Exhibit
10.5


GUARANTY


The undersigned, deCODE
Genetics, Inc. and MediChem Life Sciences, Inc. (collectively “Guarantor”), to induce Woodridge Holdings
LLC (“Landlord”) to execute that certain Lease Agreement between Landlord and deCODE Chemistry, Inc. (“Tenant”) dated
as of June 8, 2007 (the “Lease”) and as a material consideration and
inducement therefore (recognizing that without execution of this guaranty, Landlord would not be
wiling to enter into or make the Lease with Tenant and recognizing that since Tenant is affliated
with Guarantor, the Lease is of direct benefit to Guarantor) hereby
unconditionally guarantees the performance and observance by Tenant of all the
obligations, covenants and agreements provided in the Lease, as same may be
amended from time to time, to be performed
or observed by Tenant during the term of the Lease (including specifically and
without limiting the generality
of the foregoing, payment by Tenant of all rent and other amounts which may be
or become due from Tenant under the Lease).


This
Guaranty is an absolute and unconditional Guaranty of payment and performance.
It shall be enforceable
against the Guarantor without the necessity for any suit or proceedings on the
Landlord’s part of any kind or
nature whatsoever against the Tenant and without the necessity of any notice of
non-payment, non-performance or
non-observance or of any notice of acceptance of this Guaranty or of any other
notice or demand to which the Guarantor might otherwise be entitled, all of
which the Guarantor hereby expressly waives. The Guarantor hereby expressly
agrees that the validity of this Guaranty and the obligations of the Guarantor
hereunder shall in no manner be terminated, affected, diminished or impaired by
reason of the assertion or the failure to assert by the Landlord against the Tenant of any of the rights or remedies
reserved to the Landlord pursuant to the provisions of the Lease.


This
Guaranty shall be a continuing Guaranty, and the liability of the Guarantor
hereunder shall in no way be affected, modified or diminished by reason
of any assignment, renewal, modification or waiver of or change in any of the
terms, covenants, conditions or provisions of the Lease, or the reason of any extension of time that may be granted by the
Landlord to the Tenant or by reason of any dealings or transactions or matter
or thing occurring between the Landlord and the Tenant whether or not notice thereof is given to the Guarantor.
Furthermore, this Guaranty shall not be revoked by the banptcy or insolvency of the Tenant.


All of the Landlord’s rights and remedies under the
Lease and under this Guaranty are intended to be distinct, separate and
cumulative and no such right and remedy therein or herein mentioned is intended
to be in exclusion of or a waiver of any of the others.


This Guaranty shall inure to the benefit of the
Landlord, its successors and assigns and shall be binding on the successors and assigns of the
Guarantor. If there is more than one guarantor included



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within the definition of
Guarantor as that term is used herein, all obligations and terms imposed upon Guarantor by this guaranty agreement shall be
joint and several as to all of such guarantors. This Guaranty shall be governed by, and construed
in accordance with, the laws of the State of Ilinois.


	
  Dated: June 8, 2007.

  	
   

  	
  GUARANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  deCODE Genetics,
  Inc.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Lance Thibault

  	
   

  
	
   

  	
   

  	
  Title:

  	
  CFO and
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MediChem Life
  Sciences, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Chris Tauer

  	
   

  
	
   

  	
   

  	
  Title:

  	
  US Controller

  	
   

  
								



 



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