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                                                                   EXHIBIT 10.78

           *** TEXT MARKED ...***...IN SECTION 9.2 OMITTED AND FILED SEPARATELY.
          CONFIDENTIAL TREATMENT REQUESTED UNDER 17 C.F.R. SEC. 280.80(b)(4) AND
                                 SEC. 240.24b-2

                  SETTLEMENT AND NONEXCLUSIVE LICENSE AGREEMENT

THIS SETTLEMENT AND NONEXCLUSIVE LICENSE AGREEMENT ("Agreement"), dated as of
January 10, 2001, is entered into by and between Incyte Genomics, Inc., a
Delaware corporation, with offices at 3160 Porter Drive, Palo Alto, California
94304 ("Incyte"), and Gene Logic, Inc., a Delaware corporation, with offices at
708 Quince Orchard Road, Gaithersburg, Maryland 20878 ("Gene Logic"). Incyte and
Gene Logic may each be referred to herein individually as a "Party" and
collectively as the "Parties".

                                   WITNESSETH

        WHEREAS, Incyte has the right to grant licenses under certain patents
and patent applications regarding RNA amplification and bioinformatics.

        WHEREAS, Incyte has agreed to grant a nonexclusive license to Gene Logic
under certain of these patents and patent applications for the purposes of, and
subject to the terms and conditions of this Agreement.

        WHEREAS, Incyte and Gene Logic have agreed to settle the litigations
between Incyte and Gene Logic filed as Case Nos. C 99-05180 MJJ (ENE) (JL) (the
"First Action") and C-00-04627 SBA (the "Second Action") in the United States
District Court for the Northern District of California (collectively the
"Actions"), based on the terms herein.

        NOW THEREFORE, in consideration of the foregoing premises and the mutual
covenants herein contained, the Parties hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

In this Agreement the following words and expressions have the following
meanings:

1.1     "AFFILIATE" shall mean any corporation, firm, limited liability company,
        partnership or other entity that is controlled by Gene Logic. For the
        purpose of this definition, control means ownership of one hundred
        percent (100%) of the shares of stock entitled to vote for the election
        of directors, in the case of a corporation, or one hundred percent
        (100%) of the equity interests in the case of any other type of legal
        entity, status as a general partner in any partnership. Notwithstanding
        the foregoing, for purposes of this Agreement, the term "Affiliate"
        shall not include Affymetrix, Inc. ("Affymetrix"), Perlegen
        Sciences, Inc. ("Perlegen") or Applera Corporation ("Applera").

1.2     "CLINICAL DIAGNOSTICS" shall mean the performance of FDA-approved
        clinical diagnostic test(s) on a human tissue or other human biological
        sample, the results

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        of which are provided to health care providers for use in the clinical
        management of individual patients.

1.3     "CONTROL" OR "CONTROLLED" shall mean possession of the ability to grant
        the licenses or sublicenses or to make the assignments as provided for
        herein without violating the terms of any agreement or other arrangement
        with any Third Party.

1.4     "EFFECTIVE DATE" shall mean the date first set forth above.

1.5     "END USER" shall mean any corporate entity or individual to whom Gene
        Logic directly sells or otherwise provides Gene Expression Information
        for use in research and development, including clinical development of
        pharmaceuticals and Clinical Diagnostics.

1.6     "LAYTON FIELD OF USE ACTIVITIES" shall mean the preparation of samples
        by Gene Logic for gene expression analysis for research and development
        of pharmaceutical and diagnostic products and services, specifically
        including uses in clinical trials by Gene Logic or End Users. For
        purposes of clarification, Gene Logic and End Users have the right to
        commercialize such pharmaceutical and diagnostic products and services
        developed pursuant to the first sentence of this Section 1.6; provided
        that such products or services would not otherwise infringe the Layton
        Patents. End Users may commercialize pharmaceutical and diagnostic
        products and/or services developed using the Gene Expression Information
        generated by Gene Logic under the license granted herein but are not
        themselves granted any license to practice the inventions claimed in the
        Layton Patents hereunder. Notwithstanding the foregoing, the Layton
        Field of Use Activities specifically excludes (a) making, having made,
        using, selling, offering for sale, or otherwise providing Clinical
        Diagnostics; (b) making, having made, selling, offering for sale, or
        otherwise providing Layton Kits; (c) high throughput sequencing; and (d)
        genotyping, SNP detection and SNP discovery.

1.7     "GENE EXPRESSION INFORMATION" shall mean information generated by Gene
        Logic concerning the presence, absence and/or abundance of messenger RNA
        molecules in a biological sample.

1.8     "GENOTYPING" shall mean the determination of sequence variation of
        genetic markers in DNA, including sequence variation in SNPs ("single
        nucleotide polymorphisms"), subject to the following limitation: the
        term "genotyping" specifically excludes generation of Gene Expression
        Information.

1.9     "INCYTE PATENTS" shall mean (a) U.S. Patent No. 6,023,659, "Database
        System Employing Protein Function Hierarchies For Viewing Biomolecular
        Sequences" issued February 8, 2000, (b) all patents and patent
        applications, including provisional applications whether or not filed
        more than one year ago, Controlled by Incyte as of the Effective Date or
        during the term of this Agreement that claim benefit under 35 USC
        Sections 119 and/or 120 of any application or provisional application to
        which the patent identified in (a) claims benefit under 35 USC Sections

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        119 and/or 120; (c) all continuations, continuations-in-part, divisions
        or provisionals of any application that matured into the patent included
        in (a) or (b); (d) all patents issuing from any patent application,
        including any provisional application included in (b) or (c); (e) all
        foreign counterparts of any of the foregoing, and the patents issuing
        therefrom; and (f) all reissues and re-examinations of any of the
        foregoing and the patents issuing therefrom.

1.10    "LAYTON KITS" shall mean combined sets of reagents whose use would
        infringe one or more claims of the Layton Patents.

1.11    "LAYTON PATENTS" shall mean (a) U.S. Patent No. 5,716,785, "Processes
        for Genetic Manipulations Using Promoters" issued February 1, 1998; U.S.
        Patent No. 5,891,636, "Processes for Genetic Manipulations Using
        Promoters" issued April 6, 1999, (b) all patents and patent
        applications, including provisional applications whether or not filed
        more than one year ago, Controlled by Incyte as of the Effective Date or
        during the term of this Agreement that claim benefit under 35 USC
        Sections 119 and/or 120 of any application or provisional application to
        which the patent identified in (a) claims benefit under 35 USC Sections
        119 and/or 120; (c) all continuations, continuations-in-part, divisions
        or provisionals of any application that matured into the patent included
        in (a) or (b); (d) all patents issuing from any patent application,
        including any provisional application included in (b) or (c); (e) all
        foreign counterparts of any of the foregoing, and the patents issuing
        therefrom; and (f) all reissues and re-examinations of any of the
        foregoing and the patents issuing therefrom.

1.12    "LICENSED PATENTS" shall mean the Incyte Patents and the Layton Patents.

1.13    "THIRD PARTY" shall mean any person or entity other than Incyte, Gene
        Logic or Gene Logic's Affiliates.

                                    ARTICLE 2
                                  LICENSE GRANT

2.1     LAYTON PATENTS NON-EXCLUSIVE LICENSE GRANT. Subject to the terms of this
        Agreement, Incyte hereby grants to Gene Logic and its Affiliates and
        Gene Logic and its Affiliates accept from Incyte a non-exclusive, fully
        paid up, non-transferable (except as permitted under Section 11.7),
        revocable only as permitted under Section 9.2, world-wide license under
        the Layton Patents limited to the Layton Field of Use Activities, said
        license being subject to the provisions of Section 1.6, without the
        right to sublicense or any sublicense being implied.

2.2     INCYTE PATENTS NON-EXCLUSIVE LICENSE GRANT. Subject to the terms of this
        Agreement, Incyte hereby grants to Gene Logic and its Affiliates and
        Gene Logic and its Affiliates accept a non-exclusive, fully paid up,
        non-transferable (except as permitted under Section 11.7), revocable
        only as permitted under Section 9.2, worldwide license under the Incyte
        Patents for all uses (excluding resale of any

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        Third Party database product), said license being without the right to
        sublicense or any sublicense being implied.

2.3     NO EXTENSION OF RIGHTS TO SUPPLIERS. The non-exclusive license grants of
        Sections 2.1 and 2.2 hereof do not extend any right under the Licensed
        Patents to any Third Party that supplies any product or service covered
        by the Licensed Patents or used by Gene Logic under the licenses granted
        herein, including any supplier of Layton Kits, gene expression
        microarrays or Gene Expression Information except for Third Parties
        supplying reagents other than Layton Kits for purposes of Gene Logic's
        use under Section 2.1.

2.4     THIRD PARTY LITIGATION. Gene Logic may not, under any circumstances,
        rely on the licenses granted through this Agreement to preclude Incyte
        from taking any legal action for infringement of the Licensed Patents
        against any Third Party, including obtaining injunctive relief that
        would bar such Third Party from providing to Gene Logic any product or
        service covered by a valid claim under the Licensed Patents including
        any Layton Kit, gene expression microarray, or Gene Expression
        Information except for Third Parties supplying reagents other than
        Layton Kits for purposes of Gene Logic's use under Section 2.1.

                                    ARTICLE 3
                            DISMISSAL OF THE ACTIONS

3.1     DISMISSAL OF THE ACTIONS. The Parties shall have their counsel execute
and submit a Stipulation and [Proposed] Order of Dismissal of the Actions in the
form attached as Exhibit A within three (3) business days of the payment
specified in Section 5.1 of this Agreement. The Parties agree that the
Stipulation and [Proposed] Order of Dismissal shall not preclude the right of
Incyte to bring suit against Gene Logic or Gene Logic's Affiliates in the United
States District Court for the Northern District of California if this Agreement
is breached by Gene Logic in one or more causes of action including an action
for infringement of the Licensed Patents, and an action for breach of contract.
The Parties agree that the stipulation and [Proposed] Order of Dismissal shall
not preclude the right of Gene Logic to bring suit against Incyte in the United
States District Court for the Northern District of California if this Agreement
is breached by Incyte in one or more causes of action, including an action for
breach of contract.

                                    ARTICLE 4
                             ADDITIONAL OBLIGATIONS

4.1     RELEASE. Incyte and Gene Logic for themselves and for their parents,
subsidiaries, agents, servants, successors, assigns, and representatives,
including but not limited to, officers, directors, employees, and attorneys
and/or any other related or affiliated corporation or entity, hereby mutually
release each other from any and all claims, causes of action, potential
counterclaims, suits, demands, obligations, promises, liabilities, and damages
of any kind whatsoever, whether at law or equity, whether known or unknown,
which they, or any of them, had or may have had as of the Effective Date

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against each other arising out of any dispute, claim or counterclaim of any
nature whatsoever arising directly or indirectly or in any way related to the
claims asserted in the Actions and from the commencement, prosecution, defense
and dismissal of the Actions.

4.2     CAL. CIVIL CODE SECTION 1542. The Parties expressly waive any right or
        benefit to Section 1542 of the California Civil Code which provides:

        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 TO HIM, MUST HAVE MATERIALLY AFFECTED HIS
        SETTLEMENT WITH THE DEBTOR.

The Parties, being aware of the above code section, also waive any right or
benefit to which they may be entitled under any other similar statute or common
law principle to the extent permitted by law.

4.3     COVENANT NOT TO SUE. Each party hereby covenants that for a period of
        twelve months from the Effective Date, and provided that the other Party
        is not in material breach of this Agreement, neither Party will
        institute any action for patent infringement against the other Party.
        Each Party also agrees that, during the twelve-month period provided by
        this Section 4.3, appropriate representatives of each Party will make a
        good faith effort to meet with each other to explore licensing and
        cross-licensing of the Parties' respective intellectual property as well
        as other business opportunities that may exist.

4.4     DISPUTE RESOLUTION. Each Party hereby agrees that for a period of
        twenty-four months following the termination of the twelve-month period
        provided under Section 4.3 hereof, and provided that the Agreement has
        not been terminated, each Party will provide the other Party ninety-days
        notice before instituting any action for patent infringement against the
        other Party. During the ninety-day notification period provided by this
        Section 4.4, the Parties shall attempt in good faith to settle the
        issues raised by the notice either by submitting the issues raised by
        the notice to appropriate senior management representatives of each
        party in an effort to effect a mutually acceptable resolution thereof or
        by agreeing to a binding alternative dispute resolution procedure by
        which those issues may be resolved. In the event no mutually acceptable
        resolution of the issues raised by the notice is achieved and no
        mutually acceptable procedure for alternative dispute resolution is
        agreed upon within the ninety-day period provided by this Section 4.4,
        then either party shall be entitled to seek final settlement of such
        Dispute by any administrative or judicial mechanism which may be
        available.

4.5     ISSUE PRECLUSION: INFRINGEMENT OF LAYTON PATENTS BY ACCUSED PROTOCOLS.
        Gene Logic will not assert in any litigation with Incyte, or any
        successor to Incyte, that Gene Logic's use of its current and past
        protocols for amplifying RNA for gene expression analysis (e.g., Eastman
        Exhibit 21, GL 68518-68523)

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        accused of infringement in the claim charts in the First Action does not
        infringe the Layton Patents. The Parties agree that the provisions of
        this Section 4.5 will have issue preclusive effect. Based on the
        previous sentence, it is the Parties' specific intent that this
        Agreement and the dismissal of the Actions pursuant hereto shall be
        binding on and shall absolutely bar and preclude Gene Logic, Gene
        Logic's Affiliates, or any entity that acquires Gene Logic from
        contesting any issue concerning the infringement of such patents by such
        protocols or any insubstantial variation of such protocols in any
        judicial proceeding on any claim.

4.6     ISSUE PRECLUSION: VALIDITY AND ENFORCEABILITY OF LAYTON PATENTS. Gene
        Logic will not assert in any litigation with Incyte, or any successor to
        Incyte, that the Layton Patents are invalid or unenforceable. The
        Parties agree that the provisions of this Section 4.6 will have issue
        preclusive effect as to the validity and enforceability of the Layton
        Patents. Based on the previous sentence, it is the Parties' specific
        intent that this Agreement and the dismissal of the Actions pursuant
        hereto shall be binding on and shall absolutely bar and preclude Gene
        Logic, Gene Logic's Affiliates, or any entity that acquires Gene Logic
        from contesting any issue concerning the validity and enforceability of
        those patents in any judicial proceeding on any claim. Gene Logic
        further agrees to remain neutral in any action or proceeding contesting
        the validity or enforceability of those patents, e.g. by responding to
        court order or subpoena. This Section 4.6 shall not apply if the Layton
        Patents are held invalid or unenforceable by a court decision that is
        not appealable or from which no appeal is taken.

4.7     USE OF AGREEMENTS, PRECLUSIONS, OR DISCOVERY IN SUBSEQUENT LITIGATIONS.
        Incyte may rely on and offer in evidence the agreements and preclusions
        set forth in Sections 4.5 and 4.6 in any litigation that involves the
        Layton Patents against Gene Logic, Gene Logic's Affiliates, or any
        entity that acquires Gene Logic. Incyte shall not use, rely on, or offer
        into evidence such agreements and preclusions in any litigation
        involving the Layton Patents against Affymetrix. Gene Logic agrees that
        in the ongoing litigation between Incyte and Affymetrix concerning the
        Layton Patents filed as Case No. C-OO-3210 MJJ in the United States
        District Court for the Northern District of California, Gene Logic will
        promptly respond to written discovery requests by producing all
        earlier-produced documents and deposition transcripts to both Affymetrix
        and Incyte, except that it reserves the right (i) to object to the
        production of documents and transcripts that it independently determines
        lack relevance to the Affymetrix suit and (ii) to object to production
        of any documents on grounds of joint privilege with Affymetrix if Gene
        Logic is requested by Affymetrix to do so. Regardless, Gene Logic agrees
        that it will produce without objection the documents and deposition
        transcript excerpts itemized in Exhibit B attached hereto. Any and all
        such production shall be made pursuant to Northern District of
        California Local Rule 16-6 until the ultimate entry of an appropriate
        protective order in the Affymetrix suit. Gene Logic further agrees to
        "meet and confer" with Incyte to attempt to promptly resolve any
        objections Gene Logic might have to production of any such information
        or documents in the above-styled Affymetrix litigation. The

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        provisions of Section 9.2 of this Agreement shall not be applicable to
        this Section 4.7.

                                    ARTICLE 5
                                     PAYMENT

5.1     PAYMENT. Based on the consideration provided in this Agreement, Gene
        Logic shall pay to Incyte, no later than ten (10) days after the
        Effective Date, the sum of Nine Million U.S. dollars (U.S.
        $9,000,000.00) by electronic wire transfer in immediately available
        funds to such account as Incyte shall designate by written notice to
        Gene Logic, which sum shall be non-refundable and which notice shall be
        provided no later than the Effective Date.

                                    ARTICLE 6
                                 CONFIDENTIALITY

6.1     CONFIDENTIALITY OBLIGATION. Notwithstanding any other provision herein
        to the contrary, including, without limitation, the provisions of
        Section 4.7, Incyte and Gene Logic each agree that, without the prior
        written consent of the other Party or unless required by law, it shall
        not disclose to any Third Party the terms of this Agreement or any
        confidential information regarding the other Party or the business of
        the other Party which has been made available to it (the "Protected
        Information"), except as provided in Sections 6.2 and 6.3 of this
        Article and except that (i) the terms of this Agreement may be disclosed
        to outside legal counsel, provided that such outside legal counsel agree
        to maintain the Protected Information in confidence and (ii) Incyte may
        disclose to the Third Party licensor of the Layton Patents such terms of
        this Agreement as are necessary to be disclosed to such Third Party
        licensor under the terms of the license agreement between Incyte and
        such Third Party license, provided that such Third Party licensor agrees
        to maintain the Protected Information in confidence. Disclosure solely
        consisting of the existence of this Agreement and Gene Logic's status as
        a non-exclusive licensee under the Licensed Patents are specifically not
        within the confidentiality obligation imposed by this Section 6.1.

6.2     STATUE, REGULATION OR JUDICIAL PROCEEDING. Notwithstanding any other
        provision of this Article 6, if either Party is required by statute,
        rule or regulation, including the rules and regulations of the
        Securities and Exchange Commission, or by force of law, to disclose the
        Protected Information, the disclosing Party shall promptly notify the
        other Party of such requirement and shall seek an appropriate protective
        order to preserve the confidential status of the Protected Information.
        The disclosing Party shall give the other Party reasonable notice of
        such protective order, and shall obtain the other Party's consent to
        disclose the Protected Information pursuant to such protective order,
        which consent shall not be unreasonably withheld. Disclosure of the
        Protected Information in such proceedings shall take place only under
        the terms provided in the appropriate protective order. If, in the
        absence of a protective order or the receipt of a waiver of the
        confidential status of the Protected Information from the other Party,
        the

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        disclosing Party is nonetheless, compelled to disclose Protected
        Information pursuant to a legal proceeding, such party, after notice to
        the other Party, may disclose such Protected Information pursuant to
        such legal proceeding, and shall not be in breach of this Agreement.

6.3     SURVIVAL. The above obligations of confidentiality shall survive
        expiration or termination of this Agreement.

                                    ARTICLE 7
                       PATENT PROSECUTION AND ENFORCEMENT

7.1     PATENT PROCUREMENT. As between Incyte and Gene Logic only, Incyte shall
        have the sole right (in Incyte's sole discretion), but not the
        obligation, at its own expense, to control the preparation, filing,
        prosecution, maintenance and enforcement of the Licensed Patents,
        provided, however, that Incyte shall promptly notify Gene Logic, in
        writing, upon the issuance, expiration, invalidation, abandonment,
        disclaimer or lapse of any valid claim included within the Licensed
        Patents.

7.2     PATENT ENFORCEMENT. Incyte shall have no obligation to take any action
        whether through the institution of legal proceedings or otherwise with
        respect to any infringement or suspected infringement of the Licensed
        Patents. Without prejudice to any separate agreement that may be or have
        been reached between the Parties, if Incyte in its sole discretion
        decides to take any such action against any Third Party it shall do so
        at its own cost, and Gene Logic shall have no claim to any sums received
        by Incyte in connection with taking any such action.

                                    ARTICLE 8
                       WARRANTIES AND WARRANTY DISCLAIMERS

8.1     REPRESENTATIONS AND WARRANTIES OF EACH PARTY. Each Party hereby
        represents and warrants to the other that:

        (a)     it is a corporation or entity duly organized and validly
                existing under the laws of the state or other jurisdiction
                of its incorporation or formation;

        (b)     the execution, delivery and performance of this Agreement by
                such Party has been duly authorized by all requisite corporate
                action and does not require any shareholder action or approval;

        (c)     it has the power and authority to execute and deliver this
                Agreement and to perform its obligations hereunder;

        (d)     the execution, delivery and performance by such Party of this
                Agreement and its compliance with the terms and provisions
                hereof does not and will not conflict with or result in a breach
                of any of the terms and provisions of or constitute a default
                under (a) a loan agreement, guaranty, financing

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                agreement, agreement affecting a product or other agreement or
                instrument binding or affecting it or its property; (b) the
                provisions of its charter or operative documents or bylaws; or (
                c) any order, writ, injunction or decree of any court or
                governmental authority entered against it or by which any of its
                property is bound; and

        (e)     it shall at all times comply with all applicable material laws
                and regulations relating to its activities under this Agreement.

8.2     ADDITIONAL REPRESENTATIONS AND WARRANTIES OF INCYTE. In addition to the
        representations and warranties made by Incyte under Section 8.1 above,
        Incyte hereby further represents and warrants to Gene Logic that:

        (a)     as of the Effective Date, the Licensed Patents are existing and,
                to the best of its knowledge, those issued patents included
                within the Licensed Patents are not invalid or unenforceable, in
                whole or in part;

        (b)     it has the full right, power and authority to grant all of the
                right, title and interest in the licenses granted to Gene Logic
                under this Agreement; and

        (c)     it Controls the Licensed Patents and its grant of the licenses
                to Gene Logic hereunder does not violate the rights of any Third
                Party and does not and will not constitute a material breach or
                other violation of any agreement between Incyte and any Third
                Party.

8.3     LEGAL COUNSEL. Each Party hereby further represents and warrants to the
        other Party that it has been represented by legal counsel in connection
        with this Agreement and acknowledges that it has participated in the
        drafting hereof In interpreting and applying the terms and provisions of
        this Agreement, the Parties agree that no presumption shall exist or be
        implied against the Party which drafted such terms and provisions.

8.4     DISCLAIMER. Incyte makes no warranty, representation or undertaking:

        (a)     as to the efficacy or usefulness of the Licensed Patents or any
                discovery or invention covered thereby;

        (b)     that any pending patent application included within the Licensed
                Patents will proceed to grant of a patent;

        (c)     that the exploitation of the Licensed Patents, or the exercise
                of any rights licensed hereunder, will not infringe any
                intellectual property or other rights of any Third Party; or

        (d)     as imposing any obligation on Incyte to bring or prosecute
                actions or proceedings against Third Parties for infringement or
                to defend any actions or proceedings for revocation of any of
                the Licensed Patents.

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        ADDITIONALLY, EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, ANY AND
        ALL RIGHTS LICENSED AND PATENTS MADE AVAILABLE BY INCYTE TO GENE LOGIC
        ARE LICENSED OR MADE AVAILABLE "AS IS". INCYTE MAKES NO REPRESENTATIONS
        OR WARRANTIES OF ANY KIND (OTHER THAN AS SET FORTH IN THIS ARTICLE 8)
        AND INCYTE DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING
        ANY IMPLIED WARRANTIES OF QUALITY, MERCHANTABILITY, FITNESS FOR A
        PARTICULAR PURPOSE OR NONINFRINGEMENT.

                                    ARTICLE 9
                              TERM AND TERMINATION

9.1     TERM. This Agreement and the license granted under hereby shall be
        effective as of the Effective Date and unless terminated earlier in
        accordance with this Article 9 shall continue in force on a country by
        country basis until the last to expire of the Licensed Patents in such
        country.

9.2     TERMINATION FOR CAUSE. This Agreement may be terminated by written
        notice by either Party at any time during the term of this Agreement for
        a material breach by the other Party, which breach remains uncured for
        sixty (60) days from receipt of the written notice of breach. Gene Logic
        will not initiate any legal action based on any material breach alleged
        by Incyte for a period of seventy five (75) days after its receipt of
        notice of breach from Incyte. Incyte will not initiate any legal action
        based on any material breach alleged by Gene Logic for a period of
        seventy five (75) days after its receipt of notice of breach from Gene
        Logic. This Agreement may also be terminated by Incyte if Gene Logic,
        Gene Logic's Affiliates, or an entity acquiring Gene Logic infringes any
        of the Layton Patents outside the scope of the Layton Field of Use
        Activities, or induces End Users to infringe any of the Layton Patents.
        If Gene Logic disputes any claim by Incyte that Gene Logic has
        materially breached this Agreement, and if a court subsequently
        determines that Gene Logic materially breached this Agreement, then the
        license granted under this Agreement shall terminate, and Gene Logic
        shall immediately pay Incyte liquidated damages in the amount of . . .
        *** . . . dollars ($. . . *** . . .), in addition to any other remedies
        available to Incyte at law or in equity. If Gene Logic disputes any
        claim by Incyte that Gene Logic has materially breached this Agreement,
        and if a court subsequently determines that Gene Logic has not
        materially breached this Agreement or if Gene Logic claims that Incyte
        has materially breached this Agreement and Incyte disputes same, and a
        court subsequently determines that Incyte has materially breached this
        Agreement, then the licenses granted under this Agreement shall remain
        in effect pursuant to the terms of this Agreement, and Incyte shall
        immediately pay Gene Logic . . . *** . . . dollars ($. . . *** . .
        .), in addition to any other remedies available to Gene Logic at law or
        inequity. If Gene Logic claims that Incyte has materially breached this
        Agreement and Incyte disputes same, and a Court subsequently determines
        that Incyte has not materially breached this Agreement,

*** CONFIDENTIAL TREATMENT REQUESTED

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        then Gene Logic shall immediately pay Incyte . . . *** . . . dollars
        ($. . . *** . . .)in addition to any other remedies available to
        Incyte at law or equity.

9.3     EFFECTS OF TERMINATION. No termination of this Agreement shall in any
        way affect Gene Logic's obligations pursuant to Article 3 to pay the
        amounts specified prior to such termination of this Agreement.
        Furthermore, no termination of this Agreement shall in any way affect
        (i) the obligations of Gene Logic under Sections 4.5, 4.6 and 4.7 if
        this Agreement is terminated based on a material breach by Gene Logic,
        or (ii) the Parties' respective obligations under Articles 6, 10 and 11.

                                   ARTICLE 10
                                 INDEMNIFICATION

10.1    INDEMNIFICATION BY GENE LOGIC. Gene Logic shall defend, indemnify and
        hold Incyte its directors, officers and employees (each an "Incyte
        Indemnified Party") harmless from all losses, liabilities, damages and
        expenses, including reasonable attorneys' fees and costs (collectively,
        a "Liability") which the Incyte Indemnified Party may incur, suffer or
        be required to pay resulting from or arising in connection with any
        claims, demands, actions or other proceedings by any Third Party based
        upon (a) any breach of any representation, warranty or covenant of Gene
        Logic under this Agreement, or (b) any use by or on behalf of Gene Logic
        of the Licensed Patents. Notwithstanding the foregoing, Gene Logic shall
        have no obligation under this Agreement to indemnify, defend or hold
        harmless any Incyte Indemnified Party with respect to claims, demands,
        costs or judgments which result from willful misconduct or negligent
        acts or omissions of Incyte, its affiliates, or any of their respective
        employees, officers, directors or agents.

10.2    INDEMNIFICATION BY INCYTE. Incyte shall defend, indemnify and hold Gene
        Logic, its Affiliates and each or their respective directors, officers
        and employees ( each an "Gene Logic Indemnified Party") harmless from
        any and all Liabilities which the Gene Logic Indemnified Party may
        incur, suffer or be required to pay resulting from or arising in
        connection with any claims, demands, actions or other proceedings by any
        Third Party based upon any breach of any representation, warranty or
        covenant of Incyte under this Agreement. Notwithstanding the foregoing,
        Incyte shall have no obligation under this Agreement to indemnify,
        defend or hold harmless any Gene Logic Indemnified Party with respect to
        claims, demands, costs or judgments which result from willful misconduct
        or negligent acts or omissions of Gene Logic, its Affiliates, or any of
        their respective employees, officers, directors or agents.

10.3    CONDITIONS TO INDEMNIFICATION. The obligations of the indemnifying Party
        under Sections 10.1 and 10.2 are conditioned upon the delivery of
        written notice to the indemnifying Party of any potential Liability
        promptly after the indemnified Party becomes aware of such potential
        Liability. The indemnifying Party shall have the right to assume the
        defense of any suit or claim related to the Liability if it has assumed
        responsibility for the suit or claim in writing; however,

*** CONFIDENTIAL TREATMENT REQUESTED

                                       11
<PAGE>

        if in the reasonable judgment of the indemnified Party, such suit or
        claim involves an issue or matter which could have a materially adverse
        effect on the business operations or assets of the indemnified Party,
        the indemnified Party may waive its rights to indemnity under this
        Agreement and control the defense or settlement thereof, but in no event
        shall any such waiver be construed as a waiver of any indemnification
        rights such Party may have at law or in equity. If the indemnifying
        Party defends the suit or claim, the indemnified Party may participate
        in (but not control) the defense thereof at its sole cost and expense.

10.4    SETTLEMENTS. Neither Party may settle a claim or action related to a
        Liability without the consent of the other Party, if such settlement
        would impose any monetary obligation on the other Party or require the
        other Party to submit to an injunction or otherwise limit the other
        Party's rights under this Agreement. Any payment made by a Party to
        settle any such claim or action shall be at its own cost and expense.

                                   ARTICLE 11
                                  MISCELLANEOUS

11.1    WAIVER. No failure or delay on the part of either Party to exercise any
        right or remedy under this Agreement shall be construed or operate as a
        waiver thereof, nor shall any single or partial exercise of any right or
        remedy preclude the further exercise of such right or remedy.

11.2    INDEPENDENT CONTRACTORS. It is understood that both Parties hereto are
        independent contractors and are engaged in the operation of their own
        respective businesses, and neither Party hereto is to be considered the
        agent or partner of the other Party for any purpose whatsoever. Neither
        Party has any authority to enter into any contracts or assume any
        obligations for the other Party or make any warranties or
        representations on behalf of the other Party. Neither Party shall act or
        describe itself as the agent of the other, nor shall it make or
        represent that it has authority to make any commitments on the other's
        behalf.

11.3    NOTICES. Any consent, notice or report required or permitted to be given
        or made under this Agreement by one of the Parties hereto to the other
        Party shall be in writing, sent to such other Party at its address and
        fax number indicated below, or to such other address as the addressee
        shall have last furnished in writing to the addresser, and shall be
        effective upon receipt by the addressee.

                                       12
<PAGE>

If to Incyte:               Incyte Genomics, Inc.
                            3174 Porter Drive
                            Palo Alto, California 94303
                            Attention: Lee Bendekgey, General Counsel
                            Fax: 650-845-4166

If to Gene Logic:           Gene Logic Inc.
                            708 Quince Orchard Road
                            Gaithersburg, Maryland 20878
                            Attention: J. Barry Buzogany, Esq., General Counsel
                            Fax: 301-987-1863

11.4    ANNOUNCEMENTS; USE OF NAMES. Incyte and Gene Logic each intend to
        separately announce the existence of this Agreement promptly following
        its execution in the forms attached as Exhibit C, subject to prior
        mutual written approval of any such announcement, which approval will
        not be unreasonably withheld. Except as contemplated by the last
        sentence or as may otherwise be required by law or regulation, neither
        Party shall make any public announcement concerning this Agreement or
        the subject matter hereof without the prior written consent of the other
        Party. In particular, and subject to the terms of this Section 11.4,
        neither party shall make any public announcement or public disclosure
        about the nature and content of this Agreement beyond the scope of the
        statement attached as Exhibit C; and any failure of a party to abide by
        such restriction shall be considered a material breach of this
        Agreement. If this Agreement is determined to be material to the
        business of Incyte (or Gene Logic) so that its disclosure is required by
        law or regulation, Gene Logic ( or Incyte) shall have the right to
        review and comment on the text of the disclosure prior to its release to
        the public or the filing with any government agency and the Party making
        such disclosure or filing agrees, at its own expense, to seek
        confidential treatment of those portions of this Agreement or such
        terms, as may be reasonably requested by the other Party.

11.5    PATENT MARKINGS AND LABELS. Gene Logic agrees to mark any database,
        other product or service of Gene Logic that is subject to this
        Agreement, with appropriate patent notices with respect to the Licensed
        Patents as may be reasonably requested by Incyte.

11.6    ENTIRE AGREEMENT. This Agreement sets out the entire agreement and
        understanding between the Parties relating to its subject matter and
        supersedes all prior oral or written representations, agreements,
        arrangements or understandings between them relating to such subject
        matter.

11.7    ASSIGNMENT BY GENE LOGIC. Gene Logic shall not directly or indirectly
        assign or otherwise transfer any of its rights or obligations under this
        Agreement, in whole or in part, whether voluntarily, by operation of law
        or otherwise, to any Third Party without Incyte's prior written consent.
        Notwithstanding the foregoing, Gene Logic may, without Incyte's consent,
        assign its rights and

                                       13
<PAGE>

        obligations hereunder to a successor to substantially all of the
        business of Gene Logic, other than the entities listed below, whether in
        a merger, sale of stock, sale of assets or other transaction, provided
        that the licenses granted under this Agreement shall apply only to the
        continued operation of Gene Logic's business as conducted prior to the
        closing of such merger, sale of stock, sale of assets or other
        transaction, and to no other activities of the successor entity, and
        provided that the terms of Sections 4.3 and 4.4 shall be of no force or
        effect if this Agreement is assigned or transferred to such successor
        entity. Under no circumstances will Gene Logic have the right to assign
        any rights under this Agreement to any individual or corporate entity
        which is involved in litigation concerning the Licensed Patents or has
        threatened in writing Incyte or Incyte's affiliates or any entity
        acquiring Incyte with litigation concerning the Licensed Patents. In
        addition, under no circumstances shall Gene Logic have the right to
        assign any rights or obligations under this Agreement to Affymetrix,
        Perlegen or Applera. Any purported assignment or transfer in violation
        of this Section 11.7 shall be void.

11.8    ASSIGNMENT BY INCYTE. Incyte may directly or indirectly assign or
        otherwise transfer any of its rights or obligations under this
        Agreement, in whole or in part, whether voluntarily, by operation of law
        or otherwise, to any Third Party without Gene Logic's consent.

11.9    GOVERNING LAW. This Agreement shall be governed by and construed in
        accordance with the local laws of the State of California, USA, without
        regard to the conflicts of law principles thereof.

11.10   PARTIAL INVALIDITY. If and to the extent that any court or tribunal of
        competent jurisdiction holds any of the terms or provisions of this
        Agreement, or the application thereof to any circumstances, to be
        invalid or unenforceable in a final nonappealable order, the Parties
        shall use their best efforts to reform the portions of this Agreement
        declared invalid to realize the intent of the Parties as fully as
        practicable, and the remainder of this Agreement and the application of
        such invalid term or provision to circumstances other than those as to
        which it is held invalid or unenforceable shall not be affected thereby,
        and each of the remaining terms and provisions of this Agreement shall
        remain valid and enforceable to the fullest extent of the law.

11.11   HEADINGS. The headings appearing herein have been inserted solely for
        the convenience of the Parties hereto and shall not affect the
        construction, meaning or interpretation of this Agreement or any of its
        terms and conditions.

11.12   FORCE MAJEURE. No failure or omission by the Parties hereto in the
        performance of any obligation of this Agreement (other than non-payment)
        shall be deemed a breach of this Agreement nor shall it create any
        liability if the same shall arise from any cause or causes beyond the
        reasonable control of the affected Party, including, but not limited to,
        the following, which for purposes of this Agreement shall be regarded as
        beyond the control of the Party in question: acts of nature;

                                       14
<PAGE>

        acts or omissions of any government; any rules, regulations, or orders
        issued by any governmental authority or by any officer, department,
        agency or instrumentality thereof; fire; storm; flood; earthquake;
        plague of epic proportion; accident; war; rebellion; insurrection; riot;
        invasion; strikes; and labor lockouts; provided that the Party so
        affected shall use its reasonable efforts to avoid or remove such causes
        of nonperformance and shall continue performance hereunder with the
        utmost dispatch whenever such causes are removed.

11.13   AMENDMENTS. No amendment, change, modification or alteration of the
        terms and conditions of this Agreement shall be binding upon either
        Party unless in writing and signed by the Party to be charged.

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

IN WITNESS WHEREOF, the Parties have executed this agreement as of the date
first set forth above.

GENE LOGIC, INC.

Signature:   /s/ Mark D. Gessler
          ------------------------------
             Mark D. Gessler
             President and Chief Executive Officer

INCYTE GENOMICS, INC.

Signature:   /s/ Lee Bendekgey
          ------------------------------
             Lee Bendekgey
             Exec Vice President, Corporate Secretary

                                       15
<PAGE>

                                LIST OF EXHIBITS

EXHIBIT A--STIPULATION AND [PROPOSED] ORDER OF DISMISSAL OF THE ACTIONS

EXHIBIT B--LIST OF DOCUMENTS AND DEPOSITION TRANSCRIPTS

EXHIBIT C--PRESS RELEASE

                                       16exv10w81a

 

EXHIBIT 81a

THIRD AMENDMENT TO LEASE AGREEMENT

     THIS THIRD AMENDMENT TO LEASE AGREEMENT (this “Amendment”) is made as of
October 13, 2003, by and between OXBRIDGE DEVELOPMENT AT CROWN POINTE II, L.C.,
a Maryland limited liability company, as assignee of Oxbridge Development at
Crown Pointe, L.C., a Maryland limited liability company (“Landlord”), and
TherImmune Research Corporation, formerly known as GLA II CORP., a Delaware
corporation, successor in interest to TherImmune Research Corporation, a
Maryland corporation (“Tenant”).

R E C I T A L S :

     Recital 1. Landlord and Tenant are parties to a Lease Agreement dated
June 22, 2001, as amended by a First Amendment to Lease Agreement dated
September 25, 2001 and by a Second Amendment to Lease Agreement (the “Second
Amendment”) dated January 2003 (as so amended, the “Lease”), pursuant to which
Landlord has leased to Tenant certain premises, consisting of approximately
eighteen thousand five hundred ninety-two (18,592) rentable square feet of
space, located on the first floor of the building located at 610 Professional
Drive, Gaithersburg, Maryland 20879 (the “Building”) and more particularly
described in the Lease (the “Existing Space”).

     Recital 2. Landlord and Tenant desire to modify the Lease to provide for
the lease by Landlord to Tenant of certain additional space located on the
first floor of the Building, and to otherwise modify the Lease in accordance
with the terms, covenants and conditions more particularly set forth below.

     NOW THEREFORE, in consideration of the mutual covenants set forth herein
and other good and valuable consideration, the receipt and sufficiency of which
the parties acknowledge, Landlord and Tenant agree as follows:

     1.     Recitals; Defined Terms. The above Recitals are incorporated by
reference in this Amendment as if fully set forth herein. Unless otherwise
defined in this Amendment, all defined terms utilized herein shall have the
meanings set forth for them in the Lease.

     2.     Building Measurement. The definition of “Building” as set forth in
Section 1.1 of the Lease shall be revised to provide that the Building contains
approximately 58,897 rentable square feet of space.

     3. Additional Space. On the date of full execution of this Amendment,
Landlord shall deliver the Additional Space (hereinafter defined) to Tenant,
free and clear of all occupancies, and otherwise in the condition required
hereunder (including, without limitation, with all Base Building Improvements
complete), for the purpose of designing and constructing the Tenant Work as
defined in, and subject to, the provisions contained in Exhibit “B”
(hereinafter defined) (and Landlord hereby grants to Tenant the right to occupy
the Additional Space for such purpose). As of January 1, 2004 (the “Additional
Space Commencement Date”), there shall be added to the Premises and the
Premises shall include (in addition to the Existing Space) approximately Nine
Thousand Eight Hundred Sixteen (9,816) rentable square feet of space located on
the first floor of the Building as shown on the drawing attached to this
Amendment as Exhibit “A-1” and made a part hereof (the “Additional Space”);
provided, however, that the Additional Space Commencement Date shall be delayed
on a day-for-day basis in the event (i) of any delay caused primarily by
Landlord or any of its agents, employees or contractors in the completion of
the Landlord Item or the Base Building Improvements (as defined in Exhibit
“B”), or (ii) that Tenant is delayed in obtaining either a building permit for,
or an inspection of, the Tenant Work (as defined in Exhibit “B”) or a
certificate of occupancy for the Additional Space, and in each such instance
such delay would not have occurred but for a violation of the applicable
building code or any other applicable law, rule or regulation, (A) within the
Building, but outside of the Premises, or (B) if caused by Landlord, within the
Premises. Both the Existing Space and the Additional Space are as shown on the
drawing attached to and made a part of this Amendment as Exhibit “A”.

1

 

The exact area of the Additional Space has been measured and confirmed by
the parties using the Building Owners and Managers Association International
Standard Method for Measuring Floor Space in Office Buildings (1996), and the
parties stipulate that for all purposes under the Lease the Additional Space
consists of Nine Thousand Eight Hundred Sixteen (9,816) rentable square feet of
space. From and after the Additional Space Commencement Date, all references
in the Lease to the “Premises” shall mean the Existing Space and the Additional
Space, for a total rentable area of approximately twenty-eight thousand four
hundred eight (28,408) rentable square feet. Exhibit “A” to the Lease, as
modified by the Second Amendment is hereby deleted and replaced by the Exhibit
“A” referenced above.

     4.     Early Occupancy of Additional Space. Tenant may occupy the Additional
Space for the conduct of its business prior to the Additional Space
Commencement Date upon completing construction of the Tenant Work, it being
understood and agreed that all provisions of the Lease except for the
obligation to pay Additional Space Basic Rent (hereinafter defined) shall apply
to such early occupancy and that payment of Additional Space Basic Rent shall
commence on the Additional Space Commencement Date (subject to any applicable
rent abatement specified below ), whether Tenant occupies the Additional Space
for the conduct of its business before or after such date.

     5.     Expiration Date. Section 1.6 of the Lease, as modified by Paragraph 4
of the Second Amendment, is further modified to provide that the Term of the
Lease for the Premises shall expire on December 31, 2013, as such date may be
extended pursuant to Section 4.2 of the Lease (the “Expiration Date”). It is
the intent of Landlord and Tenant that the Term shall be coterminous as to both
the Existing Space and the Additional Space.

     6.     Rent. Notwithstanding the provisions of Paragraph 5 of the Second
Amendment to the contrary, provided that no Event of Default by Tenant occurs
during the First Full Abatement Period (hereinafter defined), Basic Rent for
10,869 rentable square feet of the Existing Space (which by the Second
Amendment had previously been reduced by fifty percent (50%) to the amount of
Eleven Thousand Three Hundred Twenty-One Dollars and Eighty-Seven Cents
($11,321.87) per month) shall abate in full during the five (5)-month period
between August 1, 2003, and December 31, 2003 (the “First Full Abatement
Period”) (for a total abatement of Fifty-Six Thousand Six Hundred Nine Dollars
and Thirty-Five Cents ($56,609.35)). Landlord shall credit to the first
monthly installments of Basic Rent hereafter payable by Tenant under the Lease
the aggregate amount of Thirty-Three Thousand Nine Hundred Sixty-Five and
61/100 Dollars ($33,965.61), which credit represents the total monthly
installments of Basic Rent which were paid by Tenant for the months of August,
September and October, 2003 on account of such 10,869 rentable square feet.
For the period beginning on the Additional Space Commencement Date and ending
on the first (1st) anniversary thereof, in addition to Tenant’s obligation to
pay Basic Rent for the Existing Space under Section 1.7 of the Lease, as
modified by Paragraph 5 of the Second Amendment, commencing on the Additional
Space Commencement Date Tenant shall pay as annual Basic Rent for the
Additional Space, Twenty-Two and 60/100 Dollars ($22.60) for each rentable
square foot contained in the Additional Space (equal to a total of Two Hundred
Twenty-One Thousand Eight Hundred Forty-One and 60/100 Dollars ($221,841.60),
payable in equal monthly installments of Eighteen Thousand Four Hundred
Eighty-Six and 80/100 Dollars ($18,486.80) each) (“Additional Space Basic
Rent”). Each one (1)-year period commencing on the Additional Space
Commencement Date or any anniversary thereof shall be a “Third Amendment Lease
Year.” If Tenant elects to receive the Additional Allowance (as defined and
provided for in Exhibit “B”), annual Additional Space Basic Rent during the
last nine (9) Lease Years of the initial Term shall increase by an amount equal
to the amount calculated by amortizing the total amount of the Additional
Allowance plus interest at the rate of ten percent (10%) per annum over nine
(9) years in one hundred eight (108) equal monthly installments of principal
and interest (“Amortization Basic Rent”). On each anniversary of the Additional
Space Commencement Date during the Term the Additional Space Basic Rent
(excluding any Amortization Basic Rent included therein) shall increase by an
amount equal to two and five tenths percent (2.5%) of the annual Additional
Space Basic Rent in effect during the

2

 

preceding twelve (12)-month period. Notwithstanding the foregoing,
provided that no Event of Default by Tenant has theretofore occurred, the
Additional Space Basic Rent (excluding any Amortization Basic Rent included
therein) shall abate in full during the first six (6) months following the
Additional Space Commencement Date.

     7.     Additional Space Expense Stop. A new Section 1.11A is added to the
Lease, providing as follows:

	 	 	“1.11A Additional Space Expense Stop. Actual Operating Expenses
for the year ending December 31, 2004 (the “Additional Space Base
Year”), grossed up to reflect ninety-five percent (95%) occupancy
within the entire Building during the entire Additional Space Base
Year. Landlord will deliver a reasonably itemized statement to
Tenant on or before March 1, 2005, setting forth the actual amount
of the Additional Space Expense Stop (“Additional Space Expense
Stop Statement”). ”

     8.     Tenant’s Address. Tenant’s address, as set forth in Section 1.18 of
the Lease, is hereby amended to read as follows, “TherImmune Research
Corporation, c/o Gene Logic Inc., 610 Professional Drive, Gaithersburg,
Maryland 20879, Attn: Dudley Staples, Esquire. Copies to Venable LLP,
575 7th
Street, N.W., Washington, D. C. 20004, Attn: Ariel Vannier, Esquire.”

     9.     Common Area. Notwithstanding anything in the Lease to the contrary,
including, without limitation, Section 2.7 thereof, in no event shall Landlord
have the right to modify the Common Areas of the Building or the Land so as to
materially interfere with Tenant’s use and/or quiet enjoyment of the Premises
and/or the Common Areas. Section 2.7 of the Lease is hereby modified such that
the definition of Common Areas shall include any elevators in the Building.

     10.     Renewal Option. The Renewal Option provided pursuant to Section 4.2
of the Lease shall apply to the entire Premises, including the Additional
Space, and Tenant may exercise its Renewal Option as to the entire Premises
only. Notwithstanding anything in the Lease to the contrary, Tenant shall have
the right, to be exercised by written notice delivered to Landlord within ten
(10) business days following the determination of the Basic Rent payable during
the Renewal Period, to withdraw its exercise of the Renewal Option.

     11.     Additional Rent. The first sentence of Section 7.1 of the Lease, as
modified by Paragraph 7 of the Second Amendment, is hereby deleted in its
entirety, and the following language is substituted therefor: “During the
period commencing on May 1, 2003, and expiring on April 30, 2004, Tenant shall
pay to Landlord, as Additional Rent, twelve and six tenths percent (12.6%) of
the amount by which the Operating Expenses incurred during each Calendar Year
exceed the amount of the Expense Stop and during the Lease Year commencing on
May 1, 2004, and during each Lease Year of the Term thereafter, Tenant shall
pay to Landlord, as Additional Rent, Tenant’s Proportionate Share (i.e., thirty
one and six tenths percent (31.6%)) of the amount by which the Operating
Expenses incurred during each Calendar Year exceed the amount of the Expense
Stop (“Tenant’s Share of Operating Expenses”).”

In addition to Tenant’s obligations under Section 7.1 of the Lease, as modified
by Paragraph 7 of the Second Amendment and as further modified above,
commencing one year after the Additional Space Commencement Date, Tenant shall
pay to Landlord, as Additional Rent for the Additional Space, sixteen and seven
tenths (16.7%) (“Additional Space Share”) of the amount by which the Operating
Expenses incurred by Landlord during each Calendar Year during the Term exceed
the Operating Expenses incurred by Landlord during the Additional Space Base
Year. Notwithstanding anything in the Lease to the contrary, to the extent
Landlord’s Controllable Costs (hereinafter defined) in any Calendar Year are
more than one hundred five percent (105%) of the amount of such costs incurred
during the prior Calendar Year, Tenant shall not be obligated to pay Tenant’s
Additional Space Share of such excess. As used herein “Controllable Costs”
means Operating Expenses that Landlord can reasonably control, including,
without

3

 

limitation as trash removal, elevator maintenance and service contracts, and
excluding the cost of security systems, taxes, insurance premiums, utilities
and snow and ice removal.

     12.     Parking Space Allocation. Section 1.14 of the Lease, as modified by
Paragraph 8 of the Second Amendment, and Section 9.1 of the Lease are each
modified to provide that the total number of parking spaces allocated to the
Premises (including the Additional Space) as of the Additional Space
Commencement Date shall be one hundred five (105), of which ten (10) shall be
marked reserved spaces and the remainder of which shall be unreserved. Such
reserved and unreserved spaces shall be in the locations depicted on the
attached Exhibit “C”, incorporated herein by reference. Landlord and Tenant
hereby acknowledge and agree that for so long as Tenant leases Building I in
its entirety, in addition to the one hundred five (105) parking spaces provided
herein, Tenant, at its option and at its own cost and expense, shall be
permitted to stripe the paved area behind Building I currently being used as a
truck loading area (also shown on Exhibit “C”) so as to add additional parking
spaces to Tenant’s parking space allocation for Tenant’s exclusive use.
Promptly following the execution of this Amendment, Landlord will cause the
owner of Building I to enter into, and Tenant will enter into, an amendment to
the Tenant’s lease for Building I providing for the parking rights described in
the previous sentence. Landlord shall have no obligation to enforce the
reservation of spaces or Tenant’s right to the exclusive use of the spaces
behind Building I, which enforcement shall be Tenant’s responsibility at
Tenant’s sole cost; however, Landlord shall cooperate with Tenant upon written
request by Tenant in Tenant’s efforts to resolve any unauthorized use of any
spaces allocated to Tenant in this Paragraph 12 provided such cooperation does
not result in any out-of-pocket cost or expense to Landlord. In the event that
Landlord enters into leases with other tenants for space in the Building which
provide for a greater responsibility on the part of Landlord with respect to
enforcement of parking rights, Landlord and Tenant will promptly enter into an
amendment to this Lease, whereby Landlord assumes the same responsibility with
respect to Tenant’s parking spaces. Notwithstanding anything in the Lease to
the contrary, Landlord shall not have the right to relocate the reserved spaces
or the area provided for Tenant’s use for unreserved parking without Tenant’s
prior written consent, which consent shall not be unreasonably withheld.

     13.     Operating Expenses. The following language replaces the second
sentence of Section 7.2 of the Lease: “The Operating Expenses attributable to
the Premises that vary with occupancy and that are attributable to any part of
the Term will be adjusted by Landlord to the amount that Landlord reasonably
believes Landlord would have incurred if 95% of the rentable area of the
Building had been occupied.” In addition, the following sentence shall be
added after the second sentence of Section 7.6 of the Lease, “Within thirty
(30) days of the expiration or termination of this Lease, Landlord shall pay to
Tenant any such unused credit provided no Event of Default shall exist.”

     14. Audit Rights. Section 7.7 of the Lease is hereby deleted in its
entirety and replaced with the following: “Tenant or its agent shall have the
right for a period of ninety (90) days after Tenant’s receipt of each of (i)
the statement of actual Operating Expenses for each Calendar Year and (ii) the
Additional Space Expense Stop Statement, and upon giving reasonable notice to
Landlord and during normal business hours, to audit, review and inspect at
Landlord’s offices Landlord’s bills, invoices and records applicable to the
actual Operating Expenses for that particular Calendar Year or the Additional
Space Base Year, as the case may be, to verify Operating Expenses of such
Calendar Year or the Additional Space Base Year, as the case may be. In
addition to the foregoing, Tenant or its agent shall have the right for a
period of thirty (30) days after Tenant’s receipt of Landlord’s reasonably
itemized statement setting forth the actual amount of the Expense Stop (which
Landlord and Tenant agree may be given by Landlord on or before October 31,
2003), and upon giving reasonable notice to Landlord and during normal business
hours, to audit, review and inspect at Landlord’s offices Landlord’s bills,
invoices and records applicable to Landlord’s calculation of the Expense Stop.
Unless otherwise mutually agreed, should such audit, review or inspection
result in a dispute by Tenant as to the Operating Expenses, the Expense Stop or
the Additional Space Expense Stop charged by Landlord, as the case may be, such
dispute shall be determined by arbitration, in the jurisdiction in which the
Building is located, in accordance with the then current

4

 

commercial rules of the American Arbitration Association. The costs of the
arbitration shall be divided equally between Landlord and Tenant, except that
each party shall bear the cost of its own legal fees, unless (i) the
arbitration results in a determination that Landlord’s statement contained a
discrepancy of less than five percent (5%) in Landlord’s favor, in which event
Tenant shall bear all costs incurred in connection with such arbitration,
including, without limitation, reasonable legal fees, or (ii) the arbitration
results in a determination that Landlord’s statement contained a discrepancy of
at least five percent (5%) in Landlord’s favor, in which event Landlord shall
bear all costs incurred in connection with such arbitration, including, without
limitation, reasonable legal fees. If such review, audit or inspection reveals
that Landlord overstated Tenant’s obligation for Operating Expenses in any
Calendar Year, the excess shall be credited against Tenant’s next monthly
payments of Operating Expenses. Within thirty (30) days of the expiration or
termination of this Lease, Landlord shall pay to Tenant any such unused credit
provided no Event of Default shall exist. If such review, audit or inspection
reveals that Landlord understated Tenant’s obligation for Operating Expenses in
any Calendar Year, Tenant shall pay the total amount of such deficiency to
Landlord within thirty (30) days after such determination. If such review,
audit or inspection reveals that Landlord misstated the Expense Stop and/or the
Additional Space Expense Stop, then either or both, as the case may be, shall
be adjusted to the amount so determined. During the pendency of any audit or
arbitration proceedings as provided for in this Section, Tenant shall continue
to make payments of Operating Expenses as required by this Lease.

     15.     Direct Costs. The last sentence of Section 7.8 of the Lease is
deleted in its entirety and replaced with the following language:

	 	 	“Subject to Tenant’s right to file an application for abatement
thereof and to contest same, Tenant shall be liable for, and shall
timely pay, all taxes levied against personal property and trade
fixtures placed by Tenant in the Building. Tenant shall have the
right, at Tenant’s sole cost and expense, to file an abatement for
any such personal property taxes or to contest any such taxes in
Tenant’s own name provided that: (i) such actions are performed at
no expense to Landlord, (ii) such actions do not result in an
increase in Landlord’s real estate taxes or personal property
taxes, and (iii) Tenant holds Landlord harmless from any damages
or losses resulting from such actions.”

     16.     Real Property Taxes.

          (a) Notwithstanding anything in Section 8.1 of the Lease to the contrary
at such time as Tenant may lease at least eighty-five percent (85%) of the
rentable area of the Building, Tenant shall have the right to appeal the
assessment value of the Building Parcel (hereinafter defined). In addition, in
any event, Tenant shall have the right to apply for an abatement of Real Estate
Taxes, under any governmental incentives regarding the leasing of the Premises,
including, without limitation, the “Miller Tax Abatement Program”, or any other
tax incentives under the laws of Montgomery County, Maryland or the State of
Maryland. Landlord agrees to cooperate with Tenant, at no out of pocket cost
to Landlord, in any attempt by Tenant in any such contest or abatement under
any such incentive program. Tenant shall receive the entire benefit of any
such incentives obtained by Tenant.

          (b) The sentence in Section 8.1 of the Lease reading, “Real Estate Taxes
shall specifically exclude any abatements, reductions or credits received by
Landlord” is hereby deleted in its entirety and replaced with the following
language, “Real Estate Taxes shall be reduced by the amount of any abatements,
reductions or credits received by Landlord relating to tax fiscal years
occurring during the Term of the Lease, whether obtained by Landlord or Tenant
or otherwise.”

          (c) Section 8.1 of the Lease shall be modified by deleting the following
sentence in its entirety: “Notwithstanding the foregoing, Landlord shall have
no obligation to challenge Real Estate Taxes.” and substituting therefor the
following language: “Landlord shall have no obligation to appeal the assessment
value of the

5

 

Building and the land on which the Building is located (collectively,
“Building Parcel”), except that if Tenant, while Tenant, is leasing less than
eighty-five percent (85%) of the rentable area of the Building, after
reasonable investigation at its sole cost, is of the opinion that the
assessment value of the Building Parcel for any tax fiscal year during the Term
is too high, Tenant may, by written notice delivered to Landlord accompanied by
the written results of such investigation, request that Landlord appeal such
assessment value. Upon receipt of such written notice, unless Landlord
reasonably concludes that there is a significant risk that such an appeal could
result in an increase in the assessment value of the Building Parcel or
otherwise would not be successful, Landlord shall timely file and diligently
prosecute an appeal of such assessment value, which appeal shall be made at
Tenant’s sole cost and expense. Tenant will cooperate with Landlord in the
preparation and prosecution of any such appeal and shall reimburse Landlord’s
costs for the same within thirty (30) days following any written request from
Landlord. Landlord shall have no obligation to appeal any adverse decision
relating to such appeal made by the Property Tax Assessment Appeal Board.”

          (d) Provided that no Event of Default shall then exist, Landlord shall pay
any amount payable by Landlord to Tenant pursuant to Section 8.1 of the Lease
within thirty (30) days following Landlord’s receipt of any such refund.

          (e) Section 1.11 of the Lease, as amended and replaced by Paragraph 6 of
the Second Amendment, shall be modified by inserting after “Operating Expenses”
the words: “(including, without limitation, Real Estate Taxes)”.

          (f) The first paragraph of Section 7.2 of the Lease, in the 5th line from
the end, shall be modified by inserting after “tenants” the words:
“(including, without limitation, Real Estate Taxes)”.

          (g) Landlord shall promptly provide Tenant with a copy of all notices
received by Landlord of tax assessments relating to the Building Parcel.

     17.     Right of First Refusal for Expansion Space.

          (a) Section 3.4 of the Lease is deleted in its entirety and there is
substituted therefor the following:

	 	 	“3.4 Right of First Refusal for Expansion Space. Provided that no
Event of Default by Tenant has occurred and the then net worth of
Gene Logic Inc., a Delaware corporation (“GLI”) as shown on its
consolidated financial statements is not less than the lesser of
(i) Thirty Million and 00/100 Dollars ($30,000,000) and (ii) the
net worth of the prospective tenant making any Offer (hereinafter
defined), Tenant shall have an ongoing right of first refusal to
lease additional space on the second floor of the Building (other
than the space shown crosshatched on Exhibit “A-2” attached to
this Lease and made a part hereof) (“Expansion Space”), upon the
terms set forth in this Section 3.4. If Landlord is willing to
accept any bona fide written offer to lease any of the Expansion
Space (“Offer”), Landlord shall furnish a true copy of the Offer
to Tenant. For a period of seven (7) business days from the
receipt of the Offer, Tenant shall have the exclusive right and
option, exercisable by delivery of written notice to Landlord
within such seven (7)-day period, to lease all of the Expansion
Space identified in the Offer at the same price, terms and
conditions as are set out in the Offer, except that (i) (A) if the
Offer is delivered to Tenant prior to December 31, 2006, the term
for which the Expansion Space is leased (“Expansion Space Term”)
shall be coterminous with the term of the Lease (expiring on the
Expiration Date) and (B) otherwise, the Expansion Space Term shall
be the lesser of (y) seven (7) years and (z) the term set forth in
the Offer and (ii) in the event the Expansion Space Term is for a
period other than the term set forth in the Offer, any tenant
improvement allowances, abatement of rent and other monetary
concessions set forth in the Offer shall be adjusted pro rata so
as to reflect

6

 

	 	 	the ratio which the Expansion Space Term bears to the term set
forth in the Offer; provided, however, that no such adjustment
shall result in any tenant improvement allowance for any Expansion
Space of less than Twenty-Five and 00/100 Dollars ($25.00) or more
than Thirty-Two and 50/100 Dollars ($32.50) per rentable square
foot of space contained in the Expansion Space. If Tenant timely
exercises its option, the parties shall promptly enter into an
amendment to this Lease whereby Tenant leases the Expansion Space
at the same time and upon the same terms and conditions as set
forth in the Offer, with the possible exceptions expressly
provided for above in this Section 3.4. If such option is not
timely exercised, Landlord shall be free to lease the Expansion
Space to the bona fide offeror, provided, however, that the lease
must be made substantially upon the terms and conditions set forth
in the Offer as furnished to Tenant (including, without
limitation, terms and conditions with respect to rent, rent
abatements, rent escalations and tenant improvement allowances).
If the lease to the offeror is not so consummated, such option
shall survive and Tenant’s right of first refusal shall remain in
effect with regard to any other offers covering the Expansion
Space. If any portion of the Expansion Space is ever leased to
Tenant or to a third party not related to Landlord, the space so
leased will thereupon cease being a part of the Expansion Space.

		
	 	     (b) Landlord hereby represents and warrants that as of the
date of this Third Amendment, Landlord has not entered into any
lease or occupancy agreement for any portion of the Expansion
Space.
	 
	 	     (c) Landlord hereby covenants and agrees that it shall not,
without the prior written consent of Tenant, knowingly lease space
(or grant any other occupancy rights) in the Building to any
organization having primary purposes which are substantially the
same as those of the organization known as People for the Ethical
Treatment of Animals (PETA).”

     18.     Security Deposit.

          (a) Within five (5) business days following the execution of this
Amendment, Tenant shall deliver to Landlord an additional security deposit in
the amount of Thirty-Six Thousand Nine Hundred Seventy-Three and 60/100 Dollars
($36,973.60) (the “Additional Space Deposit”). Tenant agrees that such
Additional Space Deposit may be commingled with Landlord’s other funds and is
not an advance payment of rental or a measure of Landlord’s damages in case of
an Event of Default by Tenant. So long as any Event of Default by Tenant shall
exist, Landlord may, from time to time, without prejudice to any other remedy
provided under the Lease or provided by law, use such Additional Space Deposit
to the extent necessary to make good any arrears of rentals and any other
damage, injury, expense or liability caused to Landlord by such Event of
Default, and Tenant shall pay to Landlord within ten (10) days of demand
therefore the amount so applied in order to restore the Additional Space
Deposit to its original amount. Any remaining balance of the Security Deposit
shall be returned to Tenant at the later of (i) thirty (30) days after the
Expiration Date or earlier termination of this Lease, or (ii) the fulfillment
of all of Tenant’s obligations under this Lease, including, without limitation,
the payment of all damages for which Tenant may be liable at law or in equity
under this Lease, following the Expiration Date or earlier termination of this
Lease.

          (b) Notwithstanding anything in Section 6.1 of the Lease to the contrary,
Tenant shall have the right (as elected by Tenant in its sole discretion) to
post all or any portion of the Security Deposit (hereinafter defined) by
delivering to Landlord (i) cash or (ii) one or more Letters of Credit in the
form required pursuant to the Lease, and to replace, from time-to-time, such
cash with Letter(s) of Credit (and vice versa).

          (c) Section 6.2 of the Lease is hereby deleted in its entirety and
replaced with the following language:

7

 

	 	 	“Notwithstanding anything contained in the Lease to the
contrary, Tenant’s Security Deposit, whether paid pursuant
to the Lease, or any amendment thereto, and including,
without limitation any deposit referred to as the
Additional Deposit, Additional Space Deposit or otherwise
(collectively, the “Security Deposit”), shall be reduced to
One Hundred Thirty Thousand Dollars ($130,000.00) on
November 15, 2005; provided that at such time no Event of
Default exists. In the event that the relevant portion of
the Security Deposit is in the form of a Letter of Credit,
such reduction shall be effectuated by Tenant’s obtaining
and furnishing to Landlord, as of the time for such
reduction, an amendment of the Letter of Credit
appropriately reducing the amount of the Letter of Credit.
In the event that the relevant portion of the Security
Deposit is in the form of cash or other immediately
available funds, such reduction shall be effectuated by
Landlord’s prompt delivery of such funds to Tenant. If
required by the issuer of the Letter of Credit, Landlord
shall confirm in writing its consent to such amendment,
provided that the conditions for reduction set forth above
are satisfied. Except as expressly provided in this
Article, the Security Deposit shall not be reduced.”

          (d) Section 6.3 of the Lease is hereby deleted in its entirety and shall
be of no further force and effect.

     19.     Operating Expenses. Notwithstanding anything in the Lease to the
contrary, in no event shall any costs or expenses with regard to any portion of
the Land other than the portion of the Land allocable to the Building be
included in the Operating Expenses payable pursuant to the Lease.

     20.     Additional Space Work Agreement. Paragraph 11 of the Second Amendment
and the “Additional Space Work Agreement” attached thereto are deleted in their
entireties and there is substituted therefor the “Additional Space Work
Agreement II” attached hereto as Exhibit “B” and made a part hereof.

     21.     Brokers. Landlord and Tenant each represent and warrant to the other
that it has not employed any broker, agent or finder except for TSC Realty
Services, LLC (“Landlord’s Broker”) and Scheer Partners, Inc. (“Tenant’s
Broker”) (together, the “Brokers”), which Brokers shall be paid commissions by
Landlord under a separate agreement. Landlord shall indemnify and hold Tenant
harmless, and Tenant shall indemnify and hold Landlord harmless, from and
against any claim for brokerage or other commission arising from or out of any
breach of the indemnitor’s representation and warranty. Landlord hereby
discloses that one or more of the members of Landlord are associated with
Landlord’s Broker, and that such individuals are licensed real estate persons
within the State of Maryland and have a pecuniary interest in both Landlord and
the Building.

     22.     Use; Legal Compliance. The third to the last sentence in Article 10
of the Lease is hereby modified by changing, “which has been noted in writing
by Tenant to Landlord within six (6) months after the earlier of the
Commencement Date or the date that Tenant has taken occupancy of the Premises”
to “which has been noted in writing by Tenant to Landlord prior to January 1,
2005”.

     23.     Assignment and Subletting; Consent. Section 11.1 of the Lease is
hereby deleted in its entirety and replaced with the following language:

	 	 	“Tenant shall have the right to assign or sublet the
Premises provided that Tenant obtains Landlord’s prior
written consent, which consent shall not be unreasonably
withheld, delayed or conditioned. If Tenant desires to
assign this Lease or sublet all or any part of the Premises,
Tenant shall notify Landlord in writing of such desire and
the notice shall set forth the name and address of the
proposed

8

 

	 	 	assignee or subtenant, the rent and all other sums to be
paid under the proposed assignment or sublease, and all
other material terms of the proposed assignment or sublease.
The notice shall be accompanied by a current financial
statement for the proposed assignee or subtenant prepared in
accordance with GAAP and certified as correct by the chief
financial officer or other authorized officer of the
proposed assignee or subtenant. In addition, Landlord shall
be entitled to review the documentation of the proposed
assignment or sublease. Tenant shall also furnish to
Landlord such additional information about the proposed
assignee or subtenant and its intended use of the Premises
as Landlord may reasonably request. Without limiting the
matters which Landlord may take into consideration in
determining whether to grant or deny its consent to the
proposed assignment or sublease, Landlord shall be deemed to
be reasonable in denying its consent (i) if the proposed
assignee or subtenant is not reputable or does not have a
previous record of honoring lease, credit, and other legal
obligations or does not have a tangible net worth reasonably
indicating that it is capable of satisfying its financial
obligations under this Lease or the proposed sublease, as
the case may be, in addition to its other liabilities, or
(ii) if the use intended to be made of the Premises by the
proposed assignee or subtenant, although in accordance with
the Permitted Use, would interfere with any of the other
uses being conducted in the Corporate Park or is not of a
character in keeping with a first class office/R&D center.
Provided that Tenant has provided Landlord with all of the
documentation required herein or further reasonably
requested by Landlord, Landlord shall be deemed to have
granted its consent to any such proposed subletting or
assignment in the event that Landlord has not responded to a
written request by Tenant, either granting or denying such
consent, within thirty (30) days of Tenant’s request
therefor. Upon an assignment by Tenant with the prior
written consent of Landlord (as provided above), of Tenant’s
entire right, title and interest in this Lease to an entity
which, in Landlord’s reasonable judgment has a
creditworthiness equal to or greater than that shown by the
then current consolidated financial statements of Gene Logic
Inc., a Delaware corporation (“GLI”), which is the Guarantor
of Tenant’s obligations under this Lease pursuant to that
certain Guaranty of Lease dated April 1, 2003, Tenant shall
be released from all obligations of the tenant under this
Lease, and GLI shall be released from all of its obligations
pursuant to the Guaranty, which obligations of Tenant and
GLI first accrue on after the date on which such assignment
occurs and is effective. Within fifteen (15) days after
written request by Landlord, Tenant shall pay to Landlord
the reasonable administrative and attorneys’ fees incurred
by Landlord in connection with Tenant’s request for
Landlord’s consent to any assignment or subletting, up to a
maximum of $1,000 for each such Tenant request. Any
permitted assignment or sublease shall be subject to all
terms of this Lease. In the event of a permitted assignment
or sublease of twenty percent (20%) or more of the rentable
area of the Building, other than a No Consent Transfer (as
defined below), Tenant shall pay to Landlord, as and when
received by Tenant, fifty percent (50%) of all rent and
additional rent paid to Tenant by the assignee or subtenant
in excess of the Rent payable by Tenant pursuant to this
Lease, after recovery by Tenant of any remodeling, move in
or other concession, brokerage and legal expenses incurred
by Tenant wi
th respect to such assignment or transfer. Any
assignment, transfer, encumbrance or subletting undertaken
without Landlord’s written consent (or deemed consent, as
provided above) shall be voidable by Landlord, and, at
Landlord’s election, constitute an Event of Default. Tenant
hereby assigns to Landlord the rent and additional rent due
from any

9

 

	 	 	subtenant, assignee or other occupant of the Premises and
hereby authorizes and directs each such subtenant, assignee
or other occupant to pay such rent or other sums directly to
Landlord; provided, however, that until the occurrence of an
Event of Default, Tenant shall have the license to continue
collecting such rent and other sums.”

     24.     Alterations. The first sentence of Section 13.2 of the Lease is
hereby deleted in its entirety and replaced with the following language:

	 	 	“Tenant have the right to make any Alterations to the
Premises, without the consent of Landlord, so long as such
Alterations do not (i) in each instance, result in
construction costs in excess of Thirty-Five Thousand
Dollars ($35,000), and (ii) affect the structure, roof,
foundation, exterior walls, or mechanical or sprinkler
systems of the Building or Premises (which Alterations
shall be referred to herein as “Permitted Alterations”).
Except for Permitted Alterations, Tenant shall not make or
permit any Alterations without the prior written consent of
Landlord.”

     25.     Removal of Alterations.

          (a) The first and second sentences of Section 13.3 of the Lease are hereby
deleted in their entireties and replaced with the following language:

	 	 	“All or any part of the Alterations (other than any
Permitted Alterations) made without the consent of
Landlord, shall, at Landlord’s option, either be removed by
Tenant at its expense before the expiration of the Term or
shall remain upon the Premises and shall be surrendered
therewith at the Expiration Date or earlier termination of
this Lease as the property of Landlord without disturbance,
molestation or injury. All or any part of the Alterations
made with the consent of Landlord, shall, at Landlord’s
option exercised at the time of approval of such
Alterations, either be removed by Tenant at its expense
before the expiration of the Term or shall remain upon the
Premises and shall be surrendered therewith at the
Expiration Date or earlier termination of this Lease as the
property of Landlord without disturbance, molestation or
injury. Notwithstanding anything contained in this Section
13.3 to the contrary, Tenant shall have the right to remove
any and all removable Alterations which constitute trade
fixtures and detachable furniture (including, without
limitation, Tenant’s removable furniture, trade fixtures,
removable audio/visual equipment, removable security and
telecommunications systems or any emergency generators
(including the related switching gear)) prior to the
Expiration Date or within ten (10) business days following
any earlier termination of this Lease and Tenant, at its
sole expense, shall repair any damage to the Premises or
the Building caused by such removal.”

          (b) The last sentence of Section 13.3 of the Lease is hereby
deleted in its entirety and replaced with the following language:

	 	 	“If Tenant fails to remove any Alterations which Landlord
has requested be removed and which Tenant is obligated
hereunder to remove, then Landlord may (but shall not be
obligated to) remove the same and the reasonable cost of
such removal and repair of any damage to the Premises
caused by the same shall be charged to and paid by Tenant
upon demand.”

10

 

          (c) The last sentence of Section 13.4 of the Lease is hereby
deleted in its entirety and replaced with the following language:

	 	 	“Landlord hereby reserves the right, from time to time, to
make Alterations to the Building, Common Area or Corporate
Park, erect other buildings and structures in the Corporate
Park, and erect such scaffolding and other aids to
construction in or adjacent to and about the Building as
Landlord reasonably deems appropriate; provided, however,
that Landlord hereby covenants and agrees that it shall
take commercially reasonable efforts to minimize any
interference during business hours (including, without
limitation preserving reasonable access for Tenant to the
Building and the Premises) with Tenant’s use and enjoyment
of the Premises as a result of any such activities (whether
conducted by or on behalf of Landlord or by other tenants
with Landlord’s permission). Notwithstanding anything
contained in the Lease to the contrary, in the event that
such activities materially interfere with Tenant’s use and
enjoyment of all or any portion of the Premises for more
than seven (7) consecutive business days, Tenant shall be
entitled to a pro rata (based on the portion of the
Premises affected) abatement in Rent and all other amounts
due hereunder until such interference ceases and Tenant is
able to commence using such portion of the Premises.”

          (d) Landlord hereby acknowledges and agrees that as of the date
hereof, Landlord has given any required consent to any Alterations to
the Premises made by or on behalf of Tenant provided that such
Alterations were made in accordance with plans dated October 31, 2001,
July 9, 2003 and July 14, 2003, approved by Landlord for such Tenant
Work, and has not requested the removal of any such Alteration
heretofore made by or on behalf of Tenant.

     26.     Building Sign. Subject to the terms and conditions of Section 14.2 of
the Lease, Tenant shall have the right to replace “Tenant’s Sign”, as defined
therein, with a sign displaying the “corporate logo” of GLI or of any other
affiliate of Tenant (as defined in Section 11.3 of the Lease). Notwithstanding
anything in Article XIV of the Lease to the contrary, Landlord hereby agrees
that Tenant shall have the right to install a Tenant’s Sign as set forth on
Exhibit “D”, attached hereto and incorporated herein by reference, which
Tenant’s Sign has been pre-approved by Landlord (the “Approved New Sign”).
Tenant shall thereafter, from time to time, be permitted to replace the
Approved New Sign with a sign of the same dimensions as the Approved New Sign,
subject to Landlord’s approval of the overall color, design and content of such
replacement signs, which approval shall not be unreasonably withheld,
conditioned or delayed. Each time that Tenant removes or replaces Tenant’s
Sign, Tenant shall be responsible, at its sole cost, for the cost of repairing
of all damage to, or defacing of, the Building resulting from the installation,
maintenance and removal of such Tenant’s Sign.

     27.     Rooftop Equipment. Section 15.3 of the Lease is hereby modified by
replacing the language, “one (1) antenna or satellite dish” with “two (2)
antennae or satellite dishes (or one (1) of each)”.

     28.     Insurance. Section 17.5(b) of the Lease is hereby deleted in its
entirety and replaced with the following language:

	 	 	“(b) Tenant’s property insurance shall name Landlord and
Landlord’s Mortgagee, or any successor or assign thereof that
Landlord shall designate in writing as loss payees, except with
respect to proceeds payable for loss or damage to Tenant’s
removable equipment, furniture, furnishings and other personal
property, any Alterations made by Tenant, Tenant’s Work and any
other improvements which Tenant is responsible to repair under
this Lease”

11

 

     29.     Electrical and Telecommunications Connections. Section 18.7 of the
Lease is hereby deleted in its entirety and replaced with the following:

	 	 	Provided that Tenant is leasing all of the rentable area of
Building I, at no cost to Tenant, Tenant shall have the
exclusive right to use all of the existing four inch (4")
diameter conduits connecting the Building and Building I
for electrical distribution and telecommunications and data
transmission. If Tenant is not leasing the entire rentable
area of Building I, at no cost to Tenant, Tenant shall have
the right in common with other tenants of the Building and
Building I (on a pro rata basis, based on the amount of
rentable square feet of space leased in the buildings in
the Corporate Park), to use the existing four inch (4")
diameter conduits connecting the Building and Building I
for electrical distribution and telecommunications and data
transmission. The parties hereto understand and
acknowledge that all conduits are being provided by
Landlord “as-is”, and that Landlord makes no
representations or warranties with respect to the condition
of said conduits or their suitability for Tenant’s intended
use thereof. Tenant shall have the right, but not the
obligation, to access, maintain and repair said conduits
upon reasonable prior notice to Landlord, provided that
such access, maintenance and repair is performed at
Tenant’s sole cost and expense and provided, further, that
Tenant fully and promptly restores the areas of the
Building and the Land which may be disturbed due to such
access, maintenance and/or repair. Promptly following
execution and delivery of this Amendment, Landlord shall
cause the owner of Building I to, and Tenant shall, enter
into an amendment to Tenant’s lease for space in Building I
so as to provide for the Tenant’s rights as set forth in
this Section 18.7.”

     30.     Liability of Landlord. The following language is added to the
beginning of the first sentence of Section 19.1 of the Lease: “Except as
otherwise provided in this Lease,”. In addition, subsection (vi) is hereby
deleted in its entirety from the first sentence of Section 19.1 of the Lease.
Finally, the “Damage Limit” in Section 19.1 of the Lease is hereby increased to
One Hundred Fifty Thousand Dollars ($150,000).

     31.     The word “Building” is deleted and replaced by the word “Premises” in
the following places in the Lease: the last sentence of Section 18.3 of the
Lease; the second sentence of Section 24.2 of the Lease; and the second
sentence of Section 27.1 of the Lease. The phrase “Building II” in the last
line of Section 15.2 of the Lease is deleted and replaced by the phrase “the
Building”.

     32.     Default. The first sentence of Section 22.1 of the Lease is hereby
modified by deleting “(i) Tenant fails to pay Rent within five (5) business
days after written notice from Landlord, provided that no such notice shall be
required if at least two (2) such notices shall have been given during the same
Lease Year;” and replacing the deleted language with the following language:
“Tenant fails to pay Rent within ten (10) days after written notice from
Landlord, provided that no such notice shall be required if at least two (2)
such notices shall have been given during the same Lease Year, in which event
an Event of Default shall automatically occur if Tenant fails to pay Rent
within ten (10) days following the day upon which Rent was due;”.

     33.     Landlord’s Remedies. Section 22.2 of the Lease is deleted in its
entirety and replaced with the following language:

	 	 	“22.2 Landlord’s Remedies. Upon the occurrence of an Event of
Default, Landlord may, at its option, without further notice or
demand to Tenant, in addition to all other rights and remedies
provided in this Lease or at law or in equity:

12

 

	 	 	(i) Terminate this Lease and Tenant’s right of possession of the
Premises and recover all damages to which Landlord is entitled
under law, specifically including, without limitation, (a) an
amount equal to all Rent that would have been payable over the
remaining balance of the Term had this Lease not been terminated,
as and when such Rent would have come due, less (b) the net
amounts actually received by Landlord from any reletting of the
Premises during such period after deducting all of Landlord’s
actual expenses of reletting (including, without limitation,
rental concessions to new tenants, repairs, Alterations,
reasonable legal fees, and, to the extent applicable to the
portion of the relet term which coincides with the Term of this
Lease which would have remained had this Lease not been
terminated, brokerage commissions). Landlord shall have the same
rights in regard to reletting the Premises and filing suit for
damages due from Tenant as are provided in Section 22.2(ii). If
Landlord elects to terminate this Lease, then, in addition to the
damages referred to above, Tenant shall remain liable for payment
of Rent and performance of all other terms and conditions of this
Lease to the date of termination;
	 
	 	 	(ii) Terminate Tenant’s right of possession of the Premises
without terminating this Lease, in which event Landlord may, but
shall not be obligated to, relet the Premises, or any part
thereof, for the account of Tenant, for such rent and term and
upon such other conditions as are acceptable to Landlord, in its
sole and absolute discretion. For purposes of such reletting,
Landlord is authorized to redecorate, repair, alter and improve
the Premises to the extent Landlord, in its sole discretion, deems
necessary. Until Landlord relets the Premises, Tenant shall
remain obligated to pay Rent to Landlord as provided in this
Lease. If and when the Premises are relet, if the net sum
realized from such reletting, after deducting all of Landlord’s
actual expenses of reletting (including, without limitation,
rental concessions to new tenants, repairs, Alterations,
reasonable legal fees and as limited above, brokerage
commissions), is not sufficient to satisfy the payment of Rent due
under this Lease for any month, Tenant shall pay Landlord any such
deficiency upon demand. Tenant agrees that Landlord may file suit
to recover any sums due Landlord under this Section from time to
time and that such suit or recovery of any amount due Landlord
shall not be any defense to any subsequent action brought for any
amount not previously reduced to judgment in favor of Landlord.
	 
	 	 	(iii) Notwithstanding the foregoing, Landlord agrees to use
commercially reasonable efforts to relet the Premises following a
termination of Tenant’s right of possession or termination of this
Lease. Landlord shall be deemed to have satisfied this obligation
if it lists the Premises for reletting with a reputable commercial
leasing broker and thereafter maintains such listing until the
space is leased.
	 
	 	 	(iv) Terminate this Lease and Tenant’s right of possession of the
Premises, and recover from Tenant the net present value of the
difference, if any between (a) the Rent due from the date of
termination until the Expiration Date less (b) the then fair
rental value of the Premises, such difference, if any, to be
discounted at six percent (6%) per annum; or
	 
	 	 	(v) In connection with the exercise of its rights under
subsections (i), (ii), and (iv) above, re-enter and repossess the
Premises and remove all persons and effects therefrom, by summary
proceeding, ejectment or other legal action. Landlord shall have
no liability by reason of any such re-entry, repossession or
removal except for liability for bodily injury resulting solely
and directly from Landlord’s gross negligence or willful
misconduct.”

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     34.     Lobby Furniture. Notwithstanding anything contained in the Lease to
the contrary, Tenant shall be permitted to place furniture in the entrance
lobby of the Building (the “Lobby”) for the purpose of providing waiting-area
seating for Tenant’s guests and visitors and for the guests and visitors of
other tenants in the Building. All furniture placed in the Lobby shall be
subject to Landlord’s prior written approval. Tenant shall not permit its
employees to use the Lobby for meetings or as a lounging area. Notwithstanding
any approval granted by Landlord, at any time following the six (6)-month
anniversary of the Additional Space Commencement Date, Landlord, in its sole
discretion exercised in good faith, may require all furniture that has been
place in the Lobby to be removed. Tenant shall be responsible, at its sole
cost, for the cost of procuring, installing, maintaining and removing all such
furniture and shall also be responsible for the cost of repairing all damage to
such Lobby and the Building resulting from placing furniture therein.

     35.     Rules and Regulations.

     (a)  Notwithstanding anything in the Lease to the contrary, including,
without limitation, Article 20 thereof, in no event shall any Rules and
Regulations promulgated by Landlord materially interfere with Tenant’s use and
enjoyment of the Premises or its exercise of its rights under the Lease, or
materially increase any obligation of Tenant pursuant to the Lease.

     (b)  Notwithstanding anything in the Lease to the contrary, including,
without limitation, any Rules and Regulations promulgated thereunder, Tenant
shall have the right to place vending machines in the Premises without
Landlord’s consent.

     36.     No Tenant Default Landlord hereby represents that it has no knowledge
of any uncured default by Tenant of its obligations under the Lease or of the
occurrence of any event which, with the passage of time or the giving of notice
hereunder, would constitute an Event of Default by Tenant under the Lease.

     37.     Authority. Landlord and Tenant each represents and warrants to the
other that the person(s) signing this Amendment on its behalf have the
requisite authority and power to execute this Amendment and to thereby bind the
party on whose behalf it is being signed.

     38.     Counterparts. This Amendment may be executed in a number of identical
counterparts which, taken together, shall constitute collectively one (1)
agreement; but in making proof of this Amendment, it shall not be necessary to
produce or account for more than one such counterpart.

     39.     Ratification; Inconsistencies. Except as expressly provided for by
this Amendment, all terms, conditions and provisions of the Lease shall remain
in full force and effect and unmodified. To the extent of an inconsistency
between the terms and conditions of the Lease and the terms and conditions of
this Amendment, the terms and conditions of this Amendment shall govern and any
language of, or provision in, the Lease not referred to in this Amendment which
is inconsistent or is in conflict with this Amendment shall be deemed
appropriately amended or modified.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the Landlord and Tenant have executed this Amendment
as of the date and year first set forth above.

	 	 	 
	WITNESS/ATTEST:	 	
LANDLORD:
	 	 	 
	 	 	
OXBRIDGE DEVELOPMENT AT CROWN

POINTE II, L.C.,
	 	 	
a Maryland limited liability company
	 	 	 
	 /s/ Peregrine Roberts	 	
By: /s/ Elliot Totah
	

        Peregrine Roberts	 	

	 	 	
Name: Elliot Totah
	 	 	
Title: Authorized Member
	 	 	 Date: October 13,
        2003
	 	 	 
	 	 	
TENANT:
	 	 	 
	 	 	
THERIMMUNE RESEARCH CORPORATION,

a Delaware corporation
	 	 	 
	/s/ F. Duldey Staples, Jr.	 	
By: /s/ Philip L. Rohrer, Jr.
	

        F. Dudley Staples, Jr.	 	

	 	 	
Name: Philip L. Rohrer, Jr.
	 	 	
Title: Chief Financial Officer
	 	 	
Date: October 17, 2003

CONSENT OF GUARANTOR

     The undersigned guarantor of Tenant’s obligations under the Lease pursuant
to that certain Guaranty of Lease dated April 1, 2003, hereby consents to the
foregoing Third Amendment.

	 	 	 
	 	 	
GENE LOGIC, INC., a Delaware
corporation
	 	 	 
	 	 	
By: /s/ Philip L. Rohrer, Jr.
	 	 	

	 	 	
Name: Philip L. Rohrer, Jr.
	 	 	
Title: Chief Financial Officer
	 	 	
Date: October 17, 2003

15

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