LYNX THERAPEUTICS, INC.





                               EMPLOYEE AGREEMENT

                                       FOR

                            THOMAS J. VASICEK, PH.D.





        This Employment Agreement ("Agreement") by and between Thomas J.

Vasicek, Ph.D. ("Executive") and LYNX THERAPEUTICS, INC., a Delaware corporation

(the "Company"), is entered into and is effective as of June 10, 2002 (the

"Effective Date").



        WHEREAS, the Company desires to employ Executive to provide personal

services to the Company, and wishes to provide Executive with certain

compensation and benefits in return for his services; and



        WHEREAS, Executive wishes to be employed by the Company and provide

personal services to the Company in return for certain compensation and

benefits;



        NOW, THEREFORE, in consideration of the mutual promises and covenants

contained herein, it is hereby agreed by and between the parties hereto as

follows:



        1. EMPLOYMENT BY THE COMPANY.



               1.1 Subject to the terms set forth herein, the Company agrees to

employ Executive in the position of Vice President, Business Development,

reporting to the President and Chief Executive Officer, and Executive hereby

accepts such employment effective as of June 17, 2002. During the term of his

employment with the Company, Executive will devote his best efforts and

substantially all of his business time and attention (except for vacation

periods permitted by the Company's general employment policies, reasonable

periods of illness or other incapacities permitted by the Company's general

employment policies, and as otherwise provided herein) to the business of the

Company.



               1.2 Executive shall serve in an executive capacity and shall

perform such duties as are customarily associated with his then current title.



               1.3 The employment relationship between the parties is "at will,"

which means that either party may terminate the relationship at any time , with

or without cause and with or without advance notice. The employment relationship

between the parties shall also be governed by the general employment policies

and practices of the Company, including those relating to protection of

confidential information and assignment of inventions, except that when the

terms of this Agreement differ from or are in conflict with the Company's

general employment policies or practices, this Agreement shall control.



        2. COMPENSATION.



               2.1 SALARY. Executive shall receive for services to be rendered

hereunder an annualized base salary of Two Hundred Thousand U.S. Dollars

($200,000), payable on the







                                       1.

{PAGE}

Company's normal payroll schedule, and subject to standard payroll deductions

and withholdings. On the date that is one year after the Effective Date of this

Agreement, provided that Executive's performance meets the Company's reasonable

expectations, Executive's annualized base salary will increase to Two Hundred

Forty Thousand U.S. Dollars ($240,000).



               2.2 SIGN-ON BONUS. The Company will pay you a sign-on bonus of

$15,000 subject to all required withholdings. This sign-on bonus must be repaid

to the Company on a pro-rata basis if your employment terminates prior to one

year of service.



               2.3 STOCK OPTION. Subject to approval by the Board, the Company

will grant Executive a nonstatutory stock option (the "Option") to purchase One

Hundred Twenty Thousand (120,000) shares of the common stock of the Company (the

"Common Stock") pursuant to the Company's 1992 Stock Option Plan (the "Plan"),

as amended. The exercise price per share of the Option will be the Fair Market

Value (as defined in the Plan) per share of the Common Stock on the date of

grant. Except as otherwise provided herein, the Option will vest and become

exercisable over five (5) years, with Twenty Percent (20%) of the shares covered

by the Option vesting and becoming exercisable on the first year anniversary of

the date of grant and the remaining Eighty Percent (80%) of the shares covered

by the Option vesting and becoming exercisable in Forty-Eight (48) equal monthly

installments thereafter, in accordance with the Company's standard vesting and

exercisability policy, as long as the Executive remains in continuous service

with the Company. The Option will be subject to the terms of the Plan and

Executive's corresponding Stock Option Grant Notice and Stock Option Agreement.



               2.4 TRANSACTION BONUS. For the period beginning on the Effective

Date of this Agreement and ending on the date that is one year after the

Effective Date (the "Transaction Bonus Period"), Executive shall be eligible to

receive, for identifying and completing during the Transaction Bonus Period any

transactions between third parties and the Company (a "Transaction"), a cash

bonus equal to one percent (1%) of the cash proceeds received by the Company

from any Transaction during the Transaction Bonus Period (the "Transaction

Bonus"). The Transaction Bonus payable under this provision, if any, shall be

paid within thirty (30) days after the Transaction is ratified by the Company,

less any deductions or withholdings required by law or reasonably requested by

Executive. Executive must be employed at the time that the Transaction Bonus is

paid to receive such Transaction Bonus, unless the Company has terminated

Executive's employment for a reason other than cause.



               2.5 STANDARD COMPANY BENEFITS. Executive shall be entitled to all

rights and benefits for which he is eligible under the terms and conditions of

the standard Company benefits and compensation practices which may be in effect

from time to time and provided by the Company to its employees generally,

including but not limited to health benefit plans. Executive also shall be

eligible to participate in the Company's 401(k) Plan, including eligibility for

a monthly matching contribution by the Company on Executive's behalf, in an

amount equal to that contributed by Executive up to a maximum annual matching

contribution of Seven Hundred Fifty Dollars ($750). Executive shall be provided

specific information concerning these Company benefits upon commencement of his

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