Document:

ex10-50

 

Exhibit 10.50

	 	*** TEXT OMITTED AND FILED SEPARATELY

        CONFIDENTIAL TREATMENT REQUESTED

        UNDER 17 C.F.R. §§ 200.80(b)(4) AND 240.24b-2

Amended and Restated Agreement

Gene Logic Inc.

Affymetrix, Inc.

1

 

CONTENTS

	 	 	 	 	 	 	 	 	 
	1	 	 	Introduction
	 	 	-3-	 
	2	 	 	Definitions
	 	 	-3-	 
	3	 	 	Probe Array Supply
	 	 	-7-	 
	4	 	 	Affymetrix Proprietary Rights
	 	 	-12-	 
	5	 	 	Compensation
	 	 	-12-	 
	6	 	 	Intellectual Property
	 	 	-16-	 
	7	 	 	Project Coordination
	 	 	-17-	 
	8	 	 	Confidentiality
	 	 	-17-	 
	9	 	 	Warranty
	 	 	-18-	 
	10	 	 	Indemnity
	 	 	-19-	 
	11	 	 	Term and Termination
	 	 	-19-	 
	12	 	 	Dispute Resolution
	 	 	-20-	 
	13	 	 	Miscellaneous
	 	 	-20-	 
	Exhibit A
	 
	 	 	-25-	 
	Exhibit B
	 
	 	 	-26-	 
	Exhibit C
	 
	 	 	-27-	 
	Exhibit D
	 
	 	 	-28-	 
	Exhibit E
	 
	 	 	-29-	 
	Exhibit F
	 
	 	 	-30-	 
	Exhibit G
	 
	 	 	-31-	 
	Exhibit H
	 
	 	 	-32-	 
	Exhibit I
	 
	 	 	-33-	 

2

 

AGREEMENT

This agreement (“Agreement”) is effective as of January 1, 2002 (“Effective
Date”) between Affymetrix, Inc. (“Affymetrix”) a Delaware corporation having
its principal place of business at 3380 Central Expressway, Santa Clara,
California 95051, and Gene Logic Inc., a Delaware corporation having its
principal place of business at 708 Quince Orchard Road, Gaithersburg, Maryland,
20878 (“Gene Logic”).

	 	 	 
	1	 	
Introduction
	1.1	 	
Affymetrix has research, development, and manufacturing capabilities and
facilities, and has developed certain rights relevant to DNA probe array
based technology.
	1.2	 	
Gene Logic has research and development capabilities, and facilities to
conduct research and development activities for the generation of
databases useful in life sciences research.
	1.3	 	
Affymetrix and Gene Logic desire to enter into an agreement whereby
Affymetrix will supply Gene Logic and/or its Subsidiaries with DNA probe
arrays for use in Gene Logic’s and/or its Subsidiaries’ development of
database products and services.
	1.4	 	
In consideration of the mutual covenants and promises contained in this
Agreement, Affymetrix and Gene Logic agree as follows:
	 
	2	 	Definitions
	2.1	 	
“Affiliate” shall mean any corporation, company, partnership, joint
venture and/or firm which is controlled by or controls a Party or is under
common control with a Party, but only for so long as such Affiliate
remains an Affiliate of a Party, and only if such Affiliate is bound by
the terms of this Agreement. For purposes of this Section, “control”
shall mean, in the case of corporations (or equivalents of corporations),
direct or indirect ownership of more than 50% of the stock having the
right to vote for directors of such corporation or, in the case of
partnerships, more than 50% of the ownership interest in such partnership.
The Parties agree that MetriGenix, Inc. shall not be considered an
Affiliate of Gene Logic for the purposes of this Agreement.
	2.2	 	
“Affiliate’s Area of Interest” shall mean the use of Probe Arrays or data
therefrom as a research tool to generate gene expression data for
Affiliate’s internal research and development activities.
	2.3	 	
“Chip Improvement Inventions” shall mean all inventions for which patent
applications are filed that are conceived or first reduced to practice by
an employee or contractor of a Party or its Affiliates resulting from
design or use of the Probe Arrays supplied hereunder, and specifically
those relating to probe array manufacturing techniques, probe array
layouts, probe array packaging techniques, probe array assay techniques
[...***...], and probe array software analysis techniques [...***...], but
not including software analysis techniques for later processing of such
data. It is to be understood that inventions made independently of design
or use of Probe Arrays (such as those inventions made in the course of
design or use of Gene Logic’s proprietary technologies or other
non-Affymetrix technologies) are not Chip Improvement Inventions within
the meaning of this Agreement. Chip Improvement Inventions shall further
not include any other inventions that are conceived of or reduced to
practice by an employee or contractor of a Party or its Affiliates
including, for example, expression data or discoveries resulting
therefrom, targets identified through the use of the
Probe Arrays, or correlations between genetic sequences and function.

3

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 
	2.4	 	
“Committee” shall mean the individuals designated by Gene Logic and
Affymetrix to serve on a coordinating committee as outlined in Section 7.
	2.5	 	
“Confidential Information” shall mean all information and materials,
patentable or otherwise, of a Party disclosed by or on behalf of such
Party to the other Party and which derive value to a Party from not being
generally known, including, but not limited to DNA sequences, vectors,
cells, substances, formulations, techniques, methodology, equipment, data,
reports, know-how, trade secrets, preclinical and clinical trials and the
results thereof, sources of supply, patent positioning, and business
plans, including any negative developments. Without limiting the
foregoing, the Parties confirm their understanding that Chip Improvement
Inventions are deemed by the Parties to be the Confidential Information of
Affymetrix and that Gene Logic may not publish, disclose, divulge or
otherwise communicate to third parties Chip Improvement Inventions without
the prior written approval of Affymetrix which must be obtained.
	2.6	 	
“Custom Probe Array” means, except where otherwise set forth herein, a
custom Probe Array, based on Target Sequences submitted by Gene Logic,
sold by Affymetrix only to Gene Logic and/or its Affiliates hereunder.
	2.7	 	
“Database” shall mean a collection of Datapoints derived from a Probe
Array which is made available for license broadly in whole or in part for
use to derive additional information.
	2.8	 	
“Datapoint” shall mean a Gene represented on a Probe Array and comprises
all probe pairs on the array that represent the Gene.
	2.9	 	
“Demonstration Database” shall refer to a database of gene expression
data that contains no more than the applicable maximum number of
Datapoints. [...***...]
	2.10	 	
“Fabrication Verification Criteria” shall mean Affymetrix’ then current
quality control criteria for the applicable Probe Arrays.
	2.11	 	
“Gene” shall refer to a nucleic acid sequence encoding a distinct RNA. A
Gene may be represented by a partial nucleic acid sequence representing an
expressed sequence tag (EST). Multiple ESTs from the same Gene are
considered a single Gene. Polymorphic variants of a nucleic acid sequence
are considered a single Gene, provided that such polymorphic variants must
have at least [...***...] homology with the underlying Gene. If a nucleic
acid sequence encodes multiple distinct RNAs due to alternative splicing,
each alternative internal splice variant is considered a distinct Gene.
	2.12	 	
“Gene Logic’s Area Of Interest” shall mean the use of Probe Arrays as a
research tool to generate gene expression data for a) generating databases
for license to third parties for value; and b) performing Services; and c)
performing Tox Services; and d) Gene Logic’s internal research and
development activities.
	2.13	 	
“Genetic Inventions” shall mean all genetic sequence (including related
protein) and function inventions discovered by Gene Logic through the use
of an Probe Array data including, without limitation, any invention which
is covered by an issued patent that contains data from the Probe Array
data or was supported during patent prosecution by data obtained from the
Probe Array data.
	2.14	 	
“Lot” shall refer to the standard minimum quantities Probe Arrays are
made available to third parties, as set forth in Affymetrix’ price list
and specifications.
	2.15	 	
“Net Sales” shall mean the aggregate United States Dollar equivalent of
gross revenues
derived by or payable to Gene Logic or its Subsidiaries for or on account
of the license of

4

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 
	 	 	
Databases, including Databases sold or licensed as part
of a system, package, or combination product, to third parties including
Subsidiaries where such Databases are not for re-license or resale, less
a) credits or allowances, if any, actually granted on account of price
adjustments, recalls, rejections, or return of items previously sold, b)
prompt payment or actual trade or quantity discounts actually allowed and
taken, c) excises, sales taxes, value added taxes, consumption taxes,
duties, foreign withholding tax actually withheld, or other taxes imposed
upon and paid with respect to such sales (excluding income or franchise
taxes of any kind) and d) insurance and delivery costs actually incurred.
No deduction shall be made for any item of cost incurred by Gene Logic or
its Subsidiaries in preparing, manufacturing, shipping, or selling
Databases except as permitted pursuant to a), b), c) and d) above. Net
Sales shall not include any transfer between Gene Logic and any of its
Subsidiaries for re-license or resale. If Gene Logic or a Subsidiary
licenses or sells to or through a distributor (which is not an Affiliate
or Subsidiary of Gene Logic), Net Sales shall be the gross revenues
received by Gene Logic and/or the applicable Subsidiary from the license
of the Database to such distributor. Any such distributor arrangement
must be under reasonably conventional distributor terms. In the event
that Gene Logic or any of its Subsidiaries licenses a Database to third
parties for other than monetary value (including without limitation an
equity transaction) in whole or in part, such transfer shall be
considered a license hereunder for accounting and royalty purposes. Net
Sales for any such transfers shall be determined on a country-by-country
basis and shall be equal to the higher of the fair market value of such
non-monetary consideration, or the average price of arms length licenses
by Gene Logic or its Subsidiaries for similar products in such country
during the royalty reporting period in which such transfer occurs, or if
no such arms length licensing occurred in such country during such
period, during the last period in which such arms length sales occurred.
If no such arms length licenses have occurred in a particular country,
Net Sales for such transfer shall be the average price of arms length
licenses for similar products in all countries. Gene Logic and its
Subsidiaries shall at all times act in commercially reasonable good faith
(including, without limitation, the use of generally accepted accounting
principles, consistently applied) and shall not intentionally or
knowingly inappropriately or inaccurately apportion amounts invoiced for
the purpose or effect of circumventing or depriving Affymetrix of any
benefit due under this Agreement.
	2.16	 	
“Party” shall mean Affymetrix or Gene Logic. “Parties” shall mean
Affymetrix and Gene Logic.
	2.17	 	
“Physical Defects” shall mean defects resulting from the manufacture or
handling of Probe Arrays by Affymetrix prior to shipment, such that
[...***...]. Such determination must be made by Affymetrix Technical
Support pursuant to the [...***...] as set forth in Exhibit F hereto.

5

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 
	2.18	 	
“Probe Arrays” shall mean a solid support having an array of
polynucleotides with known location and sequence fabricated by Affymetrix
pursuant to this Agreement for use in expression analysis and shall
include Proprietary Probe Arrays and Custom Probe Arrays. “Proprietary
Probe Arrays” shall refer to Probe Arrays which contain substantial
proprietary genetic information of a third party for which incremental
fees are due by Affymetrix to such third party associated with the use of
such proprietary genetic information.
	2.19	 	
“Sample Supplier” shall mean a not-for-profit third party supplier of
biological samples to Gene Logic that exchanges such samples for a Sample
Supplier Database.
	2.20	 	
“Sample Supplier Database” shall mean a Database of [...***...]
Datapoints of the then current version of Probe Arrays that is provided to
a Sample Supplier in exchange for the samples from which such Datapoints
are derived.
	2.22	 	
“Services” shall mean the use of Probe Arrays in generation of data that
will be provided to only one third party. Services shall include databases
developed by Gene Logic and/or its Subsidiaries exclusively for a third
party customer solely for such third party customer’s internal use. In the
event that data are provided on a service basis and later released for
commercial distribution as a database, such collection of data shall be
considered a “Service” at the time delivered to a single customer. The
Parties agree that in the rollout of a Database update to Gene Logic
customers, this Service definition shall not be triggered [...***...]
	2.23	 	
“Significant Physical Defects” shall refer to Physical Defects in Probe
Arrays which meet [...***...]. It is understood that the criteria for
Significant Physical Defects are [...***...]. The list in Exhibit D may
be reasonably updated [...***...] from time-to-time.
	2.24	 	
“Subsidiary” shall mean any Affiliate which is wholly-owned by Gene Logic
and which is controlled by Gene Logic including day-to-day management
operations, but only for so long as such Subsidiary remains a Subsidiary
of Gene Logic, and only if such Subsidiary is bound by the terms of this
Agreement. For purposes of this Section, “control” shall mean, in the
case of corporations (or equivalents of corporations), direct or indirect
ownership of 100% of the stock having the right to vote for directors of
such corporation or, in the case of partnerships, 100% of the ownership
interest in such partnership.
	2.25	 	
“Subsidiary’s Area Of Interest” shall be the same as Gene Logic’s Area of
Interest.
	2.26	 	
“System(s)” shall mean fluidics station(s), work station(s),
hybridization oven(s), probe array reader(s), and associated software,
such software licensed to Gene Logic, and such fluidics station(s), work
station(s) and probe array reader(s) sold to Gene Logic.

6

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 
	2.27	 	
“Term” shall mean the period beginning on the Effective Date and ending
on a date [...***...], unless extended for an additional [...***...] at
Gene Logic’s election; notice of such election to be provided to
Affymetrix in writing no less than [...***...] in advance of the
expiration of the initial Term.
	2.28	 	
“Tox Services” shall mean the use of Probe Arrays in generation of
toxicity screening data that will be provided to only one third party
solely for such third party customer’s internal use.
	 
	3	 	
Probe Array Supply
	3.1	 	
Custom Probe Arrays may be ordered only in full Lots.
	3.2	 	
Beginning on the Effective Date, Affymetrix will deliver such quantities
of the appropriate Probe Arrays which have passed the Fabrication
Verification Criteria at or before the time specified in a properly
rendered forecast made pursuant to Section 3.3, or, for the first 3 months
of the Term, according to a forecast previously supplied by Gene Logic
and/or its Subsidiaries and attached as Exhibit C.
	3.3	 	
Beginning on the Effective Date and on the first business day of each
month during the Term of this Agreement, Gene Logic and its Affiliates
will provide a reasonable, good faith forecast of Probe Arrays to be
supplied by Affymetrix during the following [...***...] period or the
period until the end of the Term if less than [...***...] (such forecasts
to be supplied by number of Probe Arrays and part number) to Gene Logic
and its Affiliates. The forecast will be provided according to a
mechanism and on forms to be agreed upon in good faith by the Parties. The
first and second month of such forecast (part number and individual
quantity) shall constitute a firm order. The subsequent months of such
forecast will be for capacity planning purposes only, and shall not
constitute a firm commitment. If the number of ordered Probe Arrays
forecast for a month increases by more than [...***...] from the
immediately preceding firm forecast for such month then the number of such
Probe Arrays above the [...***...] increase shall be supplied in a
reasonable time, but shall not be subject to penalty or breach on account
of late supply thereof.
	3.4	 	
Probe Arrays will be packed in Affymetrix’ standard shipping packages and
shipped to the address specified by Gene Logic and/or its Affiliates.
Deliveries will be F.C.A. Affymetrix’ facility or the facility of its
sales representative. Affymetrix will ship via a carrier selected by Gene
Logic or, if none is specified by Gene Logic, Affymetrix will select the
carrier. Title and risk of loss of damage for deliveries will pass to
Gene Logic and/or its Affiliates upon Affymetrix’ actual delivery of the
Probe Arrays to the carrier for shipment to Gene Logic and/or its
Affiliates. Gene Logic and/or its Affiliates will pay all shipping costs,
duties, and sales taxes. Gene Logic and/or its Affiliates will advise
Affymetrix if insurance is desired on any shipments of Probe Arrays, and
will reimburse Affymetrix for all such insurance charges. Affymetrix will
ship new orders of Probe Arrays within [...***...] days of receipt of
purchase order for such new orders (excluding Custom Probe Arrays which
will be provided pursuant to Section 3.6.1 and [...***...] Probe Arrays
pursuant to Exhibit F which will be shipped pursuant to Section 3.14)
	3.5	 	
Affymetrix will provide Gene Logic with [...***...] qualified
instructor-days of training in use of Probe Arrays and Systems at
Affymetrix’ expense and in schedules to be mutually and reasonably agreed.
In cases where Gene Logic elects to have training at Affymetrix’
facility, travel and expenses of Gene Logic personnel will be paid by Gene
Logic. Additional training

7

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 
	 	 	will be reasonably provided by Affymetrix to Gene Logic at the request of Gene
Logic at the then current commercial terms

	 	 	 	 	 	 	 
	3.6	 	 	3.6.1	 	 	Gene Logic and/or its Affiliates are
entitled to purchase Custom Probe
Array designs from Affymetrix for
[...***...]per custom design. This
pricing permits specifications for
arrays of up to [...***...]probes
per Probe Array, up to [...***...]
bases, and up to [...***...]
synthesis steps. Designs for a
Custom Probe Array representing
eukaryotic organism genes and
containing Probe Sets of
[...***...]probe pairs per gene with
[...***...] μm feature sizes may
contain probes distributed across
the surface of the array. When
ordering Custom Probe Arrays, Gene
Logic and/or its Affiliates will
identify Target Sequences for each
Custom Probe Array as set forth in
the applicable documentation
provided by Affymetrix, a current
version of which is attached as
Exhibit H hereto. If the information
received by Affymetrix does not
include the information required,
Affymetrix will advise Gene Logic
and/or its Affiliates of any
additional needed information. Upon
Affymetrix confirming receipt of
complete Target Sequences and
related information for each Custom
Probe Array design, Affymetrix will
use reasonable efforts to design,
lay out, produce masks, and
manufacture one Lot of Custom Probe
Arrays for each such custom design
as follows: (i) within [...***...]if
Gene Logic orders [...***...]; (ii)
within [...***...]for up to
[...***...] custom designs; and
(iii) for more than [...***...],
according to the schedule quoted to
Gene Logic and/or its Affiliates at
the time they order such Custom
Probe Array designs. Where Gene
Logic and/or its Affiliates have
ordered [...***...], Affymetrix
reserves the right to provide the
initial Lots of Custom Probe Arrays
for each such design at separate
times, at Affymetrix’ sole
discretion, subject to the maximum
time periods described in the
previous sentence; in such case, the
order that the initial Lots of each
such design will be provided
relative to such other designs and
will be determined by a priority
list submitted by Gene Logic at the
time it orders the designs or, if no
such list is submitted, in
Affymetrix’ discretion. In no event
shall Affymetrix be obligated to
supply more than [...***...] custom
designs per year. Delivery times for
all additional Lots of Custom Probe
Arrays ordered pursuant to this
letter will be quoted at the time
Affymetrix receives a firm order for
such products and shall not exceed
[...***...] from the date of such
order. Potential deviations from the
standard custom design
specifications as described above
that Affymetrix may consider are
outlined in Exhibit G hereto. Gene
Logic acknowledges that
implementation of any or all
deviations listed in Exhibit G for a
particular custom design may
increase the time period between
order placement and delivery of
Custom Probe Arrays based on any
such design, provided however that
any such implementation will in no
event cause the schedule to increase
more than [...***...]. All such time
extensions for a particular custom
design will be discussed with Gene
Logic prior to start of such design.
All Custom Probe Arrays must be
ordered and purchased in whole Lot
increments, where a “Lot” is
[...***...] Custom Probe Arrays, and
the Lot size and/or range may be
modified by Affymetrix upon
reasonable notice to Gene Logic. The
term “Target Sequences” refers to a
set of Gene sequences for which Gene
Logic and/or its Affiliates will
have Affymetrix make Custom Probe
Arrays pursuant to this Agreement.
Gene Logic shall be fully
responsible for the Target
Sequences, and, except
to the extent
arising from

8

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 	 	 	 	 
	 	 	 		 	 	Affymetrix’ commercialization of a particular Custom Probe Array design, Gene
Logic will settle or defend any legal proceeding brought against
Affymetrix in connection with the Target Sequences in accordance
with Section 10.1.
		 	 	3.6.2	 	 	Standard Custom Probe Arrays are currently available in the
following formats and lot sizes:

	 	 	 	 	 
	Format	 	Arrays/Wafer	 	Minimum Order
	
	 	
	 	

	[...***...]	 	[...***...]	 	[...***...]
	[...***...]	 	[...***...]	 	[...***...]
	[...***...]	 	[...***...]	 	[...***...]
	[...***...]	 	[...***...]	 	[...***...]

	 	 	 	 	 	 	 
		 	 	 	 	 	All Standard Custom Probe Arrays must be ordered and purchased in
whole lot increments, which may be changed upon reasonable notice
from Affymetrix. The Standard Custom Probe Array per unit list
prices are based upon Custom Probe Array format and organism.
		 	 	3.6.3	 	 	In the event Gene Logic, upon request and in its sole
discretion, elects to permit Affymetrix, in its sole discretion, to
commercialize particular Custom Probe Array designs ordered
hereunder by distributing probe arrays based on such design
(“Branded Arrays”) to third parties, the Parties agree to negotiate
in good faith for each such design the grant of a license by Gene
Logic to Affymetrix under Gene Logic’s relevant intellectual
property rights, if any, to distribute Branded Arrays based on such
design; [...***...]

	3.7	 	 	Except as explicitly permitted in
        Exhibit E, or otherwise set forth in Section 5.3 below, neither
        Gene Logic, nor its Subsidiaries nor Affiliates may:

	 	1)	 	transfer the Probe Arrays provided by Affymetrix
pursuant to this Agreement to third parties; or
	 	2)	 	transfer data generated therewith to any third
party except that Gene Logic and Subsidiaries may transfer
data to:

	 	i)	 	each other for use in
such Subsidiaries’ or Gene Logic’s Area of
Interest or
	 	ii)	 	subscribers to a Database
	 	iii)	 	Sample Suppliers or
	 	iv)	 	in the case of Services
or Tox Services, to a single third party; or

	 	3)	 	provide services to any third party, using the
Probe Arrays provided by Affymetrix pursuant to the Agreement
except Gene Logic and/or its Subsidiaries may provide Services
or Tox Services:

	 	(a)	 	as to those Probe Arrays,
excluding Custom Probe Arrays, where:

	 	i)	 	the Service or
Tox Service recipient agrees to limit
further distribution of the data to other
third parties consistent with Affymetrix’
normal probe array supply terms as set forth
in Exhibit A and updated from time to time
with advance notice to Gene Logic 

9

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 	(it being
understood that the service terms in
Exhibit A may be reasonably modified with
mutual agreement of Affymetrix and Gene
Logic consistent with the terms of this
Agreement), and

	 	ii)	 	the fee for
Probe Arrays used in Services or Tox Services is paid pursuant to Section 5.3;and

	 	(b)	 	as to those Custom Probe Arrays where:

	 	i)	 	the Service
or Tox Service recipient is a Database
subscriber (or Gene Logic has a bona fide,
reasonable belief that such recipient will
become a Database subscriber within the
then-following [...***...] period, in which
case no more than [...***...] Custom Probe
Arrays shall be used by Gene Logic for
Services or Tox Services to such recipient
prior to such recipient becoming a Database
subscriber (however, upon such recipient’s
request, Gene Logic may replicate the Custom
Probe Array-based experiment(s) performed
for such recipient by using no more than
[...***...] per each Custom Probe Array (up
to the [...***...] Custom Probe Array
maximum described above) actually used in
such experiment(s) for such recipient) up to
a maximum of [...***...] per year;
Affymetrix will consider proposals made by
Gene Logic in good faith to increase the
permitted maximum number of such recipients
per year provided that Affymetrix shall have
no obligation hereunder with respect to any
such proposal); and
	 	ii)	 	the Service
or Tox Service recipient agrees to limit
further distribution of the data to other
third parties consistent with Affymetrix’
normal probe array supply terms as set forth
in Exhibit A and updated from time to time
with advance notice to Gene Logic (it being
understood that the service terms in Exhibit
A may be reasonably modified with mutual
agreement of Affymetrix and Gene Logic
consistent with the terms of this
Agreement), and
	 	iii)	 	the fee for
Custom Probe Arrays used in Services or Tox
Services is paid as set forth in Section
5.3; or

	 	4)	 	allow any third party to use the Probe Arrays
supplied by Affymetrix to Gene Logic and/or its Affiliates and
Subsidiaries under this Agreement; or
	 	5)	 	otherwise use the Probe Arrays delivered
hereunder outside of Gene Logic’s, its Affiliates’ or
Subsidiaries’ Area of Interest as applicable; or
	 	6)	 	reuse the Probe Arrays; or
	 	7)	 	use such Probe Arrays in diagnostic or other settings
requiring FDA or other regulatory agency approval unless Gene
Logic or Affiliates obtains such approval
and such Probe Arrays are to be used in a clinical trial (and
such Probe Arrays are not for microbial or pathogenic
organisms).

10

CONFIDENTIAL TREATMENT REQUESTED

 

Gene Logic and/or its Affiliates and Subsidiaries will allow Affymetrix
reasonable, periodic (but not more often than quarterly) access to the Systems
during regular business hours and with advance written notice to ensure
compliance with the prohibition against reuse.

	3.8	 	
All Databases transferred to a third party by Gene Logic or a Subsidiary
pursuant to this Agreement must be compliant with a community supported
standard data exchange format for gene expression data, if and when such
format is established. Gene Logic will bear its costs of such compliance.
	3.9	 	
Gene Logic and/or its Subsidiaries may not sell or license the Databases
through a distributor or agent that is involved directly or indirectly in
legal proceedings with Affymetrix or its Affiliate, or holds patent
interests adverse to Affymetrix or its Affiliates related to probe arrays,
unless such distributor or agent is approved in advance in writing by
Affymetrix. In order to enforce this provision Affymetrix must provide
Gene Logic reasonable and prompt written notice of such indirect
involvement in legal proceedings, or such adverse patent interests, upon
Affymetrix becoming aware of such indirect involvement, or such adverse
patent interests, with which counsel for Gene Logic reasonably concurs.
	3.10	 	
Affymetrix will provide sufficient genetic information to identify the
Genes on a Probe Array. If Affymetrix updates its Probe Arrays to include
additional or different genetic sequence information, Affymetrix will
provide information to the best of its ability to allow for Gene Logic to
compare its data with prior results.
	3.11	 	
Unless otherwise stated herein, Affymetrix agrees that all Probe Arrays
delivered hereunder will have an expiration date as indicated on each
Probe Array at least [...***...] from the date of delivery of such Probe
Array to Gene Logic.
	3.12	 	
The Parties agree that the following is a complete satisfaction and
accord for the [...***...] of Probe Arrays for NITs [...***...] and Human
Probe Array credits [...***...] under the Prior Agreement. [...***...]
Probe Arrays shall be provided in 2002, [...***...] in [...***...] and
[...***...] in [...***...], in accordance with the following:
	 
	 	 	         
            [...***...]
	 
	 	 	
Additionally, Affymetrix will provide Gene Logic with [...***...] human
Probe Arrays [...***...] to satisfy such [...***...] Probe Arrays noted
above.
	3.13	 	
In no event will Affymetrix be obligated to provide more than [...***...]
Probe Arrays in any one month.
	3.14	 	
All Probe Arrays supplied by Affymetrix pursuant to this Agreement shall
be subject to [...***...] as set forth in Exhibit F hereto (“[...***...]
Policy”) and, once determined to be defective in accordance with the
[...***...] Policy, [...***...] within [...***...] of such determination.
	 
	4	 	
Affymetrix Proprietary Rights
	4.1	 	
Until the end of the Term, Gene Logic will not buy arrays of diverse
nucleic acids on solid supports from a third party when such third party
arrays materially infringe or would materially infringe the patent or
copyright rights of Affymetrix or its Affiliates. In order to enforce
this provision Affymetrix must provide Gene Logic a) reasonable and prompt
written

11

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 
	 	 	
notice of such infringement upon Affymetrix becoming aware of such
infringement, and b) reasonable evidence of such infringement, with which
counsel for Gene Logic reasonably concurs. This paragraph shall not
confer on Gene Logic or any third party any rights under the patent
rights of Affymetrix.

	 	 	 	 	 
	5	 	Compensation
	5.1	 	During the Term of this Agreement, in
        consideration for the [...***...] the Database license, and services and
        other support available hereunder, Gene Logic shall pay to Affymetrix a fee
        of [...***...]during the Term.
	5.2	 	5.2.1	 	Gene Logic agrees to purchase a minimum of [...***...] in HU133 Probe Arrays in the [...***...]. Affymetrix agrees that the foregoing
HU133 Probe Arrays delivered in accordance with the previous sentence and
all HU133 Probe Arrays purchased in December of 2002 will have an
expiration date as indicated on each Probe Array [...***...] from the date
of delivery of such Probe Array to Gene Logic and/or its Subsidiaries.
Gene Logic commits to purchase [...***...] Probe Arrays during the
[...***...] which includes up to [...***...] HU133 Probe Arrays
[...***...] to be shipped in [...***...] to be used for Upgrades in
accordance with Section 5.2.3 below. If Gene Logic does not order
[...***...] Probe Arrays during the period [...***...], Affymetrix
reserves the right to invoice Gene Logic for, and Gene Logic agrees to
pay, the difference between [...***...] and the number of Probe Arrays
actually ordered by Gene Logic [...***...] multiplied by [...***...]. If
Affymetrix raises prices for the products attached hereto in Exhibit I to
Gene Logic and it Affiliates during the period [...***...], the Parties
agree to cancel the above purchase commitment of [...***...] Probe Arrays
and the Parties agree to renegotiate such purchase commitment.
	 	 	5.2.2	 	For each expression Probe Array (excluding those Probe
Arrays for use in Services and Tox Services) delivered to Gene Logic
or its Affiliates that meets the Fabrication Verification Criteria,
Gene Logic and or its Affiliates will pay a fixed fee of the
[...***...]. The foregoing notwithstanding, for each HU133 Probe
Array (excluding those HU133 Probe Arrays for use in Services or Tox
Services) delivered to Gene Logic or its Affiliates that meets the
Fabrication Verification Criteria, Gene Logic or its Affiliates will
pay [...***...]; or [...***...]. Proprietary Probe Arrays will be
[...***...] provided that genetic information access fees actually
paid by Affymetrix to a third party are not discounted and only to
the extent that the genetic information access fees are not
reflected in the list price of standard equivalently sized probe
arrays.
	 	 	5.2.3	 	Gene Logic commits to purchase [...***...] HU133 Probe
Arrays [...***...] to be used for the purpose of upgrading samples
previously run on Affymetrix arrays and the data of which is
included in Gene Logic’s current human database [...***...]. Gene
Logic will pay [...***...]. Such [...***...] only applies to HU133
Probe Arrays that are being used in [...***...]
	 	 	5.2.4	 	The per unit Custom Probe Array pricing is [...***...]. The
current maximum list prices (which are based on a maximum feature
size of [...***...] μm) for specific species are: [...***...] per
human Probe Pair, [...***...] per rat Probe Pair, [...***...]per
murine Probe Pair, [...***...] per [...***...] Probe Pair,
[...***...] per

12

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 	 	 
	 	 	 	 	plant species Probe Pair and [...***...] per yeast Probe Pair.
[...***...]. Without limiting the foregoing, the current list
prices by specific species for a Custom Probe Array representing
eukaryotic organism genes with [...***...] μm feature sizes are:
	 	 	 	 	[...***...] per human Probe Pair, [...***...] per rat Probe Pair,
[...***...] per murine Probe Pair, [...***...] per [...***...]
Probe Pair, [...***...] per yeast Probe Pair and [...***...] per
plant species Probe Pair.
	5.3	 	5.3.1	 	For those Probe Arrays used in Services, Gene Logic and/or its
Subsidiaries will pay [...***...] for such Probe Arrays excluding Probe
Arrays used in providing Tox Services)(“Service Array Price”), or Gene
Logic and/or its Subsidiaries may provide Services for third parties with
a pricing agreement in effect with Affymetrix and such customers may
purchase probe arrays directly from Affymetrix, have such probe arrays
shipped directly to Gene Logic and/or its Subsidiaries for use in Services
for such Affymetrix customer, and Affymetrix will directly invoice its
customer for such probe arrays. Neither Gene Logic nor its Subsidiaries
may receive probe arrays directly from an Affymetrix customer. Gene Logic
and/or its Subsidiaries agree to use the probe arrays received under the
arrangement described in this paragraph only for the purpose of providing
Services to the particular Affymetrix customer that has directed
Affymetrix to ship such probe arrays to Gene Logic and/or its Subsidiaries
and which will receive the resulting data. Affymetrix will release use
restriction in such third parties solely to permit performance of
Services.
	 	 	5.3.2	 	For those Probe Arrays used in Tox Services for the period
beginning on the Effective Date and ending [...***...] thereafter
(which period may be extended by mutual agreement of the Parties),
Gene Logic and/or its Subsidiaries will [...***...] and such
customers may purchase probe arrays directly from Affymetrix, have
such probe arrays shipped directly to Gene Logic and/or its
Subsidiaries for use in Tox Services for such Affymetrix customer,
and Affymetrix will directly invoice its customer for such probe
arrays. Neither Gene Logic nor its Subsidiaries may receive probe
arrays directly from an Affymetrix customer. Gene Logic and/or its
Subsidiaries agree to use the probe arrays received under the
arrangement described in this paragraph only for the purpose of
providing Tox Services to the particular Affymetrix customer that
has directed Affymetrix to ship such probe arrays to Gene Logic and
which will receive the resulting data. Affymetrix will release use
restriction in such third parties solely to permit performance of
Tox Services. The Parties agree that any Tox Service agreements
signed, or bona fide term sheets under negotiation, between Gene
Logic and/or its Subsidiaries and any third party during such
[...***...] period shall be honored by the Parties through the Term.
If the period for Tox Services is not extended, Probe Arrays for
use in Tox Services shall be subject to the prices for Probe Arrays
to be used in Services set forth in Section 5.3.1.
	 	 	5.3.3	 	The provisions of Sections 5.3.1 and 5.3.2 notwithstanding, the Parties agree that i) Probe Arrays purchased to provide any Services or Tox Services
for [...***...] under an agreement in effect between [...***...] and Gene Logic
and/or its Subsidiaries and ii) [...***...] for prospective Database subscribers whom Gene
Logic and/or its Subsidiaries reasonably believes will become Database subscribers [...***...] may be purchased at [...***...]
	 	 	5.3.4	 	As part of the written quarterly reports provided in
accordance with Section 5.7, Gene

13

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 	 	 
	 	 	 	 	Logic and/or its Subsidiaries shall also indicate the number of
Probe Arrays used for the provision of Services, Tox Services and
proof of principle studies pursuant to Section 5.3.3, on a country
by country basis, including the names of such service recipients.
If Probe Arrays used in Services or Tox Services were not purchased
at the price for Services or Tox Services, Gene Logic and/or its
Subsidiaries agrees to pay [...***...]. Such payment will be due
to Affymetrix within [...***...] after the end of each calendar
quarter during the Term.

	5.4	 	
The basis for royalties on Databases shall be [...***...] to allow for
value added by Gene Logic and/or its Subsidiaries on any system, package,
or combination product sold or licensed in conjunction with a Database;
such value added percentage to be reviewed by the Parties annually. At
the time and in the manner hereinafter provided, Gene Logic and its
Subsidiaries shall pay to Affymetrix an annual royalty of [...***...]

	 	 	 	 	 
	 	 	5.4.1	 	
Sample Supplier Databases will incur [...***...].
Incremental Datapoints provided to Sample Suppliers in excess of
[...***...] pursuant to Section 5.4 above.

	5.5	 	
The Parties agree that the value of royalties due to Affymetrix under the
Agreement between Gene Logic and Affymetrix dated January 1, 1999 is
[...***...] royalties accruing pursuant to Section 5.4 from the Effective
Date forward shall be subject to a [...***...] credit applicable to
royalties incurred in aggregate, by Gene Logic, its Subsidiaries and
between such parties, during the Term of this Agreement so that
notwithstanding the foregoing provisions, Gene Logic shall not be liable
to pay Affymetrix for any royalty until such time as the aggregate
royalties accrued pursuant to this Section 5.4 exceed [...***...] at which
time Gene Logic shall commence paying Affymetrix for all royalties
accruing hereunder in excess of the credit in accordance with the terms of
the Agreement. Notwithstanding any provision to the contrary in this
Agreement, Gene Logic will be responsible for any and all royalties
[...***...] due to third parties for Probe Arrays supplied to Gene Logic
hereunder, and the Probe Array fees and Database royalties described in
this Agreement shall be exclusive of any such royalty.
	5.6	 	
Except as to royalty payments, all amounts referred to in this Section 5
will be invoiced by Affymetrix when due. Royalty payments will be due as
specified in Section 5.7. All Probe Arrays will be deemed accepted unless
they are returned to Affymetrix within [...***...] of delivery to Gene
Logic, with written explanation of the basis on which such Probe Arrays
have been returned on Affymetrix’ standard “Return Materials
Authorization” according to the procedures provided for in such Return
Materials Authorization. All payments will be made to Affymetrix thirty
(30) days from the date of invoicing by Affymetrix. Late payments shall
bear interest at the rate of [...***...] per month. All payments in this
Agreement will be made in the form of a check or wire transfer to
Affymetrix in U.S. Dollars.
	5.7	 	
Gene Logic shall deliver to Affymetrix within sixty (60) days days after
the end of each calendar quarter during the Term, a written report showing
its computation of payments due under Section 5 of this Agreement
including any Net Sales of licenses of Databases by Gene Logic or its
Subsidiaries during such calendar quarter. All Net Sales shall be
segmented in each such report according to licenses by Gene Logic and each
Subsidiary on a country by country basis, including the rates of exchange
used to convert such royalties to U.S. Dollars from the currency in which
the licenses were made. For the purposes of this

14

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 
	 	 	
Agreement, the rates of
exchange to be used for converting royalties to U.S. Dollars shall be
those published
for the purchase of U.S. Dollars in the Wall Street Journal for the last
business day of the calendar quarter for which payment is due.
Simultaneously with the delivery of each such report Gene Logic shall
tender payment in U.S. Dollars of all royalties shown to be due therein.
Where royalties are due for licenses of Databases in a country where, by
reason of currency regulations it is impossible or illegal for Gene Logic
or its Subsidiaries to transfer royalty payments to Affymetrix, such
royalties shall be deposited in whatever currency is allowable in a bank
in that country that is reasonably acceptable to Affymetrix. Any and all
income or similar taxes imposed or levied on account of the receipt of
royalties payable under this Agreement which are required to be withheld
by Gene Logic shall be paid by Gene Logic on behalf of Affymetrix and
shall be paid to the proper taxing authority. Proof of payment shall be
secured and sent to Affymetrix as evidence of such payment in such form
as required by the tax authorities having jurisdiction over Gene Logic or
its Subsidiaries. Such taxes shall be deducted from the royalty that
would otherwise be remitted by Gene Logic or its Subsidiaries.
	5.8	 	
Systems may be acquired/licensed by Gene Logic and its Subsidiaries at
[...***...] and under otherwise standard terms. If during the Term Gene
Logic decides to replace [...***...] of its Systems, Affymetrix agrees to
discuss in good faith [...***...] for such System replacements.
	5.9	 	
As to transactions with [...***...] Affymetrix customers expressly
licensed by Affymetrix to use Affymetrix’ current DNA probe array products
for the commercialization of gene expression databases, [...***...],
Affymetrix has not, and will not make such products commercially available
to such for-profit customers on terms more favorable, taken as a whole,
than those offered to Gene Logic in this Agreement without offering such
terms to Gene Logic. For the purposes of this section, a “database” shall
mean a collection of gene expression datapoints derived from a probe array
provided to a third party by Affymetrix or its authorized representative,
[...***...], and made available by such third party for license broadly in
whole or in part for use to derive additional information; the term
“database” shall exclude [...***...]. Such terms shall be offered only for
the overlapping period of Probe Array supply in situations where Probe
Arrays are made available at prices/royalties lower than those provided
herein. It is understood that if one of the following term(s) is more
favorable to any such [...***...] customer, Gene Logic shall be offered
such more favorable terms, provided that if Gene Logic accepts such
term(s), Gene Logic shall a) [...***...]; b) [...***...]; and c)
[...***...].”

15

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 
	5.10	 	
Affymetrix will maintain a running record of the average variance from
the delivery times specified in Section 3.4. In the event that the
average delivery time in any calendar quarter for Probe Arrays delivered
to Gene Logic is more than [...***...] days greater than the times
specified in Section 3.4, the price of all Probe Arrays scheduled to be
delivered during the next quarter shall be decreased by [...***...] for
each business day that such average is more than [...***...] late. In the
event that more than [...***...] of the Probe Arrays delivered to Gene
Logic in a [...***...] during the Term are replaced for Significant
Physical Defects pursuant to Exhibits D, all such Probe Arrays that are
replaced by Affymetrix for Significant Physical Defects will be considered
to be delivered [...***...] late in the above calculation. It is
understood that commercial standards and commercial incentives regarding
[...***...] will be no less favorable to Gene Logic than those in this
Section 5.10.
	5.11	 	
Affymetrix will provide early access to new product releases to Gene
Logic in a manner similar to its Easy Access “Gold” customers.
	5.12	 	
Affymetrix will use commercially reasonable efforts to advise Gene Logic
at least thirty (30) days before Affymetrix’ first commercial sale and
license of a specific mammalian gene expression Database to third parties,
and shall use reasonable efforts to advise Gene Logic of the development
of such mammalian gene expression Databases where Affymetrix has the legal
right to do so, provided that nothing herein shall be construed as
conferring upon Gene Logic any right to veto any such sale, license or
development of a mammalian gene expression Database. Gene Logic
acknowledges and agrees that any such advisement and the circumstances to
which it relates are deemed to be the Confidential Information of
Affymetrix.
	 
	6	 	
Intellectual Property
	6.1	 	
Any invention made during the course of and as part of this Agreement
shall be owned according to inventorship of the relevant applications,
provided that Gene Logic (and its Subsidiaries and Affiliates) agree to
assign to Affymetrix at Affymetrix’ cost all Chip Improvement Inventions.
Gene Logic agrees to communicate periodically technology improvements and
developments relating to probe array technology to the Committee,
excluding those improvements made independently of the use of Probe Arrays
(such as those made in the course of the design or use of Gene Logic’s
proprietary technologies or other non-Affymetrix technologies)
	6.2	 	[...***...].
	6.3	 	[...***...].
	6.4	 	[...***...].

16

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 
	6.5	 	[...***...].
	6.6	 	
Gene Logic will reasonably provide recognition of Affymetrix by way of
display of its trademarks in its database products generated pursuant to
this Agreement. Such products will be maintained at reasonable quality,
and Affymetrix grants a non-exclusive right to use its trademarks on such
products. Gene Logic will allow Affymetrix reasonable review and approval
of the use of such trademarks.
	6.7	 	
The Parties also hereby agree that, in the event Gene Logic has a website
containing the logos of, and/or hyperlinks to, un-Affiliated third
parties, Gene Logic will include Affymetrix’ GeneChip logo and hyperlink
to Affymetrix’ website in the same or more favorable manner (to be
reasonably determined by the Parties) on such Gene Logic website under the
same or more favorable terms and conditions.
	 
	7	 	
Project Coordination
	7.1	 	
The parties will form the Committee to aid in coordinating such
activities under this Agreement as may be mutually agreed by the Parties.
The Committee shall be composed of an equal number of representatives of
Affymetrix and Gene Logic as each shall respectively appoint and be
reasonably acceptable to the other Party. The decisions of the Committee
shall be unanimous. A quorum shall consist of at least one Committee
representative from each Party. The Committee shall act only with the
concurring votes of both Parties. A Party’s representatives shall serve
at the discretion of such Party and may be substituted for or replaced at
any time by such Party. The Committee shall meet at least three times
during the Term, except at such times as the Parties mutually believe
there are no significant agenda items. The Committee will be responsible
for establishing other appropriate operational requirements for the
Committee.
	7.2	 	
In addition, the Committee [...***...]. Affymetrix will [...***...] in
the first calendar year of the Term.
	 
	8	 	
Confidentiality
	8.1	 	
For a period of 5 years from disclosure to the other Party, each Party
shall maintain the Confidential Information of the other Party in
confidence (including the terms of this Agreement), and shall not
disclose, divulge, or otherwise communicate such Confidential Information
of the other, or use it for any purpose, except as permitted or
contemplated by this Agreement, and in order to carry out the terms and
objectives of this Agreement. The Parties will use reasonable precautions
to prevent and restrain the unauthorized disclosure of such Confidential
Information of the other Party. The provisions of this paragraph shall
not apply to Confidential Information which:

		 	 	 	8.1.1	 	was known or used by the receiving Party or its Affiliates
without any restriction on disclosure, prior to its date of
disclosure to the receiving Party, as evidenced by the prior written
records of the receiving Party or its Affiliates; or
		 	 	 	8.1.2	 	either before or after the date of the disclosure to the
receiving Party is lawfully disclosed without restriction on
disclosure to the receiving Party or its Affiliates by an
independent, unaffiliated third party rightfully in possession of
the Confidential Information, provided that if such Confidential
Information is provided to the receiving Party by a third party
rightfully in possession of the Confidential Information, but with
restrictions on disclosure, the receiving Party may use such

17

CONFIDENTIAL TREATMENT REQUESTED

 

 

		 	 	 	 	 	Confidential Information in accordance with such restrictions of
the third party;
		 	 	 	8.1.3	 	either before or after the date of the disclosure to the
receiving Party becomes published or generally known to the public
through no fault or omission of the receiving Party or its
Affiliates;
		 	 	 	8.1.4	 	is required to be disclosed by the receiving Party or its
Affiliates to comply with applicable laws, to comply with a court
order, or to comply with governmental regulations, provided that the
receiving Party provides prior written notice of such disclosure to
the other Party and takes reasonable and lawful actions to avoid
and/or minimize the degree of such disclosure;
		 	 	 	8.1.5	 	is independently developed by the receiving Party or its
Affiliates without reference to the Confidential Information.

	8.2	 	
Affymetrix may not publish the results of Gene Logic’s or its Affiliates’
use of the Probe Arrays without approval of Gene Logic or its Affiliates
respectively. Gene Logic may at its option publish results of the use of
the Probe Arrays. Subject to the limitations of Section 3 above Gene
Logic may publish the results of its research at its sole discretion. In
the event that Gene Logic chooses to publish such results, if Affymetrix
scientists have contributed to such work, authorship will be according to
scientific input and Affymetrix will cooperate in such publications. If
it is decided that publications will be made pursuant to this Section,
Affymetrix and Gene Logic will provide the other Party draft versions of
all publications reporting results of the use of the Probe Arrays, and
will provide at least 60 days for technical review thereof, and will allow
for removal of Confidential Information. For purposes of this Section
“publication” shall refer to conventional scientific publications and not
to the license of database products.
	 
	9	 	
Warranty
	9.1	 	
Both Parties to this Agreement represent and warrant that they have the
full right and authority to enter into and perform this Agreement.
	9.2	 	
Affymetrix warrants that the Probe Arrays delivered hereunder do not
incorporate the trade secret or copyright rights of a third party.
Affymetrix DISCLAIMS ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS OR
IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES RELATING TO
INTELLECTUAL PROPERTY, MERCHANTABILITY, AND FITNESS FOR A PARTICULAR
PURPOSE. Affymetrix shall have no liability under any theory of strict
liability, negligence, whether active or passive, or products liability.
Affymetrix’ entire liability shall in no event exceed the compensation
hereunder. Affymetrix shall have no liability for any consequential,
incidental, or special damages. Gene Logic understands that the risks of
loss herein are reflected in the price of the Probe Arrays and access fees
and that the terms would have been different if there had been a different
allocation of risk.
	9.3	 	
All Chip Improvement Inventions made available to Affymetrix hereunder
shall be on an as-is basis. Gene Logic DISCLAIMS ALL OTHER
REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT
LIMITED TO, THE IMPLIED WARRANTIES RELATING TO INTELLECTUAL PROPERTY,
MERCHANTABILITY, AND FITNESS FOR A PARTICULAR PURPOSE. Gene Logic makes
no warranty that it will ever develop any Database or that it will be able
to license any Database, if developed. Gene Logic shall have no liability
under any theory of strict liability,

18

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 
	 	 	
negligence, whether active or passive, or products liability on account
of the license of Database or the sale of Chip Improvement Inventions.
Gene Logic shall have no liability for consequential, incidental, or
special damages.
	 
	10	 	
Indemnity
	10.1	 	
Affymetrix will indemnify Gene Logic and its Affiliates against liability
and will settle or defend any suit or proceeding brought against Gene
Logic and its Affiliates to the extent based on a claim that the Probe
Arrays delivered hereunder directly infringe an issued patent in the
United States of America[...***...]. Affymetrix will indemnify Gene Logic
and its Affiliates against liability and will settle or defend any suit or
proceeding brought against Gene Logic and its Affiliates to the extent
based on a claim that the Probe Arrays delivered hereunder indirectly
(i.e. through contributory infringement or inducement) infringe an issued
patent in the United States of America, [...***...] if a) a hybridization
method using probe arrays, or probe arrays themselves, or equivalent
hybridization devices are specifically identified as an element of the
claims of such patent in a device claim, or use of these is specifically
identified as an element of the claims of such patent in a method claim,
and b) the patentability of such device or method claims was materially
related to the recitation of the hybridization method or the probe arrays
or equivalent hybridization device, or their use. Affymetrix shall have no
liability under this paragraph to the extent that the alleged infringement
arises out of any addition or modification to the Probe Arrays or their
use by Gene Logic and its Affiliates not specified by Affymetrix, or Gene
Logic’s and its Affiliates’ combination of the Probe Arrays with other
devices not specified by Affymetrix. The indemnifying Party shall pay
[...***...]. For this paragraph to apply the indemnified Party must
inform the indemnifying Party within [...***...] of notice of any claim or
suit being made or brought, and give the indemnifying Party the full
authority, information, and assistance necessary to settle or defend such
suit or proceeding. The indemnifying Party shall not be bound in any
manner by any settlement made without its prior written consent.
[...***...]. In the event that the Probe Arrays are held to infringe and
their use is enjoined as a result of infringement for which it has
indemnified Gene Logic and its Affiliates, Affymetrix may obtain for Gene
Logic and its Affiliates the right to continue using such Probe Arrays,
modify them to become noninfringing, or grant Gene Logic and its
Affiliates a credit for the cost of unused Probe Arrays, and accept the
return of unused Probe Arrays. This paragraph states the entire liability
for infringement of intellectual property rights and is in lieu of all
other warranties, express or implied except as stated in Section 9.
	 
	11	 	
Term and Termination
	11.1	 	
This Agreement shall extend until the end of the Term, unless terminated
earlier as set forth below.
	11.2	 	
If either Party should fail to perform any obligations under this
Agreement, the other Party may give written notice to the defaulting Party
calling attention to the default. In the event of a material breach or
default, said other Party shall have the right to terminate this Agreement
upon sixty (60) days prior written notice to said defaulting Party calling
attention to the default unless said breach or default is corrected within
sixty (60) days after such notice. Such notice shall specifically state
that the nonbreaching Party intends to terminate this Agreement. Said
right to terminate for default shall be in addition to, and without
prejudice
to the exercise of, any other remedies available in law or equity.

19

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 
	11.3	 	
Upon termination of this Agreement due to expiration of the Term Gene
Logic and its Affiliates may continue to use the Probe Arrays previously
purchased by Gene Logic and its Affiliates [...***...] and subject to the
warranty and return provisions provided in this Agreement. Gene Logic and
its Affiliates understands that no license is conveyed or implied for use
of the Systems herein for Probe Arrays other than those manufactured or
licensed by Affymetrix.
	11.4	 	
Upon termination of this Agreement, the following provisions will
survive: Sections 2, 3.7, 3.8, 3.9, 5.4, 5.5, 5.7, 6, 8, 9, 10, 11.3,
11.4, 12, 13.
	 
	12	 	
Dispute Resolution
	12.1	 	
No termination for breach or default hereof shall arise, nor shall any
action, claim or setoff be permitted, until the following procedures have
been satisfied. A designated representative of each of Affymetrix and
Gene Logic shall meet in person or by teleconference within seven (7) days
as reasonably requested by either Party to review any dispute with respect
to the interpretation of any provision of this Agreement or with respect
to the performance of either Party under this Agreement. If the
disagreement is not resolved by the designated representatives by mutual
agreement within fourteen (14) days after a meeting to discuss the
disagreement, either Party may at any time thereafter provide the other
written notice specifying the terms of such disagreement in reasonable
detail. Within seven (7) days of receipt of such notice, the chief
executive officers of Affymetrix and Gene Logic, or their executive
officer designees, shall meet at a mutually agreed upon time and location
or by teleconference for the purpose of resolving such disagreement. They
will discuss the problems and/or negotiate for a period of up to twenty
(20) days in an effort to resolve the disagreement or negotiate an
acceptable interpretation or revision of the applicable portion of this
Agreement mutually agreeable to both Parties, without the necessity of
formal procedures relating thereto.
	 
	13	 	
Miscellaneous
	13.1	 	
Gene Logic shall keep, and shall cause its Affiliates to keep, for a
period of at least three (3) years following the expiration of the
Agreement fully adequate, accurate, and true books of accounts and other
records containing all information and data which may be necessary to
ascertain and verify the fees and royalties payable hereunder and usages
of Probes Arrays provided hereunder, including, but not limited to, books,
records and electronic files showing each Database License transaction and
the net invoice price for said transaction, as appropriate. During the
Term of this Agreement and for a period of three (3) years following the
time at which the relevant fee or payment is due, Affymetrix shall have
the right, upon commercially reasonable notice, but not to exceed once per
contract year, during regular business hours and upon ten (10) days
notice, to have an auditing firm acceptable to all Parties make such
examination as Affymetrix deems necessary to verify said records and books
of account. In the event that such examination reveals a discrepancy
between the royalties or amounts payable hereunder and the royalties or
amounts actually paid, all such additional royalties or amounts, together
with interest from the date when such additional royalties or amounts
would have been due, shall be paid to Affymetrix within thirty (30) days
of written notice from Affymetrix of such discrepancy. Any such audit
shall be at

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CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 
	 	 	
Affymetrix’ sole expense and performed by a nationally recognized accounting firm. In
the event that a deficiency of more than [...***...] is discovered, the
audit shall be at Gene Logic’s expense. The auditing firm conducting the
examination shall be under appropriate obligations of confidentiality to
all Parties hereto such that, 1) if no discrepancy is found between
royalties and amounts payable and actually paid for a given contract
year, the auditing firm shall report that and nothing else to the
Parties, 2) if a discrepancy in favor of Affymetrix is found between
royalties and fees payable and actually paid, the auditing firm shall
report the amount of the discrepancy and only those particulars necessary
for the understanding of the Parties of the nature of the overpayment and
Gene Logic shall pay such discrepancy to Affymetrix within forty-five
(45) days of the date of the audit report, if a discrepancy in favor of
Gene Logic is found between royalties or amounts payable and actually
paid, the auditing firm shall report the amount of the discrepancy and
only those particulars necessary for the understanding of the Parties of
the nature of the overpayment, and Affymetrix shall reimburse Gene Logic
within forty five (45) days of the date of the audit report, and 3) any
given contract year may only be audited once, and 4) in no event shall
the auditing firm reveal to any Party hereto any information it may gain
during the course of the examination other than as previously stated, and
5) in no event shall the auditing firm reveal to any third party any
information it may gain during the course of the examination. The Parties
agree that auditors chosen to perform audits pursuant to this Section
12.1 and Section 12.2 below will not be compensated on a commission for
findings basis.
	13.2	 	
Affymetrix shall keep, and shall cause its Affiliates to keep, for a
period of at least three (3) years following the expiration of the
Agreement fully adequate, accurate, and true books of accounts and other
records containing all information and data which may be necessary to
ascertain and verify the fees and royalties receivable hereunder,
including, but not limited to, books, records and electronic files, as
appropriate. During the Term of this Agreement and for a period of three
(3) years following the time at which the relevant fee or payment is due,
Gene Logic shall have the right, upon commercially reasonable notice, but
not to exceed once per contract year, during regular business hours and
upon ten (10) days notice, to have an auditing firm acceptable to all
Parties make such examination as Gene Logic deems necessary to verify said
records and books of account. In the event that such examination reveals a
discrepancy between the royalties or amounts payable hereunder and the
royalties or amounts actually paid, all such additional royalties or
amounts, together with interest from the date when such additional
royalties or amounts would have been due, shall be paid to Gene Logic
within thirty (30) days of written notice from Gene Logic of such
discrepancy. Any such audit shall be at Gene Logic’s sole expense and
performed by a nationally recognized accounting firm. In the event that a
deficiency of more than [...***...] is discovered, the audit shall be at
Affymetrix’ expense. The auditing firm conducting the examination shall be
under appropriate obligations of confidentiality to all Parties hereto
such that, 1) if no discrepancy is found between royalties and amounts
payable and actually paid for a given contract year, the auditing firm
shall report that and nothing else to the Parties, 2) if a discrepancy in
favor of Gene Logic is found between royalties and fees receivable and
actually received, the auditing firm shall report the amount of the
discrepancy and only those particulars necessary for the understanding of
the Parties of the nature of the overpayment and Affymetrix shall pay such
discrepancy to Gene Logic within forty-five (45) days of the date of the
audit report, if a discrepancy in favor of Affymetrix is found between

21

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 
	 	 	
royalties or amounts payable and
actually paid, the auditing firm shall report the amount of the
discrepancy and only those particulars necessary for the understanding of
the Parties of the nature of the overpayment, and Gene Logic shall
reimburse Affymetrix within forty five (45) days of the date of the audit
report, and 3) any given contract year may only be audited once, and 4)
in no event shall the auditing firm reveal to any Party hereto any
information it may gain during the course of the examination other than
as previously stated, and 5) in no event shall the auditing firm reveal
to any third party any information it may gain during the course of the
examination.
	13.3	 	
GENE LOGIC UNDERSTANDS THAT THE PROBE ARRAYS DELIVERED HEREUNDER ARE NOT
FDA APPROVED. GENE LOGIC AGREES NOT TO USE THE PROBE ARRAYS DELIVERED
HEREUNDER IN ANY CLINICAL OR OTHER SETTING REQUIRING FDA REVIEW OR
APPROVAL EXCEPT THAT GENE LOGIC MAY USE THE PROBE ARRAYS IN CLINICAL
TRIALS WHEN IT OBTAINS ALL REQUIRED FDA OR OTHER REGULATORY APPROVALS
REQUIRED FOR USE IN SUCH TRIALS. GENE LOGIC WILL INDEMNIFY AFFYMETRIX FOR
ANY CLAIMS MADE BY A PATIENT ARISING FROM THE USE OF THE PROBE ARRAYS.
THE PROBE ARRAYS AND SYSTEMS ARE NOT LICENSED EXCEPT AS SPECIFICALLY
RECITED HEREIN UNDER ANY INTELLECTUAL PROPERTY RIGHTS OF AFFYMETRIX.
	13.4	 	
Neither Party nor any of its Affiliates shall originate any news relating
to this Agreement without the prior written approval of the other Party,
which approval shall not be unreasonably withheld, or except as otherwise
required by law.
	13.5	 	
Either Party may assign any rights or obligations of this Agreement to a
party who acquires all or substantially all of the relevant assets of the
assigning Party by merger or sale of assets or otherwise. In the case
where the Agreement is to be assigned or transferred by merger or sale of
assets or otherwise of Gene Logic to a third party listed in
Exhibit B, or
its Affiliate, the written consent of Affymetrix must be obtained.
	13.6	 	
This Agreement shall be construed according to the laws of California
without regard to conflict of law provisions.
	13.7	 	
In the event of any controversy or claim relating to, arising out of or
in any way connected to any provision of this Agreement (“Dispute”), the
Parties shall seek to settle their differences amicably between
themselves. Any unresolved Dispute shall be finally resolved by final and
binding arbitration. Whenever a Party shall decide to institute
arbitration proceedings, it shall give written notice to that effect to
the other Party. The Party giving such notice shall refrain from
instituting the arbitration proceedings for a period of ten (10) days
following such notice to allow the Parties to attempt to resolve the
Dispute between themselves. If the Parties are still unable to resolve
the dispute, the Party giving notice may institute the arbitration
proceeding under the rules of JAMS. Arbitration shall be held in the city
of the defendant’s home office and, if the plaintiff prevails in such
arbitration, the reasonable travel expenses of the plaintiff will be paid
by the defendant. The arbitration shall be conducted before a single
arbitrator mutually chosen by the Parties, but if the parties have not
agreed upon a single arbitrator within fifteen (15) days after notice of
the institution of the arbitration proceeding, then a single arbitrator
shall be chosen under JAMS rules All arbitrator(s) eligible to conduct
the arbitration must undertake in writing as a condition of service to
render their opinion(s) promptly after the final arbitration hearing. No
arbitrator

22

CONFIDENTIAL TREATMENT REQUESTED

 

	 	 	 
	 	 	
shall have the power to award punitive damages or any award of
multiple damages under this
Agreement and such awards are expressly prohibited. Decisions of the
arbitrator shall be final and binding on the Parties. Judgment on the
award of the arbitrator may be entered in any court having jurisdiction
thereof. Except to the extent entry of judgment and any subsequent
enforcement may require disclosure, all matters relating to the
arbitration, including the award, shall be held in confidence by the
Parties.
	13.8	 	
The waiver by either Party of a breach or a default of any provision of
this Agreement by the other Party shall not be construed as a waiver of
any succeeding breach of the same or any other provision, nor shall any
delay or omission on the part of either Party to exercise or avail itself
of any right power or privilege that it has or may have hereunder operate
as a waiver of any right, power or privilege by such Party.
	13.9	 	
This Agreement and the documents referred to herein are the full
understanding of the Parties with respect to the subject matter hereof and
supersede all prior understandings and writings relating to the subject
matter herein. No waiver alteration or modification of any of the
provisions herein shall be binding unless in writing and signed by the
Parties by their duly authorized representatives. This Agreement shall
replace and supercede in their entirety the agreement effective as of
January 1, 1999 between Gene Logic and Affymetrix and all amendments
thereto (collectively, the “Prior Agreement”). Notwithstanding the
foregoing, where this Agreement adds, deletes or modifies a term from the
Prior Agreement, the applicability and effect of such addition, deletion
or modification shall be prospective from the Effective Date of this
Agreement only (i.e. not retroactive) and the Prior Agreement shall govern
all circumstances prior to the Effective Date of this Agreement unless
otherwise expressly and unambiguously stated herein. No waiver alteration
or modification of any of the provisions herein shall be binding unless in
writing and signed by the Parties by their authorized representatives.
	13.10	 	
The headings in this Agreement are for convenience only and shall not be
considered in construing this Agreement.
	13.11	 	
In the event that any provision of this Agreement is held by a court of
competent jurisdiction to be unenforceable because it is invalid or in
conflict with any law of any relevant jurisdiction, the validity of the
remaining provisions shall not be affected, and the rights and obligations
of the Parties shall be construed and enforced as if the Agreement did not
contain the particular provision(s) held to be unenforceable.
	13.12	 	
This Agreement shall be binding on and inure to the benefit of the
Parties and their successors and permitted assigns.
	13.13	 	
None of the provisions of this Agreement shall be for the benefit of or
enforceable by any third party.
	13.14	 	
Any notice required under this Agreement shall be made by overnight mail
or courier to the addresses below.

	 	If to Gene Logic:

Gene Logic Inc.

708 Quince Orchard Road

Gaithersburg, MD 20878

Attn: Chief Financial Officer

23

CONFIDENTIAL TREATMENT REQUESTED

 

	 	If to Affymetrix:

Affymetrix, Inc.

3380 Central Expressway

Santa Clara, California 95051

Attn: President

	 	 	 
	13.15	 	
The Parties shall not be liable for delay or nonperformance if
performance is rendered impracticable by the occurrence of any condition
beyond the reasonable control of a Party, if such Party has used
reasonable efforts to avoid such occurrence. Such Party shall give notice
to the other Party in writing promptly, and thereupon the affected Party’s
performance shall be excused and the time for performance shall be
extended for the period of delay or inability to perform due to the
occurrence.
	13.16	 	
This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original but all of which together shall
constitute one and the same instrument.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed by their properly and duly authorized officers or representatives as
set forth below.

	 	 	 
	Affymetrix, Inc.
	 
	 
	/s/ Susan E. Siegal

	By:	 	Susan E. Siegal
		 	

	Date:	 	12/20/01
		 	 
	 
	Gene Logic Inc.
	 
	 
	/s/ Mark D. Gessler

	By:	 	Mark D. Gessler
		 	

	Date:	 	12/20/01

24

CONFIDENTIAL TREATMENT REQUESTED

 

Exhibit A

Service Recipient terms

Expression Service Addendum

This Addendum contains terms and conditions in addition to the general Terms
and Conditions of Affymetrix, Inc. (“AFX”) relevant to Buyer.

“Expression Probe Array Data” shall mean data from expression probe arrays.

“Genetic Inventions” shall mean all genetic sequence (including related
protein) and function inventions discovered by Buyer through the use of an
Expression Probe Array Data including, without limitation, any invention which
is covered by an issued patent that contains data from the Expression Probe
Array Data or was supported during patent prosecution by data obtained from the
Expression Probe Array Data.

Restricted Use Rights. Buyer may only use the Expression Probe Array Data
provided hereunder to investigate the presence and/or levels of expressed
nucleic acid sequences in the ordinary course of Buyer§s normal internal
pharmaceutical and diagnostic research and development activities including
clinical trials. In addition, Buyer agrees not to (a) transfer an Expression
Probe Array Data to any third party; or (b) provide services to or on behalf
of any third party that relate to an Expression Probe Array Data; or (c)
distribute, transfer, license or otherwise make available to a third party any
data or database that is obtained from the use of an Expression Probe Array
Data, except i) Buyer may license data obtained from the Expression Probe Array
Data to a third party licensee specifically related to a particular drug or
target that has been discovered through use of the Expression Probe Array Data
when such third party licensee will distribute such drug or target, ii) Buyer
may transfer data within a bona fide collaboration in which Buyer’s
collaborator has provided substantial scientific input to experimental design
and such relationship is set forth in an agreement signed by all parties prior
to the use of any Expression Probe Array Data to generate such data (bona fide
collaborations do not include arrangements whose primary purpose is to give a
third party access to data or databases or provide nucleic acid hybridization
services), iii) Buyer may transfer data to a third party so long as Buyer
receives no consideration or other quid-pro-quo for such transfer (e.g. such
transfer cannot be contingent on the third party and Buyer exchanging other
goods, services or intellectual property), or iv) Buyer may publish data as
part of a normal, peer reviewed scientific publication or public scientific
presentation; or (d) use an Expression Probe Array Data or data therefrom in a
clinical diagnostic setting. Buyer agrees that third parties may only receive
data from Expression Probe Array Data under (c)(i)-(iii) hereof pursuant to
written agreements containing obligations explicitly benefitting AFX that are
no less restrictive than those in this Agreement and which require such third
party recipients not to sublicense or further distribute or transfer such data.

Intellectual Property. If Buyer elects, at its sole discretion, to
commercialize a Genetic Invention, then Buyer agrees to negotiate in good faith
with AFX for at least a non-exclusive license, but only in the field of probe
arrays. Such license will be negotiated to include commercially reasonable
royalty payments, and need only be provided if a third party has not already
been granted a conflicting license (or an option to obtain such a license) at
the time the Genetic Invention is made. Buyer need not disclose Genetic
Inventions to AFX until such time as corresponding patents are published
disclosing such Inventions.

Confidentiality. Buyer agrees not to disclose any or all of the contents of
this Agreement to any third party except: with the prior written consent of
AFX; if required to do so by a final order of a court of competent
jurisdiction; or, as is otherwise required by applicable law following notice
of not less than thirty (30) days to the other parties hereto.

	 	 	 
	
INSTITUTION NAME (Please print):
	 
	

	 
	By:	 	
 

	 
	Name:	 	
 

	 
	Title:	 	
 

	 
	Date:	 	
 

	 
	 	 	
 

Signature of Buyer Officer or Designee. By signing the above,

the signatory is representing and warranting that they are

authorized to enter into this Agreement on behalf of Buyer.

25

CONFIDENTIAL TREATMENT REQUESTED

 

Exhibit B

Third Party List

[...***...]

26

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Exhibit C
Initial Forecast

[...***...]

27

CONFIDENTIAL TREATMENT REQUESTED

 

Exhibit D

Exemplary Significant Physical Defects1

I. Examples of Items That Are Significant Physical Defects

[...***...].

II. Examples of Items That Are Not Significant Physical Defects

[...***...].

28

CONFIDENTIAL TREATMENT REQUESTED

 

Exhibit E

Amendment dated January 9, 2001 to the agreement between Gene Logic and

Affymetrix dated January 1, 1999 (“Prior Agreement”)

We understand from our recent meeting with you that Gene Logic has a
collaboration with [...***...] and that Gene Logic and [...***...] desire for Gene Logic
to purchase a [...***...] Custom Probe Array design from Affymetrix under the
Prior Agreement; the Target Sequences for such Custom Probe Array design will
be generated by Gene Logic and submitted by Gene Logic to Affymetrix. Gene
Logic will be entitled to purchase such Custom Probe Arrays from Affymetrix
pursuant to the terms and conditions, including price terms, of the Prior
Agreement, and [...***...] will be entitled to purchase such Custom Probe Arrays
from Affymetrix pursuant to the terms and conditions, including price terms, of
the current probe array supply agreement in effect between [...***...] and
Affymetrix.

We also understand from you that [...***...] has authorized Gene Logic to permit
Affymetrix to manufacture and sell such [...***...] Custom Probe Arrays to
other Gene Logic ToxExpress subscribers subject in each case to the probe array
supply terms and conditions, including price terms, in effect between the
respective ToxExpress subscriber and Affymetrix; provided that such ToxExpress
subscribers (other than [...***...]) may only use such Custom Probe Arrays for
expression analysis in the field of toxicology research and not for any other
research and development purpose. In addition to accepting Affymetrix’ probe
array supply terms and conditions, Affymetrix acknowledges that purchasers
other than [...***...] or Gene Logic of such [...***...] Custom Probe Arrays will be
required under their respective agreements with Gene Logic to provide notice
within 15 days of filing a patent application and provide a copy of said filed
application and to grant nonexclusive, fully paid-up, royalty-free licenses
back to Gene Logic and other ToxExpress subscribers for any toxicity markers
that are discovered using such Custom Probe Arrays; Gene Logic shall be
responsible for imposing, monitoring and enforcing this requirement.

Subject to Gene Logic’s payment of the applicable fees as described in the
Prior Agreement, Affymetrix agrees to design, manufacture and make available
for sale such [...***...] Custom Probe Arrays and to limit the distribution of
such Custom Probe Arrays to Gene Logic, [...***...] and other Gene Logic ToxExpress
subscribers; Gene Logic will submit a complete written list of current
ToxExpress subscribers to Affymetrix when it submits the [...***...] Target
Sequences and will make periodic updates to such list as changes in its
subscription base occur. For the avoidance of doubt, the design fee(s) will be
paid to Affymetrix by Gene Logic as described in the Prior Agreement and the
price charged by Affymetrix for such Custom Probe Arrays will be in accordance
with then-current price terms and conditions in effect between Affymetrix and
each individual purchaser; except for their respective agreements already in
effect with Affymetrix, neither [...***...] nor Gene Logic will have any input into
the price charged by Affymetrix for such Custom Probe Arrays. Also for clarity,
neither Gene Logic nor [...***...] shall have any intermediary role in the purchase
of Custom Probe Arrays by, or delivery of Custom Probe Arrays to, other
parties.

Gene Logic represents and warrants that the foregoing information is accurate,
that Affymetrix has the fully paid-up, royalty-free worldwide right and license
under Gene Logic’s and [...***...] intellectual property rights (including any
toxicity markers discovered using the Custom Probe Arrays) to make, have made,
use, sell, offer to sell, import, reproduce, modify, prepare derivative works
and distribute Custom Probe Arrays (including through multiple tiers of
distribution), as contemplated herein, and that Gene Logic has the capacity and
authority to enter into and fully perform under this Second Amendment to the
Prior Agreement. Without limiting the foregoing, Gene Logic shall be fully
responsible for the Target Sequences, and Gene Logic will settle or defend any
legal proceeding brought against Affymetrix, its Affiliates, or customers or
suppliers of either, in connection with the Target Sequences in accordance with
Section 10.1 of the Prior Agreement.

29

CONFIDENTIAL TREATMENT REQUESTED

 

Exhibit F

[...***...].

30

CONFIDENTIAL TREATMENT REQUESTED

 

Exhibit G

Proposed deviations from Custom Probe Array design specifications:

[...***...]

For the avoidance of doubt, the Parties agree that (i) all information relating
to probe sequence and/or selection thereof is acknowledged by Gene Logic to be
the Confidential Information of Affymetrix and any improvement based thereupon
shall be deemed by the Parties to be a Chip Improvement Invention and subject
to Section 6 of the Collaboration Agreement; and (ii) all information relating
to Target Sequence and/or selection thereof is acknowledged by Affymetrix to be
the Confidential Information of Gene Logic and any improvement based thereupon
shall be subject to Section 6 of the Collaboration Agreement.

31

CONFIDENTIAL TREATMENT REQUESTED

 

Exhibit H

Affymetrix Custom Probe Array Design Guide

(see attached)

[...***...]

32

CONFIDENTIAL TREATMENT REQUESTED

 

Exhibit I

List prices as of January 1, 2002

Standard Probe Arrays

USD

[...***...]

33

CONFIDENTIAL TREATMENT REQUESTEDex10-74

 

EXHIBIT 10.74

CONSULTING SERVICES AGREEMENT

     THIS Agreement (“Agreement”), effective June 18, 2001 is entered into by and
between Gene Logic Inc. (“GLGC”), whose place of business is at 708 Quince
Orchard Road, Gaithersburg, Maryland 20878, and J. Stark Thompson, whose
address is: 207 Walnut Ridge Lane, Chadds Ford, Pennsylvania 19317
(“Consultant”).

WITNESSETH:

            WHEREAS, GLGC is engaged in the business of generating and commercializing a
database comprising, in part, biological sequences and/or expression profiling;
and

            WHEREAS, Consultant has knowledge and expertise regarding general
corporate matters and

            WHEREAS, GLGC desires to make use of the specialized knowledge and
expertise of Consultant;

            NOW, THEREFORE, in consideration of the mutual covenants and conditions
contained herein, Consultant and GLGC agree as follows:

	1.	 	Services. Subject to the terms and conditions of this Agreement,
GLGC hereby appoints Stark Thompson as a consultant to its business and
Consultant hereby accepts such appointment. Consultant shall provide
advice, suggestions and recommendations to GLGC, based on the
proprietary and/or confidential information provided by GLGC, and devote
such time as reasonably necessary to assist the company in developing
and advancing such program. Consultant agrees to utilize his expertise
and creative talents in providing these services and shall perform them
in a timely and professional manner consistent with industry standards.
Consultant agrees that during the term of this Agreement, and any
subsequent extension thereto, he will provide his services under the
direction of Mark Gessler, Chairman and CEO (or his designee).
Consultant’s responsibilities as a consultant shall include but not be
limited to consultation with regard to general corporate matters.
	 
	 	 	When necessary, Consultant will consult at GLGC’s facilities or at such other
locations as GLGC may designate. Consultant will make reports to GLGC as appear
reasonable and necessary to
GLGC.
	 
	2.	 	Compensation. In consideration for the services during the term of
this Agreement and while this Agreement is in force, Consultant shall
receive compensation at a rate of Two Hundred Dollars ($200.00) per hour
of services rendered on a per diem basis. Consultant will keep and
maintain a record by date of the hours of work and description of work
performed. This record shall be reflected in Consultant’s monthly
invoice to GLGC, whereupon GLGC shall make payment to Consultant within
thirty (30) days of receiving said invoice. In addition, Consultant will
be reimbursed for all reasonable and necessary out-of-pocket expenses
(including travel, lodging, and the like), which are incurred at the
request of and approved in advance by GLGC pursuant to GLGC’s current
travel policy, a copy of which is available upon request.

 

 

	3.	 	Confidentiality. In view of GLGC’s proprietary rights and interests
concerning its facilities and technology, Consultant agrees that during
the term of this Agreement and any subsequent extension(s) thereto and
for a period of five (5) years thereafter, Consultant agrees to keep
strictly confidential and not use for his/her own benefit or for the
benefit of any third party any information which he/she may acquire
relating to GLGC’s business, whether such information is disclosed or
made known by GLGC to Consultant or is generated by Consultant in the
course of performing the services hereunder. By way of illustration and
not limitation, such shall include all information, communicated by any
means, relating to the business of GLGC that is not available to the
general public, including its technical and business information,
products, assets, inventions, know-how, research programs, biological
materials, processes, designs, trade secrets, security systems, media
and/or cell lines, improvements, discoveries, databases, software
programs, software source documents, codes, passwords, development
tools, budgets and unpublished financial information, licenses, and
other data, both technical and non-technical, prospects, protocols,
clinical parameters or markers and other information associated with
this Agreement and the methods by which GLGC generates and manages gene
expression data, whether or not patentable or copyrightable.
	 
	 	 	Consultant shall not disclose such information to any third party or use such
information for any purpose, except as provided herein, without the prior
written approval of GLGC. Consultant shall have no obligation with respect to
any portion of such information which:

	 	a)	 	is or later becomes generally available to the public by use
publication or the like, through no fault of Consultant;
	 
	 	b)	 	is obtained from a third party who had the legal right to disclose
the same to Consultant and who is not under an obligation of
confidentiality to GLGC; or
	 
	 	c)	 	Consultant already possesses, as evidenced by written records,
predating receipt thereof from GLGC.

	 	 	Specific information disclosed to Consultant by GLGC shall not be deemed to be
available to the public or in prior possession of Consultant merely because
such specific information is embraced by more general information available to
the public or in prior possession of Consultant.
	 
	4.	 	New Developments. Consultant agrees that any information, including
but not limited to discoveries, inventions, innovations, suggestions,
know-how, ideas and reports made by Consultant which either results from
information disclosed by GLGC, or is developed as a result of
Consultant’s services under this Agreement, shall become the sole
property of GLGC without further compensation to Consultant and shall be
promptly disclosed to GLGC. Consultant will treat such new developments
as information which is subject to the confidentiality provisions of
Paragraph 3 herein. GLGC shall have the unrestricted right to use all
new developments under this Agreement.

2

 

	5.	 	Patent Rights and Licenses. If patentable subject matter results
hereunder, Consultant shall assist GLGC in the preparation and
prosecution of appropriate patent applications and shall without further
compensation execute appropriate documents acknowledging the assignment
of his/her rights in such subject matter and applications to GLGC. All
expenses incidental to the filing and prosecution of any such patent
applications shall be borne by GLGC. The disclosure of proprietary information by GLGC to Consultant
shall not result in any obligation to grant Consultant any rights in and
to said proprietary subject matter.
	 
	6.	 	Non-Confidentiality. Consultant agrees that during the term of this
Agreement, he/she will not disclose to GLGC any information which is
confidential or proprietary to any third party.
	 
	7.	 	Non-Compete/Non-Solicitation. Consultant agrees that he/she will not
work on the development of products for competing companies that will
directly compete in the marketplace with products worked on while
employed by GLGC, for a period of one year after termination of work
completed hereunder. For purposes of this Agreement, “Products” shall
mean a database comprising, in part, biological sequences and/or gene
expression profiles. Consultant further agrees that, during the period
of his/her retention by GLGC, he/she will not engage in any other
activities which conflict with his/her obligations to GLGC as related to
the scope of the services hereunder. For the period of his/her retention
by GLGC and for one (1) year after the date of termination of the
Agreement for any reason, Consultant will not (i) induce any employee of
GLGC to leave the employ of GLGC or (ii) solicit the business of any
client, alliance partner or customer of GLGC (other than on behalf of
GLGC).
	 
	8.	 	Independent Contractor. For the purposes of this Agreement,
Consultant shall be an independent contractor without the authority to
bind or act as agent for GLGC or its employees for any purpose. All
taxes and social security payments shall be the sole responsibility of
Consultant.
	 
	9.	 	Publicity. Neither party hereto will use the name of the other party
in publicity or advertising involving this Agreement without the prior
written approval of the other party hereto.
	 
	10.	 	Assignment. This Agreement may not be assigned by Consultant without
the prior written consent of GLGC.
	 
	11.	 	Governing Law. This Agreement shall be construed in accordance with
the laws of the State of Maryland. Consultant hereby expressly consents
to the personal jurisdiction of the state and federal courts located in
Maryland for any lawsuit filed there against him/her by GLGC arising
from or relating to this Agreement
	 
	12.	 	Warranties. The parties warrant and represent that they have the
right to enter into this Agreement. Consultant further warrants and
represents that the terms of this Agreement are not inconsistent with
other contractual obligations, express or implied, which he\she may
have.
	 
	13.	 	Term and Termination. This Agreement shall be effective for a one (1)
year period beginning June 18, 2001 and ending June 17, 2002 and may be
extended in writing by mutual consent of the parties. Either party may
terminate this Agreement upon thirty (30) days’ written notice. Any
rights or obligations set forth herein which are accrued prior to the
termination of this Agreement, shall survive termination of this
Agreement.

3

 

	14.	 	Amendments. No modification to this Agreement shall be effective
unless made in writing and duly executed by or on behalf of each party.
	 
	15.	 	Entire Agreement. This Agreement constitutes the entire Agreement
between the parties with respect to the subject matter hereof and
supersedes all prior agreements and understandings between the parties
(whether written or oral) relating to said subject matter.
	 
	16.	 	Counterparts. This Agreement may be executed in two or more
counterparts, including by facsimile transmission, each of which shall
be deemed an original, but all of which together shall constitute one
and the same instrument.

            IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates
set forth below.

	 	 	 	 	 
	Gene Logic Inc.	 	
Stark Thompson
	 
	By:	/s/ MARK D. GESSLER	 	
/s/ J. STARK THOMPSON
	 	
	 	

	 	Mark D. Gessler, Chairman & CEO	 	 	
Stark Thompson
	 
	Date: 	6/25/01	 	Date: 	
7/02/01
	 	
	 	 	

4

 

TERMINATION AGREEMENT

     The undersigned agree that the Consulting Services Agreement (the
“Agreement”), effective June 18, 2001, entered into by and between Gene Logic
Inc. and J. Stark Thompson is hereby terminated effective immediately.

     IN WITNESS WHEREOF, the parties have entered into this Termination
Agreement effective as of the 31st day of December, 2001.

	 	 	 	 	 
	 	 	GENE LOGIC INC
	 
	 	 	
By:
	 	/s/ Mark D. Gessler

Mark D. Gessler

Chairman, CEO and President
	 
	 	 	
By:
	 	/s/ J. Stark Thompson

J. Stark Thompson

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]