Document:

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                                  CONFIDENTIAL
                           EXCLUSIVE LICENSE AGREEMENT

          This Exclusive License Agreement (this "AGREEMENT") is entered into as
of the 23rd day of December, 1997 (the "Effective Date") by and between the Fred
Hutchinson Cancer Research Center, a Washington non-profit corporation (the
"FHCRC"), and Rosetta Inpharmatics, Inc., a Delaware corporation (the
"LICENSEE").

                                    RECITALS

          A. FHCRC is the owner by assignment from Stephen H. Friend and Leland
Hartwell (the "Inventors") of the PATENT RIGHTS as defined in this Agreement
together with certain confidential information relating thereto;

          B. FHCRC is committed to a policy that ideas or creative works
produced at FHCRC should be used for the greatest possible public benefit and
believes that every reasonable incentive should be provided for the prompt
introduction of such ideas into public use, all in a manner consistent with the
public interest;

          C. LICENSEE desires to obtain an exclusive worldwide license in order
to practice the above referenced invention covered by the PATENT RIGHTS in the
United States and in certain foreign countries, and to manufacture, use and sell
in the commercial market the products made in accordance therewith; and

          D. FHCRC is willing to grant such a license to LICENSEE subject to the
terms and conditions of this Agreement.

                              TERMS AND CONDITIONS

          The parties agree as follows:

                             ARTICLE 1- DEFINITIONS

         1.1 PATENT RIGHTS means rights of FHCRC in, to and under the issued
United States patents and patent applications listed in APPENDIX A, the
inventions described therein, as well as all continuations and divisions
thereof, all continuations-in-part to the extent one or more of their claims are
directed to the subject matter of the patent applications listed in APPENDIX A
as of the Effective Date hereof, reissues, reexaminations, extensions and
foreign counterparts thereof, which will automatically be deemed incorporated in
and added to this Agreement and shall periodically be added to APPENDIX A.

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

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         1.2 LICENSED PROCESSES means any process described and claimed in
PATENT RIGHTS.

         1.3 LICENSED PRODUCT means a product described and claimed in the
PATENT RIGHTS or a product that is manufactured or covered by one or more
LICENSED PROCESSES.

         1.4 AFFILIATE means any company, corporation, or business in which
LICENSEE owns or controls at least a fifty percent (50%) ownership interest (or
such lesser percentage which is the maximum allowed to be owned by a foreign
corporation in a particular jurisdiction) or which directly or indirectly owns
or controls more than a fifty percent (50%) ownership interest in LICENSEE.

         1.5 TECHNICAL INFORMATION means inventions (whether or not patentable),
processes, materials, formulas and know-how directly related to the subject
matter of the PATENT RIGHTS that are developed by the Inventors and owned or
controlled by FHCRC as of the date of this Agreement or hereafter. All TECHNICAL
INFORMATION shall be communicated to LICENSEE in writing.

         1.6 TECHNOLOGY means any and all (a) PATENT RIGHTS and (b) TECHNICAL
INFORMATION supplied by FHCRC to LICENSEE.

         1.7 IMPROVEMENT means any invention, discovery or know-how (whether
or not patentable) which (a) is an improvement or modification of the
TECHNOLOGY or otherwise directly relates to the subject matter of the PATENT
RIGHTS; (b) is not licensed as of the Effective Date; (c) is made within
five (5) years from the Effective Date hereof; (d) is conceived or reduced to
practice by one or more of the Inventors; and (e) is owned by FHCRC or LICENSEE
with the right to license it.

                                ARTICLE 2- GRANT

         2.1 EXCLUSIVE LICENSE. FHCRC hereby grants to LICENSEE and LICENSEE
accepts, subject to the terms and conditions hereof, the exclusive worldwide
license, under the PATENT RIGHTS, to make, have made, use, sell, import, offer
for sale and have sold the LICENSED PRODUCTS, to practice the TECHNOLOGY and to
practice the LICENSED PROCESSES, for all uses in all fields, for the Term
permitted in Section 3.1 of this Agreement (the "License"). The License includes
the right to grant sublicenses, subject to the provisions of Section 2.2(f)
below.

         2.2 RESTRICTIONS ON LICENSE. Notwithstanding any other provision of
this Agreement, the License is subject to the following policies, obligations
and/or conditions:

                  (a) FHCRC's Patents and Inventions Policy adopted September
30, 1983,

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -2-

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Public Laws 96-517 and 98-620 and FHCRC's obligations under agreement
with other sponsors of research. Any right granted in this Agreement greater
than that permitted under Public Laws 96-517 or 9 8-620 shall be subject to
modification as may be required to conform to the provisions of the statutes.

                  (b) LICENSEE agrees during the period of exclusivity of the
License that any LICENSED PRODUCT produced for sale in the United States will be
manufactured substantially in the United States.

                  (c) For research purposes only and not for any commercial
purpose, FHCRC has the right to make and to use, but not to sublicense the
TECHNOLOGY without LICENSEE'S written consent (which consent will not be
unreasonably withheld if the sublicense is to an academic or research
institution, is for research purposes only and such institution agrees to be
bound by the restrictions of this Section 2.2(c)). FHCRC agrees that it will not
use the TECHNOLOGY in research subject to licensing or consulting obligations to
a third party (except for the federal government), without the written consent
of LICENSEE.

                  (d) LICENSEE shall use reasonable effort to introduce the
LICENSED PRODUCTS into the commercial market as soon as practicable, consistent
with sound and reasonable business practices and judgment, and thereafter
endeavor to keep LICENSED PRODUCTS reasonably available to the public.

                  (e) FHCRC shall have the right to render this Agreement
non-exclusive at any time after five (5) years of the Effective Date upon
sixty (60) days prior written notice to LICENSEE if, in FHCRC's reasonable
judgment, LICENSEE has not put a LICENSED PRODUCT into commercial use
directly or through a sublicense and is not keeping the LICENSED PRODUCT
reasonably available to the public, or is not demonstrably engaged in
research, development, manufacturing, marketing or licensing, as appropriate,
directed toward these ends. In making this determination FHCRC shall take
into account the normal course of such programs conducted with sound and
reasonable business practices and judgment, then-prevailing market
conditions, the existence of new or more competitive technologies, and shall
take into account the reports provided hereunder by LICENSEE. FHCRC's
determination to render this Agreement non-exclusive will become effective at
the end of the sixty (60) day notice period unless LICENSEE shall have
demonstrated fulfillment of its obligation under this Section 2.2(e).

                  (f) LICENSEE may grant sublicenses for any rights granted
under the License. All sublicenses granted by LICENSEE hereunder shall include a
requirement that the sublicensee use reasonable efforts to bring the subject
matter of the sublicense into commercial use consistent with Section 2.2(e) and
shall expressly bind the sublicensee to meet LICENSEE's obligations to FHCRC
under this Agreement relating to sublicenses, including, but not limited to,
obligations under Section 2.2(e). Copies of all executed sublicense agreements
pertaining to any rights granted under the License shall promptly be provided to
FHCRC. FHCRC agrees to maintain each such sublicense agreement and all
information relating thereto in confidence.

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -3-

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          2.3 IMPROVEMENTS. FHCRC and LICENSEE agree to promptly disclose to
each other all IMPROVEMENTS to the TECHNOLOGY in a writing, in sufficient
detail for LICENSEE and FHCRC to evaluate each such IMPROVEMENT. FHCRC grants
to LICENSEE the option to an exclusive license in each such IMPROVEMENT owned
by FHCRC for a period of six (6) months from the date of disclosure to
LICENSEE. LICENSEE shall have the right to exercise the option to an
exclusive license to such IMPROVEMENT at any time during the six (6) months
option period by notifying FHCRC in writing. Upon exercise of the option in
writing, the IMPROVEMENT will be included in the TECHNOLOGY and licensed in
the License without additional charge to LICENSEE. If the option is not
exercised by LICENSEE, FHCRC shall be free to license such IMPROVEMENT to a
third party or parties without any obligation to LICENSEE. LICENSEE hereby
grants to FHCRC a nonexclusive, irrevocable, royalty-free license for
research purposes to its interests in any IMPROVEMENT; provided that such
IMPROVEMENT will be deemed to be TECHNOLOGY under this Agreement and subject
to the restrictions set forth in Section 2.2(c). Notwithstanding the
foregoing, to the extent FHCRC develops any improvement to the TECHNOLOGY
based on Proprietary Information owned by LICENSEE that would be an
IMPROVEMENT but for the fact that it was conceived or reduced to practice by
someone other than one or more of the Inventors, FHRCR shall first offer such
improvement to LICENSEE. For a period of ninety (90) calendar days following
notice to LICENSEE by FHCRC of such improvement, FHCRC and LICENSEE shall in
good faith endeavor to negotiate an agreement with respect to LICENSEE's
rights to such improvement. In the event FHCRC and LICENSEE fail to enter
into such agreement within such ninety (90) day period, FHCRC shall, for a
period of one year thereafter, have the right to enter into an agreement
regarding such improvement with a third party provided that the terms and
conditions offered to such third party shall not be more favorable than the
terms and conditions last specified by FHCRC to LICENSEE in a written
proposal unless first offered to LICENSEE. Thereafter, FHCRC shall be free to
enter into an agreement regarding such improvement with a third party without
further restriction under this Section 2.3.

                          ARTICLE 3- TERM OF AGREEMENT

          The term of this Agreement commences on the Effective Date and,
subject to earlier termination as provided in Article 2.2(e), ends on the later
of(a) the expiration date of the last to expire of the PATENT RIGHTS and (b)
twenty (20) years from the Effective Date (the "Term") unless otherwise provided
in this Agreement.

                         ARTICLE 4- EQUITY AND PAYMENTS

          4.1 EQUITY. As partial consideration for the License, LICENSEE agrees
to issue to FHCRC shares of LICENSEE's Common Stock equal to four percent (4%)
of fully-diluted capital stock of LICENSEE immediately following the closing of
LICENSEE's Series A Preferred Stock financing. The Common Stock issued to FHCRC
shall be subject to the terms and conditions set forth in the Stock Purchase
Agreement attached hereto as APPENDIX B.

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -4-

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          4.2 PAYMENTS. On June 30 of each year, commencing on June 30
following the date on which the first patent covered under the Patent Rights
is issued in the United States (the "United States Patent Issue Date") and
continuing thereafter until the earlier of (a) termination of this Agreement
or (b) the date on which the Company grants a sublicense to the Technology to
a non-Affiliate in a transaction where the aggregate value of the license
fees, research funding and similar compensation to LICENSEE is greater than
[***], LICENSEE shall make an annual payment of $50,000 (the "ANNUAL PAYMENT").

                              ARTICLE 5 - REPORTING

          5.1 RESEARCH AND DEVELOPMENT PLAN. Within sixty (60) days following
execution of this Agreement, LICENSEE shall provide to FHCRC a written research
and development plan and business plan for introducing LICENSED PRODUCTS into
commercial use.

          5.2 ANNUAL REPORTS. LICENSEE shall provide written reports within
sixty (60) days after December 31 of each calendar year which shall include the
following information: reports of progress on research and development,
regulatory approvals, manufacturing, sublicensing, marketing and sales during
the preceding twelve (12) months as well as plans for the coming year. If
LICENSEE's progress differs from that anticipated in the plan provided to FHCRC
under Section 5.1, LICENSEE shall explain the reasons for the difference and
propose modified plans for FHCRC's review and comments, which comments shall be
given serious consideration by LICENSEE. LICENSEE shall also provide any
reasonable additional data FHCRC requires to evaluate LICENSEE's performance.

          5.3 FINANCIAL REPORTS. LICENSEE shall provide to FHCRC quarterly
fmancial statements for the immediately preceding quarter within thirty (30)
days after the end of each quarter.

          5.4. CONFIDENTIALITY OF REPORTS. All such reports shall be maintained
in confidence by FHCRC, except as required by law, including Public Laws 96-517
and 98-620.

                    ARTICLE 6- DOMESTIC AND FOREIGN PATENT FILING
                                             AND MAINTENANCE

          6.1 RESPONSIBILITY. Throughout the term of this Agreement, LICENSEE,
at its own expense, shall have the right, but shall not be obligated, to
prepare, file, prosecute and defend against third party oppositions any and all
United States and foreign patent applications, and to maintain any and all
United States and foreign patents included within the PATENT RIGHTS; PROVIDED,
HOWEVER, that LICENSEE shall first consult with FHCRC as to the preparation,
filing, prosecution and defense of such applications and maintenance of such
patents and shall promptly furnish to FHCRC copies of all documents relevant to
such preparation, filing, prosecution, defense, or maintenance and shall keep
FHCRC fully advised of the same. FHCRC shall have the right to review and make
recommendations with respect to all such patent applications and patents and
proceedings relating thereto. In the event of a dispute between LICENSEE and

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -5-

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FHCRC as to such preparation, filing, prosecution, defense, or maintenance,
FHCRC's decision shall be controlling on such subject. In the event that
LICENSEE elects not to file, prosecute, or defend such applications or maintain
such patents, LICENSEE shall so notify FHCRC in writing not less than sixty (60)
days prior to such action, in which event FHCRC shall have the right to conduct
such filing, prosecution, defense, or maintenance. Notwithstanding any of the
foregoing, FHCRC shall have the right, on any reasonable basis, and upon written
notice to LICENSEE, to take over and assume responsibility for the preparation,
filing, prosecution and defense of any and all United States and foreign patent
applications included within PATENT RIGHTS and maintenance of any and all United
States and foreign patents included within PATENT RIGHTS. In the event that
FHCRC conducts such filing, prosecution, defense, or maintenance as provided
herein, FHCRC shall first consult with LICENSEE as to such preparation, filing,
prosecution, defense, or maintenance and shall keep LICENSEE fully advised of
the same; in such case, LICENSEE shall have the right to review and make
recommendations with respect to all such patent applications and patents and
proceedings relating thereto.

          6.2 REIMBURSEMENT. LICENSEE shall reimburse FHCRC for all reasonable
and documented expenses FHCRC has incurred for the preparation, filing,
prosecution and maintenance of PATENT RIGHTS, including any interference
proceedings, and shall reimburse FHCRC for all such expenses incurred in
connection with the PATENT RIGHTS.

          6.3 NOTICE. Each party shall provide to the other prompt notice as to
all matters which come to its attention and which may affect the preparation,
filing, prosecution, defense or maintenance of any such patent applications or
patents. FHCRC and LICENSEE shall cooperate fully and in good faith in the
preparation, filing, prosecution, defense and maintenance of PATENT RIGHTS and
of all patents and patent applications licensed to LICENSEE hereunder, including
the execution of all papers and instruments so as to enable FHCRC to apply for,
to prosecute and to maintain patent applications and patents in FHCRC's name in
any country.

          6.4 NON-PAYMENT. If LICENSEE elects not to pay the expenses of a
patent application or patent included within PATENT RIGHTS, LICENSEE shall
notify FHCRC not less than sixty (60) days prior to such action and shall
thereby surrender its rights under Section 2.1 of this Agreement with respect to
such patent or patent application.

                             ARTICLE 7- ENFORCEMENT

          7.1 NOTICE OF INFRINGEMENT. Each party agrees to notify the other
promptly of any infringement of the PATENT RIGHTS of which such party becomes
aware.

          7.2 ACTION BY LICENSEE. During the Term, subject to FHCRC prior
written consent (not to be unreasonably withheld), LICENSEE has the right to
prosecute any infringements of the PATENT RIGHTS, at its sole expense, and FHCRC
hereby agrees that LICENSEE may include FHCRC as a party plaintiff in any such
suit, without expense of FHCRC. The total cost

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -6-

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of any such action commenced or defended solely by LICENSEE shall be borne by
LICENSEE and LICENSEE shall keep any recovery or damages for infringement
derived from the action. Before LICENSEE commences any such infringement action,
LICENSEE shall give careful consideration to the views of FHCRC and to potential
effects on the public interest in making its decision whether or not to commence
such an action. FHCRC agrees to cooperate reasonably in any such action
initiated by LICENSEE including supplying essential documentary evidence and
making essential witnesses then in FHCRC's employment available at LICENSEE's
expense.

          7.3 ACTION BY FHCRC. If LICENSEE fails to initiate an infringement
action within ninety (90) days after notification or knowledge of the basis for
such action and LICENSEE is not already a party in an infringement action
including any patent included within PATENT RIGHTS, or if FHCRC reasonably
withholds its consent pursuant to Section 7.2, FHCRC shall have the right, and
in the case of reasonably withholding its consent pursuant to Section 7.2 shall
be obligated, to prosecute at its own expense all infringements of the PATENT
RIGHTS, and LICENSEE hereby agrees that FHCRC may include LICENSEE as a party
plaintiff in any such suit, without expense to LICENSEE. The total cost of any
such action commenced or defended solely by FHCRC shall be borne by FHCRC and
FHCRC shall keep any recovery or damages for past infringement derived from the
action.

                    ARTICLE 8- INDEMNIFICATION AND INSURANCE

         8.1 INDEMNIFICATION. LICENSEE assumes responsibility for and shall
defend, indemnify and hold FHCRC, its directors, officers, managers, agents,
students, doctors and employees (the "Indemnified Parties") harmless from any
and all liability, losses, expenses, damages, assessments and claims arising out
of or resulting from (a) the use, sale or any disposition of LICENSED PRODUCTS
by LICENSEE or its AFFILIATES, (b) the practice of the LICENSED PROCESSES by
LICENSEE or its AFFILIATES, or (c) the use, sale or other disposition of the
LICENSED PRODUCT or LICENSED PROCESSES by others who receive LICENSED PRODUCTS
or LICENSED PROCESSES directly or indirectly from LICENSEE, its AFFILIATES,
agents or representatives. Notwithstanding the foregoing, LICENSEE shall have no
obligation to indemnify and hold harmless the Indemnified Parties (i) if the
claim is found to be based upon the gross negligence or willful misconduct of
any of the Indemnified Parties, or (ii) if the Indemnified Parties fail to give
LICENSEE prompt notice of any claim it receives and such failure materially
prejudices LICENSEE, or (iii) solely to the extent of indemnification for legal
fees and disbursements of counsel of the Indemnified Parties, unless LICENSEE is
given the opportunity to control the defense of such action, or (iv) unless
LICENSEE is given the opportunity to approve any settlement; and provided
further that, except in the event of a material conflict of interest, LICENSEE
will not be liable for attorney's fees of the Indemnified Parties after assuming
control of the defense or settlement.

         8.2 INSURANCE. Upon the earlier of any: (a) testing or use in human
subjects or (b) sale of a LICENSED PRODUCT, LICENSEE will have FHCRC named as an
additional insured on LICENSEE's product liability insurance policies, with
limits consistent with sound business practice. Such policies shall not be
terminated without thirty (30) days prior written notice to

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -7-

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FHCRC. LICENSEE shall provide FHCRC with written evidence of the insurance
and a copy of the policy upon request.

         8.3 LEGAL ACTION. In the event any legal action is commenced against
LICENSEE involving the TECHNOLOGY, whether or not FHCRC is named as a ~5arty to
the legal action, LICENSEE shall keep FHCRC or its attorney nominee fully
advised of the progress of the legal action and shall reimburse FHCRC for its
reasonable legal costs (including attorney's fees) incurred as a result of
FHCRC's monitoring of such action, FHCRC's being named a party to any such legal
action, or when FHCRC's employees or agents are called as witnesses therein or
asked to testify for or consult with LICENSEE in connection therewith. FHCRC
agrees to cooperate with LICENSEE, to the extent reasonably possible, in any
legal action brought pursuant to this Section 8.3.

                             ARTICLE 9- ARBITRATION

          Any dispute, other than a question relating to patent validity or
infringement, between the parties hereunder which cannot be resolved by good
faith negotiation between the parties over a period of at least sixty (60) days
shall be resolved by arbitration before a panel of three arbitrators under the
then current rules and procedures of the American Arbitration Association (the
"AAA"), or other rules and procedures as the parties may agree. Each party shall
bear its own costs incurred in connection with such arbitration and the fees,
expenses and costs of the AAA, the arbitrator(s) and the arbitration proceeding
not incurred solely by one party shall be divided equally between the parties.
The arbitral award shall be binding and conclusive on both parties and may be
enforced in any court of competent jurisdiction.

                      ARTICLE 10- TERMINATION OF AGREEMENT

          10.1 TERMINATION ON PAYMENT DEFAULT. At FHCRC's option, FHCRC may
terminate this Agreement effective thirty (30) days after giving written notice
in the event LICENSEE fails to pay any Annual Payment or other amounts owed
under this Agreement when due, unless the payment default is cured or shown to
be non-existent within such thirty (30) day period, in which case the Agreement
will remain in effect.

          10.2 TERMINATION ON OTHER DEFAULTS. This Agreement may be
terminated by either party upon a material breach by the other party other
than a payment default which is governed by Section 10.1, effective
ninety (90) days after giving written notice to the breaching party of such
termination under this Section 10.2 and specifying such breach, unless the
default is cured or shown to be non-existent within the ninety (90) days
period, in which case the Agreement will remain in effect.

          10.3 TERMINATION ON BANKRUPTCY OR INSOLVENCY. Subject to any
provisions of the federal bankruptcy laws limiting rights of termination, this
Agreement will automatically terminate if LICENSEE files for protection under
federal bankruptcy laws, becomes insolvent,

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -8-

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makes an assignment for the benefit of creditors, appoints or suffers
appointment of a receiver or trustee over its property, files a petition under
any bankruptcy or insolvency act or has any such petition filed against it or
files for dissolution.

          10.4 TERMINATION BY LICENSEE. LICENSEE shall have the right to
terminate this Agreement at any time upon thirty (30) days prior written notice
to FHCRC.

          10.5 EFFECT OF TERMINATION ON SUBLICENSES. Any sublicenses granted by
LICENSEE under this Agreement shall provide for termination or assignment to
FHCRC, at the option of FHCRC, of LICENSEE's interest therein upon termination
of this Agreement.

          10.6 SALE OF PRODUCTS ON TERMINATION. In the event that FHCRC
terminates this Agreement as permitted herein, LICENSEE shall have the right
for three (3) months to sell all LICENSED PRODUCTS on hand at the time of
receipt of notice of termination if any and all payments due FHCRC are paid
when due in accordance with this Agreement.

          10.7 EFFECT OF TERMINATION. Upon termination of the Agreement for any
reason, and subject to LICENSEE's rights under Section 10.6, each party shall
return to the other party all TECHNOLOGY owned by such other party and
thereafter continue to maintain the confidentiality thereof, and refrain from
use thereof or the disclosure thereof to any third party as required by Article
13, and all other rights in TECHNOLOGY and LICENSED PRODUCTS granted under
Article 2 shall expire and revert to the owner thereof. Upon termination of this
Agreement, each party will turn over to the other party all Proprietary
Information owned by such other party and all documents or data storage media
containing any such Proprietary Information owned by such other party and any
and all copies thereof, and each party will delete all Proprietary Information
owned by such other party from its documents or data storage media. Should
either party terminate this Agreement as permitted herein, the other party shall
not be able to claim from the terminating party, any damages or compensation for
losses or expenses incurred solely as a result of the termination. FHCRC shall
be entitled to retain all equity issued and payments made under this Agreement,
notwithstanding termination of this Agreement for any reason.

          10.8 SURVIVAL OF RIGHTS AND DUTIES. Rights and duties hereunder which
by their terms or nature survive the termination or expiration of this Agreement
shall so survive such termination or expiration, including without limitation
duties under Sections 5.3, 7, 8, 9, 10.6, 10.7, 12, 13, 16.1, 16.7, 16.8, 16.9
and 16.10.

                    ARTICLE 11- REPRESENTATIONS AND COVENANTS

          11.1 FHCRC REPRESENTATIONS AND WARRANTIES. FHCRC represents and
warrants that all right, title, and interest in the patent applications or
patents comprising the PATENT RIGHTS listed in APPENDIX A have been or will be
assigned to it and are owned by it (subject to Government Rights under 35 U.S.C.
Section 200 et seq.), that FHCRC has the authority to issue licenses under the
PATENT RIGHTS, that all corporate action of FHCRC required to authorize

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -9-

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and perform this Agreement and the transactions contemplated hereby has been
taken; that this Agreement has been duly executed and delivered by FHCRC and is
a legal, valid and binding obligation of FHCRC and that FHCRC is duly organized
and validly existing under the laws of the State of Washington.

          11.2 FHCRC DISCLAIMERS. FHCRC disclaims all implied or express
warranties of any nature whatsoever concerning the validity or scope of the
PATENT RIGHTS licensed hereunder. FHCRC does not warrant that such PATENT RIGHTS
may be exploited by LICENSEE, an AFFILIATE, or sublicensee without infringing
other patents. FHCRC EXPRESSLY DISCLAIMS ANY AND ALL EXPRESS WARRANTIES, EXCEPT
THOSE STATED IN THIS ARTICLE 11, AND FURTHER DISCLAIMS ANY AND ALL IMPLIED
WARRANTIES OF MERCHANTABILITY OR FITNESS OF THE TECHNOLOGY, LICENSED PROCESSES
OR LICENSED PRODUCTS FOR ANY PARTICULAR USE OR PURPOSE.

          11.3 LICENSEE REPRESENTATIONS AND WARRANTIES. LICENSEE represents and
warrants to FHCRC that all corporate action of LICENSEE required to authorize
and perform this Agreement and the transactions contemplated hereby has been
taken; that this Agreement has been duly executed and delivered by LICENSEE and
is a legal, valid and binding obligation of LICENSEE; that the execution,
delivery and performance of this Agreement will not, with OR without the giving
of notice or the lapse of time or both violate any judgment, order, writ, or
decree of any court applicable to LICENSEE or result in the breach of or
conflict with or constitute a default under any corporate charter, bylaw,
commitment, contract or other agreement or instrument to which LICENSEE is a
party; that LICENSEE is duly organized and validly existing under the laws of
the State of Delaware and that it has obtained and will at all times during the
Term hold and comply with all licenses, permits and authorizations necessary to
LICENSEE's complete and timely performance of its obligations under this
Agreement which are required under any applicable statutes, laws, ordinances,
rules and regulations of the United States as well as those of all applicable
foreign governmental bodies, agencies and subdivisions, having, asserting or
claiming jurisdiction over LICENSEE or LICENSEE's performance of the terms of
this Agreement. In particular, LICENSEE:

                  (a) will be responsible for obtaining all necessary United
States Food and Drug Administration approvals and all approvals required by
similar governmental bodies or agencies of all applicable foreign countries; and

                  (b) understands and acknowledges that the transfer of certain
commodities and technical data is subject to United States laws and regulations
controlling the export of such commodities and technical data, including all
Export Administration Regulations of the United States Department of Commerce.
These laws and regulations, among other things, prohibit or require a license
for the export of certain types of technical data to certain specified
countries. LICENSEE hereby agrees and gives written assurance that it will
comply with all United States laws and regulations controlling the export of
commodities and technical data, that it will be solely responsible for any
violation of such by LICENSEE or its AFFILIATES or sublicensees,

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -10-

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and that it will defend and hold FHCRC harmless in the event of any legal action
of any nature occasioned by such violation.

                               ARTICLE 12- NOTICES

          All communications, including payments, notices, demands or requests
required OR permitted to be given hereunder, shall be given in writing and shall
be: (a) personally delivered; (b) sent by facsimile or other electronic means of
transmitting written documents; or (c) sent to the parties at their respective
addresses indicated herein by registered or certified U.S. mail, return receipt
requested and postage prepaid, or by private overnight mail courier service. The
respective addresses to be used for all such payments, notices, demands or
requests are as follows:

       If to FHCRC:      Fred Hutchinson Cancer Research Center
                         1100 Fairview Avenue North, C2M-027
                         Seattle, Washington 98109
                         Attention:  Catherine J. Hennings, Director,
                         Technology Transfer
                         Facsimile:   (206) 667-4732

       With copies to:   Douglas J. Shaeffer, Esq.
                         Fred Hutchinson Cancer Research Center
                         1100 Fairview Avenue North, LM-254
                         Seattle, Washington 98109
                         Facsimile: (206) 667-6590

       If to LICENSEE:   Rosetta Inpharmatics, Inc.
                         12040 - 115th Avenue N.E., Suite 210
                         Kirkland, WA 98034
                         Attention: President
                         Facsimile: (425) 821-5354

       With copies to:   Venture Law Group
                         4750 Carillon Point
                         Kirkland, WA 98033
                         Attention:   William W. Ericson
                         File No. 15822.012
                         Facsimile:  (425) 739-8750

If personally delivered, such communication shall be deemed delivered upon
actual receipt. If electronically transmitted pursuant to this Article 12, such
communication shall be deemed delivered when transmitted. If sent by overnight
courier pursuant to this Article 12, such communication shall be deemed
delivered within twenty-four (24) hours of deposit with such courier. If sent by
U.S. mail pursuant to this Article 12, such communications shall be deemed
delivered as of the date of delivery indicated on the receipt issued by the
relevant postal service,

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -11-

<PAGE>

or, if the addressee fails or refuses to accept delivery, as of the date of such
failure or refusal. Any party to this Agreement may change their address for the
purposes of this Agreement by giving notice in accordance with this Article.

                 ARTICLE 13- CONFIDENTIALITY AND NON-DISCLOSURE

         13.1 PROPRIETARY INFORMATION. Any and all information in any form
relating to the TECHNOLOGY furnished to either party (or its agents or
employees) by the other party (or its laboratories or agents or employees),
including but not limited to information regarding or relating to devices,
biological materials, methods, processes, data, drawings, documentation, patent
applications, know how and product development plans, is confidential,
proprietary, information and any and all such information is hereinafter
referred to as "Proprietary Information."

         13.2 EXCEPTIONS TO PROPRIETARY INFORMATION. As used herein,
"Proprietary Information" does not include information:.

                  (a) that at the time of disclosure to the receiving party is
  or later becomes generally available to the public through no fault of the
  receiving party;

                  (b) that is demonstrated to have been in the receiving party's
  possession prior to the time of disclosure by the disclosing party;

                  (c) that is demonstrated by a preponderance of the evidence to
  have been independently developed by the receiving party's personnel without
  reference to Proprietary Information of the disclosing party; and

                  (d) received from a third party, unless such information is
  obtained subject to a confidential disclosure agreement.

          13.3 USE OF PROPRIETARY INFORMATION. Each party agrees: (a) to hold in
strict confidence and trust and maintain as confidential all Proprietary
Information disclosed by the other party; (b) not to disclose any such
Proprietary Information or any information derived therefrom to any person,
except to those employees or legal counsel of the receiving party who are
required to receive the Proprietary Information for the purposes described in
this Agreement and who are bound by the provisions of this Agreement; and (c) to
use the Proprietary Information only for the purposes described in this
Agreement.

          13.4 OWNERSHIP OF PROPRIETARY INFORMATION. Each party agrees that all
Proprietary Information disclosed by the other party will at all times be and
remain the sole property of the disclosing party and the disclosing party is the
sole owner of all patents, copyrights and other intellectual property rights and
other proprietary rights related to the Proprietary Information disclosed by it
and conceived or made by the disclosing party's employees.

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -12-

<PAGE>>

          13.5 TERM OF CONFIDENTIALITY. The obligations of confidentiality
provided herein shall continue in force and effect for five (5) years from the
date of termination of this Agreement, whether by lapse of the Term hereof or
otherwise, unless extended or limited by mutual agreement executed in writing
by an officer of each party; PROVIDED, HOWEVER, that if this Agreement is
terminated before the end of the Term due to a default by LICENSEE, the
obligation of confidentiality shall continue for five (5) years from the end
of the Term assuming no early termination.

                           ARTICLE 14- PATENT MARKING

          Subsequent to the issuance of any patent included in the PATENT RIGHTS
and provided FHCRC advises LICENSEE of the patent number or numbers of any such
issued patents, LICENSEE agrees to mark and to have marked by its sublicensees
every LICENSED PRODUCT manufactured, used or sold in the United States by
LICENSEE, its AFFILIATES or its sublicensees in accordance with the statutes of
the United States relating to the marking of patented articles. All LICENSED
PRODUCTS shipped to or sold in other countries shall be marked in such a manner
as to conform with the patent laws and practice of the countries of manufacture
or sale.

                          ARTICLE 15- RIGHT TO PUBLISH

          Nothing in this Agreement shall be construed as prohibiting either
party from presenting or publishing any of the results of their own research
on the TECHNOLOGY, including without limitation research results which
constitute Proprietary Information; PROVIDED, HOWEVER, that each party agrees
to provide the other party with a copy of any such presentation or
publication at least thirty (30) days prior to submission or presentation and
further agrees to delay publication for a period not to exceed sixty (60) days,
which is sufficient to allow the other party to take steps necessary to protect
any intellectual property, including the filing of any patent applications
and/or deletion of its confidential information.

                            ARTICLE 16- MISCELLANEOUS

          16.1 APPLICABLE LAW. The rights and obligations of the parties under
this Agreement shall be governed by and construed in accordance with the laws of
the State of Washington.

          16.2    NO MODIFICATION. This Agreement may not be amended except by
an instrument in writing signed by both parties.

          16.3 ASSIGNMENT. The Agreement shall be binding on the parties hereto
and upon their respective heirs, administrators, successors and assigns. This
Agreement may not be assigned by LICENSEE or by operation of law without the
prior written consent of FHCRC, which consent shall not be unreasonably
withheld; provided, that LICENSEE may assign this Agreement without FHCRC's
consent to any entity that acquires all or substantially all of its assets or
business relating to LICENSED PRODUCTS and LICENSED PROCESSES, by merger or

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -13-

<PAGE>

otherwise.

          16.4 NON-PROFIT STATUS. LICENSEE acknowledges that FFICRC is a
non-profit organization qualifying for and holding the status of an exempt
organization under Section 50l(c)(3) of the United States Internal Revenue Code
("SECTION 501(c)(3) STATUS"). If the Internal Revenue Service (the "IRS")
determines, or a determination by FHCRC based on advice of legal or tax counsel
is reasonably made, that any part or all of this Agreement will jeopardize
FHCRC's Section 501(c)(3) Status, the parties agree to meet and confer in good
faith to amend this Agreement to the extent necessary to satisfy IRS
requirements for retention of FHCRC's Section 501(c)(3) Status. If FHCRC and
LICENSEE cannot agree within thirty (30) days after commencing negotiations
regarding the amendments to be made to this Agreement in order for FHCRC to
retain its Section 501(c)(3) Status, FHCRC may terminate this Agreement
effective upon giving written notice to LICENSEE of termination under this
Section 16.4.

          16.5 CONFLICTS WITH GRANTS. LICENSEE understands and acknowledges that
agreements between FHCRC and agencies of the United States government funding
FHCRC's programs may contain clauses granting patent and/or other rights to the
agencies or the U.S. government. LICENSEE agrees that the rights granted to it
under this Agreement shall be subject to any rights of the agencies and the U.S.
government. If a conflict arises, the provisions of any U.S. government agency
funding agreement and/or regulation shall prevail over any conflicting
provisions of this Agreement and FHCRC will have no liability to LICENSEE as a
result of such conflict.

          16.6 BOARD OBSERVER. During the Term, FHCRC shall be entitled to have
one representative of FHCRC attend meetings of the Board of Directors of
LICENSEE, which representation shall be Leland Hartwell or such other
representative as FHCRC and LICENSEE shall mutually agree upon. LICENSEE agrees
to give FHCRC timely notice of Board of Directors meetings of LICENSEE.
Notwithstanding the foregoing, LICENSEE may exclude the FHCRC representative
from certain meetings or portions of certain meetings if LICENSEE reasonably
determines that attendance of the FHCRC representative would jeopardize
attorney-client privilege or proprietary rights of LICENSEE, violate
confidentiality requirements of a third party or otherwise be illegal or
improper.

          16.7 USE OF NAME. No party shall use the name of the other party or
reveal the terms of this Agreement in any publicity or advertising without the
prior written approval of the other party, except that (a) any party may use the
text of a written statement approved in advance by the other party without
further approval; (b) any party shall have the right to identify the other party
and to disclose the terms of this Agreement as required by applicable securities
laws or other applicable law or regulation; and (c) any party may disclose that
a licensing relationship exists between the parties and may disclose the name of
the other party in that context.

          16.8 NOTICES. All letters, documents, or other materials of a written
or physical nature, required by or relating to this Agreement shall be in
English and sent to the party at the address given in Article 12.

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -14-

<PAGE>

          16.9 INDEPENDENT PARTIES. The parties to this Agreement are
independent contractors and not agent of the other. This Agreement shall not
constitute a partnership or joint venture, and neither party may be bound by the
other to any contract, arrangement or understanding except as specifically
stated herein.

         16.10 SEVERABILITY. Should a court of competent jurisdiction later
  consider any provision of this Agreement to be invalid, illegal, or
  unenforceable, it shall be considered severed from this Agreement. All other
  provisions, rights and obligations shall continue without regard to the
  severed provision, provided that the remaining provisioni of this Agreement
  are in accord with the intention of the parties.

         16.11 PROCEEDINGS. In the event any party to this Agreement commences
  any action or proceeding, including an appeal of an action or proceeding,
  against the other, or otherwise retains an attorney, by reason of any breach
  or claimed breach of any provision of this Agreement, or to seek a judicial
  declaration of rights hereunder or judicial or equitable relief, the
  prevailing party in such action or proceeding shall be entitled to recover its
  reasonable attorneys' fees and costs. Venue of any such legal or equitable
  action shall lie in Seattle, Washington. Each of LICENSEE and FHCRC hereby
  submits to the jurisdiction of the Federal District Court of Western
  Washington located in Seattle, Washington, and hereby agrees to accept service
  of process by certified mail, return receipt requested, effective upon
  delivery to LICENSEE or FHCRC, as the case may be.

         16.12 COUNTERPARTS. This Agreement may be executed simultaneously in
  any number of counterparts, each of which shall be deemed an original, but all
  of which together shall constitute one and the same instrument.

                            [Signature page follows:

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -15-

<PAGE>

FRED HUTCHINSON CANCER RESEARCH CENTER         ROSETTA INPHARMATICS, INC.

By: /s/                                        By: /s/ John J. King, II
   -----------------------------------             ---------------------------

Printed                                        Printed
Name:                                          Name: John J. King, II
     ---------------------------------               -------------------------

Title:                                         Title: Sr. Vice President & Co.
      --------------------------------                ------------------------

Date:                                          Date: 1/12/97
     ---------------------------------               -------------------------

                 SIGNATURE PAGE TO EXCLUSIVE LICENSE AGREEMENT

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

<PAGE>

                                   Appendix A
                                   ----------

                         PATENT APPLICATIONS AND PATENTS

<TABLE>
<CAPTION>

                        Patent                                              File or
Patent NO.          Applicant No.                          Country        Issue Date    Title/Inventor
----------          -------------                          -------        ----------    --------------
<S>                 <C>                                    <C>            <C>           <C>

                    [***]                                   [***]            [***]      [***]

                    [***]                                   [***]            [***]      [***]

</TABLE>

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.<PAGE>

                                                                    CONFIDENTIAL

                                LICENSE AGREEMENT

                                     BETWEEN

                                XENOMETRIX, INC.

                                       AND

                            ROSETTA INPHARMATICS INC.

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

<PAGE>

                                LICENSE AGREEMENT

This Agreement (this "AGREEMENT") is made this 12th day of November, 1998 (the
"EFFECTIVE Date"), by and between Xenometrix, Inc. ("XENO"), a Delaware
corporation with principal offices at 2425 North 55th Street, Boulder, CO
80301-5700 and Rosetta Inpharmatics, Inc. ("ROSETTA"), a Delaware corporation
with principal offices at 12040 115th Avenue N.E., Kirkland, WA 98034, to
license certain technology according to the terms and conditions, but subject
to the limitations, set forth in this Agreement.

                                    RECITALS

WHEREAS, XENO is the owner or exclusive licensee of the XENO Patents (as defined
below) and the Harvard Patents (as defined below) relating to certain assays,
technology and intellectual property further described herein, and desires to
non-exclusively license the same to ROSETTA; and

WHEREAS, ROSETTA seeks to obtain certain non-exclusive license rights and
sublicensing rights under the XENO Patents and the Harvard Patents, according to
the terms contained herein;

Now, therefore, in consideration of the foregoing and the covenants and promises
contained herein, the parties agree as follows:

 1.  DEFINITIONS

     1.1. "AFFILIATE" means any corporation or other business entity controlled
          by, or in common control of an entity. Control, as used in the context
          of a business entity, means the ownership directly or indirectly of
          greater than fifty percent (5 0%) of the voting securities of the
          person, corporation, or other entity.

     1.2. "CONFIDENTIAL INFORMATION" means all information, compounds, data, and
          Materials received by either party from the other party pursuant to
          this Agreement including, without limitation, technology of each
          party, subject to the exceptions set forth in Section 5.1.

     1.3.  "FIELD" means gene expression profiling and protein expression
           profiling, including but not limited to, identifying disturbances of
           cell homeostasis and related identified chemicals.

     1.4.  "HARVARD LICENSE AGREEMENT" means the license agreement between the
           President and Fellows of Harvard College ("Harvard") and Venmark
           Ltd., now XENO, executed on January 17, 1992, as amended to date,
           attached hereto as Exhibit C.

     1.5. "HARVARD PATENTS" means all patents and patent, applications listed on
          Exhibit A (Mammalian) and Exhibit B (Bacterial) hereto, including but
          not limited to any reissues, extensions, substitutions, confirmations,
          re-registrations, re-examinations, continuations, divisionals or
          continuations-in-part of the foregoing patents and patent
          applications, as well as all foreign counterparts or equivalents
          thereof.

     1.6. "MATERIALS" means any biological or chemical entity for screening or
          assays, including reagents, cells, promoters, enhancers, vectors,
          plasmids, proteins and fragments thereof, peptides, antigens,
          antibodies, antagonists, agonists, inhibitors, and chemicals.

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

<PAGE>

     1.7. "XENO PATENTS" means all the patents and patent applications listed on
          Exhibits A and B hereto, any patent applications filed prior or
          subsequent to the Effective Date that claim the benefit of an early
          filing date to any of the patent applications listed in Exhibit A and
          Exhibit B, and any reissues, extensions, substitutions, confirmations,
          re-registrations, reexaminations, continuations, divisionals or
          continuations-in-part of the foregoing patents and patent
          applications, as well as all foreign counterparts or equivalents
          thereof.

     1.8. "THIRD PARTY" means any entity other than (i) ROSETTA and any of its
          Affiliates, and (ii) XENO and any of its Affiliates.

 2.  LICENSES

     2.1. GRANT OF LICENSES UNDER THE XENO PATENTS AND THE HARVARD PATENTS FROM
XENO TO ROSETTA.

          2.1.1.  NON-EXCLUSIVE LICENSE TO XENO PATENTS. XENO hereby grants to
                  ROSETTA and its Affiliates a non-exclusive, world-wide license
                  in the Field under XENO's ownership interest in the XENO
                  Patents to make, use, have made, sell, have sold, offer for
                  sale, import, export or otherwise exploit any process,
                  composition of matter or other invention claimed in the
                  XENO Patents, with right of sublicense to corporate
                  partners or collaborators of ROSETTA. Such license shall
                  include the right to grant sublicenses to make, use and
                  have made the XENO Patents solely in conjunction with
                  Rosetta's technology for each sublicensee's internal
                  research purposes and not for the purpose of
                  commercializing such technology.

          2.1.2.  NON-EXCLUSIVE SUBLICENSE TO HARVARD PATENTS UNDER THE HARVARD
                  LICENSE AGREEMENT. XENO hereby grants to ROSETTA and its
                  Affiliates a non-exclusive, world-wide sublicense in the Field
                  under XENO's right to sublicense the Harvard Patents in the
                  Harvard License Agreement to make, use, have made, sell,
                  have sold, offer for sale, import, export, further
                  sublicense or otherwise exploit any process, composition of
                  matter or other invention claimed in the Harvard Patents.
                  Such license shall include the right to grant sublicenses
                  to make, use and have made the Harvard Patents solely in
                  conjunction with Rosetta's technology for each
                  sublicensee's internal research purposes and not for
                  commercializing such technology.

 3.  COMPENSATION

     3.1. COMPENSATION FOR THE XENO PATENTS LICENSE AND HARVARD PATENTS
SUBLICENSE.

          3.1.1.  LICENSES AND RIGHTS. As consideration for the licenses and
                  rights granted to ROSETTA herein, ROSETTA will pay to XENO:

                           a)       Two Hundred Fifty Thousand Dollars
($250,000.00) upon signing of the Agreement, of which [***] to cure XENO's
existing default under the Harvard License Agreement (the "Default") and
provides documentation of such payment to ROSETTA's reasonable satisfaction,
(ii) obtains a certificate, in a form reasonably acceptable to counsel to
ROSETTA, executed by Harvard stating that XENO is no longer in default under
the Harvard License Agreement and it being acknowledged and understood that
the Holdback will be immediately due and payable upon XENO's satisfaction of
clauses (i) and (ii) of this section 3.1.1 and

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -3-

<PAGE>

                           b)       An annual running royalty of [***] per
annum, payable within thirty (30) days of end of each calendar year.

 4.  REPRESENTATIONS AND WARRANTIES; COVENANTS

     4.1. REPRESENTATIONS AND WARRANTIES OF ROSETTA AND XENO.

          Each party hereby represents and warrants:

                  CORPORATE POWER. Such party is duly organized and validly
                  existing and in good standing under the laws of the state
                  and/or country of its incorporation and has all requisite
                  corporate power and authority to enter into this Agreement and
                  to carry out the provisions hereof.

                  DUE AUTHORIZATION. Such party is duly authorized and has all
                  corporate power necessary to execute and deliver this
                  Agreement and to perform its obligations hereunder.

                  BINDING AGREEMENT. This Agreement is a legal and valid
                  obligation binding upon such party and enforceable in
                  accordance with its terms. The execution, delivery and
                  performance of this Agreement by such party does not conflict
                  with any agreement, instrument or understanding, oral or
                  written, to which it is a party or by which it may be bound,
                  nor violate any law or regulation of any court, governmental
                  body or administrative or other agency having jurisdiction
                  over it.

     4.2. TITLE; NO INFRINGEMENT. XENO has full title and ownership of the XENO
          Patents and XENO has all rights to the XENO Patents and the Harvard
          Patents necessary to allow it to perform its obligations as
          contemplated in thiso Agreement. The licenses and sublicenses granted
          by XENO to ROSETTA under this Agreement will in no way constitute an
          infringement or other violation of any copyright, trade secret,
          trademark, patent or other proprietary right of any third party.

     4.3. NEGATION OF WARRANTIES

                  EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, XENO MAKES NO
                  REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER
                  EXPRESSED OR IMPLIED. EXCEPT AS EXPRESSLY SET FORTH IN THIS
                  AGREEMENT, THERE ARE NO (a) EXPRESSED OR IMPLIED WARRANTIES OF
                  MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR TO
                  XENO'S KNOWLEDGE THAT THE USE OF THE XENO PATENTS AND HARVARD
                  PATENTS AS CONTEMPLATED IN THIS AGREEMENT WILL NOT INFRINGE
                  ANY PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHTS OR (b) ANY
                  OTHER EXPRESSED OR IMPLIED WARRANTIES.

     4.4. HARVARD LICENSE AGREEMENT. XENO hereby represents and warrants that
          (a) [***], the Harvard License Agreement has not at the date hereof
          expired or been terminated by either XENO or Harvard and that XENO
          has not at the date hereof received nor given notice of breach or
          termination for breach of the Harvard License Agreement [***]

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -4-

<PAGE>

          neither XENO nor Harvard is in default under the Harvard
          License Agreement. XENO covenants to use best efforts to maintain the
          Harvard License Agreement from the date of this Agreement through the
          term of the Harvard License Agreement, including, but not limited to
          (c) complying with its obligations to pay the compensation due for the
          Harvard License Agreement and (d) refraining from entering into any
          modification or termination of the Harvard License Agreement that
          would in anyway affect ROSETTA's rights to the Harvard Patents under
          this Agreement. In the event that the Harvard License Agreement is
          terminated, the sublicense granted to ROSETTA by XENO pursuant to
          Section 2.1.2 with respect to Patent No. 5,811,231, Methods and
          Kits in Mammalian Gene Profiling will survive and any further
          sublicenses granted by ROSETTA to its sublicensee with respect to
          Patent No. 5,811,231, Methods and Kits in Mammalian Gene Profiling
          shall survive.

     4.5. INFRINGEMENT. ROSETTA hereby agrees to notify XENO immediately of any
          claim it receives for alleged patent infringement through use of XENO
          Patents Licenses and Rights.

     4.6. LICENSE AGREEMENT TO A THIRD PARTY. XENO hereby warrants that during
          the term of this Agreement XENO will not license XENO patents and/or
          sublicense Harvard License Agreement to a Third Party under financial
          and legal conditions substantially more favorable than the terms of
          the present Agreement.

5.       CONFIDENTIALITY

     5.1. CONFIDENTIAL INFORMATION. Except as expressly provided herein, the
          parties agree that, for the Term and five (5) years thereafter, the
          receiving party shall keep completely confidential and shall not
          publish or otherwise disclose to another party and shall not use for
          any purpose other than to perform the purposes contemplated by this
          Agreement any Confidential Information furnished to it by the
          disclosing party hereto pursuant to this Agreement, except that to
          the extent that it can be established by the receiving party by
          competent proof that such Confidential Information:

                  (a) was already known to the receiving party, other than under
                  an obligation of confidentiality, at the time of disclosure;

                  (b) was generally available to the public or otherwise part of
                  the public domain at the time of its disclosure to the
                  receiving party;

                  (c) became generally available to the public or otherwise part
                  of the public domain after its disclosure and other than
                  through any act or omission of the receiving party in breach
                  of this Agreement;

                  (d) was lawfully disclosed to the receiving party by a person
                   other than a party hereto; or

                  (e) was independently developed by the receiving party.

     5.2. PERMITTED USE AND DISCLOSURES. Each party hereto may use or disclose
          Confidential Information disclosed to it by the other party to the
          extent such use or disclosure is reasonably necessary in filing or
          prosecuting patent applications, prosecuting or defending litigation,
          complying with applicable law, governmental regulation or court order,
          submitting information to tax or other governmental authorities,
          making a permitted sublicense or otherwise exercising its rights

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -5-

<PAGE>

          hereunder, provided that if a party is required to make any such
          disclosure of another party's Confidential Information, other than
          pursuant to a confidentiality agreement, it will give reasonable
          advance notice to the latter party of such disclosure and, save to the
          extent inappropriate in the case of patent applications, will use
          reasonable efforts to secure confidential treatment of such
          information prior to its disclosure (whether through protective orders
          or otherwise).

     5.3. CONFIDENTIAL TERMS. Except as expressly provided herein, each party
          agrees not to disclose any material or financial terms of this
          Agreement to another party without the consent of the other party, not
          to be unreasonably withheld; PROVIDED, HOWEVER, each party reserves
          the right to make reasonable disclosures (including the redaction of
          material or financial terms) as required by securities or other
          applicable laws, or to actual or prospective investors or corporate
          partners (including licensees and acquirers), or to accountants,
          attorneys and other professional advisors on a need-to-know basis
          under circumstances that ensure the confidentiality thereof, or to the
          extent required by law. If such Confidential Information is to become
          public information by such disclosure the disclosing party must obtain
          the written consent of the non-disclosing party in order to obtain
          protection of the Confidential Information if necessary.

     5.4. PRESS RELEASE. Notwithstanding the foregoing, the parties shall agree
          upon a press release to announce the execution of this Agreement.
          Thereafter, XENO and ROSETTA may each disclose to Third Parties the
          information contained in such press release without the need for
          further approval by the other.

 6.  TERMINATION

     6.1.1. This Agreement shall continue until the last expiration date of all
          patents licensed under this Agreement and shall survive the
          bankruptcy, insolvency or similar event related to either party.

     6.1.2. Either party shall have the right to terminate this Agreement at any
          time for a material breach of this Agreement by the other party,
          provided that the non-breaching party shall have first given ninety
          (90) days prior written notice (thirty (30) days in the event of
          non-payment of any amounts due under this Agreement) to the
          breaching party describing such breach and stating the
          non-breaching party's intention to terminate this Agreement if such
          breach remains uncured, and the breaching party thereafter fails to
          cure same within thirty (30) days.

     6.1.3. ROSETTA may terminate this Agreement without cause at any time by
          providing written notice to XENO of such termination and such
          termination will be effective ninety (90) days thereafter. Any
          termination pursuant to this Section 6.1.3 shall not relieve
          ROSETTA of any obligation or liability accrued hereunder prior to
          such termination, including ROSETTA's obligation to pay royalties
          accrued or accruable. The licenses granted hereunder and all
          sublicenses granted by ROSETTA under this agreement shall terminate
          in the event the Agreement is terminated by ROSETTA or termination
          by an arbitrator for an uncured breach by ROSETTA.

 7.  MISCELLANEOUS

     7.1. BINDING EFFECT; ASSIGNMENT. This Agreement shall be binding upon the
          parties' respective successors and permitted assigns. Neither party
          may assign this Agreement or any of its rights or

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -6-

<PAGE>

          obligations hereunder without the prior written consent of the other
          party (not to be unreasonably withheld), and any such attempted
          assignment shall be void; PROVIDED, HOWEVER, that ROSETTA and XENO may
          assign this Agreement as part of a merger or consolidation in which
          the surviving entity assumes all of ROSETTA's and XENO's rights and
          obligations hereunder or a sale of substantially all of the assets or
          stock of such party to which this Agreement relates. The parties
          acknowledge and agree that until the Section 8.4 Amendment is executed
          and delivered, in the event that the Harvard License Agreement is
          terminated, Harvard shall have the option of having this Agreement
          assigned to it or terminating the licenses granted herein.

     7.2. EFFECT OF WAIVER. No waiver of any default, condition, provisions or
          breach of this Agreement shall be deemed to imply or constitute a
          waiver of any other like default, condition, provision or breach of
          this Agreement.

     7.3. LIMITATION OF LIABILITY. NEITHER PARTY SHALL BE LIABLE TO THE OTHER
          FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, OR INDIRECT DAMAGES
          ARISING OUT OF THIS AGREEMENT, HOWEVER CAUSED, UNDER ANY THEORY OF
          LIABILITY.

     7.4. INDEMNIFICATION. ROSETTA will defend, indemnify and hold XENO, its
          officers, directors, employees, Affiliates and agents harmless against
          any and all liability, loss, damage, claim or expense (including
          attorneys' fees) arising out of (a) a breach of any representation or
          warranty or covenant made by ROSETTA in this Agreement or (b) a suit
          by a Third Party directly relating to the negligence of ROSETTA in the
          performance under this Agreement by ROSETTA; except to the extent such
          claim is caused by the negligence or willful misconduct of XENO or a
          breach of a representation or warranty of XENO. XENO will defend,
          indemnify and hold ROSETTA, its officers, directors, employees,
          Affiliates and agents harmless against any and all liability, loss,
          damage, claim or expense (including attorneys' fees) arising out of
          (x) a breach of any representation or warranty or covenant made by
          XENQ in this Agreement or (y) a suit against ROSETTA, its officers,
          directors, employees, Affiliates or agents by a Third Party related to
          ROSETTA's performance under this Agreement. ROSETTA may, at its
          option, conduct the defense in any such suit by a Third Party and XENO
          agrees to cooperate fully with such defense.

     7.5. LIABILITY INSURANCE. ROSETTA agrees that it shall indemnify, defend,
          and hold XENO harmless from any claim, demand or action by any Third
          Party arising out of ROSETTA's gross negligence or intentional
          misconduct relating to ROSETTA's performance under this Agreement.
          ROSETTA agrees to maintain at its expense general liability coverage
          at a minimum level of Three Million Dollars ($3,000,000) per
          occurrence, to name XENO as an additional insured on ROSETTA's
          general liability policy at all times during the term of this
          Agreement and to furnish XENO, upon reasonable request,
          certificates evidencing such coverage and copies of the applicable
          policies.

     7.6. PATENT DEFENSE COSTS. XENO will use reasonable efforts, at its
          discretion to defend XENO Patents and Harvard Patents at its own
          expense against any infringement by a Third Party, and XENO will
          notify ROSETTA promptly in writing of any such infringement by a Third
          Party known by XENO; PROVIDED, HOWEVER, that (a) ROSETTA, at its
          option, may elect to join any such prosecution of a Third Party
          infringer initiated by XENO at ROSETTA's expense and (b) XENO will
          conduct such prosecution upon the advice and consent of ROSETTA with
          respect to material decisions (including litigation strategy
          decisions) relating to such prosecution. If XENO

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -7-

<PAGE>

          does not initiate such a prosecution with respect to any individual
          instance of Third Party infringement, ROSETTA may, at its own expense,
          upon the advice and with the consent of XENO, initiate and control
          such prosecution. In the event that ROSETTA is sued by a Third Party
          for infringement of a Third Party's patent, XENO hereby agrees, if
          ROSETTA so requests, to provide ROSETTA with all reasonable advice or
          technical support that ROSETTA may reasonably request at ROSETTA's
          expense.

     7.7. DILIGENCE. ROSETTA agrees to use reasonable commercial efforts to
          fulfill the obligations of the express due diligence provision of the
          Harvard License Agreement as it applies to a sublicense under the
          Harvard License Agreement.

     7.8. FORCE MAJEURE. Neither party shall lose any rights hereunder or be
          liable to the other party for damages or losses (except for payment
          obligations) on account of failure of performance by the defaulting
          party if the failure is occasioned by war, strike, fire, act of God,
          earthquake, flood, lockout, embargo, governmental acts or orders or
          restrictions, failure of suppliers, or any other reason where failure
          to perform is beyond the reasonable control and not caused by the
          negligence or intentional conduct or misconduct of the nonperforming
          party, and such party has exerted all reasonable efforts to avoid or
          remedy such force majeure; PROVIDED HOWEVER, that in no event shall a
          party be required to settle any labor dispute or disturbance. -

     7.9. AMENDMENT. No modification, supplement to or waiver of this Agreement
          or any Addendum hereto or any of their provisions shall be binding
          upon a party hereto unless made in writing and duly signed by an
          authorized representative of both XENO and ROSETTA. In no event may
          the terms of this Agreement be changed, deleted, supplemented or
          waived by any notice, purchase order, receipt, acceptance, bill of
          lading or other similar form of document. A failure of either party to
          exercise any right or remedy hereunder, in whole or in part, or on one
          or more occasions, shall not be deemed either a waiver of such right
          or remedy to the extent not exercised, or of any other right or
          remedy, on such occasion or a waiver of any right or remedy on any
          succeeding occasion.

    7.10. ENTIRE AGREEMENT. This Agreement, and each Exhibit attached hereto,
          and each supplemental written agreement contemplated hereunder, sets
          forth the entire understanding and agreement of the parties as to the
          subject matter thereof, and there are no other understandings,
          representations or promises, written or verbal, not set forth herein
          or on which either party has relied. If any provisions of any such
          Addendum or supplemental written agreement conflict with any
          provisions set forth in this Agreement, the provisions of this
          Agreement shall take precedence, unless such Addendum or supplemental
          written agreement expressly refers to the specific provision(s) of
          this Agreement that it is intended to replace or modify (and which
          shall be limited in force and effect to such Addendum or supplemental
          written agreement only).

    7.11. NOTICES.  All Notices under this Agreement shall be given in writing
          and shall be addressed to the parties at the following addresses:

                           FOR XENO:

                                    Stephen J. Sullivan
                                    CEO, President and Director
                                    Xenometrix, Inc.
                                    2425 North 55th Street

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -8-

<PAGE>

                                    Boulder, Colorado 8030 1-5700

                            FOR ROSETTA:

                                    President
                                    Rosetta Inpharmatics
                                    12040 115th Avenue NE
                                    Kirkland, WA 98034

          Notices shall be in writing and shall be deemed delivered when
          received, if delivered by a courier, overnight mail service or the
          like, or a week following mailing, if sent by first-class certified or
          registered mail, postage prepaid.

    7.12. ARBITRATION. The parties recognize that disputes as to certain
          matters may from time to time arise during the term of this Agreement
          which relate to either party's rights and/or obligations hereunder. It
          is the objective of the parties to establish procedures to facilitate
          the resolution of disputes arising under this Agreement in an
          expedient manner by mutual cooperation and without resort to
          arbitration. The parties agree that prior to any arbitration
          concerning this Agreement, XENO's CEO and ROSETTA's CEO or COO will
          meet in person or by video-conferencing in a good faith effort to
          resolve any disputes concerning this Agreement. Within thirty (30)
          days of a formal request by either party to the other, any party
          may, by written notice to the other, have such dispute referred to
          their respective officers designated or their successors, for
          attempted resolution by good faith negotiations, such good faith
          negotiations to begin within thirty (30) days after such notice is
          received. Except as otherwise provided specifically herein, any
          controversy or claim under this Agreement shall be solely settled
          by arbitration by one arbitrator pursuant to the Commercial
          Arbitration Rules of the American Arbitration Association (the
          "Association"); provided that the parties shall first use their
          best efforts to resolve such dispute by negotiation. The
          arbitration shall be conducted in Boulder, Colorado. The arbitrator
          shall be selected by the joint agreement of the parties, but if
          they do not so agree within twenty (20) days of the date of a
          request for arbitration, the selection shall be made pursuant to
          the rules of the Association. The decision reached by the
          arbitrator shall be conclusive and binding upon the parties hereto
          and may be filed with the clerk of any court of competent
          jurisdiction, and a judgment confirming such decision may, if
          desired by any party to the arbitration, be entered in such court.
          Each of the parties shall pay its own expenses of arbitration and
          the expenses of the arbitrator(s) shall be equally shared;
          PROVIDED, HOWEVER, that if in the opinion of the arbitrator(s) any
          claim hereunder or any defense or objection thereto was
          unreasonable, the arbitrator(s) may assess, as part of the award,
          all or any part of the arbitration expenses (including reasonable
          attorneys' fees) against the party raising such unreasonable claim,
          defense or objection. Nothing herein set forth shall prevent the
          parties from settling any dispute by mutual agreement at any time.

    7.13. GOVERNING LAW. This Agreement shall be governed by and construed in
          accordance with the laws of the State of Colorado, without regard or
          giving effect to its principles of conflict of laws.

    7.14. SEVERABILITY AND SURVIVAL. This Agreement is intended to be
          severable. If any provision(s) of this Agreement are or become
          invalid, are ruled illegal by a court of competent jurisdiction or are
          deemed unenforceable under the current applicable law from time to
          time in effect during the term hereof, it is the intention of the
          parties that the remainder of the Agreement shall not be affected
          thereby and shall continue to be construed to the maximum extent
          permitted by law at

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -9-

<PAGE>

          such time. It is further the intention of the parties that in lieu of
          each such provision which is invalid, illegal, or unenforceable, there
          shall be substituted or added as part of this .Agreement by such court
          of competent jurisdiction a provision which shall be as similar as
          possible, in economic and business objectives as intended by the
          parties to such invalid, illegal or unenforceable provision, but shall
          be valid, legal and enforceable. Unless expressly stated otherwise,
          any provision intended by its meaning to survive, will survive the
          expiration or any other termination of this Agreement.

    7.15. INDEPENDENT CONTRACTORS. The parties hereto are acting as independent
          contractors and shall not be considered partners, joint venturers or
          agents of the other. Neither shall have the right to act on behalf of,
          or to bind, the other.

    7.16. HEADINGS. Captions and paragraph headings are for convenience only
          and shall not form an interpretative part of this Agreement. Unless
          otherwise specifically provided, all references to an Article
          incorporate all Articles or subsections thereunder. This Agreement
          shall not be strictly construed against either party hereto and maybe
          executed in two or more counterparts, each of which will be deemed an
          original and the same instrument.

                            (Signature Page Follows]

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -10-

<PAGE>

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

By: /s/ Stephen J. Sullivan                        Date: 11/12/98
   -------------------------------------                 ---------------------

Stephen J. Sullivan
CEO and President
For Xenometrix, Inc.

By: /s/ Stephen H. Friend, M.D., Ph.D.             Date: 11/12/98
   -------------------------------------                 ---------------------

Stephen H. Friend, M.D., Ph.D.
President, Chief Scientific Officer
for ROSETTA INPHARMATICS, Inc.

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

                                      -11-

<PAGE>

                                    EXHIBIT A

<TABLE>
<CAPTION>

         PATENT/              FILING DATE            COUNTY              ISSUE DATE                   TITLE
      APPLICATION #

    <S>                       <C>                 <C>                   <C>              <C>

          [***]                   [***]               [***]

        5,811,231                7/21/95                US                9/22/98              Methods and Kits for
                                                                                             Mammalian Gene Profiling
         692434                  1/21/94             Australia            6/11/98
        E160178                  1/21/94              Austria            11/12/97
       0 680 517                 1/21/94              Belgium            11/12/97
        2154265                  1/21/94              Canada
       0 680 517                 1/21/94              Denmark            11/12/97
       0 680 517                 1/21/94                EPC              11/12/97
       0 680 517                 1/21/94              France             11/12/97
    694 06 772,5-08              1/21/94              Germany            11/12/97
       980400301                 1/21/94              Greece             11/12/97
       0 680 517                                     Hong Kong
        E77394                   1/21/94              Ireland            11/12/97
      20035BE/98                 1/21/94               Italy             11/12/97
       6-517147                  1/21/94               Japan
       0 680 517                 1/21/94             Luxembourg          11/12/97
       0 680 517                 1/21/94               Monaco            11/12/97
       0 680 517                 1/21/94             Netherlands         11/12/97
      US94/00583                 1/21/94                PCT
       0 680 517                 1/21/94              Portugal            1/19/98
       9601405-5                 2/13/96             Singapore
       0 680 517                 1/21/94               Spain             11/12/97
       0 680 517                 1/21/94               Sweden            11/12/97
       0 680 517                 1/21/94            Switzerland          11/12/97
       0 680 517                 1/21/94                UK               11/12/97

</TABLE>

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

<PAGE>

                                    EXHIBIT B

<TABLE>
<CAPTION>

         PATENT/              FILING DATE            COUNTY              ISSUE DATE                   TITLE
      APPLICATION #

      <S>                     <C>                 <C>                    <C>             <C>
        5,589,337               1/6/95                 US                 12/31/96        Methods and Diagnostic Kits
                                                                                          for Determining Toxicity
                                                                                          Utilizing Bacterial Stress
                                                                                          Promoters Fused to Report
                                                                                          Genes
         651825                 7.6.93                 EPO                 1/14/98
        5,585,232              4/21/94                 US                 12/17/96        Methods and Diagnostics
                                                                                          Kits for Determining
                                                                                          Toxicity Utilizing E.coli
                                                                                          Stress Promoters Fused to
                                                                                          Reporter Genes
        9601688-6              2/14/96              Singapore
        2,139,667               7/9/93               Canada
        6-503562                7/6/93                Japan
        95-700038               7/6/93                Korea
        07/910793               7/6/92                  US
        45884/95                7/6/93              Australia
         95.004                 7/6/93                Norway

</TABLE>

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

<PAGE>

                                    EXHIBIT C

                            HARVARD LICENSE AGREEMENT

                                LICENSE AGREEMENT

         This Agreement is made and entered into between the President and
Fellows of Harvard College (hereinafter "Harvard") having offices at the
Office for Technology and Trademark Licensing, 124 Mt. Auburn Street, Suite
410, Cambridge, Massachusetts 02138 and Venmark Ltd. (hereinafter
"Licensee"), a New York corporation having offices c/o The Castle Group,
Ltd., 375 Park Avenue, Suite 1501, New York, New York 10022.

         Whereas Harvard is the owner by assignment from Dr. Spencer Farr
(the "Inventor") of the entire right, title and interest in the United States
patent Application yet to be filed described in Exhibit A attached hereto
(which Exhibit shall be amended to include the actual Application when such
Application is filed), in the foreign patent applications corresponding
thereto, and in the inventions described and/or claimed therein; and

         Whereas Harvard is committed to a policy that ideas or creative
works produced at Harvard should be used for the greatest possible public
benefit; and

         Whereas Harvard accordingly believes that every reasonable incentive
should be provided for the prompt introduction of such ideas into public use,
all in a manner consistent with the public interest; and

         Whereas Licensee is desirous of obtaining an exclusive worldwide
license in order to practice the above referenced invention covered by Patent
Rights in the United States and in certain foreign countries, and to
manufacture, have manufactured, use and sell in the commercial market the
products made in accordance therewith; and

         Whereas Harvard is desirous of granting such a license to Licensee
in accordance with the terms of this Agreement.

         Now therefore, in consideration of the foregoing premises, the
parties agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS

     1.1  "Patent Rights" shall mean (i) the United States Patent Application
          yet to be filed described in Exhibit A attached hereto (which Exhibit
          shall be amended to include the actual Application when such
          Application is filed), the inventions described and/or claimed
          therein, and any substitutions, divisions, continuations,
          continuations-in-part, patents issuing thereon r reissues or
          re-examinations thereof and any and all foreign patents and patent
          applications corresponding thereto; (ii) all patent applications to
          the extent assigned to Harvard and to the extent Harvard is able,
          under its obligations to third parties, to grant rights to Licensee
          and on which Inventor is a named inventor, the inventions described
          and/or claimed therein and any substitutions, divisions,
          continuations, continuations-in-part, patents issuing thereon or
          reissues or re-examinations thereof which relate to the design,
          development and/or manufacture of any products incorporating the
          technology identified in (i) to the extent that their use would be in
          any way dominated by the claims in (i) and any and all foreign patents
          and patent applications corresponding thereto; (iii) all patent
          applications to the extent assigned to Harvard and to the extent
          Harvard is able, under its obligations to third parties, to grant
          rights to Licensee and on which Inventor is a named inventor, the
          inventions described and/or claimed therein and any substitutions,
          divisions, continuations, continuations-in-part, patents issuing
          thereon or reissues

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

<PAGE>

          or re-examinations thereof which relate to any improvements in the
          technology incorporated in (i) or (ii) to the extent that their use
          would be in any way dominated by the claims in (i) and any and all
          foreign patents and patent applications corresponding thereto. The
          foreign patents and patent applications corresponding thereto referred
          to in (i), (ii) and (iii) above when filed or issued will be
          automatically incorporated in and added to this Agreement and shall
          periodically be added to Appendix A attached to this Agreement and
          made a part hereof; provided, however, that no failure to periodically
          add such foreign patents and/or patent applications thereto shall be
          considered to exclude such foreign patents and/or patent applications
          from the meaning of "Patent Rights."
         1.2 "Licensed Products" shall mean products or components thereof
claimed in Patent Rights or products or components thereof made in accordance
with or by means of Licensed Processes.

         1.3 "Licensed Processes" shall mean the processes claimed in Patent
Rights and any and all inventions, designs, drawings, specifications, ideas,
discoveries, trade secrets, know-how, codes, formulas, techniques and data
which have been developed or acquired by the Inventor and to which Harvard
has ownership rights.

         1.4 "Net Sales" shall mean the amount billed or invoiced on sales of
Licensed Products or Licensed Processes less:

                  (a)      Customary trade, quantity or cash discounts and
                           non-affiliated brokers' or agents' commissions
                           actually allowed and taken;

                  (b)      Amounts repaid or credited by reason of rejection or
                           return; and/or

                  (c)      To the extent separately stated on purchase orders,
                           invoices or other documents of sale, taxes levied on
                           and/or other governmental charges made as to
                           production, sale, transportation, delivery or use and
                           paid by or on behalf of Licensee.

In the event of a use or sale of Licensed Products or Licensed Processes
solely for clinical testing or research and development purposes for which
Licensee receives no revenue, then no royalty shall be due or payable to
Harvard pursuant to the Article 3 or otherwise.

     1.5  "Affiliates" shall mean any company, corporation, or business in which
          Licensee owns or controls at least fifty percent (50%) of the voting
          stock.
          1.6 "Field" shall mean all potential fields or use of the Patents
Rights, the Licensed Products and the Licensed Processes, including, but not
limited to, molecular biology and toxicology.

          1.7 "Sublicensee" shall mean an entity which Licensee has granted
(a) the right to manufacture and market the Licensed Products, or (b) the
right to sublicense the Licensed Processes to others, or (c) the right to
practice the Licensed Processes as part of the business of tasting
toxicological responses of any products on behalf of other entities except
when that right is granted to the purchaser of a kit containing a Licensed
Product to allow such purchaser to use such kit.

                                    ARTICLE 2

                                      GRANT

     2.1  Harvard hereby grants to Licensee and Licensee accepts, subject to the
          terms and conditions hereof, a worldwide exclusive license in the
          Field, under Patent Rights, to make and have made, to use and have
          used, to sell and have sold, to distribute and have distributed and to
          market and

                                      -2-

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

<PAGE>

          have marketed the Licensed Products, and to practice the Licensed
          Processes, for the life of the Patent Rights. Such license shall
          include the right to grant sublicenses, and Licensee agrees to give
          Harvard thirty (30) days written notice of the identity of any
          sublicensee prior to executing any sublicense agreement with respect
          to the Patent Rights. Harvard agrees it will not grant licenses to
          others except as required by Harvard's obligations in paragraph 2.2(a)
          or as permitted in paragraph 2.2(b). Licensee agrees during the period
          of exclusivity of this license in the United States that any Licensed
          Product produced for sale in the United States will be manufactured
          substantially in the United States.

     2.2  The granting and acceptance of this license is subject to the
following conditions:
                  (a) Harvard's "Statement of Policy in Regard to Inventions,
Patents and Copyrights" dated March 17, 1986, Public Law 96-517, Public Law
98-620, in each case, as in effect on the date the particular patent Right
becomes a Patent Right subject to this Agreement. Any right granted in this
Agreement greater than that permitted under Public Law 96-517 or Public Law
98-620, in each case, as in effect on the date the particular Patent Right
becomes a Patent Rights, subject to this Agreement, shall be subject to
modification as may be required to conform to the provisions of those statutes.

                  (b) Harvard shall have the right to make and to use, for
its own research purposes only and not for any commercial purpose, the
subject matter described and claimed in Patent Rights.

                  (c) Licensee shall use reasonable effort to effect
introduction of the Licensed Products into the commercial market as soon as
practicable, consistent with sound and reasonable business practices and
judgments; thereafter, until the expiration of this Agreement, Licensee shall
endeavor to keep Licensed Products reasonably available to the public;
recognizing, however, that this provision shall not affect Licensee's right
to freely determine pricing for the Licensed Products and Licensed Processes.

                  (d) After giving Licensee six (6) months prior written
detailed notice, Harvard shall have the right to terminate this License as to
a particular country or render this license non-exclusive as to a particular
country at any time after three (3) years from the date of license if, in
Harvard's reasonable judgment, at the end of the six (6) month notice period
Licensee EITHER:

     (i)  has not put the license subject matter into commercial use in such
          country directly or through a sublicense, and is not keeping the
          licensed subject matter reasonably available to the public in such
          country, OR
                           (ii) is not demonstrably engaged in research,
         development, manufacturing, marketing or licensing program, as
         appropriate, directed toward this end in such country.

In making this determination Harvard shall take into account the normal
course of such programs conducted with sound and reasonable business
practices and judgment and shall take into account the reports provided
hereunder by Licensee.

                  (e) All sublicenses granted by Licensee hereunder shall
include a requirement that the sublicensee use reasonable efforts to bring
the subject matter of the sublicense into the commercial market as soon as
practicable, consistent with sound and reasonable business practices and
judgment. Copies of all sublicense agreements shall be provided to Harvard.

     2.3  If this license is terminated with respect to a particular country or
          rendered non-exclusive as to a particular country by Harvard in
          accordance with Section 2.2 hereof, or if this license is terminated
          in accordance with Section 8.2 hereof, Harvard may at its sole option
          extend the period of exclusivity, extend the license on a
          non-exclusive basis, or, in the case of a termination under Section
          2.2 or 8.2, permit the license to terminate.

                                      -3-

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

<PAGE>

         2.4 Harvard hereby grants to Licensee the right to extend the
licenses granted or to be granted in paragraphs 2.1 and 2.3 to an Affiliate
subject to the terms and conditions hereof.

         2.5 All rights reserved to the United States Government and others
under Public Law 96-517 and 98-620, in each case, as in effect on the date
the particular Patent Rights becomes subject to this Agreement shall remain
and shall in no way be affected by this Agreement.

                                    ARTICLE 3

                                    ROYALTIES

     3.1  Licensee shall pay to Harvard a non-refundable license fee in the sum
          of [***] upon execution of this Agreement. Licensee shall also pay
          Harvard [***] within sixty (60) days after a non-temporary order of
          the Food and Drug Administration or the Environmental Protection
          Agency requiring the use of a Licensed Product or Licensed Process
          where Licensee, together with its Affiliates and Sublicensees,
          constitutes the market leader in terms of Net Sales of such Licensed
          Product or Licensed Process.
          3.2 (a) Licensee shall pay to Harvard, during the term of the license
of paragraph 2.1, a royalty of [***]of the Net Sales of all Licensed Products
sold (i.e., sales of kits containing a Licensed Product) by Licensee and its
Affiliates. Licensee shall pay to Harvard, during the term of the license of
paragraph 2.1, a royalty of [***] of the Net Sales of all Licensed Processes
sold (i.e., toxicology tasting services performed for others by employees of
Licensee or its Affiliate) by Licensee and its Affiliates. Licensee shall pay to
Harvard, during the term of the license of paragraph 2.1 and before a patent is
issued with respect to any Paten Right, a royalty of [***] of the
sublicensing income (i.e., royalties and license issue fees) which Licensee and
its Affiliates receive from End-User Sublicensees for sublicenses of the
Licensed Processes. Licensee shall pay to Harvard, during the term of the
license of paragraph 2.1 and after a patent is issued with respect to any Patent
Right, a royalty of [***] of the sublicensing income (i.e., royalties and
license issue fees) which Licensee and its Affiliates receive from End-User
Sublicensees for sublicenses of the Licensed Processes. Licensee shall pay to
Harvard, during the term of the license of paragraph 2.1, a royalty of [***]
of the sublicensing income i.e., royalties and license issue fees) which
Licensee and its Affiliates receive from Sublicensees for sublicenses of the
Licensed Products or Licensed Processes. No multiple royalties shall be due
because the sale or sublicense of any Licensed Product or Licensed Process is
described in more than one sentence of this Section 3.2(a). In the event of any
such overlap, the sentence which most accurately describes the relevant
transaction at issue shall prevail.

                  (b) If this license is converted to a non-exclusive one as
to a particular country or if other non-exclusive licenses are granted
pursuant to Section 2.3 hereof, the royalty payable by Licensee with respect
to Net Sales of Licensed Products or Licensed Processes the subject of such
non-exclusive license shall not exceed the royalty being paid by other
licensees to Harvard during the tem of the non-exclusive license. On Net
Sales or sublicenses between Licensee and its Affiliates, royalties ahll be
payable on the resale or subsublicense only.

     3.3  (a) As further consideration for the licensure of Patent Rights, upon
          the closing of the first round of equity investment in License,
          Licensee agrees to issue to Harvard shares of Licensee's Class B
          Common Stock which shall be convertible into three percent (3%) of
          Licensee's Class A Common Stock on a fully diluted basis. The Class B
          Common Stock shall have the characteristics, rights, preferences and
          privileges set forth in the Certificate of Incorporation of the
          Licensee and set forth herein as Exhibit B. Such characteristics,
          rights, preferences and privileges shall not be amended without the
          consent of Harvard.

                  (b) In the event that Harvard adopts a policy which requires
Harvard to divest all

                                      -4-

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

<PAGE>

interests Harvard may have in entities which license technology from Harvard,
then until the Licensee's shares are publicly traded, Harvard may, after giving
Licensee ninety (90) days notice, require that Licensee purchase Harvard's
shares at the last offered price or, if no offered price exists, at a price of
three percent (3%) of the amount invested in Licensee as of that date.

     3.4  Harvard shall have the right to terminate this license in the event
          that Licensee does not pay to Harvard at least the following amounts
          in license maintenance fees and/or minimum royalties:
                  Third calendar year, 1994                   [***]
                  Next calendar year                          [***]
                  Next calendar year and each
                           year thereafter                    [***]

                                    ARTICLE 4

                                    REPORTING

     4.1  Licensee shall provide written annual reports within sixty (60) days
          after June 30 of each calendar year which shall include but not be
          limited to: reports of progress on research and development,
          regulatory approvals, manufacturing, sublicensing, marketing and sales
          during the preceding twelve (12) months as well as plans for the
          coming year. If progress differs from that anticipated in the plan
          provided under Section 4.1 hereof, Licensee shall explain the reasons
          for the difference and propose a modified plan for Harvard's review
          and comment. Licensee shall also provide any reasonable additional
          data Harvard requires to evaluate Licensee's performance.
         4.2 Licensee shall report to Harvard the date of first sale of Licensed
Products (or results of Licensed Processes) in each country within thirty (30)
days of occurrence.

         4.3 Licensee agrees to submit to Harvard within sixty (60) days after
the calendar half years ending June 30 and December 31, reports setting forth
for the preceding six (6) month period the amount of the Licensed Products sold
by Licensee, its Affiliates and sublicensees in each country, the Net Sales
thereof, and the amount of royalty due thereon and with each such royalty report
to pay the amount of royalty due. Such report shall be certified as correct by
an officer of Licensee and shall include a detailed listing of all deductions
from Net Sales, sublicensee income or from royalties as specified herein. If no
royalties are due to Harvard for any reporting period, the written report shall
so state. All royalties due hereunder shall be payable in United States dollars.
Conversion of foreign currency to U.S. dollars shall be made at the conversion
rate existing in the United States on the date of royalty payments by Licensee.
Payments which are more than sixty (60) days past due and which are not the
subject of a good faith controversy between the parties hereto shall be subject
to an interest charge of one percent (1%) per month.

         4.4 (a) Harvard's Office of Technology and Trademark Licensing ("OTTL")
agrees that at all times, both during the term and after the termination of this
Agreement, it will keep in confidence and trust all information provided to it
hereunder by Licensee or provided to it by any third party pursuant to Section
5.1 hereof (the "Proprietary Information"), and it will not use or disclose any
Proprietary Information or anything directly relating to it without the written
consent of the Licensee. OTTL warrants that OTTL shall not disclose Proprietary
Information to officers or employees of either OTTL or Harvard, except if such
disclosure is necessary to perform its obligations under this Agreement. OTTL
shall be responsible for maintaining adequate internal procedures sufficient to
fulfill its obligations under this Section 4.4. OTTL acknowledges that the
Proprietary Information constitutes a unique and valuable asset of the Licensee,
which is secret and confidential and which will be communicated to OTTL in
confidence and that any disclosure or other use of the Proprietary Information
other than for the sole benefit of the Licensee would be wrongful and would
cause irreparable harm to the Licensee.

                                      -5-

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

<PAGE>

                  (b) Notwithstanding the foregoing, the parties agree that, at
all such times, Harvard is free to use or disclose, as the case may be, (i)
information in the public domain not as a result of the breach of this
Agreement, (ii) Harvard's own skill, knowledge, know-how and experience to
whatever extent and in whatever way it wishes, and (iii) information which
Harvard is by law, including Public Law 960517 and 98-620, required to disclose

     4.5  Licensee agrees to consult with Harvard regarding its intention to
          seek financing from the public markets and to inform Harvard
          substantially in advance of its intentions and to copy Harvard on all
          drafts of offering memorandums coincidental with Licensee's receipt of
          same. In any event, Licensee agrees that it will not seek financing
          from the public markets until at least one of the following has
          occurred:

                  (a) Licensee has obtained a cumulative minimum investment of
one million two hundred and fifty thousand dollars ($1,250,000), and such
funds have been allocated for use;

                  (b) Two years from the execution of this Agreement have
passed;

                  (c) Approval, recommendation or requirement of use for the
Licensed Products or Licensed Processes has been obtained from any Federal
regulatory agency;

                  (d) Licensee has in excess of twenty (20) employees; or

                  (e) Licensee has reduced the Licensed Products or Licensed
Processes to practice in the form of a saleable kit.

                                    ARTICLE 5

                                 RECORD KEEPING

     5.1  Licensee shall keep, and shall require its Affiliates and sublicensees
          to keep, accurate and correct records of Licensed Products or Licensed
          Processes made, used or sold under this Agreement, appropriate to
          determine the amount of royalties due hereunder to Harvard. Such
          records shall be retained for at least three (3) years following a
          given reporting period. On reasonable prior written notice to
          Licensee, such records shall be available during normal business
          hours for inspection at the expense of Harvard by Harvard's Internal
          Audit Department or by a Certified Public Accountant selected by
          Harvard and approved by Licensee for the sole purpose of verifying
          reports and payments hereunder. Such accountant shall not disclose
          to Harvard any information other than information relating to
          accuracy of reports and payments made under this Agreement. In the
          event that any such inspection shows an underreporting and
          underpayment in excess of ten percent (10%) for any twelve (12) month
          period, then Licensee shall pay the cost of such examination.
          Licensee shall be entitled to receive from Harvard copies of all
          reports prepared by or on behalf of Harvard in the exercise by
          Harvard of its rights hereunder.

                                    ARTICLE 6

               DOMESTIC AND FOREIGN PATENT FILING AND MAINTENANCE

         6.1 Subject to the provisions of Section 6.3 hereof, Licensee shall
reimburse Harvard for all reasonable out-of-pocket expenses Harvard has incurred
for the preparation, filing, prosecution and maintenance of Patent Rights and
shall reimburse Harvard for all such future reasonable out-of-pocket expenses.
Harvard shall take responsibility for the preparation, filing, prosecution and
maintenance of any and all patent applications and patents included in Patent
Rights, provided however that Harvard shall first consult with Licensee as to
the preparation, filing, prosecution and maintenance of such patent

                                      -6-

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

<PAGE>

applications and patents and shall furnish to Licensee copies of documents
relevant to any such preparation, filing, prosecution or maintenance.

         6.2 Harvard and Licensee shall cooperate fully in the preparation,
filing, prosecution and maintenance of Patent Rights and of all patents and
patent applications licensed to Licensee hereunder, executing all papers and
instruments or requiring members of Harvard to execute such papers and
instruments so as to enable Harvard to apply for, to prosecute and to maintain
patent applications and patents in Harvard's name in any country. Each party
shall provide to the other prompt notice as to all matters which come to its
attention and which may affect the preparation, filing, prosecution or
maintenance of any such patent applications or patents. Either party may give
notice to the other of any foreign country in which such party wishes to seek
patent protection for all or any part of the Patent Rights. In the case of such
a designation by Licensee (and the provision of reasonable assurance of payment
by it of the expenses to be incurred) Harvard may not refuse to seek such patent
protection in the country so designated.

         6.3 Harvard shall submit a written request to Licensee for any
reasonable out-of-pocket expenses incurred by it in complying with Sections 6.1
and 6.2 hereof. Licensee is obligated to reimburse any reasonable expenses
incurred by Harvard for action in support of Patent Rights unless after
providing written notice to Licensee, Harvard is notified in writing in advance
of any such action that such action should not be taken. If, within sixty (60)
days of such request, Licensee elects not to pay the expenses of a patent
application or patent included within Patent Rights, Licensee shall thereby
surrender its rights under such patent or patent application.

                                    ARTICLE 7

                                  INFRINGEMENT

         7.1 With respect to any Patent Rights under which Licensee is
exclusively licensed pursuant to this Agreement, Licensee or its sublicensee
shall have the right to prosecute in its own name and at its own expense any
infringement of such patent, so long as such license is exclusive at the time of
the commencement of such action. Harvard agrees to notify Licensee promptly of
each infringement of such patents of which Harvard is or becomes aware. Licensee
shall reimburse Harvard for its reasonable out-of-pocket expenses incurred in
connection with any protection of the non-exclusively licensed Patent Rights pro
rata in the proportion the aggregate amount of such expenses bears to the total
number of non-exclusive licensees of such Patent Rights. Failure by either party
to commence an action which is contemplated by this Section 7.1 shall not
constitute a breach of this Agreement.

         7.2 If Licensee or its sublicensee elects to commence an action as
described above or if an action is commenced against the Licensee or its
sublicensee by a third party and Harvard is a legally indispensable party to
such action, Harvard shall have the right either to join the action as a
co-plaintiff or to assign to Licensee all of Harvard's right, title and interest
in each patent which is a part of the Patent Rights and is the subject of such
action (subject to all Harvard's obligations to the government and others having
rights in such patent). In the event Harvard joins the action as a co-plaintiff,
Harvard shall jointly control the action with the Licensee or its sub-licensee.
In the event that Harvard makes such an assignment, such assignment shall be
irrevocable, and such action by Licensee on that patent or patents shall
thereafter be brought or continued without Harvard as a party, if Harvard is no
longer an indispensable party. Notwithstanding any such assignment to Licensee
by Harvard and regardless of whether Harvard is or is not an indispensable
party, Harvard shall cooperate fully with Licensee in connection with any action
commenced by or against Licensee or any sublicensee. In the event that any
patent is assigned to Licensee by Harvard, pursuant to this paragraph, such
assignment shall require Licensee to continue to meet its obligations under this
Agreement as if the assigned patent or patent

                                      -7-

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

<PAGE>

application were still licensed to Licensee.

         7.3 Licensee shall reimburse Harvard for any reasonable out-of-pocket
costs it incurs as part of an action contemplated by this Article 7,
irrespective of whether Harvard shall become a co-plaintiff in any such action
(such reimbursement to be on the pro rata basis set forth in Section 7.1 in the
case of an action relating to non-exclusively licensed Patent Rights); provided,
however, that Licensee shall have no obligation to reimburse Harvard for any
costs which Licensee notifies Harvard will duplicate costs incurred or to be
incurred by Licensee.

         7.4 If Licensee or its sublicensee elects to commence an action as
described above, Licensee may reduce, by up to [***] the royalty due to
Harvard earned under the patent subject to suit by [***] of the amount of the
expenses and costs of such action, including attorney fees. In the event that
such [***] expenses and costs exceed the amount of royalties withheld by
Licensee for any calendar year, Licensee may to that extent reduce the royalties
due to Harvard from Licensee in succeeding calendar years, but never by more
than [***] of the royalty due in any one year.

         7.5 Recoveries or reimbursements from such action shall first be
applied to reimburse Licensee and Harvard for litigation costs not paid from
royalties (if any) and then to reimburse Harvard for royalties withheld. Any
remaining recoveries or reimbursements shall be shared equally by Licensee and
Harvard.

         7.6 In the event that Licensee and its sublicensee, if any, elect not
to exercise their right to prosecute an infringement of the Patent Rights
pursuant to the above paragraphs, Harvard may do so at its own expense,
controlling such action and retaining all recoveries therefrom.

                                    ARTICLE 8

                            TERMINATION OF AGREEMENT

         8.1 This Agreement, unless extended or terminated as provided herein,
shall remain in effect for the life of the last to expire patent in Patent
Rights.

         8.2 (a) The following events shall constitute an event of default under
this Agreement (an "Event of Default"):

                           (i)   Licensee shall fail to make any royalty payment
         which is not the subject of good faith controversy between the parties
         hereto within ten (10) days after the same shall have become due; or

                           (ii)  Licensee shall consent to the appointment of a
         receiver, trustee or liquidator of itself or of a substantial part of
         its property, or Licensee shall admit in writing its inability to pay
         its debts generally as they come due or shall make a general assignment
         for the benefit of creditors; or

                           (iii) Licensee shall file a voluntary petition in
         bankruptcy or a voluntary petition or an answer seeking reorganization
         in a proceeding under any bankruptcy laws (as now or hereafter in
         effect) or an answer admitting the material allegations of a petition
         filed against Licensee in any such proceeding; or

                           (iv)  an order, judgment or decree shall be entered
         in any proceeding by any court of competent jurisdiction appointing,
         without the consent of Licensee, a receiver, trustee or

                                      -8-

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.
<PAGE>

         liquidator of Licensee or of any substantial part of its property, or
         sequestering any substantial part of its property, and any such order,
         judgment or decree of appointment or sequestration shall remain in
         force undismissed, unstayed or unvacated for a period of 90 days after
         the date of entry thereof;

                           (v)   a petition against Licensee in a proceeding
         under applicable bankruptcy laws or other insolvency laws as now or
         hereafter in effect, shall be filed and shall not be withdrawn or
         dismissed within 90 days thereafter, or if, under the provisions of
         any law providing for reorganization or winding-up of corporations
         which may apply to Licensee, any court of competent jurisdiction
         shall assume jurisdiction, custody or control of Licensee or of any
         substantial part of its property and such jurisdiction, custody or
         control shall remain in force unrelinquished, unstayed or unterminated
         for a period of 90 days;

                           (vi)  failure to make minimum royalty payments under
         the Article 3 of this Agreement, or failure to comply with the
         reporting and due diligence requirements under Articles 2 and 4 of this
         Agreement unremedied after thirty (30) days notice; or

                           (vii) failure to comply with Article 9.3 of this
         Agreement.

                  (b)      The parties acknowledge and agree that no failure by
Licensee to meet any of the other obligations or duties herein set forth of any
kind or nature whatsoever shall be considered a material breach of this
Agreement, an "Event of Default" or the grounds for the termination of this
Agreement by Licensor.

     8.3  On the occurrence of an Event of Default, and if such Event of Default
          has not been remedied within ninety (90) days after the date of notice
          in writing of such Event of Default has been given to the Licensee by
          Harvard, Harvard may terminate this Agreement by written notice.
     8.4  Any sublicenses granted by Licensee under this Agreement shall provide
          for termination or assignment to Harvard, at the option of Harvard, of
          Licensee's interest therein upon termination of this Agreement.
     8.5  Licensee shall have the right to terminate this Agreement by giving
          thirty (30) days advance written notice to Harvard to that effect and
          paying a [***]; provided, however, that no such termination fee
          shall be payable in the event that any patent or claim included within
          the Patent Rights are held invalid or unenforceable. Upon termination,
          a final report shall be submitted and any royalty payments and
          unreimbursed patent expenses due to Harvard become immediately
          payable.
          8.6      Sections 4.4, 8.5, 9.2, 9.3 and 9.4 of this Agreement shall
                  survive termination.

                                    ARTICLE 9

                                     GENERAL

     9.1  Harvard represents and warrants that the entire right, title, and
          interest in the patent applications or patents comprising the Patent
          Rights have been assigned to it and that Harvard has the authority to
          issue licenses under said Patent Rights. Harvard does not warrant the
          validity of the Patent Rights licensed hereunder and makes no
          representations whatsoever with regard to the scope of the licensed
          Patent Rights or that such Patent Rights may be exploited by Licensee,
          an Affiliate, or sublicensee without infringing other patents however,
          Harvard has no reason to believe that the Patent Rights are invalid or
          that exploitation by Licensee, an Affiliate or sublicensee of the
          Patent Rights will infringe other patents.
          9.2 HARVARD EXPRESSLY DISCLAIMS ANY AND ALL IMPLIED OR EXPRESS

                                      -9-

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.
<PAGE>

WARRANTIES AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR
FITNESS OF THE TECHNOLOGY, LICENSED PROCESSES OR LICENSED PRODUCTS CONTEMPLATED
BY THIS AGREEMENT.

         9.3      (a) Licensee shall indemnify, defend and hold harmless
Harvard and its directors, governing board members, trustees, officers,
faculty, medical and professional staff, employees, students, and agents and
their respective successors, heirs and assigns (the "Indemnitees"), against
any liability, damage, loss or expenses (including reasonable attorneys' fees
and expenses of litigation) incurred by or imposed upon the Indemnitees or
any one of them in connection with claims, suits, actions, demands, judgments
arising out of any theory of product liability (including, but not limited
to, actions in the form of tort, warranty, or strict liability) concerning
any product, process or service made, used or sold pursuant to any right or
license granted under this Agreement. The above indemnification shall apply
whether or not such liability, damage, loss or expense is attributable to the
negligent activities of the Indemnitees.

                  (b) Licensee agrees, at its own expense, to provide attorneys
reasonably acceptable to Harvard to defend against any actions brought or filed
against any party indemnified hereunder with respect to the subject of indemnity
contained herein, whether or not such actions are rightfully brought.

                  (c) Beginning at the time as any such product, process or
service is being commercially distributed or sold (other than for the purpose of
obtaining regulatory approvals) by Licensee or by a sublicensee, Affiliate or
agent of Licensee, Licensee shall, at its sole cost and expense, procure and
maintain comprehensive general liability insurance in amounts not less than
$2,000,000 per incident limited to $2,000,000 annual aggregate and naming the
Indemnitees as additional insureds. During clinical trails of any such product,
process or service, Licensee shall, at its sole cost and expense, procure and
maintain comprehensive general liability insurance in amounts not less than
$500,000 per incident limited to $500,000 annual aggregate, naming the
Indemnitees as additional insureds. Such comprehensive general liability
insurance (or self-insurance, as the case may be) shall provide (i) product
liability coverage and (ii) broad form contractual liability coverage for
Licensee's indemnification under this Agreement. If Licensee elects to
self-insure all or part of the limits described above (including deductibles or
retentions which are in excess of $250,000 annual aggregate) such self-insurance
program must be reasonably acceptable to Harvard and the Risk Management
Foundation of the Harvard Medical Institutions, Inc. The minimum amounts of
insurance coverage required shall not be construed to create a limit of
Licensee's liability with respect to its indemnification under this Agreement.

                  (d) Licensee shall provide Harvard with written evidence of
such insurance upon request of Harvard. Licensee shall provide Harvard with
written notice at least fifteen (15) days prior to the cancellation, non-renewal
or material change of such insurance; if Licensee does not obtain replacement
insurance providing comparable coverage within such fifteen (15) day period,
Harvard shall have the right to require Licensee, its affiliates, and
sublicensees to cease engaging in any business activities relating to the Patent
Rights until proper insurance is obtained.

                  (e) Licensee shall maintain such comprehensive general
liability insurance beyond the expiration or termination of this Agreement
during (i) the period that any product, process, or service, relating to, or
developed pursuant to, this Agreement is being commercially distributed or sold
by Licensee and (ii) a reasonable period after the period referred to in (e)(i)
above which in no event shall be less than five (5) years.

         9.4      Licensee shall not use Harvard's name or any adaptation of
it in any advertising, promotional or sales literature without the prior
written consent of Harvard. Harvard shall not unreasonably withhold its
consent to any disclosure which describes the scope and nature of the
parties'

                                      -10-

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.
<PAGE>

participation accurately and appropriately.

         9.5  Without the prior written approval of Harvard, the entire
license granted pursuant to this Agreement shall not be transferred by
Licensee to any party other than to a successor to the business interest of
Licensee relating to the Patent Rights. This Agreement shall be binding upon
the successors, legal representatives and assignees of Harvard and Licensee.

         9.6  The interpretation and application of the provisions of this
Agreement shall be governed by the laws of the Commonwealth of Massachusetts.

         9.7  Licensee agrees to comply with all applicable laws and
regulations. In particular, it is understood and acknowledged that the
transfer of certain commodities and technical data is subject to United
States laws and regulations controlling the export of such commodities and
technical data, including all Export Administration Regulations of the United
States Department of Commerce. These laws and regulations, among other
things, prohibit or require a license for the export of certain types of
technical data to certain specified countries. Licensee hereby agrees and
gives written assurance that it will comply with all United States laws and
regulations controlling the export of commodities and technical data, that it
will be solely responsible for any violation of such by Licensee or its
Affiliates or sublicensees, and that it will defend and hold Harvard harmless
in the event of any legal action of any nature occasioned by such violation.

         If to Harvard:             Office for Technology and
                           Trademark Licensing
                           Harvard University
                           124 Mt. Auburn Street, Suite 410
                           Cambridge, MA  02138

         If to Licensee:            c/o The Castle Group, Ltd.
                           375 Park Avenue, Suite 1501
                           New York, NY  10022

or such other address as either party may request in writing.

         9.9  Should a court of competent jurisdiction later consider any
provision of this Agreement to be invalid, illegal, or unenforceable, it shall
be considered severed from this Agreement. All other provisions, rights and
obligations shall continue without regard to the severed provision, provided
that the remaining provisions of this Agreement are in accordance with the
intention of the parties.

         9.10 In the event of any controversy or claim arising out of or
relating to any provision of this Agreement or the breach thereof, the parties
shall try to settle such conflicts amicably between themselves. Subject to the
limitation stated in the final sentence of this section, any such conflict which
the parties are unable to resolve shall be settled through arbitration conducted
in accordance with the rules of the American Arbitration Association. The demand
for arbitration shall be filed within a reasonable time after the controversy or
claim has arisen, and in no event after the date upon which institution of legal
proceedings based on such controversy or claim would be barred by the applicable
statute of limitation. Such arbitration shall be held in Boston, Massachusetts.
At the request of any party, arbitration proceedings will be conducted in the
utmost secrecy; in such case all documents, testimony and records shall be
received, heard and maintained by the arbitrator in secrecy under seal,
available for the inspection only of the parties and their respective attorneys
and their respective experts who shall agree in advance and in writing to
receive all such information in secrecy until such information shall become
generally known. The award through arbitration shall be final and binding.
Either party may

                                      -11-

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.
<PAGE>

enter any such award in a court for judicial acceptance of the award and an
order of enforcement, as the case may be. Notwithstanding the foregoing,
either party may, without recourse to arbitration, assert against the other
party a third-party claim or cross-claim in any action brought by a third
party, to which the subject matter of this Agreement may be relevant.

         9.11 This Agreement constitutes the entire understanding between the
parties and neither party shall be obligated by any condition or
representation other than those expressly stated herein or as may be
subsequently agreed to by the parties hereto in writing.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives.

         The effective date of this Agreement is January 17, 1999.

The President and Fellows               Venmark Ltd.
of Harvard College

Name:     /s/                           By:     /s/

Title:  Joyce Brinton, Director         Name:   /s/ [illegible]
        Office for Technology and
        Trademark Licensing

Date:     1/17/92                       Title:  Chairman and Pres.

                                  Date: January 17, 1992

                                      -12-

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

<PAGE>

                                    Exhibit A

                                 (To Be Amended)

Entire United States Patent Application, as may be drafted and amended, relating
to the work of [***]

*Confidential Treatment is requested for the language that has been underscored
or marked. Such language has been deleted from the copy filed with the SEC.

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.
<PAGE>

XENOMETRIX
2860 Wilderness Place
Boulder, Colorado  80301

Phone:  (303) 447-1773
Fax:  (303) 447-1758

                                January 10, 1996

Harvard University
Office of Technology and Trademark Licensing
Attn:  Kevin J. Heyeck
124 Mt. Auburn Street, Suite 410 South
Cambridge, MA  02138

Ladies and Gentlemen:

This is our understanding of the agreement reached in recent conversations
     between the President and Fellows of Harvard College (Harvard) and
     Xenometrix, Inc. (Xenometrix). Harvard and Xenometrix are identified
     together as the Parties.

The agreements stated in this letter are contingent on execution of this letter
     by both Parties.

Cattox-TM- Amendment Xenometrix agrees that within three days of receipt of this
     letter executed by the Parties it will execute the Amendment to the License
     Agreement between Xenometrix, Inc. and President and Fellows of Harvard
     College dated January 18, 1992 (the Amendment), said Amendment executed by
     Harvard on 7/12/95, a copy of which is attached as Exhibit 1. Xenometrix
     agrees that by executing the Amendment Xenometrix will be obligated to pay
     royalties to Harvard under Article 3 of the License Agreement with respect
     to the technology addressed in the Amendment, said technology called the
     Cattox-TM- Assay, since the inception of the License Agreement.

Royalty Reports and Payment Xenometrix agrees that it will prepare and deliver
     to Harvard royalty reports on the Cattox-TM- Assay from inception of sales
     through December 31, 1995 within 21 calendar days of receipt of this letter
     executed by the Parties, calculating the royalty due Harvard on 100% of
     such sales. Xenometrix will enclose with the reports payment for any
     royalty due.

Schiestl Technology Harvard agrees that as of December 31, 1995, Harvard owns no
     interest in the patents and patent applications set forth in Exhibit 2 (the
     Yeast Del-TM- Assay and the Mammalian Del Assay), except that Harvard
     represents that it ownss the continuation-in-part application number [***].
     Together, the Yeast Del-TM- Assay and the Mammalian Del Assay are
     identified as the Schiestl Technology. Harvard makes no representations
     about its ownership of improvements to the Schiestl Technology made after
     December 31, 1995.

*Confidential Treatment is requested for the language that has been underscored
or marked. Such language has been deleted from the copy filed with the SEC.

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.
<PAGE>

Treck Assay Xenometrix agrees that within three days of receipt of this letter
     executed by the Parties it will pay to Harvard [***], the minimum
     royalties for 1994 and 1995 on the license agreement between Harvard and
     Xenometrix dated 8-3-92 (the Treck License), plus interest calculated from
     the original payment dates, as provided under the license. Xenometrix
     hereby notifies Harvard that, under the terms of the Treck License as set
     forth in paragraph 8.5 of said License, Xenometrix terminates said License
     and releases all rights it has to the technology addressed by said License.
     Harvard hereby waives the [***] termination fee set forth in paragraph
     8.5 of the Treck License.

Sincerely yours,                        Agreed,

Xenometrix, Inc.                        The President and Fellows of Harvard
                                        College

/s/

Edson D. de Castro                      By:   /s/
Chief Executive Officer
                                 Title: Joyce Brinton, Director Office for
                                        Technology and Trademark Licensing

Date:  1/10/96                                Date:  1/11/96

                                      -2-

*Confidential Treatment is requested for the language that has been underscored
or marked. Such language has been deleted from the copy filed with the SEC.

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.
<PAGE>

                               HARVARD UNIVERSITY
                  OFFICE FOR TECHNOLOGY AND TRADEMARK LICENSING

                   AMENDMENT TO THE LICENSE AGREEMENT BETWEEN

                                 XENOMETRIX INC
                                       AND
                    PRESIDENT AND FELLOWS OF HARVARD COLLEGE

                             DATED JANUARY 18, 1992

The License Agreement executed on January 18, 1992, between President and
    Fellows of Harvard College (HARVARD) and Xenometrix Inc, is hereby amended
    to incorporate into PATENT RIGHTS, HARVARD's ownership interest in the
    jointly owned, International Patent Application No. [***], and its
    priority application, [***].

Upon termination of the License Agreement, or its conversion from exclusive to
    non-exclusive, or upon subsequent removal of the above rights from the
    License Agreement, the parties agree that each may license their respective
    ownership interests in these jointly owned application(s), throughout the
    world, without accounting to the other.

The effective date of this amendment shall be January 21, 1993.

Agreed and accepted:

The President and Fellows              XENOMETRIX, INC.
of Harvard College

          /s/
                                             Signature

     Joyce Brinton, Director Office for
     Technology and Trademark Licensing                                Title

Date:          7/1[?]/9[?]
                                             Date

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.
<PAGE>

                                    Exhibit 2

Entire Patent Applications and Issued Patents, as may be drafted and amended,
     relating to the work of Dr. Robert Schiestl corresponding to:

I.   The Yeast Del assay, including:

         (a)      United States patent 4,997,757 ("Process for Detecting
                  Potential Carcinogens," issued march 5, 1991), and all
                  reissues and extensions thereof;

         (b)      European patent application 324,258 ("Process for Detecting
                  Potential Carcinogens," published July 19,1989) and all
                  Letters Patent which may be granted for the invention(s) of
                  said European patent application, and all extension, renewals,
                  and continuations thereof, including, but not limited to,

                  (i)      France patent 0324258
                  (ii)     Germany patent P3883364.6
                  (iii)    Sweden patent 88312099.0
                  (iv)     Switzerland patent P324258.4
                  (v)      United Kingdom patent 0324258

         (c)      Canada patent 1322943 issued October 12, 1993

II.  The Mammalian Del assay, including United States patent application
     [***] and all Letters Patent of the United States which may be granted
     thereon and all reissues and extensions thereof, and all applications for
     Letters patent which may hereafter be granted for the invention(s) of said
     U.S. patent application in any country or countries foreign to the United
     States, and all extensions, renewals, and reissues thereof.

Non-Profiled Document

*  Material has been omitted pursuant to a request for confidential treatment,
   and such material has been filed separately with the SEC.

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