Document:

Prepared by MERRILL CORPORATION

QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 10.5    
  

 
 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT    
  

    THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Agreement"), effective as of April 27, 2001, is made by and between NANOGEN, INC., a
Delaware corporation (hereinafter the "Company"), and GERARD A. WILLS, (hereinafter "Executive"). 

RECITALS  

    WHEREAS, the Company and Executive entered into an Employment Agreement, dated April 26, 2001 (the "Previous Employment Agreement"); and 

    WHEREAS,
the Company and Executive wish to amend and restate the Previous Employment Agreement. 

    NOW,
THEREFORE, the Company and Executive, in consideration of the Executive's continued employment with the Company, agree as follows: 

 
 

ARTICLE I.    
    
    TERM OF AGREEMENT    
  

    A.  Commencement Date.  The terms of this Agreement shall govern Executive's employment with the Company
from April 26, 2001 ("Commencement Date") and this Agreement shall expire after a period of three (3) years from the Commencement Date, unless terminated earlier pursuant to
Article 6. 

    B.  Renewal.  The term of this Agreement shall be automatically renewed for successive, additional three
(3) year terms unless either party delivers written notice to the other at least ninety (90) days prior to the expiration date of this Agreement of an intention to terminate this
Agreement or to renew it for a term of less than three (3) years but not less than (1) year. If the term of this Agreement is renewed for a term of less than three (3) years, then
thereafter the term of this Agreement shall be automatically renewed for successive, additional identical terms unless either party delivers a written notice to the other at least ninety
(90) days prior to a termination date of this Agreement of an intention to terminate this Agreement or to renew it for a different term of not less than one (1) year. Any renewal bonus
will be negotiated as mutually agreed to at the time of any renewal of this Agreement. 

    If
this Agreement is not renewed at the end of any term hereof by the Company for any reason except death, disability or retirement of Executive, notwithstanding anything herein
elsewhere contained, Executive shall be paid his salary, as provided for in Section 3.A hereof, and receive the other benefits applicable under Article 4 hereof, for an additional six
(6) months after the termination date hereof. 

 
 

ARTICLE II.    
    
    EMPLOYMENT DUTIES    
  

    A.  Title/Responsibilities.  Executive hereby accepts employment with the Company pursuant to the terms
and conditions hereof. Executive agrees to serve the Company in the position of Vice President, Chief Financial Officer and Treasurer. Executive shall have the powers and duties commensurate with such
position, including but not limited to, hiring personnel necessary (in the judgment of the Board of Directors) to carry out the responsibilities for such position. 

1

 

    B.  Full Time Attention.  Executive shall devote his best efforts and his full business time and
attention to the performance of the services customarily incident to such office and to such other services as the Board may reasonably request. 

    C.  Other Activities.  Except upon the prior written consent of the Board of Directors, Executive shall
not during the period of employment engage, directly or indirectly, in any other business activity (whether or not pursued for pecuniary advantage) that is or may be competitive with, or that might
place him in a competing position to that of the Company or any other corporation or entity that directly or indirectly controls, is controlled by, or is under common control with the Company (an
"Affiliated Company"), provided that Executive may own less than two percent of the outstanding securities of any such publicly traded competing corporation. 

 
 

ARTICLE III.    
    
    COMPENSATION    
  

    A.  Base Salary.  Executive shall receive a Base Salary at an annual rate of two hundred
twenty-five thousand dollars ($225,000), payable in accordance with the Company's customary payroll practices. The Company's Board of Directors shall provide Executive with annual
performance reviews, and, thereafter, Executive shall be entitled to such Base Salary as the Board of Directors may from time to time establish in its sole discretion. 

    B.  Achievement Bonus.  The Company shall pay Executive an Achievement Bonus of up to 50% of Executive's
Base Salary annually based upon achievement by the Company of its corporate goals as established and determined by the Board of Directors annually and for other achievements by the Company or the
Executive during the year as approved by the Compensation Committee. The Board of Directors or Compensation Committee, as applicable, shall, in their respective sole discretion, determine whether such
corporate or other goals have been attained or other achievements have occurred. 

    C.  Transaction Bonus.  In addition, in the event of a transaction involving a Change in Control, in a
transaction approved by the Company's Board of Directors, which transaction results in the receipt by the Company's stockholders of consideration with a value representing, in the sole judgment of the
Board of Directors, a significant premium over the average of the closing prices per share of the Company's common stock as quoted on the Nasdaq National Market for 20 trading days ending one day
prior to the public announcement of such transaction (a "Change in Control Transaction"), Executive shall be paid a Transaction Bonus at the closing of such a transaction in the amount equal to one
(1) times 50% of Executive's Base Salary in effect immediately preceding the closing of such a transaction. Executive shall also be paid said Transaction Bonus if the Company enters into a
transaction approved by the Board of Directors which is not a Change in Control Transaction, but which, nonetheless, involves a significant change in the ownership of the Company or the composition of
the Board of Directors of the Company, and which results in significant additional value for the Company's stockholders, as determined by the Board of Directors in its sole discretion and as
specifically designated a significant event by the Board of Directors (a "Significant Event"). In the event Executive receives a Transaction Bonus, no Achievement Bonus will be paid to Executive in
the year in which such Transaction Bonus is paid. 

    If
the Company enters into a transaction which is a Change in Control Transaction, then all of the Executive's stock options received before the date of the transaction shall become
exercisable in full and all of the shares of the common stock of the Company awarded to Executive under the Company's 1997 Stock Incentive Plan and become fully vested. If the Company enters into a
transaction which is not a Change in Control Transaction but which is a Significant Event, then the Board of Directors may, in its sole discretion, determine that all, or a portion, of the Executive's
stock options received before the effective date of the transaction shall become exercisable in full and all, or a portion, of the shares 

2

 

of the common stock of the Company awarded to Executive under the Company's 1997 Stock Incentive Plan shall become fully vested. 

    D.  Withholdings.  All compensation and benefits to Executive hereunder shall be subject to all federal,
state, local and other withholdings and similar taxes and payments required by applicable law. 

 
 

ARTICLE IV.    
    
    EXPENSE ALLOWANCES AND FRINGE BENEFITS    
  

    A.  Vacation.  Executive shall be entitled to three (3) weeks, plus one (1) additional day
for each completed year of employment with the Company, of annual paid vacation during the term of this Agreement. 

    B.  Benefits.  During the term of this Agreement, the Company shall also provide Executive with the usual
health insurance benefits it generally provides to its other senior management employees, other than life insurance (which shall be paid directly by Executive). As Executive becomes eligible in
accordance with criteria to be adopted by the Company, the Company shall provide Executive with the right to participate in and to receive benefits from accident, disability, medical, pension, bonus,
stock, profit-sharing and savings plans and similar benefits made available generally to employees of the Company as such plans and benefits may be adopted by the Company, provided that Executive
shall during the term of this Agreement be entitled to receive at a minimum standard medical and dental benefits similar to those typically afforded to Chief Executive Officers in similar sized
biotechnology companies,
excluding life insurance. The amount and extent of benefits to which Executive is entitled shall be governed by the specific benefit plan as it may be amended from time to time. 

    C.  Business Expense Reimbursement.  During the term of this Agreement, Executive shall be entitled to
receive proper reimbursement for all reasonable out-of-pocket expenses incurred by him (in accordance with the policies and procedures established by the Company for its senior
executive officers) in performing services hereunder, provided Executive properly accounts therefor. 

 
 

ARTICLE V.    
    
    CONFIDENTIALITY    
  

    A.  Proprietary Information.  Executive represents and warrants that he has executed and delivered to the
Company the Company's standard Proprietary Information, Inventions and Dispute Resolution Agreement in form acceptable to the Company's counsel. 

    B.  Return of Property.  All documents, records, apparatus, equipment and other physical property which
is furnished to or obtained by Executive in the course of his employment with the Company shall be and remain the sole property of the Company. Executive agrees that, upon the termination of his
employment, he shall return all such property (whether or not it pertains to Proprietary Information as defined in the Proprietary Information, Inventions and Dispute Resolution Agreement), and agrees
not to make or retain copies, reproductions or summaries of any such property. 

 
 

ARTICLE VI.    
    
    TERMINATION    
  

    A.  By Death.  The period of employment shall terminate automatically upon the death of Executive. In
such event, the Company shall pay to Executive's beneficiaries or his estate, as the case may be, any accrued Base Salary, any bonus compensation to the extent earned, any vested deferred compensation
(other than pension plan or profit-sharing plan benefits which will be paid in accordance with the
applicable plan), any benefits under any plans of the Company in which Executive is a participant to the full extent of Executive's rights under such plans, any accrued vacation pay and any 

3

 

appropriate business expenses incurred by Executive in connection with his duties hereunder, all to the date of termination (collectively "Accrued Compensation"), but no other compensation or
reimbursement of any kind, including, without limitation, severance compensation, and thereafter, the Company's obligations hereunder shall terminate. 

    B.  By Disability.  If Executive is prevented from properly performing his duties hereunder by reason of
any physical or mental incapacity for a period of more than 90 days in the aggregate in any 365-day period, then, to the extent permitted by law, the Company may terminate the
employment on the 90th day of such incapacity. In such event, the Company shall pay to Executive all Accrued Compensation, and shall continue to pay to Executive the Base Salary until such time (but
not more than 90 days following termination), as Executive shall become entitled to receive disability insurance payments under the disability insurance policy maintained by the Company, which
disability policy shall provide for full payment of Executive's Base Salary during the period of disability, but no other compensation or reimbursement of any kind, including without limitation,
severance compensation, and thereafter the Company's obligations hereunder shall terminate. Nothing in this Section shall affect Executive's rights under any disability plan in which he is a
participant. 

    C.  By Company for Cause.  The Company may terminate Executive's employment for Cause (as defined below)
without liability at any time with or without advance notice to Executive. The Company shall pay Executive all Accrued Compensation, but no other compensation or reimbursement of any kind, including
without limitation, severance compensation, and thereafter the Company's obligations hereunder shall terminate. Termination shall be for "Cause" in the event of the occurrence of any of the following:
(a) any intentional action or intentional failure to act by Executive which was performed in bad faith and to the material detriment of the Company; (b) Executive intentionally refuses
or intentionally fails to act in accordance with any lawful and proper direction or order of the Board; (c) gross negligence by Executive in carrying out the duties of employment; or
(d) Executive is convicted of a felony crime involving moral turpitude, provided that in the event that any of the foregoing events is capable of being cured, the Company shall provide written
notice to Executive describing the nature of such event and Executive shall thereafter have five (5) business days to cure such event. 

    D.  At Will.  At any time, the Company may terminate Executive's employment without liability other than
as set forth below, for any reason not specified in Section 6.C above, by giving thirty (30) days advance written notice to Executive. If the Company elects to terminate Executive
pursuant to this Section 6.D prior to a Change in Control, the Company shall pay to Executive all Accrued Compensation and shall continue to pay to Executive as provided herein Executive's
Salary for six (6) months from the date of such termination as severance compensation. If the Company or its successor elects to terminate Executive pursuant to this Section after a Change in
Control, the Company (or its successor) shall continue to pay to Executive as provided herein Executive's Salary for twelve (12) months from the date of such termination as severance
compensation. Upon payment of the severance benefits described herein, all obligations of the Company (or its successor) shall terminate. 

    During
the period when such severance compensation is being paid to Executive, Executive shall not (i) engage, directly or indirectly, in any other business activity that is
competitive with, or that places him in a competing position to that of the Company or any Affiliated Company (provided that Executive may own less than two percent (2%) of the outstanding securities
of any publicly traded corporation), or (ii) hire, solicit, or attempt to hire on behalf of himself or any other party any employee or exclusive consultant of the Company. If the Company
terminates this Agreement or the employment of Executive with the Company other than pursuant to Section 6.A, 6.B or 6.C, then this Section 6.D shall apply. 

4

 

    E.  Constructive Termination.  In the event that the Company shall materially reduce the powers and
duties of employment of Executive resulting in a material decrease in the responsibilities of Executive which are inconsistent with Executive acting as Vice President, Chief Financial Officer and
Treasurer of the Company, such action shall be deemed to be a termination of employment of Executive without cause pursuant to Section 6.D. In the event of a Change in Control of the Company in
which the Company shall become a division or subsidiary of a larger organization, references to the Vice President, Chief Financial Officer and Treasurer of the Company shall be deemed to mean the
Vice President, Chief Financial Officer and Treasurer of such division or subsidiary for purposes of this Section 6.E. 

    1.  Change in Control.  For purposes of this Agreement, a "Change in Control" shall have occurred if at
any time during the term of Executive's employment hereunder, any of the following events shall occur: 

	a.
	The
consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if more than 50% of the combined voting power of the
continuing or surviving entity's securities outstanding immediately after such merger, consolidation or other reorganization is owned by persons who were not stockholders of the Company immediately
prior to such merger, consolidation or other reorganization;

	b.
	A
change in the composition of the Board, as a result of which fewer than one-half of the incumbent directors are directors who either (1) had been directors of
the Company 24 months prior to such change; or (2) were elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the directors who had been
directors of the Company 24 months prior to such change and who were still in office at the time of the election or nomination; or

	c.
	Any
"person" (as such term is used in Section 13(d) and Section 14 of the Exchange Act) by the acquisition of securities is or becomes the beneficial owner, directly
or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company's then outstanding securities ordinarily (and apart from rights accruing under special
circumstances) having the right to
vote at elections of directors (the "Base Capital Stock") except that any change in the relative beneficial ownership of the Company's securities resulting solely from a reduction in the aggregate
number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person's ownership of securities shall be disregarded until such person increases in any manner, directly or
indirectly, such person's beneficial ownership of any securities of the Company. Thus, for example, any person who owns less than 50% of the Company's outstanding shares, shall cause a Change in
Control to occur as of any subsequent date if such person then acquires an additional interest in the Company which, when added to the person's previous holdings, causes the person to hold more than
50% of the Company's outstanding shares. 

    The
term "Change in Control" shall not include a transaction, the sole purpose of which is to change the state of the Company's incorporation. 

 
 

ARTICLE VII.    
    
    GENERAL PROVISIONS    
  

    A.  Governing Law.  The validity, interpretation, construction and performance of this Agreement and the
rights of the parties thereunder shall be interpreted and enforced under California law without reference to principles of conflicts of laws. The parties expressly agree that inasmuch as the Company's 

5

 

headquarters and principal place of business are located in California, it is appropriate that California law govern this Agreement. 

    B.  Assignment; Successors; Binding Agreement.  

    1.  Executive
may not assign, pledge or encumber his interest in this Agreement or any part thereof. 

    2.  The
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company, operation of law or by agreement in form and substance reasonably satisfactory to Executive, to assume
and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. 

    3.  This
Agreement shall inure to the benefit of and be enforceable by Executive's personal or legal representatives, executors, administrators, successors, heirs,
distributee, devisees and legatees. If Executive should die while any amount is at such time payable to him hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to Executive's devisee, legates or other designee or, if there be no such designee, to his estate. 

    C.  No Waiver of Breach.  The waiver by any party of the breach of any provision of this Agreement shall
not be deemed to be a waiver of any subsequent breach. 

    D.  Notice.  For the purposes of this Agreement, notices and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by certified or registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses set forth below or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be
effective only upon receipt. 

	 	To the Company:	 	Nanogen, Inc.

10398 Pacific Center Court

San Diego, CA 92121

Attn: Chief Executive Officer
	 	

To Executive:	
 	

Gerard Wills

c/o Nanogen, Inc.

10398 Pacific Center Court

San Diego, CA 92121

    E.  Modification; Waiver; Entire Agreement.  No provisions of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing signed by Executive and such officer as may be specifically designated by the Board of the Company. No waiver by either
party hereto at any time of any breach by the other party of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar
or dissimilar provisions or conditions at the same or any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof
have been made by either party which are not expressly set forth in this Agreement. 

    F.  Validity.  The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

    G.  Controlling Document.  This Agreement supersedes any and all prior employment agreements between the
Company and Executive, but does not supersede any other agreements between Company 

6

 

and Executive, including but not limited to, the Nanogen Inc. Restricted Stock Purchase Agreement, any stock option agreements or common stock purchase agreements entered into pursuant to the
Company's 1997 Stock Incentive Plan, and the Nanogen Employees' Handbook and Policies, except as expressly provided herein. In case of conflict between any of the terms and conditions of this
Agreement and the documents herein referred to, the terms and conditions of this Agreement shall control. 

    H.  Executive Acknowledgment.  Executive acknowledges (a) that he has consulted with or has had
the opportunity to consult with independent counsel of his own choice concerning this Agreement, and has been advised to do so by the Company, and (b) that he has read and understands the
Agreement, is fully aware of its legal effect, and has entered into it freely based on his own judgment. 

    I.  Remedies.  

    1.  Injunctive Relief.  The parties agree that the services to be rendered by Executive hereunder are of
a unique nature and that in the event of any breach or threatened breach of any of the covenants contained herein, the damage or imminent damage to the value and the goodwill of the Company's business
will be irreparable and extremely difficult to estimate, making any remedy at law or in damages inadequate. Accordingly, the parties agree that the Company shall be entitled to injunctive relief
against Executive in the event of any breach or threatened breach of any such provisions by Executive, in addition to any other relief (including damages) available to the Company under this Agreement
or under law. 

    2.  Exclusive.  Both parties agree that the remedy specified in Section 7.I.1 above is not
exclusive of any other remedy for the breach by Executive of the terms hereof. 

    J.  Counterparts.  This Agreement may be executed in one or more counterparts, all of which taken
together shall constitute one and the same Agreement. 

7

 

    Executed by the parties as of the day and year first above written. 

	 	 	NANOGEN, INC.
	

 	
 	

By:	

/s/ V. RANDY WHITE   
 V. Randy White
 Chief Executive Officer
	

 	
 	

EXECUTIVE:
	

 	
 	

By:	

/s/ GERARD A. WILLS   
 Gerard A. Wills

8

QuickLinks

Exhibit 10.5

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

ARTICLE I. TERM OF AGREEMENT

ARTICLE II. EMPLOYMENT DUTIES

ARTICLE III. COMPENSATION

ARTICLE IV. EXPENSE ALLOWANCES AND FRINGE BENEFITS

ARTICLE V. CONFIDENTIALITY

ARTICLE VI. TERMINATION

ARTICLE VII. GENERAL PROVISIONSPrepared by MERRILL CORPORATION

QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 10.6    
  

    [Confidential Treatment Requested. Confidential Portions of this Agreement have been redacted and filed separately with the
U.S. Securities and Commission]

 
 

SETTLEMENT AGREEMENT    
  

    This Agreement is entered into this 20th day of July, 2001 by and among NANOGEN, INC., a Delaware corporation, ("Nanogen"); MOTOROLA, INC., a
Delaware corporation, ("Motorola"); MASSACHUSETTS INSTITUTE OF TECHNOLOGY, a Massachusetts corporation, ("MIT"); and GENOMETRIX, INC., a Delaware corporation, ("Genometrix"). 

 
 

RECITALS    
  

    WHEREAS, Genometrix is a licensee of U.S. Patent No. 5,653,939 (the "'939" Patent") pursuant to a license agreement with MIT dated April 1, 1996;
and 

    WHEREAS,
Motorola is a licensee of the '939 Patent pursuant to a license agreement with Genometrix dated July 6, 1999, as amended and restated October 31, 2000; and 

    WHEREAS,
on April 28, 2000, Nanogen instituted a declaratory judgment action against MOTOROLA and MIT, alleging inter alia
invalidity and noninfringement of the '939 Patent in the United States District Court for the Southern District of California, styled Case No. 00 CV 0872 IEG (AJB) (the "Litigation"); and 

    WHEREAS,
on May 30, 2000, Motorola filed its Counterclaims against Nanogen in the Litigation alleging inter alia infringement of
the '939 Patent; and 

    WHEREAS,
Nanogen subsequently filed a First Amended Complaint in the Litigation adding Genometrix as a defendant to the Litigation; and 

    WHEREAS,
Nanogen, Motorola, MIT and Genometrix have agreed to settle the Litigation as among them; and 

    WHEREAS,
in contemplation of such settlement, Nanogen and Motorola wish to enter into a license agreement which grants Nanogen a license under claims 16 and 39 of the '939 Patent; 

    WHEREAS,
in further contemplation of such settlement, Nanogen, Motorola, MIT and Genometrix wish to enter into a Notice Of Stipulated Dismissal Of Claims And Counterclaims Without
Prejudice; and 

    NOW
THEREFORE, in consideration of the mutual acts, covenants and promises set forth herein, the receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows: 

	1.
	Concurrently
with the execution of this Agreement:

	a.
	Nanogen,
Motorola, MIT and Genometrix agree that the Litigation shall be dismissed as between them in the manner as provided in Exhibit A, which is a true and correct copy of
the Notice of Stipulated Dismissal Of Claims And Counterclaims Without Prejudice which shall be filed with the Court. The dismissal of the Litigation shall be without prejudice. ***;

	b.
	Nanogen
and Motorola shall execute a license agreement to claims 16 and 39 of the '939 Patent in the form and content set forth in Exhibit B (the "License Agreement"); 

***Confidential
Material Redacted and Filed with the Commission 

1

 

	c.
	Nanogen,
Motorola, MIT and Genometrix agree to do all acts necessary to consummate the terms and conditions of this Agreement; and

	d.
	Nanogen,
Motorola, MIT and Genometrix agree to bear their own costs and attorneys' fees in connection with the settlement of this matter, subject to existing agreements among
Motorola, MIT and Genometrix. 

	2.
	***

	3.
	***

	4.
	Except
as expressly limited below, each party represents and warrants to the others that: 

4.1  It
is duly organized and validly existing under the laws of its state of incorporation, and has full corporate power and authority to enter into this Agreement and to carry out the
provisions hereof. 

4.2  It
is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and any person executing this Agreement on its behalf has been duly authorized
to do so by all requisite corporate action. 

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

4.4  Each
party has sufficient legal and/or beneficial title and ownership under its intellectual property rights necessary for it to fulfill its obligations under this Agreement. 

4.5  ***

4.6  Exhibit A
to the License Agreement sets forth a complete and accurate list of all patents, patent applications, divisionals, continuations or
continuations-in-part, reissues, renewals or extensions thereof, that contain or may contain Licensed Patents, as that term is defined in the License Agreement. 

4.7  Motorola
is the exclusive licensee of the Licensed Patents in the Licensed Field (as defined in the License Agreement) set forth in Exhibit A to the License Agreement, and
has the right to grant the licenses in the License Agreement. 

4.8  The
terms of this Agreement and the License Agreement are fair and reasonable as to each party and have the effect and character stated in this Agreement and the License Agreement. 

4.9  MIT
and Genometrix represent and warrant that the terms of the Patent License Agreement entered into by and between MIT and Genometrix on or about April 1, 1996, including
amendments thereto, are fair and reasonable as to each party to that agreement and that each grant of licenses, rights or benefits under that agreement by Genometrix resulted in a value to Genometrix
that is at least reasonably equivalent to the value of such license, right or benefit that Genometrix conferred on MIT. 

***Confidential
Material Redacted and Filed with the Commission 

2

 

4.10  Motorola
and Genometrix represent and warrant that the terms of the Amended And Restated License And Research Agreement entered into by and between Motorola and Genometrix on or
about October 31, 2000, including amendments thereto, are fair and reasonable as to each party to that agreement and that each grant of licenses, rights or benefits under that agreement by
Genometrix resulted in a value to Genometrix that is at least reasonably equivalent to the value of such license, right or benefit that Genometrix conferred on Motorola. 

	5.
	This
Settlement Agreement shall be governed by and construed in accordance with the laws of the State of California without reference to its rules regarding choice or conflict of
laws. Any action brought by Nanogen, Motorola or Genometrix for breach of this Agreement shall be filed in the United States District Court for the Southern District of California.

	6.
	This
Agreement shall be effective from and after the date hereof. The agreements and stipulations entered into contemporaneously herewith (Exhibits A and B) are wholly
independent agreements entered into as part of this settlement of the Litigation. Each party's duties, if any, under those exhibits are completely set forth in them respectively.

	7.
	This
Agreement shall be binding upon and inure to the benefit of the successors and assigns of each party; provided, however, that a party may not assign this Agreement in whole or
in part without obtaining the prior written approval of the other parties, except that a party shall have the right to assign this Agreement without the consent of the other parties to any affiliate
or to any purchaser of that party's entire business or of substantially all of that party's assets relating to the subject matter of this Agreement.

	8.
	This
Agreement may be executed in any number of counterparts, each of which shall be an original, which together constitute one and the same instrument.

	9.
	This
Agreement is the result of negotiation and compromise among the parties and no party shall be prejudiced as having been the drafter of the Agreement or any related exhibits
thereto.

	10.
	In
the event that any provision of this Agreement is held invalid or unenforceable for any reason, such unenforceability shall not affect the enforceability of the remaining
provisions of this Agreement and related exhibits and all provisions of this Agreement and related exhibits shall be construed so as to preserve the enforceability hereof.

	11.
	This
Agreement and the related exhibits contain the entire and only agreement between the parties relative to the subject matter hereof and supersede all previous negotiations,
representations, undertakings, and agreements both written and oral heretofore made between the parties as to the subject matter hereof. Any representations, promise or condition in connection
herewith not specifically incorporated herein shall not be binding upon any party. This Agreement may not be modified except in a writing signed by authorized representative of all parties 

3

 

	12.
	Upon
the execution of this Agreement, Nanogen shall pay to Motorola Two Million Five Hundred Thousand Dollars ($2,500,000) in Nanogen's common stock (valued using the opening price
as of the date of the execution of this Agreement). Within four (4) business days, Motorola shall advise Nanogen of the portion of such stock to be allocated pursuant to royalty sharing
agreements among Motorola, MIT, Genometrix and others. Nanogen shall issue such stock to those entities and persons according to such allocation provided by Motorola. Nanogen shall within fourteen
(14) business days of the execution of this Agreement file with the Securities and Exchange Commission a resale shelf registration statement with respect to the stock component of the initial
license fee ***.

	13.
	Except
to the extent expressly authorized by this Agreement or otherwise agreed in writing by the parties, the parties agree that, for the term of the License Agreement and for ***
thereafter, the receiving party (the "Receiving Party") shall keep confidential and shall not publish or otherwise disclose to a third party and shall not use for any purpose other than as provided
for in this Agreement any information furnished to it by another party (the "Disclosing Party") pursuant to this Agreement (the "Confidential Information") unless the Receiving Party can demonstrate
by written proof that such Confidential Information: (1) was already known to the Receiving Party, other than under an obligation of confidentiality, at the time of disclosure by the Disclosing
Party; (2) was generally available to the public or otherwise part of the public domain at the time of its disclosure to the Receiving Party; (3) became generally available to the public
or otherwise part of the public domain after its disclosure and other than through any act or omission of the Receiving Party in breach of the Agreement; (4) was disclosed to the Receiving
Party, other than under an obligation of confidentiality to a third party not to disclose such information to others; or (5) was independently discovered or developed by the Receiving Party
without the use of Confidential Information belonging to the Disclosing Party.

	14.
	Each
party may disclose Confidential Information belonging to another party to the extent such disclosure is reasonably necessary in the following instances: (1) regulatory
filings; (2) prosecuting or defending litigation; (3) complying with applicable governmental regulations; and (4) disclosure to inventors or owners of the '939 Patent, affiliates,
licensees, employees, consultants or agents who are bound by similar terms of confidentiality and non-use at least equivalent in scope to those set forth in this Section and
Section 13. Notwithstanding the foregoing, in the event a party is required to make a disclosure of another party's Confidential Information pursuant to this Section, the Receiving Party will,
except where impracticable, give reasonable advance notice to the Disclosing Party of such disclosure and use best efforts to secure confidential treatment of such information. In any event, the
parties agree to take all reasonable action to avoid disclosure of Confidential Information hereunder.

	15.
	The
parties may want to issue press releases announcing the execution of this Agreement and may desire or be required to issue subsequent press releases relating to the Agreement or
activities thereunder. The parties shall consult with each other reasonably and in good faith and agree with respect to the text and timing of such press releases prior to the issuance thereof,
provided that a party may not unreasonably withhold consent to or delay such releases.

	16.
	Nothing
in this Agreement shall be deemed to diminish, impair or otherwise affect the parties' obligations under the Second Amended Stipulated Protective Order Regarding
Confidential Information, entered on or about July 9, 2001, in Case No. 00CV0872 IEG (AJB) (S.D. Cal.). 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK] 

***Confidential
Material Redacted and Filed with the Commission 

4

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement and the exhibits hereto to be duly executed as of this date hereof by an authorized representative of each on their
behalf, and each party covenants that this instrument and the execution of the exhibits is a voluntary act of each said party and the manner of execution is sufficient to constitute a binding
agreement on its behalf. 

	NANOGEN, INC.	 	MOTOROLA, INC.
	

By:	
 	

/S/ V. RANDY WHITE
 Name: V. Randy White

Title: CEO

Date: 7/20/01	
 	

By:	
 	

/S/ GEORGE TURNER
 Name: George Turner

Title: Corp. VP Motorola Life Sciences

Date: 7/20/01
	
Approved as to form:	
 	

Approved as to form by:
	

By:	
 	

/S/ DOUGLAS E. OLSON
 Name: Douglas E. Olson, Esq.

Counsel for Nanogen	
 	

By:	
 	

/S/ STASIA OGDEN
 Name: Stasia Ogden, Esq.

Counsel for Motorola
	
MASSACHUSETTS INSTITUTE OF TECHNOLOGY	
 	

GENOMETRIX, INC.
	

By:	
 	

/S/ JOHN TURNER
 Name: John. H. Turner

Title: Assoc. Director, Technology Licensing Office

Date: 7/20/01	
 	

By:	
 	

/S/ DAVID JORDAN
 Name: David Jordan

Title: Chief Financial Officer

Date: 7/20/01
	
Approved as to form:	
 	

Approved as to form:
	

By:	
 	

N/A
 Name:

Counsel for MIT	
 	

By:	
 	

N/A
 Name:

Counsel for Genometrix

  

 
 

EXHIBIT A    
  

Douglas
E. Olson (State Bar Number 38649)

F. T. Alexandra Mahaney (State Bar Number 125984)

William C. Tayler (State Bar Number 171704)

BROBECK, PHLEGER & HARRISON LLP

12390 El Camino Real

San Diego, CA 92130-2081

Telephone: (858) 720-2500

Facsimile: (858) 720-2555 

    Attorney
for Plaintiff NANOGEN, INC. 

UNITED
STATES DISTRICT COURT 

SOUTHERN
DISTRICT OF CALIFORNIA 

	NANOGEN, INC., a Delaware Corporation,	 	)	 	Case No. 00 CV 0872 IEG (AJB)
	 	 	)	 	 
	Plaintiff,	 	)

)	 	NOTICE OF STIPULATED DISMISSAL

OF CLAIMS AND COUNTERCLAIMS
	    v.	 	)	 	WITHOUT PREJUDICE
	 	 	)	 	 
	MOTOROLA, INC., a Delaware Corporation,	 	)	 	 
	BECKMAN COULTER, INC., a Delaware	 	)	 	Action Filed: April 28, 2000
	Corporation, MASSACHUSETTS INSTITUTE	 	)	 	 
	OF TECHNOLOGY, a Massachusetts	 	)	 	 
	corporation.	 	)	 	 
	 	 	)	 	 
	Defendants.	 	)	 	 
	 	 	)	 	 
	 	 	)	 	 
	 	 	)	 	 
	
	 	 	 	 

A–1

 

    TO ALL PARTIES AND THEIR COUNSEL OF RECORD: 

    NOTICE
IS HEREBY GIVEN THAT pursuant to Rule 41(a) of the Federal Rules of Civil Procedure, plaintiff Nanogen, Inc. ("Nanogen") and defendants Motorola, Inc.
("Motorola"), Massachusetts Institute of Technology ("MIT") and Genometrix, Inc. ("Genometrix"), by and through their respective counsel of record, stipulate to the voluntary dismissal without
prejudice of all claims and counterclaims made in this action. 

    Pursuant
to said stipulation, plaintiff Nanogen hereby voluntary dismisses without prejudice of its all claims against defendants Motorola, MIT and Genometrix in this action. 

    Pursuant
to said stipulation, defendant and counterclaimant Motorola hereby voluntary dismisses without prejudice of its all claims against Nanogen in this action. 

	DATED: July 20, 2001	 	BROBECK, PHLEGER & HARRISON LLP
	

 	
 	

By:	

/S/ DOUGLAS E. OLSON
 Douglas E. Olson

Attorneys for Plaintiff Nanogen
	

DATED: July 20, 2001	
 	

HAHN & BURNETT
	

 	
 	

By:	

/S/ JANE HAHN
 Jane Hahn

Attorneys for Defendants Motorola, MIT and Genometrix

A–2

  

 
 

EXHIBIT B    
  

    [CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN REDACTED AND FILED SEPARATELY WITH THE U.S.
SECURITIES AND EXCHANGE COMMISSION]

 
 

LICENSE AGREEMENT    
  

    This License Agreement (the "Agreement") is made and entered into this 20th day of July, 2001, by and between Nanogen, Inc. ("Nanogen" as that term is
further defined in Section 1.11 hereof) and Motorola, Inc. ("Motorola"). Nanogen and Motorola are sometimes referred to individually as a "Party" and collectively as the "Parties." 

 
 

RECITALS    
  

    WHEREAS, Genometrix, Inc. is the owner of a license from MIT under U.S. Patent No. 5,653,939 (the "'939 patent") and its foreign counterparts; 

    WHEREAS,
Motorola is the owner of a sublicense from Genometrix under the '939 patent and has the exclusive right, pursuant to such sublicense, to grant further sublicenses thereunder;
and 

    WHEREAS,
Nanogen desires to obtain a sublicense from Motorola under claims 16 and 39 of the '939 Patent. 

    NOW
THEREFORE, in consideration of the mutual undertakings contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties, intending to be legally bound, agree as follows: 

 
 

ARTICLE 1  DEFINITIONS    
  

    The following terms, when they appear in this Agreement with an initial capital letter and without regard to whether they appear in the singular, plural or
possessive form, shall have the meaning defined below: 

    1.1  "Affiliate"
shall mean any corporation or other form of limited liability legal person, partnership, or other form of business entity controlled by, controlling or
under common control with a Party hereto. As used herein, the word and root "control" in the context of a corporation shall mean the ownership, directly or indirectly, of fifty percent (50%) or more
of the voting shares or other equity interests entitled to vote in the election of Directors to the Board of Directors of the corporation; and, in the context of any other form of business entity, the
right to receive fifty percent (50%) or more of the net profits of such entity plus the right to at least a fifty percent (50%) interest in the management and control of such entity; provided that, if
the country of incorporation of such limited liability legal person or the country of domicile of the other form of business entity requires that foreign ownership be less than fifty percent (50%),
the maximum permitted percentage of foreign ownership shall be substituted in this Section 1.1 for fifty percent (50%). 

    1.2  "Effective
Date" shall mean the last date in time adjacent the signature of the authorized representatives of the Parties on the last page of this Agreement. 

B–1

 

    1.3  "Licensed Patents" shall mean: (a) claims 16 and 39 contained in United States Patent No. 5,653,939; (b) any claims contained in a divisional,
continuation or continuation-in-part, reissue, renewal or extension thereof or substitute therefore, or any patent issuing therefrom with claims (i) that read on said
claims 16 or 39 or (ii) on which said claims 16 or 39 read; and (c) the claims in any foreign patent applications and the patents that issue therefrom corresponding to such claims in
clauses (a) or (b) of this Section. 

    1.4  "Disposable
Licensed Product" shall mean that ***, the manufacture, use or sale of which, but for a license granted under this Agreement, would infringe a claim in
the Licensed Patents. 

    1.5  "Instrument
Licensed Product" shall mean that instrument, system or component or part thereof in the Licensed Field, the manufacture, use or sale of which, but for
a license granted under this Agreement, would infringe a claim in the Licensed Patents. 

    1.6  "Licensed
Field" shall mean all fields of use except the field of use of a ***. 

    1.7  "Licensed
Product" shall mean and include any Instrument Licensed Product or Disposable Licensed Product. 

    1.8  "Licensed
Process" means that method, process, procedure or application in the Licensed Field which, but for a license, would infringe a claim in the Licensed
Patents. 

    1.9  "MIT/Genometrix
Agreement" means the Patent License Agreement entered into by and between MIT and Genometrix on or about April 1, 1996, including amendments
thereto made prior to the Effective Date of this Agreement, a copy of which is attached hereto as Exhibit B. 

    1.10  "Nanogen/Beckman
License Agreement" means the License Agreement entered into by and between Nanogen and Beckman Coulter, Inc. ("Beckman") on or about
May 19, 2000. 

    1.11  "Nanogen"
shall mean Nanogen Inc. and its subsidiaries and Affiliates. 

    1.12  ***.

    1.13  "Net
Sales" shall mean ***. 

    1.14  "Third
Party" means any person or entity which is not a Party, an Affiliate of a Party, or a Nanogen Related Party. 

    1.15  "Settlement
Agreement" means that Settlement Agreement entered into on or about the Effective Date of this Agreement by and among Nanogen, Motorola,
Genometrix, Inc., and Massachusetts Institute of Technology ("MIT"). 

 
 

ARTICLE 2  LICENSE GRANT    
  

    2.1  Grant  

    2.1.1  ***.

    2.1.2  ***.

    2.2  ***.

    2.3  ***. 

    2.4  ***. 

    2.5  ***. 

***Confidential
Material Redacted and Filed with the Commission 

B–2

 

    2.6  No Other Licenses  

    2.6.1  ***. 

    2.6.2  Notwithstanding
Section 2.6.1 hereof, ***. 

    2.6.3  ***.

    2.7  Term of License  The term of this Agreement shall be for as long as Nanogen has any obligation to
make any royalty or other payment to Motorola. 

 
 

ARTICLE 3  PAYMENTS TO MOTOROLA    
  

    3.1  License Fee  Nanogen shall pay to Motorola as an initial license fee the non-refundable
sum of Two Million Five Hundred Thousand Dollars ($2,500,000). The initial license fee shall be non-refundable and shall not be a credit or advance against future Nanogen royalty
obligations. The initial licensee fee shall be paid in cash on the Effective Date. 

    3.2  Royalties  Nanogen shall pay to Motorola running royalties equal to ***. 

    3.3  Payments  All cash payments due under this Article 3 shall be made in United States Dollars.
***. 

    3.4  ***.

    3.5  ***. 

    3.6  ***. 

    3.7  ***. 

    3.8  ***: 

    3.8.1  ***.

    3.8.2  ***.

 
 

ARTICLE 4  ROYALTY REPORTS AND BOOKS    
  

    4.1  Royalty Reports  Nanogen shall for each calendar quarter during the term of this Agreement and not
later than *** after the close of such calendar quarter provide to Motorola an accounting report which, at a minimum, shall show:***. 

    4.2  Books and Records  Nanogen shall keep or cause to be kept true and accurate books, records, and
accounts in accordance with generally accepted accounting principles consistently applied covering Nanogen's activities hereunder and containing all information necessary for the true and accurate
determination of the amounts earned and paid hereunder. Nanogen shall, not more than *** per year and upon prior reasonable written notice from Motorola, permit a certified public accountant appointed
and paid for by Motorola (the "Auditor") and reasonably acceptable to Nanogen to inspect each Nanogen or Nanogen Related Party facility manufacturing Licensed Products or practicing Licensed Processes
and to review the previous *** books, records and accounts to verify the amounts earned by Motorola and paid by Nanogen hereunder. The Auditor shall furnish to both Parties reports stating only its
findings during such inspection as to the accuracy, or the nature and extent of any inaccuracy of such books, records, accounts and payments. If such Auditor determines an amount earned by Motorola
which exceeds Nanogen's determination by greater than *** then if Nanogen disagrees with such Auditor's report, Motorola and Nanogen shall jointly select and appoint a second independent auditor to
issue a report verifying the amounts earned by Motorola and paid by Nanogen 

***Confidential
Material Redacted and Filed with the Commission 

B–3

 

hereunder. The fees and expenses of the second independent auditor shall be paid by Nanogen. The second independent auditor's report shall be considered as final and conclusive and not subject to
review or dispute. 

    4.2.1  Any
deficiency identified by the Auditor and, if requested by Nanogen, confirmed by the second auditor, between the amounts actually earned by Motorola under
this Agreement and the amounts reported to be earned and paid on by Nanogen shall be paid to Motorola within *** of receipt by Nanogen of the Auditor's (or second auditor's) report. Nanogen shall also
pay interest each month on such amount at the lesser of: two percent (2%) above the prime rate charged by Citibank N.A. or the highest rate allowed by law. If the deficiency between the amount
actually due to Motorola as reported by the Auditor and, if requested by Nanogen, confirmed by the second auditor and the amount actually paid to Motorola by Nanogen is greater than *** in Motorola's
favor then Nanogen shall reimburse Motorola for the actual and reasonable charges, fees and expenses of the Auditor. 

    4.2.2  If
in any given year *** has previously exercised its audit rights under the***, then Motorola shall not have the right to have an audit performed that year. In
such an event, Nanogen shall provide Motorola with a copy of the reports related to the *** audit, to the extent permitted under the provisions of the***. Nanogen shall not object to *** providing a
copy of such reports directly to Motorola, and Nanogen agrees that this provision, Section 4.2.2, may be disclosed by Motorola to ***. 

 
 

ARTICLE 5  REPRESENTATIONS AND WARRANTIES    
  

    5.1  General Representations and Warranties  Each Party represents and warrants to the other that: 

    5.1.1  Corporate Power  It is duly organized and validly existing under the laws of its state of
incorporation, and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof. 

    5.1.2  Due Authorization  It is duly authorized to execute and deliver this Agreement and to perform its
obligations hereunder, and any person executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate action. 

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

    5.1.4  Intellectual Property Rights  Each Party has sufficient legal and/or beneficial title and
ownership under its intellectual property rights necessary for it to fulfill its obligations under this Agreement. 

    5.2  Motorola's Representations and Warranties  Motorola represents and warrants to Nanogen that: 

    5.2.1  Identification Of Licensed Patents  Exhibit A hereto sets forth a complete and accurate
list of all patents, patent applications, divisionals, continuations or continuations-in-part, reissues, renewals or extensions thereof, that contain or may contain Licensed
Patents. 

    5.2.2  Ownership Of Licensed Patents  Motorola is the exclusive licensee of the Licensed Patents in the
Licensed Field set forth in Exhibit A, and has the right to grant the sublicenses granted herein. 

    5.2.3  ***. 

***Confidential
Material Redacted and Filed with the Commission 

B–4

 
 
 

ARTICLE 6  TERMINATION    
  

    6.1  Termination for Cause  This Agreement may be terminated prior to the expiration of the term of this
Agreement upon the occurrence of any of the following: 

    6.1.1  By
Motorola, upon or after the breach of any material provision of this Agreement by Nanogen if Nanogen has not cured such breach within *** after written notice
thereof by Motorola; or 

    6.1.2  By
Nanogen, upon or after the breach of any material provision of this Agreement by Motorola if Motorola has not cured such breach within *** after written
notice thereof by Nanogen; or 

    6.1.3  By
Nanogen upon *** written notice to Motorola. 

    6.2  Termination By Operation of Law  This Agreement shall terminate in the event that any agreement
required for the grant of the licenses granted in Section 2.1 ***. 

    6.3  Failure to Assert Rights  The failure by one of the Parties under this Agreement to assert its
rights for any breach of this Agreement shall not be deemed a waiver of such rights. The rights and remedies specified herein, except those specified as exclusive, are in addition to and shall not
restrict any right or remedy either Party may have at law or in equity for any breach of this Agreement. 

    6.4  Survival of Obligations  Sections 3.6, 3.7, 3.8 and 6.4 and all of Articles 8, 10, 11, 12, 13 and 14
shall survive the expiration or termination of this Agreement. The termination, relinquishment or expiration of this Agreement for any reason shall be without prejudice to any rights which shall have
accrued to the benefit of either Party under this Agreement prior to such termination, relinquishment or expiration. Such termination, relinquishment or expiration shall not relieve either Party from
obligations which are expressly indicated to survive termination or expiration of this Agreement. 

 
 

ARTICLE 7  ASSIGNMENT    
  

    Nanogen may not assign this Agreement in whole or in part without obtaining the prior written approval of Motorola, except that Nanogen shall have the right to
assign this Agreement without the consent of Motorola to any Affiliate or to any purchaser of Nanogen's entire business or of substantially all of Nanogen's assets relating to the sale of Licensed
Products. Nanogen acknowledges that the licenses granted in this Agreement constitute "intellectual property" for purposes of Bankruptcy Code Section 365 and therefore may not be assumed or
assigned in any bankruptcy proceeding. 

***Confidential
Material Redacted and Filed with the Commission 

B–5

 
 
 

ARTICLE 8  PRODUCT LIABILITY    
  

    *** 

 
 

ARTICLE 9  ***    
  

    *** 

 
 

ARTICLE 10  NOTICES    
  

    All notice and payments required or permitted to be given hereunder shall be in writing and addressed to the respective Parties as follows: 

	If to Nanogen:	 	Nanogen, Inc.

10398 Pacific Center Court

San Diego, California 92121

Attention Chief Executive Officer

Facsimile:
	

With a copy to:	
 	

Nanogen, Inc.

10398 Pacific Center Court

San Diego, California 92121

Attention: General Counsel

Facsimile:
	

If to Motorola to:	
 	

Motorola, Inc.

4088 Commercial Avenue

Northbrook, IL 60062

Attention: Director of Contracts

Facsimile: (847) 714-7009
	

With a copy to:	
 	

Motorola, Inc.

1303 East Algonquin Road

Schaumburg, IL 60196

Attention: Director of Intellectual Property

Facsimile: (847) 576-3750

or
such other addresses as may be designated by the respective Parties in writing. A notice shall be deemed given the earlier of the date when actually received if sent by messenger or facsimile (with
notice of receipt in good order requested and received) or three (3) days after deposit in the United States registered or certified mail, postage prepaid, and properly addressed. 

 
 

ARTICLE 11  SECTION HEADINGS    
  

    Section headings are for convenience only and shall not be construed to limit or extend the meaning of any portion of this Agreement. 

***Confidential
Material Redacted and Filed with the Commission 

B–6

 
 
 

ARTICLE 12  DISPUTE RESOLUTION    
  

    If either Motorola or Nanogen believes that one of its patents is infringed by the other Party, then the Party asserting infringement will send a letter, by
overnight courier, with a claim chart to the other side. Within *** of receipt of that letter, the recipient will respond with a claim chart expressing views regarding non-infringement and
will identify any art that the recipient believes invalidates the asserted claims. Within *** of receipt of that response letter, the Parties agree to have a face-to-face
meeting with appropriate technical and legal personnel present to attempt to resolve the dispute. If unsuccessful, the Parties agree to have a meeting, within *** of the first meeting, with
appropriate senior business representatives to further attempt to seek a business resolution. If that further meeting does not resolve the dispute, the Parties agree to submit the dispute to
mediation, which shall be concluded within two weeks of such further meeting with senior business representatives. The Parties agree to use the mediation services of JAMS in the location selected by
the Party asserting the claim. The Parties further agree that JAMS may assign to the Parties' dispute any of its mediators who is available to conduct the mediation within two weeks after the meeting
with senior business representatives. The mediation shall be concluded in no more than three days. If the mediation is unsuccessful, the Party asserting the claim may thereafter file suit in the court
of its choice. For purposes of a suit filed by Motorola after the failure of the above attempts to reach a business resolution, Nanogen consents to the jurisdiction of the courts of the State of
Illinois and to jurisdiction and venue in the Northern District of Illinois; and for purposes of a suit filed by Nanogen after the failure of the above attempts to reach a business resolution,
Motorola consents to the jurisdiction of the courts of the California and to jurisdiction and venue in the Southern District of California. In any such suit, the accused infringer agrees not to assert
that the period of attempted resolution under this agreement (from the date of the initial dispatch of notice through the breakdown of the mediation process) will not be relied upon in any argument to
negate a finding of irreparable harm should the
patent owner move for preliminary relief, and that any applicable statute of limitations shall be tolled during such period of attempted resolution. 

 
 

ARTICLE 13  LAW GOVERNING AND CONSTRUCTIONS    
  

    13.1  Applicable Law  This Agreement shall be governed by and construed in accordance with the laws of
the state of Delaware as if it has been delivered in Delaware, and all acts performed or required to be performed hereunder have been performed entirely within such state, not including, however any
conflicts of law rule of Delaware which may direct or refer such determination to the laws of any other state of country. 

    13.2  Mutuality  This Agreement is the result of negotiation and compromise among the Parties and no
Party shall be prejudiced as having been the drafter of the Agreement. 

    13.3  Jurisdiction and Venue  Jurisdiction and venue with respect to actions for breach of this Agreement
shall be exclusive in the United States District Court for the Southern District of California. 

***Confidential
Material Redacted and Filed with the Commission 

B–7

 
 
 

ARTICLE 14  MISCELLANEOUS    
  

    14.1  Nothing in this Agreement shall be construed as conferring any right to use in advertising, publicity, or other promotional activities any
name, trade name, trademark, or other designation of any Party hereto without the express written approval of such other Party. 

    14.2  EXCEPT
AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, THE PARTIES, THEIR TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES AND SUBSIDIARIES MAKE NO REPRESENTATIONS
AND EXTEND NO WARRANTIES OF ANY KIND, EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, VALIDITY OF THE LICENSED PATENTS, CLAIMS, ISSUED OR PENDING, AND THE ABSENCE OF LATENT OR OTHER
DEFECTS, WHETHER OR NOT DISCOVERABLE. NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS A REPRESENTATION MADE OR WARRANTY GIVEN BY THE PARTIES THAT THE PRACTICE BY NANOGEN OF THE LICENSES GRANTED
HEREUNDER SHALL NOT INFRINGE THE PATENT RIGHTS OF ANY THIRD PARTY. EXCEPT AS EXPRESSLY STATED HEREIN, IN NO EVENT SHALL THE PARTIES, THEIR TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES OR SUBSIDIARIES BE
LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING ECONOMIC DAMAGE OR INJURY TO PROPERTY AND LOST PROFITS. 

    14.3  Confidentiality  Except to the extent expressly authorized by this Agreement or otherwise agreed in
writing by the Parties, the Parties agree that, for the term of this Agreement and for *** thereafter, the receiving Party (the "Receiving Party") shall keep confidential and shall not publish or
otherwise disclose and shall not use for any purpose other than as provided for in this Agreement any information furnished to it by the other Party (the "Disclosing Party") pursuant to this Agreement
(the "Confidential Information") unless the Receiving Party can demonstrate by written proof that such Confidential Information: 

    14.3.1  was
already known to the Receiving Party, other than under an obligation of confidentiality, at the time of disclosure by the Disclosing Party; 

    14.3.2  was
generally available to the public or otherwise part of the public domain at the time of its disclosure to the Receiving Party; 

    14.3.3  became
generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the Receiving
Party in breach of the Agreement; 

    14.3.4  was
disclosed to the Receiving Party, other than under an obligation of confidentiality to a Third Party not to disclose such information to others; or 

    14.3.5  was
independently discovered or developed by the Receiving Party without the use of Confidential Information belonging to the Disclosing Party. 

***Confidential
Material Redacted and Filed with the Commission 

B–8

 

    14.4  Authorized Disclosure of Confidential Information  Each Party may disclose Confidential Information
belonging to the other Party to the extent such disclosure is reasonably necessary in the following instances: 

    14.4.1  filing
or prosecuting patent applications under this Agreement; 

    14.4.2  regulatory
filings; 

    14.4.3  prosecuting
or defending litigation; 

    14.4.4  complying
with applicable governmental regulations; 

    14.4.5  conducting
preclinical or clinical trials of Licensed Products or a Licensed Process; 

    14.4.6  disclosure
to Affiliates, sublicensees, employees, consultants or agents who are bound by similar terms of confidentiality and non-use at least
equivalent in scope to those set forth in these Sections 14.3 and 14.4. 

Notwithstanding
the foregoing, in the event a Party is required to make a disclosure of the other Party's Confidential Information pursuant to these Sections 14.3 and 14.4, the disclosing Party will,
except where impracticable, give reasonable advance notice to the other Party of such disclosure and use best efforts to secure confidential treatment of such information. In any event, the Parties
agree to take all reasonable action to avoid disclosure of Confidential Information hereunder. 

    14.5  Publicity  The Parties may want to issue press releases announcing the execution of this Agreement
and may desire or be required to issue subsequent press releases relating to the Agreement or activities thereunder. The Parties shall consult with each other reasonably and in good faith and agree
with respect to the text and timing of such press releases prior to the issuance thereof, provided that a Party may not unreasonably withhold consent to or delay such releases. 

    14.6  No Effect on Protective Order  Nothing in this Agreement shall be deemed to diminish, impair or
otherwise affect the Parties' obligations under the Second Amended Stipulated Protective Order Regarding Contributor's Information, entered on or about July 9, 2001, in Case No. 00CV0872
IEG (AJB) (S.D. Cal.). 

    14.7  ***

    14.8  Force Majeure  No Party shall be held liable or responsible to any other Party nor be deemed to
have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any term of this Agreement (other than non-payment) when such failure or delay is caused by
or results from causes beyond the reasonable control of the affected Party, including, but not limited to, fire, floods, embargoes, war, acts of war (whether war be declared or not), insurrections,
riots, civil commotions, strikes, lockouts or other labor disturbances, acts of God or acts, omissions or delays in acting by any governmental authority or another Party. For the avoidance of doubt,
the Parties agree that notwithstanding the foregoing, the bankruptcy or insolvency of a Party shall not excuse that Party's full performance under this Agreement, and that the provisions of this
Section shall not be deemed to include bankruptcy or insolvency laws as a cause beyond the reasonable control of a Party. 

    14.9  In
the event that any provision of this Agreement is held invalid or unenforceable for any reason, such unenforecability shall not affect the enforceability of
the remaining provisions of this Agreement, and all provisions of this Agreement shall be construed so as to preserve the enforceability hereof. 

    14.10  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. 

***Confidential
Material Redacted and Filed with the Commission 

B–9

 
 
 

ARTICLE 15  ENTIRE AGREEMENT    
  

    15.1  This instrument and the Settlement Agreement entered into herewith contain the entire and only agreements between the Parties relative to
the subject matter hereof and supersede all previous negotiations, representations, undertakings and agreement both written and oral heretofore made
between the Parties as to the subject matter. Any representation, promise or condition in connection herewith not specifically incorporated herein shall not be binding upon either Party. 

    15.2  No
modification, renewal, extension, waiver, cancellation or termination of this Agreement or of any of the provisions herein contained shall be valid until and
unless made in writing and signed on behalf of the respective Parties by duly authorized officers thereof. 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK] 

B–10

 

    IN WITNESS WHEREOF, the Parties have respectively caused this Agreement to be executed on the dates hereinafter indicated. 

ACCEPTED
AND AGREED 

	MOTOROLA, INC.	 	 
	

By:	
 	

/S/ GEORGE TURNER
 George Turner

Vice President and Manager

Motorola Life Sciences	
 	

Dated: 7/20/01
	

MOTOROLA, INC.	
 	

 
	

By:	
 	

/S/ JON MEYER
 Jon Meyer, Esq.

Senior Vice President and Assistant General Counsel for Motorola Life Sciences	
 	

Dated: 7/20/01
	
Approved as to form:	
 	

 
	

By:	
 	

/S/ STASIA OGDEN
 Stasia Ogden, Esq.

Counsel for Motorola Life Sciences	
 	

 
	

NANOGEN, INC.	
 	

 
	

By:	
 	

/S/ V. RANDY WHITE
 Randy White

Chief Executive Officer

Nanogen, Inc.	
 	

Dated: 7/20/01
	
Approved as to form:	
 	

 
	

By:	
 	

/S/ DOUGLAS E. OLSON
 Douglas E. Olson, Esq.

Attorney for Nanogen, Inc	
 	

Dated: 7/20/01

B–11

 
 
 

EXHIBIT A TO LICENSE AGREEMENT    
  

Eggers
et al., Multi-site Detection Apparatus, U.S. Patent No. 5,532,128 (July 2. 1996). 

Eggers
et a1., Multi-site Molecule Detection Method, U.S. Patent No. 5,670,322 (issued Sept. 23, 1997). 

Eggers
et al., Multi-site Detection Apparatus, U.S. Patent No. 5,891,630 (issued Apr- 6.1999). Hollis et at.,  Methods and Apparatus for Molecule Detection,
EP 543,550 (published May 26, 1993). 

Hollis
et al., Optical and Electrical Methods and Apparatus for Molecule Detection, WO 93/22678 (published Nov. 11. 1993). 

Hollis
et al., Molecule Detecting Method and Apparatus Therefor, JP 5,322,817 (issued Dec. 7" 1993). 

Hollis
et a1., Optical and Electrical Methods and Apparatus for Molecule Detection, EP 638,173 (published Feb. 15, 1995). 

Hollis
et al., Optical and Electrical Methods and Apparatus for Molecule Detection, JP 7.508.831 (issued Sept. 28. 1995). 

Hollis
et al., Optical and Electrical Methods and Apparatus for Molecule Detection, U.S. Patent No. 5,653,939 (issued Aug. 5, 1997). 

Hollis
et al., Optical and Electrical Methods and Apparatus for Molecule Detection, U.S. Patent No. 5.846,708 (issued Dec. 8, 1998). 

Hollis
et al., Methods and Apparatus for Molecule Detection. DE 69,228,291 (issued Mar. 11, 1999). 

Eggers
et al., VerfahrenUnd VorrichtungZumNachweisVon Molekuelen, Austrian Patent 176324 (issued February 15, 1999). 

***.

***Confidential
information redacted and filed separately with the Commission. 

B–12

 
 
 

EXHIBIT B TO LICENSE AGREEMENT    
  

[Confidential Treatment Requested. Confidential Portions of this Agreement have been redacted and filed separately with the U.S. Securities and Exchange
Commission]  

MASSACHUSETTS INSTITUTE OF TECHNOLOGY

GENOMETRIX, INCORPORATED PATENT LICENSE AGREEMENT  

 (EXCLUSIVE)  

 *************************************************************************************  

***Entire Agreement Redacted and filed with the Commission 

B–13

QuickLinks

Exhibit 10.6

SETTLEMENT AGREEMENT

RECITALS

EXHIBIT A

EXHIBIT B

LICENSE AGREEMENT

RECITALS

ARTICLE 1 DEFINITIONS

ARTICLE 2 LICENSE GRANT

ARTICLE 3 PAYMENTS TO MOTOROLA

ARTICLE 4 ROYALTY REPORTS AND BOOKS

ARTICLE 5 REPRESENTATIONS AND WARRANTIES

ARTICLE 6 TERMINATION

ARTICLE 7 ASSIGNMENT

ARTICLE 8 PRODUCT LIABILITY

ARTICLE 9

ARTICLE 10 NOTICES

ARTICLE 11 SECTION HEADINGS

ARTICLE 12 DISPUTE RESOLUTION

ARTICLE 13 LAW GOVERNING AND CONSTRUCTIONS

ARTICLE 14 MISCELLANEOUS

ARTICLE 15 ENTIRE AGREEMENT

EXHIBIT A TO LICENSE AGREEMENT

EXHIBIT B TO LICENSE AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]