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                                                                   Exhibit 10.12

                               ALLIANCE AGREEMENT

This Alliance Agreement (the "Agreement") is made and dated this 2nd day of
August, 1999, between Covance Inc., a Delaware corporation ("Covance"), and
Variagenics, Inc., a Delaware corporation ("Variagenics").

                                   Background

A. Covance and its Affiliates provide, among other products and services,
central laboratory services to Sponsors.

B. Variagenics, directly and through its Affiliates, identifies clinically
important variances in genes that affect drug action and applies this
information to the discovery and development of new drugs, and intends to
provide Variagenics Lab Services as more fully described in this Agreement.

C. Covance and Variagenics desire to form an alliance (the "Alliance") as more
fully described in this Agreement.

D. For convenience of reference, capitalized terms used herein have the meanings
listed in Exhibit A.

                                      Terms

NOW, THEREFORE, in consideration of the foregoing premises, and other valuable
consideration, the sufficiency and receipt of which are hereby acknowledged, the
parties agree as follows:

1.    Purpose.

      The purpose of the Alliance is to facilitate the development of
Variagenics Know-How by Variagenics and its Affiliates, and the license of
Variagenics Know-How to Covance. The intent of the Alliance is for Covance and
its Affiliates to use the Variagenics Know-How to provide Pharmacogenomic Lab
Services to Contracting Sponsors, and for Variagenics to use the Variagenics
Know-How to provide Variagenics Lab Services to Contracting Sponsors. To
facilitate the foregoing, Covance is licensing certain Covance Know-How to
Variagenics, and Covance and Variagenics are agreeing to certain provisions
regarding the sale of Pharmacogenomic Lab Services and Variagenics Lab Services.

2.    Technology Transfer.

      (a) License of Variagenics Know-How. (i) Variagenics hereby grants to
Covance a non-exclusive, worldwide license to the Variagenics Know-How solely
for use to provide

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 406 of the Securities Act.
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Pharmacogenomic Lab Services as expressly permitted by this Agreement. During
the Term, Variagenics shall provide to Covance such reasonable materials and
support as are necessary to effect this license and to enable Covance to use the
Variagenics Know-How to provide Pharmacogenomic Lab Services, including, without
limitation, support from the Employees and the FTEs. Covance shall pay to
Variagenics a royalty for such license as provided in Section 2(c) (subject to
the other provisions in this Agreement with respect thereto), and shall promptly
pay to Variagenics all reasonable out-of-pocket expenses incurred in effecting
such license. Covance shall have no right to sublicense the Variagenics Know-How
except to its Affiliates who expect to provide Pharmacogenomic Lab Services,
which Affiliates shall have no further right to sublicense the Variagenics
Know-How.

            (ii) Subject to continued payment of royalties pursuant to Section
2(c), the license provided for in Section 2(a)(i) shall survive any termination
of this Agreement, but only for (a) Variagenics Alliance Know-How in existence
on the date of such termination of this Agreement, (b) Variagenics Know-How
which had been marketed by Covance and its Affiliates at any time on or prior to
the date of such termination of this Agreement, and (c) other Variagenics
Know-How in existence at any time on or prior to the date of such termination of
this Agreement to the extent necessary to practice the license set forth in
clauses (a) and (b). The foregoing notwithstanding, Covance shall have the right
at any time after the termination of this Agreement, upon six (6) months' prior
written notice to Variagenics, to terminate the license provided for in this
Section 2(a) and the obligation to pay royalties pursuant to Section 2(c). In
the event of such termination of the license, and except as necessary to satisfy
obligations to Contracting Sponsors and the requirements of any applicable law,
rule or regulation, Covance will return to Variagenics or destroy all
embodiments of Variagenics Know-How in the possession of Covance or its
Affiliates.

      (b) License of Variagenics Gene Rights. (i) Variagenics will license
Variagenics Gene Rights to a Contracting Sponsor for use in a specific Product
Development Program as needed by Covance and its Affiliates to perform
Pharmacogenomic Lab Services for such Contracting Sponsor, and such Contracting
Sponsor shall have the right to sublicense such Variagenics Gene Rights to
Covance and its Affiliates solely for use by Covance and its Affiliates to
provide Pharmacogenomic Lab Services to such Contracting Sponsor for such
Product Development Program. Covance and its Affiliates shall not be obligated
to pay any royalty to Variagenics in connection with any such sublicense.

            (ii) The parties may, from time to time, discuss the possible
licensing of Variagenics Gene Rights to Covance and its Affiliates for use by
Covance and its Affiliates to provide Pharmacogenomic Lab Services using
Variagenics Gene Rights to Contracting Sponsors that do not have a license from
Variagenics for such Variagenics Gene Rights. Any such license will be on such
terms as the parties may agree from time to time. Neither party shall have any
obligation to enter into any such license.

      (c) Royalty. Covance shall pay to Variagenics a royalty equal to
[      ](the "Variagenics Fees"). Variagenics acknowledges that in entering into
this Agreement Covance is not guaranteeing to Variagenics [      ] of
Variagenics Fees. For purposes of this Section 2(c), "proprietary" technology
shall mean Variagenics Know-How which Variagenics or

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any of its Affiliates owns or which is licensed to Variagenics or any of its
Affiliates or with respect to which Variagenics or any of its Affiliates has an
existing patent application or patent, and in each case which Variagenics or any
of its Affiliates has an exclusive right or license to use and has not granted a
right or license with respect thereto to any party other than Covance, except
for (i) any right to use for noncommercial purposes retained by academic
institutions, (ii) any right or license granted for purposes other than
Pharmacogenomic Lab Services, and (iii) any right or license granted to a
Sponsor in connection with a specific Product Development Program to obtain
Pharmacogenomic Lab Services using such Variagenics Know-How from any central
laboratory of the Sponsor's choice or for the Sponsor to use itself; and
"nonproprietary" technology shall mean all other Variagenics Know-How. The
foregoing notwithstanding, [      ] royalty shall be payable with respect to Net
Sales which are subject to royalty solely because of the use of Variagenics
Know-How which is (i) non-proprietary technology and which is also licensed to
Covance or any of its Affiliates by a third party, or (ii) also licensed to the
Sponsor to which such Net Sales relate, provided in each case such Net Sales are
not subject to royalty because of the use of any other Variagenics Know-How
(collectively, "Excluded Net Sales"). The determination of whether specific
Variagenics Know-How constitutes "proprietary" or "non-proprietary" technology
shall be made by the Committee. If the Committee is unable to resolve such
issue, the matter shall be resolved in accordance with Section 19. The
obligation to pay the Variagenics Fees shall survive any termination of this
Agreement and shall apply to Net Sales using Variagenics Know-How made during
the Term and, subject to Section 2(a)(ii), after termination of this Agreement.

      (d) License of Covance Know-How. In order to assist Variagenics in
providing Variagenics Lab Services for the purposes described in the next
succeeding sentence, Covance shall license to Variagenics such Covance Know-How
as the parties may mutually agree, which license shall be a non-exclusive,
worldwide license of the Covance Know-How. The parties agree that the Covance
Know-How to be licensed may include the Covance Know-How set forth in Exhibit B
hereto. Any such Covance Know-How shall be used by Variagenics solely to enable
Variagenics to assist Covance in providing Pharmacogenomic Lab Services and to
enable Variagenics to provide Variagenics Lab Services, in each case as
expressly permitted by this Agreement. Variagenics and its Affiliates to which
Variagenics is permitted to sublicense such Know-How as set forth below shall
have the right to use Covance Know-How and Standard Operating Procedures in the
areas of data or information handling, management, reporting, processing and
control throughout their business, and, in addition, Variagenics shall have the
right to use the Covance Know-How for such other purposes as the parties may
mutually agree. [      ] shall be payable in connection with such license, but
Variagenics shall promptly pay to Covance all reasonable out-of-pocket expenses
incurred in effecting such license. Variagenics shall have no right to
sublicense the Covance Know-How except to any wholly-owned subsidiary of
Variagenics, which Affiliates shall have no further right to sublicense the
Covance Know-How. Variagenics and such Affiliates shall not disclose or promote
to any third party that they are using any Covance Know-How. Upon the
termination of the license provided for in this Section 2(d), and except as
necessary to satisfy obligations to Contracting Sponsors and the requirements of
any applicable law, rule or regulation, Variagenics will return to Covance or
destroy all embodiments of Covance Know-How in the possession of Variagenics or
its Affiliates.

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3. Employees and FTEs. In order to fully support the continued development of
Variagenics Alliance Know-How and the Alliance:

      (a) Employees. Covance will fund [      ] full-time employees
("Employees") at a rate of $[      ] per year per Employee, which Employees will
be employees of Variagenics. Payment for each such Employee will be made
quarterly ($[      ]), beginning on the date each such Employee becomes fully
dedicated to supporting the Alliance. The Employees will be under the control of
Variagenics but shall be at all times fully dedicated to supporting the
Alliance. Variagenics will use its commercially reasonable efforts to have
Employees fully dedicated to supporting the Alliance as soon as practicable
after execution of this Agreement. Variagenics shall promptly provide to Covance
the names of such Employees. If any such Employee ceases being fully dedicated
to supporting the Alliance for any reason, Variagenics shall promptly notify
Covance of such event and use its commercially reasonable efforts to replace any
such Employee as soon as possible, including the reassignment of other
Variagenics employees. The foregoing notwithstanding, the obligation of Covance
to provide the funding specified in this Section 3(a) shall be abated (and an
appropriate credit or refund shall be made) when and for as long as an Employee
position is not filled.

      (b) Variagenics FTEs. (i) As soon as practicable following execution of
this Agreement, Variagenics will fund and provide [      ] ("FTE") who shall, in
the aggregate, be fully dedicated to supporting the Alliance at a level
equivalent to the effort of one full-time individual. This FTE will be
employee(s) of Variagenics and under the control of Variagenics.

            (ii) As soon as practicable following satisfaction of the conditions
set forth in Section 3(d)(ii), Variagenics will fund and provide [      ] who
shall, in the aggregate, be fully dedicated to supporting the Alliance at a
level equivalent to the effort of [      ]. [      ] FTE will be employee(s) of
Variagenics and under the control of Variagenics.

            (iii) Variagenics shall promptly provide to Covance the names of all
persons providing services as part of these FTEs and the percentage of their
time being dedicated to the Alliance. If the required number of FTEs cease being
fully dedicated to supporting the Alliance for any reason, Variagenics shall
promptly notify Covance of such event and use its commercially reasonable
efforts to replace such support as soon as possible, including the reassignment
of other Variagenics employees. The obligation of Covance to provide the funding
required by Section 3(a) shall be abated (and an appropriate credit or refund
shall be made) when, for as long as and to the extent the appropriate number of
FTEs are not fully supporting the Alliance. For purposes of illustrating the
foregoing concept, if Variagenics is required to fund and provide one (1) FTE
and only .50 FTE is fully dedicated to supporting the Alliance, then Covance's
obligations under Section 3(a) during the period when only .50 FTE is supporting
the Alliance shall be reduced by twenty-five percent (25%); and if Variagenics
is required to fund and provide two (2) FTEs and only 1.5 FTE is fully dedicated
to supporting the Alliance, then Covance's obligations under Section 3(a) during
the period when only 1.5 FTEs are supporting the Alliance shall be reduced by
twenty-five percent (25%). Under any circumstance, Variagenics shall be
responsible for providing the funding for the two Employees during any period
and to the extent Covance is not obligated to do so pursuant to this Section
3(a)(iii).

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      (c) Covance FTEs. Upon satisfaction of the conditions set forth in the
first sentence of Section 3(d)(i), or sooner if Covance elects in its sole
judgment, Covance will provide to Variagenics an advance to fund [      ] at a
rate of $[      ] per year per FTE. These advances will be made quarterly
($[      ]), beginning on the date each person who is part of such FTEs becomes
dedicated to supporting the Alliance, or on a pro rata basis to the extent that
fewer than [ ] FTEs are dedicated to supporting the Alliance; provided, however,
that Covance will not be obligated to provide any advance under this Section
3(c) unless at least [      ] FTE is dedicated to supporting the Alliance under
this Section 3(c). Variagenics will use its commercially reasonable efforts to
have these [      ] FTEs fully dedicated to supporting the Alliance as soon as
practicable after the satisfaction of the conditions set forth in Section
3(d)(i), or Covance's election, whichever is earlier. These advances shall be
repaid by Variagenics to Covance either, at Covance's election, by payment by
Variagenics to Covance in an amount equal to the sum of the Variagenics
Non-Alliance Fees and one-half of the Variagenics Fees (such payment to Covance
to be made within seven (7) days of the payment by Covance to Variagenics of the
Variagenics Fees and the Variagenics Non-Alliance Fees), or by the retention by
Covance of the Variagenics Non-Alliance Fees and one-half of the Variagenics
Fees otherwise payable to Variagenics. Variagenics shall promptly provide to
Covance the names of all persons providing services as part of these FTEs and
the percentage of their time being dedicated to the Alliance. If the required
number of FTEs cease being fully dedicated to supporting the Alliance for any
reason, Variagenics shall promptly notify Covance of such event and use its
commercially reasonable efforts to replace such support as soon as possible,
including the reassignment of other Variagenics employees. The foregoing
notwithstanding, the obligation of Covance to provide the advances specified in
this Section 3(c) shall be abated (and an appropriate credit or refund shall be
made) when, for as long as and to the extent these FTE positions are not filled.

      (d) Conditions. (i) Covance's obligation under Section 3(c) shall not
begin until (A) the aggregate Net Sales of Pharmacogenomic Lab Services by
Covance and its Affiliates using Variagenics Know-How under the Alliance, plus
such Net Sales (without regard to receipt of payment) expected to be made under
signed agreements with Contracting Sponsors under the Alliance (in all cases net
of cancellations and modifications), but excluding Excluded Net Sales
("Cumulative Alliance Net Sales"), equals or exceeds $[      ], and (B) Covance
and its Affiliates have entered into signed agreements with Contracting Sponsors
to provide Pharmacogenomic Lab Services using Variagenics Know-How involving at
least [      ] Product Development Programs with respect to [      ]different
drugs, but excluding Excluded Net Sales. (For purposes of illustrating the
foregoing concepts, if Covance's Net Sales under agreements with Contracting
Sponsors have totaled $[      ], Net Sales expected under signed agreements with
Contracting Sponsors total $[      ], and Covance signs an additional agreement
with a Contracting Sponsor which, by its terms, is expected to generate
$[      ] or more of Net Sales for Covance, then, assuming the requirement in
clause (B) in the previous sentence has also been satisfied, Covance's
obligation under Section 3(c) shall begin). In addition, Covance may elect in
its sole judgment to provide the advances as provided for in Section 3(c) at
anytime. If Covance is not obligated pursuant to this Section 3(d)(i) to begin
providing the advances provided for in Section 3(c) by the first anniversary of
the date of this Agreement, and Covance has not elected to begin providing such
advances on or prior to such date, then Variagenics shall have the right,
exercisable by written notice to Covance within forty-five (45) days after such
first anniversary

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date, to terminate this Agreement thirty (30) days after the notice is given,
and there shall be no liability to Covance in connection with or as a result of
such termination. After such forty-five (45) days, Variagenics shall have no
right to terminate this Agreement pursuant to this Section 3(d).

            (ii) Variagenics' obligation to fund its [      ] under Section
3(b)(ii) shall begin upon the earlier to occur of (A) the aggregate of the Net
Sales of Variagenics Lab Services by Variagenics and its Affiliates under the
Alliance, plus such Net Sales (without regard to payment) expected to be made
under signed agreements with Contracting Sponsors, equaling or exceeding
$[      ] and (B) the earlier to occur of the satisfaction of the conditions set
forth in the first sentence of Section 3(d)(i) and Covance's election to provide
the advances as provided for in Section 3(c).

      (e) Renewal. (i) (A) The obligation to provide funding and advances
contained in this Section 3 shall continue for a two-year period from the date
of this Agreement and shall be continued for a three-year period thereafter if
Cumulative Alliance Net Sales by Covance and its Affiliates at the end of such
two-year period are at least $[      ]. In addition, Covance may elect in its
sole judgment to continue providing such funding and advances at the same level
as in effect at the end of such two-year period. If the $[      ] amount set
forth in the second preceding sentence is not achieved at the end of such
two-year period, the parties will attempt to agree upon a mutually acceptable
lower level of funding during such three-year period, as determined in their
respective sole judgment. If such Cumulative Alliance Net Sales at the end of
such two-year period are not at least $[      ], the parties have not agreed
upon a mutually acceptable lower level of funding after such two-year period,
and Covance has not elected to continue such funding and advances at the same
level as in effect at the end of such two-year period, then Variagenics shall
have the right, exerciseable by written notice to Covance within forty-five (45)
days after the end of such two-year period, to terminate this Agreement thirty
(30) days after the notice is given, and there shall no liability to Covance in
connection with or as a result of such termination. After such forty-five (45)
days, Variagenics shall have no right to terminate this Agreement pursuant to
this Section 3(e).

                  (B) After the fifth anniversary of the date of this Agreement,
any funding obligation then in effect shall be continued for additional one-year
periods unless Covance or Variagenics gives written notice to the other of
termination of the obligations to provide funding and advances contained in this
Section 3 at least one hundred and twenty (120) days prior to the expiration of
the then-current period.

            (ii) The expiration of the obligation to provide funding and
advances contained in this Section 3 shall not eliminate the obligation of
Variagenics to repay advances as provided in Section 3(c). The conditions to
funding and advances provided for in this Section 3(e) are in addition to the
conditions to funding and advances contained elsewhere in this Agreement.

      (f) Positions. All individuals serving as Employees and FTEs shall, in
supporting the Alliance, serve in scientific or data processing positions, or
positions administering scientific information or data, and in all cases shall
be developing Variagenics Alliance Know-How and

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effecting the license provided for in Section 2(a), and shall have sufficient
scientific, data processing or related training, experience and education so as
to permit them to be productive for such purpose in a reasonable timeframe.
Without limiting the foregoing, individuals serving as Employees and FTEs shall
not be secretaries, administrative assistants or other non-technical or
non-scientific personnel. Covance shall have the right to request that specific
employees of Variagenics serve as Employees or FTEs, and Variagenics shall give
good faith consideration to making these employees available to so serve. Prior
to any individual serving as an Employee or FTE, Variagenics will send to
Covance the curriculum vitae of such individual, and Covance shall have the
right in its reasonable discretion to promptly object to any such individual
serving as an Employee or FTE, in which case such individual shall not so serve.
In addition, Covance shall have the right to request that any individual serving
as an Employee or FTE no longer so serve, if in Covance's reasonable judgment,
such individual does not meet the requirements of this Section 3(f) or is
otherwise not performing in the best interests of the Alliance.

      (g) No Limitations. The provisions contained in Sections 3(a), (b), and
(c) abating Covance's obligation to provide funding and advances are not
intended to and shall not limit any other rights or remedies Covance or
Contracting Sponsors may have as a result of a breach by Variagenics of its
obligations contained in those Sections.

4. Assay Delivery. Variagenics agrees to use all reasonable efforts to deliver
to Covance fully validated genotyping assays of the type and by the delivery
date set forth in Exhibit C hereto. The foregoing obligations may be amended by
unanimous vote of the Committee. If Variagenics fails to deliver any fully
validated assay as set forth in Exhibit C (including as Exhibit C may be amended
by the Committee from time to time), then Covance shall have the right,
exerciseable by written notice to Variagenics within forty-five (45) days after
such failure, to terminate this Agreement thirty (30) days after the notice is
given, and there shall no liability to Variagenics in connection with or as a
result of such termination.

5. Provision of Services.

      (a) Services. If Covance or any of its Affiliates shall desire Variagenics
or any of its Affiliates to provide Variagenics Lab Services to a Sponsor, then
Covance or its Affiliates will provide Variagenics with the specifications for
the Variagenics Lab Services to be performed and Variagenics will prepare a
Price Quotation in response thereto within ten (10) business days of the
delivery of the specifications to Variagenics (or such shorter timeframe as may
be necessary to satisfy the requirements of the Sponsor); provided, that
Variagenics shall be under no obligation to deliver a Price Quotation if
providing such Price Quotation is prohibited by any written agreements of
Variagenics with third parties in effect prior to the date of this Agreement and
Variagenics delivers a letter to Covance to such effect within such ten (10)
business days. These Price Quotations will be binding upon Variagenics or its
Affiliates which provide such Price Quotation. For each Price Quotation
submitted by Variagenics or any of its Affiliates to Covance or any of its
Affiliates with respect to which Covance or such Affiliate desires Variagenics
or its applicable Affiliates to perform Variagenics Lab Services, Covance or
such Affiliate and Variagenics or such Affiliates shall promptly enter into an
IPA.

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      (b) Compliance. In performing Variagenics Lab Services under this
Agreement or any IPA, Variagenics and its Affiliates will, at their own cost and
expense, comply with Covance Standard Operating Procedures and with all present
and future applicable laws, rules and regulation in effect from time to time. If
Variagenics or any of its Affiliates is subjected to an on-site inspection or if
any inquiries which have a bearing on Variagenics Lab Services under this
Agreement are made by any government agencies, Variagenics will notify Covance
immediately. Variagenics shall also notify Covance immediately (i) if for any
reason it or any of its Affiliates is disqualified by a government regulatory
agency or (ii) of any events or circumstances which can affect the Variagenics
Lab Services under this Agreement.

      (c) Payments to Covance. For all Variagenics Lab Services performed by
Variagenics or any of its Affiliates (i) independent of any Pharmacogenomic Lab
Services provided by Covance or any of its Affiliates and with respect to which
Covance or any of its Affiliates has (A) initiated contact between Variagenics
and the Contracting Sponsor, (B) made a proposal on behalf of Variagenics, (C)
joined a sales process initiated by Variagenics at the request of Variagenics,
and/or (D) assisted Variagenics in approaching a Contracting Sponsor or
establishing the contract for the Variagenics Lab Services with the Contracting
Sponsor or (ii) as part of a package consisting of Variagenics Lab Services
provided by Variagenics or any of its Affiliates and Pharmacogenomic Lab
Services provided by Covance or any of its Affiliates arranged for together
between Covance or any of its Affiliates and a Sponsor, Variagenics shall pay to
Covance a fee equal to [      ](the "Covance Fees"). Variagenics acknowledges
that in entering into this Agreement Covance is not guaranteeing a minimum
amount of Net Sales which will generate Covance Fees. Covance acknowledges that
in entering into this Agreement, Variagenics is not guaranteeing to Covance any
minimum amount of Covance Fees.

      (d) Audits. Variagenics and its Affiliates shall permit Covance or any of
its Affiliates and any Contracting Sponsor to audit their facilities, books and
records (including access to its personnel) for any reason in connection with
this Agreement. Apart from extenuating circumstances, Covance, its Affiliates or
the Contracting Sponsor, as applicable, shall provide Variagenics with
reasonable advance written notice of when the audit is to be conducted and such
audit will be held during Variagenics' regular business hours. Variagenics will
assist Covance, its Affiliates or the Contracting Sponsor in scheduling such
audits. Variagenics agrees to expediently address any deficiencies determined
within 30 days of such determination.

      (e) Equipment. In order to facilitate the efficient operation of the
Alliance, Covance and Variagenics will cooperate to integrate their equipment
and procedures, including, without limitation, sample handling, sample tracking,
result reporting systems, and laboratory testing equipment, each at its own
expense. Subject to Sections 2(d) and 5(b) above, if Covance requires
Variagenics to utilize particular equipment, hardware or software, Covance will
lend such equipment, hardware or software to Variagenics, or otherwise make it
available to Variagenics at [      ].

      (f) Covance Services. If Variagenics or any of its Affiliates shall desire
Covance or any of its Affiliates to provide Pharmacogenomic Lab Services under
this Agreement to a prospective Contracting Sponsor, other than a prospective
Contracting Sponsor to whom Covance or its Affiliates has marketed or provided
Pharmacogenomic Lab Services, as part of a

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package consisting of Variagenics Lab Services provided by Variagenics or any of
its Affiliates and Pharmacogenomic Lab Services provided by Covance or any of
its Affiliates arranged for together between Variagenics or any of its
Affiliates and a prospective Contracting Sponsor, then Variagenics or its
Affiliates will provide Covance with the specifications for the Pharmacogenomic
Lab Services to be performed and Covance will prepare a Price Quotation in
response thereto within ten business days of the delivery of the specifications
to Covance (or such shorter timeframe as may be necessary to satisfy the
requirements of the prospective Contracting Sponsor). These Price Quotations
will be binding upon Covance or its Affiliates which provide such Price
Quotation. For each Price Quotation submitted by Covance or any of its
Affiliates to Variagenics or any of its Affiliates with respect to which
Variagenics or such Affiliate desires Covance or its applicable Affiliates to
perform Pharmacogenomic Lab Services, Variagenics or such Affiliate and Covance
or such Affiliate shall promptly enter into an IPA. The foregoing
notwithstanding, Covance and its Affiliates shall not be obligated to provide a
Price Quotation or perform any Pharmacogenomic Lab Services if prohibited by
agreements with third parties (whether entered into prior to or after the date
of this Agreement), as determined by Covance in its sole judgment. Nothing
contained herein shall preclude Covance and its Affiliates from providing
Pharmacogenomic Lab Services not arranged by Variagenics.

      (g) Variagenics Identification. Covance and its Affiliates will identify
to a Sponsor for whom they are performing Pharmacogenomic Lab Services that
utilizes Variagenics Know-How (other than any such services which are Excluded
Net Sales), that Variagenics is the source of the technology used in such
Pharmacogenomic Labs Services. Such identification shall be in a form as will be
mutually agreed upon by Covance and Variagenics. The foregoing obligation shall
not apply if making such an identification is prohibited by the Sponsor or the
Sponsor requests that such an identification not be made. Except as provided in
this Section 5(g), and anything in this Agreement to the contrary
notwithstanding, Covance shall be under no obligation to engage in any marketing
activities for Variagenics.

      (h) Contract Protections. Anything in Sections 5(a) and 5(f) to the
contrary notwithstanding, the obligation of Covance or Variagenics, or their
Affiliates, to enter into any IPA shall be subject to the receipt by such party
of the benefit of such contractual provisions (whether as a third party
beneficiary or otherwise), as such party shall determine in its sole judgment as
are necessary to protect its interests.

      (i) Non-Alliance Sales. Covance shall pay to Variagenics a fee equal to
[      ] ("Variagenics Non-Alliance Fees"). The foregoing notwithstanding, no
Variagenics Non-Alliance Fees shall be payable by Covance to Variagenics with
respect to any Sponsor to which Covance or its Affiliates has marketed or is
marketing the service which generated the applicable Net Sales independent of
the contact initiated by Variagenics. Covance acknowledges that in entering into
this Agreement Variagenics is not guaranteeing a minimum amount of Net Sales as
described in this Section 5(i). Variagenics acknowledges that in entering into
this Agreement Covance is not guaranteeing to Variagenics any minimum amount of
Variagenics Non-Alliance Fees and is not agreeing that it will perform any of
the services indicated on Exhibit D for any Sponsor.

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6. Advisory Committee. Promptly after execution of this Agreement, Variagenics
and Covance shall establish an Advisory Committee (the "Committee"), which shall
consist of two representatives of each of the parties or such other number as
the parties may mutually agree. The purpose of the Committee shall be to
determine the nature and scope of services to be subject to the Alliance, and
address such other matters as the parties may mutually agree. Each of
Variagenics and Covance shall bear the expenses for their members' participation
in the Committee, including any travel costs.

7. Fees.

      (a) Variagenics Fees and Variagenics Non-Alliance Fees. Covance shall send
to Variagenics a statement within thirty (30) days after the end of each
calendar quarter of the Net Sales during such quarter with respect to which
Variagenics is entitled to a Variagenics Fee and a Variagenics Non-Alliance Fee
and the Variagenics Fees and Variagenics Non-Alliance Fees therefor, accompanied
by payment of such Fees (which may be by wire transfer). The foregoing
notwithstanding, Covance shall have the right to withhold from any payment to
Variagenics the amounts to be applied to the repayment of advances provided for
in Section 3(c).

      (b) Covance Fees. Variagenics shall send to Covance a statement within 30
days after the end of each calendar quarter of the Net Sales during such quarter
with respect to which Covance is entitled to a Covance Fee and the Covance Fees
therefor, accompanied by payment of such Covance Fees (which may be by wire
transfer).

      (c) Disputes. All such statements shall include reasonable detail as to
the services provided, and shall be certified by an officer of the party to be
correct to the best of such party's knowledge and information. Any objection to
such Fees shall be given in writing by the objecting party within 30 days after
such statement has been sent and shall include a statement as to the basis of
any such objection. The parties shall attempt in good faith to resolve such
objections. If the parties are unable to resolve such objections within 30 days
of receipt by the applicable party of such objection, then the dispute shall be
resolved in accordance with the provisions of Section 19.

      (d) Termination. The obligation to pay Variagenics Non-Alliance Fees and
Covance Fees shall survive any termination of this Agreement, but only with
respect to applicable written agreements pursuant to which such Fees will be
generated entered into prior to any termination of this Agreement. No
Variagenics Non-Alliance Fees or Covance Fees shall be payable with respect to
agreements entered into after any such termination.

8. Exclusivity. During the Term, Variagenics and its Affiliates shall not,
directly or indirectly, either alone or in conjunction with any other person or
entity, (i) enter into any alliance, partnership, joint venture, distribution or
similar arrangement or agreement with any person or entity for the purpose of
providing Pharmacogenomic Lab Services or (ii) license any Variagenics Know-How
to any person or entity for the purpose of providing Pharmacogenomic Lab
Services, except as set forth in the next sentence. Variagenics and its
Affiliates may, however, license Variagenics Know-How to a Sponsor in connection
with a specific Product Development Program to obtain Pharmacogenomic Lab
Services using such Variagenics Know-

                                                                              10
<PAGE>

How from any central laboratory of the Sponsor's choice or for the Sponsor to
use itself. In addition, during the Term, Variagenics and its Affiliates shall
not, directly or indirectly, provide Pharmacogenomic Lab Services to a Sponsor
for a specific Product Development Program, unless (i) Variagenics has offered
Covance and its Affiliates the opportunity to provide the Pharmacogenomic Lab
Services for such Product Development Program and they have declined to provide
such services or Covance and its Affiliates do not have the necessary technology
or intellectual property rights or otherwise cannot meet the Sponsor's
specifications for such services, (ii) the Sponsor does not wish to acquire the
Pharmacogenomic Lab Services for such Product Development Program from Covance
or its Affiliates, (iii) Covance or its Affiliates are marketing or performing
substantially similar Pharmacogenomic Lab Services which do not utilize
Variagenics Know-How, or (iv) such Pharmacogenomic Lab Services are furnished
pursuant to a written proposal or agreement which is disclosed on Exhibit E, all
of which predate this Agreement; provided, that in the case of clause (i),
Variagenics' right to perform such services shall only apply if the
Pharmacogenomic Lab Services are performed by Variagenics on substantially the
same terms as the specifications last provided to Covance prior to Covance's
declining to provide such services or Covance's decision that it does not have
the necessary technology or rights or cannot meet such specifications. In
addition, except as may be mutually agreed to by the parties, during the Term,
Variagenics and its Affiliates shall not, directly or indirectly, provide
Pharmacogenomic Lab Services to any person or entity which is not a "Sponsor" as
provided in the definition thereof. No Employees or FTEs may be used by
Variagenics or its Affiliates to provide such Pharmacogenomic Lab Services.

9. Representations; Covenants.

      (a) Variagenics Representations. Variagenics represents and warrants to
Covance that: it is duly organized, validly existing and in good standing under
the laws of the State of Delaware; it has taken all actions necessary to secure
all approvals required to be secured by it in connection with the transactions
contemplated hereby; the execution, delivery and performance of this Agreement
has been duly authorized by all necessary corporate, shareholder and other
action; this Agreement has been duly executed and delivered and constitutes its
legal, valid and binding obligation, enforceable against it in accordance with
its terms; the execution, delivery and performance of this Agreement does not
violate any agreement to which it is a party or by which it is bound or any law,
order or decree applicable to it, or any provision of its charter documents or
bylaws; no third party has asserted in writing to Variagenics that the
Variagenics Know-How infringes upon any intellectual property rights that are
owned or claimed by such third party, and to the best knowledge of Variagenics,
the Variagenics Know-How does not infringe upon any intellectual property rights
that are owned or claimed by any third party; and it shall obtain and shall
maintain in full force and effect all permits, licenses and other required
governmental approvals necessary to perform Variagenics Lab Services.
Variagenics further represents and warrants that neither it nor its Affiliates
is currently a party to any alliance, partnership, joint venture, distribution
or similar arrangement or agreement, or any license, of the nature described in
the first sentence of Section 8, or any arrangement or agreement to provide
Pharmacogenomic Lab Services to any Sponsor, and it does not have outstanding
any proposal for any of the foregoing, except for agreements listed on Exhibit E
and proposals for specific services that propose a price for such services and
which are listed on Exhibit E. Variagenics has the right to license to Covance
all of the presently existing Variagenics Know-How and will have

                                                                              11
<PAGE>

the right to license to Covance all of the Variagenics Know-How developed after
the date hereof that is owned by Variagenics, including in each case after the
termination of this Agreement as provided in Section 2(a).

In addition, Variagenics represents and warrants to Covance that Variagenics has
obtained an aggregate of at least $10,000,000 in equity or debt financing after
July 20, 1999 which is "new" money (i.e., the proceeds of such financing are not
being used to replace, retire or refinance existing debt or equity of
Variagenics).

      (b) Covance Representations. Covance represents and warrants to
Variagenics that: it is duly organized, validly existing and in good standing
under the laws of the State of Delaware; it has taken all actions necessary to
secure all approvals required to be secured by it in connection with the
transactions contemplated hereby; the execution, delivery and performance of
this Agreement by it has been duly authorized by all necessary corporate,
shareholder and other action; this Agreement has been duly executed and
delivered by it and constitutes the legal, valid and binding obligation,
enforceable against it in accordance with its terms; the execution, delivery and
performance of this Agreement does not violate any agreement to which it is a
party or by which it is bound or any law, order or decree applicable to it, or
any provision of its charter documents or bylaws; no third party has asserted in
writing to Covance that the Covance Know-How infringes upon any intellectual
property rights that are owned or claimed by such third party, and to the best
knowledge of Covance, the Covance Know-How does not infringe upon any
intellectual property rights that are owned or claimed by any third party; and
it has and shall maintain in full force and effect all permits, licenses and
other required governmental approvals necessary to perform Pharmacogenomic Lab
Services. Covance has the right to license to Variagenics all of the presently
existing Covance Know-How and will have the right to license to Variagenics all
of the Covance Know-How developed after the date hereof that is owned by
Covance.

10. Review. In addition to the rights set forth in Section 7(c), the parties
agree that each party shall have the right at its sole cost and expense to have
an independent accountant, reasonably satisfactory to the party whose books are
being reviewed, review the financial books and records of the other and its
Affiliates at such times as the parties shall reasonably agree and upon
reasonable notice to the other for the sole purpose of verifying the
determination of the applicable Net Sales, and the Covance Fees and Variagenics
Fees. In addition, Covance shall have the right to have such accountant review
such appropriate books and records of Variagenics and its Affiliates as are
necessary to verify obligations with respect to Employees and FTEs set forth in
Section 3.

11. Indemnification.

      (a) Covance Indemnification. Covance shall indemnify, defend and hold
harmless Variagenics and its Affiliates and their respective officers,
directors, employees and agents from, against and in respect of any and all
losses, damages, costs or expenses (including reasonable attorney's fees) (a
"loss") arising from any claim, action, suit, assessment, proceeding or demand
(a "Claim") asserted by a third party resulting from, relating to or arising out
of (i) the negligence, gross negligence or intentional misconduct or inaction of
Covance or any of its

                                                                              12
<PAGE>

Affiliates in the performance of their obligations under this Agreement or any
IPA, or the breach of any representation, warranty, covenant or agreement of
Covance or any of its Affiliates in the performance of their obligations under
this Agreement or any IPA; provided, that if such Loss or Claim arises in whole
or in part from the negligence, gross negligence or intentional misconduct or
inaction of Variagenics or any of its Affiliates then the amount of the Loss or
Claim that Covance shall indemnify Variagenics and its Affiliates for pursuant
to this Section 11 shall be reduced by an amount in proportion to the percentage
of Variagenics' or its Affiliates' responsibility for such Loss or Claim as
determined by a court of competent jurisdiction in a final and non-appealable
decision or, if available, pursuant to the arbitration provisions of Section 19
hereof, or in a binding settlement between the parties or (ii) any actual or
alleged infringement by the Covance Know-How which is licensed to Variagenics
hereunder of any intellectual property rights that are owned or claimed by any
third party.

      (b) Variagenics Indemnification. Variagenics shall indemnify, defend and
hold harmless Covance and its Affiliates and their respective officers,
directors, employees and agents from, against and in respect of any and all
Losses arising from any Claim asserted by a third party resulting from, relating
to or arising out of (i) the negligence, gross negligence or intentional
misconduct or inaction of Variagenics or any of its Affiliates in the
performance of their obligations under this Agreement or any IPA, or the breach
of any representation, warranty, covenant or agreement of Variagenics or any of
its Affiliates in the performance of their obligations under this Agreement or
any IPA; provided, that if such Loss or Claim arises in whole or in part from
the negligence, gross negligence or intentional misconduct or inaction of
Covance or any of its Affiliates then the amount of the Loss or Claim that
Variagenics shall indemnify Covance and its Affiliates for pursuant to this
Section 11 shall be reduced by an amount in proportion to the percentage of
Covance's or its Affiliates' responsibility for such Loss or Claim as determined
by a court of competent jurisdiction in a final and non-appealable decision or,
if available, pursuant to the arbitration provisions of Section 19 hereof, or in
a binding settlement between the parties or (ii) any actual or alleged
infringement by the Variagenics Know-How of any intellectual property rights
that are owned or claimed by any third party.

      (c) Third Party Claims. Upon receipt of notice of any Claim brought or
asserted against any party hereto by any third party which may give rise to a
right of indemnity from the other party or parties hereto, the party seeking
indemnification (the "Indemnified Party") shall give prompt written notice
thereof to the other party or parties (the "Indemnifying Party") with a claim
for indemnity; provided, that failure to give prompt notification shall not
affect the indemnification provided hereunder except to the extent the
Indemnifying Party shall have been actually prejudiced as a result of such
failure. Such claim for indemnity shall indicate the nature of the Claim and the
basis therefore. The Indemnifying Party shall have ten days from its receipt of
the notice of the Claim to notify the Indemnified Party whether or not the
Indemnifying Party elects, at its sole cost and expense, to defend the
Indemnified Party hereunder against such Claim; provided, that the Indemnified
Party is authorized, but not obligated, prior to notification from the
Indemnifying Party of its desire to defend the Claim, to file any motion, answer
or other pleading that it shall deem necessary or appropriate to protect its
interest.

                                                                              13
<PAGE>

The Indemnifying Party shall be permitted to defend the Claim if it so elects,
provided that (i) the Indemnified Party is given the right to participate in the
defense of such Claim at its own cost and expense, (ii) the Indemnifying Party
conducts the defense of such Claim with due regard for the business interests
and potential related liabilities of the Indemnified Party and (iii) the
Indemnifying Party will, prior to making any settlement, consult with the
Indemnified Party as to the terms of such settlement. The Indemnified Party
shall have the right, at its election, to release and hold harmless the
Indemnifying Party from its obligations hereunder with respect to such Claim and
assume the complete defense of the same in return for payment by the
Indemnifying Party to the Indemnified Party of the amount of any settlement
offer by the Indemnifying Party. The Indemnifying Party will not, in defense of
any such Claim, except with the consent of the Indemnified Party, consent to the
entry of any judgment or enter into any settlement which (i) does not include,
as an unconditional term thereof, the giving by the third party to the
Indemnified Party of a release from all liability in respect thereof or (ii)
imposes any obligation on the Indemnified Party. After notice to the Indemnified
Party of the Indemnifying Party's election to assume the defense of such Claim,
the Indemnifying Party shall be liable to the Indemnified Party for such legal
or other expenses subsequently incurred at the request of the Indemnifying Party
by the Indemnified Party in connection with the defense thereof. As to those
Claims with respect to which the Indemnifying Party does not elect to assume
control of the defense, the Indemnified Party will afford the Indemnifying Party
an opportunity to participate in such defense, at the Indemnifying Party's own
cost and expense, and will not settle or otherwise dispose of any of the same
without the consent of the Indemnifying Party.

      (d) Direct Claims. If either party (a "Non-Breaching Party") shall have a
claim against the other party (a "Breaching Party") resulting from, relating to
or arising out of any breach of the Breaching Party's representations,
warranties, covenants or agreements in or under this Agreement, or the
negligence, gross negligence or intentional misconduct or inaction of the
Breaching Party or any of its Affiliates under this Agreement or IPA, and which
does not involve a Claim being brought or asserted by a third party (a "Direct
Claim"), then the Non-Breaching Party shall promptly send written notice thereof
to the Breaching Party; provided, that failure to give prompt notification shall
not affect the rights of the Breaching Party except to the extent the
Non-Breaching Party shall have been actually prejudiced as a result of such
failure. If the Breaching Party does not notify the Non-Breaching Party within
thirty (30) days from its receipt of the notice of the Direct Claim that it
disputes such Direct Claim, then the amount of the Direct Claim shall be deemed
an obligation of the Breaching Party hereunder. If the Breaching Party notifies
the Non-Breaching Party that it disputes such Direct Claim, then the matter will
be resolved as set forth in Section 19. The substantially prevailing party in
any dispute involving a Direct Claim shall be entitled to recover its reasonable
attorneys' fees and all reasonably related costs (including out of pocket
expenses), in addition to any other remedies at law or in equity.

      (e) Payment of Obligations. If an Indemnifying Party or Breaching Party is
required to make any payment under this Section, the Indemnifying Party or
Breaching Party shall promptly pay the Indemnified Party or the Non-Breaching
Party the amount so determined. If there should be a dispute as to the amount of
any obligation owed under this Section, the Indemnifying Party or Non-Breaching
Party shall nevertheless pay when due such portion, if any, of the obligation as
shall not be subject to dispute. The difference, if any, between the

                                                                              14
<PAGE>

amount of the obligation ultimately determined as properly payable under this
Section and the portion, if any, previously paid shall bear interest as provided
in Section (f) below.

      (f) Failure to Pay. If all or part of any obligation under this Agreement
is not paid when due, then the Indemnifying Party or the Breaching Party shall
pay the Indemnified Party or the Non-Breaching Party interest on the unpaid
amount of the obligation for each day from the date the amount became due
through the date on which payment in full is made, payable on demand, at the
fluctuating rate per annum publicly announced on the date of the claim for
indemnification under this Agreement by Bank of America, N.A. (or its
successors) as its so-called "prime rate."

      (g) Breach by Indemnified Party or the Non-Breaching Party. A breach by
the Indemnified Party or the Non-Breaching Party of its obligations under this
Agreement shall not relieve the Indemnifying Party or the Breaching Party of its
obligations under this Section unless such breach was solely responsible for the
Loss or Claim as determined by a court of competent jurisdiction in a final and
non-appealable decision, or, if available, pursuant to the arbitration
provisions of Section 19 hereof, or in a binding agreement between the parties.

12. Use of Names; Website. (a) Variagenics and Covance agree each may use the
name and logo of the other in its marketing and promotional materials, but
solely in reference to the existence and services of the Alliance and only after
written approval by the other party of the text of such materials in which the
other party's name is used. The parties shall issue a mutually acceptable joint
press release in a form agreed prior to the execution hereof promptly after the
execution hereof. All subsequent press releases relating to this Agreement or
the Alliance shall be subject to the written approval of both parties. The
foregoing notwithstanding, once a particular item of information has been
disclosed as permitted by this Section 12, either party may make subsequent
disclosure of such item of information in the same or similar context without
approval of the other party, except with respect to press releases that include
any information other than the fact that the Alliance is in existence and the
general subject matter of the Alliance. Except as specifically set forth herein,
no party shall otherwise use the name of the other parties, including any
tradename, service mark, trademark, trade name, symbol or logo, in any
advertising or sales promotional materials or in any publication without prior
written consent.

      (b) Website. Variagenics agrees that in maintaining its website at
www.variagenics.com, or any other website it may directly or indirectly control,
Variagenics shall, subject to the requirements of Section 12(a), display the
Covance name and logo (or any successors thereto) (including a hyperlink to
www.covance.com or any successor website) and describe the existence of the
relationship created by this Agreement, in a substantially equivalent manner as
is described any relationship which Variagenics may have with any other party
regarding Variagenics Lab Services and is displayed the name and logo of any
such party. Nothing in this Section 12(b) shall require Variagenics to display
any of the foregoing with respect to Covance if none of the foregoing are
displayed with respect to any party with whom Variagenics has such a
relationship.

                                                                              15
<PAGE>

13. Property Rights. All Variagenics Know-How, Covance Know-How and other
information provided by one party to the other party shall remain the exclusive
property of the providing party, subject to the rights therein granted in this
Agreement, and shall be kept confidential as provided in Section 14.

14. Confidential Information.

      (a) Confidentiality Obligation. It is anticipated that in the performance
of this Agreement, Covance and its Affiliates and Variagenics and its Affiliates
shall provide to the other or the other's Affiliates access to certain
information ("Proprietary Information") which the discloser considers
proprietary, which may include information of third parties, including Sponsors
(each party disclosing information and its Affiliates is referred to as a
"Discloser" and each party and its Affiliates receiving information is referred
to as a "Recipient"). For purposes hereof, Proprietary Information shall include
any such information disclosed by one party to the other party at any time on or
after June 17, 1998. During the period from the date of this Agreement through
the later of eight (8) years after the date of this Agreement and three (3)
years after the termination of this Agreement (or such later period as may be
required by a Sponsor, if applicable), the Recipient of Proprietary Information
shall use such Proprietary Information solely for the purposes of fulfilling the
Recipient's obligations under this Agreement or an applicable IPA, and shall
keep confidential and not disclose such Proprietary Information to any other
person or entity for any purpose; provided, that the foregoing limitations on
use and requirements of confidentiality and non-disclosure shall not terminate
with respect to Covance Know-How or Variagenics Know-How. In addition, each
party represents to the other that any Proprietary Information of the other
party received by such party between June 17, 1998 and the date of this
Agreement has been used, kept and not disclosed as is required by this Section
14(a) with respect to Proprietary Information disclosed after the date of this
Agreement. Proprietary Information shall include the material (including
economic) terms and conditions of this Agreement.

      (b) Exceptions. The obligations contained in this Section shall not apply
with respect to Proprietary Information which (i) is publicly available prior to
the date of this Agreement or becomes publicly available thereafter through no
breach of this Agreement by the Recipient, (ii) was known to the Recipient prior
to the date of disclosure or becomes known to the Recipient thereafter from a
third party not under an obligation of confidentiality with respect to such
information known to the Recipient; (iii) is disclosed with the written
permission of the Discloser; (iv) is independently developed or conceived by the
Recipient by persons or entities having no access to the Proprietary Information
of the Discloser; or (v) the Recipient is obligated to disclose pursuant to
applicable law, regulation, rule, subpoena, order, decree, decision or other
legal process, or by stock exchange rules, provided, that Recipient promptly
notifies Discloser of any such requirement and cooperates, at the Discloser's
expense, with the Discloser in seeking a protective order with respect to such
Proprietary Information. In addition, either party may disclose the terms
(including economic terms) of this Agreement to existing or prospective
investors, lenders or other sources of financing; provided, that any such
recipient of such disclosures is subject to a reasonable confidentiality
agreement, and under no circumstances may disclosures be made to any existing or
prospective investor, lender or other source of financing who performs or whose
Affiliates perform Product Development Services.

                                                                              16
<PAGE>

      (c) Remedies. Each party hereto acknowledges and agrees that the
disclosure of Proprietary Information in violation of the terms of this
Agreement without the express written permission of the Discloser may cause
irreparable harm and that the breach or threatened breach of the provisions of
this Section will entitle said party to injunctive relief, in addition to any
other equitable or legal remedies that may be available to it.

15. Insurance.

      (a) Variagenics. Variagenics shall, at its sole cost and expense, procure
and maintain in full force and effect during the Term and for a three-year
period thereafter, comprehensive general liability and professional liability
insurance. Such coverage shall be maintained at a minimum with limits of
$1,000,000 per occurrence and $5,000,000 in the aggregate. Covance shall be
named as an additional insured on such policies. Variagenics shall provide
Covance with a certificate of insurance evidencing the coverage required by this
Section upon request.

      (b) Covance. Covance shall, at its sole cost and expense, procure and
maintain in full force and effect during the Term and for a three-year period
thereafter, comprehensive general liability and professional liability
insurance. Such coverage shall be maintained at a minimum with limits of
$1,000,000 per occurrence and $5,000,000 in the aggregate. Variagenics shall be
named as an additional insured on such policies. Covance shall provide
Variagenics with a certificate of insurance evidencing the coverage required by
this Section upon request.

      (c) Amendments to Insurance. These policies shall not be changed (other
than any change that is not material and adverse) or canceled during the Term
without fifteen (15) days prior written notice to the other party. The
procurement or maintenance of such insurance, however, shall not in any way be
construed or be deemed to limit or relieve any party from any obligation, risk,
or liability assumed under the terms of this Agreement.

16. Term and Termination.

      (a) Term. Subject to earlier termination as provided elsewhere in this
Agreement, or unless otherwise agreed to by the parties, this Agreement shall be
effective for a period of five (5) years from the date of this Agreement, and
thereafter this Agreement shall be effective and automatically be renewed for
successive terms of one (1) year provided that neither party gives the other
party written notice of its intent not to renew this Agreement at least ninety
(90) days prior to the expiration of the current term (such period of
effectiveness, the "Term"). All terms and conditions set forth in this Agreement
shall apply to any such renewal term(s).

      (b) Termination--Agreement. Notwithstanding the provisions of Section
16(a), either party may terminate this Agreement upon the occurrence of any of
the following: the material breach of the other party's representations,
warranties, covenants or agreements contained in this Agreement or any IPA and
such party's failure to remedy any such breach within sixty (60) days after
written notice thereof by the non-breaching party; the other party's committing
any act of intentional, willful or negligent misconduct in the performance of
its duties or obligations under this Agreement or any IPA, and such party's
failure to remedy any such misconduct within sixty

                                                                              17
<PAGE>

(60) days after written notice thereof by the non-breaching party; the other
party's insolvency; the initiation of bankruptcy or receivership proceedings by
or against the other party (which are not dismissed in forty-five (45) days);
the other party makes a general assignment for the benefit of creditors or a
receiver is appointed for it; or the assignment of the other party's assets for
the benefit of creditors. If this Agreement shall terminate, whether pursuant to
this Section 16(b) or other provisions of this Agreement, prior to termination
of any IPA and completion of the obligations thereunder, then, subject to
termination of any IPA as provided in Section 16(c), the parties shall complete
their obligations under any IPA then in effect subject to the terms and
conditions of this Agreement.

      (c) Termination--IPAs. Covance or Variagenics (as the party or primary
party to the agreement with the Contracting Sponsor with respect to the
applicable Product Development Program) may terminate any IPA when the
Contracting Sponsor has terminated the applicable Product Development Program or
any portion thereof to which the IPA relates (regardless of the reason for such
termination by the Contracting Sponsor), or when the other party has materially
breached any of its representations, warranties, covenants or agreements
contained in such IPA or committed any act of intentional, willful or negligent
misconduct in the performance of its duties or obligations under such IPA. If
any IPA is terminated prior to the completion of the Variagenics Lab Services or
Pharmacogenomic Lab Services provided for therein, Variagenics shall cooperate
with Covance and its Affiliates in concluding such Variagenics Lab Services, or
Covance or its Affiliates shall cooperate with Variagenics in concluding such
Pharmacogenomic Lab Services, as the case may be, as expeditiously as
practicable and in accordance with all applicable laws, rules and regulations.

      (d) Change of Control. (i) Subject to the following provisions in this
Section 16(d), Covance shall have the right in its absolute discretion to
terminate this Agreement and/or any or all IPAs in connection with a Change of
Control. If Variagenics expects there to be a Change of Control, Variagenics
shall provide to Covance prompt prior written notice of such expected event,
together with such information with respect thereto as Covance shall reasonably
request, which information Covance shall request in writing within 10 days of
such written notice; provided, that Variagenics shall notify Covance promptly in
writing if Taylor Crouch no longer is serving as President of Variagenics.
Within fifteen (15) days of receipt of such notice and information, Covance
shall give written notice to Variagenics as to whether or not Covance intends to
terminate this Agreement in connection with such Change of Control. If Covance
does not give a written response within such fifteen (15) days, or if Covance's
written response indicates it will not terminate this Agreement in connection
with the Change of Control, then Covance will have no right to terminate this
Agreement in connection with the Change of Control. If Covance's response
indicated it intends to terminate this Agreement in connection with the Change
of Control, then Covance shall have the right, exercisable within ten (10) days
after receipt of Variagenics' notice to Covance of the effectiveness of such
Change of Control, to immediately terminate this Agreement and/or any or all
IPAs in its absolute discretion. The foregoing notwithstanding, if the Change of
Control is completed on terms materially different than the terms indicated in
the notice provided for in the first sentence of this Section 16(d) and
information provided to Covance (a "Non-Compliant Change of Control"), then
Covance shall have the right to terminate this Agreement and/or any or all IPAs
in its absolute discretion within

                                                                              18
<PAGE>

forty-five (45) days after Covance has actual knowledge of the occurrence of the
Non-Compliant Change of Control.

            (ii) Covance shall also have the right to terminate this Agreement
and/or any or all IPAs in its absolute discretion in connection with a Change of
Control with respect to which Covance was not provided the notice and
information required by this Section 16(d) or, in the case of a Change of
Control under clause (v) of the definition thereof, as to which no satisfactory
replacement is obtained within the permitted one-hundred and eighty (180) day
period. Covance may exercise this right by written notice given at any time
prior to forty-five (45) days after receipt by Covance of all information with
respect to any such Change of Control Covance may reasonably request in writing,
which request shall be made by Covance within ten (10) days of Covance's receipt
of written notice from Variagenics of such Change of Control.

            (iii) Under all circumstances under this Section 16(d), Variagenics
will notify Covance immediately upon the effectiveness of any Change of Control,
and promptly provide such information as Covance shall reasonably request to
determine whether the Change of Control was a Non-Compliant Change of Control.

      (e) Survival of Obligations. Upon the termination or expiration of this
Agreement for any reason, all of the rights and obligations of the parties
hereto shall terminate, except that (i) except as otherwise provided for in this
Agreement, all licenses provided for in this Agreement shall continue after such
termination or expiration solely for use with respect to and until the
completion of all obligations to perform Pharmacogenomic Lab Services and
Research Lab Services under or in connection with this Agreement in effect on
the date of such termination or expiration, and (ii) such termination or
expiration shall not (a) relieve any party from any liability arising from any
breach of this Agreement, (b) affect the right of either party to receive
payment, subject to the limitations contained herein, of all Covance Fees,
Variagenics Fees or Variagenics Non-Alliance Fees, as applicable, or repayment
of the advances provided for in Section 3(c), or (c) eliminate any party's
obligations under Sections 2(a), 2(c), 2(d), 7, 11, 12, 13, 14, 15, 16, 17, 18,
19, 20 and 21 of this Agreement.

17. No Consequential Damages. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY
CONSEQUENTIAL, INCIDENTAL, INDIRECT OR SPECIAL DAMAGES SUFFERED BY THE OTHER
PARTY OR THEIR AFFILIATES AS A RESULT OF ANY BREACH BY SUCH PARTY OR ITS
AFFILIATES OF THEIR OBLIGATIONS HEREUNDER OR RELATED HERETO.

18. Nature of Relationship. The parties are independent contractors. Nothing in
this Agreement or otherwise shall constitute Covance or Variagenics or any of
their Affiliates as an employee, agent, joint venturer, partner, or servant of
the other or give any party the authority to make representations or agreements
on behalf of the other.

19. Arbitration. Except with respect to the seeking of injunctive relief and
specific performance in connection with the agreements contained in this
Agreement, and disputes involving third parties which must be resolved in a
court of competent jurisdiction, in the event any dispute shall arise between or
among the parties with respect to any of the terms and

                                                                              19
<PAGE>

conditions of this Agreement, then such dispute shall be submitted and finally
settled by arbitration in the vicinity of New York, NY, pursuant to the
prevailing rules of the American Arbitration Association. The arbitrators shall
include one nominee of Covance and one nominee of Variagenics and a third
individual jointly selected by these nominees, none of whom shall be affiliated
or associated with either party. In the event the respective nominees of Covance
and Variagenics are unable to jointly select such third individual, then Covance
and Variagenics shall request the American Arbitration Association in New York,
NY, to designate the third arbitrator. The arbitrators shall resolve the dispute
within sixty (60) days after the third arbitrator is chosen. The award rendered
by the arbitrators shall be final and binding upon the parties hereto, and
judgment upon the award rendered may be entered by either party in any court
that would ordinarily have jurisdiction over the parties or the subject matter
of the controversy or claim. The expense of such arbitration, including
attorneys' fees, shall be allocated between or among the parties as the
arbitrators shall decide.

20. Force Majeure. Each party shall be excused from performing its obligations
under this Agreement if its performance is delayed or prevented by any event
beyond its reasonable control, including, without limitation, acts of God, fire,
explosion, weather, disease, war, insurrection, civil strife, riots, government
action, or power failure, provided that such performance shall be excused only
to the extent of and during such disability. Any time specified for completion
of performance in this Agreement falling due during or subsequent to the
occurrence of any of such events shall be automatically extended for a period of
time equal to the period of such disability.

21. Miscellaneous.

      (a) Governing Law. This Agreement shall be governed, construed and
interpreted in accordance with the laws of New Jersey, without regard to its
principles of conflicts of laws.

      (b) Waiver. The waiver by any party or the failure by any party to claim a
breach of any provision of this Agreement shall not be deemed to constitute a
waiver or estoppel with respect to any subsequent breach or with respect to any
provision thereof.

      (c) Amendments. This Agreement may be amended only by a further written
agreement between authorized representatives of both parties.

      (d) No Assignment. Subject to Covance's right set forth in Section 16(d),
no party hereto may assign this Agreement or its rights or obligations hereunder
without the prior written approval of the other party, except that (i) either
party may assign this Agreement in connection with a sale of all or
substantially all of its assets or in connection with its merger or
consolidation and (ii) either party may assign this Agreement or its rights or
obligations hereunder to any wholly-owned subsidiary of such party who is
capable of performing all of the obligations of the assigning party hereunder.
Subject to the foregoing, all of the terms and provisions of this Agreement
shall be binding upon and inure to the benefit of and be enforceable by the
heirs, executors, legal representatives, successors and permitted assigns of the
parties.

      (e) Counterparts. This Agreement may be executed in counterparts, each of
which is an original, and all of which together shall be deemed to be one and
the same instrument. This

                                                                              20
<PAGE>

Agreement shall become binding when one or more counterparts taken together
shall have been executed and delivered by all of the parties.

      (f) Notices. Any notice, request or other communication hereunder shall be
in writing and shall be deemed given only if delivered personally to the address
set forth below (to the attention of the individual identified below) or sent by
telecopier, recognized courier providing evidence of receipt, or by registered
or certified mail, postage prepaid, as follows:

If to Covance, to:                  With a required copy to:

Covance Central Laboratory          210 Carnegie Center
Services Limited Partnership        Princeton, NJ 08540
8211 SciCor Drive                   Telecopier No. (609) 452-9865
Indianapolis, IN 46214              Attention: Mark R. Eisenach and
Attention: William Campbell                    Jeffrey S. Hurwitz

If to Variagenics, to:              With a required copy to:

Taylor Crouch                       Jeffrey M. Wiesen
President                           Mintz, Levin, Cohn, Ferris, Glovsky
60 Hampshire Street                   and Popeo, P.C.
Cambridge, MA 02139                 One Financial Center
Telecopier No.: (617) 588-5399      Boston, MA 02111
                                    Telecopier No.: (617) 542-2241

or to such other address or attention as the addressee may have specified in a
notice duly given to the sender and to counsel as provided herein. Such notice,
request, or other communication will be deemed to have been given as of the date
so delivered or, if telecopied, upon telephone confirmation of receipt, or, if
sent by courier, the date so delivered, or if mailed, five business days after
the date so mailed.

      (g) No Third-Party Beneficiaries. Except as set forth in Section 11 and
with respect to Sponsors as specifically provided elsewhere in this Agreement,
this Agreement is for the sole benefit of the parties hereto and their
respective heirs, executors, legal representatives, successors and permitted
assigns, and no party intends to confer any benefit under this Agreement on any
person or entity other than the parties hereto or their successors in interest
and nothing contained herein shall be deemed to confer any such benefit on any
such person or entity, and nothing herein shall be construed as conferring and
is intended to confer any rights on any other person or entity.

      (h) Entire Agreement. This Agreement, and the other agreements and
documents referenced herein, set forth the entire agreement of the parties
hereto with respect to the subject matter hereof. Any prior agreements or
understandings between the parties hereto regarding the subject matter hereof,
whether oral or written, are superseded by this Agreement.

      (i) Section Headings. All section headings are for convenience only and
shall in no way affect the meaning or interpretation of this Agreement or any
provisions hereof.

                                                                              21
<PAGE>

      (j) Fees and Expenses. Each party hereto will pay all fees and expenses
which such party incurs in connection with the negotiation of this Agreement.

      (k) Invalidity. If any term or provision of this Agreement, or the
application thereof to any person, entity, property or circumstance shall to any
extent be invalid or unenforceable, the remainder of this Agreement or the
application of such term or provision to persons, entities, property or
circumstances other than those as to which it is invalid or unenforceable shall
not be affected thereby, and each term and provision of this Agreement shall be
valid and enforced to the fullest extent permitted by law.

      (1) Joint Effort. The preparation of this Agreement and the other
agreements contemplated herein has been the joint effort of the parties, and the
resulting documents shall not be construed more severely against any party or
parties than against the other parties.

      (m) Hiring of Employees. During the Term, the employees of Variagenics or
any of its Affiliates who come to know any of the employees of Covance or any of
its Affiliates solely in connection with the Alliance shall not, while employed
by Variagenics or any of its Affiliates, solicit for employment any of the
employees of Covance or any of its Affiliates such employees of Variagenics and
its Affiliates came to know. During the Term, the employees of Covance or any of
its Affiliates who come to know any of the employees of Variagenics or any of
its Affiliates solely in connection with the Alliance shall not, while employed
by Covance or any of its Affiliates, solicit for employment any of the employees
of Variagenics or any of its Affiliates such employees of Covance and its
Affiliates came to know. The foregoing prohibitions shall not apply to any
solicitation to hire any such employee after such employee is no longer employed
by the applicable entity for at least three (3) months, or to advertisements in
trade magazines, use of search firms and other conventional means of obtaining
employees unless specifically directed at employee(s) which may not be solicited
pursuant to these provisions.

During the Term and for six months thereafter, the employees of Covance or any
of its Affiliates who come to know any of the Employees or the FTEs solely in
connection with the Alliance shall not, while employed by Covance or any of its
Affiliates, hire any Employees or FTEs such employee of Covance or its
Affiliates came to know, unless, in either case, such Employee's or FTE's
employment with Variagenics terminated at least six months before his or her
date of hire. For purposes of this Section 21(m) only, FTEs shall mean only
those FTEs whose percentage of time dedicated to the Alliance has been at least
30% for at least six consecutive months at any time during the previous twelve
months.

      (n) Research Tax Credit. Each party agrees that the party which provides
the funding pursuant to Section 3 for Employees or FTE's shall be the sole party
entitled to make any claim for any Federal or state research tax credit with
respect to such funding.

<PAGE>

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

Covance Inc.                           Variagenics, Inc.

/s/  Mark Eisenach                     /s/ Taylor J. Crouch
---------------------------------      ---------------------------------
Name:  Mark Eisenach                   Name:  Taylor J. Crouch
Title: Corporate V.P.                  Title: President

                                                                              22
<PAGE>

                                    Exhibit A

                                   Definitions

"Affiliate" means, with respect to a person or entity, (a) any other person or
entity that, directly or indirectly through one or more intermediaries, controls
such person or entity (a "Controlling Person") or (b) any other person or entity
(other than such person or entity) which is controlled by or is under common
control with a Controlling Person. As used herein, the term "control" and with
correlative meaning "controlled" and "under common control" means possession,
direct or indirect, of the power to direct or cause the direction of the
management or policies of a person or entity, whether through the ownership of
voting securities, by contract or otherwise.

"Agreement" is defined in the heading of this Agreement.

"Alliance" is defined in the background section of this Agreement.

"Breaching Party" is defined in Section 10(d).

"Central Labs Affiliates" means any Affiliate of Covance Central Labs that
provides central laboratory services to Sponsors the same or similar to those
provided by Covance Central Labs on the date of this Agreement.

"Change of Control" shall mean the occurrence of any of the following: (i) fewer
than three of the members of the Board of Directors of Variagenics immediately
after Variagenics' next financing (whether debt or equity) (or successors
employed by the same stockholder in the case of directors who are employees of
stockholders) continue to serve on the Board of Directors of Variagenics; (ii)
capital stock of Variagenics representing more than one-half of the right to
vote for the election of directors of Variagenics shall no longer be owned by
the shareholders who owned such capital stock immediately after Variagenics'
next equity financing; (iii) the sale of all or a material part of the assets of
Variagenics; (iv) any merger or consolidation of Variagenics with any other
person or entity in which Variagenics is not the surviving corporation in the
merger or consolidation or in which shareholders of Variagenics immediately
prior to the merger or consolidation do not hold a majority of the shares of the
surviving entity immediately after the merger or consolidation; or (v) Taylor
Crouch is not serving as President of Variagenics and is not replaced in this
capacity by a person reasonably satisfactory to Covance within one hundred and
eighty days (180) days.

"Claim" is defined in Section 11(a).

"Committee" is defined in Section 6(a).

"Contracting Sponsor" means a Sponsor which contracts for Research Lab Services,
Pharmacogenomic Lab Services, or both, hereunder; provided, that no person or
entity that performs or whose Affiliates perform Product Development Services,
other than Covance and its Affiliates, shall become a Contracting Sponsor
hereunder, unless the parties mutually agree.

                                                                              23
<PAGE>

"Controlling Person" is defined in the definition of Affiliate.

"Covance" is defined in the heading of this Agreement.

"Covance Central Labs" means Covance Central Laboratory Services Limited
Partnership, an Affiliate of Covance in which Covance owns, directly and
indirectly, 100% of the equity interests.

"Covance Fees" is defined in Section 5(c).

"Covance Know-How" means all patents, copyrights and applications for any of the
foregoing, and any trade secrets, technology, know-how, inventions, discoveries,
ideas, improvements, processes, computer programs, software, databases, and
Standard Operating Procedures, used, licensed, leased or owned, directly or
indirectly, by Covance or its Affiliates and used in providing or relating to
central laboratory services, whether now existing or developed at any time
during the Term.

"Cumulative Alliance Net Sales" is defined in Section 3(d).

"Direct Claim" is defined in Section 11(d).

"Discloser" is defined in Section 14(a).

"Employees" is defined in Section 3(a).

"Excluded Net Sales" is defined in Section 3(c).

"FTEs" is defined in Section 3(b).

"Indemnified Party" is defined in Section 11(c).

"Indemnifying Party" is defined in Section 11(c).

"IPA" means a separate written individual project agreement in the form of
Exhibit F hereto between Covance or any of its Affiliates and Variagenics or any
of its Affiliates, which shall incorporate the terms and provisions of the
applicable Price Quotation.

"Loss" is defined in Section 11(a).

"Net Sales" means gross sales, less credits, allowances, and taxes with respect
to such sales, if any, when payment is received therefor by the applicable
party.

"Non-Breaching Party" is defined in Section 11(d).

"Non-Compliant Change of Control" is defined in Section 16(d).

                                                                              24
<PAGE>

"Pharmacogenomic Lab Services" means (i) detection in human samples of
previously identified gene sequence variances as part of a Sponsor-funded
Product Development Program, (ii) developing and validating assays for metabolic
enzymes, proteins and pharmacogenetic markers for the purpose of such detection
of variances and (iii) laboratory testing utilizing such validated assays as
part of a Product Development Program.

"Price Quotation" means a price quotation prepared by Variagenics or one of its
Affiliates indicating the work to be performed in connection with Variagenics
Lab Services for a particular Sponsor, or a price quotation prepared by Covance
or one of its Affiliates indicating the work to be performed in connection with
Pharmacogenomic Lab Services for a particular Sponsor, and in each case the
costs and expenses to be incurred with such work, and the assumptions used in
developing the foregoing.

"Product Development Program" means a program to test a drug or therapeutic
medical device in humans for scientific evaluation or regulatory approval.

"Product Development Services" means services the same or similar to those
provided by Covance and its Affiliates now or hereafter at any time during the
Term to pharmaceutical, biotechnology and medical device companies and similar
entities, including preclinical studies, Phase I, II, III and IV clinical trial
services, pharmaceutical packaging services, biomanufacturing services, health
economic services and central laboratory services.

"Proprietary Information" is defined in Section 14(a).

"Recipient" is defined in Section 14(a).

"Research Lab Services" means variance discovery in specified genes on the
pathway of action of the Sponsor's drug. In general, Research Lab Services will
involve the following: working with the Sponsor's product development team,
Variagenics will select candidate genes which may affect drug action and
identify variances in these genes which occur in the normal population, through
experimentation using Variagenics' variance discovery platform and from
Variagenics' database of proprietary and public domain variances. Variagenics
will provide the Sponsor with an annotated summary of variances that may affect
drug action. Sponsors may be granted by Variagenics an option for a limited
period of time to obtain exclusive, co-exclusive or non-exclusive rights to the
use of variances discovered pursuant to their sponsorship, as agreed by
Variagenics and the Sponsor on a case-by-case basis.

"Sponsor" means a pharmaceutical, biotechnology or medical device company or
similar entity which engages in Product Development Programs; provided, that no
person or entity listed on Exhibit G hereto or any of their Affiliates, or any
successor to any such person or entity, shall be a Sponsor for any purpose under
this Agreement unless the parties mutually agree.

"Standard Operating Procedures" means the aggregation of the guidelines, rules
and regulations adopted or implemented at Covance and its Affiliates relating to
central lab services, as the same may be modified, amended or supplemented from
time to time, as submitted in writing to Variagenics, which may include
summaries thereof.

                                                                              25
<PAGE>

"Term" is defined in Section 16(a).

"Variagenics" is defined in the heading of this Agreement.

"Variagenics Alliance Know-How" means all Variagenics Know-How developed by the
FTEs (in their activities in support of the Alliance) and the Employees.

"Variagenics Fees" is defined in Section 2(c).

"Variagenics Gene Rights" means all proprietary gene sequence variances and
variance databases useful in demonstrating the effect of gene sequence variance
on drug action, which are owned or licensed by Variagenics or its Affiliates,
and which Variagenics or its Affiliates have the right to license to Sponsors.

"Variagenics Know-How" means all patents, copyrights, and applications for any
of the foregoing, and any trade secrets, technology, know-how, inventions,
discoveries, ideas, improvements, processes, computer programs, software and
databases, used, licensed, leased or owned, directly or indirectly, by
Variagenics or its Affiliates and used in providing or relating to
Pharmacogenomic Lab Services, whether now existing or developed at any time
during the Term, including all assays, and including all of the foregoing
developed by the FTEs and Employees, but excluding all Variagenics Gene Rights.

"Variagenics Non-Alliance Fees" is defined in Section 5(i).

"Variagenics Lab Services" means Pharmacogenomic Lab Services and/or Research
Lab Services provided by Variagenics and/or its Affiliates.

                                                                              26
<PAGE>

                                    Exhibit B

                                Covance Know-How

      (1)   Regulatory Compliance

--------------------------------------------------------------------------------
Procedure No.                                 Title
--------------------------------------------------------------------------------
100-200039-02         New York State Testing Personnel Documentation
--------------------------------------------------------------------------------
100-200441-01         Testing Delay Notification
--------------------------------------------------------------------------------
100-600802-05         Water Purity
--------------------------------------------------------------------------------
100-600803-04         Criteria for QC Range Changes
--------------------------------------------------------------------------------
100-600807-05         Westgard's MultiRule Quality Control
--------------------------------------------------------------------------------
100-600808-05         Corrective Action for Reporting Delays/Errors and
                      Regulatory Noncompliance
--------------------------------------------------------------------------------
100-600809-03         Periodic Review of Patient Results
--------------------------------------------------------------------------------
100-600809-06         Quality Control Calculation
--------------------------------------------------------------------------------
100-600811-04         Lost Specimen(s) Notification Policy
--------------------------------------------------------------------------------
100-600822-06         Pipette Calibration by Water Gravimetry
--------------------------------------------------------------------------------
100-600825-03         Result Verification
--------------------------------------------------------------------------------
100-600830-03         Requirements for Reagent Labeling, Logging and
                      Verification
--------------------------------------------------------------------------------
100-600833-03         Linearity Verification
--------------------------------------------------------------------------------
100-600837-04         Laboratory Operations During a Computer Failure
--------------------------------------------------------------------------------
100-600839-03         Pipette Calibration by Photometry
--------------------------------------------------------------------------------
100-600840-04         Pipet Washing
--------------------------------------------------------------------------------
100-600841-03         Standardization of Laboratory Thermometers
--------------------------------------------------------------------------------
100-600844-04         Timer Check
--------------------------------------------------------------------------------
100-600851-05         Waterbath Maintenance
--------------------------------------------------------------------------------
100-600853-06         Method Validation
--------------------------------------------------------------------------------
100-600857-02         Validation of New Instruments
--------------------------------------------------------------------------------
100-600858-03         Notification of Methodology Changes
--------------------------------------------------------------------------------
100-600859-03         Detection of Errors and Unusual Results
--------------------------------------------------------------------------------
100-600860-04         Proficiency Testing--Analytes Not Enrolled in
                      Proficiency Program
--------------------------------------------------------------------------------
100-600861-02         Centrifuge (Jouan) Maintenance and Operation
--------------------------------------------------------------------------------
100-600862-03         Quality Control Program Review
--------------------------------------------------------------------------------
100-600866-02         Reagent Water Policy
--------------------------------------------------------------------------------
100-600868-04         Criteria for Repeat Testing
--------------------------------------------------------------------------------
100-600870-04         External Quality Control Program
--------------------------------------------------------------------------------
100-600875-06         Proficiency Testing-External Program
--------------------------------------------------------------------------------
100-600882-02         Acid Cabinet Maintenance
--------------------------------------------------------------------------------
100-600883-01         Quick Reference Guides
--------------------------------------------------------------------------------
100-600884-02         Quality Control Plan for the Laboratory
--------------------------------------------------------------------------------
100-600886-02         Specimen Retention
--------------------------------------------------------------------------------
330-100004-01         Correction of Documents
--------------------------------------------------------------------------------
330-100011-01         Processing Standard Operating Procedures
--------------------------------------------------------------------------------
330-100012-01         Writing Standard Operating Procedures
--------------------------------------------------------------------------------

                                                                              27
<PAGE>

--------------------------------------------------------------------------------
Procedure No.                                 Title
--------------------------------------------------------------------------------
330-100020-01         Inspections--Scheduled and Unscheduled
--------------------------------------------------------------------------------
330-100022-02         Training Files
--------------------------------------------------------------------------------
330-100030-02         Record Retention
--------------------------------------------------------------------------------
330-100032-05         Archives--Use and Security
--------------------------------------------------------------------------------
330-100052-04         Confidentiality of Test Results
--------------------------------------------------------------------------------
330-100099-05         Complaint Management
--------------------------------------------------------------------------------
330-300376-07         Audit Process
--------------------------------------------------------------------------------
360-200439-01         Humidity and Temperature Monitoring
--------------------------------------------------------------------------------
350-380005-01         Pest Control
--------------------------------------------------------------------------------
355-101001-01         Bomb Threat
--------------------------------------------------------------------------------
355-101002-01         Spill Response
--------------------------------------------------------------------------------
355-101004-03         Incident and Accident Reports
--------------------------------------------------------------------------------
355-101006-02         Compressed Gas: Handling and Utilization
--------------------------------------------------------------------------------
355-101007-02         Electrical Safety
--------------------------------------------------------------------------------
355-101008-02         Lockout/Tagout-Control of Hazardous Energy Sources
--------------------------------------------------------------------------------
355-101010-02         Chemical Hygiene Plan--Training and Information on
                      Hazardous Chemicals
--------------------------------------------------------------------------------
355-101013-03         Chemical Hygiene Plan--Exposure Monitoring in the
                      Laboratory
--------------------------------------------------------------------------------
355-101014-02         Fire Emergency
--------------------------------------------------------------------------------
355-101016-02         Weather Emergency
--------------------------------------------------------------------------------
355-101017-03         Evacuation
--------------------------------------------------------------------------------
355-101018-02         Chemical Hygiene Plan--Housekeeping, Maintenance, and
                      Inspections
--------------------------------------------------------------------------------
355-101019-03         Chemical Hygiene Plan--Chemical Receipt, Distribution
                      and Storage
--------------------------------------------------------------------------------
355-101020-02         Chemical Hygiene Plan--Signs and Labels
--------------------------------------------------------------------------------
355-101021-02         Medical Emergency, Surveillance & Records
--------------------------------------------------------------------------------
355-101024-03         Visitor and Contractor Hazard Awareness
--------------------------------------------------------------------------------
355-101026-01         Medical Response and Information for Employees after
                      Body Fluid Exposure
--------------------------------------------------------------------------------
355-101028-01         Chemical Hygiene Plan--Responsibilities
--------------------------------------------------------------------------------
355-101029-01         Chemical Hygiene Plan--Laboratory Rules
--------------------------------------------------------------------------------
355-101030-01         Biohazardous and Chemical Hazardous Waste Management
--------------------------------------------------------------------------------
355-101031-01         Waste Management and Recycling
--------------------------------------------------------------------------------
355-Program-01        Personal Protective Equipment Program
--------------------------------------------------------------------------------

355-Program-01        Bloodborne Pathogen Exposure Control Plan
--------------------------------------------------------------------------------
355-Program-01        Tuberculosis Exposure Control Program
--------------------------------------------------------------------------------
355-Program-01        Hazard Communication Program
--------------------------------------------------------------------------------
355-Program-01        Respiratory Protection Program
--------------------------------------------------------------------------------
360-100024-03         Customer Visits
--------------------------------------------------------------------------------
360-200438-04         Delegation of Duties During Absence of Vice President
                      of Medical Affairs
--------------------------------------------------------------------------------
360-300236-01         "Investigational Use Only Kits" Statement
--------------------------------------------------------------------------------
600-10000-01          Use of Personal Computer Hardware and Software
--------------------------------------------------------------------------------
600-100013-01         Global Support Problem Notifications/Updated/Resolutions
--------------------------------------------------------------------------------
600-100033-03         SDP Develop and Execute Covance CLS Systems Test Plan
--------------------------------------------------------------------------------
600-100034-04         SDP Develop and Execute User Acceptance Test Plan
--------------------------------------------------------------------------------

                                                                              28
<PAGE>

--------------------------------------------------------------------------------
Procedure No.                                 Title
--------------------------------------------------------------------------------
600-100036-03         SDP Initial Analysis Phase
--------------------------------------------------------------------------------
600-100037-03         SDP Requirements Phase
--------------------------------------------------------------------------------
600-100060-05         Create SMER Request
--------------------------------------------------------------------------------
600-100065-03         Systems Development Process (SDP) Overview
--------------------------------------------------------------------------------
600-100068-03         SDP Review Process
--------------------------------------------------------------------------------
600-100070-05         SDP User Acceptance Test Phase
--------------------------------------------------------------------------------
600-200047-03         SDP Installation Phase
--------------------------------------------------------------------------------
600-200060-03         SDP--High Level Design Phase
--------------------------------------------------------------------------------
600-200061-04         SDP Integration/Regression Testing Phase
--------------------------------------------------------------------------------
600-200069-04         SDP Programming and Testing Phase
--------------------------------------------------------------------------------
600-200073-04         SDP Develop and Execute Integration/Regression Test Plan
--------------------------------------------------------------------------------
600-200099-03         SDP Make/Buy Analysis
--------------------------------------------------------------------------------
600-300098-03         SDP System User Manual
--------------------------------------------------------------------------------
600-300182-01         SDP Detailed Design Phase
--------------------------------------------------------------------------------
600-300285-01         SDP Operation and Maintenance Phase
--------------------------------------------------------------------------------
600-300288-01         SMER Processing
--------------------------------------------------------------------------------
600-300289-01         SDP Create/Update Project Development Folder (PDF)
--------------------------------------------------------------------------------
600-300290-01         SDP Determine Functional Requirements
--------------------------------------------------------------------------------
600-300291-01         SDP Create/Update Software Development Folders (SDF)
--------------------------------------------------------------------------------
600-300834-01         Software Change Control
--------------------------------------------------------------------------------
620-100006-01         Remote System Access
--------------------------------------------------------------------------------
620-100063-02         System Security
--------------------------------------------------------------------------------
620-100064-02         Unscheduled System Interruptions
--------------------------------------------------------------------------------
620-200003-01         Transit, Data Transfer Processing Software
--------------------------------------------------------------------------------
620-200095-01         Computer Room Security
--------------------------------------------------------------------------------
620-200116-02         Computer Operations Manual
--------------------------------------------------------------------------------
620-300058-02         Scheduling, Conducting, and Recording Maintenance
                      Performed on Equipment
--------------------------------------------------------------------------------

                                                                              29
<PAGE>

      (2)   Specimen Management

--------------------------------------------------------------------------------
Procedure No.                                 Title
--------------------------------------------------------------------------------
460-300116-01         Archival of Result Files Received on Diskette Media
--------------------------------------------------------------------------------
460-300118-01         Defining/Editing a Referral Laboratory Definition
--------------------------------------------------------------------------------
460-300117-01         Defining/Editing an RLI Record Format
--------------------------------------------------------------------------------
460-200201-01         Defining/Editing Project Construction in RLI
--------------------------------------------------------------------------------
460-300305-01         RLI Documentation Notebooks
--------------------------------------------------------------------------------
460-300090-01         RLI Force Accession Update
--------------------------------------------------------------------------------
460-300090-01         RLI Order Test Files
--------------------------------------------------------------------------------
460-300120-01         RLI Reasonability Definition
--------------------------------------------------------------------------------
460-300175-01         RLI Reasonability Definition Verification
--------------------------------------------------------------------------------
460-300303-01         RLI Referral Laboratory and Project Construction
                      Verification
--------------------------------------------------------------------------------
60-300122-01          RLI Result Verification
--------------------------------------------------------------------------------
460-300121-01         RLI Site File Creation
--------------------------------------------------------------------------------
420-200455-02         Freezer and Refrigerator Alarm System
--------------------------------------------------------------------------------
420-300605-03         SMART System Specimen Registration and Processing
--------------------------------------------------------------------------------
420-300160-04         Boxing Specimens
--------------------------------------------------------------------------------
420-300161-04         Shipping Specimens
--------------------------------------------------------------------------------
420-300578-03         Pathology/Cytology Specimen Handling
--------------------------------------------------------------------------------
420-300579-03         DCL Specimen Handling
--------------------------------------------------------------------------------
420-300480-03         Recording of Freezer Temperatures
--------------------------------------------------------------------------------
420-300553-04         Preparation of Plasma Aliquots for HIV-1 PCR and bDNA,
                      and Study Drug Assays
--------------------------------------------------------------------------------
420-300558-03         Biopsy Specimen Handling
--------------------------------------------------------------------------------
420-300473-03         Defining Projects into the SMART System
--------------------------------------------------------------------------------
420-300488-03         Conversion of Specimens from Zavacor into the SMART
                      System
--------------------------------------------------------------------------------
420-300813-03         SMART Shipment QC
--------------------------------------------------------------------------------
420-300060-02         Freezer Failure
--------------------------------------------------------------------------------
420-300005-03         SMART Packaging and Shipping
--------------------------------------------------------------------------------
420-300109-02         SMART EPL Download
--------------------------------------------------------------------------------
420-300110-02         SMART Handling of Samples requiring Aliquotting
--------------------------------------------------------------------------------
420-200142-01         Receipt of Specimens Shipped from Global Sites
--------------------------------------------------------------------------------
420-200065-02         Temperature Monitoring
--------------------------------------------------------------------------------
420-200143-01         Maintenance of Frozen Specimen Temperatures during
                      Specimen Receipt and Specimen Management Handling
--------------------------------------------------------------------------------
420-300498-02         Loading & QC on Genentech Projects That Ship Out of the
                      SMART System
--------------------------------------------------------------------------------
420-300421-01         Disposal of Glaxo-Wellcome Genotyping Specimen at CCLS
--------------------------------------------------------------------------------
420-200453-03         Demographic Identification of DCL Pap and Biopsy Specimens
--------------------------------------------------------------------------------
420-300599-04         Outside Referral Laboratory Specimen Handling
--------------------------------------------------------------------------------
420-299159-01         Disposal of Genotyping Specimens at CCLS
--------------------------------------------------------------------------------
420-300332-01         Summary of Disposal of Specimens Stored in SMART
--------------------------------------------------------------------------------
420-200154-01         Specimen Management Patient Identification Resolution
--------------------------------------------------------------------------------
420-300486-04         Receipt of Specimens Shipped from Global Sites
--------------------------------------------------------------------------------

                                                                              30
<PAGE>

      (3)   Data Transfer

--------------------------------------------------------------------------------
Procedure No.                                Title
--------------------------------------------------------------------------------
55T-200078         Data Analyst--Creating and Revising Department Guidelines
--------------------------------------------------------------------------------
500-300402         Client Format Documentation Notebook
--------------------------------------------------------------------------------
500-300009         Data Transmission Agreement
--------------------------------------------------------------------------------
55T-300049         Data Transmission Recipient Set-up/Version 3.5
--------------------------------------------------------------------------------
                   The following are Guidelines--Will become SOPs in the
                   future. This is why no numbers are assigned to these
                   documents.
--------------------------------------------------------------------------------
                   DCL Guidelines
--------------------------------------------------------------------------------
                   Zavacor--Version 2.0 Overview
--------------------------------------------------------------------------------
                   Customer Correspondence
--------------------------------------------------------------------------------
                   Client Notebooks
--------------------------------------------------------------------------------
                   Billing and Monthly Performance Reports
--------------------------------------------------------------------------------
                   Shared Directory--Data Analyst's
--------------------------------------------------------------------------------
                   Creating a SAS Input Statement
--------------------------------------------------------------------------------
                   Data Transfer Exclusion/Translations
--------------------------------------------------------------------------------
                   Data Transfer Test Processing
--------------------------------------------------------------------------------
                   Data Transmission--Executable Code
--------------------------------------------------------------------------------
                   Multiple Data Transmission Receipt Numbers
--------------------------------------------------------------------------------
                   Transmit Options
--------------------------------------------------------------------------------
                   Data Elements--Recommended
--------------------------------------------------------------------------------
                   Timed-Draws in Transmissions
--------------------------------------------------------------------------------
                   Handling Blinding in Data Transmissions
--------------------------------------------------------------------------------
                   Global Studies
--------------------------------------------------------------------------------
                   Data Analyst--Background Processes
--------------------------------------------------------------------------------
                   Data Analyst Quality Control Packets
--------------------------------------------------------------------------------
                   Data Transfer--Requesting, Preparing and Shipping Media
--------------------------------------------------------------------------------
                   Data Files--Retrieval From Archive
--------------------------------------------------------------------------------
                   Diskette Creation
--------------------------------------------------------------------------------

      (4)   Clinical Trial And Data Base Design and Management

            (a)   Protocol Services Departmental

--------------------------------------------------------------------------------
Procedure No.                                Title
--------------------------------------------------------------------------------
300320         Age Exceptions Worksheet Completion
--------------------------------------------------------------------------------
300279         Analytical Review of Protocol
--------------------------------------------------------------------------------
300286         Approved Protocol on site at Covance Central Laboratory Services
--------------------------------------------------------------------------------
300566         Back-Up Coverage
--------------------------------------------------------------------------------
300402         Client Format Documentation Notebook
--------------------------------------------------------------------------------
300053         Completing Feasibility Request
--------------------------------------------------------------------------------
300304         Completing Project Information (PI) Worksheet
--------------------------------------------------------------------------------
300069         Confidentiality--Accounts Administration
--------------------------------------------------------------------------------
300063         Confirmation of Services Revisions
--------------------------------------------------------------------------------
300009         Data Transmission Agreement
--------------------------------------------------------------------------------

                                                                              31
<PAGE>

--------------------------------------------------------------------------------
300049         Data Transmission Recipient Set-up/Version 3.5
--------------------------------------------------------------------------------
300300         Defining General Reporting Options
--------------------------------------------------------------------------------
300297         Defining Sponsor Recipient Loading
--------------------------------------------------------------------------------
300295         Defining the Administrative Data
--------------------------------------------------------------------------------
300298         Defining the Required/Accession Screen
--------------------------------------------------------------------------------
300299         Defining the Visit Interval Schedule
--------------------------------------------------------------------------------
300314         Designating Visits
--------------------------------------------------------------------------------
30023          Designing Requisition in Elixir
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
300325         Determining Report Format Group
--------------------------------------------------------------------------------
300312         Disabled Project Group Worksheet
--------------------------------------------------------------------------------
300555         Feasibility Implementation
--------------------------------------------------------------------------------
300551         Feasibility Process Overview
--------------------------------------------------------------------------------
300550         Final Packet
--------------------------------------------------------------------------------
300331         Finaling Out New and Modified Projects
--------------------------------------------------------------------------------
300067         First Kit/Kit Type QC
--------------------------------------------------------------------------------
300322         General Reporting Units Override Worksheet Completion
--------------------------------------------------------------------------------
300308         Kit Definition Worksheet
--------------------------------------------------------------------------------
300061         Master Project List
--------------------------------------------------------------------------------
300327         Notification of New Projects
--------------------------------------------------------------------------------
300328         Notification of Project Modification
--------------------------------------------------------------------------------
300324         PGP Encryption of Data Transmissions via E-mail
--------------------------------------------------------------------------------
300573         Preliminary Specification Sheet Review
--------------------------------------------------------------------------------
300062         Project Completion/Cancellation Notification
--------------------------------------------------------------------------------
300224         Project Complexity Evaluation
--------------------------------------------------------------------------------
300296         Project Labels Definition Worksheet Completion
--------------------------------------------------------------------------------
300282         Protocol Monitoring Plan
--------------------------------------------------------------------------------
300549         Protocol Specification Completion
--------------------------------------------------------------------------------
300311         Report Group Format Worksheet
--------------------------------------------------------------------------------
300374         Request For Service (RFS) Modifications
--------------------------------------------------------------------------------
300294         Requisition Design
--------------------------------------------------------------------------------
300128         Specification Modification
--------------------------------------------------------------------------------
300301         Standard Requisition Layout Definition
--------------------------------------------------------------------------------
300070         Travel Requirements
--------------------------------------------------------------------------------

            (b)   Protocol Services Interdepartment

--------------------------------------------------------------------------------
200058         Accessing Data Revision Tracking Log
--------------------------------------------------------------------------------
200092         Accessioning Double-Entry
--------------------------------------------------------------------------------
200125         Antrim Lab Transfer System Definition
--------------------------------------------------------------------------------
200041         Authorization of Verbal Test Request Orders
--------------------------------------------------------------------------------
200119         Covance CLS Manual Review
--------------------------------------------------------------------------------
200078         Data Analyst--Creating and Revising Departmental Guidelines
--------------------------------------------------------------------------------
200049         Data Element Report Group Format Changes
--------------------------------------------------------------------------------

                                                                              32
<PAGE>

--------------------------------------------------------------------------------
200109         Data Product Requests
--------------------------------------------------------------------------------
200110         De-accessioning or Permanently Detaching Accession #'s from
               the Database
--------------------------------------------------------------------------------
200150         Disposal of Genotyping Specimens at CCLS
--------------------------------------------------------------------------------
200077         Disposal of Specimens in Storage with the Exception of those
               for Genetic Analysis
--------------------------------------------------------------------------------
200108         HIV Informed Consent Compliance Agreement
--------------------------------------------------------------------------------
200440         Initiation of Sponsor Designated Referral Laboratory Information
               Sheet
--------------------------------------------------------------------------------
200112         Investigator List Distribution
--------------------------------------------------------------------------------
200436         Investigator Notification of Life Threatening Results
--------------------------------------------------------------------------------
200004         New Sponsor/Customer Team Assignment
--------------------------------------------------------------------------------
200120         New Test Feasibility For U.S.
--------------------------------------------------------------------------------
200444         Patient Reference Ranges, Flags and Alerts
--------------------------------------------------------------------------------
200079         Patient Temporarily or Permanently Relocated at a Different
               Covance Laboratory Site
--------------------------------------------------------------------------------
200445         Patients Enrolled in Multiple Pharmaceutical Protocols
               Simultaneously
--------------------------------------------------------------------------------
200107         Project Quality Control
--------------------------------------------------------------------------------
200045         Providing Technical Information to Customers
--------------------------------------------------------------------------------
200121         Recall of Collection Supplies By Manufacturer--Advanced Services
--------------------------------------------------------------------------------
200122         Recall of Collection Supplies By Manufacturer--Classic Services
--------------------------------------------------------------------------------
200086         Reference Range Insert For Investigator Manual
--------------------------------------------------------------------------------
200427         Requesting Mock Kits
--------------------------------------------------------------------------------
200500         Requesting Protocol Copying and Distribution
--------------------------------------------------------------------------------
200456         Requesting Training Letters
--------------------------------------------------------------------------------
200028         Requisition and Alignment QC
--------------------------------------------------------------------------------
200105         Requisitions--Project Specific Review of Data
--------------------------------------------------------------------------------
200053         Revision of Previously Reported Data
--------------------------------------------------------------------------------
200063         Routing Legal Agreements
--------------------------------------------------------------------------------
200437         Selection of Referral Laboratory
--------------------------------------------------------------------------------
200057         Submission Requirements for Data Revisions
--------------------------------------------------------------------------------
200048         Technical Review of Specification Sheet
--------------------------------------------------------------------------------
200441         Testing Delay Notification
--------------------------------------------------------------------------------
200003         Transit--Data Transfer Processing Software
--------------------------------------------------------------------------------
200123         WLOS Notification for Antrim Database Request
--------------------------------------------------------------------------------
200442         Zavacor--Data Entry and Verification of Patient Results and
               Administrative Data
--------------------------------------------------------------------------------

                                                                              33
<PAGE>

                                    Exhibit C

                                     Assays

Variagenics will deliver to Covance the following minimum number of assays, with
the indicated minimum levels of complexity (which for purposes of this Exhibit C
means genetic variations detected by the assay), on the following schedule:

    Assays                               Delivery Date
  Complexity   # Variations  2/28/00        4/30/00        7/15/00       Total
  ----------   ------------  -------        -------        -------       -----

Level 1
Level 2
Level 3
                            -----------  ---------------  -----------  ---------
Total

The specific assays at each Complexity Level to be delivered will be determined
by the Advisory Committee. If the Advisory Committee cannot agree upon what
assays are to be delivered, then Variagenics agrees to deliver the number of
fully validated assays of the indicated Complexity Level by the indicated
Delivery Date from the lists below as selected by Covance (any such selection by
Covance may only be changed as mutually agreed to by the parties or in
connection with the inability to obtain a necessary license as described in the
following sentence). The foregoing notwithstanding, if the licenses necessary,
if any, to allow Variagenics to deliver a specific assay selected by Covance
cannot be obtained, then Covance shall select a replacement assay; if the
licenses necessary, if any, to allow Variagenics to deliver the required number
of assays from the lists below cannot be obtained, then the Advisory Committee
shall determine replacement assays which Variagenics shall deliver.

Complexity Level I

Complexity Level 2

Complexity Level 3

Other Assays

These other assays will be assigned a Complexity Level for purposes of inclusion
on the lists.

                                                                              34
<PAGE>

                                    Exhibit D

                   Services for Variagenics Non-Alliance Fees

1. Collection, extraction and/or storage or other processing of genetic
material.

2. Analysis of laboratory data resulting from genetic testing in connection with
Pharmacogenomic Lab Services, except with respect to Net Sales of such services
which are subject to a royalty pursuant to Section 2(c) or excluded from a
royalty pursuant to Section 2(c).

3. Pharmacogenomic Lab Services not subject to a royalty pursuant to Section
2(c) or excluded from a royalty pursuant to Section 2(c). The Net Sales subject
to this item 3 shall be subject to a Variagenics Non-Alliance Fee at a rate of
[        ] ([ ]%).

                                                                              35
<PAGE>

                                    Exhibit E

                            Proposals and Agreements

Companies

--------------------------------------------------------------------------------
Company Name                   Program(s)                   Status
--------------------------------------------------------------------------------
Bayer                          Metrifonate-TM-              Agreement
--------------------------------------------------------------------------------
EBEWE Pharmaceuticals          Cerebrolysin-TM-             Agreement
--------------------------------------------------------------------------------
Neo Therapeutics               Neotrofin-TM-                Agreement
--------------------------------------------------------------------------------
Novartis                       Exelon-TM-                   Agreement
--------------------------------------------------------------------------------
Parke-Davis                    Tacrine-TM-                  Agreement
--------------------------------------------------------------------------------
Protodigm                      Lazabemide-TM-               Agreement
--------------------------------------------------------------------------------
AstraZeneca                    Tomudex-TM-, ZD-9331         Proposal
--------------------------------------------------------------------------------
Bayer                          BAY y 5959, BAY w 9798       Proposal
--------------------------------------------------------------------------------
Isis Pharmaceuticals           ISIS 2302                    Proposal
--------------------------------------------------------------------------------
Janssen                        Reminyl-TM-                  Proposal
--------------------------------------------------------------------------------
Merck                          Vioxx-TM-                    Proposal
--------------------------------------------------------------------------------
Novo Nordisk                   PPAR inhibitor               Proposal
--------------------------------------------------------------------------------
Otsuka                         Pletal-TM-                   Proposal
--------------------------------------------------------------------------------
Pfizer                         Aricept-TM-, Hypertension    Proposal
--------------------------------------------------------------------------------
Roche                          Tasmar-TM-, Xeloda-TM-,      Proposal
                               Furtulon-TM-,
                               Inflammatory Disease,
                               Cardiovascular Disease
--------------------------------------------------------------------------------
Sankyo/Warner Lambert          Rezulin-TM-, R-119702        Proposal
--------------------------------------------------------------------------------
Searle                         Celebrex-TM-                 Proposal
--------------------------------------------------------------------------------
Takeda                         TAK-147                      Proposal
--------------------------------------------------------------------------------
Urogene                        Benign Prostate              Proposal
                               Hypertrophy
--------------------------------------------------------------------------------

                                                                              36
<PAGE>

Government and Academic Institutions

--------------------------------------------------------------------------------
Institution Name                   Program(s)                     Status
--------------------------------------------------------------------------------
Canadian Consortium                Aricept-TM-/Non-Aricept-TM-    Agreement
--------------------------------------------------------------------------------
Health Canada/Univ. of Ottawa      Alzheimer's Disease            Agreement
--------------------------------------------------------------------------------
Univ. of Southern California       Alzheimer's Disease            Agreement
--------------------------------------------------------------------------------
National Inst. of Mental Health    Schizophrenia                  Proposal
--------------------------------------------------------------------------------

The parties acknowledge that the foregoing list may not refer to the legal names
of all the indicated entities.

                                                                              37
<PAGE>

                                    Exhibit F

                                     Form of

                          INDIVIDUAL PROJECT AGREEMENT

This Individual Project Agreement, dated as of ____________, ____, ("IPA") is by
and between Variagenics Inc. ("Variagenics")* and Covance _____ ("Covance") and
relates to the Alliance Agreement dated _____________, 1999 between Variagenics
and Covance Inc. (the "Agreement"). Capitalized terms used herein and not
otherwise defined shall have the respective meanings assigned to them in the
Agreement.

The parties agree as follows:

1. IPA. This document and its attachments constitute an IPA under the Agreement.
As such, this IPA is subject in all respects to the terms and provisions of the
Agreement.

2. Scope of Work.. [Variagenics] [Covance] agrees, in accordance with the
Agreement and the Protocol attached hereto as Exhibit 1, to provide the
[Variagenics Lab Services] [Pharmacogenomic Lab Services] as outlined in the
Price Quotation attached hereto as Exhibit 2.

3. Compensation. Payments for the services performed under this IPA will be made
in accordance with the provisions of the payment schedule attached to this IPA
and the Agreement.

4. Project Period. This IPA shall be in effect until the [Variagenics Lab
Services] [Pharmacogenomic Lab Services] as described in the attached Price
Quotation are completed, unless the IPA is earlier terminated in accordance with
the Agreement or this IPA.

----------
*or its applicable Affiliate.

                                                                              38
<PAGE>

5. Conflict. In the event of any conflict between the terms of the Agreement and
this IPA, the terms of the Agreement shall govern.

ACCEPTED AND AGREED TO:

Covance _______                                 Variagenics

By:______________________________               By:_____________________________
      Name:                                           Name:
      Title:                                          Title:

                              IPA Payment Schedule

          [Describe payment provisions for Variagenics Lab Services or
                     Pharmacogenomic Lab Services under IPA]

                                                                              39
<PAGE>

                                    Exhibit G

                                     Persons

Quintiles Transnational Corporation
PAREXEL International
PPD, Inc.
Quest Diagnostics
Lab Corp.
Viromed
Specialty Laboratories
National Genetics Institute
Consolidated Laboratories
Smithkline Beecham Clinical Labs
Mayo Clinic
MediLab
UCT

The parties acknowledge that the foregoing list may not refer to the legal names
of all the indicated entities.

                                       40<PAGE>

                                                                   Exhibit 10.13

                          MARKETING ALLIANCE AGREEMENT

      This Marketing Alliance Agreement (this "Agreement") is made and dated as
of December 1, 1998 between QUINTILES TRANSNATIONAL CORP., a North Carolina
corporation ("Quintiles"), and VARIAGENICS, INC., a Delaware corporation
("Variagenics").

      WHEREAS, Quintiles is in the business of providing contract pharmaceutical
services, including Clinical Services (as defined below);

      WHEREAS, Variagenics is in the business of providing pharmacogenomic
technologies and services, including Variagenics Services, Variagenics Gene
Rights and Variagenics Technology (as defined below);

      WHEREAS, the parties desire to establish an alliance to enable the
marketing and delivery of Variagenics Services, Variagenics Gene Rights and
Variagenics Technology through and on an integrated basis with Quintiles'
Clinical Services to Sponsors on the terms and conditions in this Agreement (the
"Alliance");

      NOW, THEREFORE, in consideration of the mutual promises and covenants of
the parties set forth in this Agreement, Quintiles and Variagenics agree as
follows:

      1.    DEFINITIONS.

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

      "Alliance Agreement" shall mean a written agreement with a Sponsor
pursuant to which an Alliance Program is conducted.

      "Alliance Program" shall mean (i) any contract preclinical or clinical
research program or other program for a Sponsor for which Quintiles and
Variagenics make a proposal hereunder during the conduct of which Variagenics
provides Variagenics Services or in which Variagenics

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 406 of the Securities Act.
<PAGE>

or the Sponsor (under license from Variagenics) utilizes Variagenics Gene
Rights, and in which Quintiles provides other services (directly or indirectly)
to the Sponsor and (ii) any contract preclinical or clinical research program or
other program for a Sponsor for which Quintiles and Variagenics make a proposal
hereunder and during the conduct of which Variagenics provides Variagenics
Services or in which Variagenics or the Sponsor (under license from Variagenics)
utilizes Variagenics Gene Rights, and in which Quintiles does not provide other
services (directly or indirectly) to the Sponsor. Alliance Programs will not
include drug discovery or gene discovery alliances or other corporate alliances
not involving CROs (including Quintiles) in which Variagenics participates.

      "CR0" shall mean a contract research organization.

      "Clinical Services" shall mean clinical trial management, monitoring, data
management, biostatistics, medical, regulatory and other related services
performed under contract for an entity which is testing a pharmaceutical product
for the purpose of obtaining either regulatory approval to conduct human
clinical trials or regulatory approval of the sale of such product. Clinical
Services does not include (i) basic research and development activities in drug
discovery, or (ii) diagnostic laboratory services.

      "Event of Default" shall have the meaning given such term in Section
12(h).

      "Field" shall mean products and services regarding the effects of gene
sequence variation on drug action, including pharmacokinetics and
pharmacodynamics.

      "Joint Alliance Program" shall mean an Alliance Program described in
clause (i) of the definition of Alliance Program.

      "Note" shall have the meaning given such term in Section 12.

                                       2
<PAGE>

      "Quintiles Technology" shall mean all processes, know-how, trade secrets,
analytical methods, procedures, techniques, technical expertise, computer
software, algorithms and other intellectual property for use in conducting,
monitoring and analyzing data from clinical trials, which are owned or licensed
by Quintiles.

      "Senior Debt" shall mean all indebtedness of Variagenics for borrowed
money from banks and similar institutional lenders and all liabilities under
equipment and real estate lease.

      "Sponsor" shall mean a pharmaceutical, biotechnology or drug development
company or similar entity, which contracts for an Alliance Program.

      "Termination Date" shall have the meaning given such term in Section 6.

      "Unilateral Alliance Program" shall mean an Alliance Program described in
clause (ii) of the definition of Alliance Program.

      "Variagenics Gene Rights" shall mean all proprietary gene-sequence
variances (each, a "Variance") and variance databases (each, a "Variance
Database") useful in demonstrating the effect of gene sequence variance on drug
action, which are owned or licensed by Variagenics.

      "Variagenics Services" shall mean all services offered or rendered from
time to time by Variagenics pursuant to Section 3(c)(ii) and (iii).

      "Variagenics Technology" shall mean (i) all variance discovery
technologies, variance detection technologies, proprietary pharmacogenomics
algorithms, applications and procedures, useful in demonstrating the effect of
gene sequence variance on drug action, which are owned or licensed by
Variagenics, and (ii) Variagenics Gene Rights.

      2.    ESTABLISHMENT OF THE ALLIANCE.

                                       3
<PAGE>

      (a) Purpose of the Alliance. The purpose of the Alliance is to enable the
marketing and delivery of Variagenics Services, Variagenics Gene Rights and
Variagenics Technology through and on an integrated basis with Quintiles'
Clinical Services to Sponsors. The goal of the Alliance is to engage in multiple
Alliance Programs, during which Sponsors will use Variagenics Gene Rights and
Variagenics Services in clinical development programs performed by Quintiles in
order to facilitate development, approval and marketing of such Sponsors'
products. Depending on the particular circumstances and requirements of each
Alliance Program, Quintiles and Variagenics will make these technologies and
services available to Sponsors through (a) Variagenics Services rendered by
Variagenics or (b) licensing Variagenics Gene Rights to Sponsors.

      (b) Management of the Alliance.

            (i) Joint Management Committee. Within 30 days following the date of
this Agreement, the parties shall form a standing joint management committee
(the "Joint Management Committee") which shall (i) manage the Alliance, (ii)
generally oversee the performance of the parties under this Agreement; (iii)
plan, schedule and coordinate Joint Alliance Programs, (iv) provide continuity
for making strategic decisions relating to the Alliance and this Agreement, and
(v) to develop appropriate operating procedures for the Alliance and Affiance
Programs. The Joint Management Committee shall be comprised of four members, two
of whom shall be appointed by Quintiles and two of whom shall be appointed by
Variagenics. The Joint Management Committee shall meet at least quarterly (or
less frequently by agreement of its members). The party which appointed a member
of the Joint Management Committee may (or shall, in the event of a vacancy)
appoint a replacement for such member at any time, in such party's sole
discretion, effective upon written notice to the other party.

                                       4
<PAGE>

            (ii) Project Teams. At the time that each Joint Alliance Program is
initiated by Quintiles and Variagenics, the parties will create a project team
for such Joint Alliance Program (which may be the same team for one or more
programs), which shall coordinate with the Joint Management Committee on matters
relating to such Joint Alliance Program. Each party will use its reasonable
efforts to afford access to such party's project team by the other party's
project team for each Joint Alliance Program, including with respect to
participation in internal and Sponsor project team meetings and planning and
decision processes, in order to assure optimal project coordination and
implementation.

      (c) Relationship of the Parties.

            (i) Quintiles intends that during the term of this Agreement,
Quintiles will treat Variagenics as Quintiles' preferred provider of products
and services within the Field, on a worldwide basis. Variagenics intends that
during the term of this Agreement, Variagenics will treat Quintiles as
Variagenics' preferred provider for Clinical Services to Variagenics or
Variagenics' clients, on a worldwide basis. Each of the parties intends that
during the term of this Agreement the parties will collaborate to provide the
parties with significant marketing opportunities under Alliance Programs. For
purposes of this Agreement, "preferred provider' means that a party will give
first and preferential consideration to the other party when such party intends
to market (or make proposals to a prospective Sponsor to provide) Clinical
Services in combination with services or technology substantially similar to
those of Variagenics, with a view towards fulfilling the purpose of the Alliance
as set forth above, subject to the terms and conditions of this Agreement.

            (ii) Each party acknowledges that, in order to properly serve their
clients, they must maintain existing third party relationships and continue to
develop new third party

                                       5
<PAGE>

relationships. Therefore, consistent with the provisions hereof, the Alliance
and relationship contemplated herein shall not be considered an exclusive
relationship, except that until December 31, 2000 (a) Variagenics shall market
(or make proposals to a prospective Sponsor to provide) Variagenics Gene Rights
or Variagenics Services in the Field in combination with the provision of
Clinical Services exclusively with Quintiles and (b) Quintiles shall market (or
make proposals to a prospective Sponsor to provide) Clinical Services in
combination with rights to gene variances or gene variance databases or
provision of services in the Field substantially similar to the Variagenics
Services exclusively with Variagenics. The foregoing will not restrict
Variagenics from providing products and services in the Field to companies
directly, whether such companies conduct clinical trials themselves or with a
CRO, nor will it restrict Quintiles from providing contract clinical trial
services to any companies, whether such companies obtain services in the Field
from another supplier of such services or such companies do work in the Field
themselves.

            (iii) Without limiting the foregoing, Variagenics understands that
Quintiles may direct services in the Field to other providers, based upon lack
of capacity of Variagenics, business conflicts resulting from Variagenics'
relationships with developers of competing drugs, the unavailability to Alliance
Programs of Variagenics Gene Rights necessary to complete a proposed Alliance
Program as a result of a license by Variagenics of such Variagenics Gene Rights
to a third party, the unavailability to Variagenics of intellectual property
necessary to complete a proposed Alliance Program, Sponsor preferences, and
extreme variances in costs.

            (iv) Any complaints regarding a party's utilization of the other
party's services shall be referred to the Joint Management Committee. In the
event that a Sponsor objects to using either party as a provider of services
under an Alliance Program because of an actual or

                                       6
<PAGE>

potential business conflict between such party and such Sponsor, the matter
shall be referred to the Joint Management Committee.

            (v) Except as expressly provided in this Agreement, nothing will
constitute either party as agent for the other or give either party the
authority to make representations or agreements on behalf of the other, and each
party covenants not to make any representations or to take any actions
inconsistent with the foregoing. The parties are independent contractors and
nothing in this Agreement will be deemed to constitute or create a joint
venture, partnership, pooling arrangement, principal and agent arrangement or
other formal business entity or fiduciary relationship between the parties.

            (vi) In carrying out its responsibilities under this Agreement, each
party agrees that its activities will be conducted in compliance with all
applicable laws, rules and regulations, including the U.S. Food, Drug and
Cosmetic Act and the regulations promulgated pursuant to such Act, or any
equivalent laws, rules or regulations pertaining to jurisdictions in which the
activities are conducted. Neither party will engage the services of any person
debarred by relevant governmental or regulatory authorities, in connection with
activities under this Agreement.

      3.    MARKETING AND ADMINISTRATION OF ALLIANCE PROGRAMS

            (a) Marketing Plan for Alliance Programs. Within 30 days following
the date of this Agreement, Quintiles shall use its reasonable efforts to
prepare for the parties an initial plan for marketing Alliance Programs under a
written marketing plan (a "Marketing Plan"). Quintiles shall consult with
Variagenics in preparing a Marketing Plan and it shall be subject to
Variagenics' approval, which Variagenics shall not withhold unreasonably. The
initial Marketing Plan (and all subsequent Marketing Plans) adopted by the
parties shall be executed by the parties

                                       7
<PAGE>

and become a part of this Agreement. A Marketing Plan adopted by Quintiles and
Variagenics may be modified from time to time by written agreement of the
parties. At least annually, the parties will adopt a Marketing Plan for the
coming year, and a Marketing Plan shall remain in effect until a subsequent
Marketing Plan is adopted by the parties in writing or until the earlier
termination of this Agreement. Each Marketing Plan will:

                  (i) identify possible business opportunities for Alliance
Programs, including identification and prioritizing of target Sponsors;

                  (ii) set forth the responsibilities of each party with respect
to such business opportunities and the development of such business
opportunities;

                  (iii) set forth a marketing and sales strategy;

                  (iv) establish a budget;

                  (v) establish minimum commitments of resources by each party
in order to assure proper sales force staffing and training, marketing material
development, conference presentation and public relations, target Sponsor
identification and prioritization, and sales call strategy development and
implementation (which shall include at least two FTE's from Quintiles and one
FTE from Variagenics); and

                  (vi) require that any marketing materials for prospective
Alliance Programs used repetitively by either party relating to the conduct of
clinical trials involving the Field will be approved by both parties and will
include the names and logos of both parties and state that Quintiles will
provide Clinical Services and that Variagenics will provide Variagenics Services
and Variagenics Gene Rights.

            (b) Procedure for Proposals to Sponsors for Alliance Programs.

                                       8
<PAGE>

                  (i) Quintiles will coordinate the marketing of Alliance
Programs, including the marketing of Variagenics Technologies and Variagenics
Services directly to Sponsors, as part of Quintiles' portfolio of Clinical
Services, and Variagenics will provide its technologies and services and commit
its capacity to Alliance Programs, all subject to the terms and conditions of
this Agreement. Quintiles will coordinate proposals for Alliance Programs and
lead negotiations with Sponsors for corresponding Alliance Agreements. Such
Alliance Agreements shall be between Quintiles and the Sponsors, unless
otherwise agreed by Quintiles, except that licenses for Variagenics Gene Rights
will be between Variagenics and the Sponsor.

                  (ii) Within 30 days following the date of this Agreement,
Quintiles shall use its reasonable efforts to prepare for the parties a formal,
written process for preparing and presenting proposals to Sponsors for Alliance
Programs (a "Proposal Plan"), which the parties agree will be established
consistent with existing and future processes in place at Quintiles. Quintiles
shall consult with Variagenics in preparing a Proposal Plan and it shall be
subject to Variagenics' approval, which Variagenics shall not withhold
unreasonably. The initial Proposal Plan (and all subsequent Proposal Plans)
adopted by the parties shall be executed by the parties and become a part of
this Agreement. A Proposal Plan adopted by Quintiles and Variagenics may be
modified from time to time by written agreement of the parties.

                  (iii) Set forth on Exhibit A are "per unit" prices for certain
non-exclusive licenses and services, which the parties agree shall be minimum
prices applicable to Alliance Programs. Also set forth on Exhibit A is a
description of the payment terms, including timing of payments by Sponsors,
which the parties agree shall be applicable to Alliance Programs. All
information set forth on Exhibit A is collectively referred to in this Agreement
as the "Pricing Schedule." At least annually, the parties will review the
Pricing Schedule to consider whether

                                       9
<PAGE>

adjustments are necessary to reflect market conditions. The Pricing Schedule may
be modified from time to time by written agreement of the parties. The Pricing
Schedule shall remain in effect until modified by the parties or until the
earlier termination of this Agreement.

                  (iv) Whenever Quintiles identifies an opportunity for an
Alliance Program, which in Quintiles' reasonable judgment should be pursued,
Quintiles shall notify Variagenics of a proposed Alliance Program. Promptly
following such notification, the parties agree to cooperate in good faith to
establish a proposal for presentation to the respective Sponsor. Quintiles shall
consult with Variagenics in preparing such proposal and it shall be subject to
Variagenics' approval, which Variagenics shall not withhold unreasonably.
Specifically, Variagenics agrees that it will not withhold its approval on a
proposal as to pricing the Alliance Program, so long as the terms of the
Alliance Program meet or exceed the terms set forth on the Pricing Schedule. A
proposal as finally adopted by Quintiles and Variagenics may be modified from
time to time by written agreement of the parties.

                  (v) The parties acknowledge and agree that they contemplate
that Variagenics will participate at the request of Quintiles in a proposed
Alliance Program, for which the Applicable Percentage for Advances under Section
12 is 80%, unless Variagenics is restricted from doing so due to contractual
commitments of Variagenics to third parties, including licenses by Variagenics
of Variagenics Gene Rights. Variagenics will be free to participate or not, in
its sole discretion, in any other proposed Alliance Program. Variagenics agrees
to notify Quintiles in writing from time to time of such commitments, promptly
after such commitments are incurred. At the request of Quintiles, Variagenics
will participate in good faith in the presentation to a Sponsor of any proposal
adopted by the parties for an Alliance Program.

                                       10
<PAGE>

            (c) Services and Rights to be Provided to Sponsors Under Alliance
Programs. In connection with Alliance Programs, the parties will provide the
services and take the other actions as described in this Section, subject to the
other terms and conditions of this Agreement.

                  (i) General. Depending on the particular circumstances and
requirements of each Alliance Program, Quintiles and Variagenics will make
Variagenics' technologies and services available to Sponsors through (a)
Variagenics' Services rendered by Variagenics to a Sponsor, pursuant to an
Alliance Agreement between Quintiles and the Sponsor and pursuant to this
Agreement or (b) licensing Variagenics Gene Rights to Sponsors, pursuant to a
license agreement between Variagenics and the Sponsor.

                  (ii) Services to be Provided by Variagenics.

                        (A) Variance Discovery and Database: Variagenics will
perform variance discovery in specified genes under Alliance Programs.
Variagenics will select candidate genes which may affect drug action,
pharmacokinetics, or pharmacodynamics and provide the Sponsor with an annotated
summary of variances in the Variance Database, Variances discovered by
Variagenics, or variances in the public domain. Variance discovery in genes
proprietary to Sponsors will be performed by Variagenics outside the Alliance.

                        (B) Variance Detection: Variagenics will perform or
engage contractors to perform Variance Detection for Alliance Programs using
Variagenics Technologies. The parties will discuss during the first year of this
Agreement (at any time until Variagenics has engaged a contractor to perform
Variance Detection) the feasibility, terms and conditions of transferring the
Variance Detection Technology to Quintiles to enable Quintiles to perform
Variance Detection, in which event Quintiles could elect to be a preferred
provider to Variagenics' partners for Variance Detection in clinical trials
outside Alliance Programs.

                                       11
<PAGE>

                        (C) Pharmacogenomic Services: Variagenics will provide
pharmacogenomic services, such as genetics, pharmacogenomic statistics,
pharmacology, medicinal chemistry, molecular modeling and simulation, commercial
modeling, pharmacogenomic sub-protocol writing, data management, biostatistics,
pharmacogenomic analyses and report writing, for Alliance Programs.

                  (iii) Other Commitments of Variagenics.

                        (A) Variance Use Rights: Variagenics will provide
Variance Database access to Sponsors and grant non-exclusive licenses (or
options to obtain non-exclusive licenses) to use Variances in selected genes to
Sponsors for use in Alliance Programs on terms coordinated by Quintiles and
Variagenics as part of each corresponding Alliance Program proposal, which shall
be no less favorable than the terms upon which similar non-exclusive licenses or
options are made available to Variagenics' clients outside the Alliance. Once a
Sponsor has use rights for any Variances, Variagenics will not grant rights to
third parties which will limit or terminate the Sponsor's rights. Variagenics
shall control the grant of exclusive or co-exclusive licenses to Variances and
shall give notice of the availability of such rights to Sponsors, and they shall
be made available on terms no less favorable than they are made available to
Variagenics' clients outside the Alliance.

                        (B) Preferred Provider for Programs Outside Alliance:
Variagenics will use reasonable efforts to have the Alliance be the preferred
provider for Clinical Services in the Field for any clinical trial program
outside the Alliance in which Variagenics participates.

                  (iv) Services to be Provided by Quintiles.

                                       12
<PAGE>

                        Quintiles (including its affiliates) will perform
contract clinical research services, such as clinical trial management,
monitoring, data management, biostatistics, medical, regulatory, and other
related services for Joint Alliance Programs.

            (d) Certain Responsibilities of Each Party.

                  (i) Each party will reserve sufficient capacity and resources
for proposed Alliance Programs which are accepted by Sponsors, so that each such
Alliance Program may be implemented and completed on a timely basis in
accordance with the terms of the respective proposal adopted by the parties.

                  (ii) Each party will cooperate and negotiate in good faith
regarding all Marketing Plans, Proposal Plans, Pricing Schedules, proposals for
Alliance Programs, and other matters relating to this Agreement.

                  (iii) Each party will use reasonable efforts to implement all
Marketing Plans and Alliance Programs adopted by the parties and accepted by
Sponsors.

                  (iv) Except as otherwise agreed in writing by the parties,
each party shall be solely responsible for all costs and expenses incurred by it
in preparing proposals for Alliance Programs and in providing services under
Alliance Programs.

            (e) Compensation and Payments.

                  (i) Quintiles shall bill Sponsors for all payments due
under Joint Alliance Programs, and revenues remitted by Sponsors thereunder
shall be paid to Quintiles. After receipt of such revenues from a Sponsor,
Quintiles shall remit to Variagenics as soon as practical 95% of the revenues
which are attributable to Variagenics Services rendered by

                                       13
<PAGE>

Variagenics under Joint Alliance Programs, less any amounts applied to Advances
or otherwise as provided in Section 12 below.

                  (ii) Variagenics shall bill Sponsors for all payments due
under Unilateral Alliance Programs, and revenue remitted by Sponsors thereunder
shall be paid to Variagenics. After receipt of such revenues from a Sponsor,
Variagenics shall remit to Quintiles as soon as practical a commission equal to
[      ]% of revenues received under Unilateral Alliance Programs.

                  (iii) Each party shall keep reasonably detailed records of all
revenues received under Alliance Programs, which shall be available for
inspection by the other party, upon reasonable advance notice.

            (f) Alliance Brands.

                  (i) Any trademarks, service marks or other relevant brand
names (collectively, "Brands") created, registered or used in relation to
marketing of Alliance Programs under this Agreement will be agreed upon by both
parties. Quintiles will be responsible for maintaining any registrations related
to these Brands, except as such Brands relate solely to Variagenics
Technologies, Variagenics Services or Variagenics Gene Rights, and the expenses
associated with maintaining such registrations shall borne equally by the
parties.

      4. License from Variagenics to Quintiles.

            (a) To the extent necessary to permit Quintiles to perform Clinical
Services under any Joint Alliance Program, Variagenics hereby grants to
Quintiles a worldwide, nonexclusive license under all Variagenics Technology
(other than Variagenics Gene Rights) and a worldwide, non-exclusive sublicense
under all licenses of Variagenics Technology to

                                       14
<PAGE>

Variagenics to use Variagenics Technology (other than Variagenics Gene Rights)
solely to perform Clinical Services for Sponsors in Joint Alliance Programs.
Such license and sublicense shall become effective for each Joint Alliance
Program upon execution of the Alliance Agreement with respect thereto and shall
terminate on the Termination Date with respect to such Joint Alliance Program.
Quintiles will not have the right to sublicense Variagenics Technology. In the
event that Variagenics owns or otherwise controls any technology during the term
of the Agreement that is reasonably required to practice Variagenics Technology
licensed to Quintiles in any Joint Alliance Program, then Variagenics will use
reasonable efforts to license or sublicense, as the case may be, such technology
to Quintiles, to the extent Variagenics has a legal right to do so.

            (b) After the date hereof, upon request by Quintiles, Variagenics
shall, within a reasonable time thereafter, make available to Quintiles know-how
with respect to use of the Variagenics Technology licensed to Quintiles under
Section 4(a), through such reasonable written and oral disclosures and such
reasonable on site training as Quintiles may request. Without limiting the
generality of the foregoing, Variagenics will provide Quintiles with such
manuals, standard operating procedures, process descriptions and the like, as
Variagenics employs in its own utilization of such Variagenics Technology.
Variagenics will receive reasonable compensation for such activities on terms to
be agreed upon by the parties.

      5. Intellectual Property.

            (a) Variagenics Property. The parties agree that all Variagenics
Technology, as well as any additions or improvements to the Variagenics
Technology developed in the Alliance, will be owned by Variagenics, and shall be
available for Alliance Programs, except to the extent that Variagenics has
exclusively licensed Variagenics Gene Rights to third parties.

                                       15
<PAGE>

            (b) Quintiles Property. The parties agree that all Quintiles
Technology, as well as any additions or improvements to the Quintiles Technology
developed in the Alliance, will be owned by Quintiles, and shall be available
for Alliance Programs.

            (c) Joint Property. Title to all inventions and other intellectual
property, including databases, technologies or processes, jointly made or
created by Quintiles and Variagenics in connection with and arising out of the
Alliance and the Alliance Programs ("Joint Technology") shall be deemed jointly
owned by Quintiles and Variagenics. Joint Technology shall not include Quintiles
Technology or Variagenics Technology or any additions or improvements thereto
developed in the Alliance. The parties will seek to identify all Joint
Technology and collaborate in its development. The parties will have the right
to sublicense the Joint Technology by mutual agreement.

      6. Term; Termination; Consequences of Termination.

            (a) Term. The term of this Agreement shall commence on the date of
this Agreement and shall expire on the fifth anniversary thereof, unless earlier
terminated pursuant to the provisions of this Agreement; provided, however, that
this Agreement shall remain in full force and effect with respect to any
Alliance Program for which an Alliance Agreement has been executed until such
Alliance Program has been completed or terminated and all provisions hereof
relating to such Alliance Program have been complied with by Quintiles and
Variagenics (an "Alliance Program Completion Date"). This Agreement may be
renewed by mutual written agreement of the parties. As used herein, the term
"Termination Date" shall mean the expiration of the term of this Agreement or
the earlier termination of this Agreement in accordance with this Section 6,
except that with respect to any particular Alliance Program (including Advances

                                       16
<PAGE>

pursuant to Section 12 relating to such Alliance Program), such term shall mean
the later of the aforesaid date or the Alliance Program Completion Date.

            (b) Termination by Quintiles. This Agreement may be terminated by
Quintiles in the event of a material breach or default by Variagenics of the
terms and conditions of this Agreement (so long as Quintiles is not in material
breach or default of this Agreement); provided, however, Quintiles shall first
give Variagenics notice of the proposed termination, specifying the grounds
therefor, and Variagenics shall have 45 days after such notice to cure such
breach or default. If not so cured, this Agreement shall terminate at the
expiration of such 45 days. Quintiles also may terminate a particular Joint
Alliance Program if, in Quintiles' reasonable judgment, Variagenics' services to
clients within the Field outside of such Joint Alliance Program are in conflict
with or detrimental to a Sponsor for that Joint Alliance Program, but only after
referral of such matter to the Joint Management Committee and its failure to
resolve the matter within a reasonable time.

            (c) Termination by Variagenics. This Agreement may be terminated by
Variagenics in the event of a material breach or default by Quintiles of the
terms and conditions of this Agreement (so long as Variagenics is not in
material breach or default of this Agreement); provided, however, Variagenics
shall first give to Quintiles notice of the proposed termination, specifying the
grounds therefor, and Quintiles shall have 45 days after such notice to cure
such breach or default. If not so cured, this Agreement shall terminate at the
expiration of such thirty 45 days.

            (d) Termination by Either Party. This Agreement may be terminated by
either party after December 31, 2000 and before June 30, 2001 by 30 days prior
written notice, if

                                       17
<PAGE>

Alliance Agreements providing for aggregate payments to Variagenics of at least
$[      ] have not been executed by December 31, 2000.

            (e) Consequences of Termination. Termination of this Agreement by a
party shall not affect any other rights or remedies which may be available to
such party against a defaulting party. Termination or expiration of this
Agreement shall not relieve any party of any obligation under this Agreement
which accrued or arose prior to such termination, including any obligation to
complete services under Alliance Programs then in progress or to make payments
required by this Agreement. Upon termination of this Agreement in accordance
with its terms, all rights to Variagenics Technology shall be returned to
Variagenics, and all rights to Quintiles Technology shall be returned to
Quintiles, except (in each case) (i) as previously licensed to Sponsors under
Alliance Programs then in progress and (ii) all licensed rights shall continue
after termination (on a non-exclusive basis) for the duration of all Alliance
Programs then in progress, solely for use in such Alliance Programs.

      7. Indemnification: Limitation of Liability.

            (a) Indemnification by Variagenics. Variagenics shall defend,
indemnify and hold harmless Quintiles, its affiliates and its and their
respective directors, officers, agents and employees from and against any and
all liability, loss, damage, claims, causes of action, costs and expenses
(including reasonable attorneys' fees and expenses) to or by any third party to
the extent proximately caused, directly or indirectly, by or as a result of (i)
a material breach or default by Variagenics of this Agreement, (ii) any willful
misconduct, negligent act or omission of Variagenics or any representative of
Variagenics in connection with Variagenics' performance of its obligations under
this Agreement, or (iii) the infringement or violation, or alleged

                                       18
<PAGE>

infringement or violation, by Variagenics or the Variagenics Technology of any
patents or any copyright, trademark, trade secret or other intellectual property
right.

            (b) Indemnification by Quintiles. Quintiles shall defend, indemnify
and hold harmless Variagenics, its affiliates and its and their respective
directors, officers, agents and employees from and against any and all
liability, loss, damage, claims, causes of action, and costs and expenses
(including reasonable attorneys' fees and expenses) to or by any third party to
the extent proximately caused, directly or indirectly, by or as a result of (i)
any material breach or default under this Agreement by Quintiles, (ii) any
willful misconduct, negligent act of omission of Quintiles or any representative
of Quintiles in connection with Quintiles' performance of its obligations under
this Agreement, or (iii) the infringement or violation, or alleged infringement
or violation, by Quintiles or the Quintiles Technology of any patents or any
copyright, trademark, trade secret or other intellectual property right.

            (c) Indemnification Procedures. The party seeking indemnification
hereunder (the "Indemnified Party") shall: (a) give the party obligated to
indemnify (the "Indemnifying Party") prompt notice of any such claim or law suit
(including a copy thereof) served upon Indemnified Party; and (b) the
Indemnified Party shall fully cooperate with Indemnifying Party and its legal
representatives in the investigation of any matter the subject of
indemnification, and (c) the Indemnified Party shall not unreasonably withhold
its approval of the settlement of any such claim, liability, or action by the
Indemnifying Party covered by this indemnification provision unless such
settlement would require the Indemnified Party to be subject to any injunction
or to make a monetary payment or to take any action or refrain from taking any
action in the future; provided, however, that the Indemnified Party's failure to
comply with its obligations pursuant to this Section shall not constitute a
breach of this Agreement nor relieve

                                       19
<PAGE>

the Indemnifying Party of its indemnification obligations pursuant to this
Section, except to the extent, if any, that the Indemnifying Party's defense of
the affected claim, action or proceeding actually was materially impaired
thereby. The Indemnifying Party shall make reasonable efforts to minimize any
interruption in the normal conduct of the Indemnified Party's business in
requesting the Indemnified Party's cooperation and shall reimburse the
Indemnified Party's reasonable out-of-pocket expenses. The Indemnified Party may
use the same counsel, selected by the Indemnifying Party, as joint counsel in
the defense of any such claim, unless the Indemnified Party, in the exercise of
commercially reasonable judgment, determines that it needs to retain separate
counsel because of an actual or potential conflict of interest between the
Indemnifying Party and the Indemnified Party.

            (d) Limitation of Liability. Neither party or its affiliates, nor
any of its or their respective directors, officers, employees or agents shall
have any liability for any special, incidental, or consequential damages,
including without limitation for loss of opportunity, loss of revenue or profit,
or loss of the use of any data or information supplied hereunder, in connection
with or arising out of this Agreement, even if the party shall have been advised
of the possibility of such damages.

      8. Dispute Resolution. (a) The parties will attempt in good faith to
resolve any controversy or claim between the parties arising out of or relating
to this Agreement promptly by negotiations between the parties. Any such matter
which is not so resolved shall be referred promptly to the Joint Management
Committee, who shall meet and endeavor in good faith to resolve the same within
15 days after their meeting for such purpose. If the Joint Management Committee
is unable unanimously to resolve any matter before it, the Joint Management
Committee shall promptly notify a high-ranking corporate officer designated by
each party who

                                       20
<PAGE>

will meet at least once and attempt to resolve the matter. If such executive
officers are unable to resolve the matter within 15 days, then either party may
pursue any available remedies under this Agreement or otherwise available.

            (b) Arbitration. Any controversy, dispute or claim arising out of or
in connection with this Agreement, or the breach, termination or validity hereof
that is not resolved pursuant to Section 8(a), shall be settled by final and
binding arbitration to be conducted by an arbitration tribunal in New York, New
York pursuant to the commercial arbitration rules of the American Arbitration
Association. The arbitration tribunal shall consist of three arbitrators. The
party initiating arbitration shall nominate one arbitrator in the request for
arbitration and the other party shall nominate a second in the answer thereto
within thirty (30) days of receipt of the request. The two arbitrators so named
will then jointly appoint the third arbitrator. If the answering party fails to
nominate its arbitrator within the thirty (30) day period, or if the arbitrators
named by the parties fail to agree on the third arbitrator within thirty (30)
days, the office of the American Arbitration Association in New York, New York
shall make the necessary appointments of such arbitrator(s). The arbitrators
shall be requested to (i) establish a procedure and timetable for discovery and
trial which will complete all hearings within ninety (90) days after appointment
of the third arbitrator, and (ii) render their decision within fifteen (15) days
after completion of all hearings. Each party shall pay the costs of its
respective arbitrator, and the parties shall share equally the costs of the
third arbitrator. The decision or award of the arbitration tribunal (by a
majority determination, or if there is no majority, then by the determination of
the third arbitrator) shall be final, and judgment upon such decision or award
may be entered in any competent court or application may be made to any
competent court for judicial acceptance of such decision or award and an order
of enforcement. In the event

                                       21
<PAGE>

of any procedural matter not covered by the aforesaid rules, the procedural law
of the State of New York shall govern.

      9. Representations and Warranties.

            (a) Representations and Warranties of Variagenics. Variagenics
hereby represents and warrants to Quintiles as follows:

                  (i) Variagenics has duly executed and delivered each of this
Agreement and the Note and each of this Agreement and the Note constitute the
valid and binding obligation of Variagenics, enforceable against Variagenics in
accordance with its terms.

                  (ii) Variagenics owns the entire right, title and interest in
and to the Variagenics Technology, or has sufficient rights therein, to use the
Variagenics Technology for the purposes set forth in this Agreement. To
Variagenics' knowledge, the Variagenics Technology to be used as contemplated by
this Agreement does not infringe or violate any patents or any copyright,
trademark, trade secret or other intellectual property right, and there are no
claims of any such infringement or violation which have been asserted to
Variagenics. Variagenics agrees that it will not knowingly use as contemplated
by this Agreement any patent, copyright, trademark, trade secret or other
intellectual property in a manner that infringes on the rights of any third
party.

                  (iii) Variagenics is not a party to any strategic relationship
relating to marketing of Variagenics Services or Variagenics Technology in
combination with Clinical Services in the Field or to any agreement or
arrangement (other than licenses of Variagenics Gene Rights) which could in any
material way restrict it from fulfilling its obligations under this Agreement.
Until December 31, 2000, Variagenics shall not enter into any third-party
strategic

                                       22
<PAGE>

alliance relating to marketing of Variagenics Services or Variagenics Technology
in combination with Clinical Services in the Field. Variagenics will not enter
into any agreement or arrangement (other than licenses of Variagenic Gene
Rights) which could in any material way restrict Variagenics' ability to perform
its obligations under this Agreement or any Alliance Program, including the
grant of any right or interest in or to any Variagenics Technology, except as
expressly contemplated or permitted by this Agreement.

            (b) Representations and Warranties of Quintiles. Quintiles hereby
represents and warrants to Variagenics as follows:

                  (i) Quintiles has duly executed and delivered this Agreement
and this Agreement constitutes the valid and binding obligation of Quintiles,
enforceable against Quintiles in accordance with its terms.

                  (ii) Quintiles owns the entire right, title and interest in
and to the Quintiles Technology, or has sufficient rights therein, to use the
Quintiles Technology for the purposes set forth in this Agreement. To Quintiles'
knowledge, the Quintiles Technology, as it currently exists, to be used as
contemplated by this Agreement does not infringe or violate any patents or any
copyright, trademark, trade secret or other intellectual property right, and
there are no claims of any such infringement or violation which has been
asserted to Quintiles.

                  (iii) Quintiles is not a party to any strategic relationship
relating to marketing of Clinical Services in combination with services or
technology of third parties in the Field or to any agreement or arrangement
which could in any material way restrict it from fulfilling its obligations
under this Agreement. Until December 31, 2000, Quintiles shall not enter into
any third-party strategic alliance relating to marketing of Clinical Services in
combination with services or technology of third parties in the Field. Quintiles
will not enter into

                                       23
<PAGE>

any agreement or arrangement which could in any material way restrict Quintiles'
ability to perform its obligations under this Agreement or any Alliance Program
or otherwise impact the viability of the Alliance, except as expressly
contemplated or permitted by this Agreement.

      10. Confidentiality. In connection with any Alliance Program or otherwise
in connection with this Agreement or the conduct of the Alliance, each party
(the "Recipient") may receive, either intentionally or unintentionally, certain
oral and written proprietary and confidential information of the other party
(the "Disclosing Party") (or a third party providing such information to the
Disclosing Party) which is not otherwise a part of the public domain
("Proprietary Information"). Proprietary Information includes, but is not
limited to, intellectual property, know-how, trade secrets, computer software,
pricing information, physician lists, investigation/nurse coordinator network
lists, mailing lists, subject and patient lists, employee lists, fee schedules,
client and customer lists, programmactical information and structure,
utilization review procedures, proprietary sequence information, variance
discovery and variance detection techniques, pharmacogenomics algorithms,
applications and procedures, formats and structure and related information and
documents concerning the planning, structure and operations of the Disclosing
Party or relating to its business affairs. Each party (for itself, its
affiliates and its and their respective directors, officers, employees, agents,
subcontractors, affiliates and representatives) agrees that all Proprietary
Information shall be disclosed to the Recipient's directors, officers,
employees, agents, subcontractors, affiliates and representatives only on a
need-to-know basis for the purposes of carrying out the purposes of any Alliance
Program, this Agreement or the Alliance. Each party further agrees to keep all
Proprietary Information in the strictest confidence, to use the Proprietary
Information only in furtherance of the purposes of this Agreement, not to
duplicate, transmit, reverse engineer, decompile, or

                                       24
<PAGE>

disassemble any Proprietary Information, and not to, directly or indirectly,
divulge, disclose, reveal, report, or transfer such Proprietary Information to
any third party without, in each instance, obtaining specific, prior written
authorization of the Disclosing Party. Each party further agrees that all health
records of patients or subjects of the investigators participating in any
Alliance Program shall be treated as confidential so as to comply with all state
and federal laws and regulations and industry standards regarding the
confidentiality of patent health records and research records. Subject to the
right of access provided herein, any Proprietary Information developed by either
party in connection with the Alliance shall be and remain the property of the
party which developed such Proprietary Information, except as provided in
Section 5(c).

      Notwithstanding the foregoing, the obligations set forth above shall not
prevent either party from disclosing information:

            (a) which is or becomes generally available to the public other than
as a result of a disclosure by or at the direction of, the Recipient or its
affiliates or their respective directors, officers, employees, agents, advisors,
and other representatives;

            (b) was or becomes available to the Recipient on a non-confidential
basis from a source other than the Disclosing Party or its representatives,
provided that such source is not bound by a confidentiality agreement with the
Disclosing Party in respect thereof (unless the Recipient did not know or have
reason to know of the existence of such a confidentiality agreement);

            (c) was within the Recipient's possession prior to its being
furnished to the Recipient by or on behalf of the Disclosing Party, provided
that the source of such information was not bound by a confidentiality agreement
with the Disclosing Party in respect thereof (unless

                                       25
<PAGE>

the Recipient did not know or have reason to know of the existence of such a
confidentiality agreement); or

            (d) which the Recipient can demonstrate was developed independently
of any disclosure by the Disclosing Party by persons having no access to any
disclosure of the Disclosing Party.

      Notwithstanding any provisions herein to the contrary, in the event that
any recipient of Proprietary Information becomes obligated by mandatory
applicable law, regulatory rule or judicial or administrative order to disclose
such Proprietary Information, or any portion thereof, the Recipient shall
promptly notify the Disclosing Party thereof, so that the Disclosing Party may
seek an appropriate protective order or other remedy with respect to resisting
or narrowing the scope of such requirement. In the absence of such a protective
order or other remedy, the Recipient may disclose such Proprietary Information
without liability hereunder, provided that the Recipient furnishes only such
portion of the Proprietary Information as is legally required to be disclosed.

       11. Non-Solicitation. During the period from the date hereof, through and
including the first anniversary of the date of expiration or termination of this
Agreement or any extensions thereof (regardless of the reason for termination),
neither party shall, directly or indirectly through one or more intermediaries,
employ, contract with, solicit for employment or engagement, or advise or
recommend to any other person or entity that such person or entity employ or
solicit for employment or engagement, any person who at any time during the term
of this Agreement is or was an employee of the other party within the previous
one year, including a person employed with respect to an Alliance Program,
without, in each instance, obtaining the

                                       26
<PAGE>

prior written consent of the other Party. Consent may be withheld in the party's
absolute discretion.

      12. Financing from Quintiles to Variagenics.

            (a) Advances by Quintiles to Variagenics. Quintiles agrees, on the
terms and conditions set forth below, to make advances (the "Advances") to
Variagenics from time to time during the period from the date of this Agreement
until the Termination Date. Each advance shall be a loan from Quintiles to
Variagenics and Variagenics' obligations to pay the principal amount of the
Advances thereon shall be evidenced by the promissory note dated the date of
this Agreement and executed by Variagenics and delivered to Quintiles (the
"Note").

            (b) Making of Advances. At any time after a Sponsor has accepted a
Joint Alliance Program proposal made by Quintiles and Variagenics, as evidenced
by an Alliance Agreement between Quintiles and such Sponsor, Variagenics may
deliver to Quintiles a written request (an "Advance Request") for an Advance in
an amount equal to the Applicable Percentage (as defined below) of the
Qualifying Program Revenues (as defined below). Each Advance Request shall be in
writing and be delivered in accordance with Section 13(d). Each Advance Request
shall be irrevocable and binding on Variagenics, and Variagenics shall reimburse
Quintiles for any reasonable cost or expense incurred by Quintiles as a result
of any revocation or attempted revocation of such Advance Request, including any
cost or expense incurred by reason of Quintiles borrowing to fund the Advance.
Within 30 days of the receipt by Quintiles of an Advance Request, Quintiles
shall make such Advance by wire transfer of immediately available funds to an
account designated by Variagenics so long as (i) no Event of Default exists, and
(ii) Variagenics has complied with all conditions precedent to such Advance
described below. "Qualifying Program Revenues" shall mean (x) the amount of
revenues which are

                                       27
<PAGE>

attributable to Variagenics Services or Variagenics Technology rendered by
Variagenics and which are payable by a Sponsor under a Joint Alliance Program
during the period beginning on the date of the Alliance Agreement for such Joint
Alliance Program and ending on the earlier of (i) the date which is one year
following the date of the applicable Advance Request or (ii) the Termination
Date of such Alliance Program, all as determined pursuant to the terms of such
definitive agreement, or if the Qualifying Program Revenues are not determinable
on the face of the Alliance Agreement, then as determined by mutual agreement by
Quintiles and Variagenics consistent with the foregoing definition, less (y) the
amount of any Qualifying Program Revenues which have previously been paid by the
Sponsor. "Applicable Percentage" shall mean (x) with respect to Joint Alliance
Programs with the Sponsors who have revenues in the current or preceding fiscal
year of at least $100,000,000, 80%, and (y) with respect to Joint Alliance
Programs with any Sponsor. other than as described in the foregoing clause (x),
between 60% and 80%, with the specific percentage to be negotiated in good faith
by the parties, taking into account appropriate factors, including the perceived
risk of nonpayment by the Sponsor, prior payment history by the Sponsor to
either of the parties, and the nature and terms of the Joint Alliance Program
(including the amount of payments due under the Joint Alliance Program).
Notwithstanding anything to the contrary in this Agreement, Quintiles shall have
no obligation to make any Advance after this Agreement is terminated pursuant to
Section 6, except for Advances for Alliance Programs that continue after such
termination pursuant to Section 6, or after the occurrence of an Event of
Default. In addition, Quintiles shall have no obligation to make any Advance
unless and until Variagenics has obtained the written agreement of Imperial Bank
to subordinate its security interest in the Collateral to the security interest
in the Collateral granted to Quintiles by this Agreement.

                                       28
<PAGE>

            (c) Application of Alliance Program Revenues to Advances. Upon
receipt by Quintiles of revenues from a Sponsor pursuant to a Joint Alliance
Program, Quintiles shall, after retaining for Quintiles the amounts provided in
Section 3(e), apply such revenues as follows: first, to repay any Advances made
with respect to such Joint Alliance Program; second, to repay any other
outstanding Advances under any other Joint Alliance Programs; and third, any
remaining revenues to Variagenics in accordance with Section 3(e).

            (d) Repayment of Advances; Certain Other Obligations.

                  (i) To the extent not paid pursuant to Section 12(c), all
Advances shall be due and payable by Variagenics upon the earlier of (A) the
receipt by Quintiles of revenues under a Joint Alliance Program with respect to
which an Advance was made, or (B) the Termination Date of the Alliance Program
to which an Advance relates, except as otherwise provided in Section 12(h).
Notwithstanding anything in this Agreement or the Note to the contrary,
Quintiles agrees that if Variagenics has rendered Variagenics Services pursuant
to a Joint Alliance Program and if a Sponsor fails to pay revenues under a Joint
Alliance Program for which an Advance has been made to Variagenics, then
Quintiles will refrain from pursuing collection of such Advance from
Variagenics, unless in the event such Sponsor has indicated in writing to
Quintiles or Variagenics that the reason for such Sponsor's failure to pay such
revenues or any portion thereof is that such Sponsor is dissatisfied with the
Variagenics Services under the Joint Alliance Program and continues to be
dissatisfied after the meeting contemplated by Section 12(d)(ii). In such event,
the parties agree that Quintiles shall have full recourse against Variagenics to
obtain repayment of such Advance. Nothing contained in this subsection (d),
however, shall limit Quintiles' right at any time to apply any revenues received
from Sponsors under Joint Alliance Programs to Advances as described in
subsection (c) above.

                                       29
<PAGE>

                  (ii) In the event that a Sponsor has indicated to Quintiles or
Variagenics that it is dissatisfied with the Variagenics Services under a Joint
Alliance Program, as described above, Variagenics and Quintiles will meet with
the Sponsor to resolve the matter. If after such meeting the Sponsor indicates
in writing to Quintiles or Variagenics that the Sponsor continues to be
dissatisfied with the Variagenics Services under a Joint Alliance program,
Variagenics agrees:

                        (A) to provide again such services to the satisfaction
of the Sponsor, at no additional cost or expense to the Sponsor, or

                        (B) if requested by the Sponsor, to cause a third party
(in lieu of Variagenics) to provide such services to the satisfaction of the
Sponsor, at Variagenics' cost and expense.

            (e) Grant of Security Interest.

                  (i) As security for the prompt and complete payment and
performance of all Advances and the Note, Variagenics does hereby assign,
transfer and pledge to Quintiles and does hereby grant to Quintiles a continuing
security interest of first priority in all right, title and interest of
Variagenics in, to and under all cash and all "accounts," "contract rights,"
"general intangibles," "instruments," and the "proceeds" thereof or claims
relating thereto (as such terms are used or defined in the Uniform Commercial
Code) in each case which from time to time relate to or arise out of any amounts
payable to Variagenics or otherwise attributable to Variagenics or Variagenics
Services or Variagenics Technology under Joint Alliance Programs or any amounts
payable by Quintiles to Variagenics under Joint Alliance Programs (collectively,
the "Collateral").

                                       30
<PAGE>

                  (ii) Variagenics represents, warrants and covenants, as
follows:

                        (A) All filings, registrations and recordings necessary
or appropriate to create, preserve, protect and perfect the security interests
granted by Variagenics to Quintiles hereby in respect of the Collateral have
been accomplished, and the security interest granted to Quintiles pursuant to
this Agreement in and to the Collateral constitutes a valid and enforceable
perfected security interest therein superior and prior to the rights of all
other persons therein and is entitled to all the rights, priorities and benefits
afforded by the Uniform Commercial Code or other applicable law as enacted in
any relevant jurisdiction to perfected security interests;

                        (B) on the date of this Agreement, except for a security
interest granted to Imperial Bank ("Imperial Bank"), the Collateral is free of
any liens, security interests or encumbrances and there exists no financing
statement (or similar statement or instrument or registration under the law of
any jurisdiction) covering or purporting to cover any interest of any kind in
the Collateral, and so long as any of the Advances remain unpaid, Variagenics
will not execute or authorize to be filed in any public office any security
agreement or financing statement (or similar statement or instrument or
registration under the law of any jurisdiction) relating to a security interest
senior to the security interest granted in this Agreement with respect to the
Collateral;

                        (C) the chief executive office of Variagenics is located
at Cambridge, Massachusetts and Variagenics will not establish a new location
for its chief executive office until Variagenics shall have given to Quintiles
not less than 30 days' prior written notice of its intention so to do, clearly
describing such new location and providing such other information in connection
therewith as Quintiles may reasonably request; and

                                       31
<PAGE>

                        (D) neither the execution and delivery of this Agreement
and the other documents executed in connection herewith, nor consummation of any
of the transactions herein contemplated, nor compliance with the terms and
provisions hereof, will contravene or conflict with any provision of law,
statute or regulation to which Variagenics is subject or any judgment, license,
order or permit applicable to Variagenics or any indenture, mortgage, deed of
trust, agreement or other instrument to which Variagenics is a party or by which
Variagenics may be bound, or to which Variagenics may be subject, or violate or
contravene any provision of the bylaws of Variagenics or the instruments of
incorporation forming Variagenics.

                  (iii) Variagenics will, at its own expense, make, execute,
endorse, acknowledge, file or deliver to Quintiles from time to time such
confirmatory assignments, conveyances, financing statements, powers of attorney,
certificates, reports, and other assurances or instruments and take such further
steps relating to the Collateral as Quintiles deems reasonably appropriate or
advisable to perfect, preserve or protect its security interest in the
Collateral.

                  (iv) Variagenics agrees that, if any Event of Default (as
defined in the Note) shall have occurred and be continuing, then and in every
such case, Quintiles, in addition to any rights now or hereafter existing under
applicable law, shall have all rights as a secured creditor under the Uniform
Commercial Code in all relevant jurisdictions.

            (f) Conditions Precedent to Initial Advance. The obligation of
Quintiles to make the initial Advance is subject to the condition precedent that
Quintiles shall have received on or before the day of such Advance the
following, in form and substance satisfactory to Quintiles:

                                       32
<PAGE>

                  (i) the Note, duly executed by Variagenics;

                  (ii) acknowledgment copies or stamped receipt copies of proper
financing statements, duly filed under the Uniform Commercial Code of all
jurisdictions that Quintiles may deem necessary or desirable in order to perfect
the security interests created in the Collateral;

                  (iii) completed requests for information, listing the
financing statements referred to in paragraph (ii) above and all other effective
financing statements filed in the jurisdictions referred to in paragraph (ii)
above that name Variagenics as debtor, together with copies of such other
financing statements (none of which shall cover the Collateral);

                  (iv) evidence of the completion of all recordings and filings
of or with respect to the Collateral that Quintiles may deem necessary or
desirable in order to perfect the security interests created in the Collateral;

                  (v) evidence that all other actions necessary or, in the
opinion of Quintiles, desirable to perfect and protect the security interests
created in the Collateral have been taken;

                  (vi) certified copies of the resolutions of the Board of
Directors of Variagenics approving each of this Agreement and the Note
(collectively, the "Loan Documents"), and of all documents evidencing other
necessary corporate action and governmental approvals, if any, with respect to
each such Loan Document; and

                  (vii) a favorable opinion of counsel for Variagenics,
substantially in the form of Exhibit B.

                                       33
<PAGE>

            (g) Conditions Precedent to All Advances. The obligation of
Quintiles to make each Advance (including the initial Advance) shall be subject
to the further conditions precedent that, on the date of such Advance, the
following statements shall be true and Quintiles shall have received a
certificate signed by a duly authorized officer of Variagenics dated the date of
such Advance, stating that (and each of the giving of the applicable notice
requesting such Advance and the acceptance by Variagenics of the proceeds of
such Advance shall constitute a representation and warranty by Variagenics that
on the date of such Advance such statements are true):

                        (A) the representations, warranties and covenants
contained in Section 1 2(e)(ii) of this Agreement are correct on and as of the
date of such Advance, before and after giving effect to such Advance and to the
application of the proceeds therefrom, as though made on and as of such date,
and

                        (B) no event has occurred and is continuing, or would
result from such Advance or from the application of the proceeds therefrom,
which constitutes an Event of Default (as defined in the Note) or would
constitute an Event of Default but for the requirement that notice be given or
time elapse or both.

            (h) Certain Events of Default. The occurrence of any one or more of
the following events shall constitute an "Event of Default":

                        (A) Variagenics shall fail to pay this Note or any
portion thereof when due;

                        (B) Quintiles shall terminate this Agreement pursuant to
Section 8;

                                       34
<PAGE>

                        (C) Variagenics shall fail to pay when due, whether by
scheduled maturity, acceleration or otherwise, any material indebtedness under
Senior Debt or any other default or event of default shall occur under the terms
of any agreement or instrument pursuant to which Variagenics has incurred any
Senior Debt, as a result of which default such Senior Debt shall be declared to
be due and payable prior to the stated maturity thereof;

                        (D) Variagenics shall (i) file a voluntary petition or
commence a voluntary case seeking liquidation, reorganization, dissolution,
arrangement, readjustment of debts or any other relief under the U.S. Bankruptcy
Code or under any other applicable bankruptcy, insolvency or similar law now or
hereafter in effect, (ii) consent to the appointment of or taking possession by
a custodian, trustee, receiver or similar official for or of all or a
substantial part of its properties, (iii) fail generally to pay its debts as
they become due or admit in writing its inability to pay its debts generally as
they become due, or (iv) make a general assignment for the benefit of creditors;
or Variagenics shall take any action to authorize or approve any of the actions
described above;

                        (E) Any involuntary petition or case shall be filed or
commenced against Variagenics seeking liquidation, reorganization, dissolution,
arrangement, readjustment of debts, the appointment of a custodian, trustee,
receiver or similar official for it or all or a substantial part of its
properties or any other relief under the U.S. Bankruptcy Code or under any other
applicable bankruptcy, insolvency or similar law now or hereafter in effect,
which petition or case is not dismissed, bonded or discharged within 60 days of
the date of filing; or an order for relief (including, without limitation, the
appointment of a custodian, trustee, receiver or similar official) shall be
entered in any such proceeding, which order is not immediately stayed or made
subject to other similar relief; or

                                       35
<PAGE>

                        (F) the dissolution, liquidation or termination of
Variagenics. Upon and at any time after the occurrence and during the
continuance of any Event of Default, Quintiles may (i) declare in writing all or
any part of the Note or the Advances to be immediately due and payable,
whereupon such amounts shall become immediately due and payable; provided,
however that, upon the occurrence of an Event of Default pursuant to Sections I
2(h)(D) and (E) above, all of such amounts shall automatically become
immediately due and payable, and (ii) exercise all rights and remedies available
to it under, and subject to, this Agreement, the Note and applicable law.

                  (i) Subordination. The payment of Advances shall be
subordinate to the payment of all Senior Debt as provided in this Section 12(i).
Upon the default of Senior Debt, pursuant to which such Senior Debt shall be
declared to be due and payable prior to the stated maturity thereof, Quintiles
shall refrain from pursuing collection of Advances from Variagenics as described
in Section 12(d) for a period beginning on the date Quintiles receives written
notice from the holder of such Senior Debt and ending on the earlier of (A) the
date on which Variagenics has paid all amounts then due and payable under such
Senior Debt and (B) 120 days after the date of such notice. Nothing contained in
this Section 12(i), however, shall limit Quintiles' right at any time to apply
any revenues received from Sponsors under Joint Alliance Programs to Advances as
described in Section 12(c) above or to exercise its rights and remedies with
respect to the Collateral.

                  (j) Costs. Expenses and Taxes. Variagenics agrees to pay on
demand all costs and expenses, if any (including reasonable attorneys' fees and
expenses), in connection with the enforcement (whether through negotiations,
legal proceedings or otherwise) of the Note and the provisions of this Section
12, including, without limitation, reasonable attorneys fees and

                                       36
<PAGE>

expenses in connection with the enforcement of rights under this Section. In
addition, Variagenics shall pay any and all stamp and other taxes payable or
determined to be payable in connection with the execution, delivery, filing and
recording of the Loan Documents and the other documents to be delivered under
the Loan Documents, and agrees to save Quintiles harmless from and against any
and all liabilities with respect to or resulting from any delay in paying or
omission to pay such taxes.

                  (k) Interest and Loan Charges Not to Exceed Maximum Allowed by
Law. Anything in this Agreement or the Note to the contrary notwithstanding, in
no event whatsoever, whether by reason of advancement of proceeds of the loans
made pursuant to this Agreement, acceleration of the maturity of the unpaid
balance of the loans or otherwise, shall any interest or loan charges agreed to
be paid to Quintiles for the use of the money advanced or to be advanced
hereunder exceed the maximum amounts collectible under applicable laws in effect
from time to time. It is understood and agreed by the parties that, if for any
reason whatsoever the interest or loan charges paid or contracted to be paid by
Variagenics in respect of the indebtedness evidenced by the Loan Documents shall
exceed the maximum amounts collectible under applicable laws in effect from time
to time, then ipso facto, the obligation to pay such interest or loan charges
shall be reduced to the maximum amounts collectible under applicable laws in
effect from time to time, and any amounts collected by Quintiles that exceeds
such maximum amounts shall be applied to the reduction of the principal balance
of the indebtedness evidenced by the Note or refunded to Variagenics so that at
no time shall any interest or loan charges paid or payable in respect of the
indebtedness evidenced by the Note exceed the maximum amounts permitted from
time to time by applicable law.

      13. Miscellaneous.

                                       37
<PAGE>

            (a) Assignment: Parties in Interest. This Agreement or any of the
rights or obligations hereunder may not be assigned, transferred or
subcontracted (except as provided in Section 3(c)(ii)(B)) by any party hereto
without the prior written consent of the other party; provided, however, that
Quintiles may assign this Agreement to any affiliate of Quintiles. In the event
Variagenics proposes to engage in a sale of all or substantially all of its
assets in the line of business to which this Agreement pertains or to engage in
any merger or consolidation, as a result of which (in either case) stockholders
of Variagenics immediately prior to such transaction do not own a majority of
the voting shares of the resulting or surviving corporation immediately after
such transaction (a `Transaction"), Variagenics shall give Quintiles written
notice (a `Transaction Notice") of such Transaction at least forty-five (45)
days prior to the date anticipated for consummation thereof. Quintiles shall
have a period of thirty (30) days after receipt of the Transaction Notice in
which to give Variagenics written notice (a "Negative Response") that Quintiles
intends to terminate this Agreement upon consummation of such Transaction, in
which event Variagenics shall notify Quintiles of such consummation and
Quintiles shall have a period of ten (10) days after such consummation to
terminate this Agreement. If Quintiles does not give a Negative Response within
such thirty (30) days, Quintiles will be deemed to have given prior written
consent to the Transaction and the assignment of this Agreement in connection
therewith. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns. Each party
hereto intends that this Agreement shall not benefit or create any right or
cause of action in or on behalf of any person other than the parties hereto,
except as set forth in Section 7 hereof.

                                       38
<PAGE>

            (b) Amendment and Waiver. This Agreement or any provision hereof may
not be amended, changed, modified or waived, except by written instrument signed
by the parties hereto. The failure of any party at any time or times to require
performance of any provision of this Agreement shall in no manner affect the
right of such party at a later date to enforce the same. No waiver by any party
of any condition or the breach of any provision, term, covenant, representation
or warranty contained in this Agreement, whether by conduct or otherwise, in any
one or more instances shall be deemed to be or construed as a further or
continuing waiver of any such condition or of the breach of any other provision,
term, covenant, representation or warranty of this Agreement.

            (c) Remedies. The rights and remedies set forth in this Agreement
are cumulative and not exclusive of any rights or remedies provided by law or
otherwise. The exercise by a party of any right or remedy will not preclude such
party from exercising any other right or remedy, and no single or partial
exercise of any right or remedy shall preclude any other or further exercise
thereof. A party may pursue its rights and remedies in such order as it
determines.

            (d) Notices. All notices required or permitted to be given under
this Agreement shall be in writing, and shall be delivered personally or sent by
(a) registered or certified mail, return receipt requested, (b) a nationally
recognized courier service guaranteeing next-day delivery and providing evidence
of receipt, charges pre-paid or (c) facsimile transmission with confirmation of
receipt (with the original promptly sent by any of the foregoing manners), and
shall be deemed to be duly given upon mailing, delivery to such courier, or upon
transmission by facsimile, as the case may be. Any such notice shall be
addressed to the receiving party at such party's address set forth beside its
signature to this Agreement below, or

                                       39
<PAGE>

at such other address as may from time to time be furnished by a party to the
other party by notice as described above.

            (e) Governing Law: Jurisdiction. The construction, validity,
interpretation and performance of this Agreement shall be governed by and
construed in accordance with the laws of the State of North Carolina, without
regard to the conflicts of laws principles thereof.

            (f) Severability. In case any provision in this Agreement shall be
held to be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions hereof will not in any way be
affected or impaired thereby.

            (g) Entire Agreement: Integration. This Agreement constitutes the
full understanding of the parties and a complete statement of the terms. of
their agreement with respect to the subject matter contained herein and
supersedes and cancels all prior agreements, negotiations, correspondence,
undertakings and communications of the parties, oral or written, respecting such
subject matter. Notwithstanding the foregoing, all prior agreements between the
parties regarding confidentiality shall remain in full force and effect.

            (h) Headings: Exhibits. The article, section and paragraph headings
contained in this Agreement have been inserted for reference convenience only
and shall not be used in any way to construe or interpret this Agreement. All
Exhibits to this Agreement are specifically incorporated herein by reference.

            (i) Counterparts. This Agreement and any amendment or supplement
hereto may be executed in any number of counterparts, each of which when
executed and delivered shall be deemed to be an original and all of which
counterparts taken together shall constitute but one and the same instrument.

                                       40
<PAGE>

            (j) Publicity. The parties will agree upon a press release which
shall be issued promptly after the execution of this Agreement. Except as
otherwise required by applicable law, no party shall issue any press release or
make any other public statement relating to, connected with or arising out of
this Agreement or the matters contained herein without the prior written
approval by the other party of the contents and the manner of presentation and
publication thereof, which approval shall not be unreasonably withheld. Once a
particular item of information has been disclosed as provided in this subsection
(j), either party may make subsequent disclosure of such information without
further approval of the other party, except that any further press release shall
be mutually approved by the parties.

                                       41
<PAGE>

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

Address: P.O. Box 13979                   QUINTILES TRANSNATIONAL CORP.
         -----------------
Research Triangle Park, NC
--------------------------
27709
--------------------------

Attention: Mr. Reynders                   By: /s/ Ludo Reynders
          ----------------                   --------------------------------

                                          Name: Ludo Reynders

                                          Title: CEO Quintiles CRO Division

Address: Variagenics, Inc.                VARIAGENICS, INC.
         -----------------
60 Hampshire Street
--------------------------
Cambridge, MA 02139
--------------------------

Attention: Fred D. Ledley                 By: /s/ Fred D. Ledley, M.D.
          ----------------                   --------------------------------

                                          Name: Fred D. Ledley, M.D.

                                          Title: President

                                       42
<PAGE>

Exhibit A: Price Schedule for Alliance Programs

1. Variance Discovery and Database

(a) Provided to Sponsor:

i.    Summary Report on variances within selected genes involved in the
      pharmacokinetics and pharmacodynamics of a specified pharmaceutical
      product under development, based on screening of a standard sample
      population. For each variance, Variagenics will determine the location of
      the variance, the base change, the predicted effect on the amino acid
      sequence and an estimate of population and sub-population frequencies.

ii.   Database which integrates data on variances discovered in specified genes
      and publicly available information on variances in these genes, their
      chemical, biological and clinical significance (if known) and selected
      literature references.

iii.  Right of first negotiation, for a period of ninety (90) days from delivery
      of the Summary Report and Database(1), to obtain a license, on
      commercially reasonable terms to be negotiated in good faith, to use
      variances discovered by Variagenics and included in report.

(b) Minimum prices:

Variance Discovery and Database capabilities will be priced based on the size of
the pathway to be analyzed for genetic variances.

                      -------------------------------
                      Pathway Size(2)    Minimum Bid
                       (# genes(3))      Price ($000)
                      -------------------------------
                           [  ](4)         [  ]
                      -------------------------------
                           [  ]            [  ]
                      -------------------------------
                           [  ]            [  ](5)
                      -------------------------------

Samples will be screened from [  ] unrelated individuals(6) drawn from an
ethnically diverse standard panel established at Variagenics, which will give a
[  ]% sensitivity to detect alleles occurring at a frequency of [  ]% in the
population represented by the panel.(7)

(c) Additional items priced on request:

i.    Candidate gene selection studies, such as differential gene expression or
      gene linkage.

ii.   Construction of custom panels, including tissue-specific samples(8) and
      population panels for characterization of allele frequencies in specific
      ethnic or disease groups.

iii.  Gene cloning and sequencing or analysis of genomic sequences.

iv.   Rights to use variance information in product research, development or
      marketing.

----------
(1) The Summary Report and Database will be delivered within 3-6 months of
project initiation, to be agreed in advance.

(2) Prices for pathways of intermediate size will be calculated by
interpolation. For example, the price for a [              ].

(3) Prices reflect an [                         ].

(4) Unless otherwise agreed by Variagenics, a limit of one pilot program
representing [     ] genes may be performed for a customer to demonstrate
Variance Discovery and Database capabilities.

(5) Minimum bids for pathways of greater than [ ] genes will be calculated by
extrapolation. For example, the price of a [   ]. Additional reductions in
[                                        ] may be negotiated with the prior
approval of Variagenics.

                                                                               1
<PAGE>

(6) Panels of either [  ] or [  ] individuals may be screened upon request,
giving a [  ]% sensitivity to detect alleles occurring at a frequency of
[            ]% respectively, which will add [          ]%, respectively to
the minimum bid price for the pathway. For example, [                   ].

(7) Minimum bids for pathways with different numbers of individuals screened for
different genes can be calculated [        ]. For example, [         ].

(8) Although not observed to date, some genes may not be expressed at levels
sufficient to be amplified from standard lymphocyte cDNA panels, requiring the
construction of tissue-specific panels.

Exhibit A: Price Schedule for Alliance Programs

2. Pharmacogenomic Services

(a) Provided to Sponsor:
Combinations of services will be provided to fit the project specifications
agreed upon with Sponsors, including, but not limited to:

i.    Clinical Pharmacogenomic Services:

      (A)   Quantitative, molecular, population, evolutionary, epidemiological
            genetics.
      (B)   Medical and clinical genetics.
      (C)   Pharmacogenetic statistics, including power estimation, association
            and cladistic analyses and proprietary statistical algorithms.
      (D)   Development of pharmacogenomic hypotheses and research plan to test
            hypotheses.
      (E)   Protocol and report writing, data management and biostatistics.
      (F)   Health outcomes, competitive dynamics and commercial modeling.
      (G)   Investigator meeting support and investigator site training.

ii.   Non-clinical Pharmacogenomic Services:

      (A)   Candidate gene selection studies, such as differential gene
            expression or other biochemical analyses.
      (B)   Experimental studies to confirm structural or functional effects of
            genetic variance.
      (C)   Pharmacology and medicinal chemistry.
      (D)   Molecular modeling and simulation.
      (E)   Development of functional and binding affinity assays for screening
            drug compounds.

(b) Minimum prices:

Pharmacogenomic Services will be priced on a Full Time Equivalent basis as
follows:

          -----------------------------------------------------
                                         Minimum Bid Price
          Pharmacogenomic Services   ($000 per FTE per Year(9))
          -----------------------------------------------------
          Clinical                              [   ]
          -----------------------------------------------------
          Non-clinical                          [   ]
          -----------------------------------------------------

In addition, project-related travel and expenses will be reimbursed by the
Sponsor at cost.

(c) Additional items priced on request:

i.    Rights to use variance information in product research, development or
      marketing.
ii.   Milestones and royalties for successful completion of projects
      incorporating variance use rights.

----------
(9) For calculation of project prices on an hourly basis, these minimum bid
prices per FTE per year can be converted to hourly rates based on 2080 hours per
FTE per year, such that minimum bid prices for Clinical and Non-clinical PTEs
will be [           ] per hour, respectively.

                                                                               2
<PAGE>

Exhibit A: Price Schedule for Alliance Programs

3. Variance Detection

(a) Provided to Sponsor:

Clinical trial laboratory testing for known genetic variances as part of a
Sponsor clinical trial:

i.    Genomic samples will be prepared from whole blood or established cell
      lines and tested for variances in selected genes as specified in the
      Sponsor's clinical trial protocol.
ii.   Any necessary custom genetic assays will be developed or accessed.
iii.  When necessary, tests will be performed in a manner that is suitable for
      submission to international regulatory bodies.
iv.   Results may be reported on a concurrent basis and a clean laboratory data
      file will be provided for integration into the primary clinical data
      package for analysis.

(b) Minimum prices (10):

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
Clinical Trial Laboratory
Testing Services             Minimum Bid Price    Comments
---------------------------------------------------------------------------------------
<S>                           <C>                 <C>
Assay Development             $[    ] per gene     [     ]
and Validation
---------------------------------------------------------------------------------------

Genetic Tests and             $[  ] per test       [     ]
Results Reporting
---------------------------------------------------------------------------------------
Sample Collection,            $[  ] per patient    Patient kits, sample handling and
Preparation and Handling                           tracking, DNA extraction.
---------------------------------------------------------------------------------------
</TABLE>

Study management services related to variance detection will be priced as
described under pharmacogenomic services. In addition, project-related travel
and expenses will be reimbursed by the Sponsor at cost.

(c) Additional items priced on request:

i.    Discovery of novel genetic variances.
ii.   Development of assays and testing for cDNA haplotypes of selected genes.
iii.  Sequencing of genes for all genetic variations, including new, unknown
      variances.
iv.   Assays for number of gene copies, including gene deletions, and gene
      expression.
v.    Special sample preparation and handling requirements, such as RNA
      stabilization or lymphocyte immortalization.
vi.   Specialized collection, preparation and handling of patient tissue samples
      other than whole blood or established cell lines.
vii.  Extended sample storage or DNA banking.
viii. Statistical analyses of associations between genotypes and phenotypes.

----------
(10) These prices apply only to Variance Detection performed by Variagenics. As
agreed above, Variagenics may engage contractors, including Quintiles
Laboratories, Inc., to perform variance detection. In this event, prices paid to
such contractors, as negotiated by Variagenics, [   ], unless otherwise agreed.

                                                                               3
<PAGE>

Exhibit A: Price Schedule for Alliance Programs

4. Variance Use Rights

(a) Provided to Sponsor(11):
i.    Non-exclusive licenses to use Variances in specified genes for studies
      related to a specified pharmaceutical product in an Alliance Program for a
      period of one year, with an option to renew the licenses annually.
      Continued renewal of a license to use Variances in a gene will prevent the
      grant of rights to a third party that will limit or terminate rights under
      the license.

ii.   Option to purchase, on commercially reasonable terms to be negotiated in
      good faith, exclusive or co-exclusive rights within the specified
      pharmaceutical product's therapeutic class, as available, to use Variances
      in a gene.

(b) Minimum prices:
Non-exclusive rights to use Variances will be provided for [        ].

                 ----------------------------------------------
                 Non-Exclusive               Minimum Bid Price
                 Use Rights                 ($000 per Year)(12)
                 ----------------------------------------------
                 Program Fee per Drug               [  ]
                 ----------------------------------------------
                 Use Fee per Gene                   [  ]
                 ----------------------------------------------

In addition, Variagenics will negotiate in good faith with the Sponsor
reasonable lump sum payments to be paid contingent upon successfully achieving
milestones related to the use of Variances at different stages of the
pharmaceutical product development and approval process.

Upon submission of information related to Variances used to a regulatory body in
an application (including supplementary materials) for approval of a
pharmaceutical product, or a labeling claim related to the use of that
pharmaceutical product, the Sponsor and Variagenics agree to negotiate in good
faith for Variagenics to provide to the Sponsor, on commercially reasonable
terms and as available, non-exclusive rights to market the pharmaceutical
product based on information related to the Variances used.

(c) Additional items priced on request:

i.    Advance purchase of non-exclusive rights to market a pharmaceutical
      product based on information related to Variances used, with or without
      royalties payable on product sales.
ii.   Exclusive, co-exclusive or permanent use rights.
iii.  Rights to use variances outside Alliance Programs.
iv.   Rights to market diagnostic or disease management products or services
      based on Variances.
v.    Rights to use technologies other than genetic variances.

----------
(11) A standard license agreement with detailed terms will be prepared,
maintained and approved by Variagenics.

(12) Licenses may be discontinued with ninety (90) days advance notice. Upon
discontinuation, fees will be pro-rated to the time of termination and any
prepaid amounts will be refunded to the Sponsor.

                                                                               4
<PAGE>

Exhibit A: Price Schedule for Alliance Programs

5. Price Quotations

Unless otherwise requested by a Sponsor, prices will be quoted on a fully
bundled basis and will not be specifically itemized. Prices for Variance Use
Rights may be quoted separately. At the request of a Sponsor, prices may be
itemized by major category (Variance Discovery and Database, Pharmacogenomics
Services, Variance Detection) without prior approval by Variagenics. Any further
itemization of prices within major categories requires prior approval by
Variagenics. All prices will be payable to Variagenics in United States Dollars
(US$) and Quintiles will be responsible for conversion to US$ of any payments
made in other currencies.

6. Discounts from Bid Prices

As necessary to respond to market conditions, including competitive bids, and
only if the Sponsor specifically requests a price reduction, discounts up to
[  ]% off these minimum bid prices may be offered and accepted by Quintiles
without prior approval by Variagenics. Discounts up to an additional [  ]% of
these bid prices may be offered and accepted by Quintiles, at Quintiles'
expense, without prior approval by Variagenics. In such cases, the price
payable to Variagenics (and the price used to calculate Qualifying Program
Revenues) will represent [  ]% of the minimum bid price, and Quintiles will
be responsible for paying to Variagenics the amount of any additional
discounts provided to the Sponsor. Approval by Variagenics will be required
prior to offer or acceptance by Quintiles of any discounts greater than [  ]%
off the minimum bid prices.

7. Payment Timing for Unilateral Alliance Programs

For Unilateral Alliance Programs, which do not qualify for an advance of
revenues by Quintiles to Variagenics, the following minimum payment timing terms
will apply:

--------------------------------------------------------------------------------
                                Minimum Upfront Payment   Minimum Final Payment
Product Component                     Bid (Accept)             Bid (Accept)
--------------------------------------------------------------------------------
Variance Discovery                    [ ]% ([ ]%)               [ ]% ([ ]%)
and Database
--------------------------------------------------------------------------------
Pharmacogenomic Services              [ ]% ([ ]%)               [ ]% ([ ]%)
--------------------------------------------------------------------------------
Variance Detection                    [ ]% ([ ]%)               [ ]% ([ ]%)
--------------------------------------------------------------------------------
Variance Use Rights(13)               [ ]% ([ ]%)               [ ]% ([ ]%)
--------------------------------------------------------------------------------

Payments are expressed as a percent of the total contract value. The remaining
amounts will be paid in equal amounts to be evenly spread between initiation and
completion of services performed by Variagenics.

----------
(13) Payment terms for annual fees only, excluding any downstream payments such
as milestones or royalties.

                                                                               5

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