Document:

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                                                                   EXHIBIT 10.33
                              EMPLOYMENT AGREEMENT
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     THIS EMPLOYMENT AGREEMENT (the "Agreement") by and between INCYTE GENOMICS,
INC., a Delaware corporation (the "Company"), and Robert B. Stein (the
"Executive"), dated as of the 26th day of November, 2001.

     The Board of Directors of the Company (the "Board"), has determined that it
is in the best interests of the Company and its stockholders to assure that the
Company will have the continued dedication of the Executive, notwithstanding the
possibility, threat or occurrence of a Change in Control (as defined below) of
the Company. The Board believes it is imperative to diminish the inevitable
distraction of the Executive by virtue of the personal uncertainties and risks
created by a pending or threatened Change in Control and to encourage the
Executive's full attention and dedication to the Company currently and in the
event of any threatened or pending Change in Control, and to provide the
Executive with compensation and benefits arrangements upon a Change in Control
and an event of Change in Control Good Reason which ensure that the compensation
and benefits expectations of the Executive will be satisfied and which are
competitive with those of other comparable corporations. In addition, as an
inducement to the agreement by Executive to be employed by the Company prior to
a Change in Control on an "at will" basis, the Company desires to provide
Executive with certain benefits upon termination of Executive's employment under
certain circumstances as set forth herein.

     Therefore, in order to accomplish these objectives, the Board has caused
the Company to enter into this Agreement.

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     SECTION 1. DEFINITIONS

     (a)  "Annual Base Salary" shall mean the highest rate of annual base salary
paid or payable, including any base salary which has been earned but deferred,
to the Executive by the Company and its affiliated companies in respect of the
12-month period immediately preceding the month in which the Change in Control
or, in the case of termination other than on account of a Change in Control, the
Date of Termination occurs.

     (b)  "Business Unit" shall mean a Subsidiary or a business division of the
Company or Subsidiary in which the Executive is primarily employed.

     (c)  "Cause" shall mean:

             (i) The willful and continued failure of the Executive to perform
     substantially the Executive's duties with the Company or one of its
     affiliates (other than any such failure resulting from incapacity due to
     physical or mental illness or impairment), after a written demand for
     substantial performance is delivered to the Executive by the Board or the
     Chief Executive Officer of the Company which specifically identifies the
     manner in which the Board or Chief Executive Officer believes that the
     Executive has not substantially performed the Executive's duties; or

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          (ii) The willful engaging by the Executive in illegal conduct, gross
     misconduct or dishonesty which is materially and demonstrably injurious to
     the Company; or

          (iii) Unauthorized and prejudicial disclosure or misuse of the
     Company's secret, confidential or proprietary information, knowledge or
     data relating to the Company or its affiliates.

          Notwithstanding the foregoing, "Cause" shall not include any act, or
     failure to act, based upon authority given pursuant to a resolution duly
     adopted by the Board or upon the instructions of the Chief Executive
     Officer or based upon the advice of counsel for the Company. The cessation
     of employment of the Executive shall not be deemed to be for Cause unless
     and until there shall have been delivered to the Executive a copy of a
     resolution duly adopted by the affirmative vote of not less than
     three-quarters of the entire membership of the Board at a meeting of the
     Board called and held for such purpose (after reasonable notice is provided
     to the Executive and the Executive is given an opportunity, together with
     counsel, to be heard before the Board), finding that, in the good faith
     opinion of the Board, the Executive is guilty of the conduct described in
     subparagraph (i), (ii) or (iii) above, and specifying the particulars
     thereof in detail.

     (d)  "Change in Control" shall mean the occurrence of any of the following
events:

          (i) 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:

              (A) Had been directors of the Company 24 months prior to such
          change; or

              (B) 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;

          (ii) Any "person" (as such term is used in Sections 13(d) and 14(d) of
     the Exchange Act) by the acquisition or aggregation 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 by any person
     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;

          (iii) The stockholders of the Company approve a plan of complete
     liquidation or dissolution of the Company;

          (iv) There is consummated an agreement for the sale or disposition by
     the Company of all or substantially all of the Company's assets, other than
     a sale or

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     disposition by the Company to a Subsidiary or to an entity, the voting
     securities of which are owned by stockholders of the Company in
     substantially the same proportions as their ownership of the Company
     immediately prior to such sale; or

          (v) The sale, transfer or other disposition of a substantial portion
     of the stock or assets of the Company or a Business Unit or a similar
     transaction as the Board, in each case, in its sole discretion, may
     determine to be a Change in Control.

     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 or the
initial public offering of the stock of a Business Unit.

     (e)  "Change in Control Employment Period" shall mean the 24-month period
following the occurrence of a Change in Control.

     (f)  "Change in Control Good Reason" shall mean:

          (i) The assignment to Executive of any duties inconsistent with
     Executive's position (including status, offices, titles and reporting
     requirements), authority, duties or responsibilities as in effect
     immediately prior to a Change in Control or any other action by the Company
     that results in a diminishment in such position, authority, duties or
     responsibilities; or

          (ii) (A) Except as required by law, the failure by the Company to
     continue to provide to Executive benefits substantially equivalent or more
     beneficial (including in terms of the amount of benefits provided and the
     level of participation of Executive relative to other participants), in the
     aggregate, to those enjoyed by Executive under the Company's employee
     benefit plans (including, without limitation, any pension, deferred
     compensation, split-dollar life insurance, supplemental retirement,
     retirement or savings plan(s) or program(s)) and Welfare Benefits in which
     Executive was eligible to participate immediately prior to the Change in
     Control; or (B) the taking of any action by the Company that would,
     directly or indirectly, materially reduce or deprive Executive of any other
     benefit, perquisite or privilege enjoyed by Executive immediately prior to
     the Change in Control, other than an isolated, insubstantial and
     inadvertent failure not occurring in bad faith and that is remedied by the
     Company promptly after receipt of notice thereof given by the Executive; or

          (iii) The Company's requiring the Executive to be based at any office
     or location more than 35 miles from the office or location where the
     Executive is based immediately prior to the Change in Control; or

          (iv) Any reduction in the Executive's Base Salary or Target Bonus
     opportunity; or

          (v) A material breach by the Company of Sections 2 or 3 of the letter
     agreement between the Company and the Executive dated November 16, 2001
     (the "Offer Letter") or this Agreement.

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     (g)  "Disability" shall mean the absence of the Executive from the
Executive's duties with the Company on a full-time basis for 180 consecutive
business days as a result of incapacity due to mental or physical illness or
impairment which is determined to be total and permanent by a physician selected
by the Company or its insurers and acceptable to the Executive or the
Executive's legal representative.

     (h)  "Employment Agreements" shall mean this Agreement and all other
employment agreements with executive officers of the Company similar to this
Agreement that are in effect as of the first Change in Control to occur after
April 1, 2001.

     (i)  "Employment Period" means the period the Executive is employed by the
Company prior to the Change in Control Employment Period and the period the
Executive is employed by the Company after the end of a Change in Control
Employment Period.

     (j)  "Good Reason" shall mean:

          (i) The assignment to Executive of any duties substantially and
     materially inconsistent with Executive's position (including status,
     offices, titles and reporting requirements), authority, duties or
     responsibilities as in effect prior to the Date of Termination or any other
     action by the Company that results in a substantial and material
     diminishment in such position, authority, duties or responsibilities; or

          (ii) The Company's requiring the Executive to be based at any office
     or location other than the Company's East Coast or West Coast headquarters;
     the West Coast headquarters are currently located in Palo Alto, California;
     or

          (iii) Any reduction in the Executive's Base Salary, Target Bonus
     opportunity or Welfare Benefits, unless such reductions are made
     proportionally for all executives of the Company at the same time; or

          (iv) A material breach by the Company of this Agreement or of Sections
     2 or 3 of the Offer Letter; or

          (v) If Paul Friedman ceases to be the Chief Executive Officer of the
     Company more than 30 months after the Executive commences his employment
     with the Company and the Executive terminates his employment for any reason
     between the ninetieth (90th) and one hundred twentieth (120th) day
     following Paul Friedman's termination.

     (k)  "Limitation Amount" shall mean the sum of Payments that constitute
nondeductible "excess parachute payments" under section 280G of the Internal
Revenue Code of 1986, as amended (the "Code"), assuming such Payments constitute
the only payments made on account of a Change in Control, that result in a
deemed Federal income tax cost to the Company, calculated as set forth in the
succeeding sentences, of $15,000,000. The Limitation Amount is based on the
estimated Federal income tax cost to the Company resulting from the
nondeductibility of such excess parachute payments, which tax cost shall not
exceed $15,000,000. The initial Limitation Amount is $42,857,143.07, based on
the Federal corporate income tax rate of 35% for tax years ending in 2001. The
Limitation Amount shall be adjusted if, and when, the Federal corporate income
tax rate changes to such amount as shall equal the quotient obtained by dividing
$15,000,000 by such changed Federal corporate income tax rate;

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provided, however, that the Limitation Amount shall not be so adjusted after the
first Change in Control to occur after April 1, 2001. For purposes of computing
the Limitation Amount hereunder, the parachute payments attributable to the
vesting of 20% of the Units shall be excluded.

     (l)  "Payment" shall mean any payment or transfer by the Company under this
Agreement to or for the benefit of the Executive (including for this purpose
those made pursuant to Section 3(a)(iii)) or, as the case may be, any such
payment or transfer made to another executive officer of the Company pursuant to
another Employment Agreement. "Payment" shall not include any amount that would
be payable to the Executive or another executive officer of the Company that
would be payable in the event of a Change in Control regardless of the existence
of this Agreement or the relevant Employment Agreement, as the case may be. By
way of example, an amount in respect of an option that by its terms, and not
pursuant to the terms of this Agreement, accelerates upon a Change in Control
shall not be deemed to be a Payment.

     (m)  "Subsidiary" shall mean any other entity, whether incorporated or
unincorporated, in which the Company or any one or more of its Subsidiaries
directly owns or controls (i) 50% or more of the securities or other ownership
interests, including profits, equity or beneficial interests, or (ii) securities
or other interests having by their terms ordinary voting power to elect more
than 50% of the board of directors or others performing similar function with
respect to such other entity that is not a corporation.

     (n)  "Target Bonus" shall mean the Executive's target bonus under the
Company's annual bonus program, or any comparable bonus under any predecessor or
successor plan for the year prior to the year in which the Change in Control or,
in the case of a termination other than on account of a Change in Control, the
Date of Termination occurs.

     (o)  "Units" shall mean the restricted stock units which entitle Executive
to receive shares of common stock of the Company, as described in the Offer
Letter.

     (p)  "Welfare Benefits" shall mean welfare benefit plans, practices,
policies and programs provided by the Company and its affiliated companies
(including, without limitation, medical, prescription, dental, disability,
employee life, and group life plans and programs) (i) in effect for the
Executive at any time during the 120-day period immediately preceding (A) the
Change in Control or (B) the Date of Termination (as defined below) or (ii)
which are provided at any time after the Change in Control to peer executives of
the Company and its affiliated companies, whichever of (i)(A), (i)(B) or (ii)
provides the most favorable benefit to the Executive, as determined separately
for each such benefit.

     SECTION 2. TERMINATION OF EMPLOYMENT.

     (a)  Death or Disability. The Executive's employment shall terminate
          -------------------
automatically upon the Executive's death during the Employment Period or Change
in Control Employment Period. If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period or Change
in Control Employment Period, it may give to the Executive written notice in
accordance with Section 9(b) of this Agreement of its intention to terminate the
Executive's employment. In such event, the Executive's employment with the
Company shall terminate effective on the 30th day after receipt of such notice
by the Executive (the "Disability

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Effective Date"), provided that, within the 30 days after such receipt, the
Executive shall not have returned to full-time performance of the Executive's
duties.

     (b)  Cause. The Company may terminate the Executive's employment for Cause
          -----
during the Employment Period or Change in Control Employment Period.

     (c)  Good Reason. The Executive's employment may be terminated by the
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Executive for Good Reason during the Employment Period.

     (d)  Change in Control Good Reason. The Executive's employment may be
          -----------------------------
terminated by the Executive for Change in Control Good Reason during the Change
in Control Employment Period. For purposes of this Section 2(d), any good faith
determination of "Change in Control Good Reason" made by the Executive shall be
conclusive. The termination of the Executive's employment with the Company prior
to, but in anticipation of or in connection with, a Change in Control shall be
deemed to be a termination by the Executive for Change in Control Good Reason
during the Change in Control Employment Period if the Board so determines in its
good faith judgment.

     (e)  Notice of Termination. Any termination by the Company for Cause, or by
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the Executive for Good Reason during the Employment Period or for Change in
Control Good Reason during the Change in Control Employment Period, shall be
communicated by Notice of Termination to the other party hereto given in
accordance with Section 9(b) of this Agreement. For purposes of this Agreement,
a "Notice of Termination" means a written notice which (i) indicates the
specific termination provision in this Agreement relied upon, (ii) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive's employment under the
provision so indicated and (iii) if the Date of Termination (as defined below)
is other than the date of receipt of such notice, specifies the termination date
(which date shall be not more than 30 days after the giving of such notice). The
failure by the Executive or the Company to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Good
Reason, Change in Control Good Reason or Cause shall not waive any right of the
Executive or the Company, respectively, hereunder or preclude the Executive or
the Company, respectively, from asserting such fact or circumstance in enforcing
the Executive's or the Company's rights hereunder.

     (f)  Date of Termination. "Date of Termination" means (i) if the
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Executive's employment is terminated by the Company for Cause, by the Executive
for Good Reason during the Employment Period, or by the Executive for Change in
Control Good Reason during the Change in Control Employment Period, the date of
receipt of the Notice of Termination or any later date specified therein, as the
case may be, (ii) if the Executive's employment is terminated by the Company
other than for Cause or Disability or by the Executive other than for Good
Reason or Change in Control Good Reason, the Date of Termination shall be the
date on which the Company or the Executive, as the case may be, notifies the
other of such termination, and (iii) if the Executive's employment is terminated
by reason of death or Disability, the Date of Termination shall be the date of
death of the Executive or the Disability Effective Date, as the case may be.

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     SECTION 3. OBLIGATIONS OF THE COMPANY UPON TERMINATION

     (a)  Termination During the Change in Control Employment Period Other Than
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for Cause, Death or Disability or for Change in Control Good Reason. If, during
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the Change in Control Employment Period, the Company shall terminate the
Executive's employment other than for Cause or the Executive shall terminate
employment for Change in Control Good Reason (and the Executive's employment is
not terminated by reason of death or Disability):

          (i) The Company shall pay to the Executive the aggregate of the
     following amounts:

              (A) the sum of (1) the Executive's Annual Base Salary through the
          Date of Termination to the extent not theretofore paid, (2) the
          product of (x) the Target Bonus and (y) a fraction, the numerator of
          which is the number of days in the current fiscal year through the
          Date of Termination, and the denominator of which is 365 and (3) any
          compensation previously deferred by the Executive (together with any
          accrued interest or earnings thereon) and any accrued vacation pay, in
          each case to the extent not theretofore paid (the sum of the amounts
          described in clauses (1), (2), and (3) shall be hereinafter referred
          to as the "Accrued Obligations"); and

              (B) the amount equal to the product of (1) two and (2) the sum of
          (x) the Executive's Annual Base Salary and (y) the Target Bonus or, if
          greater, the bonus pursuant to the Company's management bonus plan in
          the most recently completed fiscal year.

          The payments described in this Section 3(a)(i) shall be paid to the
     Executive in a lump sum in cash within 30 days after the Date of
     Termination unless the Executive elected to receive such payments in equal
     installments in accordance with the Company's usual payroll practices over
     the 24-month period following the Date of Termination. Such election may be
     made at any time prior to the Change in Control and may be amended or
     revoked at the sole discretion of the Executive prior to the date of the
     Change in Control.

          (ii) For 24 months after the Executive's Date of Termination or such
     longer period as may be provided by the terms of the appropriate plan,
     program, practice or policy, the Company shall continue Welfare Benefits to
     the Executive and/or the Executive's family; provided, however, that if the
     Executive becomes reemployed with another employer and is eligible to
     receive medical or other welfare benefits under another employer provided
     plan, the medical and other welfare benefits described herein shall be
     secondary to those provided under such other plan during such applicable
     period of eligibility. For purposes of determining eligibility (but not the
     time of commencement of benefits) of the Executive for retiree benefits
     pursuant to such plans, practices, programs and policies, the Executive
     shall be considered to have remained employed until 24 months after the
     Executive's Date of Termination and to have retired on the last day of such
     period;

          (iii) All options acquired under the 1991 Stock Plan of Incyte
     Genomics, Inc. or any other stock-based incentive plan of the Company which
     have not vested in

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     accordance with the terms and conditions of the grant, award or purchase,
     shall become 100% vested and all options shall continue to be exercisable
     for 12 months following the Date of Termination and all Units shall become
     100% vested and the shares of common stock of the Company shall be
     delivered to the Executive within 30 days after the Date of Termination;

          (iv) The Company shall, at its sole expense as incurred, provide the
     Executive with outplacement services for a period of 12 months following
     the Date of Termination, the scope and provider of which shall be selected
     by the Executive in his sole discretion (the "Outplacement Benefits"); and

          (v) To the extent not theretofore paid or provided, the Company shall
     timely pay or provide to the Executive any other amounts or benefits
     required to be paid or provided or which the Executive is eligible to
     receive under any plan, program, policy or practice or contract or
     agreement of the Company and its affiliated companies (such other amounts
     and benefits shall be hereinafter referred to as the "Other Benefits").

     (b)  Termination During the Employment Period Other Than for Cause, Death
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or Disability or for Good Reason. If, during the Employment Period, the Company
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shall terminate the Executive's employment other than for Cause or the Executive
shall terminate employment for Good Reason or if, during the Change in Control
Employment Period, the Executive shall terminate employment for Good Reason
under subparagraph (v) thereof (and the Executive's employment is not terminated
by reason of death or Disability):

          (i) The Company shall pay to the Executive the aggregate of the
     following amounts:

              (A) The Accrued Obligations; and

              (B) the amount equal to the product of (1) one and (2) the sum of
          (x) the Executive's Annual Base Salary and (y) the Target Bonus or, if
          greater, the bonus pursuant to the Company's management bonus plan in
          the most recently completed fiscal year.

          The payments described in this Section 3(b)(i) shall be paid to the
     Executive in a lump sum in cash within 30 days after the Date of
     Termination unless the Executive elected to receive such payments in equal
     installments in accordance with the Company's usual payroll practices over
     the 12-month period following the Date of Termination. Such election may be
     made at any time prior to 180 days before the Date of Termination and may
     be amended or revoked at the sole discretion of the Executive prior to 180
     days before the Date of Termination.

          (ii) For 12 months after the Executive's Date of Termination, if the
     Executive properly elects to continue the Company's group health plan
     coverage as is the Executive's right under the Consolidated Omnibus Budget
     Reconciliation Act of 1985, as amended ("COBRA"), the Company shall pay the
     portion of the COBRA premiums for Executive and/or the Executive's family
     equal to the percentage share of medical premiums the Company paid for the
     Executive and/or the Executive's family prior to the Date of Termination;
     provided, however, that if the Executive becomes reemployed with

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     another employer and is eligible to receive medical or other welfare
     benefits under an other employer provided plan, the medical and other
     welfare benefits described herein shall be secondary to those provided
     under such other plan during such applicable period of eligibility. For
     purposes of determining eligibility (but not the time of commencement of
     benefits) of the Executive for retiree benefits pursuant to such plans,
     practices, programs and policies, the Executive shall be considered to have
     remained employed until 12 months after the Executive's Date of Termination
     and to have retired on the last day of such period;

          (iii) An additional portion of options acquired under the 1991 Stock
     Plan of Incyte Genomics, Inc. or any other stock-based incentive plan of
     the Company which have not vested in accordance with the terms and
     conditions of the grant, award or purchase, shall become vested equal to
     the amount of vesting that would have occurred if the Executive had
     continued working for the Company for an additional 12 months after the
     Date of Termination and all options shall continue to be exercisable for 90
     days following the Date of Termination and an additional portion of the
     Units which have not vested in accordance with the terms and conditions of
     such grant shall become vested equal to the amount of vesting that would
     have occurred if the Executive had continued working for the Company for an
     additional 12 months after the Date of Termination (provided that in no
     event will less than 20% of the Units vest) and the shares of common stock
     of the Company shall be delivered to the Executive within 30 days after the
     Date of Termination; and

          (iv) The Company shall provide to the Executive the Outplacement
     Benefits and the Other Benefits.

     (c)  Termination for Cause. If the Executive's employment shall be
          ---------------------
terminated for Cause during the Employment Period or the Change in Control
Employment Period, this Agreement shall terminate without further obligations to
the Executive other than the obligation to pay to the Executive (x) the
Executive's Annual Base Salary through the Date of Termination, (y) the amount
of any compensation previously deferred by the Executive, including vested
Units, and (z) Other Benefits, in each case to the extent theretofore unpaid. In
such case, all amounts due and owing to the Executive pursuant to this Section
3(c) shall be paid to the Executive in a lump sum in cash or, in the case of
Units, in shares of common stock of the Company, within 30 days of the Date of
Termination.

     (d)  Voluntary Termination. If the Executive voluntarily terminates
          ---------------------
employment during the Employment Period, other than for Good Reason, or during
the Change in Control Employment Period, other than for Change in Control Good
Reason, this Agreement shall terminate without further obligations to the
Executive other than for Accrued Obligations and the timely payment or provision
of Other Benefits; provided that if such termination occurs during the
Employment Period, the Executive shall not receive a prorated Target Bonus. In
such case, all amounts due and owing to the Executive pursuant to this Section
3(d) shall be paid to the Executive in a lump sum in cash or, in the case of
Units, in shares of common stock of the Company, within 30 days of the Date of
Termination.

     (e)  Death or Disability. If the Executive's employment is terminated
          -------------------
during the Employment Period or the Change in Control Employment Period due to
the death or Disability

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of the Executive, this Agreement shall terminate without further obligations to
the Executive other than for (i) Accrued Obligations and the timely payment or
provision of Other Benefits and (ii) the Units shall become 100% vested and an
additional portion of options acquired under the 1991 Stock Plan of Incyte
Genomics, Inc. or any other stock-based incentive plan of the Company which have
not vested in accordance with the terms and conditions of the grant, award or
purchase, shall become vested equal to the amount of vesting that would have
occurred if the Executive had continued working for the Company for an
additional 12 months after the Date of Termination and all options shall
continue to be exercisable for 12 months following the Date of Termination. In
such case, all amounts due and owing to the Executive or the Executive's estate,
as the case may be, pursuant to this Section 3(e) shall be paid to the Executive
or the Executive's estate in a lump sum in cash or, in the case of Units, in
shares of common stock of the Company, within 30 days of the receipt by the
Company of written notice of the Executive's death from the executor of the
Executive's estate or the Disability Effective Date.

     SECTION 4. SECTION 280G

     (a)  Basic Rule. Notwithstanding anything in this Agreement to the
          ----------
contrary, in the event that the independent auditors most recently selected by
the Board (the "Auditors") determine that any Payments would constitute "excess
parachute payments" within the meaning of section 280G of the Code that in the
aggregate exceed the Limitation Amount, then the Payments made pursuant to this
Agreement shall be reduced (but not below zero) to the Reduced Amount. For
purposes of this Section 4, the "Reduced Amount" shall be the amount, expressed
as a present value, that maximizes the aggregate present value of the Payments
to the Executive without causing the sum of the Payments made hereunder and
under all Employment Agreements to exceed the Limitation Amount. The Payments
for the Executive under this Agreement and for each executive officer under the
other Employment Agreements, as so reduced, shall be determined on a pro rata
basis based on the total Payments payable pursuant to the Employment Agreements,
calculated as of the date of the first Change in Control to occur after April 1,
2001. Notwithstanding anything contained in this Agreement to the contrary, to
the extent that any payment or distribution of any type to or for the benefit of
the Executive by the Company (the "Total Payment") is or will be subject to the
excise tax imposed under Section 4999 of the Code (the "Excise Tax"), then the
Total Payments shall be reduced (but not below zero) if and to the extent that a
reduction in the Total Payments would result in the Executive retaining a larger
amount, on an after-tax basis (taking into account federal, state and local
income taxes and the Excise Tax) than if the Executive received the entire
amount of such Total Payments. The determination of which Payments are to be
reduced shall be made in a manner consistent with the provisions of Section
4(b).

     (b) Reduction of Payments. If the Auditors determine that any Payments made
         ---------------------
pursuant to this Agreement would exceed the Limitation Amount because of section
280G of the Code, which calculation shall occur at the time of the Change in
Control, then the Company shall promptly give the Executive notice to that
effect and a copy of the detailed calculation thereof and of the Reduced Amount,
and the Executive may then elect, in the Executive's sole discretion, which and
how much of such Payments shall be eliminated or reduced (as long as after such
election the aggregate present value of such Payments, as so eliminated or
reduced, equals the Reduced Amount) and shall advise the Company in writing of
the Executive's election within 10 days of receipt of notice. If no such
election is made by the Executive within such 10-day period, then the Company
may decide which and how much of such Payments shall be

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eliminated or reduced (as long as after such decision the aggregate present
value of such Payments, as so eliminated or reduced, equals the Reduced Amount)
and shall notify the Executive promptly of such decision. For purposes of this
Section 4, present value shall be determined in accordance with section
280G(d)(4) of the Code. All determinations made by the Auditors under this
Section 4 shall be binding upon the Company and the Executive and shall be made
within 60 days of the date when a Payment becomes payable or transferable. As
promptly as practicable following such determination and the elections
hereunder, the Company shall pay or transfer to or for the benefit of the
Executive such amounts as are then due to the Executive under this Agreement and
shall promptly pay or transfer to or for the benefit of the Executive in the
future such amounts as become due to the Executive under this Agreement.

     (c)  Overpayments and Underpayments. As a result of uncertainty in the
          ------------------------------
application of section 280G of the Code at the time of an initial determination
by the Auditors hereunder, it is possible that Payments will have been made by
the Company pursuant to this Agreement that should not have been made (an
"Overpayment") or that additional Payments that will not have been made by the
Company pursuant to this Agreement could have been made (an "Underpayment"),
consistent in each case with the calculation of the Reduced Amount hereunder. In
the event that the Auditors, based upon the assertion of a deficiency by the
Internal Revenue Service against the Company or the Executive that the Auditors
believe has a high probability of success, determine that an Overpayment has
been made, such Overpayment shall be treated for all purposes as a loan to the
Executive which he or she shall repay to the Company, together with interest at
the applicable federal rate provided in section 7872(f)(2) of the Code;
provided, however, that no amount shall be payable by the Executive to the
Company if and to the extent that such payment would not reduce the Company's
Federal income tax liability under section 280G of the Code. In the event that
the Auditors determine that an Underpayment has occurred, such Underpayment
shall promptly be paid or transferred by the Company to or for the benefit of
the Executive, together with interest at the applicable federal rate provided in
section 7872(f)(2) of the Code.

     (d)  Waiver of Limitation. At any time, and in its sole discretion, the
          --------------------
Company's Compensation Committee of the Board may elect to waive, in whole or in
part, the reduction of a Payment to be made pursuant to this Agreement,
notwithstanding the determination that such Payment will be nondeductible by the
Company for federal income tax purposes because of section 280G of the Code, or
that it exceeds the Limitation Amount.

     (e) Related Corporations. For purposes of this Section 4, the term
         --------------------
"Company" shall include affiliated corporations to the extent determined by the
Auditors in accordance with section 280G(d)(5) of the Code.

     SECTION 5. NON-EXCLUSIVITY OF RIGHTS.

     Nothing in this Agreement shall prevent or limit the Executive's continuing
or future participation in any plan, program, policy or practice provided by the
Company or any of its affiliated companies and for which the Executive may
qualify, nor, subject to Section 9(f), shall anything herein limit or otherwise
affect such rights as the Executive may have under any contract or agreement
with the Company or any of its affiliated companies. Amounts which are vested
benefits or which the Executive is otherwise entitled to receive under any plan,
policy, practice or program of or any contract or agreement with the Company or
any of its affiliated

                                     - 11 -

<PAGE>

companies at or subsequent to the Date of Termination shall be payable in
accordance with such plan, policy, practice or program or contract or agreement
except as explicitly modified by this Agreement.

     SECTION 6. FULL SETTLEMENT.

     The Company's obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other claim, right
or action which the Company may have against the Executive or others (other than
pursuant to Section 7(d) of this Agreement). In no event shall the Executive be
obligated to seek other employment or take any other action by way of mitigation
of the amounts payable to the Executive under any of the provisions of this
Agreement and such amounts shall not be reduced whether or not the Executive
obtains other employment. The Company agrees to pay as incurred, to the full
extent permitted by law, all legal fees and expenses which the Executive may
reasonably incur as a result of any contest (regardless of the outcome thereof)
by the Company, the Executive or others of the validity or enforceability of, or
liability under, any provision of this Agreement or any guarantee of performance
thereof (including as a result of any contest by the Executive about the amount
of any payment pursuant to this Agreement), plus in each case interest on any
delayed payment at the applicable Federal rate provided for in section
7872(f)(2)(A) of the Code. Notwithstanding the foregoing, the Company will not
pay any legal fees or expenses which the Executive may incur as a direct result
of any contest or dispute regarding Sections 7(a), 7(b) or 7(d) of this
Agreement; provided, however, that (i) this sentence shall not apply if (A)
after a Change in Control the Executive's employment with the Company is
terminated by the Company without Cause, by the Executive for Change in Control
Good Reason or by the Executive for Good Reason under subparagraph (v) thereof
and (B) the Executive has not, in the good faith determination of the Board,
blatantly and willfully breached Sections 7(a), 7(b) or 7(c) of this Agreement
and (ii) if this sentence applies and there is a contest or dispute regarding
Sections 7(a), 7(b) or 7(d) of this Agreement and the Executive is found to have
not violated Section 7 of this Agreement, then the Company will reimburse all
such legal fees and expenses reasonably incurred as a result of such contest or
dispute.

     SECTION 7. COVENANTS.

     (a)  The Executive represents and warrants to the Company that the
performance of the Executive's duties will not violate any agreements with or
trade secrets of any other person or entity or previous employers, including
without limitation agreements containing provisions against solicitation or
competition. The Executive has provided the Company with copies of the Employee
Agreement, dated June 4, 1996, between The DuPont Pharmaceutical Company and
the Executive and any other agreements (specifically including any agreements
with The DuPont Pharmaceutical Company or Bristol-Myers Squibb Company) that
could restrict the Executive's activities in the course of the Executive's
employment with the Company. The Executive represents and warrants to the
Company that the Executive has not and will not sign the Bristol-Myers Squibb
Company General Release and Non-Solicitation Agreement or any other agreement
that could restrict his activities in the course of his employment with the
Company. The Company's offer of employment is based on the accuracy of the
Executive's representation and warranty and a violation of this Section 7(a)
shall be grounds for termination with Cause.

                                     - 12 -

<PAGE>

     (b)  During the Executive's employment with the Company and for two (2)
years after the termination of the Executive's employment for any reason, the
Executive agrees that, without the prior express written consent of the Company,
the Executive shall not, anywhere in the world, for his own benefit or for, with
or through any other person, firm, partnership, corporation or other entity or
individual (other than the Company or its affiliates) as or in the capacity of
an owner, shareholder, employee, consultant, director, officer, trustee,
partner, agent, independent contractor and/or in any other representative
capacity or otherwise:

          (i) personally (or personally direct another to) solicit or hire (A)
     any employee of the Company or its affiliates at the time of such
     solicitation or hiring or (B) any former employee of the Company or its
     affiliates who had such relationship within six (6) months prior to the
     date of such solicitation or hiring, including but not limited to
     attempting to induce any such employee of the Company or its affiliates to
     leave the employ of the Company;

          (ii) personally (or personally direct another to) make or publish any
     statement (orally or in writing) to a current or prospective client of the
     Company or its affiliates or any other entity with whom the Company has a
     collaboration, strategic partnership, joint venture or other similar
     relationship (collectively, a "Customer Entity") that would libel, slander,
     disparage, denigrate, ridicule or criticize the Company or any of its
     affiliates; and

          (iii) personally (or personally direct another to) solicit any
     Customer Entity to purchase a gene sequence or genomic database product.

     For purposes of this Section 7(b), the term "solicit" means any
communication of any kind whatsoever, regardless of by whom initiated, inviting,
encouraging or requesting any person or entity to take or refrain from taking
any action.

     (c)  The Executive shall hold in a fiduciary capacity for the benefit of
the Company all secret or confidential information, knowledge or data relating
to the Company or any of its affiliated companies, and their respective
businesses, which shall have been obtained by the Executive during the
Executive's employment by the Company or any of its affiliated companies and
which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in violation of this Agreement).
After termination of the Executive's employment with the Company, the Executive
shall not, without the prior written consent of the Company or as may otherwise
be required by law or legal process, communicate or divulge any such
information, knowledge or data to anyone other than the Company and those
designated by it. In no event shall an asserted violation of the provisions of
this Section 7 constitute a basis for deferring or withholding any amounts
otherwise payable to the Executive under this Agreement. The Executive also
agrees to comply with the terms set forth in the Confidential Information and
Invention Assignment Agreement.

     (d)  If at any time prior to the date that is 365 days after the
Executive's Date of Termination, the Executive breaches any provision of
Sections 7(a), 7(b) or 7(c) of this Agreement in more than a minor, deminimus or
trivial manner, then (i) the Executive shall forfeit all of his unexercised
Company stock options or stock appreciation rights, unvested Company restricted
stock and unvested Company restricted stock units and (ii) the gain or income
realized within the twenty-four (24) months prior to such breach from (A) the
exercise of

                                     - 13 -

<PAGE>

any Company stock options or stock appreciation rights, (B) the vesting of any
Company restricted stock or other Company equity based awards, (C) the vesting
of Company restricted stock units (excluding the vesting of 20% of the Units),
or (D) the forgiveness of any loan to the Executive from the Company, by the
Executive from such event shall be paid by the Executive to the Company upon
notice from the Company (for purposes of this Section 7(d), the exercise of
incentive stock options and the vesting of restricted stock units shall be
treated as a realization event). Such gain shall be determined on a gross basis,
without reduction for any taxes incurred, as of the date of such event, and
without regard to any subsequent change in the Fair Market Value (as defined
below) of a share of Company common stock. The Company shall have the right to
offset such gain against any amounts otherwise owed to the Executive by the
Company (whether as wages, vacation pay, or pursuant to any benefit plan or
other compensatory arrangement). For purposes of this Section 7(d), the "Fair
Market Value" of a share of Company common stock on any date shall be (i) the
closing sale price per share of Company common stock during normal trading hours
on the national securities exchange on which the Company common stock is
principally traded for such date or the last preceding date on which there was a
sale of such Company common stock on such exchange or (ii) if the shares of
Company common stock are then traded on the NASDAQ Stock Market or any other
over-the-counter market, the average of the closing bid and asked prices for the
shares of Company common stock during normal trading hours in such
over-the-counter market for such date or the last preceding date on which there
was a sale of such Company common stock in such market, or (iii) if the shares
of Company common stock are not then listed on a national securities exchange or
traded in an over-the-counter market, such value as the Compensation Committee
shall determine in good faith. Notwithstanding the foregoing, this Section 7(d)
shall not apply in the event that after a Change in Control the Executive's
employment with the Company is terminated either (i) by the Company without
Cause, (ii) by the Executive for Change in Control Good Reason or (iii) by the
Executive for Good Reason under subparagraph (v) thereof.

     (e)  Any termination of the Executive's employment or of this Agreement
shall have no effect on the continuing operation of this Section 7.

     (f)  The Executive acknowledges and agrees that the Company will have no
adequate remedy at law, and could be irreparably harmed, if the Executive
breaches or threaten to breach any of the provisions of this Section 7. The
Executive agrees that the Company shall be entitled to equitable and/or
injunctive relief to prevent any breach or threatened breach of this Section 7,
and to specific performance of each of the terms hereof in addition to any other
legal or equitable remedies that the Company may have. The Executive further
agrees that he shall not, in any equity proceeding relating to the enforcement
of the terms of this Section 7, raise the defense that the Company has an
adequate remedy at law.

     (g)  The terms and provisions of this Section 7 are intended to be separate
and divisible provisions and if, for any reason, any one or more of them is held
to be invalid or unenforceable, neither the validity nor the enforceability of
any other provision of this Agreement shall thereby be affected. The parties
hereto acknowledge that the potential restrictions on the Executive's future
employment imposed by this Section 7 are reasonable in both duration and
geographic scope and in all other respects. If for any reason any court of
competent jurisdiction shall find any provisions of this Section 7 unreasonable
in duration or geographic scope or otherwise, the Executive and the Company
agree that the restrictions and prohibitions contained herein shall be effective
to the fullest extent allowed under applicable law in such jurisdiction.

                                     - 14 -

<PAGE>

     (h)  The parties acknowledge that the Offer Letter and this Agreement would
not have been entered into and the benefits described herein and therein would
not have been promised in the absence of the Executive's promises under this
Section 7.

     SECTION 8. SUCCESSORS.

     (a)  This Agreement is personal to the Executive and without the prior
written consent of the Company shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and be enforceable by the Executive's legal
representatives.

     (b)  This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns.

     (c)  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 or the relevant Business Unit to assume
expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company or such Business Unit would be required to perform it if
no such succession had taken place. As used in this Agreement, "Company" shall
mean the Company as hereinbefore defined and any successor to its business
and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

     SECTION 9. MISCELLANEOUS.

     (a)  This Agreement shall be governed by and construed in accordance with
the laws of the State of Delaware without reference to principles of conflict of
laws. The captions of this Agreement are not part of the provisions hereof and
shall have no force or effect. This Agreement may not be amended or modified
otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

     (b)  All notices and other communications hereunder shall be in writing and
shall be given by hand delivery to the other party or by registered or certified
mail, return receipt requested, postage prepaid, addressed as follows:

          If to the Executive:
          at the Executive's current address as shown on the records of the
          Company.

          If to the Company:
          Incyte Genomics, Inc.
          3160 Porter Drive
          Palo Alto, CA 94304
          Attention: General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

                                     - 15 -

<PAGE>

     (c)  The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement.

     (d)  The Company may withhold from any amounts payable under this Agreement
such Federal, state, local or foreign taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

     (e)  The Executive's or the Company's failure to insist upon strict
compliance with any provision of this Agreement or the failure to assert any
right the Executive or the Company may have hereunder, including, without
limitation, the right of the Executive to terminate employment for Good Reason
pursuant to Section 2(c) or Change in Control Good Reason pursuant to Section
2(d) of this Agreement, shall not be deemed to be a waiver of such provision or
right or any other provision or right of this Agreement.

     (f)  The Executive and the Company acknowledge that, except as may
otherwise be provided under any other written agreement between the Executive
and the Company, the employment of the Executive by the Company is "at will"
and, prior to the Change in Control, the Executive's employment and/or this
Agreement may be terminated by either the Executive or the Company at any time,
in which case the Executive shall have no further rights under this Agreement
except as expressly set forth in Section 3 hereof. From and after the closing of
a Change in Control transaction, this Agreement shall supersede any other
agreement between the parties with respect to the subject matter hereof
(provided that it shall not supersede the Company's obligations in the Offer
Letter or the Executive's obligations under the Confidential Information and
Invention Assignment Agreement).

                                     - 16 -

<PAGE>

     IN WITNESS WHEREOF, the Executive and the Company, through its duly
authorized Officer, have executed this Agreement as of the day and year first
above written.

                                    EXECUTIVE

                                       /s/ Robert B. Stein
                                    -------------------------------------------

                                    COMPANY

                                    By /s/ Roy A. Whitfield
                                    -------------------------------------------

                                    Its Chief Executive Officer

                                     - 17 -<PAGE>

CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE
BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

                                                                   Exhibit 10.34

                              SETTLEMENT AGREEMENT

                                     between

                              INCYTE GENOMICS INC.

                                       and

                                AFFYMETRIX, INC.

<PAGE>

                              SETTLEMENT AGREEMENT

         This Settlement Agreement (this "Agreement") is effective this 21st day
of December, 2001 (the "Effective Date"), between Incyte Genomics, Inc., a
Delaware corporation ("Incyte") and Affymetrix, Inc., a Delaware corporation
("Affymetrix") (collectively, the "Parties").

                              W I T N E S S E T H:

         WHEREAS, the Parties have been involved in various disputes, which have
led to the commencement of certain actions and proceedings, including, but not
limited to, Affymetrix, Inc. v. Synteni, Inc. and lncyte Pharmaceuticals, Inc.,
Case Nos. C 99-21164 JF and C 99-21165 JF (N.D. Cal.); Incyte Genomics, Inc. v.
Affymetrix, Inc., Case No. C 01- 20065 JF (N.D. Cal.); and the Incyte Opposition
to European Patent No. EP 0619321 (collectively, the "Matters");

         WHEREAS, in the Matters, Affymetrix alleges that Incyte infringes
several of its patents, and Incyte denies such infringement, and Incyte alleges
that Affymetrix infringes several of its patents, and Affymetrix denies such
infringement;

         WHEREAS, the Matters involve claims that numerous complex products and
processes infringe numerous sophisticated patents;

         WHEREAS, the Parties acknowledge that the litigation of the Matters
involves substantial uncertainties;

         WHEREAS, while the Parties disagree whether infringement exists in the
Matters, each of the Parties acknowledges that there is substantial risk that it
will be found to infringe the other's valid patents;

         WHEREAS, the Parties have been involved in various other disputes
involving Stanford University, which have led to the commencement of certain
actions and proceedings, including, but not limited to, Incyte Pharmaceuticals,
Inc., et al. v. Affymetrix, Inc., Case No. C 99-21111 JF (N.D. Cal.); Patrick 0.
Brown, et al. v. Stephen P.A. Fodor, et al., Patent Interference No. 104,358
(Bd. of Patent App. and Inter.); Patrick 0. Brown, et al. v. Stephen P.A. Fodor,
et al., Patent Interference No. 104,359 (Bd. of Patent App. and Inter.), the
Affymetrix Opposition to European Patent No. EP B10804 731, and the Affymetrix
opposition to Australian Patent No. AU709276 (2962/95) (collectively, the
"Stanford Matters");

         WHEREAS, the Parties desire to reach an amicable resolution of the
Matters in a voluntary, convenient, efficient and expeditious manner; and

         WHEREAS, contemporaneously with the execution of this Agreement, Incyte
and Affymetrix have entered into the following agreements, all of even date
herewith: an *** from *** to *** (the "***"), a *** Agreement under which ***
with respect to certain of *** intellectual property (the "*** Agreement"), a
*** Agreement from *** to *** (the "*** Agreement"), and an *** Agreement under
which *** grants to *** licenses

                                       1

***CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE
BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

<PAGE>

with respect to certain of *** intellectual property (the "***"). The ***, the
*** Agreement, the *** Agreement, and the *** are collectively referred to
herein as the "Related Agreements".

         NOW THEREFORE, for and in consideration of the complexity of the issues
to be litigated and the substantial risks and uncertainties enumerated above,
the Related Agreements, the promises contained herein, and for other good and
valuable consideration, the sufficiency of which is hereby acknowledged, the
Parties agree as follows:

1.       Definitions.
         -------------

         1.1  General Terms. For purposes of this Agreement, the following terms
              ---------------
have the meanings hereinafter indicated:

         "Affymax" means Affymax, Inc., Affymax Research Institute, and/or any
predecessor in interest or successor in interest to either of them.

         "Affymetrix Patents" means (a) the Affymetrix Patents-In-Suit, (b) all
patents and/or patent applications claiming priority to or common priority with
the Affymetrix Patents-In-Suit, together with all continuations,
continuations-in-part and divisionals of such patents and patent applications,
and (c) all patents issuing from any patent application described in clause (b),
and (d) all reissues, re-examinations, extensions and foreign counterparts of
any of the foregoing patents and patent applications.

         "Affymetrix Patents-In-Suit" means U.S. Patent Nos. 5,445,934,
5744,305, 5,800,992, 5,871,928 and 6,040,193.

         "Affiliates" means any company, partnership, corporation or like
entity, in any country, which, directly or indirectly (i) wholly or
substantially owns or controls an entity, directly or indirectly, or (ii) is
wholly or substantially owned or controlled by that entity, directly or
indirectly, but for so long as such entity remains an Affiliate of a Party, and
only if such Affiliate is bound by the terms of this Agreement. As used herein,
substantial ownership or control means ownership or control of one hundred
percent (100%) of the voting stock or equity of an entity and effective
management control by contract or otherwise.

         "Claims" means any and all claims, counterclaims, causes of action,
demands, agreements, contracts, covenants, representations, warranties,
promises, undertakings, actions, obligations, controversies, debts, costs,
expenses, attorneys' fees, expert witness fees, court costs, accounts, damages,
losses, injuries and liabilities, of whatever kind or nature, in law, equity, or
otherwise, whether known or unknown, suspected or unsuspected, for or by reason
of any matter, cause or thing whatsoever, whether sounding in contract, tort or
otherwise.

         "lncyte Patents" means (a) the Incyte Patents-In-Suit, (b) all patents
and/or patent applications claiming priority to or common priority with the
Incyte Patents-In-Suit, together with all continuations, continuations-in-part
and divisionals of such patents, and/or patent applications; (c) all patents
issuing from any patent application described in clause

                                       2

***CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE
BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

<PAGE>

(b), and (d) all reissues, re-examinations, extensions and foreign counterparts
of any of the foregoing patents and patent applications.

         "Incyte Patents-In-Suit" means U.S. Patent Nos. 5,716,785, 5,891,636,
and 6,291,170.

         "Matters" has the meaning specified in the Recitals, above.

         "Stanford Matters" has the meaning specified in the Recitals.

2.       Release by Incyte.
         -------------------

         2.1  Except to the extent provided in Sections 8.7 and 9, and except as
provided in Section 11, Incyte, for itself and its present and former officers,
directors, employees, agents, assigns, predecessors, representatives,
subsidiaries, affiliates, and divisions, (collectively, the "Incyte Releasing
Parties"), does hereby forever and irrevocably release, acquit, discharge, and
covenant not to sue or bring or maintain against Affymetrix, its present and
former officers, directors, employees, predecessors, representatives,
subsidiaries, affiliates and divisions (the "Affymetrix Released Parties") any
Claims based upon events occurring up to and including the Effective Date that
were or could have been asserted in the Matters or that relate to the patents
that are licensed in the Related Agreements. This release specifically covers
any claim voluntarily dismissed in the Matters, but excludes any claims or
contentions relating to the Stanford Matters.

         2.2  Except to the extent described in Section 2.5, Incyte, for itself
and the other Incyte Releasing Parties, also hereby forever and irrevocably
releases, acquits, and discharges, and covenants not to sue or bring or maintain
any Claim against, any customers, collaborators, agents and users of any of the
Affymetrix Released Parties that the Incyte Releasing Parties have, had, or may
have against any of them exclusively arising out of the making, using,
importing, selling, or offering to sell any Affymetrix microarray-related
product manufactured by Affymetrix or the purchase of Affymetrix
microarray-related services prior to and including the Effective Date. For the
sake of clarity, "making, using, importing, selling, or offering to sell any
Affymetrix microarray-related product manufactured by Affymetrix" shall include
any activities performed in conjunction with using an Affymetrix
microarray-related product manufactured by Affymetrix, but such release shall
not extend to any such person's making, using, importing, selling or offering to
sell any microarray-related products other than microarray-related products
manufactured, or sold by Affymetrix.

         2.3  Except to the extent described in Section 2.5, Incyte, for itself
and the other Incyte Releasing Parties, also hereby forever and irrevocably
releases, acquits and discharges, and covenants not to sue or bring or maintain
any Claim against any customers, collaborators, agents or users of any of the
Affymetrix Released Parties based upon the use of microarray-related products
that were sold by Affymetrix on or before the Effective Date and used by such
customer, collaborator, agent or user after the Effective Date. This release
also specifically covers the use of data generated by the use of
microarray-related products that were sold by Affymetrix on or before the
Effective Date and used by such customer, collaborator, agent or user after the
Effective Date.

                                       3

<PAGE>

         2.4  The release by Incyte set forth in Sections 2.1, 2.2, and 2.3
shall be binding on any successors in interest to Incyte only with respect to
Claims that were or could have been asserted by Incyte (expressly excluding
claims that could only have been asserted by such successor in interest).

         2.5  The release by Incyte set forth in Sections 2.2 and 2.3 does not
include any release by Incyte of any Claim that it may have against Invitrogen
Corporation.

3.       Release by Affymetrix.
         -----------------------

         3.1  Except as provided in Section 11, Affymetrix, for itself and its
present and former officers, directors, employees, agents, assigns,
predecessors, representatives, subsidiaries, affiliates, and divisions,
(collectively, the "Affymetrix Releasing Parties"), does hereby forever and
irrevocably release, acquit, discharge, and covenant not to sue or bring or
maintain against Incyte, its present and former officers, directors, employees,
predecessors, representatives, subsidiaries, affiliates and divisions (the
"Incyte Released Parties") any Claims based upon events occurring up to and
including the Effective Date that were or could have been asserted in the
Matters or that relate to the patents that are licensed in the Related
Agreements. Notwithstanding the foregoing, it is expressly agreed and understood
by the Parties that Incyte Released Parties does not include Patrick Brown or
Stanford University, and also does not include *** except the release
specifically covers any acts and/or omissions that *** performed within the
course and scope of his employment with Incyte or Synteni. This release
specifically covers any claim or matter dismissed in the Matters, but excludes
any claims or contentions relating to the Stanford Matters. Affymetrix agrees
not to bring any claim against *** for theft of trade secrets,
misappropriation, fraud or any similar causes of action for a period of one (1)
year after the Effective Date unless *** first initiates an action against
Affymetrix. The Parties agree that if Affymetrix asserts such claims, Incyte
will not assert any defenses such as laches, waiver, estoppel or any applicable
statute of limitations based on Affymetrix's delay in filing such claims from
the Effective Date of this Agreement and for the one (1) year period thereafter.
Incyte expressly reserves all other defenses based on Affymetrix' s delay in
filing such claims prior to the Effective Date.

         3.2  Except to the extent described in Section 3.5, Affymetrix, for
itself and the other Affymetrix Releasing Parties, also hereby forever and
irrevocably releases, acquits, and discharges, and covenants not to sue or bring
or maintain any Claim against, any customers, collaborators, agents and users of
any of the Incyte Released Parties that the Affymetrix Releasing Parties have,
had, or may have against any of them exclusively arising out of the making,
using, importing, selling, or offering to sell any Incyte microarray-related
product manufactured by Incyte or the purchase of Incyte microarray-related
services prior to and including the Effective Date. For the sake of clarity,
"making, using, importing, selling, or offering to sell any Incyte
microarray-related product manufactured by Incyte" shall include any activities
performed in conjunction with using an Incyte microarray-related product
manufactured by Incyte, but such release shall not extend to any such person's
making, using, importing, selling or offering to sell any microarray-related
products other than microarray-related products manufactured or sold by Incyte.

                                       4

***CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE
BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

<PAGE>

         3.3  Except to the extent described in Section 3.5, Affymetrix, for
itself and the other Affymetrix Releasing Parties, also hereby forever and
irrevocably releases, acquits, and discharges, and covenants not to sue or bring
or maintain any Claim against any customers, collaborators, agents or users of
any of the Incyte Released Parties based upon the use of microarray related
products that were purchased from Incyte by such customer, collaborator, agent
or user on or before the Effective Date and used by such customer, collaborator,
agent, or user after the Effective Date. This release also specifically covers
the use of data generated by the use of microarray-related products that were
sold by Incyte on or before the Effective Date and used by such customer,
collaborator, agent or user after the Effective Date.

         3.4  The release by Affymetrix set forth in Sections 3.1, 3.2 and 3.3
shall be binding on any successors in interest to Affymetrix only with respect
to Claims that were or could have been asserted by Affymetrix (expressly
excluding claims that could only have been asserted by such successor in
interest).

         3.5  The release by Affymetrix set forth in Sections 3.2 and 3.3 does
not include any release by Affymetrix of any Claim that it may have against ***
or *** or any of their respective predecessors in interest or successors in
interest, except with respect to the use by such entities of Incyte' s data for
internal research purposes.

4.       Section 1542 Waiver. The Incyte Releasing Parties and the Affymetrix
         -------------------
Releasing Parties have each been fully advised by their respective attorneys of
the contents of Section 1542 of the Civil Code of the State of California, which
reads as follows:

         "Section 1542. (General Release - Claims Extinguished) A general
         release does not extend to claims which the creditor does not know or
         suspect to exist in his favor at the time of executing the release,
         which if known by him must have materially affected his settlement with
         the debtor."

The Incyte Releasing Parties and the Affymetrix Releasing Parties each expressly
waive and relinquish all rights and benefits under Section 1542, and any similar
law or common law principle of similar effect of any state or territory of the
United States and any foreign jurisdiction, with respect to the Claims released
hereby, and expressly consent that this Agreement will be given full force and
effect according to each and all of its express terms and provisions based upon
events occurring up to and including the Effective Date of this Agreement,
including with respect to the release of any Claims that are unknown or
unsuspected that the Incyte Releasing Parties or the Affymetrix Releasing
Parties may have against any of the Released Parties.

5.       Finality of Waiver. The Parties hereby expressly and knowingly
         ------------------
acknowledge that each may, after execution of this Agreement, discover facts
different from or in addition to those which each knows or believes to be true
as of the Effective Date with respect to the Claims released in this Agreement.
Nonetheless, each Party agrees that this Agreement shall be and remain in full
force and effect in all respects, notwithstanding such different or additional
facts. It is the intention hereby fully, finally, and forever to settle and
release all such matters, and any and all Claims relating to the Matters, which
do now exist or previously have existed by and among the Parties. In furtherance
of such intention, the

                                       5

***CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE
BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

<PAGE>

releases given in this Agreement shall be and remain in effect as full and
completed releases of such matters, notwithstanding the discovery by any of the
Parties of the existence of any additional or different Claims or facts relating
to the Claims occurring prior to and including the Effective Date of this
Agreement. Similarly, in entering into this Agreement, each Party assumes the
risk of mistake, and if either Party should subsequently discover that any fact
it relied upon in entering into this Agreement was untrue, or that its
understanding of the facts or law was incorrect, such Party shall not be
entitled to set aside this Agreement or be entitled to recover any damages on
that account. This Agreement, and the Releases it contains, is intended,
pursuant to the advice of independently selected legal counsel, to be final and
binding between and among the Parties to this Agreement regardless of any claims
of mistake of fact or law or of any other circumstances whatsoever.

6.       Dismissals/Withdrawals.
         -----------------------

         6.1  Except as provided in Section 11, the Parties agree to dismiss
with prejudice all Claims asserted against one another in the Matters.

         6.2  The Parties agree that within three (3) business days of the
execution of this Agreement, they will jointly sign and file with the United
States District Court for the Northern District of California the Stipulation
and [Proposed] Order of Dismissal With Prejudice attached hereto as Exhibit A.

         6.3  In the event that the Court has not entered the Stipulation and
[Proposed] Order of Dismissal With Prejudice in substantially the form set forth
in Exhibit A within thirty (30) days after its filing, the Parties agree to
contact the Court jointly and use their best efforts in order to expedite entry
of the Stipulation and [Proposed] Order of Dismissal With Prejudice.

         6.4  Either Party shall have the right to terminate this Agreement and
the Related Agreements should (i) the Court not enter the Stipulation and
[Proposed] Order of Dismissal With Prejudice in substantially the form set forth
in Exhibit A or (ii) any other government agency or other entity prevents the
Court's entry of such Stipulation and [Proposed] Order of Dismissal With
Prejudice. In the event of termination pursuant to this section:

                  (a) Any Party who has received a payment from the other Party
pursuant to this Agreement, or the Related Agreements, must return the payment
within seven (7) business days.

                  (b) Each Party reserves its rights to seek an extension of the
discovery period in the Matters based upon, but not limited to, any arguments
that existed prior to the Effective Date.

         6.5  Incyte agrees to take, within fourteen (14) days after the entry
of the Stipulation and [Proposed] Order of Dismissal With Prejudice, all
necessary steps to withdraw from, discontinue, terminate or dismiss the Incyte
Opposition to European Patent No. EP 0619321 and that it will not further
participate directly or indirectly in such opposition.

         6.6  The Parties represent and warrant that there are no adverse
proceedings between them that are filed, pending or planned other than the
Matters and the Stanford

                                       6

<PAGE>

Matters. If any adverse proceeding was omitted from the Matters and the Stanford
Matters, the parties intend to settle any such litigation, proceeding or action
and therefore agree to take all necessary steps to withdraw from, discontinue,
terminate or dismiss such omitted adverse proceeding.

7.       Payment by Affymetrix.
         ----------------------

         7.1  Affymetrix hereby agrees to pay Four Million Five Hundred Thousand
Dollars ($4,500,000) to Incyte as past damages with respect to the Layton Patent
Rights [as such term is defined in the *** Agreement] within thirty (30) days
after the Effective Date by wire transfer in immediately available federal funds
to an account designated in writing by Incyte.

8.       Representations and Indemnities.
         --------------------------------

         8.1  Each Party to this Agreement represents and warrants to the others
that, as of the date hereof, it is a corporation, duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation and has all requisite power and authority, corporate or otherwise,
to execute, deliver and perform this Agreement and all Related Agreements. This
Agreement and each of the Related Agreements is a legal, valid and binding
obligation enforceable against each of the Parties in accordance with its terms
and conditions, except as such enforceability may be limited by applicable
bankruptcy, insolvency, moratorium, reorganization or similar laws, from time to
time in effect, affecting creditor's rights generally and by general principles
of equity.

         8.2  Each Party to this Agreement represents and warrants that it has
not assigned or transferred any portion of any Claims released under this
Agreement to any other person, individual, firm, corporation or entity. Each
Party to this Agreement further represents and warrants that no other person,
individual, firm, corporation or entity has any lien, right, claim or interest
in any Claims released under this Agreement with the exception of the interests
of Stanford University, Patrick Brown and Dari Shalon in Counterclaim III for a
Declaration That Synteni Or Dari Shalon Have Not Misappropriated Any Of
Affymetrix's Trade Secrets. Each Party to this Agreement shall indemnify,
defend, and hold harmless any other Party to or beneficiary of this Agreement
from and against any and all Claims arising out of, related to, or connected
with any prior assignment or transfer, or any purported assignment or transfer,
of any Claims released under this Agreement or breach of the warranties provided
herein.

         8.3  Except for statements expressly set forth in this Agreement, no
Party has made any statement or representation to any other Party regarding a
fact relied upon by the other Party in entering into this Agreement and no Party
has relied upon any statement, representation, or promise of any other Party, or
of any representative or attorney for any other Party, in executing this
Agreement or in making the settlement provided for in this Agreement.

         8.4  Incyte represents and warrants to Affymetrix and the Affymetrix
Released Parties that, as of the date hereof, it is the successor, owner, and
assignee of Synteni, Inc. and has all requisite power and authority, corporate
or otherwise, to release and discharge all Claims on Synteni's behalf under
Section 2.1, 2.2, and 2.3 to the extent such Claims exist.

                                       7

***CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE
BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

<PAGE>

Incyte shall indemnify, defend, and hold harmless Affymetrix, each of the
Affymetrix Released Parties, and each beneficiary of this Agreement from and
against any and all Claims arising out of, related to, or connected with any
breach or failure of this representation and warranty.

         8.5  Incyte represents and warrants to Affymetrix and the Affymetrix
Released Parties that, as of the date hereof, it possesses the right to assert
the Incyte Patents, and has all requisite power and authority, corporate or
otherwise, to release and discharge any and all Claims relating to infringement
of the Incyte Patents under Sections 2.1, 2.2, and 2.3 to the extent such Claims
exist. Incyte shall indemnify, defend, and hold harmless Affymetrix, each of the
Affymetrix Released Parties, and each beneficiary of this Agreement from and
against any and all Claims arising out of, related to, or connected with any
breach or failure of this representation and warranty.

         8.6  Affymetrix represents and warrants to Incyte and the Incyte
Released Parties that, as of the date hereof, that Affymetrix has all the
requisite power and authority, corporate or otherwise, to release and discharge
all Claims on Affymax' behalf under Sections 3.1,3.2 and 3.3 to the extent that
such Claims exist. Affymetrix shall indemnify, defend and hold harmless Incyte,
each of the Incyte Released Parties and each beneficiary of this Agreement from
and against any and all claims arising out of, related to or connected with any
breach or failure of this representation and warranty.

         8.7  Incyte represents and warrants to Affymetrix and the Affymetrix
Released Parties that under Incyte's license agreement with Stanford University
("Stanford"), effective March 24, 1995, as amended (the "Stanford Agreement"),
Incyte is obligated to (a) *** with the *** and *** of *** and *** licensed
to Incyte under the Stanford Agreement, including but not limited to ***
involving such *** and *** and appeals thereof; (b) take all steps necessary
to protect the enforceability of such patents; (c) file all documents and
provide all reasonable assistance to Stanford in connection with any of the
foregoing, and (d) ***. Incyte further represents and warrants to Affymetrix
and the Affymetrix Released Parties that Stanford has communicated to Incyte
that *** of the Stanford Matters *** and *** from the Stanford Matters would
constitute *** described in the previous sentence. Incyte shall indemnify,
defend, and hold harmless Affymetrix, each of the Affymetrix Released Parties,
and each beneficiary of this Agreement from and against any and all Claims
arising out of, related to, or connected with any breach or failure of this
representation and warranty:

         8.8  Incyte waives any and all rights or interests it may have based on
paragraphs 4.1 and 4.3 of the Loan Agreement between Incyte and *** dated May 7,
1999 (the "*** Agreement"), or any other agreement, which would require or
otherwise provide incentive, either positive or negative, to *** to provoke or
maintain interference proceedings in the U.S. Patent and Trademark Office or any
other adverse proceedings against patent applications or patents assigned to
Affymetrix, and agrees not to (i) enforce any such rights it may have to require
or otherwise provide incentive, either positive or negative, to *** to provoke
or maintain such interference proceedings or (ii) require any monetary
compensation in connection with the settlement or resolution of any interference
proceeding brought by *** against Affymetrix. Incyte agrees to notify *** in
writing of this

                                       8

***CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE
BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

<PAGE>

provision, and agrees that Affymetrix may show this provision to ***, but not
any other provision of this Agreement or any other agreement between Incyte and
Affymetrix. Incyte shall also execute and deliver to Affymetrix on or before
January 15, 2002 a release letter in the form to be mutually agreed to by the
Parties for the benefit of ***. Incyte expressly reserves all other rights in
the *** Agreement.

         8.9  Within ten (10) court days of the Effective Date, Affymetrix will
cause Affymax to file a Request for Dismissal with Prejudice of Affymax'
Complaint For Breach Of Contract; Intentional Interference With Contractual
Relations; And Inducing Breach of Contract, Case No. CV 803311, filed on
November 21,2001, against Michael Pirrung, Incyte Genomics, Howrey Simon Arnold
& White, and Does 1 through 10 in the Superior Court of the State of California
for the County of Santa Clara.

9.       Stanford Matters.
         -----------------

         Incyte agrees that it will *** the Stanford Matters to the ***.

10.      Cross-Default.
         --------------

         Except as provided in any provisions of the Related Agreements, the
Parties acknowledge and agree that a breach or default under any of such Related
Agreements shall not constitute a breach or default under any other Related
Agreement nor under this Agreement.

11.      Reservation of Rights.
         ----------------------

         Nothing in this Agreement or the Related Agreements shall be
interpreted as an admission by either party of the validity or invalidity of any
patent, or as an admission by either party of its direct or contributory or
inducement of infringement of any patent, or as an admission by either party of
any issue relating to the Matters or Stanford Matters. Notwithstanding any other
provision in this Agreement or the Related Agreements, it is expressly
understood that neither party is waiving or has waived any Claim or affirmative
defense that any patents are valid, invalid, enforceable, or unenforceable,
including any Claim or affirmative defense based upon the factual allegations
made in the Matters or the Stanford Matters which each party expressly reserves.

12.      Miscellaneous.
         --------------

         12.1  The Parties agree to keep the terms of this Agreement and the
Related Agreements confidential, and agree not to disclose the terms of this
Agreement and the Related Agreements, except pursuant to a mutually-agreed press
release, and except as may be (i) necessary for the purpose of enforcing any
provision of this Agreement or a Related Agreement, (ii) required by law or any
regulatory body, and (iii) to the outside counsel of any third party undertaking
a bona fide due diligence exercise in connection with the business of either
Party or the purchase of substantially all of the assets of the other party, but
only where a mutually satisfactory confidentiality agreement has been signed.
Notwithstanding the foregoing, both Parties may agree to inform any court with
jurisdiction over the Matters or Stanford Matters of the existence of a
settlement and the Parties may file this Agreement and any other Related
Agreements in the U.S. Patent office as required

                                       9

***CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE
BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

<PAGE>

under 35 U.S.C. ss. 135(c). If this Agreement or any of the Related Agreements
is sought in;. discovery, the Party responding to discovery shall make its best
efforts to maintain the confidentiality of the Agreement, and in the event that
a court orders production of the Agreement, to ensure that it is produced with a
restriction providing that it can be seen and/or discussed only by outside
counsel of the requesting party.

         12.2  Each Party represents and acknowledges that it has read this
Agreement and fully understands and agrees to its terms, and that each Party has
been represented by counsel in connection with the negotiation and execution of
this Agreement.

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

         12.4  The Parties agree that this Agreement will be governed by and
construed in accordance with the laws of the State of California applicable to
agreements made and to be performed entirely within such State, without regard
to the conflicts of laws principles of such State.

         12.5  This Agreement and the Related Agreements contain the entire
agreement among the Parties with respect to the matters contained herein, and
may be amended only by written agreement signed by the Parties to the Agreement.
The provisions of all of such agreements shall be construed together so as to
give effect to the provisions of each of the agreements to the greatest extent
possible.

         12.6  Except to the extent provided in Sections 2.2, 2.3, 3.2, 3.3 and
8.7, this Agreement is intended only for the benefit of the Parties hereto, the
Incyte Released Parties and the Affymetrix Released Parties and no other person
or entity is entitled to any rights or benefits hereunder.

         12.7  Each Party shall perform any further acts, and sign and deliver
any further instruments and documents, as may be required to accomplish the
purposes of this Agreement; provided, however, that nothing in this provision
shall be interpreted to modify any of the specific terms of this Agreement.

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

         If to Incyte:     FAX Number: 650-845-4500
                           Incyte Genomics, Inc.
                           3160 Porter Drive
                           Palo Alto, California 94303
                           Attention: Paul A. Friedman, M.D., CEO

        with a copy to:    Incyte Genomics, Inc.

                                       10

<PAGE>

                               3160 Porter Drive
                               Palo Alto, California 94303
                               Attention: Lee Bendekgey, General Counsel

         If to Affymetrix:     FAX Number: 408-481-0422
                               Affymetrix, Inc.
                               3380 Central Expressway
                               Santa Clara, California 95051
                               Attention: Stephen P.A. Fodor, Ph.D.

         with a copy to:       Affymetrix, Inc.
                               3380 Central Expressway
                               Santa Clara, California 95051
                               Attention: Barbara A. Caulfield, Esq.

         12.9  No Party hereto shall assign or delegate any of its rights or
obligations hereunder without the prior, written consent of the other Party,
which the other Party may withhold in its sole and absolute discretion, except
that no such consent shall be required with respect to a merger, consolidation,
reorganization, sale of stock or sale of substantially all of the business and
assets of a Party. This Agreement shall be binding upon the permitted successors
and permitted assigns of the Party. Any assignment not in accordance with the
above shall be void.

         12.10  The prevailing Party in any action to enforce this Agreement
will be entitled to recover its attorney's fees and costs in connection with
such action.

         12.11  Within 90 days after final judgment and appeal or final
settlement of Case No. C 99-21111, the Parties will return and/or destroy all
documents and materials produced in the various actions, and will certify their
destruction and/or return to the other Party, and comply with Section VII of the
Stipulation and Amended Protective Order for Confidential Documents, Testimony
and Information in Cases C 99-21164, C-99- 21165 and C 99-21111 and Amended
Protective Order for Confidential Documents, Testimony and Information in Case C
01-20065. The Parties hereby confirm that, consistent with the terms of the
Protective Orders in the Matters and in Incyte Pharmaceuticals, Inc., et al. v.
Affymetrix, Inc., Case No. C 99-21111 IF (N.D. Cal.), the Parties will not
disclose or use any documents, testimony or other information designated by the
other Party under the Protective Orders except as permitted by the Protective
Orders.

         12.12  Incyte and Affymetrix agree that they will not use any
information or materials obtained pursuant to the Protective Orders in the
Matters or Stanford Matters except in those matters, and that they will not
disclose any such information or materials to, or use them on behalf of, any
other person or entity, except as permitted by the Protective Orders referenced
in Section 12.11.

         12.13  Except to the extent specifically provided in any of the Related
Agreements, Incyte and Affymetrix agree that for a period of one (1) year from
the Effective Date neither Incyte nor Affymetrix will initiate, sponsor, finance
or participate in any court proceeding or arbitration against the other Party
relating to intellectual property rights.

                                       11

<PAGE>

         12.14  During the two year period commencing on the first anniversary
of the Effective Date, neither Incyte nor Affymetrix will initiate, sponsor,
finance or participate in any court proceeding or arbitration relating to the
intellectual property rights against the other Party without first engaging in
the following procedures:

                 (a) The Party which desires to initiate, sponsor, finance or
participate in any such court proceeding or arbitration shall first notify the
other Party in writing of its intention to do so, which notice shall contain a
brief but reasonably complete description of the nature of the claims to be
brought in such court proceeding or arbitration (the "Dispute Notice").

                 (b) During a period of ninety (90) days from the date of the
Dispute Notice, the Chief Executive Officers of Incyte and Affymetrix shall
discuss the matters described in the Dispute Notice with a view to resolving
such matters in a manner satisfactory to the Parties. If, at the conclusion of
such ninety-day period no resolution has been reached, either Party may
initiate, sponsor, finance or participate in any court proceeding or arbitration
legally available to it.

         12.15  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"),
except for any proceedings in the United States Patent Office, the Parties shall
seek to settle their differences amicably between themselves. Any unresolved
Dispute shall be resolved by arbitration under 35 U.S.C. 294. The parties agree
that under 35 U.S.C. 294(c), in the event a patent which is the subject of an
arbitration award is subsequently determined to be invalid or unenforceable by a
court or governmental body of competent jurisdiction from which no appeal can or
has been taken such arbitration award may be modified by any court of competent
jurisdiction upon application by a party to the 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 before JAMS or its
successor pursuant to the United States Arbitration Act 9 U.S.C. ss. 1 et seq.
Arbitration shall be held in the San Francisco Bay Area of California. The
arbitration shall be conducted in accordance with the provisions of JAMS
Comprehensive Arbitration Rules and Procedures 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, then a single arbitrator shall be chosen under JAMS rules from
neutrals who have experience trying patent cases. 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 and to
provide a reasoned written opinion setting forth the findings of fact and
conclusions of law. No arbitrator shall have the power to award punitive damages
or any award of multiple damages under this Agreement and such awards are
expressly prohibited. Judgment on the award of the arbitrator(s) may be entered
County of Santa Clara, California. Except to the extent entry of judgment and
any subsequent enforcement may require disclosure, or except as required by law,
all matters relating to the arbitration, including the award, shall be held in
confidence by the Parties.

                                       12

<PAGE>

         IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed in counterparts as of the date first written above.

Dated:                                             AFFYMETRIX, INC.

              12/21/01                    By:  /s/ Barbara A. Caulfield
-------------------------------              -------------------------------
                                             Name:  BARBARA A. CAULFIELD
                                                  --------------------------
                                             Title: Exec. V.P. & G.G.
                                                  --------------------------

Dated:                                    INCYTE GENOMICS, INC.

         December 21, 2001                By:      /s/ Lee Bendedgey
-------------------------------              -------------------------------
                                             Name: LEE BENDEDGEY
                                                  --------------------------
                                             Title: Executive Vice President
                                                  --------------------------

Dated:

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

Dated:

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

                                       13

<PAGE>

                                    Exhibit A

                  Stipulation and [Proposed] Order of Dismissal

                                       14

<PAGE>

IRELL & MANELLA LLP
Morgan Chu (SBN 70446)
Richard de Bodo (SBN 128199)
Jeffrey L. Arrington (SBN 139435)
1800 Avenue of the Stars
Los Angeles, California 90067-4276

Attorneys for Affymetrix, Inc.

HOWREY SIMON ARNOLD & WHITE, LLP
Robert P. Taylor (SBN 46046)
Teresa M. Corbin (SBN 132360)
Don F. Livornese (SBN 125934)
301 Ravenswood Avenue
Menlo Park, CA 94025

Attorneys for Incyte Genomics, Inc., Incyte
Pharmaceuticals, Inc., and Synteni, Inc.

OTHER COUNSEL LISTED ON SIGNATURE PAGE

                          UNITED STATES DISTRICT COURT

                         NORTHERN DISTRICT OF CALIFORNIA

                                SAN JOSE DIVISION

<TABLE>
<CAPTION>
<S>                                                  <C>
-----------------------------------------------------------------------------------------
AFFYMETRIX, INC.,                                     Civil Action No. C 99-21164 (JF)
-----------------------------------------------------------------------------------------
           Plaintiff/Counterdefendant,                Civil Action No. C 99-21165 (JF)
-----------------------------------------------------------------------------------------
        vs.                                           Civil Action No. C 01-20065 (JF)
-----------------------------------------------------------------------------------------
SYNTENI, INC. and INCYTE                              STIPULATION AND [PROPOSED]
-----------------------------------------------------------------------------------------
PHARMACEUTICALS, INC.,                                ORDER OF DISMISSAL
-----------------------------------------------------------------------------------------
                   Defendants/Counterclaimant.
-----------------------------------------------------------------------------------------
AND RELATED ACTIONS
-----------------------------------------------------------------------------------------
</TABLE>

                                       15

<PAGE>

     WHEREAS Affymetrix, Inc. ("Affymetrix") and Incyte Genomics, Inc.,
Incyte Pharmaceuticals, Inc., and Synteni, Inc. (collectively, "Incyte") have
entered into a confidential settlement which provides a basis for conclusion of
these actions;

     THEREFORE, THE PARTIES HEREBY STIPULATE AND AGREE, through their
counsel of record, that:

     1.   All claims, defenses, and counterclaims in Case Nos. C 99-21164,

          C 99-21165, and C 01-20065 are hereby dismissed with prejudice.
          However, it is 11 expressly understood that neither party is admitting
          the validity or invalidity of any patent, or its direct, contributory,
          or inducement of infringement of any patent, or any issue relating
          to the above-captioned actions or Case No. C 99- 21111. It is further
          expressly understood that neither party is waiving or has waived any
          claim, affirmative defense or contention that any patents are valid,
          invalid, enforceable or unenforceable, including any claim,
          affirmative defense or contention based upon the factual allegations
          made in the above captioned-actions or in Case No. C 99-21111. Each
          party expressly reserves such issues, contentions, claims and/or
          defenses.

     2.   The parties do not accept, admit, or waive any issue, matter, or
          position raised in or relating to these above-captioned actions.

     3.   Each party shall bear its own attorneys' fees and costs of suit.

     4.   Case No. C 99-21111 is not being settled or dismissed at this
          time. Neither party shall be required to comply with Paragraph VII
          of the Stipulations and Amended Protective Orders for Confidential
          Documents, Testimony and Information in Case Nos. C 99-21164, C
          99-21165, C 99-21111 and C 01-20065 until final termination or
          settlement of Case No. C 99-21111.

                                       16

<PAGE>

     5.   This Court shall retain jurisdiction over the implementation of
          the parties' settlement, including retaining jurisdiction to order
          any appropriate remedy under law or equity.

Dated: December __, 2001               IRELL & MANELLA LLP

                                       By:
                                          -------------------------------
                                            Richard de Bodo
                                            Attorneys for Affymetrix

Dated: December __, 2001               HOWREY SIMON ARNOLD & WHITE LLP

                                       By:
                                          -------------------------------
                                            Teresa M. Corbin

Dated: December __, 2001               SHEARMAN & STERLING

                                       By:
                                          -------------------------------
                                         Vicki S. Veenker

                                           Attorneys for Incyte Genomics, Inc.
                                           Incyte Pharmaceuticals, Inc., and
                                           Synteni, Inc.

                                       ORDER

             IT IS SO ORDERED.

Dated:
       -----------------------         ----------------------------------
                                       HON. JEREMY FOGEL
                                       UNITED STATES DISTRICT JUDGE

                                       17

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