Licensor acknowledge that performance of
this Agreement may result in the development of new concepts, methods,
techniques, data, know-how, processes, adaptations, ideas and expressions of
ideas.

         (a) INVENTIONS RELATING TO PHARMACEUTICAL COMPOUNDS AND LICENSEE
SOFTWARE. Concepts, methods, techniques, data, know-how, processes, adaptations,
compounds, compositions of matter, ideas and expressions of ideas relating to
pharmaceuticals developed by or on behalf of Licensee ("Pharmaceutical
Know-How") and any Licensee Software developed by or on behalf of Licensee prior
to or during the course of this Agreement shall be and remain the exclusive
property of Licensee. Licensor shall have no right and no title or ownership of
any component or manifestation of any such Pharmaceutical Know-How, Proprietary
Components of Custom Software Modules, Licensee Software or resulting
pharmaceutical product developed by or on behalf of Licensee. All rights in such
Pharmaceutical Know-How, Proprietary Components of Custom Software Modules,
Licensee Software or resulting pharmaceutical products are and shall remain the
exclusive property of Licensee. Concepts, methods, techniques, data, know-how,
processes, adaptations, ideas and expressions of ideas relating to Licensee
Software or Proprietary Components of Custom Software Modules that incorporate
any Licensor Intellectual Property or Licensor Confidential Information, shall
be used by Licensee exclusively in conjunction with the System. Licensee
Software shall be owned by Licensee and Licensor shall only have right to use
Licensee Software for the benefit of Licensee for the purposes set forth in this
Agreement. Licensee grants to Licensor a non-exclusive, nontransferable right to
use Licensee Software at the Designated Locations in connection with the System
and Services provided in this Agreement.

         (b) INVENTIONS RELATING TO LICENSED SOFTWARE, HARDWARE AND CUSTOM
SOFTWARE MODULES (OTHER THAN PROPRIETARY COMPONENTS OF CUSTOM SOFTWARE MODULES).
Concepts, methods, techniques, know-how, processes, adaptations, ideas and
expressions of ideas relating to the Licensed Software or any Custom Software
Module developed by or on behalf of Licensor during the course of this Agreement
shall be and remain the exclusive property of Licensor provided, however, that
(i) Licensor grants to Licensee a non-exclusive, nontransferable right to use
the Custom Software Module at the Designated Location(s) under the terms and
conditions of this Agreement, (ii) Licensor's rights in the Custom Software
Module shall not extend to any Licensee Software or to any proprietary software
of any third party person or entity which has been incorporated into the Custom
Software Module which is separately licensed by Licensor to Licensee as a
distributor or OEM of such products and (iii) Licensor shall have no rights,
other than as specified in this Agreement, and no title or ownership in any
Proprietary Components of Custom Software Modules as identified on Exhibit D by
the System Committee, pursuant to Section 3.2(e) herein. Custom Software Modules
shall not be used other than in conjunction with the System, unless the prior
written consent of Licensor has been

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obtained for each instance of such use, such consent from Licensor not to be
unreasonably withheld. Licensee's request for consent shall detail the nature
and scope of such use, including details regarding any other third-party
software that will interact with the Custom Software Module. In the event
Licensee has obtained written consent of Licensor for the use of a Custom
Software Module other than in conjunction with the System, Licensee acknowledges
that (A) Licensee shall not have the right to disclose any Licensor Intellectual
Property or Licensor Confidential Information to any non-employee of Licensee or
its Affiliates (regardless of whether such non-employee is otherwise deemed a
User within the context of this Agreement); (B) Licensor shall in no event be
obligated to provide Services in conjunction with any such use; and (C) no
warranties or indemnification of any kind shall extend to any Custom Software
Module used other than in conjunction with the System.

         (c) PATENT APPLICATIONS RELATING TO THE USE OF THE SYSTEM, LICENSEE
SOFTWARE OR COMPONENTS OF CUSTOM SOFTWARE MODULES COMPRISED OF LICENSEE
PROPRIETARY INFORMATION. Licensor shall own all patent rights and shall have the
sole right, at its expense, to obtain patent protection relating to any
invention or discovery made relating to the System . Licensee shall own all
patent rights and shall have the sole right, at its expense, to obtain patent
protection relating to any invention or discovery made relating to the Licensee
Software, any Pharmaceutical Know-How and any Proprietary Component of Custom
Software Modules as identified by the System Committee and enumerated in Exhibit
D. The foregoing allocations of patent rights shall apply whether such invention
was invented solely by employees of Licensor, jointly by employees of Licensor
and Licensee, or solely by employees of Licensee. To the extent any such
invention or discovery was made by an employee of a party not having ownership
and patent responsibility (the "Filing Party"), the other party agrees to
cooperate, at the Filing Party's expense and request, in the filing and
prosecution of any such patent, and agrees to assign its interest in any such
invention to the Filing Party.

                              III. SUPPORT SERVICES
                                   ----------------

3.1 SUPPORT SERVICES. Licensee shall be entitled to receive Services from
Licensor during the term of this Agreement as described below. Services provided
pursuant to Section 3.1 shall not be treated as Service Hours and shall not be
subject to any additional charges or fees:

         (a) REMOTE SYSTEM SUPPORT. Licensor will provide unlimited remote
consultation regarding the System, comprised of support, problem determination
and resolution Service by telephone and electronic mail 24 hours per day, 365
days per year.

         (b) REMOTE ACCESS AND SYSTEM MONITORING. Licensee shall, upon request
and as needed, grant Licensor remote access to the System to fulfill obligations
to be performed by Licensor pursuant to this Agreement, including, but not
limited to, purposes of monitoring the performance and integrity of the System
and for problem

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determination and resolution and for other purposes consistent with the terms of
this Agreement; provided, however, that Licensee, at its option, may require
that Licensor perform such monitoring Services on site at the Designated
Locations pursuant to Section 3.2. Licensee and Licensor shall mutually agree on
any necessary access conditions for non-critical access and maintenance.

         (c) RESPONSE TIME. All requests by Licensee for support shall be made
by way of designated phone, email or pager to Licensor's client services group
shall be responded to by Licensor according to the escalation procedures set
forth on EXHIBIT J.

Subsection (d) is an open issue

         (d) LICENSOR EXTENSIONS TO THE SYSTEM. Licensor agrees to complete, at
no cost to Licensee, the release of the features set forth on EXHIBIT H for
acceptance on or before December 31, 1998, which shall be part of the System. If
Licensor is unable to deliver such functionality as set forth in Exhibit H by
December 31, 1998, Licensee shall have the right to defer payment of the Fee for
the first Calendar Quarter of 1999, and any subsequent Calendar Quarter (s),
until all of such functionality listed on EXHIBIT H is substantially completed,
unless otherwise agreed between the Parties. In the event that such EXHIBIT H
functionality remains unaccepted as of March 31, 1999 under the procedures
outlined in Section 5.1, either Party shall have the right to terminate this
Agreement and Licensee shall have the right to return the System(s) for a
complete refund of all Fees paid to date. In addition, Licensor agrees to
develop, as a priority, the additional post-1998 functionality set forth on
EXHIBIT H on a mutually-agreed schedule. The parties shall, in good faith, agree
upon specifications for such additional post-1998 functionality, on the number
(if any) of Service Hours to be used for the completion of such functionality,
on a timetable for the development of such functionality, and on a remedy for
non-performance on or before December 31, 1998. Licensor and Licensee agree to
abide by the process set forth in Section 4.1 (a) of this Agreement (with the
exception that disputes shall be resolved by the Steering Committee as defined
in Section 10.10, in lieu of an outside arbitrator as otherwise provided), which
otherwise pertain to the development of Custom Software Modules, in reaching
agreement on the aforementioned items. The specifications and the timetable
shall balance Licensees needs to have such functionality available in 1999, and
the feasibility of developing such functionality. If the parties are unable to
reach agreement upon these matters on or before December 31, 1998, then Licensee
shall have the right to treat such failure as a failure to deliver the EXHIBIT H
functionality required for delivery on or before December 31, 1998 and exercise
the Fee deferral rights described above.

         (e) LIMITATIONS. Licensor shall in no event be obligated to provide
support, under this Section 3.1, to Users who are not working from a Designated
Location, insofar as any request for support is directly related to, or directly
caused by, User's access to the system from a remote location (other than a
Designated Location).

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3.2 USE OF SERVICE HOURS. As a part of the Fee, Licensee is entitled to receive
from Licensor the number of Service Hours set forth in EXHIBIT I of this
Agreement. Section 3.2 sets forth the manner in which Service Hours may be used
by Licensee. Except as expressly provided for in this Agreement, any unordered
Service Hours at the end of a Calendar Quarter shall be forfeited and canceled.
Service Hours may be allocated among such types of Service in any combination
selected by Licensee. Except as expressly set forth in EXHIBIT L (Use of Service
Hours), which may be revised from time to time as necessary, the number of
Service Hours deemed to be used for any Service request shall be the number
specified by written notice to Licensee prior to the commencement of such
Services, as determined by Licensor in its reasonable discretion.

         (a) If the Service Hours referred to in the previous paragraph are
requested, and Licensor is unable or unwilling to provide such Services for the
purposes ordered during such Calendar Quarter, Licensor shall have the right
once per Contract Year to delay the provision of such requested Service Hours
until the next Calendar Quarter subsequent to the Calendar Quarter for which the
request is made, and the Service Hours associated with the completion of such
request shall be credited to that next subsequent Calendar Quarter, for the
completion of such requested Service. If Licensor is unable or unwilling to
provide such Services during that subsequent Calendar Quarter, such unfurnished
Service Hours shall, at the option of Licensee, be credited at the rate of
[******] per hour against the amount reflected in the Fee for such Service Hours
the subsequent Calendar Quarter(s) or refunded to Licensee, in addition to any
other remedies available under this Agreement.

         (b) During one (1) Calendar Quarter per Contract Year, an "Advance" may
be requested for additional Service Hours in that Calendar Quarter. Such request
for an Advance delivery of Service Hours shall not exceed one thousand one
hundred and twenty-five (1125) Service Hours (plus one hundred and twenty five
(125) Service Hours per Calendar Quarter in the first Contract Year), and can be
drawn, at Licensee's option, from the Service Hours to be delivered during the
one or more of the remaining Calendar Quarters in that Contract Year. A request
for an "Advance" shall be made in writing, not less than thirty (30) days in
advance of the requested delivery of Service Hours to be Advanced. In the event
that a request for Service Hours under an Advance is made during the Calendar
Quarter in which the Services Hours are requested, Licensor may, at its
discretion, limit the Service Hours to be Advanced to twenty (20) incremental
hours per week during that Calendar Quarter. Notwithstanding the foregoing,
Licensee may not request an Advance of hours, prior to December 31, 1998, for
the purposes of designing or developing Custom Software Modules.

         (c) ON-SITE SYSTEM SUPPORT. Licensor agrees to provide support
personnel, on or near Licensee's Andover, MA site, for a period of four (4)
weeks following the Commencement Date. Upon request from Licensee, Licensor
shall use all commercially reasonable efforts to provide Licensee with on-site
support Services, and the number of Service Hours shall be deducted from the
Service Hours available to

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CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION.  ASTERISKS DENOTE SUCH OMISSIONS.

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Licensee in exchange for such on-site Services, provided, however, that Licensee
shall be charged with a minimum of four (4) Service Hours for any on-site visit.
Licensor shall be provided with a mutually-agreed maintenance window on the
System of no less than one (1) hour per week in which Licensor may take the
System down for routine maintenance at scheduled times without causing a breach
of this Agreement.

         (d) CUSTOMIZATION SERVICES. Licensee may request, and Licensor shall be
obligated to provide in accordance with the terms of this Agreement,
customization Services from Licensor by completing a Customization Software
Request in the form attached hereto as EXHIBIT D, detailing the customization
Services requested. Licensor shall estimate the amount and type of Services
required for such customization, and forward to Licensee a written response.
After review and approval in writing by the parties of the completed EXHIBIT D
covering a customization project, Licensor shall perform such customization
Services. During a customization project, the amount of the number of Service
Hours set forth in EXHIBIT D as completed shall be deducted from those available
to Licensee under this Agreement. Payment for Services provided by Licensor on a
customization project in excess of such available Service Hours shall be based
on the hourly rates of Licensor set forth on EXHIBIT G or as otherwise mutually
agreed in writing by the parties. The maximum number of Service Hours to be used
for any Service request shall be the number agreed to pursuant to Section 4.1 of
this Agreement.

         (e) PROPRIETARY COMPONENTS OF CUSTOM SOFTWARE MODULES. Except as
otherwise provided in Section 4.1 of this Agreement, Licensee shall have the
right to request and Licensor shall be obligated to design and deliver Custom
Software Modules containing Licensee Intellectual Property, Licensee
Confidential Information and/or Licensee Pharmaceutical Know-How. In each such
instance, the System Committee (as defined in Section 10.10 of this Agreement)
shall meet and shall jointly determine which concepts, methods, techniques,
data, know-how, processes, adaptations, compounds, compositions of matter, ideas
and expressions of ideas both: (a) are necessary to the Custom Software Module
(b) do not contain Licensor Intellectual Property, (c) provide competitive
advantage to Licensee (such components, jointly and separately, known
"Proprietary Components of Custom Software Modules") As used here, a Proprietary
Component of a Custom Software Module may be recognized as a stand-alone
package. All Proprietary Components of Custom Software Modules shall be
identified in writing on EXHIBIT D, as same may be amended from time to time.
Proprietary Components of Custom Software Modules shall not be used by Licensor
in any customization request submitted by any third party customer of Licensor.
In the event the System Committee is unable to agree on any part of the
procedure outlined in this subparagraph, the dispute shall be resolved according
to the procedure outlined in Section 10.10 of this Agreement. Nothing contained
herein shall restrict Licensor from developing Custom Software Modules for any
third party that do not contain any Proprietary Components of Custom Software
Modules as defined in this Section 3.2 (e).

                                       12
<PAGE>   14

         (f) ON- SITE SYSTEM MONITORING. In the event Licensee requests that
Licensor provide on-site monitoring in lieu of remote site support otherwise
available under Section 3.1(b) of this Agreement, Licensee shall be charged
fifty-two (52) Service Hours each Calendar Quarter therefor, prorated on a daily
basis for any partial Calendar Quarter, and shall pay all of Licensor's
reasonable out-of-pocket expenses incurred in connection with performing such
monitoring services, including, without limitation, travel, lodging and meals
expenses.

         (g) ACCOUNTING OF SERVICE HOURS; REPORTS. Service Hours shall be
accounted for on a Calendar Quarter basis and Licensor shall provide Licensee
with monthly cumulative reports during each Calendar Quarter detailing projects
for which Service Hours were used and the number of Service Hours used. Until
Licensee has exhausted its Service Hours for any Calendar Quarter, all such
on-site Services (except on-site System monitoring described in the previous
paragraph) including, without limitation, any reasonable out-of-pocket expenses
incurred by Licensor in connection therewith, shall be at Licensor's expense.
Once Licensee has exhausted its Service Hours for any Calendar Quarter, it shall
be charged for any such additional Service at the billing rates set forth in
EXHIBIT G (or as otherwise mutually agreed in writing by the parties), and shall
reimburse Licensor for any reasonable out-of-pocket expenses incurred by
Licensor in connection therewith, including, without limitation, travel, lodging
and meals expenses. Licensee shall have the right to request reasonable
documentation and receipts in support of any reimbursement of out-of-pocket
expenses.

3.3 ADDITIONAL SERVICES. Licensor shall have the right in its sole discretion to
agree to provide Services to Licensee beyond Licensee's available then unused
Service Hours, or in addition to the support services to be provided pursuant to
Section 3 hereof, including, without limitation, Services in connection with any
Custom Software Specifications or other programming Services, training services
and data conversion Services. All such Services shall be performed at the
billing rates set forth in EXHIBIT G and upon and pursuant to such other terms
and conditions as Licensor and Licensee mutually agree in writing.

3.4 Hardware Upgrades. Licensor shall notify Licensee as soon as is practicable,
but at least one (1) month in advance, of any routine Hardware upgrade or
substitution to be made by Licensor. Prior to or concurrent with such advance
notice, Licensor shall provide Licensee with a project plan covering such
upgrade or substitution which shall contain details regarding the scope, upgrade
process, Hardware specifications and upgrade procedure. Licensee shall have the
right to review, comment upon and approve routine Hardware Upgrades, and shall
have the right, upon written notification to Licensor prior to any such planned
Hardware upgrade, to defer implementation of same for up to six (6) months.
Licensee's approval to any routine Hardware upgrade shall be evidenced by its
written countersignature to the Hardware upgrade or substitution project plan.
In the event Licensee fails to implement a Hardware upgrade which is
functionally equivalent (as defined in Section 1.8 of this Agreement) under the
procedure set forth in

                                       13
<PAGE>   15

this paragraph, Licensor shall have the right, to the extent affected by
Licensee's delay, to defer (a) Licensee's receiving Software upgrades, in the
form of Subscription Releases and Custom Software Modules (including any
Proprietary Components thereof) and (b) support obligations for Licensee
Software, and the warranties and indemnification obligations (in each case, to
the extent any such Hardware upgrade is necessary to provide such support or to
fulfill such warranty or indemnification obligation) described in this Agreement
shall cease to apply. In the event that a Hardware upgrade is not functionally
equivalent, Licensor shall be obligated to correct any failures to perform, or
to revert to the prior System configuration (including Hardware and any
Software) until Licensor is able to do so.

                          IV. CUSTOMIZATION METHODOLOGY
                              -------------------------

4.1 CUSTOMER SOFTWARE SPECIFICATIONS.

         (a) If Licensee desires that the Licensed Software be modified,
customized or adapted in any respect to suit Licensee's specific requirements
through the development of Custom Software Modules, Licensee shall deliver to
Licensor written notice thereof, in the form of EXHIBIT D attached hereto,
specifying Licensee's requirements in as much detail as possible. Upon receipt
of such notice, Licensor and Licensee shall cooperate in good faith to agree
upon the scope of such Services, the Custom Software Specifications, any
portions of the Custom Software Module to be deemed a Proprietary Component of
the Custom Software Module, timetable for development and implementation and
cost therefor, provided, however, that nothing in this Agreement shall be deemed
to (i) obligate Licensor to perform any Services in excess of those available by
way of Licensee's then available Service Hours or (ii) provide Services related
to Custom Software Modules which are infeasible. Such agreement shall be set
forth in writing referencing this Agreement and shall be incorporated herein as
EXHIBIT D. If the parties are unable to agree on the number of Service Hours
needed for a particular project or projects after good faith discussions over a
thirty (30) day period, the Licensee shall have the right to either drop the
request for services or submit the matter to the System Committee (as defined in
Section 10.10 of this Agreement) for dispute resolution as provided for
thereunder. If the matter cannot be resolved by the System Committee within five
(5) business days of submission, each Party shall pick a final reasonable
estimate of the Services Hours they estimate for the project, and the two
estimates shall be considered by the officers designated in Section 10.10. If
such officers cannot resolve the matter within five (5) business days, each
Party's final reasonable estimate shall be provided to a mutually agreeable
expert within ten (10) additional days. The parties shall promptly meet with the
expert and explain the basis for their estimates, and the expert shall pick the
estimate that he or she determines is most reasonable and shall not be
authorized to fashion an alternate solution. The selection of one Party's
estimate shall be a final and binding decision on the number of Service Hours to
be charged for the project. If the expert selects Licensor's final estimate,
Licensee shall have the right to rescind the request for such Services. In the
event Licensee rescinds such request,

                                       14
<PAGE>   16

Licensor's time used in development of requirements and design for such request
shall be charged against Licensee's then-available Service Hours.

         (b) To the extent the number of Service Hours that Licensor estimates
will be required to complete a Custom Software Module during a Calendar Quarter
exceeds Licensee's then unused Service Hours for such Calendar Quarter, such
customization Services shall be charged to Licensee at the billing rates set
forth on EXHIBIT G or at such other rates as the parties mutually agree in
writing. However, nothing in this Section 4.1 (b) shall constitute an obligation
of the Licensor to provide a Custom Software Module in excess of the
then-available Service Hours for the Calendar Quarter. Licensor shall have the
right, at its sole discretion, to defer any such Custom Software Module to a
subsequent Calendar Quarter. In the event Licensor elects to defer any such
Custom Software Module, the Custom Software Module shall be charged against
Licensee's available Service Hours for that subsequent Calendar Quarter.

         (c) Subject to the limitations set forth in Sections, 7.1 (e) and 7.2
hereto, Licensor warrants that a Custom Software Module, once completed and
accepted by Licensee in accordance with the terms hereof, shall perform in all
material respects in accordance with the Custom Software Specifications, and
Licensor shall correct any errors or failures to perform within the time period
specified for error or failure correction in a Custom Software Module request
and provide Licensee written notice of such correction If Licensor fails to
correct any error or failure as set forth in the previous sentence, Licensee
shall have the right to either (i) extend the period of time for Licensor to
correct such error or defect, (ii) accept the Custom Software Module as is,
(iii) accept the Custom Software Module with a refund of a reasonably agreed
pro-rata portion of Service Hours or supplemental payments allocable to the
value of the non-performing Custom Software Module or (iv) return the Custom
Software Module for a refund of Service Hours and/or any supplemental payments
made by Licensee to Licensor for such Custom Service Module in amount equal to:
(a) 50% of such Service Hours where the Custom Software Module is a Proprietary
Component of a Custom Software Module and 100% of such Service Hours where it is
a not proprietary to Licensee. Notwithstanding the foregoing, Licensor shall not
be obligated to refund Service Hours, in the event that the Steering Committee
determines the failure of any such Custom Software Module is due to cause other
than failure of Licensor to meet the Custom Software Specifications.

4.2 CUSTOM SOFTWARE MODULE INSTALLATION AND ACCEPTANCE.

         (a) Licensor shall use all commercially reasonable efforts to install
Custom Software Modules in accordance with the schedule set forth in EXHIBIT D,
subject to Licensee performing its obligations under this Agreement and
providing such cooperation as Licensor may reasonably request to facilitate such
installation. Such installation with respect to any Custom Software Module shall
be deemed complete upon written notice from Licensor to Licensee.

                                       15
<PAGE>   17

         (b) A Custom Software Module, with respect to which any notice has been
provided by Licensor, shall not be deemed to be accepted under this Agreement
unless and until:

                  (I) such Custom Software Module materially conforms to the
         Custom Software Specifications as agreed in Exhibit D therefor; and

                  (II) Licensee fails to give notice of non-acceptance to
         Licensor within the time period specified in a Custom Software Module
         request (which shall be not less than ten (10) or more than forty-five
         (45) days after the receipt by Licensee of a Custom Software Module)
         pursuant to Licensor's notice of Custom Software Module installation.

Any notice of non-acceptance shall state specifically the specifications, and
manner in which the Custom Software Module fails to conform to such
specifications, with sufficient specificity to permit Licensor to correct such
nonconformity. Licensor shall use reasonable efforts to correct any such
nonconformity found to exist and notify Licensee of the completion of such
correction. If Licensor is unable to make such corrections, Licensee's remedy
shall be as provided in Section 4.1 (c) of this Agreement.

4.3 LICENSEE SOFTWARE.

         (a) Prior to developing any module of Licensee Software to be covered
by the warranty provisions of Section 7.1, Licensee shall have: (i) received
from Licensor a current copy of Licensor Custom Software Guidelines described in
EXHIBIT E covering such module,(ii) submitted a proposal to Licensor describing
the methodology, specifications and timetable of such Licensee Software and
(iii) received Licensor's approval to the development of such Licensee Software.
Licensee shall then have the right to develop Licensee Software modules in
accordance with the Licensor Custom Software Guidelines covering such module.
Licensor shall provide certification for Licensee Software modules to be
incorporated into the System according to the Licensor Custom Software
Guidelines following quality assurance testing of such Licensee Software by
Licensor. All Licensor activities under this section 4.3 (a) shall be charged
against the Licensee's then-available Service Hours for the Calendar Quarter.
Licensee Software developed other than in accordance with all provisions of this
Section 4.3 (a) shall void warranty rights as provided in Section 7.1 (d)
herein, to the extent that any such claim of warranty is attributable to the
implementation of such Licensee Software.

         (b) Subject to the scope of any Licensor Custom Software Guideline,
Licensor warrants that the Licensor Custom Software Guidelines shall be written
in sufficient detail to provide Licensee with adequate information about the
Licensed Software and the System so that a reasonably skilled software
programmer will be able to design Licensee Software modules compatible with the
Licensed Software. During the course of this Agreement, Licensor agrees to
provide any Licensor Custom Software Guidelines to

                                       16
<PAGE>   18

Licensee as soon as is practicable after they are produced, and shall provide
such revisions to Licensor Custom Software Guidelines as are appropriate. Upon
request, Licensor shall produce such Licensor Custom Software Guidelines as are
needed and shall provide same to Licensee. Notwithstanding the foregoing, the
Parties agree that Licensor shall not be under an obligation to produce Licensor
Custom Software Guidelines covering software modules that are unfeasible.

                    V. INSTALLATION, ACCEPTANCE AND TRAINING
                       -------------------------------------

5.1 INSTALLATION AND ACCEPTANCE OF SYSTEM AND THE LICENSED SOFTWARE.

         (a) Licensor shall use all commercially reasonable efforts to install
the first System and the Licensed Software in Andover, MA and the Development
System (defined in EXHIBIT C) in Cambridge, MA (collectively, the "First
Systems") on or before the Commencement Date, subject to Licensee performing its
obligations under this Agreement and providing such cooperation as Licensor may
reasonably request to facilitate the installations of the First Systems.
Subsequent installations of the System (each an "Additional System") shall be
made pursuant to and in accordance with an installation roll-out plan approved
in writing by the Parties within forty-five (45) days of the Commencement Date.
Such installation with respect to each System and the Licensed Software shall be
deemed complete upon written notification from Licensor; however, each System
shall not be deemed to be accepted under this Agreement unless and until the
earlier of Licensee providing written notice of acceptance based on conformance
of the System to an acceptance plan to be provided by Licensor or:

         (I) For the First Systems, the System materially conforms to and
         performs in accordance with the Specifications therefor; and Licensee
         fails to give notice of non-acceptance within ten (10) business days
         after receipt of installation notice.

         (II) For each Additional System, such Additional System is connected to
         and synchronized with each of the other Systems installed at that time
         (except for the Development System, which shall not be synchronized
         with any of the Systems); and Licensee fails to give notice of
         non-acceptance within forty-five (45) days after receipt of
         installation notice.

Any notice of non-acceptance shall state specifically the Specifications, and
manner in which a System fails to conform to such Specifications, with
sufficient specificity to permit Licensor to correct such nonconformity.
Licensor shall use reasonable efforts to correct any such nonconformity found to
exist and notify Licensee of the completion of such correction. If Licensor is
unable to make such corrections, Licensee's remedy shall be limited to
correction or replacement of the nonconforming portion of the System. Licensee
shall cooperate with Licensor in correcting such nonconformity. In the event
that a System remains non-accepted for more than thirty (30) days after a notice
of non-acceptance is received by Licensor from Licensee, Licensee shall have the
right to

                                       17
<PAGE>   19

withhold a pro-rata portion of a Calendar Quarter payment of the applicable Fee
until such non-acceptance is corrected by Licensor. For this purpose, the
pro-rata portion of the Calendar Quarter payment shall be the percentage of the
non-accepted Systems scheduled to be installed under the roll-out plan. If,
after three (3) months, Licensor is unable to make such corrections, either
Party, at its option, shall have the right to terminate this Agreement, and
Licensee shall have the additional right to return the System(s), and Service
Hours previously charged to Licensee shall be refunded less a pro-rata share of
amounts paid for any Sites which the System was previously accepted. For this
purpose, the pro-rata share shall be the percentage of the accepted Systems
scheduled to have been installed under the roll-out plan. All provisions of this
Section 5.1 shall also be subject to the provision set forth in Section 3.1 (d)
of this Agreement.

         (b) TRAINING. Upon the initial installation and acceptance by Licensee
of the Licensed Software as provided in this Section 5.1(a), Licensor shall
provide two (2) days of on-Site end User training per System at no additional
charge to Licensee. Licensee shall also provide three (3) days training to up to
three (3) developers per Site at no additional charge to Licensee. Both of these
training options are "open attendance", and trainees at any Site can attend a
training session at another Site. Additional training beyond the initial days of
training per System described above will be deducted from the Licensee's Service
Hours or, if Licensee has exhausted its Service Hours for the quarter, will be
charged to Licensee at Licensor's the billing rates set forth in EXHIBIT G.

                          VI. LICENSEE RESPONSIBILITIES
                              -------------------------

6.1 Licensor's performance under this Agreement is contingent upon Licensee
providing such cooperation as Licensor may reasonably request including, but not
limited to providing or performing, the following:

            (a) Following the construction of the new computer room in
Licensee's Andover facility which is expected to be completed in August 1998,
sufficient and appropriate physical space at each Site for the Hardware in a
controlled area such as a data center or computer room such that the Hardware is
physically secured and environmentally controlled;

            (b) Electrical power source in close proximity to the location of
the Hardware;

            (c) Physical connection to Licensee's network, firewall or gateway
(as applicable), in proximity to the location of the Hardware;

            (d) Technical information regarding the addressing and configuration
of Licensee's DNS (Domain Name Services) and electronic mail servers sufficient
to allow Licensor's server to communicate with Licensee's servers;

                                       18
<PAGE>   20

            (e) A minimum of two (2) valid network names (host, node or machine
names) and their associated Internet Protocol addresses; and

            (f) Reasonable assistance of Licensee's personnel.

         It being understood by the Parties that all Systems included on EXHIBIT
C are intended to be installed and synchronized under the mutually-agreed
roll-out plan referenced in Section 5.1 (a), that no Additional Systems (other
than the Cambridge System) shall be installed until the functionality listed on
Exhibit H is completed and accepted, and that Licensee shall have it facilities
available for installation and acceptance on the date(s) the Systems are
mutually agreed to be installed, according to the aforementioned plan. A choice
by Licensee not to implement the System at a Site will not alter the Fees under
this Agreement unless it is attributable to the non-performance of the Licensor.

             VII. WARRANTY; DISCLAIMER; LIMITATIONS; INDEMNIFICATION
                  --------------------------------------------------

7.1 WARRANTY; DISCLAIMER.

         (a) Licensor warrants that from the date that the System or a Custom
Software Module (including any applicable Proprietary Component of a Custom
Software Module used in conjunction with that Custom Software Module), as the
case may be, is accepted by Licensee, the System or such Custom Software Module
will perform in all material respects in accordance with the Specifications
therefor, provided the System or such Custom Software Module is used on the
Hardware (or as otherwise agreed by Licensor) in accordance with the
instructions therefor.

         (b) Licensor further represents and warrants that System (including,
without limitation, any Custom Software Modules) will correctly calculate,
compare and manage data involving dates and will not cause an abnormal
termination of or within the System or result in incorrect or invalid values or
calculations generated involving such dates, provided that all products not
supplied by Licensor which exchange date data with the System do so correctly
and in a form compatible with the System. In the event the System or any
Proprietary Component of any Custom Software Module is non-compliant with
respect to this Section 7.1 (b), Licensor shall, at no cost to Licensee, use all
commercially reasonable efforts to promptly correct such non-compliance and
provide such correction to Licensee.

         (c) THE HARDWARE MAY CONTAIN THIRD-PARTY SOFTWARE WHICH IS THE SUBJECT
OF LICENSES BETWEEN LICENSOR AND THE MANUFACTURER OF SUCH THIRD-PARTY SOFTWARE.
LICENSOR WARRANTS, THAT TO THE BEST OF ITS KNOWLEDGE, IT HAS NOT INCLUDED ANY
THIRD PARTY HARDWARE OR SOFTWARE WHICH INFRINGES THE INTELLECTUAL PROPERTY
RIGHTS OF A THIRD PARTY. LICENSOR DOES NOT WARRANT ANY SUCH THIRD-PARTY
SOFTWARE, AND

                                       19
<PAGE>   21

NO SUCH THIRD PARTY ASSUMES ANY LIABILITY REGARDING THE USE OF SUCH THIRD-PARTY
SOFTWARE OR UNDERTAKES TO FURNISH THE LICENSEE WITH ANY SUPPORT OR INFORMATION
REGARDING SUCH THIRD-PARTY SOFTWARE UNLESS IT IS PURSUANT TO A SEPARATE
AGREEMENT BETWEEN SAID THIRD PARTY AND LICENSEE. ANY LIABILITY OF ANY SUCH
MANUFACTURER OF SUCH THIRD-PARTY SOFTWARE SHALL BE LIMITED IN SCOPE TO ANY
AGREEMENT BETWEEN LICENSOR AND ANY SUCH MANUFACTURER. THIRD PARTY MANUFACTURERS
OF SOFTWARE WHICH IS INCORPORATED INTO THE SYSTEM MAY BE LICENSOR'S THIRD PARTY
BENEFICIARIES TO THIS AGREEMENT.

         (d) UPON RECEIPT OF CERTIFICATION OF LICENSOR IN ACCORDANCE WITH
SECTION 4.3 (a) APPLYING TO ANY LICENSEE SOFTWARE, LICENSOR WARRANTS THAT THE
SYSTEM INCORPORATING ANY SUCH LICENSEE SOFTWARE SHALL PERFORM IN ACCORDANCE WITH
THE SYSTEM SPECIFICATIONS. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 7.1
(d), LICENSOR DOES NOT MAKE ANY AND EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES
WITH RESPECT TO LICENSEE SOFTWARE

         (e) LICENSOR DOES NOT MAKE ANY AND EXPRESSLY DISCLAIMS ALL WARRANTIES
OTHER THAN THE WARRANTY EXPRESSLY MADE IN SECTIONS 4.1, 4.3, 7.1(a), 7.1(b) AND
7.1(d) HEREOF, WHETHER ORAL OR WRITTEN, EXPRESS OR IMPLIED, OR ARISING BY USAGE
OF TRADE OR COURSE OF DEALING INCLUDING, WITHOUT LIMITATION, THE WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

                  7.2 LIMITATIONS.

         (a) LICENSEE'S EXCLUSIVE REMEDY FOR ANY BREACH OF THE WARRANTY MADE IN
SECTIONS 4.1(c), 4.3(b), AND 7.1 (a ) AND (b) SHALL BE LIMITED TO (i) THE
CORRECTION OR REPLACEMENT OF THE NONCONFORMING PORTION OF THE SYSTEM, OR, IF (i)
IS NOT SUCCESSFUL IN A REASONABLE PERIOD OF TIME, EITHER (ii)THE REFUND
RETROACTIVELY AND FUTURE REDUCTION PROSPECTIVELY OF A PRO RATA PORTION OF THE
FEE WITHOUT THE RETURN OF THE SYSTEM, OR (iii) A REFUND OF ALL FEES PAID TO
DATE, WITH THE RETURN OF THE ENTIRE SYSTEM, WHICHEVER SHALL BE ELECTED BY
LICENSEE. LICENSEE'S EXCLUSIVE REMEDY FOR ANY BREACH OF THE WARRANTY MADE IN
SECTION 7.1 (d) SHALL BE THE (I) CORRECTION OF THE SYSTEM AND/OR THE LICENSEE
SOFTWARE, OR IF (I) IS NOT SUCCESSFUL, A REFUND OF A PRO-RATA PORTION OF THE FEE
WITHOUT THE RETURN OF THE SYSTEM,

                                       20
<PAGE>   22

WHICHEVER SHALL BE ELECTED BY LICENSEE. THE WARRANTIES SET FORTH IN SECTION 4.1
(c), 4.3 (b) AND 7.1 (a) AND (d) SHALL RUN FOR A PERIOD OF ONE (1) YEAR
FOLLOWING THE ACCEPTANCE OF WARRANTED ITEM. THE WARRANTY SET FORTH IN SECTION
7.1(b) SHALL RUN UNTIL DECEMBER 31, 2001.

         (b) NEITHER PARTY SHALL IN ANY EVENT BE LIABLE FOR ANY CONSEQUENTIAL
(EXCEPT FOR THE INDEMNIFICATION OBLIGATION UNDER SECTION 7.3, INSOFAR AS IT
COVERS PERSONAL INJURY OR PROPERTY DAMAGE, AND CONFIDENTIALITY AND USE
RESTRICTION OBLIGATIONS UNDER SECTION 2.3 AND CONFIDENTIAL INFORMATION UNDER
SECTION 10.22), INCIDENTAL, EXEMPLARY OR SPECIAL DAMAGES, INCLUDING BUT NOT
LIMITED TO LOST PROFITS OR REVENUES, LOSS OF DATA, BUSINESS INTERRUPTION OR
LOSS, RECOVERY OR SUBSTITUTION COSTS, CLAIMS BY THIRD PARTIES, OR ECONOMIC
DAMAGES, WHETHER CLAIMED UNDER CONTRACT, TORT OR ANY OTHER LEGAL THEORY, ARISING
OUT OF THE USE OF OR INABILITY TO USE THE SYSTEM.

         (c) IF ANY OF THE LIMITATIONS ON THE LIABILITY OF LICENSOR PROVIDED FOR
IN THIS AGREEMENT ARE FOUND TO BE INVALID FOR ANY REASON WHATSOEVER BY A COURT
OF COMPETENT JURISDICTION, LICENSEE AND LICENSOR EXPRESSLY AGREE THAT THE
MAXIMUM LIABILITY OF LICENSOR UNDER SUCH CIRCUMSTANCE SHALL NOT EXCEED ONE
HUNDRED PERCENT (100%) OF THE TOTAL FEES PAID BY LICENSEE TO LICENSOR IN THE
TERM SUCH LIABILITY WAS FIRST ALLEGED, IN ADDITION TO ANY OTHER EXPRESS REMEDIES
PROVIDED FOR UNDER THE TERMS OF THIS AGREEMENT THAT DO NOT PERTAIN TO THE
REPAYMENT OF FEES.

         (d) THE WARRANTIES MADE UNDER THIS AGREEMENT EXTEND ONLY TO LICENSEE.

7.3 INDEMNIFICATION. If any claim is made against Licensee asserting that the
System or any Custom Software Module, or any Proprietary Component of such
Custom Software Module (developed by Licensor used in connection with that
Custom Software Module) infringes any United States patent, copyright or other
intellectual property right, Licensor shall, at the option of Licensor, either
(a) defend Licensee against such claim; (b) acquire for Licensee the right to
continue using such System or such Custom Software Module; or (c) replace such
System or such Custom Software Module with other Hardware or Software or Custom
Software Module for which there exists no infringement claim or modify such
System or such Custom Software Module to make it non-infringing so long as it
serves substantially the same purpose and function and does not materially
affect the performance of the System as being used by Licensee; provided,
however, that Licensor shall have no liability or obligation to Licensee under
this Section

                                       21
<PAGE>   23

7.3 to the extent any such copyright infringement claim is attributable to : (i)
Licensor's compliance with any Licensee specifications; (ii) any modification of
any portion of the System or Custom Software Module by Licensee not agreed to in
writing by Licensor; (iii) failure of Licensee to use the then most current
version of the System or Custom Software Module (should Licensor give notice to
Licensee that such updated versions of the System remedy such non-performance or
infringement); (iv) the use of the System, Custom Software Module (or
Proprietary Component thereof) or Services in combination with software or
hardware not licensed by Licensor; (v) the use of the System or Custom Software
Module, any Proprietary Component of any Customer Software Module, any Licensee
Software or Services in a manner inconsistent with this Agreement; (vi) a
patent, copyright or other intellectual property right claim in which Licensee
or any affiliate or subsidiary of Licensee has any direct or indirect interest
by license or otherwise which Licensee has the right to practice without
incurring additional royalties or other payments and with respect to which
Licensee has the right to control enforcement against Licensor or (vii) any
material breach by Licensee of the terms of this Agreement which increases
Licensor's liability under this Section. If Licensor elects (a) above, Licensor
shall have the right to control the defense and settlement, at the expense of
Licensor, of any such claim and Licensee shall cooperate with Licensor in such
defense and settlement. If Licensor elects (c) above, Licensee shall return to
Licensor the claimed infringing Software, along with any copies, duplicates and
other manifestations thereof in whatever form. If Licensor is unable to provide
the remedies provided for in (a), (b) or (c) or the remedy results in a System
or Custom Software Module which does not serve substantially the same purpose
and function or materially affects the performance of the System or Custom
Software Module, Licensee, at its option, shall have the right to return the
System for a full refund of the Fee for the System or the Service Hours or the
amount paid as outlined in Section 4.1(c) for the Custom Software Module.
Notwithstanding the foregoing, the limitation under 7.3 (i) above shall apply
only to the Licensee's use of any Custom Software Module, and shall not apply to
Licensor's use of such Custom Software Module for the benefit of any third party
licensee of the System.

7.4 NOTICE. If Licensee believes that Licensor has breached the warranty set
forth in this Agreement or that Licensee is entitled to indemnification pursuant
to Section 7.3 hereof, Licensee shall notify Licensor in writing within ten (10)
business days of the time Licensee becomes aware of such alleged breach or
entitlement to indemnification. Any such notice which is given in connection
with this Section 7.4 shall, to the extent known to Licensee, state specifically
with respect to the System or any Custom Software Module (or Proprietary
Component thereof) the Specifications to which the affected System or Custom
Software Module (or Proprietary Component thereof) fails to conform and the
manner in which the System or Custom Software Module fails (or Proprietary
Component thereof) to conform to such Specifications with sufficient specificity
to permit Licensor to correct such nonconformity and any such notice given in
connection with Section 7.3 shall state with reasonable specificity the nature
of the

                                       22
<PAGE>   24
claimed infringement. The failure of Licensee to notify Licensor in accordance
with this Section shall relieve Licensor of its obligations under Sections 7.1
and 7.3.

                         VIII. TERM; BREACH; TERMINATION
                               -------------------------

8.1 TERM. The License shall commence as of the Commencement Date and shall
terminate upon the fourth (4th) anniversary of the Commencement Date occurs;
provided, however, that (i) Licensee may terminate this Agreement at any time
beginning six (6) months after the Commencement Date upon not less than thirty
(30) days written notice to Licensor (which may be given as early as five (5)
months after the Commencement Date), and (ii) so long as Licensee is not in
material breach of any of the terms hereof, Licensee may renew this Agreement
for successive 1 year terms by sending written notice of Licensee's desire to
renew within 30 days before the end of each then-current term in the form
attached as EXHIBIT F. All such renewals shall be subject to the Fees then in
effect for each License Type, such Fee subject to the provisions of Section
10.12 (a) of this Agreement.

8.2 BREACH. Upon the happening of any of the following events there shall be
deemed to be a material breach of the terms of this Agreement by Licensee, and
without intending to waive, remove, limit, or restrict any legal or equitable
right or remedy otherwise available to Licensor attendant upon such material
breach, Licensor shall have the right to cease performance hereunder until such
breach is remedied or to terminate this Agreement: (a) Licensee fails to make
any payment when due as required by this Agreement for a period of 30 days
following its receipt from Licensor of a written notice specifying such
violation or failure and demanding that it be cured; (b) Licensee violates or
fails to perform any of the other material covenants or agreements contained in
this Agreement for a period of 30 days following its receipt from Licensor of a
written notice specifying such violation or failure and demanding that it be
cured (if such violation or failure is capable of being cured); or (c) Licensee
ceases doing business as a going concern; makes an assignment for the benefit of
creditors; admits in writing its inability to pay its debts as they become due;
files a voluntary petition in bankruptcy; is adjudicated an insolvent; files a
petition seeking reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar arrangement under any present or future
statute, law or regulation, or files an answer admitting the material
allegations of a petition filed against it in any such proceeding; consents to
or acquiesces in the appointment of a trustee, receiver or liquidator of it or
all or any substantial part of its assets or properties, or takes any action
with a view to its dissolution or liquidation; or if within 60 days after the
commencement of any proceedings against it seeking reorganization, arrangement,
readjustment, liquidation, dissolution or similar relief under any present or
future statute, law or regulation, such proceedings shall not have been
dismissed; or if within 60 days after the appointment without Licensee's consent
or acquiescence of any trustee, receiver or liquidator of Licensee of all or any
part of its assets or properties, such appointment shall not be vacated.

                                       23
<PAGE>   25

8.3 TERMINATION.

         (a) EFFECT. Upon the termination of this Agreement, whether by
expiration of its term, default, or other cause specified in this Agreement, or
upon the valid cancellation of the License, Licensee shall, except as provided
under Subsection (b): (i) immediately discontinue exercising any rights granted
hereunder relating to the System or any Custom Software Module which has been
used outside of the System, pursuant to Section 2.4 (a) of this Agreement, (ii)
promptly return to Licensor all components of the System (including any Custom
Software Module which has been used outside of the System, pursuant to the terms
of Section 2.4 (b) of this Agreement) by an appropriate means of delivery and
insured against loss for the full replacement cost thereof, all at the expense
of Licensee, and (iii) certify in writing under oath that, to the best of its
knowledge, all materials required to be delivered to Licensor hereunder have
been delivered to Licensor and that it has violated none of the material
provisions of Section 2.2 or 2.3 hereof. The expiration or termination of this
Agreement shall be without prejudice to any rights of Licensor against Licensee
and such expiration or termination shall not relieve Licensee of any of its
obligations to Licensor existing at the time of expiration or termination.

         (b) CUSTOM SOFTWARE MODULES: LICENSE. In the event Licensee has
obtained permission from Licensor to use any Custom Software Module outside of
the System, as provided in Section 2.4 (b) of this Agreement, Licensee shall
have the right to obtain a fully-paid, perpetual right and license to continue
to use such Custom Software Module for such purposes, provided that termination
of this Agreement is not for breach of this Agreement by Licensee. If Licensee
chooses to obtain such perpetual license, Licensee shall notify Licensor in
writing, within thirty (30) days of the termination date of this Agreement. Upon
payment of a consideration fee, equal to the number of Service Hours originally
charged for the development of such Custom Software Module, multiplied by
[******], Licensor shall grant such perpetual license to Licensee.
Notwithstanding anything to the contrary above, Licensee shall in no event be
obligated to pay any consideration fee for any portion of such Custom Software
Module that is designated a Proprietary Component of such Custom Software
Module. Such license shall be subject to the other restrictions contained in
Section 2.4 (b) of this Agreement, and all other provisions of this Agreement
designated in Section 10.17 as surviving termination.

8.4 SOURCE CODE ESCROW. Licensor agrees to make Licensee a beneficiary under the
Licensor's Source Code Escrow Agreement attached hereto as EXHIBIT K . which
shall provide Licensee with access to the source code for supporting and
maintaining the Licensed Software in the event Licensee ceases to continue its
business in support thereof.

                        IX. PAYMENT, CHARGES AND SUPPORT
                            ----------------------------
                                       24

CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION.  ASTERISKS DENOTE SUCH OMISSIONS.
<PAGE>   26

9.1 LICENSE FEE.

         (a) LICENSE FEE. Licensee shall pay to Licensor a Fee per Calendar
Quarter of [******], plus any upgrade costs as set forth in Exhibit C, with the
first payment to be made fifteen (15) days after acceptance of the First Systems
by Licensee pursuant to Section 5.1, above. Each subsequent payment shall be
made no later than fifteen (15) days after the beginning of the Calendar Quarter
for which payment is due. For any partial Calendar Quarter, Licensee shall pay
Licensor the Fee prorated on a daily basis, and any applicable Service Hours as
set forth in EXHIBIT I shall be similarly prorated. As specified in Section 3.1
(d), Licensee may hold the Fee for the first Calendar Quarter of 1999 and any
subsequent Calendar Quarter(s), until such time as the obligations under Section
3.1(d) are completed by Licensor. In the event such Fee(s) are held, such Fee(s)
shall be due and payable no later than ten (10) days after the obligations under
Section 3.1(d) are completed by Licensor.

         (b ) REQUIREMENT TO PAY FEE. The Fees are in consideration of the
agreement of Licensor to grant the License and provide Services hereunder in
accordance with the License Type selected and shall be so payable regardless of
whether Licensee refuses or is unable to accept the full performance of Licensor
hereunder or whether Licensor's performance hereunder is delayed for reasons not
within the control of Licensor.

9.2 EXPENSES. If Licensee has exhausted its available Service Hours for any
applicable Calendar Quarter, Licensee shall pay to Licensor upon Licensor's
request all reasonable out-of-pocket expenses incurred by Licensor in performing
Services for Licensee under this Agreement including, without limitation,
expenses incurred for travel, meals, lodging, long distance telephone calls,
document reproduction, postage, and cost of storage media such as disks and
tapes.

9.3 TAXES. Licensee shall pay when due, and only when due, any sales, use,
excise, property or other federal, state, local or foreign taxes, duties,
tariffs or other assessments (other than any tax based solely on the net income
of Licensor) and related interest and penalties that Licensor is at any time
obligated to pay or collect in connection with or arising out of the
transactions contemplated by this Agreement. Licensee agrees to indemnify and
hold harmless Licensor from any and all of such duly paid taxes, duties, tariffs
or other assessments. If Licensor pays any such amounts which Licensee is
obligated to pay under this Section 9.3, Licensee shall promptly reimburse
Licensor in an amount equal to the amount so paid by Licensor.

                                       25

CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION.  ASTERISKS DENOTE SUCH OMISSIONS.
<PAGE>   27

                                X. MISCELLANEOUS
                                   -------------

10.1 EMPLOYEES. During the term of this Agreement and for a period of one (1)
year thereafter, neither Party shall solicit any employee of the other Party who
was directly involved with performance of this Agreement; it being understood
that this provision shall not prohibit either Party from hiring employees of the
other Party who have applied for positions on their own without solicitation by
the hiring Party.

10.2 FORCE MAJEURE. If the performance of Licensor or Licensee hereunder is
delayed or prevented at any time due to circumstances beyond the control of
Licensor or Licensee, including without limitation those resulting from labor
disputes, fire, floods, riots, civil disturbances, weather conditions, control
exercised by a governmental entity, unavoidable casualties or acts of God or a
public enemy, the performance of Licensor or Licensee shall be excused until
such condition no longer exists; provided that the non-performing Party uses
commercially reasonable and diligent efforts to eliminate the force majeure
event.

10.3 GOVERNING LAW. This Agreement shall be governed by and construed under and
pursuant to the laws of the State of Ohio, without regard to my such laws
relating to choice or conflict of laws.

10.4 INTEGRATION. This Agreement constitutes the entire agreement between the
parties with respect to the subject matter hereof and shall supersede all
contemporaneous or previous proposals, both oral and written, brochures, sales
materials, negotiations, representations, commitments, writings, agreements, and
all other communications between the parties. It may not be released,
discharged, changed or modified other than in accordance with its terms except
by an instrument in writing signed by a duly authorized representative of each
of the parties.

10.5 HEADINGS. The headings and captions used in this Agreement are intended and
shall for all Purposes be deemed to be for convenience only and shall have no
force or effect whatsoever in the interpretation of this Agreement.

10.6 ASSIGNMENT. Except as otherwise provided hereto, neither Licensor nor
Licensee shall sell, convey, sublicense, assign or otherwise transfer any of the
Software, any component thereof or any right therein, this Agreement, or any of
its rights or obligations under this Agreement, to any other Party, either
voluntarily or involuntarily, directly or indirectly, whether by operation of
law or otherwise without the prior written consent of the other Party.
Notwithstanding the foregoing, any merger, consolidation, sale of a controlling
interest or combination of interests resulting in a change in control of either
Party shall not require the consent of the other Party in the event of an
assignment to a successor in interest in connection therewith; provided that the
successor in interest agrees to be bound to all of the terms and conditions of
this Agreement. Any assignment in violation of the terms hereof shall be void
and of no force or effect.

                                       26
<PAGE>   28

10.7 COUNTERPARTS CLAUSE. This Agreement may be executed in two or more
counterparts each of which shall be deemed originals for all purposes.

10.8 SEVERABILITY. If any term, clause or provision of this Agreement shall be
judged invalid for any reason whatsoever, such invalidity shall not affect the
validity or operation of any other term, clause or provision and such invalid
term, clause or provision shall be deemed to have been deleted from this
Agreement.

10.9 NOTICES. All notices, requests, demands and other communications required
or permitted under this Agreement shall be deemed to have been duly given and
made if in writing and served either by personal delivery to the Party for whom
it is intended, sent by telecopy or electronic mail if followed by hard copy the
next day, or by being deposited postage prepaid, certified or registered mail,
return receipt requested (or such form of mail as may be substituted therefor by
postal authorities), in the United States mail, bearing the address shown in
this Agreement for, or such other address as may be designated in writing
hereafter by such Party:

              If to Licensor:     NETGENICS, Inc.
                                  1717 East Ninth Street
                                  Cleveland, Ohio 44114
                                  (216) 861-4007
                                  Telecopy No. (216) 861-4777
                                  Attention:  Manuel J. Glynias, President

              With a copy to:     Baker & Hostetler LLP
                                  3200 National City Center 1900 East
                                  9th Street Cleveland, OH 44114-3485
                                  (216) 621-0200
                                  Telecopy No.: (216) 621-0740
                                  Attention: Jerry Grisko, Esq.

              If to LICENSEE:     American Home Products, Inc
                                  c/o Genetics Institute, Inc.
                                  87 CambridgePark Drive
                                  Cambridge, MA 02140
                                  (617) 498-8455
                                  Telecopy No.: (617) 876-5851
                                  Attention:  Bruce Leicher, Vice President-Law

10.10 SYSTEM COMMITTEE; DISPUTES. As soon as reasonably practicable after the
Commencement Date, the Parties shall form a committee comprised of two (2) to
three (3) representatives (as designated by the Steering Committee, as defined
below) from

                                       27
<PAGE>   29

each Party (the "System Committee"). The System Committee shall meet no less
often than on a quarterly basis and shall be charged with the following duties:
(a) overseeing roll-out process of the Systems, (b) overseeing Hardware upgrades
and replacements, (c) formulating, discussing and agreeing to Custom Software
Module requests, including the number of Service Hours to be used in designing
and delivering a Custom Software Module and whether any Proprietary Component of
a Custom Software Module or Licensee Confidential Information exists in a Custom
Software Module and issues relating to the acceptance of Custom Software Modules
and (d) except as otherwise provided in Section 4.1, resolving any and all
disputes between the Parties arising out of or in connection with this
Agreement. If the System Committee cannot resolve a dispute arising out of or in
connection with this Agreement, then such dispute shall be referred to their
respective officers designated below or their successors (such officers, along
with any duly-appointed additional members, comprising the "Steering
Committee"), for attempted resolution by good faith negotiations within thirty
(30) days after such notice is received:

          For NetGenics:            President
          For Licensee:             Senior Vice President - Discovery Research

Except for disputes arising under Section 4.1 of this Agreement, which are to be
resolved as provided therein, all such disputes which are not so resolved
between the Parties or the designated officers within such thirty day period
shall, be subject to litigation in a court with proper jurisdiction over the
parties.

10.11 CONFLICT. Each Party (the "Representing Party") represents and warrants to
the other Party that neither the execution nor delivery of this Agreement by the
other Party will conflict with or result in the breach of any material terms,
conditions or provisions of any agreement, contract or instrument to which the
Representing Party is a party or will result in the creation or imposition upon
or against the Representing Party of any claim, charge, encumbrance or
restriction of any nature whatsoever.

10.12 MOST FAVORED LICENSEE.

         (a) If during the term of this Agreement Licensor reduces its published
list prices then Licensor shall notify Licensee of such price reductions as they
become effective and Licensor shall extend any reduced price to Licensee.

         (b) Licensor shall, upon written request from Licensee (which request
shall be made no more than one (1) time per Calendar Quarter), provide to
Licensee terms (redacted to protect confidentiality of other licensees) of its
SYNERGY license agreements comprising (i) the number of Designated Locations and
License Type for each Designated Location, (ii) the number of Service Hours to
be provided, (iii) the Term of the agreement and (iv) the Fee. In the event that
Licensor extends to other licensees terms that are materially more favorable
than those extended to Licensee herein, Licensee

                                       28
<PAGE>   30

shall have the right to amend this Agreement to incorporate the terms of the
more favorable Agreement. Licensee shall have the right to request that an
independent auditor be employed, at the wrongful Party's expense, to certify
complete disclosure by Licensor pursuant to this Section 10.12 (b).

         (c) In the event that Licensee elects to exercise its rights under
Section 10.12 (b) of this Agreement, Licensee shall also be subject all other
material terms, as limited to and outlined in that Section 10.12 (b), that may
be less favorable than the terms of this Agreement. Any such election shall
remain in force for the remaining Term of this Agreement.

10.13 WAIVER. The failure of either Party to enforce at any time any of the
provisions of this Agreement, or the failure to require at any time performance
by the other Party of any of the provisions of this Agreement, shall in no way
be construed to be a present or future waiver of such provisions, nor in any way
affect the validity of either Party to enforce each and every such provision
thereafter. The express waiver by either Party of any provision, condition or
requirement of this Agreement shall not constitute a waiver of any future
obligation to comply with such provision, condition or requirement.

10.14 REMEDIES. All rights and remedies conferred upon a Party under this
Agreement or by any other instrument or law shall be cumulative and may be
exercised singularly or concurrently.

10.15 BINDING EFFECT. This Agreement shall be binding upon and inure to the
benefit of Licensor and Licensee and their respective successors and permitted
assigns.

10.16 RISK OF LOSS. Licensee assumes all risks of and shall be liable to
Licensor for loss or damage to the System while on the premises of or otherwise
in the possession or control of Licensee.

10.17 SURVIVAL. Notwithstanding the termination of this Agreement, by expiration
or otherwise, the following provisions shall survive such termination: 2.2, 2.3,
2.4, 7.1 through 7.4, inclusive, 8.2, 8.3, 10.1, 10.3, 10.4, 10.6, 10.8 through
10.19 and 10.22.

10.18 INJUNCTIVE RELIEF. Each Party acknowledges that because of the
confidential and proprietary nature of the System, the Licensee Software, the
Proprietary Components of Custom Software Modules, the Licensee Confidential
Information and the Licensor Confidential information, neither termination of
this Agreement nor an action at law would be an adequate remedy for a breach by
either Party of this Agreement. Accordingly, each Party agrees and consents that
in the event of such breach, in addition to all other remedies which such Party
may have, such Party shall be entitled to relief in equity, including a
temporary restraining order, temporary or preliminary injunction, and permanent
mandatory or prohibitory injunction to restrain the continuation of any such

                                       29
<PAGE>   31

breach or to compel compliance with the provisions of said sections without the
necessity of proof of actual damage.

10.19 INDEMNIFICATION. Except as provided in Sections 7.1 through 7.3 hereof and
below, Licensee shall indemnify and hold harmless Licensor, its agents,
employees, successors and assigns from and against any and all liabilities,
losses, damages, claims, suits and expenses, including, without limitation,
reasonable attorney's fees, of whatsoever kind and nature imposed on, incurred
by, or asserted against Licensor, its agents, employees, officers, directors,
stockholders, successors and assigns relating to or arising out of the
possession or use of the System by Licensee or any failure on the part of
Licensee to perform or comply with the terms and conditions of this Agreement.
Notwithstanding the foregoing, such indemnification shall not apply to any
claims for infringement or misappropriations of any patent or other intellectual
property rights by a third Party which arise of the marketing, development,
manufacture, delivery and license of the System by Licensor to customers such as
Licensee.

10.20 EXHIBITS AND SCHEDULES. Each reference in this Agreement to a Schedule or
Exhibit shall mean a Schedule or Exhibit attached to this Agreement and
incorporated into this Agreement by such reference.

10.21 PRESS RELEASES AND REFERENCES. Upon execution of this Agreement, Licensor
and Licensee agree to discuss in good faith the preparation of a joint press
release stating that the parties have entered into a software license and
service agreement; provided, however, that neither Party may disclose the terms
of this Agreement or the substance of any discussions between Licensor and
Licensee without the prior written consent of the other Party. Upon acceptance
of the System or Custom Software Module thereof by Licensee and satisfactory
performance of the same, as the case may be and as defined in Section 5.1(a) or
4.2(b), Licensee agrees, upon request of Licensor, to act as a reference for the
System and the Licensor. Such duties may include responding to (i) requests for
references by other potential Licensees of the System and (ii) interview
requests by Licensor, the press, business analysts or other parties with an
interest in the System. All responses shall be subject to the prior written
approval of Licensee, and such requests shall be reasonably considered and not
unreasonably denied.

10.22 CONFIDENTIAL INFORMATION. Licensor understands and agrees that Licensee
has developed and will develop scientific, technical, trade and/or business
information which is treated by Licensee as confidential, including, without
limitation, algorithms, gene expression information, genetic sequence data,
formulations, techniques, tests, data, know-how, Proprietary Components of
Custom Software Modules, and inventions, whether patentable or not ("Licensee
Confidential Information"). Licensee understands and agrees that Licensor has
developed and will develop scientific, technical, trade and/or business
information which is treated by Licensor as confidential, including, without
limitation, the System and all source and object code, test plans and data
related to the

                                       30
<PAGE>   32

System, customer and price lists, know-how, inventions, whether patentable or
not, and the terms of this Agreement. ("Licensor Confidential Information")

(a) Licensor agrees that Licensee is the sole owner of Licensee Confidential
Information. Licensor agrees to hold all Licensee Confidential Information in
confidence, to use it solely for the purposes authorized in this Agreement, and
to not disclose such Licensee Confidential Information to any third party,
except as required by order of a court of law or appropriate government agency.
All Proprietary Components of Custom Software Modules (as enumerated on Exhibit
D in accordance with Section 3.2 (e) herein), and Licensee Software, including
without limitation, Licensee-derived genetic sequence data, gene expression
information, formulations, novel proteins and protein utility data, shall in any
event be deemed to be Licensee Confidential Information. All other Licensee
Confidential Information, including Pharmaceutical Know-How, shall be marked
"confidential" and disclosed to Licensor in writing or, if disclosed orally or
visually to Licensor, reduced to writing and delivered to Licensor marked
"confidential".

(b) Licensee agrees that Licensor is the sole owner of Licensor Confidential
Information. Licensee agrees to hold all Licensor Confidential Information in
confidence, to use it solely for the purposes authorized under this Agreement
and not to disclose such Licensor Confidential Information to any third party,
except as required by order of a court of law or appropriate government agency.
The System and all source and object code test, plans and data related to the
System, and customer and price lists shall in any event be deemed to constitute
Licensor Confidential Information. All other Licensor Confidential Information
shall be marked "confidential" and disclosed to Licensee in writing or, if
disclosed orally or visually to Licensor, reduced to writing and delivered to
Licensee marked "confidential"; provided that Licensee may disclose Licensor
Confidential Information to third parties of Licensee who meet the
qualifications of a "User" as defined in Section 1.23 hereunder and who have
agreed to be bound by the terms of this Agreement.

Notwithstanding anything to the contrary contained in Sections 10.22 (a) or (b),
neither Licensee Confidential Information nor Licensor Confidential Information
shall include any information: (a) was in the public domain prior to the time of
disclosure to the receiving Party; (b) which, after disclosure, becomes part of
the public domain through publication or otherwise except by breach of this
obligation; (c) which was in the possession of the receiving Party prior to
disclosure by the disclosing Party; (d) which the receiving Party receives from
an independent third party which has the right to disclose it to the receiving
Party. The obligations of this Section 10.22 shall extend beyond any termination
of this Agreement for a period of five (5) years.

                  IN WITNESS WHEREOF, the parties have executed this Agreement
as of the date first above written.

                                       31
<PAGE>   33

LICENSOR:                                            LICENSEE:

NETGENICS, INC.                             AMERICAN HOME PRODUCTS CORPORATION

By:_/s/ Manuel J. Glynias                   By: /s/ Glenn Larsen
    -----------------------                    -----------------

Name: Manuel J. Glynias                     Name: Glenn Larsen, Ph.D.

Title: President and C.E.O.                 Title: Senior Vice President,
                                                   Discovery Research<PAGE>   1
                                                                    Exhibit 10.7

                                              NETGENICS, INC. HAS REQUESTED THAT
                                                     THE MARKED PORTIONS OF THIS
                                               DOCUMENT BE ACCORDED CONFIDENTIAL
                                                  TREATMENT PURSUANT TO RULE 406
                                                UNDER THE SECURITIES ACT OF 1933

                          NETGENICS INTERNATIONAL, LTD.
                          -----------------------------

                          SYNERGY(TM) SOFTWARE LICENSE
                          ----------------------------
                           AND SUBSCRIPTION AGREEMENT
                           --------------------------

This SYNERGY(TM) Software License and Subscription Agreement ("Agreement") is
entered into as of April 2, 1999 ("Effective Date"), by and between NetGenics
International, Ltd., an Ohio Limited Liability Corporation with offices at 1717
East Ninth Street, Suite 1600, Cleveland, Ohio 44114 ("NetGenics"), and Hoechst
Schering AgrEvo GmbH., a German corporation with offices at Miraustrasse 54,
Berlin, D-13509, Germany (Hoechst Schering AgrEvo GmbH and its Affiliates (as
defined below), collectively, shall be referred to herein as "Subscriber").

                                   W H E R E A S

         NetGenics has developed and owns certain interactive computer software
and hardware known as SYNERGYTM for use in the storage and analysis of research
data in a collaborative environment and provides certain services, including,
but not limited to, services to maintain and extend such software and hardware;
and

         NetGenics is willing to license the SYNERGY TM Software (as defined
below) and provide the Services (as defined below) to Subscriber upon and
subject to the terms and conditions of this Agreement; and Subscriber desires to
license such Software and to obtain such Services upon such terms and
conditions.

         NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows.

1. DEFINITIONS The following terms, when used herein with initial capital
letters, shall have the respective meanings set forth in this Article 1.

         1.1 "Affiliate", as used herein, shall mean any corporation or other
business entity controlling, controlled by, or under common control with Hoechst
Schering AgrEvo,

<PAGE>   2

GmbH.; as used herein, the term "control" means the direct or indirect ownership
of at least fifty percent (50%) of the voting shares/stock of a company, or the
power to nominate at least half of the directors, or the power otherwise to
determine the policy and direction of a company or organization.

         1.2 "Confidential Information" shall mean that information which is not
generally known to the public or which would constitute a trade secret under the
United States Uniform Trade Secrets Act and which is owned, developed or
acquired by the disclosing party including, without limitation, all programming,
systems and use documentation (including, without limitation, any of the
foregoing as may be embodied in the Licensed Program, the Development System and
Documentation), customer lists, pricing information, technical information,
technology, formulae, information, designs, ideas, inventions, data, data
formats and files, know-how, techniques, sequences, methods, genes, gene
functions, plasmids, proteins, plants, parts of plants, seeds and other
biological or non-biological material, terms of this Agreement, and all copies
and tangible embodiments thereof; provided, however, that any of the foregoing
shall not be considered Confidential Information if it: (i) becomes publicly
known through no wrongful act or breach of any obligation of confidentiality on
the receiving party's or any third party's part; (ii) was in the lawful
knowledge and possession of, or was independently developed by, the receiving
party prior to the time it was disclosed to, or learned by, the receiving party
as evidenced by written records kept in the ordinary course of business by the
receiving party or by written or other documentary proof of actual use by the
receiving party; (iii) was received from a third party not in violation of any
contractual, legal or fiduciary obligation by such third party; or (iv) was
approved for public release by prior written authorization by the disclosing
party.

         1.3 "Designated Location" shall mean the location or locations set
forth on EXHIBIT C, attached hereto, as amended from time to time by the
parties.

         1.4 "Development System" shall mean hardware and software provided or
approved by NetGenics to Subscriber at a Designated Location solely for the
purpose of development of Subscriber Software. A Development System shall not
include Services as described in Article 6 of this Agreement.

         1.5 "Documentation" shall mean the SYNERGY(TM) user and developer
training manuals, release notes and help documentation, as well as documentation
relating to the Integrated Software (as same may be requested by Subscriber), as
same may be modified from time to time, including, without limitation,
modifications and enhancements thereto, owned by or licensed to NetGenics.

         1.6 "Hardware" shall mean the computer hardware and Integrated Software
necessary to the operation of the Product, provided by NetGenics as a part of
the Subscription, and only insofar as it relates to the software set forth on
Exhibit B, as same may be amended from time to time as needed. Hardware shall
not include any specialty

                                       2
<PAGE>   3

or computational hardware necessary to run Third Party Software, unless mutually
agreed.

         1.7 "Integrated Software" shall mean software that is provided by
NetGenics, on behalf of a third party, and integrated as a part of the Software
or Hardware (as defined on Exhibits A and B). Integrated Software shall not
include any software that requires Subscriber to execute a separate agreement
with any third party, in order to be used as a part of the Product. Integrated
Software shall not include Third Party Software.

         1.8 "Licensed Program" shall mean the Software and Object Code versions
of other Integrated Software programs provided by NetGenics which are used in
conjunction with the Software to perform certain functions as described in the
Documentation and on EXHIBIT A, attached hereto.

         1.9 "Object Code" shall mean the machine readable computer software
code substantially in binary form and which is directly executable by a computer
after processing, but without compilation or assembly.

         1.10 "Product" shall mean the Licensed Program, the Hardware, and the
Documentation.

         1.11 "Services" shall mean all training, software planning and design,
data conversion, support, quality assurance testing, remote monitoring,
telephone and e-mail support services, on-site monitoring and customization
services provided by or on behalf of NetGenics to Subscriber pursuant to this
Agreement.

         1.12 "Service Hours" shall mean the applicable number of hours of
training, software planning and design, data conversion, support services,
quality assurance testing, on-site monitoring services, if any, and all
customization services provided by NetGenics to Subscriber, including any
associated preparation, follow-up and travel time (from NetGenics' London (UK)
office) for activities enumerated on EXHIBIT G.

         1.13 "Software" shall mean the Object Code versions of SYNERGY(TM)
including, without limitation, all modifications and enhancements thereto, as
further described on EXHIBIT A, attached hereto and as same may be modified from
time to time, which have been, or may be, developed, and are owned, by
NetGenics. Software does not include other third party software programs
provided by NetGenics and incorporated as part of the Licensed Program. Software
may include methods, routines or interfaces to Third Party Software (defined in
Section 1.18), but does not include Third Party Software itself.

         1.14 "Source Code" shall mean computer software code displayed in a
form readable and understandable by a programmer of ordinary skill.

                                       3
<PAGE>   4

         1.15 "Subscriber Know-How" shall mean concepts, methods, techniques,
data, know-how, compounds, compositions of matter, ideas and inventions,
developed by or on behalf of Subscriber during the term of this Agreement, and
which provides a distinct competitive advantage to Subscriber. Subscriber
Know-How shall not include any information which (a) is in the public domain,
(b) becomes part of the public domain through publication or otherwise except by
breach of this Agreement, (c) was in the possession of NetGenics prior to
disclosure by Subscriber, (d) is received from an independent third party which
has the right to disclose it, or (e) is developed by NetGenics independent of
any disclosure by Subscriber.

         1.16 "Subscriber Software" shall mean software, if any, developed by or
on behalf of Subscriber by a third party and incorporated or integrated into the
Licensed Program in accordance with NetGenics' Subscriber Software development
guidelines described in Section 7.3 and set forth as part of the Documentation
as needed. Notwithstanding the foregoing, no software produced by Subscriber
shall be considered Subscriber Software, if such software functions
independently of the Product.

         1.17 "Subscription" shall mean the Product, any elected Development
System, and the Services, installed at a Designated Location.

         1.18 "Third Party Software" shall mean that software not manufactured
by NetGenics, but which is used in conjunction with the Licensed Program.
Subscriber may be required to license Third Party Software under separate
agreements with the owner of such Third Party Software, in accordance with
Article 4 of this Agreement.

         1.19 "User" shall mean a user of the Product who is an employee of
Subscriber, or a collaborator, consultant, agent or contractor of Subscriber who
works principally from a Designated Location, as well as an employee of
Subscriber engaged in work for Subscriber in the Domain Area (as defined in
Section 5.1) other than at a Designated Location; provided, that Subscriber
shall provide written notice to NetGenics of all such Users, which notice shall
contain the name, Domain Area, and location of such User. Notwithstanding the
foregoing, no non-employee of Subscriber shall be considered a User, as defined
in this Section 1.19, unless Subscriber has obtained written agreement from any
such non-employee to abide by all provisions contained in this Agreement, with
special consideration to the covenants of confidentiality as described in
Section 5.5 of this Agreement. The number of Users which shall be allowed to
access the Product shall be the number specified in EXHIBIT C of this Agreement.
The system administrator shall not be considered a User.

                                       4
<PAGE>   5

2. DELIVERY AND INSTALLATION; ACCEPTANCE PROCEDURES
   ------------------------------------------------

        2.1 NetGenics shall deliver and install the Product at each Designated
Location by a date to be mutually agreed upon by the parties. Such installation
with respect to the Product shall be accepted if (i) NetGenics has delivered an
installation notice to Subscriber, (ii) Subscriber does not give notice of
non-acceptance within sixty (60) days of such installation notice, (iii)
Subscriber does not terminate this Agreement, pursuant to Section 2.3 below and
(iv) the Licensed Program performs in accordance with the Documentation provided
by NetGenics and any mutually-agreed applicable acceptance plan at the
Designated Location(s).

        2.2 As a condition to NetGenics performing its obligations as set forth
in Section 2.1, Subscriber shall cooperate with NetGenics in the installation of
the Licensed Program and shall perform its responsibilities necessary for such
installation in a timely manner.

        2.3 NetGenics shall provide the Subscription to Subscriber, at no
charge, for a period of thirty (30) days from the initial installation at the
first Designated Location and delivery of an installation notice. If, during the
initial thirty (30) day period, Subscriber finds the Subscription to be
unacceptable for any reason, Subscriber may terminate this Agreement and incur
no expense nor further obligation pursuant thereto. Should Subscriber elect to
terminate this Agreement, for any reason, during the thirty (30) day period
immediately following the above-referenced no-charge trial period, Subscriber
may do so upon payment of a consideration equivalent to one month's Fees as
described in EXHIBIT C (and appropriately pro-rated, if necessary). Subscriber
shall bear no further obligation to NetGenics upon termination (excepting
reasonable cooperation in any necessary recovery of NetGenics property) as
described in this Section 2.3. Should Product be inoperable for periods of time
during the trial period described in this Section 2.3 for reasons not the
responsibility of Subscriber, such trial period shall be lengthened accordingly
to compensate for any such period of inoperability.

3. HARDWARE
   --------

        3.1 NetGenics will provide, as part of the Subscription, the necessary
Hardware to be used by the Licensed Program from NetGenics. NetGenics will
provide Services for the Hardware, as needed, to ensure proper function of the
Product, and reserves the right to interrupt the operation of the Product for
the performance of regular maintenance, at mutually-agreed scheduled times and
with notice to Subscriber. NetGenics reserves the right to substitute the
Hardware with functionally equivalent or superior Hardware upon no less than
forty-five (45) days' written notice to Subscriber, and at no additional cost to
Subscriber.

        3.2 Representations, warranties, guarantees, covenants or agreements, if
any, as to any Hardware supplied by NetGenics are those granted directly by the
manufacturer(s)

                                       5
<PAGE>   6

of such Hardware to its customers, and are attached hereto as EXHIBIT H.
NetGenics hereby agrees to take any action as may be reasonable to permit
Subscriber to obtain the benefit of such warranties. NETGENICS MAKES NO
REPRESENTATIONS OR WARRANTIES AS TO ANY HARDWARE PROVIDED BY NETGENICS TO
SUBSCRIBER, INCLUDING, WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY
AND FITNESS FOR A PARTICULAR PURPOSE.

4. THIRD PARTY SOFTWARE
   --------------------

         4.1 At Subscriber's request, NetGenics, from time to time, may provide
Subscriber access to certain Third Party Software for use in connection with the
Subscription. Should Subscriber elect to access such Third Party Software,
Subscriber shall be obligated to obtain and maintain licenses to such Third
Party Software for the term of this Agreement.

         4.2 Representations, warranties, guarantees, covenants or agreements,
if any, as to the Third Party Software are those granted directly by the
manufacturer(s) of the Third Party Software to such users of the Third Party
Software. NETGENICS MAKES NO REPRESENTATIONS OR WARRANTIES AS TO THE THIRD PARTY
SOFTWARE, INCLUDING, WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY
AND FITNESS FOR A PARTICULAR PURPOSE.

5. LICENSE
   -------

         5.1 Subject to the terms and conditions of this Agreement, NetGenics
hereby grants to Subscriber a non-exclusive, non-transferable right and license
solely to use the Product at the Designated Location(s) for its internal Crop
Science (the "Domain Area(s)") research and development purposes for the Term
(as defined herein) of this Agreement. Additionally, Subscriber may allow access
to the Product to no more than six (6) Users at a location other than a
Designated Location, upon appropriate notice to NetGenics not to exceed,
however, the total Users as set forth in EXHIBIT C.

         5.2 Subscriber agrees that it will certify to NetGenics, in writing, by
January first, April first, July first and October first (each a calendar
quarter) of each year any substantive changes (e.g. number of Users, network
configuration, etc.) in the existing Designated Locations. Subscriber agrees
that it will make its records available to NetGenics or its appointed agent at
reasonable times and upon reasonable notice for NetGenics to verify any such
certifications or locations. In the event an appointed agent is used for such
verification, such agent must agree in writing to Subscriber's standard
confidentiality agreement, prior to commencement of any verification activities.

         5.3 Except as set forth in Section 5.1, Subscriber shall have no right
or license to do any of the following: (i) sublicense the Product or any portion
thereof; (ii) print, copy, reproduce, distribute, modify, transfer (whether
physically or electronically), assign

                                       6
<PAGE>   7

(except as set forth in Section 16.3) or in any other manner duplicate the
Licensed Program or Documentation, in whole or in part except that Subscriber
may retain one (1) tape back-up copy on the Hardware as provided by NetGenics
for disaster recovery only; (iii) allow more than the number of Users set forth
on EXHIBIT C to use the Subscription at a Designated Location (iv) permit the
use by or for the benefit of any non-Affiliate, non Domain-Area third party
(except as set in (vi) forth below) of the Subscription; (v) decompile,
disassemble or otherwise reverse engineer the Product or any part thereof
(except in cases where NetGenics has not fulfilled its obligations under Section
7.3 (a) herein); (vi) use the Subscription other than for the internal
information processing needs of Subscriber in connection with the storage and
analysis of its research data (in the Domain Area(s) specified in Section 5.1)
in a collaborative environment (provided, that the internal information
processing needs of Subscriber may include research activities of Subscriber
which are or may be performed in conjunction with third-party research or
corporate collaborators, so long as members of such research or corporate
collaborators are not provided access to the Software, any Development System or
the Licensed Program, without the prior written consent of NetGenics, which
consent shall not be unreasonably withheld, but which consent may require
written proof of compliance with the provisions of Section 5.5 of this
Agreement) or (vii) provide access to the Product to more than six (6) Users at
any location other than a Designated Location. In addition, except pursuant to
Section 11, Subscriber shall have no right to obtain or use the Source Code for
any Licensed Program.

         5.4 All right, title and interest in and to the Software and
Documentation shall at all times be solely vested in NetGenics. All right, title
and interest in and to the third party software programs licensed to NetGenics
as part of the Licensed Program or Hardware shall at all times be solely vested
in the owner(s) of such software program(s). No rights or licenses, express or
implied, other than those granted in Section 5.1 hereof are granted by this
Agreement.

         5.5 Subscriber shall keep confidential and not disclose or permit
access to the Subscription or Subscriber Software, except as provided in this
Section 5.5. Subscriber shall use the Subscription only for purposes consistent
with the terms of this Agreement. Subscriber shall advise its employees,
Affiliates, collaborators, consultants, agents and contractors of the
confidential and proprietary nature of the Subscription, and of the restrictions
imposed by this Agreement, and shall: (i) obtain from any and all non-employees
of Subscriber who are provided access to the Subscription (regardless of whether
such non-employees are otherwise deemed Users under this Agreement) their
written agreement to comply with the obligations of Subscriber under this
Agreement, (ii) be responsible for any breach of such agreement by any User, and
(iii) use its best efforts to ensure that no unauthorized person has access to
the Licensed Program and that those persons who are granted access to the
Licensed Program protect such Confidential Information in accordance with the
terms of this Agreement.

                                       7
<PAGE>   8

         5.6 Subscriber shall notify NetGenics immediately of its knowledge of
the possession, use, or knowledge of any portion of the Subscription by any
person or entity not authorized by this Agreement to have such possession, use
or knowledge. Subscriber shall (i) promptly furnish to NetGenics full details of
such possession, use or knowledge; (ii) assist NetGenics (at no expense to
NetGenics) in stopping and preventing the recurrence of such possession, use or
knowledge; (iii) in the event such unauthorized possession, use or knowledge of
the Subscription is the result of a breach of Section 5.5 (ii) above, shall
provide cooperation to NetGenics in any and all litigation deemed necessary to
protect the Subscription and (iv) in any other event, reasonably consider
cooperation with NetGenics in any litigation deemed necessary by NetGenics to
protect the Subscription, such cooperation not to be unreasonably withheld.
Compliance by Subscriber with this Section 5.6 shall not be construed as a
waiver of any right of NetGenics to recover damages or obtain other relief
against Subscriber in connection with any such unauthorized possession, use or
knowledge.

         5.7 NetGenics shall be entitled to audit Subscriber's use of the
Subscription for compliance with the terms and conditions of this Agreement
(either directly or through independent outside auditors or representatives) at
mutually-agreed times (but no more often than two (2) times during any calendar
year), during the term of this Agreement and for one (1) year after the
termination of this Agreement. NetGenics shall not unreasonably interfere with
Subscriber's business operations during any such audit, and Subscriber shall
provide such cooperation as NetGenics may reasonably request in connection with
any such audit. In the event NetGenics elects to employ independent parties in
the conduct of activities anticipated by this Section 5.7, such independent
parties shall agree to be bound by Subscriber's standard confidentiality
agreements.

         5.8 Subscriber and NetGenics acknowledge that the performance of this
Agreement may result in the development of new concepts, methods, techniques,
data, know-how, processes, adaptations, ideas and expressions of ideas.

               (a) Subscriber Know-How developed by or on behalf of Subscriber
shall be and remain the exclusive property of Subscriber. NetGenics shall have
no right and no title or ownership of any component or manifestation of any such
Subscriber Know-How or resulting Domain Area product developed by or on behalf
of Subscriber. All rights in such Subscriber Know-How or resulting Domain Area
products are and shall remain the exclusive property of Subscriber. Concepts,
methods, techniques, data, know-how, processes, adaptations, ideas and
expressions of ideas relating to Subscriber Software shall be and shall remain
the exclusive property of Subscriber; provided, that such concepts, methods,
techniques, know-how, processes, adaptations, ideas and expressions of ideas
relating to the Subscriber Software that contain NetGenics Confidential
Information may only be used by Subscriber in connection with the Licensed
Program. Subscriber agrees not to pursue or assign patent protection to
Subscriber Software. Provided that Subscriber is contractually entitled to do
so, Subscriber hereby grants to NetGenics a non-exclusive, nontransferable right
to use Subscriber Software at the

                                       8
<PAGE>   9

Designated Location(s) solely for purposes of providing support to Subscriber
relating to the Licensed Programs pursuant to this Agreement and performing the
other obligations required to be performed by NetGenics pursuant to this
Agreement.

               (b) Concepts, methods, techniques, know-how, processes,
adaptations, ideas and expressions of ideas relating to the Subscription and any
to custom software modules (excluding Subscriber Know-How) shall be and shall
remain the exclusive property of NetGenics.

         5.9 Subscriber may, at any time during the Term of this Agreement,
upgrade the License type from a Small License to a Medium or a Large License, or
from a Medium License to a Large License (each as described on EXHIBIT C) upon
thirty (30) days written notice. The number of Users, Service Hours, and the
Fees for the upgraded License Type shall become effective as of thirty (30) days
from receipt of notice, and shall continue in force for the remainder of the
Term of this Agreement. Should additional Designated Locations be added to this
Agreement, pursuant to Sections 5.10 or 5.11 below, subsequent upgrade of a
License type shall entitle Subscriber to the discounted Fees as set forth in
those Sections.

         5.10 During the Term of this Agreement, Subscriber may add one
additional Designated Location to this Agreement, upon no less than thirty (30)
days written notice. The Fees for the two Designated Locations shall be as
designated herein below with respect to the Fees set forth on EXHIBIT C. The
Designated Location shall be installed as mutually agreed between the parties
but at no additional cost to Subscriber. No more than one additional site may be
added to the Agreement under the provisions of this Section 5.10:

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         5.11 During the initial eighteen (18) months following the Effective
Date, Subscriber may add additional Designated Locations(s) (beyond the second
Designated Location as provided in Section 5.10 above), upon no less than thirty
(30) days' written notice and according to the following Fees:

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CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.  ASTERISKS DENOTE SUCH OMISSIONS.
<PAGE>   10

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         5.12 Subscriber may, upon no less than thirty (30) days notice to
NetGenics, downgrade the License type at a Designated Location from a Large
License to a Medium or a Small License, or from a Medium to a Small License,
each as defined on, and at the Fees set forth on, EXHIBIT C. Any discounts
otherwise associated with multiple Licenses, as described in Section 5.10 or
5.11, shall not extend to any License downgraded pursuant to this Section 5.12.

         5.13 Subscriber may, upon no less than ninety (90) days' written
notice, terminate a Designated Location, (added pursuant to Sections 5.10 or
5.11 above) from this Agreement. Termination of a Designated Location pursuant
to this Section 5.13 shall affect the Fees as follows: for each License at a
Designated Location terminated according to this Section 5.13, any discount in
the Fees (as otherwise provided under Section 5.10 or 5.11) for the smallest
remaining License shall be forfeited for the remaining Term. Notwithstanding the
foregoing, should termination of a Designated Location be accompanied by a
License upgrade (as set forth in Section 5.9 herein) at one of the remaining
Designated Locations, then the Fees schedules set forth in Sections 5.10 or 5.11
(as appropriate) shall apply as written. All termination provisions set forth in
Section 13.5 of this Agreement shall apply to any Designated Location terminated
according to this Section 5.13. Should Subscriber terminate a Designated
Location upon less than ninety (90) days' written notice, then Subscriber shall
pay consideration to NetGenics equal to one calendar quarter's Fees for that
Designated Location.

6. SUPPORT SERVICES
   ----------------

         6.1 Subscriber shall be entitled to receive Services from NetGenics
during the term of this Agreement as described below. Services provided pursuant
to this Section 6.1 shall not reduce the number of Service Hours available to
Subscriber for a particular calendar quarter, except as expressly noted herein:

               (a) NetGenics shall provide to Subscriber unlimited remote
consultation regarding the Product, comprised of support, problem determination
and resolution Service by telephone and electronic mail (as described in EXHIBIT
F) 24 hours per day, seven days per week. Such remote consultation shall not be
charged against Subscriber's Service Hours.

               (b) Subscriber shall provide NetGenics remote access to the
Product, at no charge to Service Hours, for any and all purposes relating to the
obligations to be performed by NetGenics pursuant to this Agreement, including,
but not limited to, for

                                       10

CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.  ASTERISKS DENOTE SUCH OMISSIONS.
<PAGE>   11

purposes of monitoring the performance and integrity of the Licensed Program or
the Hardware and for problem determination and resolution and for other purposes
consistent with the terms of this Agreement; provided, however, that Subscriber,
at its option, may reasonably limit the duration and timing of such access or
may require that NetGenics perform such Services on-site at a Designated
Location pursuant to Section 6.2 (c). Material costs associated with such remote
access (including, but not limited to, telecom, network, or equipment fees),
shall be borne by Subscriber

         (c) All requests by Subscriber for support shall be made by way of
designated methods (as described in EXHIBIT F) to NetGenics' client services
group and NetGenics shall respond to same according to the escalation procedures
set forth on EXHIBIT F.

         (d) Upon the initial installation and acceptance by Subscriber of the
Licensed Program as provided in Section 2, NetGenics shall provide two (2) days
of on-site end-user training to Subscriber at a Designated Location at no
additional charge to Subscriber. Additional training beyond the initial two (2)
days of training described above shall be deducted from the Service Hours as set
forth in EXHIBIT G, or, if Subscriber has utilized all Service Hours for that
calendar quarter, shall be charged to Subscriber at NetGenics' standard billing
rates then in effect.

         (e) As a part of the installation, NetGenics shall install one Object
Request Broker (ORB) on one computational server at Subscriber's Designated
Location at no cost to Subscriber's Service Hours.

     6.2 Subscriber is entitled to receive from NetGenics the number of Service
Hours per calendar year as set forth in EXHIBIT C. This Section 6.2 and EXHIBIT
G attached hereto sets forth the manner in which Service Hours may be used by
Subscriber. Any unused Service Hours at the end of a calendar year shall be
forfeited and canceled.

         (a) Upon receipt of reasonable advance notice from Subscriber,
NetGenics shall use commercially reasonable efforts to provide Subscriber with
on-site support Services, and the number of Service Hours shall be deducted from
the Service Hours available to Subscriber in exchange for such on-site Services,
as provided in EXHIBIT G attached hereto.

         (b) Subscriber shall request Services (including, but not limited to,
development of custom software modules) from NetGenics by completing the form
attached hereto as EXHIBIT D, detailing the Services requested. NetGenics shall
determine the amount and type of Services required, and the schedule for such
Services and forward to Subscriber a response in the form of a statement of
Services, on EXHIBIT E attached hereto. After Subscriber's review and approval
in writing of the statement of Services covering a Services project, NetGenics
shall perform the Services. During a Services project, the number of Service
Hours set forth in the statement of Services shall be

                                       11
<PAGE>   12

deducted from those available to Subscriber under this Agreement. Payment for
Services provided by NetGenics on a Services project in excess of such available
Service Hours shall be based on the hourly rates of NetGenics in effect at the
time such Services are provided. Hourly rates for such Services are detailed on
EXHIBIT I, which may be changed, from time to time, upon written notice to
Subscriber. The number of Service Hours deemed to be used for any Service
request shall be the number specified in the statement of Services to Subscriber
prior to the commencement of such Services. Should such Services include the
design and development of custom software modules, such Services shall be
performed according to the procedure in Sections 7.1 and 7.2 of this Agreement.

         (c) In the event Subscriber requests that NetGenics provide on-site
monitoring in lieu of remote site support otherwise available under Section
6.1(b) of this Agreement, Subscriber shall be charged Service Hours each
calendar quarter for such on-site monitoring as set forth in EXHIBIT G.

         (d) Service Hours will be accounted for on a calendar quarter basis and
NetGenics shall provide Subscriber with monthly cumulative reports during each
calendar quarter detailing projects for which Service Hours were used and the
number of Service Hours used. Once Subscriber has exhausted its Service Hours
for any calendar year, Subscriber shall be charged for any such additional
Services at NetGenics' standard billing rates then in effect, in addition to all
out-of-pocket expenses incurred by NetGenics in connection therewith as
described in Section 10.2.

         (e) Except as provided in Section 10.2 and EXHIBIT G of this Agreement,
each party shall bear its own travel expenses related to the performance of this
Agreement.

         (f) NetGenics acknowledges that Subscriber may request Services which
relate to the integration of the Licensed Program with Third Party Software or
to creating interfaces between the Licensed Program and other CORBA-based
systems. NetGenics shall use best commercial efforts to deliver such Services to
Subscriber, pursuant to this Section 6.2 and Article 7 herein. Notwithstanding
the foregoing, any delivery of Services which involve any Third Party Software
or CORBA-based systems shall be dependent upon the cooperation and timely
disclosure of requested and necessary technical information from the owner(s) of
any such Third Party Software or CORBA-based systems and shall not require
NetGenics to disclose its Confidential Information to any third party which
NetGenics, in its sole estimation, deems to be competitive with its business.
Subscriber agrees to provide reasonable assistance to NetGenics in the
attainment of such cooperation and technical information as might be required by
NetGenics in conjunction with the delivery of such requested Services.

         (g) NetGenics shall be obligated to provide disaster recover/restore
Services to Subscriber, in the event a full system restore is needed. Unless
such restore

                                       12
<PAGE>   13

Services are directly caused by defects otherwise covered under Warranty,
Subscriber shall incur charges to Service Hours for such Services.

         6.3 NetGenics shall deliver Service Hours to Subscriber as
mutually-agreed in the System Committee; provided, however, that NetGenics shall
not be obligated to provide Service Hours during any one calendar quarter in
excess of one half (1/2) the total number of service hours allotted for one
calendar year.

         6.4 As soon as reasonably practicable after the Effective Date, the
parties shall form a committee comprised of no more than three (3)
representatives from each party (the "System Committee"). The System Committee
shall meet no less often than on a quarterly basis (with the venue alternating
between a Subscriber Designated Location and a NetGenics location, unless
otherwise mutually agreed) and shall be charged with the following duties: (a)
coordinating the installation of the Product and the training as provided in
Section 6.1(d) above, (b) overseeing Hardware upgrades and replacements, (c)
formulating, discussing and agreeing to Service requests, including the number
of Service Hours to be used in designing and delivering custom software and
whether any Subscriber Know-How exists in custom software requested by
Subscriber and issues relating to the acceptance of custom software and (d)
except as otherwise provided in Section 7.2 (b), resolving disputes between the
parties arising out of or in connection with this Agreement.

7. CUSTOMIZATION METHODOLOGY
   -------------------------

         7.1 (a) If Subscriber desires that the Licensed Program be modified,
customized or adapted in any respect to suit Subscriber's specific requirements
through the development of custom software modules, Subscriber shall deliver to
NetGenics written notice thereof, in the form of EXHIBIT D, specifying
Subscriber's requirements in as much detail as possible. Upon receipt of such
notice, NetGenics and Subscriber shall cooperate in good faith to agree upon the
scope of such Services, detailed requirements, high-level design, the timetable
for development and implementation and cost (or Service Hours) therefor;
provided, however, that nothing in this Agreement shall be deemed to (i)
obligate NetGenics to perform any Services in excess of those available by way
of Subscriber's then available Service Hours or (ii) provide Services related to
custom software modules deemed by NetGenics, in its sole discretion, to be
unfeasible. Such agreement shall be set forth in writing, referencing this
Agreement, and shall be incorporated herein as EXHIBIT E.

            (b) To the extent the number of Service Hours that NetGenics
estimates will be required to complete a custom software module, as specified in
the aforementioned, mutually agreed development schedule during a calendar year
exceeds Subscriber's then-unused Service Hours for such calendar year, such
customization Services shall be charged to Subscriber at NetGenics' standard
billing rates then in effect.

                                       13
<PAGE>   14

            (c) Subject to the limitations set forth in Section 14 hereto,
NetGenics warrants that a custom software module, once completed and accepted by
Subscriber in accordance with the terms hereof, shall perform in all material
respects in accordance with the established, mutually-agreed detailed
requirements specified on EXHIBIT E.

            (d) Subscriber and NetGenics acknowledge that a custom software
module may contain Subscriber Know-How. In the event Subscriber seeks to
designate part of a custom software module as Subscriber Know-How, Subscriber
shall inform NetGenics of same in writing as a part of EXHIBIT D, and NetGenics
and Subscriber shall jointly agree on the scope of such Subscriber Know-How, and
the extent to which such Subscriber Know-How (i) is necessary to the custom
software module, (ii) does not contain NetGenics Confidential Information, and
(iii) provides competitive advantage to Subscriber, and shall designate same on
EXHIBIT E. NetGenics shall not re-use or incorporate such Subscriber Know-How in
the design or development of any custom software module for any third-party
subscriber of the Software. Notwithstanding the foregoing, NetGenics shall not
be restricted in providing any custom software module to any third party
subscriber which (A) does not contain Subscriber Know-How, or (B) is designed by
NetGenics according to such third party's independent specifications. Service
Hours charged for such customer software modules may be adjusted to reflect lack
of re-use by NetGenics. The System Committee (defined in Section 6.4) shall
determine the scope of Subscriber Know-How and shall resolve any disputes
relating to Service Hours charged for Customer Software Modules.

     7.2 (a) NetGenics shall use commercially reasonable efforts to install
custom software modules in accordance with the schedule set forth in the
completed EXHIBIT E, subject to Subscriber performing its obligations under this
Agreement and providing such cooperation as NetGenics may reasonably request to
facilitate such installation. Such installation with respect to any custom
software module shall be deemed complete upon written notice from NetGenics to
Subscriber.

            (b) Subscriber shall be deemed to have accepted a custom software
module with respect to which any installation notice has been provided by
NetGenics unless (i) such installed custom software module materially fails to
conform to the specifications as set forth on EXHIBIT E therefor, (ii)
Subscriber gives notice of nonacceptance to NetGenics within thirty (30) days
after the date of such installation notice, and (iii) any such notice of
non-acceptance states specifically with respect to such installed custom
software module, the custom software specifications to which such installed
custom software module fails to conform with sufficient specificity to permit
NetGenics to correct such nonconformity. NetGenics shall use commercially
reasonable efforts to correct any nonconformity found to exist and notify
Subscriber in writing upon the completion of such correction. If NetGenics is
unable to make such corrections, Subscriber's remedy shall be limited, at
NetGenics' sole discretion, to correction of the nonconforming portion of the
custom software

                                       14
<PAGE>   15

module or return of the custom software module to NetGenics and the crediting of
expended Service Hours. Subscriber shall cooperate with NetGenics in correcting
such nonconformity.

         7.3 Prior to developing any module of Subscriber Software to be covered
by the warranty provisions of Section 14, Subscriber shall have: (a) received
from NetGenics a current copy of any applicable Subscriber Software development
guidelines as described and updated from time to time on the Documentation and
covering such module, (b) submitted a proposal to NetGenics for approval
describing the methodology, specifications and timetable of such Subscriber
Software module, and (c) received NetGenics' written approval for the
development of such Subscriber Software. Subscriber hereby agrees to develop
Subscriber Software modules only in conjunction with a Development System, and
in accordance with the Subscriber Software development guidelines covering such
module. Upon completion of Subscriber Software, Subscriber shall submit
completed Subscriber Software to NetGenics for quality assurance testing, and
shall not install any such Subscriber Software on the Product until NetGenics
has completed such quality assurance testing and provided final approval to
Subscriber. All NetGenics activities under this Section 7.3 shall be charged
against Subscriber's then-available Service Hours, under guidelines as set forth
in EXHIBIT G attached hereto. Subscriber Software developed other than in
accordance with all provisions of this Section 7.3 herein shall void any
warranty rights.

8. SUBSCRIBER RESPONSIBILITIES
   ---------------------------

         8.1 The obligation of NetGenics to perform under this Agreement is
contingent upon Subscriber providing such cooperation as NetGenics may
reasonably request including, but not limited to, providing or performing the
following:

            (a) Sufficient and appropriate physical space for the Hardware at
each Designated Location, in a controlled area such as a data center or computer
room, where the hardware is physically secured and environmentally controlled;

            (b) Electrical power source in close proximity to the location of
the hardware;

            (c) Physical connection to Subscriber's network, firewall or gateway
(as applicable), in proximity to the location of the hardware;

            (d) Technical information regarding the addressing and configuration
of Subscriber's DNS (Domain Name Services) and electronic mail servers
sufficient to allow NetGenics' server to communicate with Subscriber's servers;

            (e) A minimum of two (2) valid network names (host, node or machine
names) per Designated Location and their associated Internet Protocol addresses;
and

                                       15
<PAGE>   16

            (f) Reasonable assistance of Subscriber's personnel.

            (g) Reasonable assistance and cooperation in the provision of
requested Support Services, as well as other activities within the scope of this
Agreement, for the term of the Agreement.

     8.2 It shall be understood by the parties that all Product(s) are intended
to be installed at their respective Designated Location(s) as mutually agreed,
and that Subscriber shall have all necessary facilities available for
installation and acceptance as agreed.

9. SUBSCRIPTION RELEASES
   ---------------------

     9.1 Subject to the provisions of Section 9.3 below, standard upgrades made
by NetGenics to the Subscription (such upgrades "Subscription Releases") at any
time during the term of this Agreement will be offered to Subscriber at no
additional charge.

     9.2 If any standard upgrades made to any of the Third Party Software by
their respective owners at any time during the term of this Agreement are
necessary for the Product's continued maintenance, then, at Subscriber's option,
it may purchase such upgrade from the Third Party Software vendor or, if
available, from NetGenics at NetGenics' then current prices. These upgrades
shall be installed at the Designated Location. Subscriber will be responsible
for the cost of the installation of any such upgrades (or if Service Hours are
available, such hours will count against the Service Hours) at NetGenics' then
current hourly rates. Failure by Subscriber to purchase such upgrades as are
identified by NetGenics as essential to the Subscription's continued maintenance
may result in Subscriber forfeiting its rights to receive future Subscription
Releases.

     9.3 NetGenics shall furnish the number of full sets of Documentation as
designated in EXHIBIT C for each Designated Location, at no charge to
Subscriber. NetGenics shall provide such updates to the furnished Documentation
as are necessary, in conjunction with Subscription Releases. NetGenics shall, at
Subscriber's request and at NetGenics' then current published prices, furnish
additional sets of the Documentation, together with any revisions therein or
additions thereto.

10. FEES
    ----

     10.1 Unless this Agreement is terminated pursuant to Section 2.3,
Subscriber shall pay to NetGenics consideration (the "Fee") in the amount of
[******] per year, to be paid on a quarterly basis, with the first payment of
[******] to be made within thirty (30) days after the delivery of an invoice,
prorated for any partial calendar quarter and for the no-charge trial period
described in Section 2.3, and with Service Hours for that calendar quarter
similarly prorated. Each subsequent payment of [******] shall be made no later

                                       16

CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.  ASTERISKS DENOTE SUCH OMISSIONS.
<PAGE>   17

than five (5) days after the beginning of the calendar quarter for which payment
is due. The Fee as set forth in this Section 10.1 may be changed to reflect
changes in the Designated Location(s) pursuant to Sections 5.9 through 5.13 of
this Agreement, and as amended on EXHIBIT C.

     10.2 If Subscriber has exhausted its available Service Hours for any
applicable calendar year, Subscriber shall pay to NetGenics, upon NetGenics'
request, fifty percent (50%) of all reasonable out-of-pocket expenses incurred
by NetGenics in performing Services for Subscriber under this Agreement
including, without limitation, expenses incurred for travel, meals, lodging,
long distance telephone calls, document reproduction, postage, and cost of
storage media such as disks and tapes.

     10.3 Subscriber shall pay when due any sales, use, excise, property or
other federal, state, local or foreign taxes, duties, tariffs or other
assessments (other than any tax based solely on the net income of NetGenics) and
related interest and penalties that NetGenics is at any time obligated to pay or
collect in connection with or arising out of the transactions contemplated by
this Agreement. Subscriber agrees to indemnify and hold harmless NetGenics from
any and all of such taxes, duties, tariffs or other assessments. If NetGenics
pays any such amounts which Subscriber is obligated to pay under this Section
10.3, Subscriber shall promptly reimburse NetGenics in an amount equal to the
amount so paid by NetGenics.

     10.4 Any payments due NetGenics hereunder which are not paid when due shall
bear interest at the lower of the rate of one and one-half percent (1.5%) per
month or the highest rate permitted by law.

11. SOURCE CODE
    -----------

     11.1 NetGenics agrees to make Subscriber a beneficiary under the NetGenics'
existing Source Code Escrow Agreement, which shall provide Subscriber with
access to the Source Code for supporting and maintaining the Licensed Program in
the event NetGenics ceases to do business in its regular course.

     11.2 NetGenics may make limited examples of Source Code available to
Subscriber, as needed and at NetGenics' sole discretion. All such Source Code
shall be treated as Confidential Information of NetGenics as set forth in this
Agreement.

                                       17
<PAGE>   18

12. PROPRIETARY RIGHTS
    ------------------

     12.1 Except for release of Source Code, as set forth in Section 11.1 above,
Subscriber acknowledges that NetGenics is the sole and exclusive owner of the
Software, Services and Documentation and the Source Code of the Software, and
all proprietary rights therein, including, without limitation, all associated
patents, copyrights and trade secrets rights.

     12.2 All proprietary notices incorporated in or fixed to the Licensed
Program or Documentation shall be duplicated by Subscriber on all copies or
extracts thereof and shall not be altered, removed or obliterated. A copyright
notice on the Licensed Program or Documentation does not, by itself, constitute
evidence of publication or public disclosure.

     12.3 NetGenics and Subscriber acknowledge that the other party's
Confidential Information constitutes commercially valuable proprietary trade
secrets, patent applications, patents, plant breeders' rights, plant variety
protection registration etc. of the disclosing party, including, without
limitation, copyrights, trade secrets and may include software for which patents
have been applied for or issued. The receiving party shall (i) not disclose or
allow access to the Confidential Information to any party other than its
employees, solely on a need-to-know basis, who have signed a nondisclosure
agreement conforming as to intent and effect to this Section 12; (ii) use its
best efforts to protect the Confidential Information against any unauthorized or
unlawful use, disclosure, dissemination or copying; (iii) not use any of the
Confidential Information other than as permitted under the terms of this
Agreement; (iv) not provide or disclose to third parties the Confidential
Information in any form, and (v) not provide or permit public access to the
Confidential Information in whole or in part, including, without limitation, by
computer networks, periodicals, newspapers or any other accessible or
distributed media.

13. TERM
    ----

     13.1 Unless sooner terminated as herein provided, this Agreement shall
commence on the Effective Date and shall terminate upon the third (3rd)
anniversary of the Effective Date (the "Term"). This agreement may be renewed
for subsequent one (1) year terms, at NetGenics' then current license fees, upon
mutual agreement within thirty (30) days of the expiration of the Term.

     13.2 Subscriber may terminate this Agreement any time after the first
anniversary of the Effective Date by providing thirty (30) days written notice
thereof to NetGenics.

     13.3 Either party may terminate this Agreement if the other party
materially breaches a provision of the Agreement, including, without limitation,
payment obligations, and fails to correct the breach within sixty (60) days
following written notice of the breach.

                                       18
<PAGE>   19

     13.4 If either party to this Agreement files a petition in bankruptcy, or
if a petition in bankruptcy is filed against it, or if it becomes insolvent, or
makes an assignment for the benefit of creditors or an arrangement pursuant to
any bankruptcy law, the other party shall have the right to terminate this
license upon thirty (30) days' written notice.

     13.5 Upon termination of this Agreement for any reason, Subscriber shall:
(i) pay immediately all amounts which are due and payable; (ii) have no further
right and license to use the Subscription or NetGenics' Confidential Information
(except as provided in Sections 13.6 and 13.7); (iii) return, at its cost, the
Product, together with any and all copies, modifications and merged portions in
any form, and all tangible embodiments of the Confidential Information, (unless
it provides assurances reasonably satisfactory to NetGenics that the
Documentation and Confidential Information and all copies thereof have been
destroyed). NetGenics shall have the right to supervise the return or
destruction of all such materials.

     13.6 In the event of termination for any reason other than as provided
under Section 2.3 of this Agreement, NetGenics shall provide any outstanding
Services for which Fees have been paid, and shall provide reasonable commercial
assistance to Subscriber in transferring any Subscriber data, held within the
Product prior to termination, into a mutually-agreed, machine-readable form.
Such assistance shall be provided at cost to Service Hours, and should remaining
Service Hours be exhausted, shall be provided at NetGenics' then-current hourly
rates. In addition, NetGenics shall maintain a tape back-up version of the
Product, in Subscriber's system configuration, for a period of five (5) years
after termination. Upon payment to NetGenics of consideration equal to the fair
market value of the Hardware then in use at Subscriber's Designated Location,
the aforementioned tape back-up version of the Product, along with the Hardware
then in use at Subscriber's Designated Location, shall be placed in escrow with
a mutually-agreed escrow agent. Subscriber shall have the right to request, and
NetGenics shall have the obligation to provide, access to the Product,
integrating Subscriber's data as of the date of termination, during the
above-referenced five-year period. Such access shall be subject to no less than
thirty (30) days' written notice from Subscriber, and shall be provided at
NetGenics then-current hourly rates, plus any and all necessary travel and other
expenses, including reasonable and actual expenses incurred for transportation,
meals, telephone, hardware rental, and shipping costs.

     13.7 In the event that Subscriber terminates this Agreement on or after the
third anniversary of the Effective Date, Subscriber shall be entitled, upon
payment of a consideration equal to one (1) year's Subscription Fee (as
designated on EXHIBIT C) in effect at the time of such termination, to continue
use of the Product for a period of eighteen (18) months, subject to the
following conditions: (i) Subscriber access shall be "read-only"; i.e. data may
be viewed using the Product, but no new data may be created or analyzed using
the Product, and (ii) no more than twelve (12) persons may have access

                                       19
<PAGE>   20

to the Product. NetGenics audit rights, as provided in Section 5.7, shall remain
in force during the above-described extension period.

14. REPRESENTATIONS, WARRANTIES AND LIMITATION OF LIABILITY
    -------------------------------------------------------

        14.1 NetGenics represents that it has the right and authority to enter
into this Agreement and grant the license contained herein.

        14.2 NetGenics warrants to Subscriber from the date of acceptance and
for the Term of this Agreement that: (i) the Product, any custom software
modules developed by NetGenics for Subscriber and any Subscriber Software will
substantially conform to the Documentation, provided that it is used at the
Designated Location and with the environment for which it was designed; (ii) the
Product and any custom software modules developed by NetGenics for Subscriber
will process dates accurately prior to, during and after the calendar year 2000
(including, without limitation, accurate century recognition, ability to
accommodate same century and multi-century formulas and date values and
interface values reflecting the appropriate century); and, (iii) any media on
which the Licensed Program, any custom software modules developed by NetGenics
for Subscriber and the Documentation are distributed will be free from defects
in materials and workmanship under normal use and service.

        14.3 NetGenics' entire liability and Subscriber's sole and exclusive
remedy in the event of substantial nonconformity of the Licensed Program or
defective media or Documentation, shall be, at NetGenics' sole discretion, the
correction or work-around of such substantial errors in the Licensed Program,
replacement of the defective media or Documentation, or a refund of a pro-rata
portion of the subscription fee, corresponding to the period of time in which
the Product was non-usable due to non-conformance. Any correction of substantial
errors to the Licensed Program or any replacement media or documentation which
is supplied is warranted for the remainder of the original warranty period.

        14.4 Such services and any required warranty service pursuant to this
Section 14 will be performed, by mutual agreement, (i) by telephonic
communication, (ii) via modem from NetGenics' facility, (iii) by NetGenics at
the site of Subscriber or (iv) otherwise as determined by NetGenics and agreed
by Subscriber.

        14.5 The warranty contained in Section 14.2 shall be void and of no
effect in the event (i) the Product has been modified, altered or changed in any
manner by Subscriber or any party acting on behalf of Subscriber (other than as
set forth herein), (ii) if any media has been damaged as a result of accident,
misuse or abuse by Subscriber or any party acting on behalf of Subscriber (other
than by NetGenics or its authorized representatives), or (iii) any substantial
nonconformity of the Product is due, through no fault of NetGenics, to the
failure of, or defects in, any Third Party Software used in

                                       20
<PAGE>   21

connection with the Licensed Program, including any Subscriber Software
developed other than as provided in Section 7.3 of this Agreement.

        14.6 EXCEPT AS SET FORTH IN SECTIONS 14.1 AND 14.2, NETGENICS EXPRESSLY
DISCLAIMS ALL WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE SUBSCRIPTION
(INCLUDING, WITHOUT LIMITATION, ANY RESULTS CREATED FROM USE OF THE SUBSCRIPTION
HEREUNDER), EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

        14.7 NETGENICS SHALL NOT BE LIABLE TO SUBSCRIBER FOR ANY DIRECT DAMAGES
OR CLAIMS IN EXCESS OF THE FEES PAID BY SUBSCRIBER HEREUNDER. NETGENICS SHALL
NOT BE LIABLE TO SUBSCRIBER OR ITS AFFILIATES FOR ANY INDIRECT, SPECIAL,
CONSEQUENTIAL, EXEMPLARY OR INCIDENTAL DAMAGES (INCLUDING, WITHOUT LIMITATION,
LOST REVENUES, ANTICIPATED REVENUES OR PROFITS RELATING TO THE SAME) ARISING
FROM ANY CLAIM RELATING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT, WHETHER A
CLAIM FOR SUCH DAMAGES IS BASED ON WARRANTY, CONTRACT, TORT (INCLUDING, WITHOUT
LIMITATION, NEGLIGENCE OR STRICT LIABILITY), EVEN IF AN AUTHORIZED
REPRESENTATIVE OF NETGENICS IS ADVISED OF THE LIKELIHOOD OR POSSIBILITY OF SAME.
SUBSCRIBER ACKNOWLEDGES AND AGREES THAT PAYMENT BY NETGENICS OR RETENTION BY
SUBSCRIBER OF DIRECT DAMAGES AS LIMITED BY THE FOREGOING SENTENCE SHALL BE
SUBSCRIBER'S SOLE AND EXCLUSIVE REMEDY IN EXHAUSTION OF ALL OTHER REMEDIES UNDER
THIS AGREEMENT, AT LAW OR IN EQUITY, AND THAT SUCH REMEDY SHALL NOT BE DEEMED OR
ALLEGED BY SUBSCRIBER TO HAVE FAILED OF ITS ESSENTIAL PURPOSE. IN NO EVENT SHALL
NETGENICS BE LIABLE FOR ANY DAMAGES CAUSED BY SUBSCRIBER'S OR ANY THIRD PARTY'S
ACTS OR OMISSIONS.

15. INDEMNIFICATION
    ---------------

        15.1 NetGenics shall indemnify and hold harmless Subscriber against any
costs, fees or damages arising out of, or related to, any claim that
Subscriber's authorized use or possession of the Product or that the license
infringes or violates any United States or European Patent Office copyright,
patent or trademark of any third party; provided however, that (i) NetGenics has
sole control of the defense and/or settlement, (ii) Subscriber notifies
NetGenics promptly, but no later than thirty (30) days upon receipt by
Subscriber of notice of such claim in writing of each such claim or suit and
gives NetGenics all information known to Subscriber relating thereto, and (iii)
Subscriber cooperates with NetGenics in the settlement and/or defense.
Subscriber shall be reimbursed for all reasonable out-of-pocket expenses
incurred in providing any

                                       21
<PAGE>   22

cooperation requested by NetGenics. Failure of Subscriber to so notify NetGenics
will result in the forfeiture by Subscriber of its rights to indemnification
under this Section 15.

        15.2 In the event that all or any part of the Product is, or in the
opinion of NetGenics may become, the subject of any claim or suit for
infringement of any third party trademark, patent or copyright, or if
Subscriber's use of the Product is permanently enjoined, NetGenics shall, in its
sole discretion and at its expense, do one of the following: (i) procure for
Subscriber the right to use the Product or the affected part thereof; (ii)
replace the Product or affected part with other suitable software, hardware and
documentation; (iii) modify the Product or affected part to make it
non-infringing; or (iv) refund the license fee paid by Subscriber and terminate
the licensed rights granted herein. Any such refund shall be prorated to reflect
the reasonable value for the use of the Subscription. NetGenics shall be
obligated to advise Subscriber of its intended activities within thirty (30)
days of initial notification of infringement. In the event NetGenics elects
options (ii) or (iii) above, and the resulting Product lacks significant
functionality as described in the Documentation, Subscriber may elect to
terminate this Agreement and incur no further cost nor obligation hereunder.

        15.3 NetGenics shall have no obligations under this Section 15 to the
extent a claim is based upon any of the following: (i) the Product or any
portion thereof has been modified, altered or changed in any manner by
Subscriber or any party acting on behalf of Subscriber (other than by NetGenics
or its authorized representatives), if such infringement would have been avoided
in the absence of the use of such altered Product; (ii) the combination,
operation or use of the Product with software which was not provided by
NetGenics, if such infringement would have been avoided in the absence of such
combination operation or use; or (iii) the use of the Software and Documentation
on or in connection with a computer system or hardware components which have not
been approved by NetGenics and/or which are used at a location other than at the
Designated Location without NetGenics' prior written approval.

        15.4 This Section 15 states NetGenics' entire liability for any alleged
infringement by the Product or any part thereof.

16. GENERAL
    -------

        16.1 Sections 5.8, 12.1 through 12.3, 13.5 through 13.7, 14.1, 14.3,
14.5 through 14.7, Article 15 in its entirety, 16.1, 16.7, 16.13 and 16.15 shall
survive the termination of this Agreement for any reason.

        16.2 This Agreement and all Exhibits attached hereto and incorporated
herein by this reference contain the entire agreement between the parties hereto
with respect to the subject matter hereof and supersedes any previous
understandings or agreements, whether written or oral, in respect of such
subject matter.

                                       22
<PAGE>   23

        16.3 This Agreement shall be binding upon and inure to the benefit of
the parties, their successors and assigns. This Agreement or any portion
thereof, or any right or responsibility hereunder, shall not be assignable
(except to a successor or Affiliate) by Subscriber without the prior written
consent of NetGenics, such consent not to be unreasonably withheld. Any
attempted assignment which does not comply with the terms of this Section 16.3
shall be void and of no effect.

        16.4 None of the terms of this Agreement shall be deemed to be waived or
amended by either party unless such a waiver or amendment specifically
references this Agreement and is in a writing signed by the party to be bound.

        16.5 The illegality, invalidity or unenforceability of any part of this
Agreement shall not affect the legality, validity or enforceability of the
remainder of this Agreement. If any part of this Agreement shall be found to be
illegal, invalid or unenforceable, this Agreement shall be given such meaning as
would make this Agreement legal, valid and enforceable in order to give effect
to the intent of the parties.

        16.6 All communications, notices and exchanges of information
contemplated herein or required or permitted to be given hereunder shall be in
writing and shall be deemed properly given when personally delivered, or when
one delivers it to an established courier service, with fees prepaid, or
transmits it by facsimile (with hard copy to follow), addressed to the other
party to the addresses set forth on the first page of this Agreement (or such
other address of which such party shall have given written notice).

        16.7 Both Subscriber and NetGenics acknowledge that a breach or failure
to comply with any of the provisions of this Agreement (other than payment
obligations) will irreparably harm the business of the other party, and that
neither Subscriber nor NetGenics will have an adequate remedy at law in the
event of such breach or non-compliance. Therefore, Subscriber and NetGenics
acknowledge that either party shall be entitled to injunctive relief and/or
specific performance without the posting of bond or other security, in addition
to whatever other remedies it may have, at law or in equity, in any court of
competent jurisdiction against any acts of such breach or non-compliance.

        16.8 Subscriber will be responsible for the payment of all taxes based
on work performed or products delivered pursuant to this Agreement, except for
taxes based on NetGenics' net income.

        16.9 Each party has the right to use the name, logos and trademarks of
the other party in publicity releases or advertising, including customer lists,
or for other promotional purposes, upon the prior written approval of the other
party, such approval not to be unreasonably withheld.

        16.10 Nothing herein shall be construed to create any relationship of
employer and employee, agent and principal, partnership or joint venture between
the parties. Neither

                                       23
<PAGE>   24

party shall assume, either directly or indirectly, any liability of or for the
other party. Neither party shall have the authority to bind or obligate the
other party and neither party shall represent that it has such authority.

        16.11 Notwithstanding anything to the contrary contained in this
Agreement, neither Subscriber nor NetGenics will be responsible for any failure
to perform its obligations hereunder caused by strikes, lockouts, riots,
epidemics, war, governmental regulations, fire, communication line failures,
power failures, acts of God or other causes beyond its control, including acts
or omissions of third parties, and the occurrence of any such event will toll
the time period provided in this Agreement for performance by NetGenics or
Subscriber.

        16.12 The article and section headings in this Agreement are for
reference purposes only and will not be deemed to be a part of this Agreement,
nor are they intended to describe, interpret, define or limit the scope or
extent of this Agreement or any provision hereof.

        16.13 This Agreement shall be governed by and construed in accordance
with the domestic laws of the State of Delaware, United States of America,
without giving effect to its choice of law or conflict of law provisions.

        16.14 If the parties cannot resolve a dispute arising out of or in
connection with this Agreement, then any party may, upon written notice to the
other, have such dispute referred to their respective officers designated below
or their successors, for attempted resolution by good faith negotiations within
thirty (30) days after such notice is received:

               For NetGenics:       President

               For Subscriber:      Head of Biotechnology Research

Any such dispute which is not so resolved between the parties or the designated
officers within such thirty (30) day period shall, upon written notice from one
Party to be resolved by final and binding arbitration under the then current
Licensing Agreement Arbitration Rules of the American Arbitration Association
("AAA"). If the claim is filed by one party, then the venue for arbitration
shall be proximate to that of the other party. The arbitration shall be
conducted by a panel of three arbitrators who are knowledgeable in the subject
matter which is at issue in the dispute (the "Panel"). Each party shall have the
right to appoint one member of the Panel, with the third member to be mutually
agreed upon by the two Panel members appointed by the parties or, failing such
agreement, to be selected according to the AAA rules. Notwithstanding the
foregoing, no panel member appointed in pursuit to this Section 16.14 shall be a
resident of the state of Ohio or the Principality of Belgium. In conducting the
arbitration, the panel shall determine what discovery will be permitted,
consistent with the goal of limiting the cost and time which the parties must
expend for discovery (and provided that the Panel shall permit such

                                       24
<PAGE>   25

discovery deemed necessary to permit an equitable resolution to the dispute).
The decision of the Panel shall be in writing and shall set forth the basis
therefor. The Panel shall also determine the steps, if any, that a Party should
take to correct any failure or breach by such Party pertaining to any such
dispute. The Parties shall share equally the Panel's fees and expenses. The
decision of the Panel shall be final and may be enforced by the Party in whose
favor it runs, and such award may be enforced and executed upon in any court
having jurisdiction over the Party against whom the enforcement of such an award
is sought.

        16.15 During the Term of this Agreement and for one (1) year thereafter,
neither Subscriber nor NetGenics shall directly solicit for employment any
employee of the other party who was directly involved with the performance of
this Agreement, without the prior consent of that party. Notwithstanding the
foregoing, the provision of this Section 16.15 shall not prohibit either party
from hiring employees of the other party who have applied for positions on their
own and without solicitation by the hiring party.

        16.16 Upon execution of this Agreement, NetGenics and Subscriber agree
to cooperate in the preparation of a joint press release stating that the
parties have entered into a software license and service agreement. NetGenics
hereby warrants that it will not use any trademark or make reference to products
or services of Subscriber or its subsidiaries without obtaining the prior
written permission of Subscriber.
                                      ***
               IN WITNESS WHEREOF the parties hereto have caused this Software
License Agreement to be executed by their duly authorized representatives as of
the date first above written.

NetGenics International, Ltd.           Hoechst Schering AgrEvo GmbH

By: /s/ Keith T. Coleman                By: /s/ Dr. Jiujeu Aphauer
    ---------------------------             ------------------------------------
               (Signature)                          (Signature)

Keith T. Coleman                        Dr. Jiujeu Aphauer
-------------------------------         ----------------------------------------
          (Printed Name)                           (Printed Name)

Title:  Chief Financial Officer         Title:  Member of Agrevo Board
        -----------------------                 --------------------------------

                                        By: /s/ B. Convent
                                            ------------------------------------
                                                    (Signature)

                                        B. Convent
                                                  (Printed Name)

                                        Title: Head, Research and Development,
                                               -------------------------------
                                        Biotechnology
                                        -------------

                                       25

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