Document:

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***** Certain information on this page has                      EXHIBIT 10.24
      been omitted and filed separately with the
      Securities and Exchange Commission. Confidential           REDACTED FOR
      treatment has been requested with respect                CONFIDENTIALITY
      to the omitted portions.

                             CONFIDENTIAL TREATMENT
                                   REQUESTED

               The asterisked portions of this document have been
           omitted and are filed separately with the Securities and
                              Exchange Commission

                            COLLABORATIVE AGREEMENT

                                    between

                          INCYTE PHARMACEUTICALS, INC

                                      and

                                 DIADEXUS, LLC
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     This Agreement is entered into as of February 17, 2000 by and between
diaDexus, a Delaware limited liability company ("diaDexus"), having its
principal place of business at 3303 Octavius Drive, Santa Clara, California
95054, and Incyte Pharmaceuticals, Inc., a Delaware corporation ("Incyte"),
having its principal place of business at 3160 Porter Drive, Palo Alto, CA
94304, and shall be retroactive to September 2, 1997, (the "Effective Date").

                                    RECITALS

     WHEREAS Incyte owns or has rights in certain patent rights and know-how
regarding certain high-throughput partial cDNA sequencing, cloning, and data
analysis technologies; and

     WHEREAS, Incyte has compiled and is compiling, and owns certain information
and data regarding certain cDNAs in confidential databases which may be useful
in the study of biological phenomena; and

     WHEREAS, Incyte owns, or has rights in, certain patent rights and know-how
regarding certain genomic DNAs, cDNAs as well as certain of the proteins they
encode; and

     WHEREAS, diaDexus desires to extend, expand, and replace the existing
Collaborative LiveSeq and PathoSeq Agreements between Incyte and diaDexus dated
2 September 1997;

     WHEREAS, diaDexus desires to obtain extended and expanded access to
Incyte's LifeSeq(R) Database Product(s) (as defined below), and to obtain
licenses to use Incyte's patent rights and know-how under the LifeSeq(R)
Database Products, to conduct research and development of diagnostics and
pharmaceuticals, as specified herein.

NOW, THEREFORE, the Parties agree as follows:

1.0 DEFINITIONS

The following terms shall have the following meanings:

1.1  "Access Term": shall mean the period commencing on the Effective Date and
     ending on September 2, 2003, during which diaDexus shall have access to the
     LifeSeq(R) Database Product(s) under the terms and conditions of this
     Agreement.

1.2  "Annotation Information" shall mean the information associated with
     individual cDNAs contained in each and/or all of the LifeSeq(R) Database
     Product(s), as applicable including, but not limited to, tissue expression
     information, homology information, gene cluster identifiers, etc.

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1.3  "Antisense Field of Use" shall mean the treatment or prevention of any
     disease, state or condition in humans by use of one or more
     oligonucleotides or modified oligonucleotides which bind either (i) to mRNA
     to block the translation of mRNA in vivo to inhibit, prevent and/or alter
     protein production, or (ii) to DNA to prevent the transcription of DNA into
     the mRNA copy of the gene in vivo. The Antisense Field of Use does not
     include the sale or license to third parties of Database Information or
     Gene Product(s) as research tools, or the use of Database Information or
     Gene Product(s) to develop database products or services for sale or
     license to third parties.

1.4  "Antisense Product(s)" shall mean oligonucleotides or modified
     oligonucleotides derived from or targeted to Gene Product(s) for use in the
     Antisense Field of Use.

1.5  "cDNA Clone" shall mean an individual plasmid vector and cDNA insert, which
     cDNA insert is usually a partial gene, and not necessarily a full length
     gene.

1.6  "Coding Sequence" shall mean the complete DNA sequence of those regions
     within a gene that encode amino acids, i.e., the DNA sequence that would be
     found between the initiation codon and the stop codon in a full-length cDNA
     clone of mRNA transcribed and spliced from the gene.

1.7  "Database Information" shall mean all or any part of the Annotation
     Information and DNA sequence Information which is contained in each and/or
     all of the LifeSeq(R) Database Product(s), as applicable.

1.8  "Designated Gene Product" shall mean a given Gene Product which is selected
     for research and development, or other use by diaDexus in accordance with
     the terms and conditions of this Agreement, and is "Used by diaDexus", as
     defined below, during the Access Term.

1.9  "diaDexus" shall mean diaDexus, LLC and its Affiliates.

1.10 "diaDexus Affiliates" shall mean any corporation, firm, partnership, or
     other legal entity, which is directly or indirectly owned or under common
     ownership by diaDexus to the extent of which the common stock or other
     equity ownership thereof is one hundred percent (100%) owned by diaDexus;
     provided however, that where local laws require a minimum percentage of
     local ownership, the status of diaDexus Affiliate will be established if
     diaDexus directly or indirectly owns or controls one hundred percent (100%)
     of the maximum ownership percentage that may, under such local laws, be
     owned or controlled by foreign interests.

1.11 "Diagnostic Field of Use" shall mean the use of Designated Gene Products
     for the development, commercialization and use of Validated Markers for (a)
     the diagnosis and/or monitoring of any disease, state or condition in
     humans, (b) the selection of a method of treatment of any disease state or
     condition in humans (including side effects of therapeutic treatments), (c)
     the assessment of prediction of responses in humans to a drug or other
     method of treating a disease, including

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      without limitation the determination of efficacy and the toxicity of
      drug(s), provided, however, that the Diagnostic Field of Use does not
      include the commercialization of multi-gene diagnostic products or
      services (e.g. multi-gene diagnostic products or services) using more
      than twenty (20) Validated Markers, unless such Validated Markers are
      proteins even if not Regulatory Approved. The Diagnostic Field of Use
      does not include the sale or license to third parties of Database
      Information or Gene Product(s) as research tools, or the use of Database
      Information or Gene Product(s) to develop database products or services
      for sale or license to third parties. For the purposes of this Agreement,
      the rights of diaDexus to do diagnostics testing for research purposes
      shall be for rDx Kits and rDx Services as defined in the Collaboration
      and License Agreement among Incyte, diaDexus and Smith Kline Beecham.
      Notwithstanding the foregoing sentence, the Diagnostic Field of Use shall
      include the right to sell or license information or software necessary
      for the analysis or interpretation of tests involving the use of
      Validated Markers.

1.12  "Diagnostic Product(s)" shall mean any product directed to or service
      derived from Gene Product(s) for use in the Diagnostic Field of Use.

1.13  "DNA Sequence Information" shall mean nucleotide sequences incorporated
      into the LifeSeq(R) Database Product(s) provided by Incyte to diaDexus
      pursuant to this Agreement.

1.14  "Drug Product(s)" shall mean compositions of matter which are ligands or
      inhibitors of Gene Product(s). These include small molecules and
      antibodies (including Therapeutic Antibodies) which are agonists, inverse
      agonists, antagonists, and/or modulators of Gene Product(s) for use in
      the treatment of any disease, state or condition in humans; provided,
      however, that Drug Product(s) shall not include Therapeutic Protein
      Product(s) or Antisense Product(s).

1.15  "Full Length Clone" shall mean, with respect to a given gene, a specific,
      purified cDNA Clone developed or acquired by Incyte, containing the
      Coding Sequence of such gene.

1.16  "Full Length Contig" shall mean, with respect to a given gene, DNA
      Sequence Information contained in the LifeSeq(R) Database Product(s) that
      corresponds to the Coding Sequence of such gene.

1.17  "Gene Product(s)" shall mean (i) all Database Information and any cDNA
      Clone(s) corresponding to a given gene, provided to diaDexus in
      accordance with and during the term of this Agreement, and (ii) products
      or materials that are directly developed or directly derived therefrom by
      diaDexus i.e., partial cDNAs, genes, full length cDNAs corresponding
      thereto, RNAs, peptides, polypeptides and proteins encoded thereby.

1.18  "Incyte Know-How" shall mean the information, software, data, biological
      materials and/or other materials consisting of or directly and solely
      relating to Database Information which is (a) proprietary to Incyte
      either at the time of

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     disclosure to diaDexus or at time of Use By diaDexus and (b) not known to
     diaDexus, all to the extent and only to the extent that Incyte has the
     right to grant licenses, immunities or other rights to diaDexus thereunder;
     provided, however, that Incyte Know-How shall exclude Incyte Patent Rights
     and all know-how arising under Incyte Proprietary Programs; and further
     provided that genomic DNA sequence information which is part of the public
     domain or was already Known to diaDexus does not render cDNA Database
     Information non-proprietary or non-confidential except to the extent that
     such genomic DNA sequence information has been specifically and materially
     established by diaDexus as exon region(s) (i) via standard molecular
     biology laboratory techniques, or (ii) through the use of a suitable
     computer algorithm with subsequent confirmation through laboratory
     research, as can be demonstrated by diaDexus.

1.19 "Incyte Patent Rights" shall mean the patents and/or patent applications
     owned or controlled by Incyte which (i) claim the composition of matter of
     Gene Product(s) and/or (ii) arise solely from the generation of Database
     Information and claim the use of Gene Product(s) with respect to
     Product(s), throughout the world, as well as reissues, reexaminations,
     divisionals, provisionals, continuations or continuations-in-part thereof
     or therefor, all to the extent and only to the extent Incyte has the right
     to grant licenses, immunities or other rights thereunder; provided,
     however, that Incyte Patent Rights shall exclude all patent rights arising
     under Incyte Proprietary Programs.

1.20 "Incyte Proprietary Program(s)" shall mean an internal research and
     development program of Incyte which involves investment by Incyte intended
     to develop discoveries, inventions, data or information (whether or not
     patentable) beyond that consisting of Database Information. Incyte
     Proprietary Programs are independent of those services regularly performed
     by Incyte to produce or generate DNA Sequence Information and Annotation
     Information intended to be released to the LifeSeq(R) Database Product(s).

1.21 "Incyte Technology" shall mean, collectively, Incyte Know-How and Incyte
     Patent Rights.

1.22 "Installation Site" shall mean the research facilities of diaDexus, at the
     above specified address.

1.23 "Lead/Product Development" shall mean formal preclinical studies under
     controlled condition, such as Good Laboratory Practice (GLP) conditions.

1.24 "LifeSeq(R) Gold Database" shall mean the version of Incyte's LifeSeq(R)
     Gold database of human Annotation Information, DNA Sequence Information and
     related software and documentation, most recently made available by Incyte
     to its nonexclusive subscribers for that database as of the Effective Date,
     as described in Exhibit B, and all additions, enhancements and
     modifications to that database made by Incyte and provided by Incyte on a
     nonexclusive basis to its subscribers for that database without additional
     charge. In no event, however, shall the foregoing be construed to permit
     Incyte to charge diaDexus for

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       additions, enhancements and modifications to the database that do not
       represent substantial and material increases in such database's
       functionality.

1.25   "LifeSeq(R) Database Product(s)" shall mean the "LifeSeq(R) Gold
       Database, the LifeTools(TM) Product and the PathoSeq(R) Database as
       defined herein in Exhibits B, C, and D.

1.26   "LifeSeq Subscriber" shall mean any organization that is listed in
       Appendix F, which list shall be updated periodically by Incyte.

1.27   "LifeTools(TM) Product" shall mean the version of Incyte's set of
       proprietary software products providing sequence-analysis and
       data-management tools for handling complex genomic information from
       multiple sources most recently made available by Incyte to its
       nonexclusive subscribers for that database as of the Effective Date,
       together with related software and documentation, as described in Exhibit
       C, and all additions, enhancements, and modifications to those software
       products made by Incyte and provided by Incyte on a nonexclusive basis to
       its customers for those software products without additional charge. In
       no event, however, shall the foregoing be construed to permit Incyte to
       charge diaDexus for additions, enhancements and modifications to those
       software products that do not represent substantial and material
       increases in such software products' functionality.

1.28   "Net Sales" shall mean with respect to each given country, invoiced sales
       by diaDexus or it sublicensees on all sales of Product (in final form for
       end use) to an unaffiliated third party (whether an end-user, a
       distributor or otherwise), and exclusive of intercompany transfers or
       sales, less the following deductions from such gross amounts which are
       actually incurred, to the extent that they are reasonable and customary.

       (a)  credits or allowances actually granted for damaged Products,
       returns, recalls or rejections of Product and retroactive price
       reductions or rebates;

       (b)  freight, postage, shipping, customs duties, tariffs, excises and
       insurance charges;

       (c)  normal and customary trade, cash and quantity discounts, allowances
       and credits;

       (d)  sales, value added or similar taxes measured by the billing amount,
       when included in billing;

       (e)  charge back payments and rebates granted to managed health care
       organizations or to federal, state and local governments, their agencies,
       and purchasers and reimbursers or to trade customers;

       (f)  commissions paid to third parties other than sales personnel and
       sale representatives or sales agents; and

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      (g)   rebates (or equivalents thereof) granted to or charged by national,
      state or local governmental authorities in countries other than the
      United States.

      In the event a Product is sold in the form of a Combination Product, Net
      Sales from such Combination Product, for purposes of determining royalty
      payments, shall be determined by multiplying the actual Net Sales of such
      Combination Product during the applicable royalty reporting period, by the
      fraction A/(A+B) where: A is the average sale price of the Product
      contained in the Combination Product: when sold separately by diaDexus or
      sublicensee; and B is the average sale price of the other product(s)
      included in the Combination Product when sold separately by diaDexus or
      sublicensee, in each case during the applicable royalty reporting period
      or if sales of both the Product and/or other products did not occur in
      such period, then in the most recent royalty reporting period in which
      sales of both occurred. In the event that such average sale price cannot
      be determined for both the Product and all other product(s) included in
      the Combination Product, Net Sales for the purpose of determining royalty
      payments shall be calculated by multiplying the Net Sales of the
      Combination Products by the fraction of C/C+D where C is the fair market
      value of the Product and D is the fair market value of all other active
      compounds and/or active ingredients included in the Combination Product.
      In such event Incyte and diaDexus shall negotiate in good faith to arrive
      at a determination of the respective fair market values of the Product and
      all other active compounds and/or active ingredients included in the
      Combination Product. For the purposes of the definition of Net Sales,
      "Combination Product" shall mean a product which comprises two (2) or more
      active ingredients at least one (1) of which is a Product, wherein an
      "active ingredient" is a biologically active ingredient which causes one
      or more of the direct clinical therapeutic effects for which the Product
      is intended (or diagnostic results in the case of a Diagnostic Product),
      and excluding diluents, vehicles, drug delivery systems, adjuvants or
      other ingredients which do not by themselves have such therapeutic
      effect(s).

1.29  "PathoSeq(R) Database" shall mean the version of Incyte's PathoSeq(R)
      database of microbial DNA Sequence Information and related software and
      documentation, most recently made available by Incyte to its nonexclusive
      subscribers for that database as of the Effective Date, as described in
      Exhibit D and all additions, enhancements and modifications to that
      database made by Incyte and provided by Incyte on a nonexclusive basis to
      its subscribers for that database without additional charge. In no event,
      however, shall the foregoing be construed to permit Incyte to charge
      diaDexus for additions, enhancements and modifications to the database
      that do not represent substantial and material increases in such
      database's functionality.

1.30  "Phase III Clinical Trial" shall mean that portion of the clinical
      development program which provides for the continued trials of a specific
      Drug Product, Antisense Product, and/or Therapeutic Protein Product on
      sufficient numbers of patients to establish the safety and efficacy of
      such Drug Product, Antisense Product, and/or Therapeutic Protein Product
      to a standard consistent with that necessary to support Regulatory
      Approval required to market and sell the Drug Product, Antisense
      Product, and/or Therapeutic Protein Product for the

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        applicable indication(s) in any country in the world.

1.31    "Product(s)" shall mean Drug Product(s), Diagnostic Product(s),
        Antisense Product(s) and/or Therapeutic Protein Product(s), singly or
        in combination as applicable.

1.32    "Product Development Milestone" shall mean (i) in the case of a
        small-molecule Drug Product, the successful configuration of an assay
        for drug screening; (ii) in the case of a Therapeutic Antibody Product
        initiation of screening (iii) in the case of a Therapeutic Protein
        Product or Antisense Product, initiation of studies in animals using
        recombinant protein the purpose of which is to provide supporting
        evidence for the efficacy of the Therapeutic Protein Product or
        Antisense Product in an animal model of a human disease.

1.33    "Regulatory Approval" shall mean, with respect to any country in the
        world, applications or approvals of any national, supra-national,
        regional, state or local regulatory agency, department, bureau,
        commission, council or other governmental entity, necessary for the
        lawful manufacture, distribution, use, import, export or sale of
        Product(s) in such country.

1.34    "Research Field of Use" shall mean all internal research applications
        of Gene Product(s), associated with conducting research in the
        Diagnostic Field of Use, the Antisense Field of Use, the Therapeutic
        Field of Use and in the identification, development and
        commercialization of Drug Products. The Research Field of Use does not
        include the sale or license to third parties of Database Information or
        Gene Product(s) as research tools, or the use of Database Information
        or Gene Product(s) to develop database products or services for sale or
        license to third parties.

1.35    "Therapeutic Antibody" shall mean (a) a molecule containing four (4)
        polypeptide chains, consisting of two (2) identical light chains and
        two (2) identical heavy chains that are held together by disulfide
        bonds to form two (2) identical antigen binding sites or (b) any
        combination, fragment or altered form of an antibody containing at
        least one antigen binding site that could be used for a therapeutic
        purpose.

1.36    "Therapeutic Field of Use" shall mean the treatment or prevention of
        any disease, state or condition in humans by any means, (including
        without limitation, gene therapy and Vaccines), excluding the
        Antisense Field of Use. The Therapeutic Field of Use does not include
        the sale or license to third parties of Database Information or Gene
        Product(s) as research tools, or the use of Database Information or
        Gene Product(s) to develop database products or services for sale or
        license to third parties.

1.37    "Therapeutic Protein Product(s)" shall mean any product or service,
        including gene therapy and Vaccines, which uses a protein, peptide or
        polypeptide which is a Gene Product in the treatment or prevention of
        any disease, state or condition in humans, including gene therapy
        products; provided however, that Therapeutic Protein Product(s) does
        not include Antisense Product(s).

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1.38    "Used or Use By diaDexus" shall mean the first use by diaDexus, of
        Database Information or a proprietary cDNA Clone obtained from Incyte
        hereunder, in each case which at the time of such use is either
        included in the Incyte Know-How or the Incyte Patent Rights, and
        provided that such first use by diaDexus meets any or all of the
        following criteria:

        (a) diaDexus requests and obtains from Incyte hereunder such cDNA Clone
        from the LifeSeq(R) Database Product(s) which contains DNA Sequence
        Information that partially or completely codes for a Gene Product; or

        (b) diaDexus uses such DNA Sequence Information to construct,
        synthesize or otherwise obtain a hybridization probe to isolate a
        nucleotide sequence that partially or completely codes for a Gene
        Product (e.g. a cDNA, RNA or genomic clone); or

        (c) diaDexus uses such DNA Sequence Information to synthesize or have
        synthesized a peptide or oligonucleotide (DNA or RNA) whose sequence is
        encoded by a Gene Product; or

        (d) diaDexus uses such DNA Sequence Information or such cDNA Clone in
        the identification of putative exon region(s) in genomic DNA
        sequence(s); or

        (e) such Database Information is specifically disclosed in a diaDexus
        patent or patent application.

1.39    "Vaccines" shall mean a prophylactic or therapeutic agent whose primary
        mode of action is the induction of a humoral and/or cell-mediated immune
        response directed against an antigen.

1.40    "Validated Marker(s)" shall mean Designated Gene Product(s) whose
        significance as indicators of either (a) the cause, history, stage,
        progression or  prognosis of a disease, or (b) an actual or likely
        response to a drug that has been established by significant results
        from analysis of appropriate specimens from human preclinical or
        clinical studies.

1.41    "Valid Claim" shall mean a claim of an issued and unexpired Incyte
        Patent Right which has not been held unenforceable, unpatentable or
        invalid by a decision of a court or governmental body of competent
        jurisdiction, unappealable or unappealed within the time allowed for
        appeal, and which has not been lost through an interference proceeding.

2.0 ACCESS

2.1     Access to LifeSeq(R) Database Product(s)

        Access Grant. Incyte hereby grants to diaDexus, non-exclusive access and
        the right to use the LifeSeq(R) Database Product(s) and Database
        Information at the Installation Site, solely in accordance with the
        terms and conditions of this

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Agreement.

2.1.1     Updated Releases and Updates. During the Access Term, Incyte shall
          provide diaDexus at the Installation Site with data and all updates
          of newly released Database Information, and all updated software
          releases of the LifeSeq(R) DataBase Product(s), that constitute
          LifeSeq(R) Database Products. During the Access Term, Incyte and
          diaDexus may, by mutual written agreement, agree that Incyte shall
          have the right to commence providing updates to the LifeSeq(R)
          Database Product(s) via on-line services via secure connections.

2.1.2     Database and Software Access Plan. diaDexus shall develop and
          implement throughout the Term a Database an Software Access Plan.
          Such plan shall be substantially in the form of Exhibit E and shall
          establish mechanisms to document access to the LifeSeq(R) Database
          Product(s) and assure compliance with the grant of such access.

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2.2  Use Restrictions and Security Requirements

     2.2.1  Ownership. diaDexus hereby acknowledges that (a) Incyte represents
            that it has expended significant resources and efforts to develop
            the LifeSeq(R) Database Product(s) and the Database Information, (b)
            the LifeSeq(R) Database Product(s) represent highly valuable and
            confidential assets, (c) Incyte is willing to grant diaDexus access
            to the LifeSeq(R) Database Product(s) in reliance upon the agreement
            by diaDexus that it shall use commercially reasonable efforts to
            protect the LifeSeq(R) Database Product(s) from unauthorized
            disclosure or use, and (d) the LifeSeq(R) Database Product(s) at all
            times during the term of this Agreement shall remain the sole and
            exclusive property of Incyte.

     2.2.2  Designated CPU's at the Installation Sites. The LifeSeq(R) Database
            Product(s), including the DNA Sequence Information, shall only be
            installed at the Installation Site on the hard disk of up to two (2)
            designated computers and/or file servers whereby additional multiple
            workstation(s) do not contain copy(s) of the LifeSeq(R) Database
            Product(s) installed, other than ephemerally, on the workstation
            hard disk(s). An additional copy of the LifeSeq(R) Database
            Product(s) may reside on the same computer(s) or file server(s)
            provided that this copy is solely used to install and test new
            versions and releases of the LifeSeq(R) Database Product(s). In
            addition, a back-up computer or file server may be designated such
            that a copy of the LifeSeq(R) Database Product(s) may be installed
            on this computer in the event that the primary computer fails. Under
            no circumstances will the LifeSeq(R) Database Product(s), be
            installed on any designated CPU(s) in a manner which would allow
            unauthorized access (e.g. unauthorized third party access via the
            Internet). Remote access to servers and/or workstation(s) by
            diaDexus, is permissible provided that diaDexus complies with
            applicable portions of the Agreement. All other database or software
            is prohibited.

     2.2.3  Permitted Use

            (a)  During the Access Term, diaDexus shall have the right to use
            the LifeSeq(R) Database Product(s) solely for diaDexus' own internal
            use at the Installation Site, in commercially reasonable secure work
            facilities of diaDexus in accordance with the terms and conditions
            of this Agreement and the Database and Software Access Plan.

            (b)  diaDexus shall not disclose the LifeSeq(R) Database Product(s)
            to any third party and shall not disclose or transfer Database
            Information or Incyte Technology, or any portion thereof, to any
            third party except for Database Information and corresponding cDNA
            Clone(s) specifically regarding a Designated Gene Product and in
            each event solely in accordance with the provisions of Sections
            2.3.4 and 5.0

            (c)  Solely for purposes of system integration and/or to facilitate
            data analysis and relational analysis (e.g. extraction of DNA
            Sequence

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            Information for homology analysis by diaDexus search algorithms),
            diaDexus shall have the right to reproduce, adapt, modify and
            prepare derivative works based upon the LifeSeq(R) Database
            Product(s) ("Modifications") solely for internal use by diaDexus in
            their research and development programs. diaDexus shall own any
            such Modifications except for any portions of any LifeSeq(R)
            Database Products contained therein. Any portions of any LifeSeq(R)
            Database Products contained within such Modifications shall be kept
            in confidence in the same manner as, and shall be subject to the
            same terms and conditions as LifeSeq(R) Database Products not
            contained within such Modifications. Incyte shall have no
            obligations to support any such Modifications. diaDexus shall not
            acquire by reason of this subsection (c) any ownership of any
            LifeSeq(R) Database Product(s), any portions thereof or any title
            or rights therein. diaDexus shall not distribute copies of, or
            provide access to, any portions of any LifeSeq(R) Database Products
            contained within such Modifications to any third party without the
            prior written approval of Incyte.

            (d)  Except as expressly set forth herein, or as otherwise agreed
            by Incyte in writing, diaDexus shall not reproduce, adapt, modify,
            prepare derivative works based upon or distribute copies (in
            whatever form whether tangible or intangible, by any means
            whatsoever whether now known or hereafter invented) of the
            LifeSeq(R) Database Product(s), including any substantial portion
            of the Database Information from any field of the LifeSeq(R)
            Database Product(s).

     2.2.4  Designated Gene Product(s). During the Access Term and pursuant to
            the escrow agreement, diaDexus shall make a deposit into escrow of
            the identity of each Gene Product in Use or Used by diaDexus in the
            conduct of research and development or other such use of a Gene
            Product in accordance with the terms and conditions of this
            Agreement.

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2.2.5   Records. diaDexus shall maintain records of access to and use of the
        LifeSeq(R) Database Product(s) and the Database Information, reasonably
        sufficient to enable diaDexus and Incyte to determine, and monitor
        compliance with, their respective rights and obligations under this
        Agreement (e.g., laboratory notebooks and such other records as are
        customary for documenting research and product development activities).
        No more than once a year unless as otherwise agreed in writing, at the
        request and the expense of Incyte, upon at least forty-five (45) days'
        prior notice, diaDexus shall permit an agent (not on a commission basis)
        appointed by Incyte and acceptable to diaDexus to examine these records
        solely to the extent necessary to verify the fulfillment of diaDexus'
        obligations under this Agreement, provided that such agent has entered
        into a confidentiality agreement with diaDexus reasonably satisfactory
        to diaDexus and subject to diaDexus' security procedures. Incyte's agent
        shall only report to Incyte the results of such examination (i.e.,
        whether or not diaDexus is in compliance with its obligations under this
        Agreement), and shall not disclose to Incyte any of diaDexus'
        Confidential Information provided to it or to which it may have access
        during the conduct of the examination.

2.2.6   Loss, Theft, Unauthorized Disclosure or Use. diaDexus shall promptly
        notify Incyte of any loss, theft or unauthorized disclosure or use of
        the LifeSeq(R) Database Product(s) or the Database Information which
        comes to diaDexus' attention.

2.2.7   Termination of the Access Term. Upon termination or expiration of the
        Access Term with respect to the applicable LifeSeq(R) Database
        Product(s), diaDexus, at its election:

        (a) shall have the option of extending the term of such LifeSeq(R)
        Database Product(s) subscription or individual database module thereof
        under terms demonstrably consistent with, and comparable to, those
        secured by comparable users of the LifeSeq(R) Database Product(s) at the
        time of extension; or

        (b) shall discontinue use of such LifeSeq(R) Database Product(s) and
        Database Information, and remove such LifeSeq(R) Database Product(s)
        from the Installation Site, and promptly return to Incyte, or upon
        Incyte's written instruction destroy, all portions and copies of such
        LifeSeq(R) Database Product(s) and the Database Information; except for
        that certain Database Information specific to Designated Gene Product(s)
        which are the subject of one or more of the licenses granted to diaDexus
        under Article 3.0 and/or extended pursuant to Section 7.2 below.

                                 Page 13 of 43
<PAGE>   14
               Upon expiration of the Access Term (and any extension thereto),
               diaDexus agrees to perform with Incyte a mutually acceptable
               final accounting of those Designated Gene Product(s) which are
               subject to one or more of the licenses granted to diaDexus under
               Article 3.0 below.

     2.2.8     Notification of Clinical Development. diaDexus agrees to keep
               Incyte reasonably informed of all Product(s) resulting from the
               use of the LifeSeq(R) Database Product(s), including notification
               when a given Product candidate has been designated for clinical
               development according to appropriate diaDexus procedures. All
               information provided by diaDexus to Incyte pursuant to this
               Section 2.3.8 shall be treated as diaDexus' Confidential
               Information.

     2.2.9     Reagents. Until September 2, 2005, upon request, diaDexus shall
               provide to Incyte, as may be reasonably available to it, research
               reagents developed by or on behalf of diaDexus from the use of
               Incyte Technology. Incyte shall reimburse diaDexus for the actual
               costs of producing such reagents.

3.0 LICENSE AND OPTION GRANTS

3.1  Non-Exclusive Licenses Under Incyte Technology for Research Field of Use
     and Drug Product(s). Incyte hereby grants to diaDexus a worldwide,
     non-exclusive license (with a right to sublicense as provided in Section
     3.6) under Incyte Technology to conduct research in the Research Field of
     Use and with respect to Designated Gene Product(s) to discover, develop,
     make, have made, use, offer to sell, sell, import, export and distribute
     Drug Product(s) in the Therapeutic Field of Use; provided however, that
     with respect to the Research Field of Use, such grant does not include the
     right to sell Gene Product(s). The term of such license under this Section
     is subject to Section 7.2. Upon diaDexus' achievement of the milestones set
     forth in Section 4.2 and the accompanying Table 4.2, diaDexus shall pay to
     Incyte the applicable fees.

3.2  Non-Exclusive Know-How License - Diagnostic, Antisense, and Therapeutic
     Protein Products. Incyte hereby grants to diaDexus a worldwide,
     non-exclusive license (with a right to sublicense as provided in Section
     3.6) under Incyte Know-How with respect to Designated Gene Product(s) to
     discover, develop, make, have made, use, offer to sell, sell, import,
     export and distribute Diagnostic Product(s) in the Diagnostic Field of Use,
     and/or Antisense Product(s) in the Antisense Field of Use, and/or
     Therapeutic Protein Product(s) in the Therapeutic Field of Use. The term of
     such license is subject to Section 7.2. Upon diaDexus' achievement of the
     milestones set forth in Section 4.2 and the accompanying Table 4.2,
     diaDexus shall pay to Incyte the applicable fees.

                                 Page 14 of 43
<PAGE>   15
3.3  Non-Exclusive License under Incyte Patents in the Diagnostics Field of Use.
     During the Access Term and upon Incyte's receipt of: (i) written notice of
     election to license a Designated Gene Product under Incyte Know-How or
     Patent Rights, Incyte grants to diaDexus a worldwide, non-exclusive license
     (with the right to sublicense as provided in Section 3.6), under Incyte
     Patent Rights covering such Designated Gene Product to discover, develop,
     make, have made, use, sell and import Diagnostic Product(s) in the
     Diagnostics Field of Use. The grant and term of all licenses granted under
     this Section 3.3 are subject to Section 7.2.

3.4  Option to Exclusive Patent License(s) - Therapeutic Field of Use, LifeSeq
     Gold.

     3.4.1     Therapeutic Protein Product(s).

               (a)  Option Grant. With respect to each Designated Gene Product
               which diaDexus identifies pursuant to Section 3.4.1(b) and pays
               the applicable option fee to Incyte pursuant to Section 3.4.1(c),
               and subject to the provisions of Section 3.5, Incyte hereby
               grants to diaDexus an option, exercisable by diaDexus at any time
               during the applicable option period, to obtain a perpetual,
               world-wide, exclusive license under the Incyte Patent Rights
               covering the Designated Gene Product or the use of such
               Designated Gene Product to discover, develop, make, have made,
               use, offer to sell, sell, import, export and distribute
               Therapeutic Protein Product(s) in the Therapeutic Field of Use
               (the "Therapeutic Option"). Notwithstanding the foregoing, not
               more than twenty (20) Designated Gene Product(s) shall be subject
               to a Therapeutic Option at any one time.

               (b)  Option Notice. Subject to the provisions of Section 3.5,
               prior to the expiration of the Access Term, diaDexus may identify
               each designated Gene Product from the LifeSeq(R) Gold database
               which shall be subject to the Therapeutic Option solely by giving
               Incyte express written notice specifying such Designated Gene
               Product.

               (c)  Option Fee. With respect to each Designated Gene Product
               within the LifeSeq(R) Database Product(s), (i) the, "Therapeutic
               Option Fee" shall be ******                                     ,
               (ii) the option period shall be three (3) months from the date of
               written notice by diaDexus to Incyte specifying that such
               Designated Gene Product shall be subject to the Therapeutic
               Option and (iii) diaDexus may extend the Therapeutic Option for a
               given Designated Gene Product for up to three (3) additional
               three-month periods at the same Therapeutic Option Fee, by
               providing Incyte ten (10) business days written notice of such
               extension, accompanied by payment of the Therapeutic Option Fee,
               prior to the expiration of then-current three-month option
               period.

***** Certain information on this page has been omitted and filed separately
      with the Securities and Exchange Commission. Confidential treatment has
      been requested with respect to the omitted portions.

                                 Page 15 of 43
<PAGE>   16
               (d)  License Exercise and Grant. Subject to the provisions of
               Section 3.5, diaDexus may exercise the Therapeutic Option with
               respect to any Designated Gene Product which is subject to a
               Therapeutic Option solely by giving Incyte express notice of
               exercise, specifying such Designated Gene Product to which the
               license shall apply, and by paying to Incyte a license fee of
               ******                prior to the expiration of the applicable
               option period. Upon Incyte's timely receipt of notice of
               diaDexus' exercise and payment of the applicable license fee with
               respect to such Designated Gene Product, and subject to the
               provisions of Section 3.5, Incyte thereby grant to diaDexus a
               perpetual, world-wide, exclusive license, with a right to
               sublicense, under the Incyte Patent Rights covering such
               Designated Gene Product or the use of such Designated Gene
               Product to discover, develop, make, have made, use, offer to
               sell, sell, import, export and distribute such Designated Gene
               Product as a Therapeutic Protein Product(s) in the Therapeutic
               Field of Use. Any such sublicense shall be in writing and shall
               impose obligations on the sublicense that are consistent with
               those applicable to diaDexus under this Agreement. The grant and
               term of such license is subject to Section 7.2.

     3.4.2     Antisense Field of Use.

               (a)   Option Grant. With respect to each Designated Gene Product
               from the LifeSeq(R) Gold database which diaDexus identifies
               pursuant to Section 3.4.2(b) and for which it pays the applicable
               option fee to Incyte pursuant to Section 3.4.2(c) and subject to
               the provisions of Section 3.5, Incyte hereby grants to diaDexus
               an option, exercisable by diaDexus at any time during the
               applicable option period, to obtain a perpetual, world-wide
               exclusive license under the Incyte Patent Rights covering the
               Designated Gene Product or the use of the Designated Gene Product
               to discover, develop, make, have made, use, offer to sell, sell,
               import, export and distribute Antisense Product(s) in the
               Antisense Field of Use (the "Antisense Option"). Notwithstanding
               the foregoing, not more than twenty (20) Designated Gene
               Product(s) shall be subject to an Antisense Option at any one
               time.

               (b)  Option Notice. Subject to the provisions of Section 3.5,
               prior to the expiration of the Access Term, diaDexus may identify
               each Designated Gene Product which shall be subject to the
               Antisense Option solely by giving Incyte express written notice
               specifying such Designated Gene Product.

               (c)  Option Fee. With respect to each Designated Gene Product
               within the LifeSeq(R) Database Product(s), the Antisense Option
               Fee shall be ******                      , and the option period
               shall be one (1) year from the date of written notice specifying
               that such Designated Gene Product shall be subject to the
               Antisense Option.

               (d)  License Exercise and Grant. Subject to the provisions of
                    Section 3.5,

***** Certain information on this page has been omitted and filed separately
      with the Securities and Exchange Commission. Confidential treatment has
      been requested with respect to the omitted portions.

                                 Page 16 of 43
<PAGE>   17
          diaDexus may exercise the Antisense Option with respect to any
          Designated Gene Product which is subject to an Antisense Option
          solely by giving Incyte express notice of exercise, specifying such
          Designated Gene Product to which the license shall apply, and by
          paying to Incyte a license fee of ****** prior to the expiration of
          the applicable option period. Upon Incyte's timely receipt of notice
          of diaDexus' exercise and payment of the applicable license fee with
          respect to such Designated Gene Product, and subject to provisions of
          Section 3.5, Incyte thereby shall grant to diaDexus a perpetual,
          world-wide, exclusive license, with a right to sublicense, under the
          Incyte Patent Rights covering such Designated Gene Product to
          discover, develop, make, have made, use, offer to sell, sell, import,
          export and distribute such Designated Gene Product as an Antisense
          Product(s) in the Antisense Field of Use. Any such sublicense shall be
          in writing and shall impose obligations on the sublicensee that are
          consistent with those applicable to diaDexus under this Agreement. The
          grant and term of such license is subject to Section 7.2.

3.4.3     Development Obligations. diaDexus agrees to use reasonable diligent
          efforts to pursue the development, Regulatory Approval and commercial
          exploitation of Product(s) pursuant to any exclusive license granted
          by Incyte hereunder with respect to a Designated Gene Product.
          diaDexus' efforts shall be consistent with that applied by diaDexus
          towards its other products with similar commercial potential, value,
          and status. If diaDexus fails, abandons or suspends the development or
          commercialization (including reasonable efforts to sublicense) of any
          Product(s) with respect to any Designated Gene Product under an
          exclusive license as provided in Section 3.4.1 or 3.4.2, then Incyte
          shall have the right, in its sole discretion to terminate the
          respective exclusive license upon writing notice to diaDexus. In the
          event of such termination, diaDexus shall grant Incyte a perpetual
          worldwide, exclusive license to all diaDexus know-how and interest in
          such Designated Gene Product(s) (including those of diaDexus
          Affiliate). However, Incyte, its licensee or assignee (as the case may
          be) shall be obligated to make the royalty payments set forth in
          Section 4.2, as applicable to exclusive Therapeutic License or
          exclusive Antisense License, to diaDexus in the same manner as
          diaDexus would have paid to Incyte.

3.4.4     Notwithstanding anything to the contrary herein, with respect to the
          PathoSeq(TM) database, Incyte grants diaDexus no rights under Incyte
          Technology to diaDexus to obtain any exclusive licenses or any
          Therapeutic Options under this Agreement.

***** Certain information on this page has been omitted and filed separately
      with the Securities and Exchange Commission. Confidential treatment has
      been requested with respect to the omitted portions.

                                 Page 17 of 43
<PAGE>   18
3.5 Limitations on Patent Licenses

    3.5.1 Reservation of Rights

          (a) For any Designated Gene Product which is the subject of an
          exclusive option or exclusive license in the Therapeutic Field of Use
          or Antisense Field of Use under Section 3.4, Incyte shall use prompt
          and diligent efforts to make an annotation in the LifeSeq(R)
          Database Product(s) regarding such exclusive option or exclusive
          license, without specifying the identity of the licensee.

          (b) Incyte reserves the right under the Incyte Technology (i) to
          satisfy its obligations under this Agreement, (ii) to discover,
          develop, make, have made, use and sell Gene Products and Products in
          all fields of use outside the scope of an exclusive patent option or
          an exclusive patent license granted to diaDexus under Section 3.4
          above, and (iii) to grant licenses to third parties to discover,
          develop, make and use and sell Gene Products, and Products in all
          fields of use outside the scope of an exclusive patent option or an
          exclusive patent license granted to diaDexus under Section 3.4 above.

          (c) With respect to any proprietary cDNA Clone provided to diaDexus
          under Section 3.4 above, Incyte reserves the right under the Incyte
          Technology at any time to (a) release such cDNA Clone to an Incyte
          database made available to subscribers by Incyte on a nonexclusive
          basis, and/or (b) to provide such cDNA Clone to any third party;
          provided, however, that such cDNA Clone is provided to a third party
          under a license grant which is outside the scope of the exclusive
          patent option or the exclusive patent license granted to diaDexus
          under Section 3.5 above.

    3.5.2 Third Party Obligations. It is understood by diaDexus that exclusive
          option(s) and/or exclusive license(s) are offered to all LifeSeq
          subscribers on a 'first-come, first-served' basis.

                                 Page 18 of 43
<PAGE>   19
3.5.3     Incyte's Right to Unlicensed Gene Products. Notwithstanding anything
          to the contrary in this Agreement, with respect to Gene Product for
          which Incyte has applied for and obtained issued or granted claim(s)
          under Incyte Patent Rights, LifeSeq subscribers such as diaDexus have
          the right to acquire exclusive license to such Gene Products under
          the provisions of Section 3.4 herein; provided, however, that (i) as
          early as six (6) months following the date of issuance of such patent
          claim(s), but (ii) in no event less than twelve (12) months following
          the commencement of the Access Term (except that such 12-month period
          shall not apply to any such patent claim(s) that have been issued for
          more than three (3) years), Incyte may, in its discretion, elect by
          written notice to diaDexus, to retain exclusive rights under Incyte
          Patent Rights for the commercial development of Therapeutic Protein
          Products in the Therapeutic Field of Use and/or for Antisense Products
          in the Antisense Field of Use which diaDexus shall not have, prior to
          such written notice, obtained an exclusive option or exclusive
          license to such Incyte Patent Rights for the Therapeutic Field of Use
          of Antisense Field of Use, as applicable. In no event, however, shall
          this Section 3.5.3 limit diaDexus' non-exclusive rights to do
          research and develop and commercialize Drug Products and Diagnostic
          Products under Sections 3.1, 3.2 and 3.3 of this Agreement.

3.6       Sublicensing: The parties agree that brokerage of Database
          Information or Incyte Technology by diaDexus is not permitted.
          Therefore:

          (a) Incyte explicitly withholds from this Agreement the right by
          diaDexus to use or offer to use LifeSeq(R) Database Product(s) or
          Database Information or any portion thereof, in any relationship with
          a third party that (i) is focused solely on the use and interpretation
          of the LifeSeq(R) Database Product(s) or Database Information and/or
          (ii) consists of the provision by diaDexus of a database of DNA
          sequence information to a third party under arrangements comparable in
          nature to those embodied in this Agreement. diaDexus shall, however,
          be permitted to use LifeSeq(R) Database Product(s) and Database
          Information for corporate research and development collaborations with
          a LifeSeq(R) Subscriber, only for as long as such collaborator is a
          LifeSeq Subscriber.

                                 Page 19 of 43
<PAGE>   20
          (b)  Sublicensing of Drug Product(s), Antisense Product(s), and
          Therapeutic Protein Product(s).  On an individual Drug
          Product-by-Drug Product, Antisense Product by Antisense Product basis
          and Therapeutic Protein by Therapeutic Protein Product basis,
          diaDexus may only license to a LifeSeq Subscriber, except as
          otherwise provided in 3.4.1(d) and 3.4.2(d) with respect to exclusive
          licenses granted the rights to such Product(s) developed by diaDexus.
          diaDexus shall be responsible for all payments and royalties due to
          Incyte under Article 4.0 hereunder for such sublicense, except the
          Lead Development payment, for such Product, after such Product has
          been licensed to a LifeSeq Subscriber.

          (c)  Sublicensing Diagnostic Product(s) to Third Parties.  Subject to
          the provisions of Section 5.2, on an individual Diagnostic
          Product-by-Diagnostic Product basis, diaDexus may sublicense,
          (without the right to further sublicense) to any third party, the
          rights to Designated Gene Product(s) and the Incyte Database
          Technology relating thereto, on a non-exclusive basis, in order to
          develop, make, use, offer to sell, import, export and distribute such
          Diagnostic Products granted under this Article 3.0; provided,
          however, that without the prior written consent of Incyte, no
          sublicense of Incyte Technology will be granted to any third party in
          the absence of a corresponding license of rights to a given
          Diagnostic Product discovered, researched and under bona fide product
          development by diaDexus, and the license of patent rights pertaining
          thereto owned by, licensed to or controlled by diaDexus; and further
          provided that each sublicense has a grant which is consistent with
          the terms herein and diaDexus shall be responsible for payments and
          royalties under such sublicenses due to Incyte under Article 4.0
          pursuant to the terms and conditions of this Agreement.

                                 Page 20 of 43
<PAGE>   21
3.7  Supply of cDNA Clones. Upon the written request of diaDexus and subject to
     the grant of license rights as described in Section 3.1 and 3.2, Incyte
     shall provide to diaDexus, one or more isolated cDNA Clones from the
     LifeSeq(R) Database Product(s) under the following terms and conditions:

     Shipments usually occur within twelve (12) business days of the receipt of
     the order. For this service, a fee of ***** per verified clone will be
     payable in cases where Incyte has on hand a previously-verified clone, or
     in cases where diaDexus agrees to accept an alternate clone that Incyte has
     previously verified. If Incyte does not have on hand a previously-verified
     clone requested by diaDexus, diaDexus may request that Incyte attempt to
     sequence and verify a clone, at a cost of ***** per clone, provided that
     although Incyte shall use professional skill and care in its efforts, the
     results of any such attempt to sequence and verify a clone in that case
     will be provided on an "AS IS" basis. diaDexus agrees to submit any
     payments due within thirty (30) days from receipt of invoice from Incyte in
     reasonably detailed form regarding such clone supply.

     diaDexus agrees that such cDNA Clone(s) are provided to diaDexus on a
     nonexclusive basis and subject to any license(s) granted under Article 3.0.

3.8  No rights to use any Database Information or Incyte Technology for genetic
     analyses of differences among individuals which are single nucleotide
     polymorphisms (SNPs).

4.0 SCHEDULE OF PAYMENTS; ROYALTIES

4.1  Service Fee(s).

     During the first year of the Access Term, Incyte agrees to provide diaDexus
     with library construction, microarray and sequencing services under
     Incyte's commercial terms and conditions for comparable services. diaDexus
     agrees to pay the balance of the original Five Million Dollars ($5,000,000)
     in the Collaboration Agreement for sequencing services, which shall be
     payable in arrears in four (4), three (3) month installments each payable
     prior to the last day of each calendar quarter, the first such quarter
     ending on March 31, 2000. Any portion of said balance remaining unapplied
     at the end of each three (3) month installment shall be forfeited by
     diaDexus and shall become the property of Incyte. In addition, such fees
     are non-refundable, non-cancelable, non-creditable, except as provided
     herein, and are not subject to any carry over to any other agreement
     between diaDexus and Incyte.

4.2  Milestone Payments and Royalties. Contingent on the following events, and
     subject to Sections 4.6 and 4.7, the additional payments and royalties
     listed in Table 4.2 shall be paid by diaDexus (within thirty (30) days of
     such event) to Incyte for each Product(s).

Table 4.2

***** Certain information on this page has been omitted and filed separately
      with the Securities and Exchange Commission. Confidential treatment has
      been requested with respect to the omitted portions.

                                 Page 21 of 43

<PAGE>   22
<TABLE>
<CAPTION>
                                            Non-Exclusive    Non-Exclusive
                                            License(s)       License(s)
                                            under Incyte     under Incyte
                  Non-Exclusive             Know-How -       Know-How or            Exclusive        Exclusive
                  License(s)                Therapeutic      Incyte Patent          Therapeutic      Antisense
                  under Incyte              Protein &        Rights -               License(s)       License(s)
                  Technology -              Antisense        Diagnostic             under Incyte     under Incyte
                  Drug Products             Products         Product                Patent Rights    Patent Rights
                  (Section 3.1)             (Section 3.2)    (Sections 3.2, 3.3)    (Section 3.4.1)  (Section 3.4.2)
------------------------------------------------------------------------------------------------------------------------
<S>               <C>                       <C>              <C>                    <C>              <C>
Gene Product      *****                     *****            none                   *****            *****
License Fee
See in (a)
below.
------------------------------------------------------------------------------------------------------------------------
Option Fee                                                                          ***** for one    ***** for one
under Incyte                                                                        three month      year
Patent Rights                                                                       period.
for exclusivity                                                                     renewable up to
                                                                                    3 times
------------------------------------------------------------------------------------------------------------------------
License Fee                                                  none                   *****            *****
under Incyte
Patent Rights
------------------------------------------------------------------------------------------------------------------------
Lead              *****                     *****                                   *****            *****
Development
Payment;
See fn.'s (b)
& (f) below
------------------------------------------------------------------------------------------------------------------------
IND               *****                     *****            none                   *****            *****
(or equivalent)
filing payment;
see fn.'s (c),
(f) and (i)
below
------------------------------------------------------------------------------------------------------------------------
Phase III         *****                     *****                                   *****            *****
Clinical Trials
Payment;
See fn.'s (d)
& (f) below
------------------------------------------------------------------------------------------------------------------------
Regulatory        *****                     *****            none                   *****            *****
Approval
Payment;
See fn.'s (e)
& (f) below
------------------------------------------------------------------------------------------------------------------------
</TABLE>

***** Certain information on this page has been omitted and filed separately
      with the Securities and Exchange Commission. Confidential treatment has
      been requested with respect to the omitted portions.

                                 Page 22 of 43
<PAGE>   23
<TABLE>
<CAPTION>
                                                 Non-Exclusive    Non-Exclusive
                                                 License(s)       License(s)
                                                 under Incyte     under Incyte
                             Non-Exclusive       Know-How-        Know-How or            Exclusive           Exclusive
                             License(s)          Therapeutic      Incyte Patent          Therapeutic         Antisense
                             under Incyte        Protein &        Rights -               License(s)          License(s)
                             Technology -        Antisense        Diagnostic             under Incyte        under Incyte
                             Drug Products       Products         Product                Patent Rights       Patent Rights
                             (Section 3.1)       (Section 3.2)    (Sections 3.2, 3.3)   (Section 3.4.1)     (Section 3.4.2)
----------------------------------------------------------------------------------------------------------------------------
<S>                          <C>                 <C>              <C>                     <C>                <C>
Royalties on Net Sales       *****               *****            *****                   *****              *****
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

Notes: All fees, payments and royalties are to be made in United States dollars.

(a)   Paid within thirty (30) days of achieving Product Development Milestone.

(b)   Paid within thirty (30) days of taking Product into Lead/Product
      Development on a Gene Product-by-Gene Product basis for each Product that
      is taken into Lead/Product Development.

(c)   Paid within thirty (30) days after the filing of the first investigative
      New Drug application ("IND") with the United States Food and Drug
      Administration ("FDA") or foreign equivalent by diaDexus or a diaDexus
      sublicensee with respect to each given Product.

(d)   Paid within thirty (30) days after the first initiation of Phase III
      Clinical Trials by diaDexus or a diaDexus sublicensee with respect to
      each given Product.

(e)   Paid within thirty (30) days after the first Regulatory Approval granted
      to diaDexus or a diaDexus sublicensee for each given Product.

(f)   Single Payment Obligation. Each of the above milestone payments shall be
      payable once with respect to Products relating to a given Designated Gene
      Product, upon the first occurrence of the indicated milestone for such
      Product, and no additional payments shall be due upon subsequent or
      repeated achievement of the same milestone for a different Product in the
      same Field of Use under the same Designated Gene Product license. For
      example, if diaDexus or its sublicensee develops two Drug Products
      relating to the same Designated Gene Product and both such Drug Products
      achieve a given

***** Certain information on this page has been omitted and filed separately
      with the Securities and Exchange Commission. Confidential treatment has
      been requested with respect to the omitted portions.

                                 Page 23 of 43
<PAGE>   24
      milestone, the applicable payment will only be made once upon the first
      such occurrence. Notwithstanding the foregoing, Diagnostic Products shall
      be subject to Section 3.3

(g)   The above % of Net Sales royalty will be paid with respect to each
      Product in each given country where, but for the patent license(s)
      granted herein, such sales would otherwise infringe a Valid Claim of the
      Incyte Patent Rights.

4.3   Payment Obligation. The foregoing payments under Section 4.2 will accrue
      or become due or payable with respect to Drug Product(s), Antisense
      Product(s), Therapeutic Protein Product(s), and/or Diagnostic Product(s)
      which are:

      (a)   materially based on or use materially or are derived by material
      use of that which would constitute Incyte Know-How at the time of Use By
      diaDexus; or

      (b)   are covered by a Valid Claim of Incyte Patent Rights and/or which
      Product is identified or discovered by a drug discovery process (e.g.
      compound screening) which utilizes a Gene Product which is covered by a
      Valid Claim of Incyte Patent Rights.

      If a Product would be covered by more than one of the licenses referred
      to in Section 4.2 (e.g., where an IND is filed with respect to a Product
      that is covered by two or more of the licenses granted to diaDexus under
      Section 3.1 through 3.4), only the largest of the milestone payments or
      royalties called for in such applicable Sections shall be payable, and
      there will be no multiple royalties due under such Section 4.2.

4.4   Duration of Payment Obligation. Royalty obligations with respect to each
      Product under any portion of this Article 4.0 shall terminate on a
      country-by-country and product-by-product basis on the later of (i) ten
      (10) years after the first country-wide launch of each Product in each
      country or (ii) expiration of the last-to-expire Valid Claim which covers
      such product in each country.

      Upon termination of the royalty payment obligation, diaDexus shall
      thereafter have in perpetuity a royalty-free license to make, use and
      sell such Product in the specified field(s) of use without any accounting
      to Incyte.

                                 Page 24 of 43
<PAGE>   25

4.5  Mode of Payment.  For purposes of determining when a sale of a
     royalty-bearing Product occurs, the sale shall be deemed to occur on the
     date of the invoice to the purchaser of the Product. All royalty payments
     shall be made within ninety (90) days of the end of each calendar quarter
     in which the sale was made. Any royalty payment that is not paid on or
     before the date such payment is due under this Agreement shall bear
     interest to the extent permitted by applicable law, at two percentage
     points over the prime rate of interest as reported by Bank of America NT&SA
     in San Francisco, California, from time to time, calculated on the number
     of days such payment is delinquent. Royalties shall be deemed payable by
     the entity making the Net Sales from the country in which earned in local
     currency and subject to foreign exchange regulations then prevailing.
     Royalty payments shall be made to Incyte in United Sates dollars. The rate
     of exchange to be used in any such conversion from the currency in the
     country where such Net Sales are made shall be the rate of exchange used by
     diaDexus for reporting such sales for United States financial statement
     purposes.

4.6  Records Retention. diaDexus agrees to keep for at least three (3) years
     records of all sales of Products in sufficient detail to permit Incyte to
     confirm the accuracy of diaDexus' royalty calculations. Once a year, at the
     request and the expense of Incyte, upon at least forty-five (45) days'
     prior written notice, diaDexus shall permit a nationally recognized,
     independent, certified public accountant appointed by Incyte and acceptable
     to diaDexus, to examine these records solely to the extent necessary to
     verify such calculations, provided that such accountant has entered into a
     confidentiality agreement with diaDexus substantially similar to the
     confidentiality provisions of this agreement, limiting the use and
     disclosure of such information to purposes germane hereto. The examination
     shall be limited to pertinent books and records for any year ending not
     more than twenty-four (24) months prior to the date of such request.
     diaDexus may designate competitively sensitive information which such
     auditor may not disclose to Incyte, provided, however, that such
     designation shall not encompass the auditor's conclusions. The accounting
     firm shall disclose to Incyte only whether the royalty reports are correct
     or incorrect and the specific details concerning any discrepancies. No
     other information shall be provided to Incyte. If such accounting firm
     correctly concludes that there was an underpayment of royalties by five
     percent (5%) or more, diaDexus shall pay all costs of such examination. If
     such accounting firm concludes that additional royalties were owned, the
     additional royalties shall be paid within thirty (30) days of the date
     Incyte delivers to diaDexus such accountant's written report so concluding.
     Any overpayments by diaDexus will at diaDexus' option be credited against
     future royalty obligations or paid to diaDexus within ten (10) days of
     discovery of such overpayment. This Section shall survive the cessation of
     payment obligations under Section 4.3 for a period of two (2) years.

                                 Page 25 of 43
<PAGE>   26
4.7  Shipping. diaDexus shall pay, for its own account, any shipping, freight,
     mailing expenses and the like payable to third parties not affiliated with
     Incyte and arising out of obtaining tangible materials under this Agreement
     and the transactions contemplated herein.

4.8  Payments and Taxes. Unless otherwise provided in this Agreement, diaDexus
     agrees to submit payments for services and materials provided by Incyte
     within thirty (30) days from receipt of invoice. All payments hereunder
     shall be made by bank wire transfer in immediately available funds to such
     account as Incyte shall designate in writing from time to time. All
     payments by diaDexus to Incyte under this Agreement shall be paid from a
     diaDexus account in a banking institution located in the United States.

     diaDexus shall pay, or reimburse Incyte, as appropriate, and indemnify
     Incyte against any sales, use, value added/ad valorem, surtax and personal
     property taxes, customs duties, registration fees and the like arising out
     of the provision of services and materials by Incyte to diaDexus under this
     Agreement. All turnover taxes, income taxes, gross revenues and profits
     taxes, and other taxes based on Incyte's income (other than those covered
     by the preceding sentence) levied on account of the royalties, milestone
     payments, license fees and other payments accruing to Incyte under this
     Agreement shall be paid by Incyte.

     If at any time, any jurisdiction within the given country requires the
     withholding of income taxes or other taxes imposed upon royalty payments
     set forth in this Article 4, diaDexus shall make such withholding payments
     as required and subtract such withholding payments from the royalty
     payments set forth in this Article 4, or if applicable, Incyte will
     promptly reimburse diaDexus or its designee(s) of the amount of such
     payments. diaDexus shall provide Incyte with documentation of such
     withholding and payment in a manner that is satisfactory for purposes of
     the U.S. Internal Revenue Service. They payments to be made by diaDexus
     under Section 4.1 include amounts attributable to such items as training
     manuals and the electronic media used for data transfer (e.g.; CD's).
     Payments attributable to such items and the clone transfer fees provided
     for under Section 3.7 are or may be subject to sales tax.

                                 Page 26 of 43
<PAGE>   27
5.0 CONFIDENTIALITY AND PUBLICATION

5.1  Confidentiality. The Parties acknowledge that during the course of this
     Agreement they will each receive from the other information which is
     proprietary, confidential and of commercial value to the disclosing party.
     For purposes of this Agreement, "Confidential Information" shall mean
     scientific, technical or business information belonging to the disclosing
     party, which the disclosing party marks "Confidential" if disclosed in
     writing, or which the disclosing party identifies as confidential at the
     time of any visual or oral disclosure and promptly confirms in writing to
     have been confidential. Except to the extent expressly authorized by this
     Agreement, the parties agree that, for the Access Term and for five (5)
     years thereafter, except in the case of DNA sequence information, for which
     such period shall be perpetual, the receiving party shall keep confidential
     and shall not publish or otherwise disclose and shall not use for any
     purpose (except those expressly permitted under this Agreement) any
     Confidential Information furnished to it by the other party pursuant to
     this Agreement, and regardless of the medium on which it is provided,
     including know-how, except to the extent that it can be established by the
     receiving party by competent proof that such information:

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

     (b)  was generally known 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 other than through any act or omission
     of the receiving party in breach of this Agreement;

     (d)  was subsequently lawfully disclosed to the receiving party by a third
     party having no confidentiality obligations to the disclosing party with
     respect thereto;

     (e)  was independently discovered or developed by the receiving party
     without the use of the other party's Confidential Information, and such
     independent discovery or development can be documented by the receiving
     party's tangible records created at the time of such independent
     development.

                                 Page 27 of 43
<PAGE>   28
     Each party may disclose the others Confidential Information to the extent
     such disclosure is reasonably necessary in (i) filing and prosecuting
     patent applications, and maintaining patents, (ii) prosecuting or
     defending litigation, (iii) responding to any properly served subpoena or
     compulsory process requiring the disclosure of information to any
     government entity however the disclosing party shall provide the party
     whose information will be disclosed with as much notice as is commercially
     reasonably practical to allow such other party with the opportunity to
     quash such subpoena or compulsory process, or (iv) complying with
     applicable governmental laws and regulations governing the testing,
     approval, manufacture and marketing of Products; provided, however, that
     prior to disclosure of the other party's Confidential Information it will
     give reasonable advance notice to such party, will only disclose the
     minimum Confidential Information necessary, and will use reasonable
     efforts to secure confidential treatment of such Confidential Information.

     It is understood that patent applications are filed with the expectation
     and intention that such applications will, upon publication of the
     applications and/or issuance of the resulting patents, result in the
     publication or public accessibility of all information disclosed in the
     underlying application and prosecution documents; provided, however, that
     publication of such Information shall not affect either party's ongoing
     obligations to the other party with respect to Information not so
     disclosed.

5.2  Disclosure; Third Party Access. Except as provided for in Sections 2.3.4
     and 3.6 above, Confidential Information of Incyte will not be published or
     disclosed in any form without the written authorization of Incyte.

     (a)  diaDexus and diaDexus' sublicensees may publish their own scientific
     results and the conduct of their work within the scope of the licenses
     granted under this Agreement, provided, however, that:

          (i) any such publication by diaDexus or its sublicensees that would
     disclose Confidential Information of Incyte shall require the prior written
     consent of Incyte, which consent will not be unreasonably withheld or
     delayed provided that diaDexus has taken necessary steps to provide for
     diligent review by Incyte for removal of, or approval to disclose, Incyte
     Confidential Information. In no event shall Incyte's review be delayed
     beyond forty five (45) business days of diaDexus' request for review; and

          (ii) such disclosure is on an individual Designated Gene Product-by
     Designated Gene Product-basis and reflects research results which have
     involved material investment above and beyond Database Information; and

                                 Page 28 of 43

<PAGE>   29
     (iii) a deposit in escrow has been made prior to disclosure in accordance
     with the provisions of Section 2.3.4 and Exhibit A with respect to
     Designated Gene Product(s) which are the subject of such Confidential
     Information; and

          (iv) diaDexus has taken diligent steps toward protection of
     proprietary subject manner contained therein; and

          (v)  Incyte has had the reasonable opportunity (i.e.; not more than
     forty five (45) days) to file patent applications for protection of the
     subject matter that is proprietary to Incyte for Incyte Technology; and

          (vi) any such publications will include recognition of the
     contributions of Incyte according to standard practice for assigning
     scientific credit, either through authorship or acknowledgment as may be
     appropriate.

     (b)  Any scientific publications that would disclose Confidential
     Information of Incyte on other than an individual Designated Gene Product
     by Gene Product basis shall be under reasonable terms and conditions
     mutually agreed between the Parties, including the provisions of
     subparagraphs 5.2(a)(i) to (vi) above.

5.3  Confidential Disclosure to Third Party Collaborators. Incyte recognizes
     that diaDexus, in the normal course of business, utilizes consultants and
     academic collaborators who are bound by a contractual obligation to
     diaDexus, including an obligation of confidentiality to diaDexus. diaDexus
     may disclose Confidential Information of Incyte to such consultants and
     academic and third party collaborators in the context of the disclosure of
     diaDexus' own scientific results or the conduct of its work within the
     scope of the licenses granted herein provided, however, that:

     (a)  (i) diaDexus has obtained a written obligation of confidentiality and
     appropriate use restrictions (including field of use) no less restrictive
     than those set forth herein and provided that such third party shall not
     further disclose Confidential Information; and

                                 Page 29 of 43

<PAGE>   30

     (ii) any such disclosure of Confidential Information which includes the
     transfer of DNA Sequence Information or biological materials shall be
     subject to a written materials transfer agreement which protects the
     intellectual property rights of Incyte and diaDexus as set forth herein,
     such agreement to include customary provisions regarding scope of work,
     publication (under terms no less restrictive that those set forth herein),
     protection of proprietary subject matter and ownership of inventions; and
     the following provisions: that the third party shall use such biological
     materials and DNA Sequence Information for the benefit of diaDexus and/or
     sublicensees; and that Incyte proprietary DNA Sequence Information remains
     the sole and exclusive property of Incyte. Other customary provisions
     including, but not limited to, scope of work, publication, ownership of
     inventions, provisions regarding ownership of the biological materials
     and/or DNA Sequence Information and any derivatives.

     Such agreement will be in a form substantially similar to the agreements
     that diaDexus utilizes to protect is own biological materials; and

          (iii) a deposit in escrow has been made prior to disclosure in
     accordance with the provisions of Section 2.2.4 and Exhibit A with respect
     to Designated Gene Product(s) which are the subject of such Confidential
     Information and;

          (iv) diaDexus has obtained a written obligation from such third party
     regarding Incyte's right to review publications as under the provisions of
     Section 5.2(a) herein.

     The foregoing provisions of Section 5.2 and 5.3 shall not apply to any
     exclusive licenses diaDexus hold for Therapeutic Protein Products or
     Antisense Products pursuant to Section 3.4.

     Incyte agrees that Confidential Information of diaDexus will not be
     published or disclosed in any form except as permitted by Section 5.1.

5.4  Except as permitted pursuant to Section 5.1, this Article 5.0 shall not be
     construed to allow diaDexus and its sublicensees to publish or disclose the
     contents of LifeSeq(R) Database Product(s) or any Incyte software or
     hardware configurations, at any time without the express written consent of
     Incyte.

                                 Page 30 of 43
<PAGE>   31
6.0 INTELLECTUAL PROPERTY

6.1  Incyte Rights.  With the exception of intellectual property rights granted
     to diaDexus under the nonexclusive or exclusive license(s) granted under
     this Agreement, Incyte retains all rights it has to the Incyte Technology,
     LifeSeq(R) Database Product(s), and Database Information (including Full
     Length Clones or Full Length Contigs provided to diaDexus by Incyte) and
     the LifeSeq(R) Database Product(s) (collectively, "Incyte Inventions") and
     no licenses are granted herein except for those expressly provided in
     Article 3.0.

     diaDexus Rights.  Except as otherwise provided herein, diaDexus, licensees,
     or sublicensees, as applicable, shall respectively own all inventions
     conceived, discovered or developed by diaDexus, licensees, or sublicensees
     in connection with this Agreement including without limitation all
     intellectual property rights and title in and to any partial cDNAs, genes,
     full length cDNAs corresponding thereto, RNAs, peptides, polypeptides and
     proteins encoded thereby, Product(s), Modifications made by diaDexus
     excluding LifeSeq(R) Database Product(s) contained therein and inventions
     relating thereto (collectively, "diaDexus Inventions").

6.2  Patent Prosecution

     Incyte Inventions.  Except as provided herein, the filing, prosecution,
     maintenance, and enforcement of patent(s), copyrights, and other
     proprietary rights that cover Incyte Inventions shall be the exclusive
     right and responsibility of, and at the discretion of Incyte, provided that
     in the event Incyte declines the option to diligently file, prosecute,
     maintain or enforce any such proprietary rights under which diaDexus has
     been granted an exclusive option or license, Incyte shall give diaDexus
     reasonable notice to this effect and thereafter, diaDexus may, upon written
     notice to Incyte, file and prosecute such applications and maintain such
     intellectual property rights in Incyte's name, all at diaDexus' expense,
     except that diaDexus may deduct any expenses so incurred from any payments
     due to Incyte from diaDexus in connection with such exclusive option or
     license.

     diaDexus Inventions.  Except as provided herein, the filing, prosecution,
     maintenance and enforcement of patent(s), copyrights, and other proprietary
     rights that cover diaDexus Inventions, shall be the exclusive right and
     responsibility of, and at the discretion of diaDexus.

                                 Page 31 of 43
<PAGE>   32

      Joint Inventions. The filing, prosecution, and maintenance of patent(s),
      copyrights, and other proprietary rights and the expense of filing,
      prosecuting and maintaining any patents, copyrights and other proprietary
      rights conceived jointly by employees of both parties shall be the
      exclusive right and responsibility of, and at the discretion of diaDexus;
      provided that in the event diaDexus declines the option to file,
      prosecute or maintain any such proprietary rights; diaDexus shall give
      Incyte reasonable notice to this effect and thereafter, Incyte may, upon
      written notice to diaDexus, file and prosecute such applications and
      maintain such intellectual property rights in diaDexus' name, all at
      Incyte's expense and all such intellectual property rights shall remain
      owned jointly by the parties.

6.3   Cooperation. Each party agrees to cooperate with the other with respect
      to the filing prosecution, maintenance and extension of patents and
      patent applications, including without limitation, the execution of all
      such documents and instruments and the performance of such acts as may be
      reasonably necessary in order to permit the other party to continue any
      filing, prosecution, maintenance or extension of patents and patent
      applications that such party has elected not to pursue as provided for
      above. With respect to a Gene Product under Non-Exclusive Patent License
      in the Diagnostics Field of Use, and for the duration of such license,
      patent costs, upon the mutual written agreement of the Parties, will be
      shared equally by diaDexus, Incyte and any other Non-Exclusive
      licensee(s).

      With respect to a Gene Product under non-exclusive patent license in the
      Diagnostics Field of Use, and for the duration of such license, patent
      costs, upon the mutual written agreement of the parties, will be shared
      equally by diaDexus, Incyte and any other non-exclusive licensee(s).

6.4   During the Access Term and/or any active option, diaDexus shall have the
      right to inspect Incyte Patents Rights with respect to a given Designated
      Gene Product, from time to time on Incyte's premises and on reasonable
      notice for the purpose of evaluating diaDexus' interest in obtaining an
      option or exclusive license under such Incyte Patent Rights. Upon
      entering into an exclusive license to a Designated Gene Product and for
      the duration of such license, patent costs including out-of-pocket costs
      and cost of outside counsel relating to the filing, prosecution and
      maintenance of Incyte Patent Rights directed to such Designated Gene
      Product under exclusive license shall be the responsibility of and at the
      expense of diaDexus, provided that in the event diaDexus declines the
      option to file, prosecute or maintain any such proprietary rights,
      diaDexus shall give Incyte reasonable notice to this effect and
      thereafter, Incyte may, upon written notice to diaDexus, file and
      prosecute such applications and maintain such intellectual property
      rights in Incyte's name, at Incyte's expense.

                                 Page 32 of 43
<PAGE>   33
6.5  Research Tools and Database Products or Services.  With respect to
     composition of matter of use claims directed to Designated Gene Product(s)
     owned or controlled by diaDexus and sublicensee(s), diaDexus and
     sublicensee(s) agrees not to sue or bring any action in any court or
     administrative agency or any other government authority alleging
     infringement of said patents as a result of activities of Incyte or its
     affiliates or (sub)licensee(s) with respect to commercialization of
     research tools or database products or services, including microarray-based
     research tools or database products or services, by Incyte or its
     affiliates or (sub)licensee(s), which would constitute an infringement of
     said patents, and further, diaDexus and sublicensee(s) agrees to extend
     such freedom from suit or action to further (sub)licensee(s) of Incyte, its
     affiliates or licensees with respect to commercialization of research tools
     or database products or services. Such freedom from suit does not extend to
     "rDx Kits" or "rDx Services", as granted to diaDexus in the Diagnostics
     Field of Use.

6.6  Freedom From Suit - Research.  In the event diaDexus or its sublicensee(s)
     develops technology directed to the use of Designated Gene Product(s) as
     targets in the development of ligands of Gene Product(s) and said
     technology, or aspects thereof, is ultimately claimed in patents owned or
     controlled by diaDexus or its sublicensee(s), diaDexus or its
     sublicensee(s) as the case may be) agrees not to sue or bring any action in
     any court or administrative agency or any other government authority
     alleging infringement of said patents as a result of activities of Incyte
     or its affiliates or (sub)licensee(s) in the Research Field of Use which
     would constitute an infringement of said patents, and further, diaDexus or
     its sublicensee(s) as the case may be) agrees to extend such freedom from
     suit or action to further (sub)licensee(s) of Incyte, its affiliates,
     licensees or other subscribers of LifeSeq(R) Database Product(s). The
     foregoing freedom from suit provisions shall only apply with respect to
     such parties which have executed an agreement which contains an active
     provision with substantially similar rights to Incyte, its affiliates,
     licensees and subscribers with respect to any similar patents rights of
     said affiliates, (sub)licensee or subscriber.

6.7  Notwithstanding anything to the contrary in these Sections 6.5 and 6.6,
     nothing in this Agreement shall limit diaDexus right to license diaDexus
     intellectual property with regard to Diagnostic Products.

                                 Page 33 of 43
<PAGE>   34
6.8  Third Party Patents.  Subject to the warranties made hereunder as to each
     party's knowledge of any third party rights that may be infringed by the
     uses of the Database Information as contemplated herein, the Parties
     acknowledge that, in order to develop, and/or commercialize one or more
     Gene Products, they may require license under third party patent rights or
     such other rights, and it is hereby agreed that it shall be each Party's
     responsibility to satisfy itself as to the need for such licenses and, if
     necessary, to obtain such licenses. To the extent that diaDexus obtains
     any such third party licenses, it shall have no obligation to grant any
     sublicense or other rights to Incyte or to any third party with respect
     thereto. To the extent that diaDexus or its sublicensees obtain subsequent
     to the date of this Agreement licenses to third party patents or other
     intellectual property that claim rights to the composition of matter of a
     Gene Product, diaDexus may deduct such license fees and royalties from the
     royalty on Net Sales due to Incyte but only up to an amount equal to fifty
     percent (50%) of the royalty otherwise due hereunder for the same payment
     period and only with respect to royalties payable on an exclusive
     Therapeutic License or exclusive Antisence License under Incyte Patent
     Rights for which diaDexus would otherwise be required under Table 4.2 to
     pay a ***** royalty.

7.0  TERM; TERMINATION

7.1  Term: Termination at Full Term.  This Agreement shall commence as of the
     Effective Date and shall terminate as provided herein.

7.2  Term of License(s).  Upon expiration of the Access Term the following
     provisions shall apply.

     (a)  Except as provided below, all of the license(s) granted in the
     Diagnostic Field of Use Under Sections 3.2 and 3.3 herein shall remain in
     full force and effect after expiration of the Access Term provided that:
     (i) DiaDexus has deposited such Designated Gene Product(s) into escrow
     pursuant to Section 2.2.4 prior to termination or expiration of the Access
     Term, (ii) diaDexus has complied with all of its obligations under Article
     4.0 with respect to such license(s), and (iii) this Agreement has not been
     terminated by Incyte pursuant to Paragraph 7.3 hereinbelow.

***** Certain information on this page has been omitted and filed separately
      with the Securities and Exchange Commission. Confidential treatment has
      been requested with respect to the omitted portions.

                                 Page 34 of 43
<PAGE>   35
     b)   Prior to expiration, but not termination, of the Access Term, diaDexus
     may retain any license that has been procured under Sections 3.1 and/or
     3.2, (except in the Diagnostics Field of Use), on a Designated Gene
     Product by Designated Gene Product basis, by paying to Incyte an annual
     license maintenance fee of Fifteen Thousand Dollars ($15,000) until the
     earlier of:

     (i)  The filing by diaDexus or a diaDexus sublicensee of an IND or foreign
     equivalent in which case such license shall then extend in perpetuity; or

     (ii) The license is terminated prior to the filing by diaDexus or a
     diaDexus sublicensee of an IND (or BLA) or equivalent, on a given
     anniversary of the Access Term.

7.3  Breach. Material failure by either party to comply with any of its
     obligations under this Agreement shall entitle the other party to give to
     the party in default notice specifying the nature of the default and
     requiring it to cure such default. If such default is not cured within
     ninety (90) days after the receipt of such notice, the notifying party
     shall be entitled, without prejudice to any of its other rights conferred
     on it by this Agreement, in addition to any other remedies available to it
     by law or in equity, immediately to terminate this Agreement by giving
     notice to the other party. The right of a party to terminate this
     Agreement, as hereinafter provided, shall not be affected in any way by
     its waiver or failure to take action with respect to any previous default.

7.4  Accrued Rights Surviving Obligations. Termination, relinquishment or
     expiration of this Agreement for any reason shall be without prejudice to
     any rights which shall have accrued to the benefit of either party prior
     to such termination, or expiration. Upon any termination, relinquishment
     or expiration of this Agreement, the following provisions will not
     terminate, but will continue in full force and effect: Articles 5
     (confidentiality), 6 (intellectual property), 8 (representations/
     warranties), 9 (indemnity), 10 (miscellaneous) and Exhibit A (Escrow), and
     any licenses or options entered, and any payment obligations thereunder
     pursuant to diaDexus' rights under Articles 3 and 4.

8.0  REPRESENTATIONS AND WARRANTIES; COVENANTS

8.1  Representations and Warranties. Each party represents and warrants to the
     other party that:

     (a)  it is a corporation or entity duly organized and validly existing
     under the laws of the state or other jurisdiction of incorporation or
     formation;

     (b) it has the corporate power and authority and the legal right to enter
     into this Agreement and to perform its obligations hereunder;

                                 Page 35 of 43
<PAGE>   36
     (c)  the execution and delivery of this Agreement and the performance by
     such party of the transactions contemplated hereby have been duly
     authorized by all necessary corporate action of such party; and

     (d)  except for the governmental and Regulatory Approvals required to
     market the Product(s) in the given country, the execution, delivery and
     performance of this Agreement by such party does not require the consent,
     approval or authorization of, or notice, declaration, filing or
     registration with, any governmental or regulatory authority and the
     execution, delivery or performance of this Agreement by such party does
     not violate any law, rule or regulation applicable to such party.

8.2  Incyte's Representations. Incyte hereby represents, warrants and covenants
     to diaDexus as follows:

     (a)  to the best of Incyte's knowledge, as of the Effective Date it is the
     owner, or licensee (with the right to grant sublicenses), of the Incyte
     Patent Rights and Incyte Know-How, and no other person, corporate or other
     private entity, or governmental entity or subdivision thereof, has or
     shall have any claim of an ownership interest with respect to those Incyte
     Patent Rights and Incyte Know-How owned by Incyte, whatsoever;

     (b)  Upon Incyte's receipt of notice of election to option or license a
     Designated Gene Product under Incyte Patent Rights in the Diagnostic Field
     of Use, Therapeutic Field of Use, or Antisense Field of Use, Incyte agrees
     to notify diaDexus of any notice of infringement, claims, judgments or
     settlements against or owed by Incyte, or any pending or threatened claims
     or litigation, known to Incyte without undertaking a special
     investigation, relating to such Incyte Patent Rights (collectively, the
     "Infringement Notification". In the event of an Infringement Notification,
     diaDexus shall have the option, in its sole discretion, to rescind its
     notice of election;

     (c)  that (i) the LifeSeq(R) Database Products, will perform in accordance
     with its documentation and shall have, at a minimum, the functionality
     described in Exhibits B and C, (ii) that the LifeSeq(R) Database Products
     do not contain any disabling device, code, computer virus or defect that
     will with the passage of time or otherwise, impair the functionality or
     use of the LifeSeq(R) Database Products, and (iii) that the LifeSeq(R)
     Database Products shall not with respect to any date data which the
     LifeSeq(R) Database Products use in any manner and any system date which
     the LifeSeq(R) Database Products use as its current date, malfunction,
     cease to function, generate incorrect date or produce incorrect results
     and shall function with respect to leap year calculations. Further in
     connection with providing date data to and accepting date data from other
     automated computerized and/or software systems and users via user
     interfaces, electronic interfaces and data storage, the LifeSeq(R)
     Database Products represent dates without ambiguity as to century. In the
     event the LifeSeq(R) Database Products are century noncompliant in any
     respect, Incyte will at no cost to diaDexus within thirty (30) days correct
     the noncompliance and provide the corrected compliant product to diaDexus.
     Any such century noncompliance

                                 Page 36 of 43

<PAGE>   37
        shall not constitute a force majeure; and

        (d) Incyte has the legal right to license and/or sublicense to diaDexus,
        all third party products set forth in Exhibit C and/or otherwise
        delivered with the LifeSeq(R) Database Products.

        For purposes of this Section 8.2, the term "to the best of Incyte's
        knowledge" shall mean in each case Incyte's best knowledge without
        undertaking any special investigation with respect to such subject
        matter beyond the scope of those diligent investigations normally
        performed by Incyte in the course of its own business operations.

8.3     No Conflicting Agreements. Neither party has in effect and after the
        Effective Date neither party shall enter into any oral or written
        agreement that would conflict with its obligations under this Agreement.

8.4     Compliance with Law. Each party shall be responsible for compliance with
        all applicable product safety, product testing, product labeling,
        package marking, and product advertising laws and regulations with
        respect to its own activities and Products. Further, diaDexus and Incyte
        shall each comply with the regulations of the United States and any
        other relevant nation concerning any export or other transfer of
        technology, services, or products. The Export Commodity Control Number
        ("ECCN") for both the LifeSeq(R) Gold Database, PathoSeq Database, and
        the LifeTools(TM) Product is EAR 99.DBPROducts.

8.5     Disclaimers.

               (a) EXCEPT AS EXPLICITLY STATED HEREIN, NOTHING IN THIS AGREEMENT
                   SHALL BE CONSTRUED AS A REPRESENTATION MADE OR WARRANTY GIVEN
                   BY INCYTE THAT ANY PATENT WILL ISSUE BASED UPON ANY PENDING
                   PATENT APPLICATION WITHIN THE INCYTE PATENT RIGHTS, THAT ANY
                   PATENT WITHIN THE INCYTE PATENT RIGHTS THAT HAS ISSUED OR
                   ISSUES WILL BE VALID, OR THAT THE USE OF ANY LICENSE GRANTED
                   HEREUNDER OR THAT THE USE OF ANY INCYTE PATENT RIGHTS WILL
                   NOT INFRINGE THE PATENT OR PROPRIETARY RIGHTS OF ANY THIRD
                   PARTY. INCYTE MAKES NO REPRESENTATIONS OR WARRANTIES WITH
                   RESPECT TO DIADEXUS' USE OF THE INFORMATION TO BE PROVIDED TO
                   IT HEREUNDER. EXCEPT AS EXPLICITLY STATED HEREIN, ALL
                   WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF
                   MERCHANTABILITY, NOVELTY OR FITNESS OF GENE PRODUCTS OR
                   DATABASE INFORMATION FOR ANY PARTICULAR PURPOSE, ARE
                   EXCLUDED. INCYTE MAKES NO WARRANTY THAT THE DATABASE
                   INFORMATION DOES NOT CONTAIN ERRORS, HOWEVER INCYTE WARRANTS
                   THAT IT USED AND SHALL CONTINUE TO USE PROFESSIONAL SKILL AND
                   CARE IN THE CREATION,

                                 Page 37 of 43

<PAGE>   38
               PREPARATION AND MAINTENANCE OF THE LifeSeq(R) Database Products.

          (b)  EXCEPT AS EXPLICITLY STATED HEREIN NEITHER PARTY WILL BE LIABLE
               FOR CONSEQUENTIAL OR INCIDENTAL DAMAGES OF ANY NATURE ARISING
               FROM SUCH PARTY'S ACTIVITIES UNDER THIS AGREEMENT; PROVIDED,
               HOWEVER, THAT THIS LIMITATION SHALL NOT LIMIT THE INDEMNIFICATION
               OBLIGATION OF SUCH PARTY UNDER SECTION 9.2 BELOW FOR
               CONSEQUENTIAL OR INCIDENTAL DAMAGES RECOVERED BY A THIRD PARTY.

9.0  INDEMNITY

9.1  Indemnification by diaDexus. diaDexus shall indemnify, defend and hold
     Incyte, its affiliates and licensees (other than Incyte) harmless from and
     against any and all losses, liabilities, damages and expenses (including
     reasonable attorneys' fees and costs) as the result of claims, demands,
     actions or other proceedings which may be made or instituted by any third
     party against any of them arising out of (i) a material breach of diaDexus'
     representations, warranties or covenants under this Agreement, (ii) the
     development, manufacture, possession, distribution, use, testing, sale or
     other disposition of any Product by diaDexus or its sublicensees, (iii)
     products liability arising from the use by any third party of Product(s)
     sold by or on behalf of diaDexus or its sublicensees, or (iv) the gross
     negligence, recklessness or intentional misconduct of diaDexus in
     connection with activities to be performed under this Agreement, except to
     the extent such losses, liabilities, damages and expenses (including
     reasonable attorney's fees and costs) resulted from the gross negligence,
     recklessness or intentional misconduct of Incyte and/or from the activities
     covered under Section 9.2 (i) and/or (ii).

9.2  Indemnification by Incyte. Incyte shall indemnify, defend and hold
     diaDexus, and sublicensees harmless from and against any and all losses,
     liabilities, damages and expenses (including reasonable attorney's fees and
     costs) as the result of claims, demands, actions or proceedings which may
     be made or instituted by any third party against any of them arising out of
     (i) a material breach of Incyte's representations, warranties or covenants
     under this Agreement, (ii) the manufacture, possession, distribution, use,
     testing, sale or other disposition of any product by Incyte, its affiliates
     or licensees (other than diaDexus or sublicensees), or (iii) the gross
     negligence, recklessness or intentional misconduct of Incyte or its
     affiliates in connection with activities to be performed under this
     Agreement.

9.3  Procedure. A party that intends to claim indemnification under this Article
     9 (the "Indemnitee") shall promptly notify the indemnifying party (the
     "Indemnitor") of any loss, liability, damage, expense, claim, demand,
     action or other proceeding in respect of which the Indemnitee or any of its
     affiliates intend to claim such indemnification, and the Indemnitor shall
     have the right to participate in, and, to the extent the Indemnitor so
     desires, jointly with any other

                                 Page 38 of 43

<PAGE>   39
     Indemnitor similarly noticed, to assume the defense thereof with counsel
     selected by the Indemnitor and reasonably satisfactory to the Indemnitee;
     provided, however, that the Indemnitee shall have the right to retain its
     own counsel, with the fees and expenses to be paid by the Indemnitee. The
     indemnity provisions in this Article 9 shall not apply to amounts paid in
     settlement of any loss, liability, damage, expense, claim, demand, action
     or other proceeding if such settlement is effected without the consent of
     the Indemnitor, which consent shall not be withheld unreasonably. The
     failure to deliver notice to the Indemnitor within a reasonable time after
     the commencement of any such action, if prejudicial to the Indemnitor's
     ability to defend such action, shall relieve such Indemnitor of any
     liability to the Indemnitee under this Article 9, but the omission so to
     deliver notice to the Indemnitor will not relieve it of any liability that
     it may have to any Indemnitee otherwise than under this Article 9. The
     Indemnitor may not settle the action or otherwise consent to an adverse
     judgment in action or other proceeding that materially diminishes the
     rights or interests of the Indemnitee without the express written consent
     of the Indemnitee. The Indemnitee under this Article 9 and its employees
     and agents, shall cooperate fully with the Indemnitor and its legal
     representatives in the investigation of any action, claim or liability
     covered by this indemnification.

10.0 MISCELLANEOUS PROVISIONS

10.1 This Agreement shall not become effective until Amendment 4 of the
     Collaboration and License Agreement among Incyte, diaDexus, and Smith Kline
     Beecham, ("Amendment No. 4"), as appended hereto as Exhibit I has been
     fully executed.

10.2 No Partnership. Nothing in this Agreement is intended or shall be deemed to
     constitute a partnership, agency, distributorship, employer-employee or
     joint venture relationship between the Parties. No party shall incur any
     debts or make any commitments for the other, except to the extent, if at
     all, specifically provided herein.

                                 Page 39 of 43
<PAGE>   40

10.3  Assignments. Neither party shall assign any of its rights or obligations
      hereunder except: (i) as incident to the merger, consolidation,
      reorganization or acquisition of stock or assets or similar transaction
      affecting all or substantially all of the assets or voting control of the
      assigning party; or, in the case of Incyte, to any of Incyte's directly
      or indirectly wholly owned subsidiaries provided that the assigning party
      remains liable and responsible for such diaDexus or Incyte subsidiary's
      performance hereunder, as applicable; (ii) in the case of Incyte, as
      incident to the acquisition or transfer of the assets affecting all or
      substantially all of the assets of Incyte's business relating to a given
      field of use, provided that the acquiring entity or transferee continues
      to fulfill its obligations hereunder; (iii) with the consent of the other
      party, which consent shall not be withheld unreasonably. This Agreement
      shall be binding, upon the successors and permitted assigns of the
      Parties. Any assignment not in accordance with the above shall be void.
      To the extent that any assignment by diaDexus hereunder would directly
      result in an increase in any withholding taxes for which Incyte is
      responsible under this Agreement, diaDexus shall be responsible for such
      additional taxes.

      In the event of diaDexus' merger with or acquisition of or by a third
      party who is not a LifeSeq Subscriber, if such third party's annual R&D
      expenditures are equal to 50% of diaDexus' annual R&D expenditures, with
      such R&D expenditures measured for the previous 4 fiscal quarters, annual
      subscription fees consistent with that of Incyte's other commercial
      LifeSeq subscriptions with similar access and license rights and similar
      R&D expenditures shall automatically become applicable commencing on the
      date of closing of the merger or acquisition and continuing through the
      balance of the Access Term.

      In no event will diaDexus' LifeSeq(R) Database Product(s) access rights
      be assignable to a successor or permitted assignee if Incyte's
      obligations thereunder would increase materially as a result of the
      assignment (e.g. by having to service additional sites, or where Incyte
      would incur a material increase in expenses and/or services over those
      provided to diaDexus hereunder), unless such successor or permitted
      assign provides appropriate pro-rated adjustment of the access fees,
      service charges or Incyte costs incurred, and consistent with access
      fees, service charges or Incyte costs incurred pertaining to comparable
      database services customers.

10.4  No Trademark Rights. Except as otherwise provided herein, no right,
      express or implied, is granted by this Agreement to use in any manner the
      names "Incyte" or "diaDexus", or any other trade name or trademark of
      Incyte or diaDexus or their affiliates in connection with the performance
      of this Agreement.

                                 Page 40 of 43
<PAGE>   41

10.5  Public Announcements. Incyte and diaDexus may announce the existence of
      this Agreement, subject to mutual approval of any such announcement,
      which approval will not be unreasonably withheld. Except as contemplated
      by the last sentence or as may otherwise be required by law or
      regulation, neither party shall make any public announcement concerning
      this Agreement or the subject matter hereof without the prior consent of
      the other party. If this Agreement is determined to be material to the
      business of Incyte (or diaDexus) so that its disclosure is required by
      law or regulation, diaDexus (or Incyte) shall have the right to review
      and comment of the text of the disclosure prior to its release to the
      public.

10.6  Entire Agreement of the Parties; Amendments. This Agreement constitutes
      and contains the entire understanding and agreement of the Parties and
      cancels and supersedes any and all prior negotiations, correspondence,
      representations, understandings and agreements, whether verbal or
      written, between the Parties respecting the subject matter hereof, except
      that the June 30, 1995 Confidential Disclosure Agreement between the
      parties shall govern disclosures prior to the execution of this
      Agreement. No waiver, modification or amendment of any provision of this
      Agreement shall be valid or effective unless made in writing and signed
      by a duly authorized officer of each of the Parties.

10.7  Applicable Law. This Agreement shall be governed by and interpreted in
      accordance with the laws of the State of Delaware, without reference to
      the conflicts of law principles thereof. The parties expressly exclude
      application of the United Nations Convention for the International Sale
      of Goods. English shall be the governing language of this Agreement.

10.8  Notices and Deliveries. Any notice, requests, delivery, approval or
      consent required or permitted to be given under this Agreement shall be
      in writing and shall be deemed to have been sufficiently given if
      delivered in person, transmitted by commercial overnight courier, or
      transmitted by telex telegram or telecopy (facsimile, with confirmed
      receipt) to the party to whom it is directed at its address shown below
      or such other address as such party shall have last given by notice to
      the other party (referred to herein as "notice"). All notices shall be
      effective upon receipt.

            If to Incyte, addressed to:
                  Incyte Pharmaceuticals, Inc.
                  3174 Porter Drive
                  Palo Alto, CA 94304
                  Attn: General Counsel

            If to diaDexus, addressed to:
                  diaDexus LLC.
                  3303 Octavius Drive
                  Santa Clara, CA 95054
                  Attn: President & Chief Operating Officer

10.9  Counterparts. This Agreement may be executed in two or more counterparts,
      each of which shall be deemed an original, but all of which together shall

                                 Page 41 of 43

<PAGE>   42

      constitute one and the same instrument.

10.10 Force Majeure. Force Majeure shall mean an Act of God, flood, fire,
      explosion, earthquake, strike, lockout, casualty or accident, war, civil
      commotion, act of public enemies, blockage or embargo, or any injunction,
      law, order, proclamation, regulation, ordinance, demand or requirement of
      any government or any subdivision, authority representative thereof, or
      the inability to procure or use materials, labor, equipment,
      transportation or energy sufficient to meet manufacturing needs without
      the necessity of allocation, or any other cause whatsoever, whether
      similar or dissimilar to those enumerated above, which are beyond the
      reasonable control of such party, which the party affected has used its
      reasonable best efforts to avoid, and which prevent, restrict or
      interfere with the performance by a party of its obligations hereunder.
      The party affected by Force Majeure shall give notice to the other party
      promptly in writing and whereupon shall be excused from those obligations
      hereunder, to the extent of such prevention, restriction or interference,
      provided that the affected party shall use its commercially reasonable
      efforts to overcome, avoid or remove such cause(s) of non-performance and
      shall continue performance whenever such cause(s) is removed with all
      possible speed. Nothing herein shall be deemed to require any party to
      settle on terms unsatisfactory to such party with regard to any strike,
      lock-out or other labor difficulty, any investigation or proceeding by
      any public authority or any litigation by any third party.

10.11 Support. During the Access Term, Incyte shall provide to diaDexus such
      support services for the LifeSeq(R) Database Products as Incyte provides
      generally to its customers for the LifeSeq(R) Database Products,
      including such new releases, enhancements and versions of such LifeSeq(R)
      Database Products that are included in the definition of "LifeSeq(R)
      Database Products" a designated contact for questions about the
      LifeSeq(R) Database Products, and telephone and e-mail support.

                                 Page 42 of 43
<PAGE>   43

10.12  Software Escrow: During the Access Term and any extensions thereto,
     Incyte shall maintain an escrow arrangement with a reputable escrow agent,
     reasonably acceptable to diaDexus, to facilitate (a) diaDexus' deposit of
     information concerning the identity of Gene Product(s) in Use or Used by
     diaDexus as required under this Agreement and (b) Incyte's deposit of the
     LifeSeq(R) Database Products, as further described in the Data and Software
     Access Plan set forth in Exhibit E. Accordingly, Incyte represents that as
     of the Effective Date, Incyte maintains an escrow with SourceFile, Inc.
     (the "Escrow Agent") pursuant to the terms and conditions of the escrow
     agreement set forth in Exhibit A, attached hereto and incorporated herein
     by reference (the "Escrow Agreement"). Incyte shall add diaDexus as a
     beneficiary under the Escrow Agreement within fourteen (14) days of the
     execution of this Agreement by execution of the Form of Acknowledgement and
     Amendment Number One thereto, comprising Exhibit B-1 of the Escrow
     Agreement. For the avoidance of doubt, it is expressly understood that it
     is the LifeSeq(R) Database Products as defined under this Agreement and
     further described in the Data and Software Access Plan that Incyte shall
     deposit into escrow, notwithstanding the use of the term "LIFESEQ(TM)" in
     the Escrow Agreement or any other description contained in Exhibit A of the
     Escrow Agreement. If for any reason the Escrow Agent does not agree to
     execute the Form of Acknowledgement and Amendment Number One thereto,
     comprising Exhibit B-1 to the Escrow Agreement, Incyte, diaDexus shall use
     best efforts to agree upon a version of Exhibit B-1 to the Escrow Agreement
     that he Escrow Agent will agree to sign.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by
their respective duly authorized officers as of the Effective Date.

INCYTE PHARMACEUTICALS, INC.

By:    [Signature Illegible]
   ---------------------------------
Name:
     -------------------------------
Title:
      ------------------------------
Date:
     -------------------------------

DIADEXUS, LLC

By:    /s/ P. PLEWMAN
   ---------------------------------
Name:  P. Plewman
     -------------------------------
Title: President & COO
      ------------------------------
Date:  2/17/00
     -------------------------------

                                 Page 43 of 43<PAGE>   1
*****Certain information on this page has                          EXHIBIT 10.30
been omitted and filed separately with the
Securities and Exchange Commission. Confidential                   REDACTED FOR
treatment has been requested with respect to the                 CONFIDENTIALITY
omitted portions.

                             CONFIDENTIAL TREATMENT
                                   REQUESTED

               The asterisked portions of this document have been
            omitted and are filed separately with the Securities and
                              Exchange Commission

                               LICENSE AGREEMENT

     THIS LICENSE AGREEMENT (hereinafter "AGREEMENT"), effective as of the
EFFECTIVE DATE (as defined below), is entered into by and between diaDexus,
LLC, 3303 Octavius Drive, Santa Clara, CA 95054 (hereinafter "diaDexus") and
SmithKline Beecham Clinical Laboratories, Inc. a Delaware corporation having
principal offices at 1201 South Collegeville Road, Collegeville, Pennsylvania
19426 (hereinafter "SBCL").

     WHEREAS, diaDexus, Incyte Pharmaceuticals, Inc., and SmithKline Beecham
entered into the COLLABORATION AND LICENSE AGREEMENT (as defined below)
relating to the establishment of diaDexus for the purpose of undertaking
research, development and commercialization of certain diagnostic products.

     WHEREAS, diaDexus has rights in certain patents, identified in EXHIBIT A
hereto, and know-how relating to methods for the diagnosis of and/or screening
for prostate cancer.

     WHEREAS, SBCL desires to obtain certain licenses in certain countries of
the world from diaDexus to develop and commercialize certain tests for the
diagnosis, prognosis, and/or screening for prostate cancer in such countries
under the aforesaid patents and know-how, and diaDexus is willing to grant to
SBCL such licenses under terms and conditions set forth below:

     NOW, THEREFORE, in consideration of the following, and intending to be
legally bound, diaDexus and SBCL agree as follows:

1.   DEFINITIONS

     In this AGREEMENT, unless otherwise provided, the following terms shall
have the meaning set forth in this section.

     1.1  AFFILIATE

     The term "AFFILIATE" shall mean any corporation or other business entity
controlled by, controlling or under common control with either diaDexus or
SBCL. For purposes of this Section 1.1, "control" shall mean direct or indirect
beneficial ownership of greater than fifty percent (50%) of the voting stock or
equity, or greater than fifty percent (50%) interest in the income of such
corporation or other business entity; provided that, if local law requires a
minimum percentage of local ownership, control will be established by direct or
indirect beneficial ownership of one hundred percent (100%) of the maximum
ownership percentage that may, under such local law, be owned by foreign
interests.

                                                                          Page 1
<PAGE>   2
     1.2  COLLABORATION AND LICENSE AGREEMENT

     The term "COLLABORATION AND LICENSE AGREEMENT" shall mean the
collaboration and license agreement by and among diaDexus, SmithKline Beecham,
Corp. SmithKline Beecham, plc. and Incyte Pharmaceuticals, Inc., dated
September 1, 1997 as amended.

     1.3  EFFECTIVE DATE

     The term "EFFECTIVE DATE" shall mean the effective date of this AGREEMENT
and shall be the date upon which this AGREEMENT is executed by both parties.

     1.4  HOMEBREW

     The term "HOMEBREW" shall mean a Clinical Diagnostic HOMEBREW or a Phase
III/IV H0MEBREW and/or a Phase I/II HOMEBREW, as the case may be. For the
purposes of this Agreement, such words and expressions shall have the following
meaning:

     (A)  A "Clinical Diagnostic HOMEBREW" shall mean test(s) performed on human
          serum for the diagnosis, prognosis and/or screening of prostate cancer
          by detecting elevated levels of PLA2 and, subject to Paragraph 2.2,
          conducted prior to commercial launch of such test as a Kit (and not
          packaged as a product for sale), the results of which test are
          provided to payors, providers, or patients for use in the clinical
          management of individual patients, which become part of such patient's
          health record.

     (B)  A "Phase III/IV HOMEBREW" shall mean a Clinical Diagnostic HOMEBREW
          performed on human serum for the diagnosis and/or prognosis and/or
          screening of prostate cancer during the course of a Phase III/IV
          clinical trial for a prostrate cancer therapeutic.

     (C)  A "Phase I/II HOMEBREW" shall mean diagnostic test(s) detecting
          elevated levels of PLA2 performed on human serum to support the
          development of a compound for potential use as a prostate cancer
          therapeutic that could lead to the performance of a Phase III or Phase
          IV clinical trial for such prostate cancer therapeutic including
          without limitation Phase I and Phase II trials for prostate
          therapeutics.

     1.5  KIT

     The term "KIT" shall mean any set of components or reagents provided
together as a unit, to a THIRD PARTY for the purpose of performing a diagnostic
or screening test or assay for the diagnosis, prognosis, and/or screening of
prostate cancer by detecting elevated levels of PLA2 in the serum which has
been approved by the Federal Food and Drug Administration (or its equivalent
outside of the U.S.A. if required) for diagnosis, prognosis, and/or screening
clinical use.

                                                                          Page 2
<PAGE>   3
     1.6  KNOW-HOW

     The term "KNOW-HOW" shall mean all present and future technical
information and know-how which relates to a HOMEBREW which is confidential or
is not in the public domain and shall include, without limitation, all
biological, chemical, pharmacological, toxicological, clinical, assay, control
and manufacturing data and biological material samples required for HOMEBREW
development purposes, and any other information relating to a HOMEBREW and
useful for the development and commercialization of a HOMEBREW and in which
diaDexus has a licensable interest.

     1.7  NET SALES

     The term "NET SALES" shall mean the gross invoiced sales of HOMEBREW by
SBCL, its AFFILIATE, or sublicensees as the case may be (The "Selling Party")
to Third Parties less deductions actually allowed or specifically allocated and
actually incurred to such HOMEBREW by the Selling Party using generally
accepted accounting practices in the United States and reasonable practices
with respect to sales of such HOMEBREW Selling Party, consistently applied for
the following (i) sales and excise taxes and duties paid or allowed by the
Selling Party and any other governmental charges imposed on the production,
importation, use or sale of such HOMEBREW; (ii) trade, quantity and cash
discounts actually allowed on HOMEBREWs, (iii) sales adjustments, credits,
refunds, and allowances to customer on account of rejection or return of
HOMEBREW performed by the Selling Party or on account of retroactive price
reductions affecting same, (iv) handling or transportation charges for HOMEBREW
to the extent they are for shipping and included in the price or otherwise paid
by the Selling Party, including insurance, and (v) SBCL's bad debt expense
based on SBCL's prior years actual percentage for bad debt, provided such
expenses do not exceed 4.5% of Net Sales. Any accruals for the foregoing
deductions shall be reconciled with actual results on a quarterly basis and any
adjustments shall be reflected in the subsequent quarter's computation of NET
SALES.

     1.8  PATENTS

     The term "PATENTS" shall mean all patents and patent applications which
are or become owned by diaDexus, or to which diaDexus otherwise has, now or in
the future, the right to grant licenses, which generically or specifically
claim a HOMEBREW or its components, a process for manufacturing a HOMEBREW or
its components, an intermediate used in making or using the HOMEBREW or its
components, or a use of a HOMEBREW for the diagnosis, prognosis, and screening
of prostate cancer. Included within the definition of PATENTS are all
continuations, continuations-in-part, divisions, patents of addition, reissues,
re-examinations, renewals or extensions thereof and all SPCs (i.e., a right
based upon a PATENT to exclude others from making, using, importing or selling
a HOMEBREW, such a Supplementary Protection Certificate). Also included within
the definition of PATENTS are any patents or patent applications which
generically or specifically claim any improvements on a HOMEBREW, or its
components, or intermediates or manufacturing processes required or useful for
production of a HOMEBREW or its components which are developed by diaDexus, or
which diaDexus

                                                                          Page 3
<PAGE>   4
otherwise has the right to grant licenses, now or in the future, during the
term of this AGREEMENT. The current list of patent applications and patents
encompassed within PATENTS is set forth in EXHIBIT A which is attached hereto
and fully incorporated herein.

     1.9  PROFIT MARGIN

     The term "PROFIT MARGIN" shall mean net sales (as reported on SBCL's
operating statement) less cost of goods, which is divided by such net sales and
expressed as a percent. For the purposes of this definition, cost of goods
shall mean the sum of the actual direct and indirect costs for ingredients,
supplies, material, and labor and an allocated portion of overheads, incurred
in the manufacturing of HOMEBREWS, as determined in accordance with generally
accepted accounting principles in the United States.

     1.10 TERRITORY

     The term "TERRITORY" shall mean the United States, Canada, Mexico, Japan,
the Countries of Europe as listed in Exhibit B, Singapore, Australia, and New
Zealand of which USA, Canada, UK, France, Japan, Spain, Italy, and Germany
shall for the purposes of this Agreement be deemed a "Major Market".

     1.11 THIRD PARTY(IES)

     The term "THIRD PARTY(IES)" shall mean any party other than SBCL,
diaDexus, and their AFFILIATES.

     1.12 VALID CLAIM

     The term "Valid Claim" shall mean a claim of an enforceable PATENT which
has not been held invalid or unenforceable by final decision of a court or
other governmental agency of competent jurisdiction, unappealable or unappealed
within the time allowed for appeal, and which is not expressly admitted to be
invalid or unenforceable through reissue, disclaimer or otherwise.

2.   GRANTS

     2.1  EXCLUSIVE LICENSE

     (a)  Subject to the terms and conditions of this AGREEMENT, diaDexus
hereby grants to SBCL an exclusive right and license including, without
limitation, the right to grant sublicenses, under PATENTS and KNOW-HOW to make,
use, have made, and import materials or components for the sole purpose of
developing HOMEBREWS, and offering to sell, selling, and performing HOMEBREWS
in the TERRITORY. Notwithstanding the above, SBCL shall have no right to grant
sublicenses to a THIRD PARTY in any country of the TERRITORY after the date of
the first commercial sale of a KIT in such country by diaDexus or by a licensee
of diaDexus.

                                                                          Page 4
<PAGE>   5
     (b)  Within thirty (30) days after the effective date of any THIRD PARTY
sublicense granted by SBCL under this Section 2.1. SBCL shall provide to
diaDexus, in writing, a notice of the identity of any such sublicensee.

     2.2  NONEXCLUSIVE LICENSE

     Subject to the terms and conditions of this AGREEMENT, at any time after
the date of the first commercial sale in a country of the TERRITORY, either by
diaDexus or by a licensee of diaDexus of a KIT, SBCL, upon SBCL's written
election, may convert in such country the exclusive right and license granted
by diaDexus pursuant to Section 2.1 to a nonexclusive, nontransferable right
and license. Such right and license shall not include a right to grant
sublicenses other than the right to grant sublicenses to AFFILIATES. The
effective date of such conversion shall be the date of receipt by diaDexus of
written notice of SBCL's election under this Section 2.2.

     2.3  NO OTHER RIGHTS

     Except as expressly provided herein, no right, title, or interest is
granted by diaDexus to SBCL in, to or under PATENTS and KNOW-HOW or in or to a
HOMEBREW, or any components thereof.

3.   CONSIDERATION

     3.1  LICENSE FEE

     (a)  In partial consideration for the rights and license granted pursuant
to Section 2 of this AGREEMENT with respect to Clinical Diagnostic HOMEBREWS
AND Phase III/IV HOMEBREWS and in accordance with Paragraph 6.3(b) of the
COLLABORATION AND LICENSE AGREEMENT, within thirty (30) days after the
EFFECTIVE DATE, SBCL shall pay to diaDexus a license fee equal to fifty
thousand U.S. dollars (U.S. $50,000) and such fee shall be fully creditable
against royalties due and payable to diaDexus pursuant to Sections 3.2 and 3.3
of this AGREEMENT.

     (b)  In partial consideration for the rights and license granted pursuant
to Section 2 of this AGREEMENT with respect to Phase I/II HOMEBREWS, within
thirty (30) days after the EFFECTIVE DATE, SBCL shall pay to diaDexus a license
fee equal to fifty thousand U.S. dollars (U.S. $50,000). This fee shall be fully
creditable against royalties due and payable to diaDexus pursuant to Sections
3.2 and 3.3 of this AGREEMENT.

     3.2  SUBLICENSE ROYALTIES.

     Any royalties based on accrual use of a HOMEBREW by a sublicensee of SBCL
shall be paid to diaDexus by SBCL in accordance with Section 3.3 or Section 3.4.

                                                                          Page 5

<PAGE>   6
     3.3  ROYALTIES

     In partial consideration for the rights and license granted pursuant to
Section 2.1 or 2.2 of this AGREEMENT and in accordance with Paragraph 6.3(a) of
the COLLABORATION AND LICENSE AGREEMENT and subject to Section 3.3.3 of this
AGREEMENT, SBCL shall pay to diaDexus royalties on NET SALES of HOMEBREWS by
SBCL, is AFFILIATES and sublicensees (the `Selling Party') in accordance with
the following:

          3.3.1  Clinical Diagnostic HOMEBREW/Phase III/IV HOMEBREW

          (a)  ***** of all NET SALES of each Clinical Diagnostic HOMEBREW and
     Phase III/IV HOMEBREW for the first 3 months of sales of such service; and

          (b)  Thereafter, the applicable royalty rate for NET SALES of each
Clinical Diagnostic HOMEBREW and Phase III/IV HOMEBREW shall be as follows:

               (i)   If the Selling Party PROFIT MARGIN is *****

               (ii)  If the Selling Party PROFIT MARGIN is *****

               (iii) For Selling Party PROFIT MARGIN between *****

          3.3.2  Phase I/II HOMEBREW

          ***** of all NET SALES of each Phase I/II HOMEBREW in those countries
of the TERRITORY where there is a VALID CLAIM covering the HOMEBREW and ***** of
NET SALES in those countries of the TERRITORY where there is not a VALID CLAIM
covering the Phase I/II HOMEBREW.

***** Certain information on this page has been omitted and filed separately
      with the Securities and Exchange Commission. Confidential treatment has
      been requested with respect to the omitted portions.

                                                                          Page 6

<PAGE>   7
          3.3.3  THIRD PARTY ROYALTIES

     (a)  If during the term of this AGREEMENT, SBCL deems it necessary to seek
a license to US Patent ***** and/or ***** (and/or their foreign equivalents in
the TERRITORY) in order to avoid infringement of the exercise of the rights and
licenses granted herein, one-half of any royalties paid to such THIRD PARTY
under such license may be deducted by SBCL from any royalties otherwise due
diaDexus under this AGREEMENT, provided always that any such deduction shall
not ever exceed two percent (2%) of any such royalties due to diaDexus under
this AGREEMENT.

     (b)  In the event SBCL determines any such license from such THIRD PARTY
constitutes or would constitute a financial hardship to SBCL, diaDexus shall
promptly upon SBCL's written request, promptly collaborate with SBCL, providing
all such assistance as would be reasonably necessary, to re-format the assay
for HOMEBREWS such that SBCL would then deem it unnecessary to seek a license to
such patents.

     (c)  In the event SBCL and diaDexus are able to re-format the assay for
HOMEBREWS such that SBCL would then deem it unnecessary to seek a license to
such patents, the time periods set forth in Section 5.2 and 5.3 shall be
altered to reflect the time period of the delay in the commencement of
promotion and marketing of HOMEBREWS caused to SBCL as a consequence of the
need to re-format the assay for HOMEBREWS pursuant to Section 3.3.3(b).

     3.4  CURRENCY

     All payments shall be made in United States of America dollars. If
governmental regulations prevent remittances from a foreign country with
respect to sales made in that country, the obligation of SBCL to pay royalties
on sales in that country shall be suspended until such remittances are
possible. diaDexus shall have the right, upon giving written notice to SBCL, to
receive payment in that country in local currency.

     3.5  TAXES

     Any tax, duty or other levy paid or required to be withheld by SBCL or its
AFFILIATES or sublicensees on account of royalties payable to diaDexus under
this AGREEMENT shall be deducted from the amount of royalties otherwise due.
SBCL shall secure and sent to diaDexus proof of any such taxes, duties or other
levies withheld and paid by SBCL or its AFFILIATES or sublicensees for the
benefit of diaDexus.

4.   REPORTS AND AUDIT RIGHTS

     4.1  RECORDS

     SBCL shall keep, and shall require SBCL's AFFILIATES, and sublicensees to
keep accurate records in sufficient detail to enable royalties and other
payments due diaDexus hereunder to be determined. Such records shall be
maintained by SBCL at SBCL's

***** Certain information on this page has been omitted and filed separately
      with the Securities and Exchange Commission. Confidential treatment has
      been requested with respect to the omitted portions.

                                                                          Page 7

<PAGE>   8
principal place of business for at least three (3) years after the period
covered by such records.

     4.2  REPORTS

     Within thirty (30) days after the first day of each calendar quarter. SBCL
shall:

     (a)  deliver to diaDexus a written report containing information and data
concerning the number (volume and value) of HOMEBREWS SBCL, its AFFILIATES and
its sublicensees have performed during the relevant period (i.e., prior
calendar quarter in each country in the TERRITORY.

     (b)  deliver to diaDexus a written report containing information and data
concerning the total amount due and payable to diaDexus hereunder for SBCL's,
its AFFILIATES' and its sublicensees' activities during such calendar quarter;
and

     (c)  pay to diaDexus the full amount of royalties due to diaDexus
hereunder for SBCL's, its AFFILIATES' and its sublicensees' activities during
the calendar quarter covered by such report, subject to any credit which may be
due SBCL under section 3.1 (a).

     (d)  Payment of royalties and other payments due and payable to diaDexus
but not paid when due shall accrue interest at the prime commercial lending
rate plus 5%, prevailing on the payment due date at the Bank of America, San
Francisco, California or its successor.

     4.3  AUDIT RIGHTS

     During the term of this AGREEMENT and for six (6) months after its
expiration or termination, after receipt by SBCL of diaDexus' written request
and after reasonable prior notice, SBCL shall permit an independent certified
public accountant, selected by diaDexus and reasonably acceptable to SBCL, to
examine SBCL'S, its AFFILIATES and their sublicensees' records to determine the
accuracy of any report delivered or payment made by SBCL to diaDexus hereunder.
Only one such examination may be made in each year and shall not cover records
for more than the preceding three (3) years, and further provided that such
accountant shall report to diaDexus only as to the accuracy of the royalty
statements and payments. Except as otherwise provided below, the cost and
expense of such examination shall be borne by diaDexus. If any such examination
determines that additional payment amounts are owed to diaDexus for any period.
SBCL shall pay such additional payment amounts to diaDexus promptly. If any
such examination determines that an overpayment has been made to diaDexus for
any period, diaDexus shall reimburse such overpayment amount to SBCL promptly.
In addition, if any such examination reveals that SBCL underpaid diaDexus by an
amount equal to or greater than 10% of the total amount due diaDexus in any
reporting period, the reasonable cost and expense of such examination shall be
borne by SBCL.

                                                                          Page 8
<PAGE>   9
5.   DILIGENCE AND OTHER OBLIGATIONS OF SBCL

     5.1  MANUFACTURING AND DISTRIBUTION

     SBCL shall bear all costs and expenses associated with making, having
made, using and importing a HOMEBREW or its components for the purpose of
offering to sell, selling, and performing HOMEBREW in the TERRITORY.

     5.2  CLINICAL DIAGNOSTIC HOMEBREW DILIGENCE

     SBCL shall use reasonable and documentable efforts to promote and develop
a commercial market for performing Clinical Diagnostic HOMEBREWS in the
TERRITORY using the same standards SBCL would use in promoting and developing a
Clinical Diagnostic HOMEBREW of its own making which had the same commercial
potential as a Clinical Diagnostic HOMEBREW. Notwithstanding the above, SBCL
shall have satisfied its obligations to use such reasonable efforts, within the
relevant country of the TERRITORY, upon the occurrence of the following:

          (a)  Initiating offers to sell or sales and thereafter continuing
     offers to sell or sales of services utilizing a Clinical Diagnostic
     HOMEBREW to THIRD PARTY customers upon which royalties are to be paid to
     diaDexus in the United States of America within one hundred twenty (120)
     days after the EFFECTIVE DATE;

          (b)  Initiating offers to sell or sales and thereafter continuing
     offers to sell or sales of services utilizing a Clinical Diagnostic
     HOMEBREW to THIRD PARTY customers upon which royalties are to be paid to
     diaDexus in each of the Major Markets (other than the US) within one
     hundred and eighty (180) days after the EFFECTIVE DATE; and

          (c)  Initiating offers to sell or sales and thereafter continuing
     offers to sell or sales of services utilizing a Clinical Diagnostic
     HOMEBREW to THIRD PARTY customers upon which royalties are to be paid to
     diaDexus in the relevant country in the TERRITORY which is not mentioned in
     Section 5.2 (a) or (b) within twelve (12) months after the EFFECTIVE DATE.

     5.3  PHASE I/II HOMEBREW/PHASE III/IV HOMEBREW DILIGENCE

          SBCL shall use reasonable and documentable efforts to promote and
     develop a commercial market for performing Phase I/II HOMEBREW/Phase III/IV
     HOMEBREWS in the TERRITORY using the same standards SBCL's Clinical Trial
     Testing Center would use in promoting and developing a HOMEBREW of its own
     making which had the same technical and commercial potential as a Phase
     I/II HOMEBREW/Phase III/IV HOMEBREW. Such efforts shall include timely
     presentations by SBCL to these THIRD PARTIES reasonably known to SBCL to be
     conducting Phase I, II, III, and IV clinical trials in the TERRITORY for
     prostate cancer therapeutics making such parties aware of Phase I/II
     HOMEBREW/Phase III/IV HOMEBREW.

                                                                          Page 9

<PAGE>   10

     5.4  If SBCL fails to initiate offers to sell or sales and/or continue
offers to sell or sales of HOMEBREW services in any country of the TERRITORY in
accordance with the schedule set forth in Sections 5.2 or 5.3 and subject to
Section 5.5, diaDexus shall be entitled to terminate any right and license
granted to SBCL by diaDexus under this AGREEMENT in such country with respect
to such HOMEBREW. Such termination to be effective, upon receipt by SBCL of
written notice of such termination by diaDexus, provided such termination shall
not be effective if SBCL has either initiated offers to sell or sales of such
HOMEBREW in such country at the time SBCL receives such notice from diaDexus or
within thirty (30) days of receipt of such notice from diaDexus. In the event
that SBCL initiates offers to sell or sales of HOMEBREW as a service in a
country of the TERRITORY in accordance with the schedule set forth in Sections
5.2 or 5.3, but thereafter fails to continue offering to sell or sales of such
HOMEBREW, and such failure is due (i) to circumstances which are within SBCL's
reasonable control and (ii) continues for more than three (3) months, unless
SBCL is proceeding as diligently as reasonably possible, diaDexus shall be
entitled, at its discretion, to terminate any right and license granted to SBCL
by diaDexus under this AGREEMENT in such country with respect to such HOMEBREW.
Such termination to be effective, with no opportunity to cure, upon receipt by
SBCL of written notice of such termination by diaDexus, provided such
termination shall not be effective if SBCL has resumed offers to sell or sales
of such HOMEBREW in such country at the time SBCL receives such notice from
diaDexus or within thirty (30) days of receipt of such notice from diaDexus.

     5.5  In the event that, after the EFFECTIVE DATE, the Federal Food and
Drug Administration passes legislation or other laws which require the approval
of a HOMEBREW by such agency, the timelines outlined in Sections 5.2 and 5.3
shall be extended such that they shall not come into effect until after
approval of the HOMEBREW in such country has been achieved.

     5.6  MARKETING

     SBCL shall bear all costs and expenses associated with its and its
AFFILIATES marketing of services in the TERRITORY utilizing a HOMEBREW. SBCL
shall develop a marketing and market development plan within ninety (90) days
after the EFFECTIVE DATE and deliver such plan to diaDexus on or before such
date. Such plan shall include programs which make SBCL's entire sales force
cognizant of the availability of HOMEBREWS. In connection with its marketing
activities, including without limitation the development of a market
development and marketing plan. SBCL shall spend not less than One Hundred
Fifty Thousand U.S. dollars (U.S. $150,000) in support of marketing and
commercialization (including but not limited to sales activity) in the
TERRITORY of a HOMEBREW, such expenditure to be made at a rate which is within
SBCL's sole discretion.

                                                                         Page 10

<PAGE>   11
6.   PROVISION OF KNOW-HOW AND CONFIDENTIALITY

     6.1  PROVISION OF KNOW-HOW

     (a)  Promptly after the EFFECTIVE DATE, diaDexus shall disclose and supply
to SBCL all KNOW-HOW. Thereafter, diaDexus shall promptly disclose and supply
to SBCL any further KNOW-HOW which may become known to diaDexus. During the
term of the AGREEMENT, and at no cost to SBCL, diaDexus shall provide SBCL with
reasonable technical assistance within diaDexus' area of expertise, with
respect to the utilization of such KNOW-HOW in the development and
commercialization of HOMEBREWS.

     (b)  SBCL shall to the extent it has the rights to do so, reasonably
cooperate with diaDexus and its sublicensees (including a proposed Kit
manufacturer) in providing information to diaDexus that the parties mutually
agree may be useful in gaining approval for such HOMEBREW as a KIT, provided
such efforts are likely to enhance the overall market for the KIT and/or
HOMEBREW and such efforts may result in information useful to SBCL in its
healthcare services application.

     6.2  GENERAL PROVISION REGARDING CONFIDENTIALITY

     During the term of this AGREEMENT and for five (5) years thereafter,
irrespective of any termination earlier than the expiration of the term of this
AGREEMENT, and except as otherwise expressly provided in this AGREEMENT, each
party shall hold in strict confidence and not use or disclose to any THIRD
PARTY (other than AFFILIATES, sublicensees, distributors, employees,
consultants and advisors who are similarly bound in writing) any assay,
product, technical, marketing, financial, business or other information, ideas
or know-how identified in writing as confidential ("Confidential Information")
by the other party without first obtaining the written consent of the
disclosing party; provided, however, that Confidential Information of a party
shall not include:

     (a)  Information which at the time of disclosure to the receiving party
was previously known to the receiving party as demonstrated by written records;
or

     (b)  Information which at the time of disclosure to the receiving party is
published or otherwise generally available to the public; or

     (c)  Information which, after disclosure to the receiving party by the
other party, is published or otherwise becomes generally available to the
public through no breach of this AGREEMENT by the receiving party.

     (d)  Information which is subsequently and independently developed by
employees of the receiving party or AFFILIATES thereof who had no knowledge of
the confidential information disclosed.

                                                                         Page 11
<PAGE>   12

      6.3   EXCEPTIONS AND OTHER PROVISION RELATED TO CONFIDENTIAL INFORMATION

      A party may disclose Confidential Information of the other party:

      (a)   As required, in connection with the order of a court or other
governmental body; or

      (b)   As required by or in compliance with laws or regulations; or

      (c)   In confidence to accountants, banks and financing sources and their
advisors; or

      (d)   In confidence to consultants and advisors in connection with a
merger or acquisition or proposed merger or acquisition, or the like; or

      (e)   as may be required for purposes of investigating, developing,
manufacturing, having manufactured or marketing a HOMEBREW or its components
under this AGREEMENT or for securing essential or desirable authorizations,
privileges or rights from governmental agencies, or is required to be disclosed
to a governmental agency or is necessary to file or prosecute patent
applications concerning a HOMEBREW or its components which arises under this
AGREEMENT.

      The parties shall take reasonable measures to assure that no unauthorized
use or disclosure is made by others to whom access to such information is
granted.

      All Confidential Information disclosed by one party to the other shall
remain the intellectual property of the disclosing party. If a court or other
legal or administrative tribunal, directly or through an appointed master,
trustee or receiver, assumes partial or complete control over the assets of a
party to this AGREEMENT based on the insolvency or bankruptcy of such party,
the bankrupt or insolvent party shall promptly notify the court or other
tribunal (i) that Confidential Information received from the other party under
this AGREEMENT remains the property of the other party and (ii) of the
confidentiality obligations under this AGREEMENT. In addition, the bankrupt or
insolvent party shall, to the extent permitted by law, take all steps necessary
or desirable to maintain the confidentiality of the other party's Confidential
Information and to ensure that the court, other tribunal or appointee maintains
such information in confidence in accordance with the terms of this AGREEMENT.

      6.4   PUBLIC DISCLOSURE REGARDING THE TERMS OF THIS AGREEMENT OR HOMEBREW

      (a)   Except as otherwise required by law, each of the parties agree not
to disclose, directly or indirectly, by public announcement or other
disclosure, the existence, financial terms or conditions or any other terms of
this AGREEMENT to any THIRD PARTY without the prior written consent of the
other party regarding the nature and text of such announcement or disclosure.
The party desiring to make any such public announcement or other disclosure
shall inform the other party of the proposed announcement or

                                                                         Page 12

<PAGE>   13
disclosure in reasonably sufficient time prior to public release, and shall
provide the other party with a written copy thereof, in order to allow such
other party to comment upon such announcement or disclosure. Each party agrees
that it shall cooperate fully with the other with respect to all disclosures
regarding this AGREEMENT to the Securities Exchange Commission and any other
governmental or regulatory agencies, including requests for confidential
treatment of proprietary information of either party included in any such
disclosure.

     (b)  Notwithstanding the above, subject to any restrictions which may be
imposed by any governmental agency, including without limitation the Securities
and Exchange Commission, diaDexus and SBCL agree that a public announcement of
this AGREEMENT will be made within five (5) business days after the EFFECTIVE
DATE. Such announcement shall be drafted by diaDexus and SBCL jointly and shall
be mutually acceptable to diaDexus and SBCL.

     (c)  Neither party shall not submit for written or oral publication any
manuscript, abstract or the like which includes data or other information
relating to a HOMEBREW without first obtaining the prior written consent of the
other party, which consent shall not be unreasonably withheld. The contribution
of each party shall be noted in all publications or representations by
acknowledgment or coauthorship, whichever is appropriate.

7.   INDEMNIFICATION AND WARRANTIES

     7.1  INDEMNIFICATIONS

     (a)  Each party (the "indemnitor") shall defend, indemnify and hold
harmless the other party, its AFFILIATES, and its and their respective officers,
directors, employees, agents, successors and assigns (collectively the
"indemnitee") from any loss, damage, or liability, including reasonable
attorney's fees, resulting from any claim, complaint, suit, proceeding or cause
of action against any of them alleging misdiagnosis, physical or other injury,
including death, rising out of the provision of a HOMEBREW, or services
utilizing a HOMEBREW, to the injured party by the indemnitor, its AFFILIATES,
(or its permitted sublicensees); provided that:

     (b)  The indemnitor shall not be obligated under this Section 7.1 if it is
shown by evidence acceptable in a court of law having jurisdiction over the
subject matter and meeting the appropriate degree of proof for such action,
that the injury was the result of the negligence or willful misconduct of any
employee or agent of the indemnitee or the breach of any warrant or
representation made by the indemnitee in this AGREEMENT.

     (c)  The indemnitor shall have no obligation under this Section 7.1
unless the indemnitee (i) gives the indemnitor prompt written notice of any
claim or lawsuit or other action for which it seeks to be indemnified under
this AGREEMENT, (ii) the indemnitor is granted full authority and control over
the defense, including settlement against such

                                                                         Page 13
<PAGE>   14
claim or lawsuit or other action and (iii) the indemnitee cooperates fully with
the indemnitor and its agents in defense of the claims or lawsuit or other
action; and

     (d)  The indemnitee shall have the right to participate in the defense of
any such claim, complaint, suit, proceeding or cause of action referred to in
this Section 7.1 utilizing attorneys of its choice at its own expense,
provided, however, that the indemnitor shall have full authority and control to
handle any such claim, complaint, suit, proceeding or cause of action,
including any settlement or other disposition thereof for which the indemnitee
seeks indemnification under this Section 7.1.

     7.2  WARRANTIES AND REPRESENTATIVES

     (a)  (i)   Each party warrants and represents that it has the right to
enter into this AGREEMENT and to perform its obligations hereunder.

          (ii)  SB  and diaDexus each warrants and represents that it will not
encumber PATENTS and KNOW-HOW with liens, mortgages, security interests or
otherwise to the extent they are the owner or assignee of such PATENT and/or
KNOW-HOW.

          (iii) diaDexus further warrants and represents that there is nothing
in any THIRD PARTY agreement diaDexus has entered into as of the EFFECTIVE DATE
which, in any way, will limit diaDexus' ability to perform all of the
obligations undertaken by diaDexus hereunder, and that it will not enter into
any such agreement after the EFFECTIVE DATE under which diaDexus would incur
any such limitations.

          (iv)  Nothing in this AGREEMENT shall be construed as a warranty or
representation by diaDexus as to the validity of any patent claim or patent
within the PATENTS. Nothing in this AGREEMENT shall be construed as a warranty
or representation by diaDexus that any HOMEBREW made, used or imported, or any
service offered for sale or sold, pursuant to the rights and license granted
under this AGREEMENT is or will be free from infringement of any patent right
held by any THIRD PARTY.

          (v)  diaDexus warrants and represents that it has not, up through and
including the EFFECTIVE DATE, omitted to furnish SBCL with any information in
its possession concerning HOMEBREWS or the transactions contemplated by this
AGREEMENT, which would be material to SBCL's decision to enter into this
AGREEMENT and to undertake the commitments and obligations set forth herein.

     (b)  DIADEXUS GRANTS NO WARRANTIES WITH RESPECT TO THE PATENTS, KNOW-HOW
OR HOMEBREWS OR SERVICES UTILIZING HOMEBREWS, EXPRESS OR IMPLIED. EITHER IN
FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, AND DIADEXUS SPECIFICALLY
DISCLAIMS ANY IMPLIED WARRANTY OR QUALITY, WARRANTY OF MERCHANTABILITY,
WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE OR WARRANTY OF NONINFRINGEMENT.

                                                                        Page 14

<PAGE>   15
8. PATENT PROSECUTION, ENFORCEMENT AND DEFENSE

   8.1 INVENTIONS AND PROSECUTION

   (a) Each party shall have and retain sole and exclusive title to all
inventions, discoveries and know-how which are made, conceived, reduced to
practice or generated by its employees, agents, or other persons acting under
its authority in the course of or as a result of this AGREEMENT. Each party
shall own a fifty percent (50%) undivided interest in all such inventions,
discoveries and KNOW-HOW made, conceived, reduced to practice or generated
jointly by employees, agents, or other persons acting under the authority of
both parties in the course of or as a result of this AGREEMENT. Except as
expressly provided in this AGREEMENT, each joint owner may make, use, sell,
keep, license, assign, or mortgage such jointly owned inventions, discoveries
and know-how, and otherwise undertake all activities a sole owner might
undertake with respect to such inventions, discoveries and know-how, without
the consent of and without accounting to the other joint owner.

   (b) diaDexus warrants and represents that it will promptly disclose to SBCL
the complete texts of all PATENTS filed by diaDexus which relate to a HOMEBREW
or its components to which SBCL holds exclusive rights hereunder as well as all
information received after the EFFECTIVE DATE concerning the institution or
possible institution of any interference, opposition, re-examination, reissue,
revocation, nullification or any official proceeding involving such PATENT
anywhere in the TERRITORY. SBCL shall have the right to review all such pending
applications and other proceedings and make recommendations to diaDexus
concerning them and their conduct. diaDexus agrees to keep SBCL promptly and
fully informed of the course of patent prosecution or other proceedings
including by providing SBCL with copies of substantive communications, search
reports and third party observations submitted to or received from patent
offices throughout the TERRITORY. SBCL shall provide such patent consultation
to diaDexus at no cost to diaDexus. SBCL shall hold all information disclosed
to it under this section as confidential subject to the provisions of Section
6.2.

   (c) During the term of this AGREEMENT, the filing, prosecution and
maintenance of PATENTS listed on part A of Exhibit A are governed by the
COLLABORATION AND LICENSE AGREEMENT until diaDexus has assumed such PATENTS
under Paragraph 14.3 of the COLLABORATION AND LICENSE AGREEMENT.

   (d) During the term of this AGREEMENT, diaDexus shall, at its expense and in
its sole discretion, file, prosecute and maintain all other PATENTS. During the
term of the AGREEMENT in which SBCL has an exclusive right to a HOMEBREW under
such PATENTS and KNOW-HOW, SBCL shall have the right, but not the obligation,
to assume responsibility for any such PATENT or any part of such PATENT which
diaDexus intends to abandon or otherwise cause or allow to be forfeited.
diaDexus shall give SBCL reasonable written notice prior to abandonment or
other forfeiture of any such PATENT or any part of such PATENT so as to permit
SBCL to exercise its rights under this Section.

                                                                        Page 15
<PAGE>   16
     8.2  ENFORCEMENT

     (a)  During the term of this AGREEMENT, enforcement of PATENTS listed on
part A of Exhibit A are governed by the COLLABORATION AND LICENSE AGREEMENT
until diaDexus has assumed such PATENTS under Paragraph 14.3 of the
COLLABORATION AND LICENSE AGREEMENT. For all other PATENTS:

     (b)  If either diaDexus or SBCL determines that a THIRD PARTY is making,
using, offering for sale, selling or importing a HOMEBREW or its components or
that may infringe PATENTS in the TERRITORY, the party that has made such
determination will notify the other party promptly in writing.

     (c)  diaDexus, in its own name or jointly with SBCL if required by law, at
diaDexus' expense, shall have the first right, at diaDexus' election, but no
obligation to (i) bring and prosecute actions, proceedings, suits and
countersuits for enforcement of PATENTS covering a HOMEBREW or its components
or HOMEBREW in the TERRITORY, and/or (ii) settle any claim or demand, including
without limitation any suit, for enforcement of PATENTS covering a HOMEBREW or
its components or HOMEBREW in the TERRITORY. If diaDexus elects to bring any
action, proceeding, suit or countersuit for infringement of PATENTS covering a
HOMEBREW or its components of HOMEBREW in the relevant country of the
TERRITORY, diaDexus shall direct and control such action, proceeding, suit or
countersuit and shall provide prompt and regular updates to SBCL of diaDexus'
intentions and progress toward resolution of such action, proceeding, suit or
countersuit.

     (d)  If diaDexus brings any action, proceeding, suit or countersuit to
enforce rights within PATENTS covering a HOMEBREW or its components or HOMEBREW
in the TERRITORY against any infringer pursuant to Section 8.2(c), SBCL, at its
expenses, shall cooperate with diaDexus in connection with such action,
proceeding, suit or countersuit, including without limitation by joining as a
party if necessary and appropriate, and executing such documents as diaDexus
may reasonably request. diaDexus and SBCL shall recover their respective actual
out-of-pocket expenses, or equitable proportions thereof, associated with any
litigation or settlement thereof from any recovery made by any party.

     (e)  If diaDexus does not commence an action, proceeding or suit against a
THIRD PARTY to enforce any rights within PATENTS covering a HOMEBREW or its
components or HOMEBREW in the TERRITORY, or does not otherwise take action to
abate infringement of PATENTS by a THIRD PARTY in the TERRITORY, within 30 days
after giving or receiving notice thereof, pursuant to Section 8.2(b), and
thereafter pursues such action or proceeding diligently, SBCL, at SBCL's
expense, shall have a right but not an obligation to commence or take control
of such action, proceeding or suit. In the event that SBCL elects to commence
or take control of any action, proceeding or suit pursuant to this Section
8.2(e), diaDexus, at diaDexus' expense, shall cooperate with SBCL in connection
with such action, proceeding or suit, including without limitation by joining
as a party if necessary and appropriate, and executing such documents as SBCL
may

                                                                         Page 16
<PAGE>   17
reasonably request, diaDexus and SBCL shall recover their respective actual
out-of-pocket expenses, or equitable proportions thereof, associated with any
litigation or settlement thereof from any recovery made by any party.

     8.3  DEFENSE

     (a)  During the term of this AGREEMENT, defense of PATENTS listed on part
A of Exhibit A are governed by the COLLABORATION AND LICENSE AGREEMENT until
diaDexus has assumed such PATENTS under Paragraph 14.3 of the COLLABORATION AND
LICENSE AGREEMENT. For all other PATENTS:

     (b)  SBCL shall defend or, at SBCL's option, settle, at SBCL's expense,
any action, proceeding, suit or claim brought against SBCL on the issue of
infringement by it or its AFFILIATES making, having made, using or importing a
HOMEBREW, or for offering for sale, selling or performing HOMEBREW, in the
TERRITORY; provided, however, that SBCL shall not settle any such action,
proceeding, suit or claim which would adversely affect the scope and/or
validity of PATENTS without the express prior written consent of diaDexus.

9.   TERM AND TERMINATION

     9.1  TERM -- INITIAL AND EXTENDED.

     (a)  The initial term of this AGREEMENT will commence on the EFFECTIVE
DATE and shall remain in full force and effect until the fifth (5) year
anniversary of the EFFECTIVE DATE, unless terminated at an earlier date in
accordance with the terms and conditions of this Section 9 or as otherwise
provided in Section 5.5.

     (b)  Notwithstanding the above, SBCL, at any time during the fifth year
after the EFFECTIVE DATE or any extension year, upon written notice to
diaDexus, may extend the term of this AGREEMENT for up to 3 additional periods
of 1 year each; provided that this AGREEMENT has not expired or terminated
prior to the date of diaDexus' receipt of any such written notice of extension.
If SBCL still has an exclusive license under PATENTS and KNOW-HOW under Section
2.1 at the time SBCL provides such notice to diaDexus, the terms and conditions
of each and any such extension shall be, at diaDexus' option and discretion,
either (i) an exclusive license in accordance with Section 2.1 above, or (ii) a
non-exclusive license in accordance with Section 2.2 above.

     9.2  TERMINATION FOR MATERIAL BREACH OR DEFAULT.

     (a)  Either diaDexus or SBCL may terminate this AGREEMENT in the event of
a material breach of or default under this AGREEMENT by the other party.

     (b)  The effective date of termination of this AGREEMENT for material
breach or default shall be the date of receipt by the breaching party of
written notice of termination of this AGREEMENT by the non-breaching party,
such written notice to be provided at any time after 90 days after the date of
a written notice by the non-breaching

                                                                       Page 17
<PAGE>   18
party to the breaching party of a material breach or default, unless the
breaching party shall have cured such breach or default within such 90-day
period.

     9.3   AT-WILL TERMINATION

     SBCL may terminate this AGREEMENT on a country by country basis, at any
time upon one hundred twenty (120) days prior written notice to diaDexus.

     9.4  BANKRUPTCY

     (a)  Either party may terminate this AGREEMENT if, at any time, the other
party shall file in any court or agency pursuant to any statute or regulation of
any state or country, a petition in bankruptcy or insolvency or for
reorganization or for an arrangement or for the appointment of a receiver or
trustee of the party or of its assets, or if the other party shall be served
with an involuntary petition against it, filed in any insolvency proceeding, and
such petition shall not be dismissed within sixty (60) days after the filing
thereof, or if the other party shall propose or be a party to any dissolution or
liquidation, or if the other party shall make an assignment for the benefit of
creditors.

     (b)  Notwithstanding the bankruptcy of diaDexus, or the impairment of
performance by diaDexus of its obligations under this AGREEMENT as a result of
bankruptcy or insolvency of diaDexus, SBCL shall be entitled to retain the
licenses granted herein, subject to diaDexus' rights to terminate this AGREEMENT
for reasons other than bankruptcy or insolvency as expressly provided in this
AGREEMENT.

     (c)  All rights and distribution rights granted under or pursuant to this
AGREEMENT by diaDexus to SBCL are, and shall otherwise be deemed to be, for
purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of rights to
"intellectual property" as defined under Section 101(52) of the U.S. Bankruptcy
Code. The parties agree that SBCL, as a licensee of such rights under this
AGREEMENT, shall retain and may fully exercise all of its rights and elections
under the U.S. Bankruptcy Code, subject to performance by SBCL of its
preexisting obligations under this AGREEMENT. The parties further agree that, in
the event of the commencement of a bankruptcy proceeding by or against diaDexus
under the U.S. Bankruptcy Code, SBCL shall be entitled to a complete duplicate
of (or complete access to, as appropriate) any such intellectual property and
all embodiments of such intellectual property, and same, if not already in its
possession, shall be promptly delivered to SBCL (i) upon any such commencement
of a bankruptcy proceeding upon written request therefor by SBCL, unless
diaDexus elects to continue to perform all of its obligations under this
AGREEMENT, or (ii) if not delivered under (i) above, upon the rejection of this
AGREEMENT by or on behalf of diaDexus upon written request therefor by SBCL;
provided, however that upon diaDexus' (or its successor's) written notification
to SBCL that it is again willing and able to perform all of its obligations
under this AGREEMENT, SBCL shall promptly return all such tangible materials to
diaDexus, but only to the extent that SBCL does not require continued access to
such materials to enable SBCL to perform its obligations under this AGREEMENT.

                                                                         Page 18

<PAGE>   19
     9.5  EFFECT OF EXPIRATION OR TERMINATION

     (a)  Upon termination of this AGREEMENT, diaDexus shall have the right to
retain any sums already paid by SBCL hereunder, and SBCL shall pay all sums
accrued hereunder which are then due.

     (b)  Termination of this AGREEMENT in its entirety shall terminate all
outstanding obligations and liabilities between the parties arising from this
AGREEMENT except those described in Sections 4, 6.2, 7, 9.5, and 10.  In
addition, any other provision required to interpret and enforce the parties'
rights and obligations under this AGREEMENT shall also survive, but only to the
extent required for the full observation and performance of this AGREEMENT.

     (c)  Termination of the AGREEMENT in accordance with the provisions hereof
shall not limit remedies which may be otherwise available in law or equity.

10.  MISCELLANEOUS PROVISIONS

     10.1  GOVERNING LAW

     This AGREEMENT shall be governed by, and construed and interpreted in
accordance with, the law of the State of Delaware, without reference to conflict
of laws principles.

     10.2  ASSIGNMENT

     The rights and liabilities of the parties hereto will bind and inure to the
benefit of their successors, executors or administrators; provided that, neither
party may assign or delegate any right or obligation under this AGREEMENT,
either in whole or in part, to any entity, without the express prior written
consent of the other party; provided, however, that either party may assign this
AGREEMENT or any part of its rights and obligations hereunder to any AFFILIATE
or to any corporation with which it may merge or consolidate, or to which it may
transfer all or substantially all of its assets to which this AGREEMENT relates,
without obtaining the consent of the other party. Any permitted assignee or
transferee shall agree in writing to comply with all the terms and conditions
contained in this AGREEMENT. Any attempted assignment in violation of the
provisions of this Section 10.2 will be void.

     10.3  ENTIRE AGREEMENT

     This AGREEMENT and the COLLABORATION AND LICENSE AGREEMENT constitutes the
entire and exclusive agreement between the parties with respect to the subject
matter hereof and supercedes and cancels all previous registrations, agreements,
commitments and writings in respect thereof so far as the subject matter of this
AGREEMENT is concerned. As between the parties to this AGREEMENT, in the event
of conflict between the terms of this AGREEMENT and the COLLABORATION AND
LICENSE AGREEMENT the

                                                                        Page 19
<PAGE>   20
terms of this AGREEMENT shall prevail. This AGREEMENT shall not act in any way
to modify or amend the terms and conditions of the COLLABORATION AND LICENSE
AGREEMENT.

     10.4 MODIFICATION

     No modification to this AGREEMENT shall be effective unless consented to
in writing by the party to be charged.

     10.5 WAIVER

     No waiver of any rights shall be effective unless consented to in writing
by the party to be charged and the waiver of any breach of default shall not
constitute a waiver of any other right hereunder or any subsequent breach or
default.

     10.6 NOTICES

     Any notice, request, approval or other document required or permitted to
be given under this AGREEMENT shall be in writing and shall be deemed to have
been given when delivered in person, or sent by overnight courier service,
postage prepaid, or sent by certified or registered mail, return receipt
requested, or by facsimile transmission, to the following addresses of the
parties (or to such other address or addresses as may be specified from time to
time in written notice). Any notices given pursuant to this AGREEMENT shall be
deemed to have been given and delivered upon the earlier of (i) if sent by
overnight courier service, on the date when received at the address set forth
below as proven by a written receipt from the delivery service verifying
delivery, or (ii) if sent by certified or registered mail, three (3) business
days after mailed by certified or registered mail postage prepaid and properly
addressed, with return receipt requested, or (iii) if sent by facsimile
transmission, on the day when sent by facsimile as confirmed by automatic
transmission report coupled with certified or registered mail or overnight
courier service receipt proving delivery, or (iv) if delivered in person, on
the date of delivery to the address set forth below as proven by written
signature of the recipient.

     diaDexus

     diaDexus, LLC
     3303 Octavius Drive
     Santa Clara, California 95054
     Attention: Chief Executive Officer

     SBCL

     SmithKline Beecham Clinical Laboratories
     1201 South Collegeville Road
     Collegeville, Pennsylvania 19426
     Attention: President

                                                                         Page 20
<PAGE>   21

     copies to:

     SmithKline Beecham Corporation
     One Franklin Plaza (Mail Code FP2225)
     P.O. Box 7929
     Philadelphia, Pennsylvania 19101, U.S.A.
     Attention: Corporate Law-U.S.

     10.7 DESCRIPTIVE HEADINGS

     The headings of the several sections of this AGREEMENT are intended for
convenience of reference only and are not intended to be a part of or to affect
the meaning or interpretation of this AGREEMENT.

     10.8 COUNTERPARTS

     This AGREEMENT may be executed in counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
instrument.

     10.9 TRADEMARKS

     SBCL and diaDexus shall jointly be responsible for the selection of all
trademarks and service marks which SBCL, its AFFILIATES, and sublicensees
employ in connection with a HOMEBREW in the TERRITORY and shall jointly own and
control such marks. The parties shall jointly control prosecution and
maintenance of such marks and the parties shall equally share the related costs
and expenses fully.

     10.10 FORCE MAJEURE

     If the performance of any part of this AGREEMENT by either party, or of
any obligation under this AGREEMENT, is prevented, restricted, interfered with
or delayed by reason of any cause beyond the reasonable control of the party
liable to perform, unless conclusive evidence to the contrary is provided, the
party so affected shall, upon giving written notice to the other party, be
excused from such performance to the extent of such prevention, restriction,
interference or delay, provided that the affected party shall use its
reasonable best efforts to avoid or remove such causes of non-performance and
shall continue performance with the utmost dispatch whenever such causes are
removed. When such circumstances arise, the parties shall discuss what, if any,
modification of the terms of this AGREEMENT may be required in order to arrive
at an equitable solution.

     10.11 SEPARABILITY

     (a)  If any portion of this AGREEMENT shall be held illegal, void or
ineffective, the remaining portions hereof shall remain in full force and
effect.

     (b)  If any of the terms or provisions of this AGREEMENT are in conflict
with any applicable statute or rule of law, then such terms or provisions shall
be deemed

                                                                         Page 21

<PAGE>   22

inoperative to the extent that they may conflict therewith and shall be deemed
to be modified to conform with such statute or rule of law.

     (c)  If the terms and conditions of this AGREEMENT are materially altered
as a result of Sections 10.11(a) or 10.11(b), the parties will renegotiate the
terms and conditions of this AGREEMENT to resolve any inequities.

     10.12 RECORDING

     SBCL shall have the right, at any time, to record, register, or otherwise
notify this AGREEMENT in appropriate governmental or regulatory offices
anywhere in the TERRITORY, and diaDexus shall provide reasonable assistance to
SBCL in effecting such recording, registering or notifying.

     IN WITNESS WHEREOF, the undersigned are duly authorized to execute this
AGREEMENT on behalf of diaDexus and SBCL, as applicable.

diaDexus, LLC                             SMITHKLINE BEECHAM CLINICAL
("diaDexus")                              LABORATORIES, INC.
                                          ("SBCL")

By:  /s/ [Signature Illegible]            By:  /s/ [Signature Illegible]
   -----------------------------             -----------------------------
Title:  President & CEO                   Title:  President
       -------------------------                 -------------------------
Date:   6 Feb 99                          Date:   10 Feb 99
     ---------------------------               ---------------------------

EXECUTION                                                                Page 22

<PAGE>   23

                               LICENSE AGREEMENT

             SMITHKLINE BEECHAM CLINICAL LABORATORIES-DIADEXUS, LLC

                                   EXHIBIT A

                                    PATENTS

Part a: ******  Patent Family
---------------------------------------------------------------------------
COUNTRY        APPLICATION #       FILING DATE         STATUS/PATENT #
---------------------------------------------------------------------------
USA            ******              16 Sept 1996        US Patent 5.747.264

                                                       Issued 5 May 98
---------------------------------------------------------------------------
USA            ******              20 June 1997        Pending

---------------------------------------------------------------------------
USA            ******              January 1999        Pending

---------------------------------------------------------------------------
CANADA         ******                                  Pending

---------------------------------------------------------------------------
EPO            ******              31 July 1997        Pending

---------------------------------------------------------------------------
JAPAN          ******                                  Pending

---------------------------------------------------------------------------
S. AFRICA      ******              31 July 1997        97/6814

                                                       Issued

                                                       27 May 1998
---------------------------------------------------------------------------
PCT            ******              31 July 1997        02 February 1999 is
                                                       the 30th month.
                                                       National Phase
---------------------------------------------------------------------------

***** Certain information on this page has been omitted and filed separately
      with the Securities and Exchange Commission. Confidential treatment has
      been requested with respect to the omitted portions.

                                                                     Page 23
<PAGE>   24

---------------------------------------------------------------------------
                                                       Entry Requests
                                                       Japan, Canada EP

---------------------------------------------------------------------------

        ******  Patent Family
---------------------------------------------------------------------------
COUNTRY        APPLICATION #       FILING DATE         STATUS/PATENT #

---------------------------------------------------------------------------
USA            ******              2/23/98             Pending

---------------------------------------------------------------------------
USA            ******              7/8/98              Pending

---------------------------------------------------------------------------
USA            ******              10/20/98            Pending

---------------------------------------------------------------------------
PCT            ******              2/23/99             Pending

---------------------------------------------------------------------------

***** Certain information on this page has been omitted and filed separately
      with the Securities and Exchange Commission. Confidential treatment has
      been requested with respect to the omitted portions.

                                                                    Page 24

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